BOYERTOWN, Pa.--(BUSINESS WIRE)--National Penn Bancshares, Inc. (Nasdaq: NPBC) reported net income available to common shareholders of $22.4 million, or $0.15 per diluted share, for the second quarter of 2012, compared to $25.3 million, or $0.17 per diluted share, for the first quarter of 2012. First quarter 2012 included an after tax unrealized fair value gain of $0.01 per common share on National Penn’s trust preferred securities (Nasdaq: NPBCO). For the second quarter of 2011, net income available to common shareholders totaled $23.2 million, or $0.15 per diluted share. Year-to-date 2012 net income available to common shareholders totaled $47.8 million, or $0.31 per diluted share, an increase of 23% from $38.8 million, or $0.26 per diluted share, in the prior year.
Return on average assets was 1.14% for the first six months of 2012. Supported by the strength of National Penn’s capital position, the quarterly common stock cash dividend was increased for the fifth consecutive quarter to $0.09 per share for the third quarter. Also during the second quarter, National Penn repurchased approximately 2.2 million common shares under the previously announced program authorizing the repurchase of up to 7.5 million shares.
“The consistency of our financial results is a reflection of our culture of delivering on our strategic objectives every day with a sense of urgency and accountability,” said Scott V. Fainor, president and CEO of National Penn. “The strength of our balance sheet continues to provide opportunities to enhance shareholder value through increasing dividends and returning capital to our shareholders.”
Due to the continued low interest rate environment, net interest income contracted slightly for the quarter ended June 30, 2012 and totaled $63.2 million compared to $63.8 million in the first quarter. Net interest margin for the second quarter was 3.48% compared to 3.55% for the first quarter of 2012 and 3.53% a year ago. Average loans and leases grew by $17.6 million in the second quarter of 2012. The increase was primarily attributable to growth in commercial loans. The balance of total consumer loans, including residential mortgages, was stable on a linked-quarter basis as a result of prepayments and the sale of residential mortgage loans in the secondary market. A decline in loan and investment yields due to lower reinvestment rates was mitigated by continued efforts to manage funding costs, as total deposit costs declined by four basis points during the second quarter to 0.47%. The maturity of $80 million of FHLB advances during the second quarter 2012 also provided some benefit to net interest margin.
A significant decline in classified loans contributed to National Penn’s strong asset quality metrics. Classified loans declined 25% since June 30, 2011, of which 13% occurred during the second quarter of 2012. The continuing positive trend in classified loans, as well as an 11% decline in non-performing loans and stable net charge-offs in the second quarter, resulted in a provision for loan and lease losses of $2.0 million, consistent with the provision in the prior quarter. The coverage ratio of allowance for loan and lease losses to non-performing loans was 198% at June 30, 2012.
Total fee income from banking, wealth and insurance operations remained stable on a linked-quarter basis. Ongoing evaluation and management of expenses resulted in a stable efficiency ratio at 58.4%1 for the quarter ended June 30, 2012.
Strong internal generation of capital provided the basis for the increased quarterly dividend and share repurchases in the quarter and continued to support National Penn’s substantial capital position. As of June 30, 2012, the ratio of tangible common equity to tangible assets was 11.43%1 and the tier 1 common and total capital ratios were 15.04% and 18.71%, respectively.
Scott V. Fainor stated “The National Penn team has once again delivered solid returns during this period of slow economic recovery. We remain competitively positioned and focused on utilizing the significant strength of our balance sheet to continue to enhance shareholder value going forward.”
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with approximately $8.4 billion in assets, is a bank holding company based in Pennsylvania. Headquartered in Boyertown, National Penn operates 121 branch offices comprising 120 branches in Pennsylvania and one branch in Maryland through National Penn Bank and its KNBT and Nittany Bank divisions.
National Penn’s financial services affiliates are 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.
1Statement Regarding Non-GAAP Financial Measures:
This release, including the attached Financial Highlights and financial data tables, contains supplemental financial information determined by methods other than in accordance with Accounting Principles Generally Accepted in the United States of America (“GAAP”). National Penn’s management uses these non-GAAP measures in its analysis of National Penn’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the following non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn.
- Tangible common equity excludes goodwill and intangible assets and preferred equity. Banking and financial institution regulators also exclude goodwill and intangible assets from shareholders’ equity when assessing the capital adequacy of a financial institution. Tangible common equity provides a method to assess the company’s tangible capital trends.
- Tangible book value expresses tangible common equity on a per-share basis. Tangible book value provides a method to assess the level of tangible net assets on a per-share basis.
- Adjusted net income and return on assets exclude the effects of certain gains and losses, adjusted for taxes when applicable. Adjusted net income and returns provide methods to assess earnings performance by excluding items that management believes are not comparable among the periods presented.
- Efficiency ratio expresses operating expenses as a percentage of fully-taxable equivalent net interest income plus non-interest income. Operating expenses exclude items from non-interest expense that management believes are not comparable among the periods presented. Non-interest income is adjusted to also exclude items that management believes are not comparable among the periods presented. Efficiency ratio is used as a method for management to assess its operating expense level and to compare to financial institutions of varying sizes.
Management believes the use of non-GAAP measures will help readers compare National Penn’s current results to those of prior periods as presented in the accompanying Financial Highlights and financial data tables.
Cautionary Statement Regarding Forward-Looking Information:
This release contains forward-looking information about National Penn Bancshares, Inc. that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” ”could,” “plan,” “goal,” “potential,” “pro forma,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of announced transactions, and statements about the future performance, operations, products and services of National Penn and its subsidiaries. National Penn cautions readers not to place undue reliance on these statements.
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: regulatory requirements or other actions mandated by National Penn’s regulators, recent and ongoing changes to the state and federal regulatory schemes under which National Penn and other financial services companies operate (including the Dodd-Frank Act and regulations adopted or to be adopted to implement that Act), deterioration in the credit quality of loans, the effect of credit risk exposure, the geographic concentration of National Penn’s operations, declines in the value of National Penn’s assets and the effect of any resulting impairment charges, National Penn’s ability to raise capital and maintain capital levels; increases in operating costs (including those mandated by National Penn’s regulators), competition for personnel and from other financial institutions, variations in interest rates, interruptions or breaches of National Penn’s security systems, the development and maintenance of National Penn’s information technology, the ability of National Penn and its subsidiaries to pay dividends, and the nature and frequency of litigation and other similar proceedings to which National Penn may be a party . 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, 2011, 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.
