National Penn Bancshares (NPBC) Raises Over $70M Under Temporary Revisions to Dividend Reinvestment and Stock Buyback Plan

June 18, 2009 9:14 AM EDT

After the close of business yesterday, Glenn Moyer, President and CEO, and Scott Fainor, Senior Executive Vice President and COO, of National Penn Bancshares, Inc. (Nasdaq: NPBC) issued the following joint statement:

"In November 2008, as part of our overall capital strategy, we began offering our common stock at a ten percent price discount under our Dividend Reinvestment and Stock Purchase Plan. We were hoping to raise up to $75 million by December 31, 2009 through the optional cash contribution feature of this Plan. On June 12, 2009, we publicly announced on Form 8-K the discontinuation of this discounted purchase option and other temporary enhancements to this Plan. All optional cash contributions received and accepted for investment prior to the announced cut-off were processed for investment earlier today at the discounted price.

We are pleased to report that we raised a total of approximately $72.8 million in Tier 1 Capital in the form of common equity through the optional cash contribution feature of this Plan since November 2008. Over $52.6 million of this total capital amount was raised in this second quarter of 2009. We are particularly pleased that we achieved this capital raising goal well ahead of our original schedule. We believe this success reflects National Penn's favorable standing with the investment community based on the overall quality of our franchise in the mid-Atlantic region. We appreciate this expression of confidence in National Penn.

Today, our stock experienced high trading volume of approximately 8.29 million shares, closing at $3.60 per share, down $1.09 from yesterday's close. This unusual trading activity -- most of which occurred very late in the trading day -- coincided with today's conclusion of our discounted common stock offering under the Dividend Reinvestment and Stock Purchase Plan. We are not aware of any other reason for this unusual trading activity.

Thank you for your ongoing interest in National Penn. Questions regarding this matter can be addressed to Michelle Debkowski, our Corporate Secretary and Investor Relations Officer, at (610) 369-6461 or michelle.debkowski@nationalpenn.com."

Related Categories

Corporate News

Stocks Mentioned

Related Entities

• Dividend
• Stock Buyback

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?