Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

National Penn Bancshares, Inc. (NASDAQ:NPBC)

Q3 2010 Earnings Conference Call

October 28, 2010 1 PM ET

Executives

Scott Fainor – President and CEO

Mike Hughes – EVP and CFO

Sandy Bodnyk – EVP and Chief Risk Officer

Analysts

Damon Delmonte – Keefe Bruyette & Woods

David Darst – Guggenheim Securities LLC

Mac Hodgson – SunTrust

Mike Shafir – Sterne Agee

Christopher Marinac – FIG Partners

Andy Stapp – B. Riley

Thomas Frick – Boenning & Scattergood

Operator

Good afternoon everyone and welcome to National Penn Bancshares Q3 2010 earnings call. Please note this call is being recorded. All callers will be in a listen only mode during the prepared remarks. At the end of the prepared remarks there will be a live question-and-answer session with analysts.

This call and the accompanying presentation slides located on National Penn’s Investor Relations website at www.nationalpennbancshares.com will be archived on the site following this call. A transcript of today’s call and the slides will also be furnished on FCC form 8-K. National Penn’s earnings release was furnished earlier today to the FCC on a form 8-K and is also on the investor relations website.

This presentation may contain forward-looking information that is intended to be covered by the safe harbor provided by the private securities litigation reform act of 1995. Please take a moment to review the safe harbor slide of the presentation.

It is now my pleasure to turn the conference over to National Penn’s President and CEO, Scott Fainor.

Scott Fainor

Thank you and thank you to everyone joining our Q3 earnings web cast conference call today. I’m joined by Mike Hughes our Chief Financial Officer and Sandy Bodnyk our Chief Risk Officer who will be giving more in depth analysis as part of this web cast presentation today.

I’m very pleased to report positive earnings momentum and results for our Q3. Our focused efforts have translated into favorable asset quality trends in all categories. Also, we were excited to report that the Warburg Pincus initial investment of $63.3 million dollars was received on October 20 with the remaining portion of the total $150 million dollar investment being made after the receipt of regulatory approvals which we expect to be completed the late Q4. I would like to now turn this presentation over to Mike Hughes.

Mike Hughes

Thank you Scott. Referring to slide number three, we reported earnings of $.08 per share for the quarter. The good news is there’s a lack of reconciling items between reported and core earnings. The only item is the exclusion of the mark on our own trust preferred which increased in price from $23.26 to $24.29 in the quarter.

The trust preferred is thinly traded but may be impacted by interest rates and indeed the Warburg Pincus investment. Core earnings per share is $.09 per share for the quarter.

Referring to slide four, the contraction in a net interest (inaudible) is primarily due to soft loan demand and continued de-risking of the balance sheet. Approximately 40% of the decline in average loans was due to management of classified credits.

Deposit pricing impact continues but had a lower relative benefit than previous quarters. We have taken actions to mitigate future margin pressure including further reductions in deposit rates instituted at the end of Q3 and some initiatives to reduce liquidity. The margin, however, will be driven to a great extent by loan demand.

We began in Q3 a greatly enhanced business development calling program focused on enhancing market share in this environment of lower demand. It should also be noted the percentage margin would be impacted in Q4 by two to three basis points by the Warburg Pincus investment.

As you look at slide nine, operating expenses remained well controlled and the efficiency ratio has been consistent over a longer period of time.

On slide six, core nine interest income favorably impacted by mortgage loan originations driven by the refinancing in this rate environment. Also reflected in the quarter, $300,000 of OTPI approximately related to the bank equity portfolio. And the equity method of accounting for a limit of partnership interest we have, reduced quarter to quarter by about $600,000.

On slide eight or slide seven shows the strong capital ratio’s pro forma for the actions that we’ve taken. We’ve discussed before that the vestiture of Christiania, which is anticipated to close in late Q4 again subject to regulatory approval. And then the investment by Warburg Pincus as Scott mentioned, $63 million currently received in the month of October with the remainder subject to regulatory approval in Q4.

So if you look at this slide, you can look at these ratios as of 9/30 pro forma for both of those transactions and then illustrative for the potential repayment of TARP with a comparison to our peer group capital ratios very strong and compared very favorably to the peer group.

