National Penn Bancshares Inc. (NPBC, Financial) filed Quarterly Report for the period ended 2010-03-31.
National Penn Bancshares Inc. has a market cap of $852.5 million; its shares were traded at around $6.77 with and P/S ratio of 2.03. The dividend yield of National Penn Bancshares Inc. stocks is 0.59%.NPBC is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Richard Pzena of Pzena Investment Management LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors.
At March 31, 2010, classified loans totaled $532 million, an increase of $30.6 million, or 6.1%, from $501 million at December 31, 2009. The classified loan increase was primarily attributed to three credits aggregating approximately $30 million, related to the construction and development industry. Delinquent loans also trended slightly upward to $29.2 million or 0.49% of total loans and leases at March 31, 2010 compared to 0.42% or $25.5 million at December 31, 2009. Delinquent loans, despite the increase, have remained stable over the past five quarters, within an eight basis point band as a percent of total loans.
Non-performing loans declined $5.4 million, or 4.3% to $120.4 million at March 31, 2010 as compared to $125.8 million at December 31, 2009, primarily due to continued focus on loan workout. When compared to total loans, nonperforming loans were 2.03% at March 31, 2010, compared to 2.09% at December 31, 2009. Non-performing assets also declined during the first quarter to $122.7 million or 2.08% of total loans and leases compared to $130.0 million at December 31, 2009 or 2.16% of total loans and leases. Sales of OREO and other repossessed assets, in addition to the decrease in non-performing loans, contributed to the overall decline of non-performing assets. These decreases were offset by an increase to restructured loans of $6.1 million to $6.7 million at March 31, 2010 from $0.6 million at December 31, 2009 due to the Company s effort to assist distressed residential customers who were in danger of losing their homes to foreclosure.
Overall, net charge-offs increased $9.6 million to $24.9 million for the three months ended March 31, 2010 compared to the $15.3 million net charge-offs during the same period in 2009. Net charge-offs declined $1.3 million compared to $26.2 million recorded during the three months ended December 31, 2009.
The Company continued to experience deterioration of certain credit quality indicators during the first quarter of 2010, but the pace of deterioration appears to be slowing. Classified loans increased during the period, as the Company continues to proactively identify and resolve problem assets. However, the level of non-performing assets and loans declined from December 31, 2009 to March 31, 2010, and charge-offs declined for the three months ended March 31, 2010 when compared to the three months ended December 31, 2009. Charge-offs increased compared to March 31, 2009 due primarily to deteriorating economic conditions. As economic uncertainty persists and credit quality indicators are mixed, the Company increased the allowance to $153.9 million from $146.2 million, which resulted in a provision for loan and lease losses for the three months ended March 31, 2010 of $32.5 million.
The increase to the allowance was recorded primarily in allocated reserves, which increased by $3.1 million. The allocated reserves are the largest component of the allowance and comprised 86% of the allowance at March 31, 2010. In addition, the unallocated reserve was increased to $6.6 million at March 31, 2010 from $3.8 million at December 31, 2009 to recognize volatility in the economy, historical losses, and uncertainty in the migration of loans. Despite the increase during the first quarter of 2010, the unallocated reserve comprised only 4.2% of the total allowance. The unallocated reserve is necessary to address the increasing level of uncertainty which results from mixed trends in credit quality indicators.
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National Penn Bancshares Inc. has a market cap of $852.5 million; its shares were traded at around $6.77 with and P/S ratio of 2.03. The dividend yield of National Penn Bancshares Inc. stocks is 0.59%.NPBC is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Richard Pzena of Pzena Investment Management LLC, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Loans and leases, net of the allowance decreased $105 million, or 1.8%, to $5.8 billion at March 31, 2010 from $5.9 billion at December 31, 2009. The decrease in loans was primarily the result of continued soft loan demand from economic uncertainty in the markets served by the Company in addition to an increase in the allowance for loan and lease losses to $153.9 million at March 31, 2010 from $146.3 million at December 31, 2010.At March 31, 2010, classified loans totaled $532 million, an increase of $30.6 million, or 6.1%, from $501 million at December 31, 2009. The classified loan increase was primarily attributed to three credits aggregating approximately $30 million, related to the construction and development industry. Delinquent loans also trended slightly upward to $29.2 million or 0.49% of total loans and leases at March 31, 2010 compared to 0.42% or $25.5 million at December 31, 2009. Delinquent loans, despite the increase, have remained stable over the past five quarters, within an eight basis point band as a percent of total loans.
Non-performing loans declined $5.4 million, or 4.3% to $120.4 million at March 31, 2010 as compared to $125.8 million at December 31, 2009, primarily due to continued focus on loan workout. When compared to total loans, nonperforming loans were 2.03% at March 31, 2010, compared to 2.09% at December 31, 2009. Non-performing assets also declined during the first quarter to $122.7 million or 2.08% of total loans and leases compared to $130.0 million at December 31, 2009 or 2.16% of total loans and leases. Sales of OREO and other repossessed assets, in addition to the decrease in non-performing loans, contributed to the overall decline of non-performing assets. These decreases were offset by an increase to restructured loans of $6.1 million to $6.7 million at March 31, 2010 from $0.6 million at December 31, 2009 due to the Company s effort to assist distressed residential customers who were in danger of losing their homes to foreclosure.
Overall, net charge-offs increased $9.6 million to $24.9 million for the three months ended March 31, 2010 compared to the $15.3 million net charge-offs during the same period in 2009. Net charge-offs declined $1.3 million compared to $26.2 million recorded during the three months ended December 31, 2009.
The Company continued to experience deterioration of certain credit quality indicators during the first quarter of 2010, but the pace of deterioration appears to be slowing. Classified loans increased during the period, as the Company continues to proactively identify and resolve problem assets. However, the level of non-performing assets and loans declined from December 31, 2009 to March 31, 2010, and charge-offs declined for the three months ended March 31, 2010 when compared to the three months ended December 31, 2009. Charge-offs increased compared to March 31, 2009 due primarily to deteriorating economic conditions. As economic uncertainty persists and credit quality indicators are mixed, the Company increased the allowance to $153.9 million from $146.2 million, which resulted in a provision for loan and lease losses for the three months ended March 31, 2010 of $32.5 million.
The increase to the allowance was recorded primarily in allocated reserves, which increased by $3.1 million. The allocated reserves are the largest component of the allowance and comprised 86% of the allowance at March 31, 2010. In addition, the unallocated reserve was increased to $6.6 million at March 31, 2010 from $3.8 million at December 31, 2009 to recognize volatility in the economy, historical losses, and uncertainty in the migration of loans. Despite the increase during the first quarter of 2010, the unallocated reserve comprised only 4.2% of the total allowance. The unallocated reserve is necessary to address the increasing level of uncertainty which results from mixed trends in credit quality indicators.
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