In this challenging economic environment, we’d like to provide you with the following information about National Penn, which speaks to the stability of our company and the safety of your deposits.
Credit Culture
National Penn is the fourth largest bank holding company headquartered in Pennsylvania and has had a responsible and prudent credit culture since our founding more than 130 years ago. We have diverse assets and a broad revenue stream, all of which contribute to our stability.
Capitalization
To protect against potential losses, our holding company, National Penn Bancshares, Inc., and our banking subsidiaries are all “well-capitalized,” as defined in government banking regulations.
Regulation
The U.S. financial services industry is highly regulated. National Penn and our banking subsidiaries are each supervised by various government bank regulators.
FDIC Insurance
Since 2008, FDIC insurance has been changed many times. For a history of the changes, refer to the FDIC Web site link on the right. The standard coverage is $250,000 per depositor. Since May 20, 2009, the $250,000 limit has been permanent for certain retirement accounts, which includes IRAs. Effective July 21, 2010, the $250,000 limit is permanent for all other deposit accounts. The FDIC provides separate coverage for deposits held in different account ownership categories. If you would like to know how much FDIC insurance is available in your particular situation, please stop at any of our Community Offices.
At the same time that FDIC insurance amounts were changing, a new program called the Transaction Account Guarantee (TAG) Program provided unlimited FDIC deposit insurance for all Non-Interest Bearing Deposit Transaction accounts regardless of the dollar amount over the $250,000 basic coverage. Non-Interest Bearing Deposit Transaction Accounts include checking accounts, IOLTA (Interest on Lawyers Trust Accounts) and NOW accounts with interest rates no higher than .50% through 6/30/10, and .25% effective 7/1/10. Non-Interest bearing accounts that sweep overnight into a money market or cash management repurchase agreement are not eligible for the unlimited guarantee. National Penn continues to participate in this program and provides this additional benefit to you, our customers. The program has been extended to December 31, 2010, with the possibility of an additional 12-month extension through December 31, 2011.
Some bank holding companies, such as National Penn, have separately chartered banks, each offering FDIC-insured deposit accounts. This enables customers to open similar FDIC-insured accounts at each bank.
We are also a member of the Certificate of Deposit Account Registry Service (CDARS®), which can fully protect your money with FDIC coverage, up to $50 million.
Updated: July 27, 2010