UPDATE 2-National Penn posts wider Q4 loss, shares tank

* Names Scott Fainor as CEO

* Q4 adj loss/shr $0.04 vs est $0.00

* Provision jumps 154 pct

* Shares fall as much as 16 pct

* Q4 goodwill impairment charge $275 mln
(Adds details, analyst comment, share movement)

By Archana Shankar

BANGALORE, Jan 28 (BestGrowthStock) – National Penn Bancshares Inc
(NPBC.O: ) posted a wider-than-expected fourth-quarter loss, hurt
by higher provision for loan losses and impairment charges, and
said it named a new chief executive.

National Penn said Scott Fainor took the top job from
retiring CEO Glenn Moyer on Wednesday.

Shares of the Boyertown, Pennsylvania-based company dropped
as much as 16 percent to $6.02, before paring some losses to
trade down 12 percent at $6.30 Thursday morning on Nasdaq.

For the fourth quarter, the bank holding company said net
loss applicable to common share holders stood at $283.3
million, or $2.25 a share, compared with a loss of $36.2
million, or 45 cents a share, last year.

Excluding items, the company posted a loss of 4 cents per
share, the company said. On the same basis, analysts on average
expected National Penn to break even, according to Thomson
Reuters I/B/E/S.

National Penn took a goodwill impairment charge of $275
million in the quarter, and provision for loan losses more than
doubled to $47 million, the company said in a statement.

“Provision came out much higher than expected and goodwill
was somewhat of a surprise, but I think they are on their path
to a slow and steady recovery,” analyst Anthony Polini of
Raymond James told Reuters.

The company also said it entered into an informal agreement
with regulators on Wednesday, to achieve a Tier 1 leverage
ratio, which stood at 7.86 percent, of at least 8.0 percent by
March 31, 2010 and maintain it.

Allowance for loan losses stood at $146.3 million, up from
$125.5 million in the prior quarter.

“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,” Chief Executive Scott Fainor said
in a statement.

Polini expects National Penn to have a modest profit in the
next quarter and credit quality to see an improvement in the
second half of the year.

Net interest margin– which is the difference between what
the bank earns on loans and pays on deposits, a measure of
profitability — increased marginally to 3.29 percent from 3.24
percent sequentially.

Stock Today

(Reporting by Archana Shankar in Bangalore; Editing by
Unnikrishnan Nair, Maju Samuel)

UPDATE 2-National Penn posts wider Q4 loss, shares tank