National Penn Bancshares, Inc. Reports Fourth Quarter and Full Year 2009 Financial Results
Scott V. Fainor Appointed President & CEO and Director; Reports Fourth Quarter Core Loss of $0.04 Per Share After Increase in Loan Loss Reserve; One-time Non-cash Charge of $275 Million to Strengthen Balance Sheet
BOYERTOWN, Pa., Jan. 28 /PRNewswire-FirstCall/ -- Thomas A. Beaver, Chairman of the Board of National Penn Bancshares, Inc. (Nasdaq: NPBC) announced that Scott V. Fainor has been appointed President & CEO of National Penn and has been elected to the Board of Directors, effective January 27, 2010. Glenn E. Moyer, as a transition to retirement, will continue with National Penn as a special advisor to Mr. Fainor for a period of time.
"The Board and I wish to thank Glenn Moyer for his contributions to National Penn over the past years," said Mr. Beaver. "The strategies that he and his team developed and executed helped make National Penn the respected financial institution that it is today." Mr. Fainor said, "I thank Glenn for his executive leadership, his dedication and involvement in business and the community, and I look forward to his ongoing support in his transition to retirement."
For the fourth quarter 2009, National Penn recorded a loss totaling $283.3 million, representing a loss of $2.25 per common share. The $275 million non-cash goodwill impairment charge resulted in $2.19 of the loss. Exclusive of all non-core items, the fourth quarter core loss was $0.04 per common share. For the full year 2009, National Penn reported a net loss of $356.4 million. After payment of dividends on preferred stock issued to the U.S. Treasury under its Capital Purchase Program, this represents a loss of $3.61 per common share, compared to net income of $31.9 million, or $0.42 per diluted common share, for the year 2008.
Mr. Fainor commented that National Penn's strong capital levels allowed it to take the following proactive steps to strengthen the balance sheet:
- A non-cash goodwill impairment charge of $275.0 million. While this charge affected short-term earnings, it has no impact on National Penn's regulatory capital ratios or tangible book value. Based upon its periodic testing, National Penn took this action as a result of several factors, including continued trading value of its stock relative to book value and certain events in the quarter more fully described in this release. This charge is not directly attributed to any specific National Penn acquisition.
- A provision for loan losses of $47.0 million, which resulted in an overall increase in the allowance for loan and lease losses to $146.3 million, representing 2.43% of total loans and 116.29% of non-performing loans.
- The sale of a portfolio of underperforming shared national credit loans, which resulted in a pre-tax loss of $6.0 million ($3.9 million after tax). National Penn has improved its overall credit quality through the divestiture of $47.4 million of lower quality assets as part of the $63.8 million of loan commitments sold.
In regard to National Penn's performance, Mr. Fainor commented, "With the support of our Board of Directors, we are focused on shareholder value. The actions we took in 2009 had a negative impact on short-term profitability, but have significantly strengthened our balance sheet and positioned National Penn for improved results in 2010 and beyond." He noted that National Penn remains in a strong capital position following the $225 million in common equity raised in 2009.
The net interest margin, as reclassified, increased during the fourth quarter 2009 to 3.29% from 3.24% in the third quarter 2009. Fee income categories continued to perform well, and expenses remained well controlled, aside from significant increases in FDIC insurance premiums.
Considering the conversion of certain business money market deposits to cash management accounts, deposit growth was higher for the full year 2009 by 7.7%. Our deposit market share in Pennsylvania improved to 9th rank versus 11th rank in 2008. Additionally, National Penn improved to rank 1st in Berks and Centre counties, and maintained the 1st and 2nd ranks in Northampton and Lehigh counties, respectively. This performance continues to reflect management's execution of its funding strategies and customer confidence in the overall strength of National Penn.
For the full year 2009, National Penn was an active lender, originating loans to new and existing customers in excess of $1.0 billion. However, total loans outstanding declined from year end 2008 by 4.6% due to repayments of loans from existing borrowers, sales of mortgage production in the secondary market, lower levels of loan demand, and loan charge-offs. National Penn has a strong cross-sell culture between its banking subsidiaries, wealth affiliates, and insurance affiliates which is expected to accelerate growth in fee income, loans, and deposits.
National Penn's Board of Directors approved a first quarter cash dividend of one cent per share, payable on February 17, 2010 to shareholders of record on February 6, 2010. This compares to one cent per share paid in the fourth quarter 2009.
On January 27, 2010, National Penn Bank entered into a memorandum of understanding with its primary regulator principally due to its current level of classified assets. Under this informal agreement, National Penn Bank has agreed to develop and implement initiatives to enhance the oversight of problem assets, enhance its process for the allowance for loan and lease losses, and strengthen its internal loan review and credit administration functions. Many of these initiatives are in various stages of completion. Additionally, National Penn Bank has agreed to achieve (by March 31, 2010) and maintain a Tier 1 leverage ratio of at least 8.0%, and to maintain a Tier 1 risk-based capital ratio of at least 10.0% and a total risk-based capital ratio of at least 12.0%. At December 31, 2009, National Penn Bank's capital ratios were 7.86%, 11.21% and 12.47% respectively.
"National Penn's board and senior management remain committed to taking proactive steps to address the challenges that National Penn, like others in our industry, continue to face," Mr. Fainor commented. He noted that National Penn has a focused effort to enhance the strength of its balance sheet, as illustrated by the disposal of its entire CDO portfolio, the strengthening of its loan and lease loss reserve during the year, and the raising of $225 million in common equity. Additionally, over the past several months, National Penn has developed an enterprise-wide "self-improvement plan" that is intended to define, guide, coordinate and oversee the execution of strategies to improve the financial strength of the company. Through these initiatives, National Penn has already begun taking the steps to provide the financial strength necessary for its future success and growth.
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with $9.5 billion in assets, is the fourth largest bank holding company based in Pennsylvania. In addition, wealth assets under administration or management amount to $9.0 billion.
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 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.
Statement Regarding Non-GAAP Financial Measures:
This 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 these non-GAAP measures in its analysis of National Penn's performance. One such measure, annualized 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. The other such measure, core net income (or core earnings), excludes the effects of non-cash, after-tax unrealized gains and losses. Management believes the presentation of these financial measures excluding the impact of the specified items provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn. In the case of annualized return on average tangible equity, it provides a method to assess management's success in utilizing the company's tangible capital. In the case of core net income (or core earnings), it provides a method to assess earnings performance, which excludes discretionary and/or infrequently occurring items. 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.
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.
National Penn's business and operations 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, continued deterioration in the credit quality of certain 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, 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 fiscal year ended December 31, 2008, 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.