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | ||||||||||||||||||||
| Unaudited, dollars in thousands except share and per share data | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| 6/30/2012 | 3/31/2012 | 6/30/2011 | ||||||||||||||||||
| SUMMARY BALANCE SHEET | ||||||||||||||||||||
| Total assets | $ | 8,395,864 | $ | 8,524,035 | $ | 8,633,141 | ||||||||||||||
| Investment securities and other securities | 2,316,894 | 2,335,421 | 2,290,568 | |||||||||||||||||
| Total loans and leases | 5,210,767 | 5,201,656 | 5,178,926 | |||||||||||||||||
| Deposits | 5,845,543 | 5,888,383 | 5,944,161 | |||||||||||||||||
| Borrowings | 1,298,477 | 1,387,235 | 1,515,611 | |||||||||||||||||
| Shareholders' equity | 1,199,760 | 1,200,830 | 1,133,513 | |||||||||||||||||
| Tangible book value per common share (2) | $ | 6.18 | $ | 6.09 | $ | 5.65 | ||||||||||||||
| Tangible common equity / tangible assets (2) | 11.43 | % | 11.25 | % | 10.25 | % | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| 6/30/2012 | 3/31/2012 | 6/30/2011 | 6/30/2012 | 6/30/2011 | ||||||||||||||||
| EARNINGS | ||||||||||||||||||||
| Total interest income | $ | 79,896 | $ | 81,414 | $ | 87,740 | $ | 161,310 | $ | 177,098 | ||||||||||
| Total interest expense | 16,697 | 17,596 | 22,745 | 34,293 | 46,133 | |||||||||||||||
| Net interest income | 63,199 | 63,818 | 64,995 | 127,017 | 130,965 | |||||||||||||||
| Provision for loan and lease losses | 2,000 | 2,000 | 3,000 | 4,000 | 13,000 | |||||||||||||||
| Net interest income after provision for loan and lease losses | 61,199 | 61,818 | 61,995 | 123,017 | 117,965 | |||||||||||||||
| Net (losses) gains from fair value changes on subordinated debentures | (810 | ) | 1,645 | (430 | ) | 835 | (481 | ) | ||||||||||||
| Net (losses) gains on investment securities | (277 | ) | - | - | (277 | ) | - | |||||||||||||
| Other non-interest income | 21,543 | 22,596 | 22,818 | 44,139 | 47,053 | |||||||||||||||
| Other non-interest expense | 52,269 | 52,440 | 54,121 | 104,709 | 110,958 | |||||||||||||||
| Income before income taxes | 29,386 | 33,619 | 30,262 | 63,005 | 53,579 | |||||||||||||||
| Income tax expense | 6,938 | 8,317 | 7,054 | 15,255 | 11,591 | |||||||||||||||
| Net income | 22,448 | 25,302 | 23,208 | 47,750 | 41,988 | |||||||||||||||
| Preferred dividends and accretion of preferred discount | - | - | - | - | (1,691 | ) | ||||||||||||||
| Accelerated accretion from redemption of preferred stock | - | - | - | - | (1,452 | ) | ||||||||||||||
| Net income available to common shareholders | $ | 22,448 | $ | 25,302 | $ | 23,208 | $ | 47,750 | $ | 38,845 | ||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||||||
| Net interest margin | 3.48 | % | 3.55 | % | 3.53 | % | 3.52 | % | 3.56 | % | ||||||||||
| Return on average assets | 1.07 | % | 1.21 | % | 1.08 | % | 1.14 | % | 0.98 | % | ||||||||||
| Adjusted return on average assets (3) | 1.09 | % | 1.16 | % | 1.08 | % | 1.13 | % | 0.95 | % | ||||||||||
| Return on average total shareholders' equity | 7.50 | % | 8.56 | % | 8.37 | % | 8.03 | % | 7.35 | % | ||||||||||
| Return on average tangible common equity (1) | 9.69 | % | 11.12 | % | 11.16 | % | 10.40 | % | 9.65 | % | ||||||||||
| Efficiency ratio (4) | 58.42 | % | 57.47 | % | 58.25 | % | 57.94 | % | 58.94 | % | ||||||||||
| PER SHARE | ||||||||||||||||||||
| Basic earnings available to common shareholders | $ | 0.15 | $ | 0.17 | $ | 0.15 | $ | 0.31 | $ | 0.26 | ||||||||||
| Diluted earnings available to common shareholders | 0.15 | 0.17 | 0.15 | 0.31 | 0.26 | |||||||||||||||
| Dividends per common share | 0.07 | 0.05 | 0.01 | 0.12 | 0.02 | |||||||||||||||
| Average shares - basic | 151,732,402 | 152,099,546 | 151,601,052 | 151,915,974 | 151,034,207 | |||||||||||||||
| Average shares - diluted | 152,011,995 | 152,392,315 | 151,835,402 | 152,202,155 | 151,303,597 | |||||||||||||||
| (1) RECONCILIATION TABLES FOR NON-GAAP FINANCIAL MEASURES | Three Months Ended | Six Months Ended | ||||||||||||||||||
| 6/30/2012 | 3/31/2012 | 6/30/2011 | 6/30/2012 | 6/30/2011 | ||||||||||||||||
| Return on average tangible common equity | ||||||||||||||||||||
| Return on average shareholders' equity | 7.50 | % | 8.56 | % | 8.37 | % | 8.03 | % | 7.35 | % | ||||||||||
| Effect of preferred equity | - | - | - | - | -0.17 | % | ||||||||||||||
| Effect of goodwill and intangibles | 2.19 | % | 2.56 | % | 2.79 | % | 2.37 | % | 2.47 | % | ||||||||||
| Return on average tangible common equity | 9.69 | % | 11.12 | % | 11.16 | % | 10.40 | % | 9.65 | % | ||||||||||
| Average tangible equity: | ||||||||||||||||||||
| Average shareholders' equity | $ | 1,203,757 | $ | 1,188,384 | $ | 1,112,114 | $ | 1,196,071 | $ | 1,151,379 | ||||||||||
| Average preferred equity | - | - | - | - | (60,710 | ) | ||||||||||||||
| Average goodwill and intangibles | (271,990 | ) | (273,360 | ) | (278,022 | ) | (272,675 | ) | (278,820 | ) | ||||||||||
| Average total tangible common equity | $ | 931,767 | $ | 915,024 | $ | 834,092 | $ | 923,396 | $ | 811,849 | ||||||||||
| Adjusted net income reconciliation | ||||||||||||||||||||
| Net income available to common shareholders | $ | 22,448 | $ | 25,302 | $ | 23,208 | $ | 47,750 | $ | 38,845 | ||||||||||
| After tax unrealized fair market value loss (gain) on subordinated debentures | 527 | (1,069 | ) | 280 | (543 | ) | 313 | |||||||||||||
