National Penn Bancshares (NPBC) in Boyertown, Pa., will take a fourth-quarter charge as it closes branches and prepares to move its headquarters.
The $8.4 billion-asset company said Friday that it will record a charge of 3 cents a share due to the consolidation of offices and other expense-reduction efforts. National Penn did not say how many branches it would close, and it did not elaborate on the proposed expense reductions.
National Penn is closing branches because "the current interest rate environment requires us to reduce expenses," Chief Executive Scott Fainor said in a press release. "We expect these expense reductions to offset this charge in a short time frame."
The company also said it would buy back up to 5% of its shares outstanding next year.
National Penn said last year that it would move its headquarters to Allentown, Pa., from Boyertown. On an investor call in October, Chief Financial Officer Michael Hughes said the company would record a charge tied to the move either in the fourth quarter of this year or the first quarter of 2014.
National Penn's overhead costs were $53.6 million in the third quarter, a slight increase from a year earlier, because of to increased compensation and occupancy expenses. National Penn has 120 branches.