National Penn Bancshares, Inc. Exchange Listing Nasdaq "NPBC" Financial Highlights (unaudited) (Dollars in thousands, except per share data) Three Months Ended December 31, 2009 2008 % Change ----------------------- ---- ---- -------- STATEMENTS OF CONDITION ----------------------- Total assets Investment securites Loans and leases Deposits Short-term borrowings Long-term borrowings Shareholders' equity Book value per share Common Book value per share --------------------------- EARNINGS -------- -------- -------- ------ Total interest income $103,948 $115,613 -10.09% Total interest expense 36,503 52,515 -30.49% ---------------------- ------ ------ ------ Net interest income $67,445 63,098 6.89% Provision for loan and lease losses 47,000 18,500 154.05% ---------------------------- ------ ------ ------ Net interest income after provision for loan and lease losses $20,445 44,598 -54.16% Other income 26,247 (46,204) -156.81% Other expenses 337,119 59,704 464.65% -------------- ------- ------ ------ Income (loss) before income taxes ($290,427) (61,310) 373.70% Income taxes (9,227) (25,546) -63.88% Net income (loss) (281,200) (35,764) 686.26% ----------------- -------- ------- ------ Preferred dividends/accretion of preferred discount (2,095) (417) 402.40% Net income (loss) available to common shareholders ($283,295) ($36,181) 682.99% ============================== ========= ======== ====== ------------------ PERFORMANCE RATIOS ------------------ ---- ---- --------- Net yield on earning assets 3.29% 3.33% -0.95% Return on average assets -11.41% -1.53% 646.97% Return on average total shareholders' equity -82.16% -13.20% 522.40% Return on average total tangible equity (1) -144.25% -28.83% 400.37% --------- PER SHARE --------- ------ ------ ------ Basic earnings available to common shareholders $(2.25) ($0.45) 400.84% Diluted earnings available to common shareholders (2.25) (0.45) 400.84% Dividends per common share 0.01 0.17 -94.12% Average shares - basic 125,697,822 79,341,618 58.43% Average shares - diluted 125,697,822 79,341,618 58.43% ------------------------ ----------- ---------- ----- ------------------------------- (1) Reconciliation Tables for Non-GAAP Financial Measures Return on average shareholders' equity -82.16% -13.20% Effect of goodwill and intangibles -62.08% -15.62% ------ ------ Return on average tangible equity -144.25% -28.82% ======= ====== Average tangible equity excludes acquisition related average goodwill and intangibles: Average shareholders' equity $1,357,801 $1,077,773 Average goodwill and intangibles (584,375) (584,221) -------- -------- Average total tangible equity $773,426 $493,552 ======== ======== Net Income available to common shareholders $(283,295) $(36,181) After tax goodwill impairment charge 275,000 - After tax other than temporary impairment charge on investments 1,407 51,672 After tax (gain) loss on investment securities (188) (8) After tax unrealized fair market value (gain) loss on NPB Capital Trust II Preferred Securities (2,385) (4,243) After tax fraud loss - 2,925 After tax insurance proceeds - - After tax FDIC special assessment - - After tax (gain) loss on sale of wealth unit (797) - After tax (gain) loss on sale of SNC loans 3,921 - After tax SERP accrual 1,300 - ----- -- Core net income (loss) available to common shareholders $(5,037) $14,165 ======= ======= Earnings per share $(2.25) $(0.45) After tax goodwill impairment charge 2.19 - After tax other than temporary impairment charge on investments 0.01 0.65 After tax (gain) loss on investment securities - - After tax unrealized fair market value (gain) loss on NPB Capital Trust II Preferred Securities (0.02) (0.05) After tax fraud loss - 0.04 After tax insurance proceeds - - After tax FDIC special assessment - - After tax (gain) loss on sale of wealth unit (0.01) - After tax (gain) loss on sale of SNC loans 0.03 - After tax SERP accrual 0.01 - ---- -- Core net income (loss) available to common shareholders $(0.04) $0.18 ====== ===== Twelve Months Ended December 31, 2009 2008 % Change ----------------------- ---- ---- -------- STATEMENTS OF CONDITION ----------------------- ---------- ---------- ---- Total assets $9,483,910 $9,403,431 0.86% Investment securites 2,180,541 $1,919,889 13.58% Loans and leases 6,024,501 6,315,874 -4.61% Deposits 6,738,852 6,389,886 5.46% Short-term borrowings 744,223 651,307 14.27% Long-term borrowings 889,211 1,083,963 -17.97% Shareholders' equity 1,069,468 1,179,995 -9.37% Book value per share 8.51 14.62 -41.80% Common Book value per share 7.33 12.83 -42.87% --------------------------- ---- ----- ------ EARNINGS -------- -------- -------- ----- Total interest income $421,143 $466,236 -9.67% Total interest expense 168,634 213,498 -21.01% ---------------------- ------- ------- ------ Net interest income $252,509 252,738 -0.09% Provision for loan and lease losses 154,025 32,497 373.97% ---------------------------- ------- ------ ------ Net interest income after provision for loan and lease losses $98,484 220,241 -55.28% Other income (1,520) 22,758 -106.68% Other expenses 508,616 216,531 134.89% -------------- ------- ------- ------ Income (loss) before income taxes (411,652) 26,468 -1655.28% Income taxes (63,613) (5,803) 996.24% Net income (loss) (348,039) 32,271 -1178.49% ----------------- -------- ------ -------- Preferred dividends/accretion of preferred discount (8,340) (417) 1900.00% Net income (loss) available to common shareholders ($356,379) $31,854 -1218.79% ============================== ========= ======= ======== ------------------ PERFORMANCE RATIOS ------------------ ---- ---- ----- Net yield on earning assets 3.18% 3.47% -8.41% Return on average assets -3.59% 0.36% -1088.11% Return on average total shareholders' equity -27.92% 3.28% -950.15% Return on average total tangible equity (1) -52.94% 7.51% -804.64% --------- PER SHARE --------- ------ ----- ------- Basic earnings available to common shareholders $(3.61) $0.42 -962.54% Diluted earnings available to common shareholders (3.61) 0.42 -968.83% Dividends per common share 0.28 0.68 -59.00% Average shares - basic 98,818,526 76,185,375 29.71% Average shares - diluted 98,818,526 76,740,859 28.77% ------------------------ ---------- ---------- ----- ------------------------------- (1) Reconciliation Tables for Non-GAAP Financial Measures Return on average shareholders' equity -27.92% 3.28% Effect of goodwill and intangibles -25.02% 4.23% ------ ---- Return on average tangible equity -52.94% 7.51% ====== ==== Average tangible