| Accelerated accretion from redemption of preferred stock | - | - | - | - | 1,452 | |||||||||||||||
| Adjusted net income available to common shareholders | $ | 22,975 | $ | 24,233 | $ | 23,488 | $ | 47,207 | $ | 40,610 | ||||||||||
| Earnings per share | ||||||||||||||||||||
| Net income available to common shareholders | $ | 0.15 | $ | 0.17 | $ | 0.15 | $ | 0.31 | $ | 0.26 | ||||||||||
| After tax unrealized fair market value loss (gain) on subordinated debentures | - | (0.01 | ) | - | (0.01 | ) | - | |||||||||||||
| Accelerated accretion from redemption of preferred stock | - | - | - | - | 0.01 | |||||||||||||||
| Adjusted net income available to common shareholders | $ | 0.15 | $ | 0.16 | $ | 0.15 | $ | 0.30 | $ | 0.27 | ||||||||||
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | ||||||||||||||||||||
| Unaudited, dollars in thousands except share and per share data | As of | |||||||||||||||||||
| 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | ||||||||||||||||
| BALANCE SHEET - ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 115,564 | $ | 108,752 | $ | 129,637 | $ | 116,057 | $ | 105,918 | ||||||||||
| Interest-earning deposits with banks | 221,419 | 344,427 | 321,885 | 422,942 | 513,132 | |||||||||||||||
| Total cash and cash equivalents | 336,983 | 453,179 | 451,522 | 538,999 | 619,050 | |||||||||||||||
| Investment securities available-for-sale, at fair value | 1,769,359 | 1,779,613 | 1,747,019 | 1,790,654 | 1,696,682 | |||||||||||||||
| Investment securities held-to-maturity | 481,341 | 487,507 | 496,574 | 509,773 | 518,578 | |||||||||||||||
| Other securities | 66,194 | 68,301 | 70,518 | 72,851 | 75,308 | |||||||||||||||
| Loans held-for-sale | 16,908 | 16,909 | 12,216 | 17,144 | 8,852 | |||||||||||||||
| Loans and leases | 5,193,859 | 5,184,747 | 5,175,885 | 5,144,131 | 5,170,074 | |||||||||||||||
| Allowance for loan and lease losses | (116,650 | ) | (121,452 | ) | (126,640 | ) | (131,073 | ) | (137,909 | ) | ||||||||||
| Loans and leases, net | 5,077,209 | 5,063,295 | 5,049,245 | 5,013,058 | 5,032,165 | |||||||||||||||
| Premises and equipment, net | 96,566 | 95,937 | 96,198 | 100,880 | 103,017 | |||||||||||||||
| Accrued interest receivable | 30,511 | 31,241 | 30,991 | 33,110 | 31,862 | |||||||||||||||
| Bank owned life insurance | 140,747 | 139,507 | 138,274 | 137,017 | 136,606 | |||||||||||||||
| Other real estate owned and other repossessed assets | 7,201 | 7,647 | 7,716 | 8,029 | 8,407 | |||||||||||||||
| Goodwill | 258,279 | 258,279 | 258,279 | 258,279 | 258,279 | |||||||||||||||
| Other intangible assets, net | 13,085 | 14,408 | 15,770 | 17,370 | 18,970 | |||||||||||||||
| Unconsolidated investments under the equity method | 10,109 | 11,699 | 12,173 | 11,927 | 12,327 | |||||||||||||||
| Other assets | 91,372 | 96,513 | 99,786 | 102,550 | 113,038 | |||||||||||||||
| TOTAL ASSETS | $ | 8,395,864 | $ | 8,524,035 | $ | 8,486,281 | $ | 8,611,641 | $ | 8,633,141 | ||||||||||
| BALANCE SHEET - LIABILITIES | ||||||||||||||||||||
| Non-interest bearing deposits | $ | 903,766 | $ | 884,025 | $ | 863,703 | $ | 833,311 | $ | 839,811 | ||||||||||
| Interest bearing deposits | 4,941,777 | 5,004,358 | 5,011,116 | 5,159,680 | 5,104,350 | |||||||||||||||
| Total deposits | 5,845,543 | 5,888,383 | 5,874,819 | 5,992,991 | 5,944,161 | |||||||||||||||
| Customer repurchase agreements | 533,389 | 542,706 | 523,978 | 500,099 | 573,628 | |||||||||||||||
| Structured repurchase agreements | 85,000 | 85,000 | 85,000 | 140,000 | 165,000 | |||||||||||||||
| Short-term borrowings | - | - | - | 6,400 | 6,390 | |||||||||||||||
| Federal Home Loan Bank advances | 535,613 | 615,863 | 616,111 | 619,946 | 627,332 | |||||||||||||||
| Subordinated debentures | 144,475 | 143,666 | 145,310 | 143,767 | 143,261 | |||||||||||||||
| Accrued interest payable and other liabilities | 52,084 | 47,587 | 60,376 | 44,234 | 39,856 | |||||||||||||||
| TOTAL LIABILITIES | 7,196,104 | 7,323,205 | 7,305,594 | 7,447,437 | 7,499,628 | |||||||||||||||
| BALANCE SHEET - SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock | 1,386,177 | 1,384,657 | 1,383,082 | 1,380,728 | 1,379,690 | |||||||||||||||
| Accumulated deficit | (193,715 | ) | (205,497 | ) | (223,189 | ) | (237,862 | ) | (258,125 | ) | ||||||||||
| Accumulated other comprehensive income | 25,435 | 21,670 | 20,794 | 21,338 | 11,948 | |||||||||||||||
| Treasury stock | (18,137 | ) | - | - | - | - | ||||||||||||||
| TOTAL SHAREHOLDERS' EQUITY | 1,199,760 | 1,200,830 | 1,180,687 | 1,164,204 | 1,133,513 | |||||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 8,395,864 | $ | 8,524,035 | $ | 8,486,281 | $ | 8,611,641 | $ | 8,633,141 | ||||||||||
| COMMON SHARE AND PER SHARE DATA | ||||||||||||||||||||
| Book value | $ | 7.98 | $ | 7.88 | $ | 7.77 | $ | 7.67 | $ | 7.47 | ||||||||||
| Tangible book value (2) | $ | 6.18 | $ | 6.09 | $ | 5.97 | $ | 5.86 | $ | 5.65 | ||||||||||
| Dividends | $ | 0.07 | $ | 0.05 | $ | 0.04 | $ | 0.03 | $ | 0.01 | ||||||||||
| Shares outstanding (end of period, net of treasury) | 150,258,232 | 152,295,895 | 151,883,036 | 151,714,696 | 151,660,444 | |||||||||||||||
| (2) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| Total shareholders' equity | $ | 1,199,760 | $ | 1,200,830 | $ | 1,180,687 | $ | 1,164,204 | $ | 1,133,513 | ||||||||||