On slide eight, those strong capital ratios are even more apparent when you look at the reserve coverages relative to our peers. If you look at non-performing loans at 1.67% compared to a peer group at (six thirty) of 3.36% relatively half the levels of our peer group.

Loan loss reserve and non-performing loans 163% versus our peer group of 60%. Look at net charge offs for the quarter have declined from $24.8 million in Q2 to $20.6 million in Q3 resulting in a decreased provision from $25 million in the second to $20 million in the third. And the loan marks reserve was maintained at previous quarter level.

I’ll now turn the presentation over the Sandy Bodnyk.

Sandy Bodnyk

Thank you Mike. As discussed, we have had continued improvement in asset quality. This is evidence on slide nine with the second quarter over quarter decline in classified credit. And equally importantly, the fact that classified loans have remained in a stable range based on a $6 billion dollar portfolio for five quarters now.

Next slide, Non-performing Loans and Charge Offs, depicts that the improvement is further evidence by our continuing decline in non-performing loans from $99 million dollars to $94 million dollars as well as ORE remaining stable in the $7.8 billion dollar range. Non-performing loans, as Mike said, the loans at 1.6%. Charge offs have improved quarter over quarter from 24.8% to 20.6% and now stand at 1.43%. These are all very good numbers in comparison to peers’ numbers.

The next slide is the slide we typically give you on loan risk profile. Very consistent in where the stress points in our portfolio have been. You’ll note that consistent with prior quarters of the CRE Construction portfolio which has decreased from year-end by more than $80 million dollars, now represents 6% of our portfolio. Yet 35% of its loans are classified, 10% non-performing, 14% in charge offs. (Inaudible) in the portfolio.

Classified credits in our commercial portfolio continue to be centered in contractor or service industry credits that are related to the construction industry.

Again, on the following slide, we give you a depiction of our geographic market region. You will see, again, that 76% of our non-performing assets, 86% of our gross charge offs have been created in our southeastern market region. Again, this is the region that enjoyed the greatest upswing during good economic times and also had the most stress during the down cycle of this economic period.

Scott, I’ll turn it over to you.

Scott Fainor

Thank you Sandy. Slide 13 outlines the positive momentum that’s going on at National Penn. The regional economies that we do business in remain soft, however, our banking teams are playing offense, focused on doing more business with our current customers and new perspective customers.

Our fundamentals remain strong. With our positive Q3 earnings results, favorable asset quality trends across all categories and our investment by Warburg Pincus, National Penn is clean, strong and efficient. And we’re focused on enhancing shareholder value.

I’d like to now open this discussion up with any questions.

Question-and-Answer Session

Operator

(Operator Instructions) All right, and our first question comes from the side of Damon Delmonte. Please go ahead, your line is open.

Damon Delmonte – Keefe Bruyette & Woods

Hi good afternoon everyone. How are you?

Scott Fainor

Hello Damon, how are you today?

Damon Delmonte – Keefe Bruyette & Woods

Great Scott thanks. Just wondering if you could give us an update, not with the- you know the Warburg Investment is partially underway, you have the first leg of the investment done, kind of what your view is on the repayment of TARP.

Scott Fainor

As we stated previously, we have a very good relationship with our regulators. The OCC at the primary bank level and the federal reserve at our holding company and we are working with our regulators at all times in developing our plan for how we will accelerate the repayment of TARP. We have no defined timeline that we’ve stated at this point in time and with the initial investment by Warburg now in our company, we’ll continue to work on the regulatory approvals to get the final installment of the Warburg Investment and we’ll keep working on accelerating TARP repayment. And as we know more we’ll communicate that.

Damon Delmonte – Keefe Bruyette & Woods

Okay, fair enough. Thank you. With regards to the mortgage banking income from this quarter, how does the pipeline look going into Q4? Do you think a level of similar to what we saw in Q3 would be sustainable?

Mike Hughes

I think the pipeline is fairly strong. I wouldn’t say it’s quite at the same level. And what we are now evaluating as you have some of this soft loan demand and the interest rate environment, we may actually portfolio some of that origination. So I would think probably more the Q2 level is where we would try to mange to, but probably a little bit higher than Q2.

Damon Delmonte – Keefe Bruyette & Woods

Okay, that’s all I have for now. Thank you.

Scott Fainor

Thank you Damon.