equity excludes acquisition related average goodwill and intangibles: Average shareholders' equity $1,246,537 $982,619 Average goodwill and intangibles (589,133) (553,098) -------- -------- Average total tangible equity $657,405 $429,521 ======== ======== Net Income available to common shareholders $(356,379) $31,854 After tax goodwill impairment charge 275,000 - After tax other than temporary impairment charge on investments 66,164 64,672 After tax (gain) loss on investment securities 1,858 (437) After tax unrealized fair market value (gain) loss on NPB Capital Trust II Preferred Securities 2,878 (7,811) After tax fraud loss - 2,925 After tax insurance proceeds (2,618) - After tax FDIC special assessment 3,006 - After tax (gain) loss on sale of wealth unit (797) - After tax (gain) loss on sale of SNC loans 3,921 - After tax SERP accrual 1,300 - ----- -- Core net income (loss) available to common shareholders $(5,667) $91,203 ======= ======= Earnings per share $(3.61) $0.42 After tax goodwill impairment charge 2.78 - After tax other than temporary impairment charge on investments 0.67 0.84 After tax (gain) loss on investment securities 0.02 (0.01) After tax unrealized fair market value (gain) loss on NPB Capital Trust II Preferred Securities 0.03 (0.10) After tax fraud loss - 0.04 After tax insurance proceeds (0.03) - After tax FDIC special assessment 0.03 - After tax (gain) loss on sale of wealth unit (0.01) - After tax (gain) loss on sale of SNC loans 0.04 - After tax SERP accrual 0.01 - ---- -- Core net income (loss) available to common shareholders $(0.06) $1.19 ====== =====
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09 PAGE: 1 OF 5 AS OF AS OF AS OF BALANCE SHEET - ASSETS ($000s) 12/31/2009 9/30/2009 6/30/2009 (unaudited) (unaudited) (unaudited) Cash & Cash Equivalents $603,257 $400,191 $348,371 -------- -------- -------- Held to Maturity Securities 601,923 612,214 653,184 ------- ------- ------- Securities Available for Sale 1,578,618 1,636,023 1,504,155 --------- --------- --------- Total Securities 2,180,541 2,248,237 2,157,339 --------- --------- --------- Total Cash and Securities 2,783,798 2,648,428 2,505,710 --------- --------- --------- Loans & Leases Held for Sale 18,028 9,279 23,326 ------ ----- ------ Loans & Leases Held for Investment 6,006,473 6,190,405 6,283,523 --------- --------- --------- Total Loans and Leases 6,024,501 6,199,684 6,306,849 --------- --------- --------- Loan and Lease Loss Reserve (146,271) (125,490) (98,313) -------- -------- ------- Premises and Equipment, net 112,744 113,712 114,635 ------- ------- ------- Premises Held for Sale 812 812 812 --- --- --- Bank Owned Life Insurance 198,131 197,132 196,001 ------- ------- ------- Goodwill 281,624 555,789 555,964 ------- ------- ------- Other Intangibles 30,943 32,854 33,654 ------ ------ ------ Total Intangible Assets 312,567 588,643 589,618 ------- ------- ------- Unconsolidated Investments Under the Equity Method 12,821 11,718 13,279 ------ ------ ------ Other Real Estate Owned and Repossessed Assets 4,208 826 1,359 ----- --- ----- Other Assets 180,599 104,845 127,963 ------- ------- ------- Total Assets $9,483,910 $9,740,310 $9,757,913 ========== ========== ========== BALANCE SHEET - LIABILITIES ($000s) Interest-bearing Deposits $5,985,202 $6,080,203 $6,070,056 ---------- ---------- ---------- Noninterest-bearing Deposits 753,650 718,459 741,598 ------- ------- ------- Borrowings 1,501,027 1,414,817 1,525,578 --------- --------- --------- Subordinated Debt (Trust Preferred Securities) 132,407 136,076 129,827 ------- ------- ------- Other Liabilities 42,156 30,649 74,231 ------ ------ ------ Total Liabilities $8,414,442 $8,380,204 $8,541,290 ========== ========== ========== BALANCE SHEET - EQUITY ($000s) Preferred Stock $147,920 $144,738 $144,517 -------- -------- -------- Common Stock 1,225,636 1,227,032 1,072,921 --------- --------- --------- Retained (Deficit) Earnings (302,121) (16,908) 52,143 -------- ------- ------ Accumulated Other Comprehensive income (loss) (1,967) 5,244 (52,958) ------ ----- ------- Treasury Stock - - - -- -- -- Total Shareholders Equity $1,069,468 $1,360,106 $1,216,623 ========== ========== ========== MEMO ITEMS Held to Maturity Securities (Fair Value) $603,915 $635,398 $618,282 -------- -------- -------- Common Book Value Per Share $7.33 $9.67 $11.23 ----- ----- ------ Total Book Value Per Share $8.51 $10.82 $12.74 ----- ------ ------ Tangible Common Book Value Per Share $4.84 $4.99 $5.05 ----- ----- ----- Tangible Total Book Value Per Share $6.02 $6.14 $6.57 ----- ----- ----- EOP Common Shares Outstanding (excluding Treasury shares) 125,713,668 125,658,738 95,507,091 ----------- ----------- ---------- Treasury Shares Held By Company - - - -- -- -- Common Stock Dividends (total $ in period) $1,257 $4,085 $4,199 ------ ------ ------ Dividends per Common Share $0.0100 $0.0500 $0.0500 ------- ------- ------- Number of Shares to be Repurchased in Plans - - - -- -- -- Number of Shares Repurchased During Period - - - -- -- -- Average Price of Repurchased Shares $- $- $- -- -- -- PAGE: 1 OF 5 AS OF AS OF BALANCE SHEET - ASSETS ($000s) 3/31/2009 12/31/2008 (unaudited) (unaudited) Cash & Cash Equivalents $389,024 $195,830 -------- -------- Held to Maturity Securities 299,645 326,090 ------- ------- Securities Available for Sale 1,614,393 1,593,799 --------- --------- Total Securities 1,914,038 1,919,889 --------- --------- Total Cash and Securities 2,303,062 2,115,719 --------- --------- Loans & Leases Held for Sale 17,806 3,605 ------ ----- Loans & Leases Held for Investment 6,347,246 6,312,269 --------- --------- Total Loans and Leases 6,365,052 6,315,874 --------- --------- Loan and Lease Loss Reserve (86,273) (84,006) ------- ------- Premises and Equipment, net 116,885 119,924 ------- ------- Premises Held for Sale 812 3,768 --- ----- Bank Owned Life Insurance 194,883 193,811 ------- ------- Goodwill 556,031 558,252 ------- ------- Other Intangibles 35,557 37,496 ------ ------ Total Intangible Assets 591,588 595,748 ------- ------- Unconsolidated Investments Under the Equity Method 12,966 11,874 ------ ------ Other Real Estate Owned and Repossessed Assets 1,862 1,552 ----- ----- Other Assets 132,205 129,167 ------- ------- Total Assets $9,633,042 $9,403,431 ========== ========== BALANCE SHEET - LIABILITIES ($000s) Interest-bearing Deposits $5,929,420 $5,596,617 ---------- ---------- Noninterest-bearing Deposits 730,814 793,269 ------- ------- Borrowings 1,584,684 1,607,290 --------- --------- Subordinated Debt (Trust Preferred Securities) 129,877 127,980 ------- ------- Other Liabilities 82,145 98,280 ------ ------ Total Liabilities $8,456,940 $8,223,436 ========== ========== BALANCE SHEET - EQUITY ($000s) Preferred Stock $144,297 $144,076 -------- -------- Common Stock 1,019,548 1,003,110 --------- --------- Retained (Deficit) Earnings 65,765 65,194 ------ ------ Accumulated Other Comprehensive income (loss) (53,508) (32,385) ------- ------- Treasury Stock - - -- -- Total Shareholders Equity $1,176,102 $1,179,995 ========== ========== MEMO ITEMS Held to Maturity Securities (Fair Value) $271,423 $284,608 -------- -------- Common Book Value Per Share $12.43 $12.83 ------ ------ Total Book Value Per Share $14.17 $14.62 ------ ------ Tangible Common Book Value Per Share $5.30 $5.45 ----- ----- Tangible Total Book Value Per Share $7.04 $7.24 ----- ----- EOP Common Shares Outstanding (excluding Treasury shares) 83,005,701 80,731,751 ---------- ---------- Treasury Shares Held By Company - - -- -- Common Stock Dividends (total $ in period) $13,800 $13,805 ------- ------- Dividends per Common Share $0.1700 $0.1725 ------- ------- Number of Shares to be Repurchased in Plans - - -- -- Number of Shares Repurchased During Period - - -- -- Average Price of Repurchased Shares $- $- -- --
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09 PAGE: 2 OF 5 FOR FOR FOR FOR QUARTER QUARTER QUARTER QUARTER ENDED ENDED ENDED ENDED INCOME STATEMENT ($000s) 12/31/2009 9/30/2009 6/30/2009 3/31/2009 (unaudited) (unaudited) (unaudited) (unaudited) Interest Income $103,948 $105,385 $105,848 $105,962 -------- -------- -------- -------- Interest Expense 36,503 40,042 44,768 47,321 ------ ------ ------ ------ Net Interest Income 67,445 65,343 61,080 58,641 ------ ------ ------ ------ Provision for Loan and Lease Losses 47,000 52,000 37,500 17,525 ------ ------ ------ ------ Net Interest Income after Provision for Loan and Lease Losses 20,445 13,343 23,580 41,116 ------ ------ ------ ------ Wealth Management Income 7,406 7,670 7,232 6,615 ----- ----- ----- ----- Service Charges on Deposits 6,141 6,247 6,071 5,800 ----- ----- ----- ----- Cash Management and Electronic Banking Fees 4,237 4,041 3,995 3,648 ----- ----- ----- ----- Mortgage Banking Income 1,337 1,884 2,834 2,420 ----- ----- ----- ----- Insurance Commissions and Fees 3,970 3,771 4,016 3,957 ----- ----- ----- ----- Bank Owned Life Insurance Income 1,441 1,131 1,275 1,072 ----- ----- ----- ----- Equity in Unconsolidated Investments 1,706 (525) 314 1,091 ----- ---- --- ----- Net gains (losses) from Fair Value changes 3,669 (6,249) 51 (1,898) ----- ------ -- ------ Net gains (losses)on Investment Securities 289 (863) - (2,284) --- ---- -- ------ Total Impairment Losses on Investment Securities (2,165) (84,704) (7,136) (7,785) ------ ------- ------ ------ Non Credit- related Impairment on Securities not Expected to be Sold - - - - -- -- -- -- Net Impairment Losses on Investment Securities (2,165) (84,704) (7,136) (7,785) ------ ------- ------ ------ Other Non- Interest Income (1,784) 3,315 2,659 2,568 ------ ----- ----- ----- Total Non- Interest Income (Loss) 26,247 (64,282) 21,311 15,204 ------ ------- ------ ------ Salaries, Wages and Employee Benefits 30,864 30,505 32,249 32,017 ------ ------ ------ ------ Net Premises and Equipment Expense 7,962 8,104 7,335 8,598 ----- ----- ----- ----- Amortization of Intangibles 1,912 1,899 1,903 1,940 ----- ----- ----- ----- Goodwill Impairment 275,000 - - - ------- -- -- -- Other Non- Interest Expense 21,381 15,672 16,540 14,138 ------ ------ ------ ------ FDIC Insurance special assessment - - 4,625 - -- -- ----- -- Fraud Expense (Recovery) - (4,028) - - -- ------ -- -- Total Non- Interest Expense 337,119 52,152 62,652 56,693 ------- ------ ------ ------ Net Income (Loss) Before Taxes (290,427) (103,091) (17,761) (373) -------- -------- ------- ---- Income Tax (Benefit) Expense (9,227) (40,000) (10,213) (4,173) ------ ------- ------- ------ Net Income (Loss) (281,200) (63,091) (7,548) 3,800 -------- ------- ------ ----- Preferred dividends/ accretion of preferred discount (2,095) (2,096) (2,095) (2,054) ------ ------ ------ ------ Net Income (Loss) available to Common Shareholders $(283,295) $(65,187) $(9,643) $1,746 ========= ======== ======= ====== ------- ------- ------- ------- Net Interest Income (FTE) $73,007 $70,972 $66,777 $64,437 ------- ------- ------- ------- EARNINGS PER SHARE: Basic earnings (loss) $(2.24) $(0.63) $(0.09) $0.05 ------ ------ ------ ----- Basic earnings (loss) available to common shareholders $(2.25) $(0.65) $(0.11) $0.02 ------ ------ ------ ----- Diluted earnings (loss) $(2.24) $(0.63) $(0.09) $0.05 ------ ------ ------ ----- Diluted earnings (loss) available to common shareholders $(2.25) $(0.65) $(0.11) $0.02 ------ ------ ------ ----- Average Shares Basic 125,697,822 100,064,355 87,415,723 81,497,806 ----------- ----------- ---------- ---------- Average Shares Diluted 125,697,822 100,064,355 87,415,723 81,891,272 ----------- ----------- ---------- ---------- SUPPLEMENTAL DATA ($000s) Return on Avg. Assets (annualized) -11.41% -2.57% -0.31% 0.16% ------ ----- ----- ---- Return on Avg.Total Equity (annualized) -82.16% -20.01% -2.52% 1.31% ------ ------ ----- ---- Return on Avg. Common Equity (annualized) -91.98% -22.63% -2.87% 1.49% ------ ------ ----- ---- Return on Avg. Total Tangible Equity (annualized) -144.25% -37.82% -4.97% 2.64% ------- ------ ----- ---- Return on Avg. Common Tangible Equity (annualized) -177.50% -48.40% -6.52% 3.51% ------- ------ ----- ---- Reconciliation Table for Non-GAAP Financial Measures Return on average total shareholders' equity -82.16% -20.01% -2.52% 1.31% Effect of goodwill and intangibles -62.08% -17.81% -2.45% 1.33% ------ ------ ----- ---- Return on average total tangible equity -144.25% -37.82% -4.97% 2.64% Average total tangible equity excludes acquisition related average goodwill and intangibles: Average total shareholders' equity $1,357,801 $1,250,619 $1,199,198 $1,176,494 Average goodwill and intangibles (584,375) (588,842) (590,593) (592,816) -------- -------- -------- -------- Average total tangible equity $773,426 $661,777 $608,605 $583,678 -------- -------- -------- -------- Return on average common shareholders' equity -91.98% -22.63% -2.87% 1.49% Effect of goodwill and intangibles -85.52% -25.77% -3.65% 2.02% ------ ------ ----- ---- Return on average common tangible equity -177.50% -48.40% -6.52% 3.51% Average common tangible