| Goodwill and intangibles | (271,364 | ) | (272,687 | ) | (274,049 | ) | (275,649 | ) | (277,249 | ) | ||||||||||
| Tangible common equity | $ | 928,396 | $ | 928,143 | $ | 906,638 | $ | 888,555 | $ | 856,264 | ||||||||||
| Common shares outstanding | 150,258,232 | 152,295,895 | 151,883,036 | 151,714,696 | 151,660,444 | |||||||||||||||
| Tangible book value per share | $ | 6.18 | $ | 6.09 | $ | 5.97 | $ | 5.86 | $ | 5.65 | ||||||||||
| Total assets | $ | 8,395,864 | $ | 8,524,035 | $ | 8,486,281 | $ | 8,611,641 | $ | 8,633,141 | ||||||||||
| Goodwill and intangibles | (271,364 | ) | (272,687 | ) | (274,049 | ) | (275,649 | ) | (277,249 | ) | ||||||||||
| Tangible assets | $ | 8,124,500 | $ | 8,251,348 | $ | 8,212,232 | $ | 8,335,992 | $ | 8,355,892 | ||||||||||
| Tangible common equity/tangible assets | 11.43 | % | 11.25 | % | 11.04 | % | 10.66 | % | 10.25 | % | ||||||||||
| (3) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||
| Adjusted net income available to common shareholders (1) | $ | 22,975 | $ | 24,233 | $ | 23,176 | $ | 24,813 | $ | 23,208 | ||||||||||
| Average assets | $ | 8,473,164 | $ | 8,397,381 | $ | 8,525,271 | $ | 8,588,269 | $ | 8,599,923 | ||||||||||
| Adjusted return on average assets (annualized) | 1.09 | % | 1.16 | % | 1.08 | % | 1.15 | % | 1.08 | % | ||||||||||
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | ||||||||||||||||||||||||||||
| Unaudited, dollars in thousands except share and per share data | For the Quarter Ended | For the Six Months Ended | ||||||||||||||||||||||||||
| 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 6/30/2012 | 6/30/2011 | ||||||||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||||||||||
| Loans and leases, including fees | $ | 61,116 | $ | 62,291 | $ | 64,040 | $ | 65,795 | $ | 67,553 | $ | 123,407 | $ | 136,781 | ||||||||||||||
| Investment securities | ||||||||||||||||||||||||||||
| Taxable | 10,941 | 11,209 | 11,310 | 11,591 | 11,552 | 22,150 | 22,909 | |||||||||||||||||||||
| Tax-exempt | 7,636 | 7,781 | 8,076 | 8,337 | 8,401 | 15,417 | 16,894 | |||||||||||||||||||||
| Deposits with banks | 203 | 133 | 255 | 332 | 234 | 336 | 514 | |||||||||||||||||||||
| Total interest income | 79,896 | 81,414 | 83,681 | 86,055 | 87,740 | 161,310 | 177,098 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Deposits | 6,879 | 7,294 | 8,272 | 9,881 | 10,974 | 14,173 | 22,381 | |||||||||||||||||||||
| Customer repurchase agreements | 545 | 550 | 556 | 593 | 645 | 1,095 | 1,357 | |||||||||||||||||||||
| Structured repurchase agreements | 915 | 915 | 1,316 | 1,697 | 1,701 | 1,830 | 3,384 | |||||||||||||||||||||
| Short-term borrowings | - | - | - | - | - | - | - | |||||||||||||||||||||
| Federal Home Loan Bank advances | 6,501 | 6,967 | 6,987 | 7,073 | 7,039 | 13,468 | 14,256 | |||||||||||||||||||||
| Subordinated debentures | 1,857 | 1,870 | 2,029 | 2,394 | 2,386 | 3,727 | 4,755 | |||||||||||||||||||||
| Total interest expense | 16,697 | 17,596 | 19,160 | 21,638 | 22,745 | 34,293 | 46,133 | |||||||||||||||||||||
| Net interest income | 63,199 | 63,818 | 64,521 | 64,417 | 64,995 | 127,017 | 130,965 | |||||||||||||||||||||
| Provision for loan and lease losses | 2,000 | 2,000 | 2,000 | - | 3,000 | 4,000 | 13,000 | |||||||||||||||||||||
| Net interest income after provision for loan and lease losses | 61,199 | 61,818 | 62,521 | 64,417 | 61,995 | 123,017 | 117,965 | |||||||||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||||||||||
| Wealth management income | 6,005 | 6,161 | 5,616 | 6,227 | 5,856 | 12,166 | 11,780 | |||||||||||||||||||||
| Service charges on deposit accounts | 3,753 | 3,823 | 4,608 | 4,880 | 4,616 | 7,576 | 9,280 | |||||||||||||||||||||
| Insurance commissions and fees | 3,211 | 3,296 | 3,107 | 3,406 | 3,520 | 6,507 | 6,741 | |||||||||||||||||||||
| Cash management and electronic banking fees | 4,707 | 4,420 | 4,613 | 4,590 | 4,645 | 9,127 | 9,016 | |||||||||||||||||||||
| Mortgage banking income | 1,511 | 1,335 | 1,481 | 1,349 | 1,014 | 2,846 | 2,094 | |||||||||||||||||||||
| Bank owned life insurance income | 1,255 | 1,209 | 1,288 | 1,733 | 1,233 | 2,464 | 2,453 | |||||||||||||||||||||
| Earnings (losses) of unconsolidated investments | 108 | (74 | ) | 246 | 99 | 116 | 34 | 1,816 | ||||||||||||||||||||
| Other operating income | 993 | 2,426 | 2,019 | 2,339 | 1,818 | 3,419 | 3,873 | |||||||||||||||||||||
| Loss on sale of building | - | - | - | (1,000 | ) | - | - | - | ||||||||||||||||||||
| Net (losses) gains from fair value changes on subordinated debentures | (810 | ) | 1,645 | (1,543 | ) | (506 | ) | (430 | ) | 835 | (481 | ) | ||||||||||||||||
| Loss on debt extinguishment | - | - | (1,635 | ) | (998 | ) | - | - | - | |||||||||||||||||||
| Net (losses) gains on sales of investment securities | (123 | ) | - | 1,697 | 1,022 | - | (123 | ) | - | |||||||||||||||||||
| Impairment losses on investment securities: | ||||||||||||||||||||||||||||
| Credit related losses on investment securities | (154 | ) | - | - | - | - | (154 | ) | - | |||||||||||||||||||
|
Non credit-related losses on securities not expected to be sold recognized in other comprehensive loss before tax |
- | - | - | - | - | - | - | |||||||||||||||||||||
| Net impairment losses on investment securities | (154 | ) | - | - | - | - | (154 | ) | - | |||||||||||||||||||