Operator

And our next question comes from David Darst. Go ahead, your line is open.

David Darst – Guggenheim Securities LLC

Good morning.

Scott Fainor

Good Morning David.

David Darst – Guggenheim Securities LLC

Scott could you just the declines in the C&I portfolio that we’ve seen, not just this quarter but maybe looking back over the course of the last 12 months it’s been about 20%.

Scott Fainor

I’ll just give you a couple- Do you have a follow on question to that?

David Darst – Guggenheim Securities LLC

I will separately.

Scott Fainor

Okay, on the C&I portfolio, as I have continued to visit with customers throughout all the markets that we serve, our C&I clients that are doing well have continued to reduce lines outstanding. They’ve continued to repay term debt and they’re being very cautious. They’re building cash reserves and they have tooled our banking teams, including myself, on these calls that they are very cautious around where the economy is going and they’re very cautious around healthcare reform, the financial reform that’s out there and where taxes might be. So our good credits within the C&I portfolio, which there are many, building cash, reducing debt and de-leveraging themselves.

Sandy, would you like to give some additional comments on C&I?

Sandy Bodnyk

No, I think because you described it, Scott. The soft market for reinvestment and capital spending is a key indicator of what has happened. Also you will note that as our classified loans strategy, there has been a reduction in certain watchless and classified assets that reflect a decline in all of our portfolios.

Scott Fainor

So certainly that loan volume decline is a function both of economic conditions undoubtedly, but National Penn, as you know, over the last 12 months has had an effort to de-risk the balance sheet. We talk about re-risking it in another manner; a more conservative manner and we are in that transition period. But if you look over the last three quarters, I think the de-risking of the balance sheet, the moving out classified assets have a lot to do with average loan balances.

David Darst – Guggenheim Securities LLC

Could you quantify the amount of clients that maybe have selectively left the bank in the C&I portfolio over the last 12 months.

Scott Fainor

I don’t have that number David. It’s very small and the reason is because we are still in a good position with a good reputation on being a strong C&I lender. In many of the markets that we serve, we are still looking at new C&I credits that are coming from other banking organizations because of our reputation. We still have a focus on manufacturing, we’ve got a strong focus in other areas that touch the C&I customer, but I think of the entire decline in loan balances for Q3 of roughly 40% of those declines were in either our charge offs or exit credit strategies of our classified loans. And many of them were in the C&I category. So it’s by our design to try to reduce problem assets.

Sandy Bodnyk

Scott, I would agree with that completely. We do talk to our regions about credit exits and that would be a very small number.

David Darst – Guggenheim Securities LLC

Okay, thanks. And, Mike, you mentioned the strategy to reduce liquidity. Would that be reducing, as well, higher cost CDs and maybe some FHLB advances that are at a higher cost?

Mike Hughes

Probably not the FHLB advances because pre-payment penalties look prohibitive at this time. We have reduced higher cost CDs. We will continue to do that. But just as a point of illustration, if you look at the fed reserve account, we have about $600 million at that- in that right now. About $150 million dollar increase in the quarter.

The alternative we had would be to contract the size of the bank and let some more deposits go, and not necessarily high cost deposits. But if you had contracted that by just $170 million, we would have kept the margin at 3.5%. So an art more than the science, want to keep the bank relatively the same size but some of the de-leveraging we will do on an ongoing basis.

In Q1 2011, we do have about $75 million of FHLB maturing in that quarter that has a relatively high rate. So Q1 of 2011 we see some benefit there and a way to de-lever and impact the margin favorably.

David Darst – Guggenheim Securities LLC

Okay, and then other than the margin adjustment related to Warburg Pincus investment, which I think you’ve referenced, are there any changes that we should expect from the sale of Christiana?

Scott Fainor

Nothing material, no. And that will close at the end of the quarter. But even on an ongoing basis, that will not have a material impact on the margin.

David Darst – Guggenheim Securities LLC

Okay, thank you.

Mike Hughes

Thank you David.

Operator

And our next question comes from the side of Mac Hodgson. Please go ahead, your line is open.

Mac Hodgson – SunTrust

Hey, good afternoon.

Mike Hughes

Hey Mac.

Scott Fainor

Hi Mac.