equity excludes acquisition related average goodwill and intangibles: Average common shareholders' equity $1,212,916 $1,105,988 $1,054,790 $1,031,883 Average goodwill and intangibles (584,375) (588,842) (590,593) (592,816) -------- -------- -------- -------- Average common tangible equity $628,541 $517,146 $464,197 $439,067 -------- -------- -------- -------- FOR QUARTER YEAR YEAR ENDED TO DATE TO DATE INCOME STATEMENT ($000s) 12/31/2008 12/30/2009 12/30/2008 (unaudited) (unaudited) (unaudited) Interest Income $115,613 $421,143 $466,236 -------- -------- -------- Interest Expense 52,515 168,634 213,498 ------ ------- ------- Net Interest Income 63,098 252,509 252,738 ------ ------- ------- Provision for Loan and Lease Losses 18,500 154,025 32,497 ------ ------- ------ Net Interest Income after Provision for Loan and Lease Losses 44,598 98,484 220,241 ------ ------ ------- Wealth Management Income 7,543 28,923 31,905 ----- ------ ------ Service Charges on Deposits 6,685 24,259 25,150 ----- ------ ------ Cash Management and Electronic Banking Fees 3,826 15,921 14,386 ----- ------ ------ Mortgage Banking Income 856 8,475 3,307 --- ----- ----- Insurance Commissions and Fees 3,691 15,714 15,378 ----- ------ ------ Bank Owned Life Insurance Income 1,217 4,919 6,341 ----- ----- ----- Equity in Unconsolidated Investments 1,550 2,586 4,546 ----- ----- ----- Net gains (losses) from Fair Value changes 6,527 (4,427) 12,017 ----- ------ ------ Net gains (losses)on Investment Securities 12 (2,858) 672 -- ------ --- Total Impairment Losses on Investment Securities n/a (101,790) - ------- -------- -- Non Credit- related Impairment on Securities not Expected to be Sold n/a - - ------- -- -- Net Impairment Losses on Investment Securities (79,496) (101,790) (99,496) ------- -------- ------- Other Non- Interest Income 1,385 6,758 8,552 ----- ----- ----- Total Non- Interest Income (Loss) (46,204) (1,520) 22,758 ------- ------ ------ Salaries, Wages and Employee Benefits 30,807 125,635 123,332 ------ ------- ------- Net Premises and Equipment Expense 7,108 31,999 32,550 ----- ------ ------ Amortization of Intangibles 1,996 7,654 7,523 ----- ----- ----- Goodwill Impairment - 275,000 - -- ------- -- Other Non- Interest Expense 15,293 67,731 48,626 ------ ------ ------ FDIC Insurance special assessment - 4,625 - -- ----- -- Fraud Expense (Recovery) 4,500 (4,028) 4,500 ----- ------ ----- Total Non- Interest Expense 59,704 508,616 216,531 ------ ------- ------- Net Income (Loss) Before Taxes (61,310) (411,652) 26,468 ------- -------- ------ Income Tax (Benefit) Expense (25,546) (63,613) (5,803) ------- ------- ------ Net Income (Loss) (35,764) (348,039) 32,271 ------- -------- ------ Preferred dividends/ accretion of preferred discount (417) (8,340) (417) ---- ------ ---- Net Income (Loss) available to Common Shareholders $(36,181) $(356,379) $31,854 ======== ========= ======= ------- -------- -------- Net Interest Income (FTE) $68,952 $275,192 $273,659 ------- -------- -------- EARNINGS PER SHARE: Basic earnings (loss) $(0.45) $(3.52) $0.42 ------ ------ ----- Basic earnings (loss) available to common shareholders $(0.45) $(3.61) $0.42 ------ ------ ----- Diluted earnings (loss) $(0.45) $(3.52) $0.42 ------ ------ ----- Diluted earnings (loss) available to common shareholders $(0.45) $(3.61) $0.42 ------ ------ ----- Average Shares Basic 79,341,618 98,818,526 76,185,375 ---------- ---------- ---------- Average Shares Diluted 79,341,618 98,818,526 76,740,859 ---------- ---------- ---------- SUPPLEMENTAL DATA ($000s) Return on Avg. Assets (annualized) -1.53% -3.59% 0.36% ----- ----- ---- Return on Avg.Total Equity (annualized) -13.20% -27.92% 3.28% ------ ------ ---- Return on Avg. Common Equity (annualized) -13.61% -31.59% 3.31% ------ ------ ---- Return on Avg. Total Tangible Equity (annualized) -28.83% -52.94% 7.51% ------ ------ ---- Return on Avg. Common Tangible Equity (annualized) -30.86% -67.87% 7.66% ------ ------ ---- Return on average total shareholders' equity -13.20% -27.92% 3.28% Effect of goodwill and intangibles -15.62% -25.02% 4.23% ------ ------ ---- Return on average total tangible equity -28.83% -52.94% 7.51% Average total tangible equity excludes acquisition related average goodwill and intangibles: Average total shareholders' equity $1,077,773 $1,246,537 $982,619 Average goodwill and intangibles (584,221) (589,133) (553,098) -------- -------- -------- Average total tangible equity $493,552 $657,405 $429,521 -------- -------- -------- Return on average common shareholders' equity -13.61% -31.59% 3.31% Effect of goodwill and intangibles -17.25% -36.29% 4.35% ------ ------ ---- Return on average common tangible equity -30.86% -67.87% 7.66% Average common tangible equity excludes acquisition related average goodwill and intangibles: Average common shareholders' equity $1,045,212 $1,101,903 $974,435 Average goodwill and intangibles (584,221) (589,133) (553,098) -------- -------- -------- Average common tangible equity $460,991 $512,770 $421,337 -------- -------- --------
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09 PAGE: 3 of 5 FOR QUARTER FOR QUARTER FOR QUARTER FOR QUARTER ENDED ENDED ENDED ENDED CHARGEOFFS ($000s) 12/31/2009 9/30/2009 6/30/2009 3/31/2009 (unaudited) (unaudited) (unaudited) (unaudited) Loan Chargeoffs $28,524 $29,202 $27,759 $16,044 ------- ------- ------- ------- Recoveries on Loans (2,305) (4,379) (2,299) (786) ------ ------ ------ ---- Net Loan Chargeoffs $26,219 $24,823 $25,460 $15,258 ------- ------- ------- ------- Net Loan Chargeoffs to Average Loans (non- annualized) 0.43% 0.40% 0.40% 0.24% ---- ---- ---- ---- NET CHARGE OFF ASSETS-DETAIL Commercial, Financial and Agricultural $(11,529) $(11,819) $(14,791) $(6,597) Real Estate- Permanent (8,522) (2,485) (3,029) 6 Real Estate- Construction (3,493) (7,835) (5,038) (1,234) Leases (38) 19 (274) (88) Residential Mortgages (1,089) (860) (978) (565) Consumer (1,322) (1,688) (1,235) (6,633) Overdraft (226) (155) (115) (147) ---- ---- ---- ---- Net Loans Charged- off $(26,219) $(24,823) $(25,460) $(15,258) ======== ======== ======== ======== AS OF AS OF AS OF AS OF ASSET QUALITY AND OTHER DATA ($000s) 12/31/2009 9/30/2009 6/30/2009 3/31/2009 (unaudited) (unaudited) (unaudited) (unaudited) Nonaccrual Loans $122,516 $116,418 $119,615 $59,871 -------- -------- -------- ------- Renegotiated Loans 576 589 603 614 --- --- --- --- Loans 90+ Days Past Due & Still Accruing 2,694 3,113 2,763 2,659 ----- ----- ----- ----- Total Non- performing