| Total non-interest income | 20,456 | 24,241 | 21,497 | 23,141 | 22,388 | 44,697 | 46,572 | |||||||||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries, wages and employee benefits | 31,234 | 31,381 | 29,598 | 30,809 | 30,408 | 62,615 | 61,857 | |||||||||||||||||||||
| Premises and equipment | 7,349 | 6,853 | 7,652 | 7,228 | 6,787 | 14,202 | 14,059 | |||||||||||||||||||||
| FDIC insurance | 1,211 | 1,264 | 1,442 | 2,213 | 2,726 | 2,475 | 6,183 | |||||||||||||||||||||
| Corporate reorganization expense | - | - | 2,200 | - | - | - | - | |||||||||||||||||||||
| Other operating expenses | 12,475 | 12,942 | 16,494 | 14,803 | 14,200 | 25,417 | 28,859 | |||||||||||||||||||||
| Total non-interest expense | 52,269 | 52,440 | 57,386 | 55,053 | 54,121 | 104,709 | 110,958 | |||||||||||||||||||||
| Income before income taxes | 29,386 | 33,619 | 26,632 | 32,505 | 30,262 | 63,005 | 53,579 | |||||||||||||||||||||
| Income tax expense | 6,938 | 8,317 | 5,889 | 7,692 | 7,054 | 15,255 | 11,591 | |||||||||||||||||||||
| NET INCOME | 22,448 | 25,302 | 20,743 | 24,813 | 23,208 | 47,750 | 41,988 | |||||||||||||||||||||
| Preferred dividends and accretion of preferred discount | - | - | - | - | - | - | (1,691 | ) | ||||||||||||||||||||
| Accelerated accretion from redemption of preferred stock | - | - | - | - | - | - | (1,452 | ) | ||||||||||||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 22,448 | $ | 25,302 | $ | 20,743 | $ | 24,813 | $ | 23,208 | $ | 47,750 | $ | 38,845 | ||||||||||||||
| PER SHARE OF COMMON STOCK | ||||||||||||||||||||||||||||
| Basic earnings available to common shareholders | $ | 0.15 | $ | 0.17 | $ | 0.14 | $ | 0.16 | $ | 0.15 | $ | 0.31 | $ | 0.26 | ||||||||||||||
| Diluted earnings available to common shareholders | $ | 0.15 | $ | 0.17 | $ | 0.14 | $ | 0.16 | $ | 0.15 | $ | 0.31 | $ | 0.26 | ||||||||||||||
| Average shares - basic | 151,732,402 | 152,099,546 | 151,773,327 | 151,693,223 | 151,601,052 | 151,915,974 | 151,034,207 | |||||||||||||||||||||
| Average shares - diluted | 152,011,995 | 152,392,315 | 152,068,706 | 151,927,269 | 151,835,402 | 152,202,155 | 151,303,597 | |||||||||||||||||||||
| SUPPLEMENTAL DATA (annualized, average) | ||||||||||||||||||||||||||||
| Return on assets | 1.07 | % | 1.21 | % | 0.97 | % | 1.15 | % | 1.08 | % | 1.14 | % | 0.98 | % | ||||||||||||||
| Adjusted return on assets (3) | 1.09 | % | 1.16 | % | 1.08 | % | 1.15 | % | 1.08 | % | 1.13 | % | 0.95 | % | ||||||||||||||
| Return on total equity | 7.50 | % | 8.56 | % | 7.02 | % | 8.59 | % | 8.37 | % | 8.03 | % | 7.35 | % | ||||||||||||||
| Return on common equity | 7.50 | % | 8.56 | % | 7.02 | % | 8.59 | % | 8.37 | % | 8.03 | % | 7.18 | % | ||||||||||||||
| Return on tangible common equity (1) | 9.69 | % | 11.12 | % | 9.17 | % | 11.33 | % | 11.16 | % | 10.40 | % | 9.65 | % | ||||||||||||||
| Efficiency ratio (4) | 58.42 | % | 57.47 | % | 59.73 | % | 58.54 | % | 58.25 | % | 57.94 | % | 58.94 | % | ||||||||||||||
| (4) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||
| Efficiency Ratio Calculation | ||||||||||||||||||||||||||||
| Non-interest expense | $ | 52,269 | $ | 52,440 | $ | 57,386 | $ | 55,053 | $ | 54,121 | $ | 104,709 | $ | 110,958 | ||||||||||||||
| Less: | ||||||||||||||||||||||||||||
|
Corporate reorganization expense |
- | - | 2,200 | - | - | - | - | |||||||||||||||||||||
| Operating expenses | $ | 52,269 | $ | 52,440 | $ | 55,186 | $ | 55,053 | $ | 54,121 | $ | 104,709 | $ | 110,958 | ||||||||||||||
| Net interest income (taxable equivalent) | $ | 67,929 | $ | 68,645 | $ | 69,409 | $ | 69,426 | $ | 70,087 | $ | 136,574 | $ | 141,199 | ||||||||||||||
| Non-interest income | 20,456 | 24,241 | 21,497 | 23,141 | 22,388 | 44,697 | 46,572 | |||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Loss on sale of building | - | - | - | (1,000 | ) | - | - | - | ||||||||||||||||||||
| Loss on debt extinguishment | - | - | (1,635 | ) | (998 | ) | - | - | - | |||||||||||||||||||
| Net (losses) gains from fair value changes on subordinated debentures | (810 | ) | 1,645 | (1,543 | ) | (506 | ) | (430 | ) | 835 | (481 | ) | ||||||||||||||||
| Net (losses) gains on investment securities | (277 | ) | - | 1,697 | 1,022 | - | (277 | ) | - | |||||||||||||||||||
| Adjusted revenue | $ | 89,472 | $ | 91,241 | $ | 92,387 | $ | 94,049 | $ | 92,905 | $ | 180,713 | $ | 188,252 | ||||||||||||||
| Efficiency Ratio | 58.42 | % | 57.47 | % | 59.73 | % | 58.54 | % | 58.25 | % | 57.94 | % | 58.94 | % | ||||||||||||||
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | ||||||||||||||||||||||||||||
| Unaudited, dollars in thousands except share and per share data | ||||||||||||||||||||||||||||
| As of and for the Quarter Ended | For the Six Months Ended | |||||||||||||||||||||||||||
| CHARGE-OFFS | 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 6/30/2012 | 6/30/2011 | |||||||||||||||||||||
| Loan charge-offs | $ | 7,907 | $ | 8,722 | $ | 9,896 | $ | 8,374 | $ | 10,512 | $ | 16,629 | $ | 29,265 | ||||||||||||||
| Recoveries on loans | (1,105 | ) | (1,534 | ) | (3,463 | ) | (1,538 | ) | (2,461 | ) | (2,639 | ) | (4,120 | ) | ||||||||||||||
| Net loan charge-offs | $ | 6,802 | $ | 7,188 | $ | 6,433 | $ | 6,836 | $ | 8,051 | $ | 13,990 | $ | 25,145 | ||||||||||||||