Mac Hodgson – SunTrust

Just kind of following up on that question. So I guess looking forward with a margin despite this slight decline related to the Warburg Pincus money, I’m assuming we should expect maybe the margin to come up somewhat as you deploy some of that liquidity into potentially portfolio on mortgages to repay some of that wholesome borrowings.

Mike Hughes

Yeah Mac, this is Mike. The tough part of predicting that is it is a function of loan demand to the greatest extent. So if we could have some successes on keeping the loan volumes relatively flat, we think we’ll keep that margin relatively in the same range. But as we talked about in Q3, we have taken some initiatives in Q4 where we have the opportunity to have some marginal credits refinanced out. We’ve taken that opportunity and the long term, we certainly believe that is the right answer. Short term in this rate environment will put a little pressure on the margin.

Mac Hodgson – SunTrust

Okay, great. And on capital, you know the pro forma capital ratios are really strong. When you think about how you want to manage and run the balance sheet long term, where would you feel comfortable taking, say the tier one common ratio down through just balance sheet growth or M&A?

Mike Hughes

Right. And I think it’s very tough to give you a number like that, but I tell you what we’ve talked about and I know we’ve talked with you about it, is de-risking this balance sheet. And when you look at loan loss reserve levels, you know, taking the good will impairment, putting the BOLI behind you, addressing the issues. I think when you look at the strength of this balance sheet and the capital levels, I’d put it up against a lot of others.

Now to your point- is there capital management opportunities longer term? There conceivably could be.

Scott Fainor

I think, Mac, too, adding to Mike’s point are that with the capital in a strong position where it is today and us having a continued improvement in reduction of problem assets and strong coverage ratios, our flexibility on how we deploy that is going to be to our advantage. And that’s why our teams are on the offense now. And it takes some time to get some momentum. But we have quality people out looking for business and it’s not just necessarily loan driven. It’s going to be driven across the entire franchise of banking, insurance investments and trust. So we’re trying to cross sell more and I think that flexibility on how we deploy it is going to be to our advantage.

Mac Hodgson – SunTrust

Okay, great. And on that, Scott, on the M&A front, what has to happen for the company to be in a position for M&A? Is it TARP repayment, is it also exiting the agreement with the OCC? And then what types of opportunities would the company be most interested in?

Scott Fainor

Well I think, let me take that in a couple pieces. First of all we have continued to focus National Penn to become more clean, strong and efficient as I’ve stated in my comments the last several quarters. In doing that we’re in a very strong position now from a capital liquidity stand point and now earnings. Earnings are back and we said we’re going to return this company to profitability and we’ve done that.

We have more work to be done on increasing profitability in our company and as we do that, the Warburg Pincus Investment, when it comes in full, we stated is going to help us to enhance our ability and accelerate our ability to repay TARP and to enhance our ability to get the MOU listed with all the work that our teams have done to exceed the regulatory expectations. So the focus is staying strong and focusing on TARP repayment and getting the MOU lifted at the appropriate times. And we hope that that time frame is accelerated.

Secondly, we’re a very good integrator of companies, as our history has shown. And over the course of the last year to 18 months, our technology and operations groups in the bank have just been strengthening themselves in regard to talented people, in regards to systems and technology deployment and in regards to the future of where the company wants to go.

I think we’re in a very strong position around acquisitions within our market and in contiguous counties and we’ll continue to evaluate those as appropriate but keep the main focus right now on TARP repayment and getting the MOU lifted in an accelerated timeframe and enhancing our position to do that.

Mac Hodgson – SunTrust

Okay, great. Thank you.

Operator

(Operator Instructions) We will take our next question from Mike Shafir. Please go ahead, your line is open.

Mike Shafir – Sterne Agee

Hey, good afternoon guys.

Scott Fainor

Hey Mike.

Mike Hughes

Hey Mike, how ya doing?

Mike Shafir – Sterne Agee

Doing well, thank you. I just had a couple of questions. As far as the Christiana going away, in terms of the wealth management income line, is that going to be affected at all in terms of Q1 in 2011 if that’s going to get closed at then of Q4?

Scott Fainor

The Christiana wealth management is about a $6.5 million contribution at the revenue line, so no impact that would be substantial in Q4, but ongoing, yes. When you look at Christiana though and you look at both the revenue side as well as the contribution, we think it would accrete the efficiency ratio and as we’ve talked about previously being neutral to slightly accretive from an earnings per share standpoint.