Loans $125,786 $120,120 $122,981 $63,144 -------- -------- -------- ------- Other Real Estate Owned & Repossessed Assets 4,208 826 1,359 1,862 ----- --- ----- ----- Total Non- performing Assets $129,994 $120,946 $124,340 $65,006 -------- -------- -------- ------- Allowance for Loan and Lease Losses $146,271 $125,490 $98,313 $86,273 -------- -------- ------- ------- Coverage Ratio 116.3% 104.5% 79.9% 136.6% ----- ----- ---- ----- Classified Loans $501,485 $483,163 $375,842 $263,332 -------- -------- -------- -------- Classified Loans to Total Loans 8.32% 7.79% 5.96% 4.14% ---- ---- ---- ---- NON PERFORMING ASSETS-DETAIL Commercial, Financial and Agricultural $40,618 $42,226 $38,416 $26,479 Real Estate- Permanent 19,277 15,255 10,332 2,327 Real Estate- Construction 46,832 43,497 56,567 18,357 Leases 396 461 445 789 Residential Mortgages 12,800 8,934 7,543 6,155 Consumer 6,842 6,796 7,624 7,402 Loans Past Due 90+Days 2,694 3,113 2,763 2,659 Total Other Repossessed Assets 535 664 650 838 --- --- --- --- Total Non- performing Assets + Loans 90 Days Past Due $129,994 $120,946 $124,340 $65,006 ======== ======== ======== ======= AS OF AS OF AS OF AS OF REGULATORY CAPITAL DATA ($000s) 12/31/2009 9/30/2009 6/30/2009 3/31/2009 (unaudited) (unaudited) (unaudited) (unaudited) Tier 1 Capital $809,218 $827,685 $809,600 $764,426 -------- -------- -------- -------- Tier 1 Ratio (%) 12.65% 12.46% 11.31% 10.44% ----- ----- ----- ----- Total Capital (Tier 1 + Tier 2) $889,968 $911,234 $899,239 $854,019 -------- -------- -------- -------- Total Capital Ratio (%) 13.92% 13.72% 12.56% 11.61% ----- ----- ----- ----- Total Risk- Adjusted Assets $6,394,468 $6,642,041 $7,160,809 $7,324,455 ---------- ---------- ---------- ---------- Tier 1 Leverage Ratio 8.88% 9.00% 8.80% 8.62% ---- ---- ---- ---- Tangible Common Equity to Tangible Assets 6.64% 6.85% 5.26% 4.87% ---- ---- ---- ---- Tangible Equity to Tangible Assets Ratio 8.25% 8.43% 6.84% 6.46% ---- ---- ---- ---- FOR QUARTER YEAR YEAR ENDED TO DATE TO DATE CHARGEOFFS ($000s) 12/31/2008 12/31/2009 12/31/2008 (unaudited) (unaudited) (unaudited) Loan Chargeoffs $18,946 $101,529 $33,552 ------- -------- ------- Recoveries on Loans (756) (9,769) (4,280) ---- ------ ------ Net Loan Chargeoffs $18,190 $91,760 $29,272 ------- ------- ------- Net Loan Chargeoffs to Average Loans (non- annualized) 0.29% 1.46% 0.49% ---- ---- ---- NET CHARGE OFF ASSETS-DETAIL Commercial, Financial and Agricultural $(10,901) Real Estate- Permanent (378) Real Estate- Construction (4,103) Leases - Residential Mortgages (1,534) Consumer (1,048) Overdraft (226) ---- Net Loans Charged- off $(18,190) ======== AS OF ASSET QUALITY AND OTHER DATA ($000s) 12/31/2008 (unaudited) Nonaccrual Loans $31,972 ------- Renegotiated Loans 623 --- Loans 90+ Days Past Due & Still Accruing 2,991 ----- Total Non- performing Loans $35,586 ------- Other Real Estate Owned & Repossessed Assets 1,552 ----- Total Non- performing Assets $37,138 ------- Allowance for Loan and Lease Losses $84,006 ------- Coverage Ratio 236.1% ----- Classified Loans $196,349 -------- Classified Loans to Total Loans 3.11% ---- NON PERFORMING ASSETS-DETAIL Commercial, Financial and Agricultural $11,657 Real Estate- Permanent 1,730 Real Estate- Construction 10,884 Leases 600 Residential Mortgages 3,950 Consumer 4,557 Loans Past Due 90+Days 2,991 Total Other Repossessed Assets 769 --- Total Non- performing Assets + Loans 90 Days Past Due $37,138 ======= AS OF REGULATORY CAPITAL DATA ($000s) 12/31/2008 (unaudited) Tier 1 Capital $741,622 -------- Tier 1 Ratio (%) 10.65% ----- Total Capital (Tier 1 + Tier 2) $825,628 -------- Total Capital Ratio (%) 11.85% ----- Total Risk- Adjusted Assets $6,965,197 ---------- Tier 1 Leverage Ratio 8.50% ---- Tangible Common Equity to Tangible Assets 5.00% ---- Tangible Equity to Tangible Assets Ratio 6.84% ----
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09 PAGE: 4 of 5 AS OF AS OF AS OF PERIOD END BALANCES: 12/31/2009 9/30/2009 6/30/2009 (unaudited) (unaudited) (unaudited) Earning Assets / Liabilities Loan Breakdown: (Regulatory) ----------------------------- Commercial/Industrial $985,357 $1,098,501 $1,139,020 -------- ---------- ---------- Commercial Real Estate 1,833,069 1,787,829 1,845,085 --------- --------- --------- Residential Mortgage (including multi-family) 1,430,027 1,443,030 1,481,807 --------- --------- --------- Real Estate Construction and Land Development 534,315 637,231 626,816 ------- ------- ------- Home Equity (revolving and 2nd lien) 806,556 804,415 800,122 ------- ------- ------- Consumer (Loans to Individuals) 252,028 254,909 244,048 ------- ------- ------- Other Loans 183,149 173,769 169,951 ------- ------- ------- Total Loans (net of unearned) 6,024,501 6,199,684 6,306,849 --------- --------- --------- Investment Securities 2,180,541 2,248,237 2,157,339 --------- --------- --------- Other Earning Assets 496,535 289,670 245,328 ------- ------- ------- Total Earning Assets (net of loan loss reserve) $8,555,306 $8,612,101 $8,611,203 ========== ========== ========== Deposit Breakdown: ------------------ Savings $414,886 $395,965 $393,163 -------- -------- -------- NOW Accounts 1,284,143 1,221,170 1,127,352 --------- --------- --------- Money Market Accounts 1,675,369 1,700,338 1,666,807 --------- --------- --------- CDs $100m or less 1,615,569 1,630,528 1,709,667 --------- --------- --------- CDs greater than $100m 995,235 1,132,202 1,173,067 ------- --------- --------- Total Int. Bearing Deposits 5,985,202 6,080,203 6,070,056 --------- --------- --------- Short-Term Borrowings 744,223 635,911 683,409 ------- ------- ------- Long-Term Debt 889,211 914,982 971,996 ------- ------- ------- Total Int. Bearing Liabilities $7,618,636 $7,631,096 $7,725,461 ========== ========== ========== Loan Breakdown: (Internal) -------------------------- Commercial Real Estate Non Owner Occupied - Permanent $831,127 $836,718 $846,291 -------- -------- -------- - Construction / Development 406,331 443,775 481,965 ------- ------- ------- Commercial & Industrial --------- --------- --------- Business Purpose, Real Estate secured 1,052,096 1,046,236 1,041,668 --------- --------- --------- Business Purpose, not secured by Real Estate 1,091,578 1,202,023 1,240,604 --------- --------- --------- Owner Occupied Commercial Real Estate - Permanent 589,455 595,849 609,192 - Construction / Development 52,710 53,976 58,453 Leasing 17,304 18,351 18,442 Residential Mortgage (personal purpose) Perm 833,721 839,459 868,149 ------- ------- ------- Construction 12,275 14,037 14,305 ------ ------ ------ Retail Home Equity Loans and Direct Installment loans 487,793 510,178 531,757 ------- ------- ------- Home Equity Lines of Credit 297,652 280,813 262,521 ------- ------- ------- Private Banking Credit Lines 171,582 172,113 166,542 ------- ------- ------- Indirect Vehicle loans 141,829 144,158 138,017 ------- ------- ------- Other 39,045 41,998 28,944 ------ ------ ------ Total Loans $6,024,501 $6,199,684 $6,306,849 ========== ========== ========== PAGE: 4 of 5 AS OF AS OF PERIOD END BALANCES: 3/31/2009 12/31/2008 (unaudited) (unaudited) Earning Assets / Liabilities Loan Breakdown: (Regulatory) ----------------------------- Commercial/Industrial $1,182,486 $1,192,357 ---------- ---------- Commercial Real Estate 1,840,278 1,808,017 --------- --------- Residential Mortgage (including multi-family) 1,515,548 1,526,276 --------- --------- Real Estate Construction and Land Development 617,853 588,458 ------- ------- Home Equity (revolving and 2nd lien) 800,304 791,975 ------- ------- Consumer (Loans to Individuals) 235,228 228,438 ------- ------- Other Loans 173,355 180,353 ------- ------- Total Loans (net of unearned) 6,365,052 6,315,874 --------- --------- Investment Securities 1,914,038 1,919,889 --------- --------- Other Earning Assets 299,645 38,946 ------- ------ Total Earning Assets (net of loan loss reserve) $8,492,462 $8,190,703 ========== ========== Deposit Breakdown: ------------------ Savings $382,705 $362,709 -------- -------- NOW Accounts 967,221 1,010,532 ------- --------- Money Market Accounts 1,719,492 1,591,130 --------- --------- CDs $100m or less 1,730,061 1,760,030 --------- --------- CDs greater than $100m 1,129,941 872,216 --------- ------- Total Int. Bearing Deposits 5,929,420 5,596,617 --------- --------- Short-Term Borrowings 653,805 651,307 ------- ------- Long-Term Debt 1,060,756 1,083,963 --------- --------- Total Int. Bearing Liabilities $7,643,981 $7,331,887 ========== ========== Loan Breakdown: (Internal) -------------------------- Commercial Real Estate Non Owner Occupied - Permanent $782,840 $770,663 -------- -------- - Construction / Development 494,224 453,462 ------- ------- Commercial & Industrial --------- --------- Business Purpose, Real Estate secured 1,112,769 1,140,578 --------- --------- Business Purpose, not secured by Real Estate 1,292,103 1,291,629 --------- --------- Owner Occupied Commercial Real Estate - Permanent 582,611 553,720 - Construction / Development 46,036 40,952 Leasing 19,205 20,246 Residential Mortgage (personal purpose) Perm 891,142 907,125 ------- ------- Construction 17,583 19,073 ------ ------ Retail Home Equity Loans and Direct Installment loans 565,284 606,625 ------- ------- Home Equity Lines of Credit 239,794 212,468 ------- ------- Private Banking Credit Lines 157,734 159,774 ------- ------- Indirect Vehicle loans 130,279 125,276 ------- ------- Other 33,448 14,283 ------ ------ Total Loans $6,365,052 $6,315,874 ========== ==========
Financial Update for NATL PENN BCSHS (NPBC) FOR 12/31/09 PAGE 5 OF 5 BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF 12/31/2009 9/30/2009 (unaudited) (unaudited) Qtr Avg Bal Yield Qtr Avg Bal Yield Total Loans (net of unearned) $6,137,362 5.42% $6,280,351 5.38% ---------- ---- ---------- ---- Investment Securities 2,244,878 4.51% 2,167,261 4.72% --------- ---- --------- ---- Interest Bearing Deposits and Fed Funds Sold 410,679 0.22% 243,596 0.25% ------- ---- ------- ---- Total Earning Assets 8,792,919 4.94% 8,691,208 5.07% --------- ---- --------- ---- Total Earning Assets (net of loan loss reserve) 8,661,393 5.02% 8,582,628 5.13% --------- ---- --------- ---- Total Assets 9,775,612 4.45% 9,724,872 4.53% --------- ---- --------- ---- Savings 405,132 0.33% 396,626 0.28% ------- ---- ------- ---- NOW Accounts 1,212,744 0.56% 1,162,730 0.58% --------- ---- --------- ---- Money Market Accounts 1,704,247 1.11% 1,695,479 1.10% --------- ---- --------- ---- Certificates 2,730,493 2.34% 2,822,447 2.72% --------- ---- --------- ---- Total Int. Bearing Deposits 6,052,616 1.50% 6,077,282 1.70% --------- ---- --------- ---- Non-Interest Bearing Deposits 741,254 737,745 ------- ---- ------- Total Deposits 6,793,870 1.34% 6,815,027 1.52% --------- ---- --------- ---- Short-Term Borrowings 694,000 1.74% 644,753 1.83% ------- ---- ------- ---- Long-Term Borrowings 904,083 4.66% 946,017 4.62% ------- ---- ------- ---- Total Int. Bearing Liabilities (incl. non-int bearing deposits) 8,391,953 1.73% 8,405,797 1.89% --------- ---- --------- ---- Total Int. Bearing Liabilities 7,650,699 1.89% 7,668,052 2.07% --------- ---- --------- ---- Net Yield on Earning Assets (net of loan loss reserve): (Margin) 3.34% 3.28% ---- ---- Net Yield on Earning Assets: (Margin) 3.29% 3.24% ---- ---- 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 3.48% 3.35% ---- ---- Pro Forma - Net Yield on Earning Assets: (Margin) prior to reclass of Federal Reserve Bank balances to Interest Bearing Deposits 3.43% 3.31% ---- ---- STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA) Number of Full Service Banking Offices (Domestic and in State the U.S. Territories) PA -- Total Number of Banking Offices 124 124 --- --- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1 1 -- -- Total Number of ATMs 133 136 --- --- MD -- Total Number of Banking Offices 1 1 -- -- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 0 0 -- -- Total Number of ATMs 1 1 -- -- DE -- Total Number of Banking Offices 2 2 -- -- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1 1 -- -- Total Number of ATMs 2 2 -- -- TOTAL ----- Total Number of Banking Offices 127 127 --- --- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 2 2 -- -- Total Number of ATMs 136 139 --- --- EOP Employees (Full Time Equivalent) 1,756 1,779 ----- ----- Wealth Assets: Assets under administration 8,989,419 8,471,813 Assets under management (included above) 2,199,946 2,549,386 BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF 6/30/2009 3/31/2009 (unaudited) (unaudited) Qtr Avg Bal Yield Qtr Avg Bal Yield Total Loans (net of unearned) $6,365,343 5.39% $6,366,859 5.47% ---------- ---- ---------- ---- Investment Securities 1,972,633 5.24% 1,946,768 5.39% --------- ---- --------- ---- Interest Bearing Deposits and Fed Funds Sold 400,828 0.21% 92,227 0.14% ------- ---- ------ ---- Total Earning Assets 8,738,804 5.12% 8,405,854 5.39% --------- ---- --------- ---- Total Earning Assets (net of loan loss reserve) 8,645,644 