| Net loan charge-offs to average loans (annualized) | 0.53 | % | 0.56 | % | 0.50 | % | 0.53 | % | 0.61 | % | 0.54 | % | 0.96 | % | ||||||||||||||
| NET CHARGE-OFF DETAIL | ||||||||||||||||||||||||||||
| Commercial and industrial loans and leases | $ | 5,196 | $ | 1,925 | $ | 2,648 | $ | 1,962 | $ | 5,066 | $ | 7,121 | $ | 14,385 | ||||||||||||||
| Commercial real estate-permanent | 595 | 1,933 | 517 | 83 | 1,242 | 2,528 | 5,188 | |||||||||||||||||||||
| Commercial real estate-construction | (148 | ) | 673 | (1,337 | ) | 2,637 | 828 | 525 | 1,701 | |||||||||||||||||||
| Total commercial real estate loans | 447 | 2,606 | (820 | ) | 2,720 | 2,070 | 3,053 | 6,889 | ||||||||||||||||||||
| Residential mortgages | 328 | 560 | 993 | 998 | 483 | 888 | 2,126 | |||||||||||||||||||||
| Home equity lines and loans | 404 | 1,855 | 2,429 | 596 | 833 | 2,259 | 1,991 | |||||||||||||||||||||
| All other consumer loans | 427 | 242 | 1,183 | 560 | (401 | ) | 669 | (246 | ) | |||||||||||||||||||
| Total consumer loans | 1,159 | 2,657 | 4,605 | 2,154 | 915 | 3,816 | 3,871 | |||||||||||||||||||||
| Net loans charged-off | $ | 6,802 | $ | 7,188 | $ | 6,433 | $ | 6,836 | $ | 8,051 | $ | 13,990 | $ | 25,145 | ||||||||||||||
| As of | ||||||||||||||||||||||||||||
| ASSET QUALITY AND OTHER DATA | 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | |||||||||||||||||||||||
| Non-accrual commercial and industrial loans and leases | $ | 33,984 | $ | 32,485 | $ | 31,081 | $ | 29,995 | $ | 31,275 | ||||||||||||||||||
| Non-accrual commercial real estate-permanent | 2,999 | 5,156 | 7,403 | 8,314 | 11,879 | |||||||||||||||||||||||
| Non-accrual commercial real estate-construction | 6,959 | 14,336 | 12,218 | 14,549 | 15,844 | |||||||||||||||||||||||
| Total non-accrual commercial real estate loans | 9,958 | 19,492 | 19,621 | 22,863 | 27,723 | |||||||||||||||||||||||
| Non-accrual residential mortgages | 4,301 | 4,077 | 4,504 | 4,472 | 5,196 | |||||||||||||||||||||||
| Non-accrual home equity lines and loans | 2,555 | 2,110 | 3,046 | 1,763 | 1,527 | |||||||||||||||||||||||
| All other non-accrual consumer loans | 1,753 | 1,695 | 3,176 | 1,907 | 2,062 | |||||||||||||||||||||||
| Total non-accrual consumer loans | 8,609 | 7,882 | 10,726 | 8,142 | 8,785 | |||||||||||||||||||||||
| Total non-accrual loans | 52,551 | 59,859 | 61,428 | 61,000 | 67,783 | |||||||||||||||||||||||
| Restructured loans | 6,468 | 6,506 | 5,548 | 4,372 | 3,833 | |||||||||||||||||||||||
| Total non-performing loans | 59,019 | 66,365 | 66,976 | 65,372 | 71,616 | |||||||||||||||||||||||
| Other real estate owned and repossessed assets | 7,201 | 7,647 | 7,716 | 8,029 | 8,407 | |||||||||||||||||||||||
| Total non-performing assets | 66,220 | 74,012 | 74,692 | 73,401 | 80,023 | |||||||||||||||||||||||
| Loans 90+ days past due & still accruing | 3,426 | 1,588 | 2,010 | 1,408 | 1,567 | |||||||||||||||||||||||
| Total non-performing assets and loans 90+ days past due | $ | 69,646 | $ | 75,600 | $ | 76,702 | $ | 74,809 | $ | 81,590 | ||||||||||||||||||
| Allowance for loan and lease losses | $ | 116,650 | $ | 121,452 | $ | 126,640 | $ | 131,073 | $ | 137,909 | ||||||||||||||||||
| Allowance for loan and lease losses/non-performing loans | 197.6 | % | 183.0 | % | 189.1 | % | 200.5 | % | 192.6 | % | ||||||||||||||||||
| Allowance for loan and lease losses/non-performing assets and loans 90+ days past due | 167.5 | % | 160.7 | % | 165.1 | % | 175.2 | % | 169.0 | % | ||||||||||||||||||
| Allowance for loan and lease losses/total loans and leases | 2.24 | % | 2.33 | % | 2.44 | % | 2.54 | % | 2.66 | % | ||||||||||||||||||
| Provision/charge-offs, net | 29.4 | % | 27.8 | % | 31.1 | % | 0.0 | % | 37.3 | % | ||||||||||||||||||
| Classified loans | $ | 301,542 | $ | 347,033 | $ | 370,439 | $ | 374,850 | $ | 403,145 | ||||||||||||||||||
| Classified loans/total loans and leases | 5.79 | % | 6.67 | % | 7.14 | % | 7.26 | % | 7.78 | % | ||||||||||||||||||
| Delinquent loans (a) | $ | 24,144 | $ | 24,068 | $ | 24,801 | $ | 28,824 | $ | 20,413 | ||||||||||||||||||
| Delinquent loans/total loans and leases | 0.46 | % | 0.46 | % | 0.48 | % | 0.56 | % | 0.39 | % | ||||||||||||||||||
| As of | ||||||||||||||||||||||||||||
| REGULATORY CAPITAL DATA | 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | |||||||||||||||||||||||
| Tier 1 Capital | $ | 1,008,052 | $ | 1,005,009 | $ | 978,302 | $ | 955,766 | $ | 922,457 | ||||||||||||||||||
| Tier 1 Leverage Ratio | 12.44 | % | 12.53 | % | 12.00 | % | 11.63 | % | 11.20 | % | ||||||||||||||||||
| Tier 1 Ratio (%) | 17.45 | % | 17.46 | % | 17.12 | % | 16.85 | % | 16.43 | % | ||||||||||||||||||
| Total Capital | $ | 1,080,807 | $ | 1,077,587 | $ | 1,050,417 | $ | 1,027,393 | $ | 992,729 | ||||||||||||||||||
| Total Capital Ratio (%) | 18.71 | % | 18.72 | % | 18.38 | % | 18.12 | % | 17.68 | % | ||||||||||||||||||
| Total Risk-Weighted Assets | $ | 5,776,537 | $ | 5,757,306 | $ | 5,714,643 | $ | 5,670,722 | $ | 5,615,341 | ||||||||||||||||||
| (a) Includes loans 30-89 days past due and loans 90+ days past due and still accruing | ||||||||||||||||||||||||||||
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | |||||||||||||||
| Unaudited, dollars in thousands except share and per share data | |||||||||||||||
| As of | |||||||||||||||
| PERIOD END BALANCES: | 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | ||||||||||