Mike Shafir – Sterne Agee

Okay, and then as we think about the margin, you said a couple basis points of decline or impact as a function of the Pincus Warburg money coming or I’m sorry, the Warburg money coming in and then once the money comes in, if the loan growth kind of remains stagnant which it seems like it’s been troublesome for the whole industry, wouldn’t that actually put pressure on your margin as you’re deploying that in kind of lower yielding securities or keeping it in very low yields in a cash instrument?

Scott Fainor

It certainly would. And as we talked about when we were successful in negotiating that with Warburg, our hope is that TARP repayment is in the near term and we can utilize those funds to repay TARP at some point in time in a reasonable time frame. But your point is well taken. Up until that point, the increased liquidity, because we would keep it short, would impact the margin.

Mike Shafir – Sterne Agee

And I also just kind of- what kind of tax rate should we be thinking about moving forward?

Mike Hughes

Well as we talked before, I think the easiest way to get to that tax rate is model what you think pre-tax income is, take $40 million to $50 million and use maybe 45 as an average as tax free income, both loan and municipal income and then back into it at a marginal tax rate.

Mike Shafir – Sterne Agee

Okay. And then, just one other question, the reserves are very high at the bank, you know, you guys are at a 272 now reserves to loans. As we start to think about an environment where the world is better, per say, and credit is better, what are you guys thinking in terms of a more normalized kind of low loss reserve to loans ratio. And then on that note, as things start to improve, are we going to see a decent amount of reserve release?

Mike Hughes

Well as we’ve gone through this process we’ve certainly talked about how we’ve made the loan loss reserve more formulaic. And I think really the driver of the level of reserves is classified assets. As we see those come down, the required provisioning will be less. And as economic conditions improve over time, we will get to a point where we are releasing reserves.

And I think, Mike, that the answer is it’s a function of classified assets. And when we look at that, we don’t look at reserves to loans because when you look across the board, depending upon what asset quality is, what’s adequate differs bank to bank. But level of classified loans will drive the reserve levels. You’ve seen that to the last couple quarters we’ve kept the reserve relatively flat. We’ve had some modest increase in classified assets. And as we see them trend down at a greater rate, we could have a release of reserves.

Scott Fainor

Mike, I just want to add to Mike’s comments because he’s right on. But just as I stated with the deployment of capital that we would put ourselves into more of an advantage by having strong capital base within our markets. It’s the same thing when we end up being in a very strong position around our reserve and coverage ratios. It gives us more of an opportunity to make decisions around the way that we’re going to exit credit and improve our credit quality. And we think that as credit quality improves, just as Mike stated, that it’s going to give us an advantage in the marketplace towards us looking at increasing our earnings profile in future quarters.

Mike Shafir – Sterne Agee

Okay, and then just one last one. So all the money in terms of the capital infusion will be in by Q4 and it looks like the share account is going to go to somewhere right around $150 million?

Mike Hughes

That’s correct.

Mike Shafir – Sterne Agee

Okay, thanks a lot guys, I really appreciate that detail.

Scott Fainor

You’re welcome.

Mike Hughes

Thanks Mike.

Operator

And our next question comes from the side of Christopher Marinac. Please go ahead, your line is open.

Christopher Marinac – FIG Partners

Thanks, good afternoon.

Scott Fainor

Hey Chris.

Christopher Marinac – FIG Partners

I don’t know if you mentioned this earlier on the call, but what portion of the other expense is related to foreclosed properties with us right down to maintenance related items?

Scott Fainor

Chris, we’re going to have to come back to you with that number. It’s in the hundreds of thousands rather than the millions.

Christopher Marinac – FIG Partners

Okay, that’s fine. And then Sandy, you mentioned about just talking about some of the contractors and other commercial borrowers help, I’m just kind of curious in general from (inaudible) borrowers, are you seeing cash flow for their P&L is better today than you would have perhaps seen six or nine months ago? I’m just kind of curious to the general…

Sandy Bodnyk

Yes, as we’ve told you in the past, we have a pretty robust watch list type of process that we use and we work not only with the criticized and classified assets but we also work with our house rated credits on a weekly basis getting through the whole portfolio through the course of the month. And we are very, very encouraged by the signs that we’re seeing over the last, I would say, 60 to 90 days in terms of our company stabilizing, in terms of them adding to their liquidity and positioning themselves for some rebound in the market.