5.17% 8,316,706 5.45% --------- ---- --------- ---- Total Assets 9,790,331 4.57% 9,461,229 4.79% --------- ---- --------- ---- Savings 387,596 0.27% 370,302 0.35% ------- ---- ------- ---- NOW Accounts 1,110,985 0.82% 973,386 0.83% --------- ---- ------- ---- Money Market Accounts 1,708,680 1.25% 1,672,706 1.63% --------- ---- --------- ---- Certificates 2,935,996 3.08% 2,722,419 3.37% --------- ---- --------- ---- Total Int. Bearing Deposits 6,143,257 1.98% 5,738,813 2.24% --------- ---- --------- ---- Non-Interest Bearing Deposits 736,155 709,490 ------- ------- Total Deposits 6,879,412 1.77% 6,448,303 1.99% --------- ---- --------- ---- Short-Term Borrowings 634,077 1.92% 670,436 2.19% ------- ---- ------- ---- Long-Term Borrowings 995,619 4.58% 1,072,044 4.56% ------- ---- --------- ---- Total Int. Bearing Liabilities (incl. non-int bearing deposits) 8,509,108 2.11% 8,190,783 2.34% --------- ---- --------- ---- Total Int. Bearing Liabilities 7,772,953 2.31% 7,481,293 2.57% --------- ---- --------- ---- Net Yield on Earning Assets (net of loan loss reserve): (Margin) 3.10% 3.14% ---- ---- Net Yield on Earning Assets: (Margin) 3.06% 3.11% ---- ---- 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 3.22% 3.16% ---- ---- Pro Forma - Net Yield on Earning Assets: (Margin) prior to reclass of Federal Reserve Bank balances to Interest Bearing Deposits 3.19% 3.13% ---- ---- STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA) Number of Full Service Banking Offices (Domestic and in State the U.S. Territories) PA -- Total Number of Banking Offices 124 124 --- --- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1 1 -- -- Total Number of ATMs 138 138 --- --- MD -- Total Number of Banking Offices 1 1 -- -- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 0 0 -- -- Total Number of ATMs 1 1 -- -- DE -- Total Number of Banking Offices 2 2 -- -- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1 1 -- -- Total Number of ATMs 2 2 -- -- TOTAL ----- Total Number of Banking Offices 127 127 --- --- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 2 2 -- -- Total Number of ATMs 141 141 --- --- EOP Employees (Full Time Equivalent) 1,825 1,785 ----- ----- Wealth Assets: Assets under administration 8,133,044 7,851,843 Assets under management (included above) 2,426,525 2,280,512 BALANCE AND YIELD/COST ANALYSIS: AS OF YTD 12/31/2008 12/31/2009 (unaudited) (unaudited) Qtr Avg Bal Yield YTD Avg Bal Yield Total Loans (net of unearned) $6,267,958 6.10% $6,286,831 5.41% ---------- ---- ---------- ---- Investment Securities 1,953,569 5.16% 2,083,933 4.94% --------- ---- --------- ---- Interest Bearing Deposits and Fed Funds Sold 26,811 0.83% 284,855 0.22% ------ ---- ------- ---- Total Earning Assets 8,248,338 5.86% 8,655,619 5.13% --------- ---- --------- ---- Total Earning Assets (net of loan loss reserve) 8,163,407 5.92% 8,550,469 5.19% --------- ---- --------- ---- Total Assets 9,312,607 5.19% 9,686,673 4.58% --------- ---- --------- ---- Savings 365,925 0.47% 390,028 0.31% ------- ---- ------- ---- NOW Accounts 973,959 1.18% 1,115,747 0.69% ------- ---- --------- ---- Money Market Accounts 1,592,120 2.14% 1,693,218 1.27% --------- ---- --------- ---- Certificates 2,594,983 3.50% 2,802,915 2.87% --------- ---- --------- ---- Total Int. Bearing Deposits 5,526,987 2.50% 6,001,908 1.85% --------- ---- --------- ---- Non-Interest Bearing Deposits 762,598 731,122 ------- ------- Total Deposits 6,289,585 2.20% 6,733,030 1.65% --------- ---- --------- ---- Short-Term Borrowings 766,184 2.68% 660,825 1.92% ------- ---- ------- ---- Long-Term Borrowings 1,105,217 4.53% 978,889 4.60% --------- ---- ------- ---- Total Int. Bearing Liabilities (incl. non-int bearing deposits) 8,160,986 2.56% 8,372,744 2.01% --------- ---- --------- ---- Total Int. Bearing Liabilities 7,398,388 2.82% 7,641,622 2.21% --------- ---- --------- ---- Net Yield on Earning Assets (net of loan loss reserve): (Margin) 3.36% 3.22% ---- ---- Net Yield on Earning Assets: (Margin) 3.33% 3.18% ---- ---- 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 3.36% 3.31% ---- ---- Pro Forma - Net Yield on Earning Assets: (Margin) prior to reclass of Federal Reserve Bank balances to Interest Bearing Deposits 3.33% 3.27% ---- ---- STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA) Number of Full Service Banking Offices (Domestic and in State the U.S. Territories) PA -- Total Number of Banking Offices 124 --- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1 -- Total Number of ATMs 138 --- MD -- Total Number of Banking Offices 1 -- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 0 -- Total Number of ATMs 1 -- DE -- Total Number of Banking Offices 2 -- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 1 -- Total Number of ATMs 2 -- TOTAL ----- Total Number of Banking Offices 127 --- Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries) 2 -- Total Number of ATMs 141 --- EOP Employees (Full Time Equivalent) 1,780 ----- Wealth Assets: Assets under administration 7,912,771 Assets under management (included above) 2,414,271 BALANCE AND YIELD/COST ANALYSIS: YTD 12/31/2008 (unaudited) YTD Avg Bal Yield Total Loans (net of unearned) $5,939,448 6.42% ---------- ---- Investment Securities 1,919,549 5.48% --------- ---- Interest Bearing Deposits and Fed Funds Sold 24,964 2.53% ------ ---- Total Earning Assets 7,883,961 6.18% --------- ---- Total Earning Assets (net of loan loss reserve) 7,803,165 6.24% --------- ---- Total Assets 8,874,914 5.49% --------- ---- Savings 362,185 0.56% ------- ---- NOW Accounts 900,092 1.31% ------- ---- Money Market Accounts 1,585,939 2.37% --------- ---- Certificates 2,367,451 3.87% --------- ---- Total Int. Bearing Deposits 5,215,667 2.74% --------- ---- Non-Interest Bearing Deposits 731,142 ------- Total Deposits 5,946,809 2.40% --------- ---- Short-Term Borrowings 726,708 2.89% ------- ---- Long-Term Borrowings 1,117,499 4.44% --------- ---- Total Int. Bearing Liabilities (incl. non-int bearing deposits) 7,791,016 2.74% --------- ---- Total Int. Bearing Liabilities 7,059,874 3.02% --------- ---- Net Yield on Earning Assets (net of loan loss reserve): (Margin) 3.51% ---- Net Yield on Earning Assets: (Margin) 3.47% ---- 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 3.51% ---- Pro Forma - Net Yield on Earning Assets: (Margin) prior to reclass of Federal Reserve Bank balances to Interest Bearing Deposits 3.47% ----
SOURCE National Penn Bancshares, Inc.
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