| Earning Assets / Liabilities | |||||||||||||||
| Loan portfolio composition (regulatory): | |||||||||||||||
| Commercial / industrial | $ | 856,237 | $ | 853,379 | $ | 833,534 | $ | 813,356 | $ | 838,489 | |||||
| Commercial real estate (a) | 1,759,792 | 1,753,986 | 1,737,383 | 1,697,975 | 1,715,616 | ||||||||||
| Residential mortgage | 1,262,633 | 1,269,505 | 1,270,896 | 1,272,478 | 1,295,463 | ||||||||||
| Real estate construction and land development | 194,942 | 210,976 | 212,306 | 216,250 | 207,643 | ||||||||||
| Home equity | 765,902 | 756,803 | 771,792 | 766,299 | 764,467 | ||||||||||
| Consumer | 207,999 | 210,069 | 209,082 | 213,014 | 213,570 | ||||||||||
| Other loans | 163,262 | 146,938 | 153,108 | 181,903 | 143,678 | ||||||||||
| Total loans | 5,210,767 | 5,201,656 | 5,188,101 | 5,161,275 | 5,178,926 | ||||||||||
| Investment securities and other securities | 2,316,894 | 2,335,421 | 2,314,111 | 2,373,278 | 2,290,568 | ||||||||||
| Other earning assets | 221,419 | 344,427 | 321,885 | 422,942 | 513,132 | ||||||||||
| Total earning assets (net of loan loss reserve) | $ | 7,632,430 | $ | 7,760,052 | $ | 7,697,457 | $ | 7,826,422 | $ | 7,844,717 | |||||
| (a) Includes owner occupied | |||||||||||||||
| Loan portfolio composition (internal): | |||||||||||||||
| Commercial & industrial loans and leases | |||||||||||||||
| Business purpose, real estate secured | $ | 879,413 | $ | 864,284 | $ | 895,028 | $ | 892,952 | $ | 884,606 | |||||
| Business purpose, not secured by real estate | 975,852 | 963,641 | 919,720 | 927,631 | 913,115 | ||||||||||
| Owner occupied commercial real estate | |||||||||||||||
| - Permanent | 572,686 | 572,103 | 563,963 | 566,732 | 577,092 | ||||||||||
| - Construction / development | 36,451 | 38,546 | 36,631 | 28,927 | 27,003 | ||||||||||
| Leasing | 2,670 | 3,330 | 4,685 | 5,796 | 7,125 | ||||||||||
| Total commercial & industrial loans and leases | 2,467,072 | 2,441,904 | 2,420,027 | 2,422,038 | 2,408,941 | ||||||||||
| Commercial real estate | |||||||||||||||
| Non-owner occupied | |||||||||||||||
| - Permanent | 874,570 | 878,499 | 855,524 | 798,106 | 818,564 | ||||||||||
| - Construction / development | 140,751 | 151,697 | 156,064 | 168,537 | 171,063 | ||||||||||
| Total commercial real estate | 1,015,321 | 1,030,196 | 1,011,588 | 966,643 | 989,627 | ||||||||||
| Consumer loans | |||||||||||||||
| Residential mortgage (personal purpose) | |||||||||||||||
| Permanent | 688,171 | 686,974 | 704,655 | 709,342 | 719,578 | ||||||||||
| Construction | 6,806 | 7,835 | 5,667 | 7,606 | 5,909 | ||||||||||
| Total residential mortgages | 694,977 | 694,809 | 710,322 | 716,948 | 725,487 | ||||||||||
| Home equity loans and direct installment loans | 291,383 | 315,419 | 337,242 | 362,808 | 388,173 | ||||||||||
| Home equity lines of credit | 452,599 | 421,897 | 410,316 | 394,386 | 367,127 | ||||||||||
| Total home equity lines and loans | 743,982 | 737,316 | 747,558 | 757,194 | 755,300 | ||||||||||
| Private banking credit lines | 107,398 | 114,667 | 121,296 | 112,011 | 119,850 | ||||||||||
| Indirect vehicle loans and other | 165,109 | 165,855 | 165,094 | 169,297 | 170,869 | ||||||||||
| All other consumer loans | 272,507 | 280,522 | 286,390 | 281,308 | 290,719 | ||||||||||
| Total consumer loans | 1,711,466 | 1,712,647 | 1,744,270 | 1,755,450 | 1,771,506 | ||||||||||
| Loans and leases | 5,193,859 | 5,184,747 | 5,175,885 | 5,144,131 | 5,170,074 | ||||||||||
| Loans held-for-sale | 16,908 | 16,909 | 12,216 | 17,144 | 8,852 | ||||||||||
| Total loans and leases | $ | 5,210,767 | $ | 5,201,656 | $ | 5,188,101 | $ | 5,161,275 | $ | 5,178,926 | |||||
| Deposit composition: | |||||||||||||||
| Savings | $ | 497,640 | $ | 495,191 | $ | 454,003 | $ | 451,767 | $ | 464,055 | |||||
| NOW accounts | 1,317,399 | 1,294,591 | 1,293,148 | 1,311,819 | 1,158,161 | ||||||||||
| Money market accounts | 1,641,947 | 1,698,427 | 1,686,909 | 1,651,185 | 1,631,779 | ||||||||||
| CDs less than $100k | 1,063,688 | 1,089,601 | 1,138,908 | 1,213,798 | 1,261,026 | ||||||||||
| CDs $100k or greater | 421,103 | 426,548 | 438,148 | 531,111 | 589,329 | ||||||||||
| Total interest bearing deposits | 4,941,777 | 5,004,358 | 5,011,116 | 5,159,680 | 5,104,350 | ||||||||||
| Non-interest bearing deposits | 903,766 | 884,025 | 863,703 | 833,311 | 839,811 | ||||||||||
| Total deposits | $ | 5,845,543 | $ | 5,888,383 | $ | 5,874,819 | $ | 5,992,991 | $ | 5,944,161 | |||||
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | ||||||||||||||||||||||||||||||||||||||||||
| Unaudited, dollars in thousands except share and per share data | ||||||||||||||||||||||||||||||||||||||||||
| Quarterly, as of | Six Months, as of | |||||||||||||||||||||||||||||||||||||||||
| 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | 6/30/2012 | 6/30/2011 | ||||||||||||||||||||||||||||||||||||
| Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | Avg Bal | Yield | |||||||||||||||||||||||||||||
| Total loans* | $ | 5,196,803 | 4.78 | % | $ | 5,179,220 | 4.89 | % | $ | 5,149,546 | 4.99 | % | $ | 5,122,557 | 5.15 | % | $ | 5,228,365 | 5.24 | % | $ | 5,188,012 | 4.83 | % | $ | 5,269,556 | 5.29 | % | ||||||||||||||