Christopher Marinac – FIG Partners

Great. Now there’s one quick one for Scott. Scott, do you have any sense of, I guess, sort of how smaller banks in Pennsylvania and also in your footprint are sort of feeling from examiners and how regulators are treating them? I’m just kind of curious if there’s more pressure to force consolidation among smaller players in the next year.

Scott Fainor

I think all banks, large and small, are continuing to feel pressure. I think once again it’s going to be- do banks whether they’re community, regional or larger, do they have the ability to absorb the additional cost of regulatory reform and are they in a position with their professional teams to be able to move quickly around regulatory reform so that they- that once again they can do new business while also handling current customers and also being very efficient when they’re working with their regulatory teams.

So there’s going to be higher costs, there’s going to be more compliance and regulatory teams inside the banks of our own staff and I think that that’s going to apply pressure across the board. We’re in a very good position in National Penn to deal with regulatory reform and I think that the additional process or processes that we’ve put in place around credit administration, around loan review, around our special assets teams, have paid us some big benefits in our ability to reduce our problem loans which has turned into then higher levels of profitability like we’ve reported today. So we’re navigating it extremely well.

Christopher Marinac – FIG Partners

Great. Thanks very much.

Operator

Our next question comes from the side of Andy Stapp. Please go ahead, your line is open.

Andy Stapp – B. Riley

Good afternoon.

Scott Fainor

Hello Andy.

Andy Stapp – B. Riley

Is it fair to say that other than the impact of the second phase of the capital injection and the TARP repayment, securities will be flat to down?

Scott Fainor

Yeah, we believe that security will be relatively comparable.

Andy Stapp – B. Riley

Okay, and do you have the duration of the portfolios? Is it 2.7 years, is that correct?

Scott Fainor

The duration of the total portfolio is a little longer than that; it’s a little over four years.

Andy Stapp – B. Riley

Okay, and do you know approximately what the pay downs in the security portfolio were in Q3?

Scott Fainor

We do know what they were. We’re looking for that Andy, I don’t have it here in front of me; we will come back to you on that.

Andy Stapp – B. Riley

Okay.

Scott Fainor

All right.

Andy Stapp – B. Riley

Thank you.

Scott Fainor

Thanks Andy.

Operator

And our next question comes from the side of Thomas Frick. Please go ahead, your line is open.

Thomas Frick – Boenning & Scattergood

Good afternoon everyone. On last quarters call you stated impact from Reg E would be roughly $9 million annualized, is that still a good target for you guys and what have you seen thus far?

Mike Hughes

We weren’t talking the impact, we said that the total revenue, related to Reg E that would come under that regulation was $9 million on an annual basis.

Thomas Frick – Boenning & Scattergood

Okay.

Mike Hughes

What we have seen so far is what we anticipated is that the opt in rate for the customer who uses that repetitively is pretty high; above 80% and on a quarter to quarter basis the initial impact is relatively insignificant in the hundreds of thousand as opposed to millions of dollars.

Scott Fainor

Thomas, the other thing that we said to add to Mike’s point is that we have been working knowing that there would be an impact on Reg E. we’ve also been working since the beginning of the year on elimination grand fathered products that have come to National Penn through all of the acquisitions we’ve done and we’ve always assumed that we could offset any reduction in fee income by the way that we’ve eliminated grandfather products and assimilated pricing and fee income on those products as we go forward.

Thomas Frick – Boenning & Scattergood

Okay, that’s very helpful. Thanks, that’s all I had.

Scott Fainor

Thank you.

Operator

It appears that we have no further questions at this time. I will now hand the call back to Mr. Fainor for any closing remarks.

Scott Fainor

Well I want to thank everyone for joining our Q3 web cast call and I want to thank everyone also for their participation in the questions and answers session today. Thank you for your participation, we look forward to talking with you again and have a great week.

Operator

This concludes today’s presentation, you may disconnect at any time. Have a wonderful afternoon.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY’S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY’S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY’S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: National Penn Bancshares CEO Discusses Q3 2010 Results – Earnings Call Transcript
This Transcript
All Transcripts