National Penn Bancshares Inc. said Friday that third quarter earnings more than doubled from a year earlier, to $24.8 million, after the company recorded no loan-loss provision.
Net income at the Boyertown, Pa., company rose 7% from the second quarter and jumped 140% from a year earlier. The company's provision was $3 million in the second quarter and $20 million a year earlier.
The $8.6 billion-asset company said it did not set aside funds in its provision because of a decline in nonperforming assets, net chargeoffs and classified loans. Nonperforming assets fell 8% from the second quarter and 27% from a year earlier, to $74.8 million.
The low interest-rate environment continued to pressure net interest income, which fell less than 1% from the second quarter and nearly 5% from a year earlier, to $64.4 million.
Still, National Penn said its higher earnings from the third quarter will allow it to increase its cash dividend for the fourth quarter by a penny, to 4 cents a share. The company is well-capitalized with a total risk-based capital ratio of 18.1% at Sept. 30.