| Investment securities* | 2,319,392 | 3.93 | % | 2,318,109 | 4.02 | % | 2,355,178 | 3.97 | % | 2,287,630 | 4.21 | % | 2,258,355 | 4.32 | % | 2,318,751 | 3.98 | % | 2,251,921 | 4.35 | % | |||||||||||||||||||||
| Interest earning deposits | 334,935 | 0.24 | % | 278,140 | 0.19 | % | 390,228 | 0.26 | % | 543,410 | 0.24 | % | 467,157 | 0.20 | % | 306,537 | 0.22 | % | 487,806 | 0.21 | % | |||||||||||||||||||||
| Total earning assets | 7,851,130 | 4.34 | % | 7,775,469 | 4.46 | % | 7,894,952 | 4.45 | % | 7,953,597 | 4.54 | % | 7,953,877 | 4.68 | % | 7,813,300 | 4.40 | % | 8,009,283 | 4.72 | % | |||||||||||||||||||||
| Total assets | 8,473,164 | 8,397,381 | 8,525,271 | 8,588,269 | 8,599,923 | 8,435,272 | 8,650,505 | |||||||||||||||||||||||||||||||||||
| Savings | 494,800 | 0.12 | % | 471,562 | 0.13 | % | 454,688 | 0.15 | % | 456,271 | 0.18 | % | 462,870 | 0.18 | % | 483,181 | 0.13 | % | 452,905 | 0.19 | % | |||||||||||||||||||||
| NOW accounts | 1,343,961 | 0.15 | % | 1,238,704 | 0.15 | % | 1,269,670 | 0.17 | % | 1,211,663 | 0.18 | % | 1,188,644 | 0.22 | % | 1,291,332 | 0.15 | % | 1,168,927 | 0.22 | % | |||||||||||||||||||||
| Money market accounts | 1,664,315 | 0.37 | % | 1,679,232 | 0.40 | % | 1,669,090 | 0.44 | % | 1,647,975 | 0.59 | % | 1,638,733 | 0.60 | % | 1,671,773 | 0.38 | % | 1,647,348 | 0.59 | % | |||||||||||||||||||||
| CDs | 1,499,016 | 1.27 | % | 1,542,539 | 1.31 | % | 1,668,098 | 1.36 | % | 1,798,414 | 1.47 | % | 1,857,969 | 1.66 | % | 1,520,777 | 1.29 | % | 1,873,435 | 1.71 | % | |||||||||||||||||||||
| Total interest bearing deposits | 5,002,092 | 0.55 | % | 4,932,037 | 0.59 | % | 5,061,546 | 0.65 | % | 5,114,323 | 0.77 | % | 5,148,216 | 0.85 | % | 4,967,063 | 0.57 | % | 5,142,615 | 0.88 | % | |||||||||||||||||||||
| Non-interest bearing deposits | 891,739 | 852,730 | 835,699 | 837,953 | 837,635 | 872,234 | 825,736 | |||||||||||||||||||||||||||||||||||
| Total deposits | 5,893,831 | 0.47 | % | 5,784,767 | 0.51 | % | 5,897,245 | 0.56 | % | 5,952,276 | 0.66 | % | 5,985,851 | 0.74 | % | 5,839,297 | 0.49 | % | 5,968,351 | 0.76 | % | |||||||||||||||||||||
| Customer repurchase agreements | 525,142 | 0.42 | % | 524,575 | 0.42 | % | 514,961 | 0.43 | % | 512,847 | 0.46 | % | 522,147 | 0.50 | % | 524,859 | 0.42 | % | 534,057 | 0.51 | % | |||||||||||||||||||||
| Structured repurchase agreements | 85,000 | 4.33 | % | 85,000 | 4.33 | % | 128,968 | 4.05 | % | 163,098 | 4.13 | % | 165,000 | 4.13 | % | 85,000 | 4.33 | % | 165,000 | 4.14 | % | |||||||||||||||||||||
| Short-term borrowings | - | 0.00 | % | - | 0.00 | % | 6,638 | 0.00 | % | 6,732 | 0.00 | % | 6,713 | 0.00 | % | - | 0.00 | % | 6,781 | 0.00 | % | |||||||||||||||||||||
| Federal Home Loan Bank advances | 575,725 | 4.54 | % | 615,983 | 4.55 | % | 616,411 | 4.50 | % | 623,713 | 4.50 | % | 627,525 | 4.50 | % | 595,854 | 4.55 | % | 639,301 | 4.50 | % | |||||||||||||||||||||
| Subordinated debentures | 143,683 | 5.20 | % | 145,274 | 5.18 | % | 143,800 | 5.60 | % | 143,266 | 6.63 | % | 142,836 | 6.70 | % | 144,479 | 5.19 | % | 142,808 | 6.72 | % | |||||||||||||||||||||
| Total deposits and borrowings | 7,223,381 | 0.93 | % | 7,155,599 | 0.99 | % | 7,308,023 | 1.04 | % | 7,401,932 | 1.16 | % | 7,450,072 | 1.22 | % | 7,189,489 | 0.96 | % | 7,456,298 | 1.25 | % | |||||||||||||||||||||
| Total interest bearing liabilities | $ | 6,331,642 | 1.06 | % | $ | 6,302,869 | 1.12 | % | $ | 6,472,324 | 1.17 | % | $ | 6,563,979 | 1.31 | % | $ | 6,612,437 | 1.38 | % | $ | 6,317,255 | 1.09 | % | 6,630,562 | 1.40 | % | |||||||||||||||
| Net interest margin (FTE) | 3.48 | % | 3.55 | % | 3.49 | % | 3.46 | % | 3.53 | % | 3.52 | % | 3.56 | % | ||||||||||||||||||||||||||||
| Wealth assets: | ||||||||||||||||||||||||||||||||||||||||||
| Assets under administration | $ | 4,361,134 | $ | 4,382,922 | $ | 4,197,612 | $ | 4,067,918 | $ | 4,364,447 | ||||||||||||||||||||||||||||||||
| Assets under management | 2,284,489 | 2,269,351 | 2,141,737 | 2,118,076 | 2,247,042 | |||||||||||||||||||||||||||||||||||||
| (included above) | ||||||||||||||||||||||||||||||||||||||||||
| *Fully taxable equivalent ("FTE") basis, using a 35% effective tax rate. | ||||||||||||||||||||||||||||||||||||||||||
| Financial Update for National Penn Bancshares, Inc. (NPBC) for 6/30/2012 | ||||||||||
| Unaudited | ||||||||||
| Quarterly, as of | ||||||||||
| 6/30/2012 | 3/31/2012 | 12/31/2011 | 9/30/2011 | 6/30/2011 | ||||||
| STATES OF OPERATION AND BANKING OFFICES | ||||||||||
| BY STATE (LATEST AVAILABLE DATA) | ||||||||||
|
PA |
||||||||||
| Total number of retail branch offices | 120 | 120 | 121 | 122 | 122 | |||||
| Total number of insured subsidiaries | ||||||||||
| (Bank & Thrift subsidiaries) | 1 | 1 | 1 | 1 | 1 | |||||
| Total number of ATMs | 122 | 122 | 128 | 129 | 131 | |||||
|
|
||||||||||
|
MD |
||||||||||
| Total number of retail branch offices | 1 | 1 | 1 | 1 | 1 | |||||
| Total number of insured subsidiaries | ||||||||||
| (Bank & Thrift subsidiaries) | - | - | - | - | - | |||||
| Total number of ATMs | 1 | 1 | 1 | 1 | 1 | |||||
|
|
||||||||||
|
TOTAL |
||||||||||
| Total number of retail branch offices | 121 | 121 | 122 | 123 | 123 | |||||
| Total number of insured subsidiaries | ||||||||||
| (Bank & Thrift subsidiaries) | 1 | 1 | 1 | 1 | 1 | |||||
| Total number of ATMs | 123 | 123 | 129 | 130 | 132 | |||||
| EOP employees (full-time equivalent) | 1,690 | 1,681 | 1,688 | 1,683 | 1,700 | |||||