During the same quarter where it cut the ribbon on its new Allentown headquarters and acquired TF Financial Corp., National Penn Bancshares saw an increase in income.
The company reported net income of $26.2 million, or 19 cents per diluted share, for the second quarter of 2014. Earnings per share increased 19 percent, or 3 cents per diluted share, compared to net income of $22.7 million, or 16 cents per diluted share in the prior quarter.
“The second quarter was another quarter of consistent, high-level performance,” said Scott V. Fainor, president and CEO of National Penn. “We maintained our net interest margin, our focus on controlling operating expenses and realized the benefit of improvement in fee income. The balance sheet remains very strong.”
Net interest income for the second quarter of 2014 was $63 million, compared to $62.3 million for the first quarter of 2014.
Noninterest income increased $2.9 million compared to the prior quarter. The growth in noninterest income for the second quarter included seasonal increases in banking fees, higher mortgage banking revenue, increased customer swap activity and a $0.9 million gain on sale of nonperforming loans.
“In addition to the results we achieved for the quarter, we completed our previously announced expense reduction initiatives,” Fainor said. “During the quarter, we were also very pleased to have signed a definitive agreement to acquire TF Financial Corp. The transaction allows us to leverage our capital base, accrete earnings per share and enhance franchise value.”