National Penn Bancshares, Inc. Reports Record First Quarter Net Income

BOYERTOWN, Pa., April 17 /PRNewswire-FirstCall/ -- National Penn
Bancshares, Inc. (Nasdaq: NPBC) reported record first quarter 2008 net income
totaling $21.59 million, or $0.33 per diluted share. Net income increased
approximately 39.5% compared to $15.48 million earned in the first quarter of
2007. Diluted earnings per share was $0.31 in the first quarter of 2007.(1)
For the first three months of 2008, annualized returns on average assets
and average shareholders' equity were 1.10% and 10.54%, respectively. For
the first three months of 2007, the annualized returns on average assets and
average shareholders' equity were 1.15% and 11.61%, respectively.
On January 4 and February 1, 2008, National Penn completed the mergers
with Christiana Bank & Trust Company and KNBT Bancorp, Inc., respectively.
As of March 31, 2008, National Penn's total assets were $9.11 billion and
total deposits were $6.10 billion. The allowance for loan and lease losses as
of March 31, 2008 was $81.63 million, which represented 1.36% of total loans
and leases outstanding of $6.01 billion.
Commenting on first quarter 2008, Glenn E. Moyer, National Penn president
and chief executive officer, said, "The first quarter of 2008 was a
transformational period for National Penn with the completion of the mergers
with Christiana Bank & Trust and KNBT Bancorp. We're proceeding expeditiously
with the integration of these two companies, and are very pleased with the
early results of our combined organization. The interest rate, economic, and
competitive environments continue to challenge earnings performance at
financial institutions. With that said, the National Penn team is working
very hard to overcome these headwinds, and we're pleased that we have been
able to report record quarterly net income for the first quarter 2008. Our
balanced growth strategy continues to focus on both organic and merger growth,
and we're busy on both fronts as we move forward in 2008."
About National Penn Bancshares, Inc.:
National Penn Bancshares, Inc., with $9.1 billion in assets, is the fifth
largest bank holding company based in Pennsylvania.
Headquartered in Boyertown, National Penn operates more than 130 community
banking offices in Pennsylvania and one office in Maryland through National
Penn Bank and its FirstService Bank, HomeTowne Heritage Bank, KNBT, and
Nittany Bank divisions. National Penn also has two offices in Delaware through
its wholly-owned subsidiary, Christiana Bank & Trust Company.
National Penn's financial services affiliates consist of National Penn
Investors Trust Company; National Penn Capital Advisors, Inc.; Vantage
Investment Advisors, LLC; National Penn Leasing Company; National Penn
Insurance Agency, Inc.; Caruso Benefits Group, Inc.; and Higgins Insurance
Associates, Inc.
National Penn Bancshares, Inc. common stock is traded on the Nasdaq Stock
Market under the symbol "NPBC." Additional information about the National
Penn family is available on the Company's Web site at
http://www.nationalpennbancshares.com.
This press release contains supplemental financial information determined
by methods other than in accordance with Accounting Principles Generally
Accepted in the United States of America ("GAAP"). National Penn's management
uses this non-GAAP measure in its analysis of the company's performance. This
measure, annualized return on average tangible equity, excludes the average
balance of acquisition-related goodwill and intangibles in determining average
tangible shareholders' equity. Banking and financial institution regulators
also exclude goodwill and intangibles from shareholders' equity when assessing
the capital adequacy of a financial institution. Management believes the
presentation of this financial measure excluding the impact of these items
provides useful supplemental information that is essential to a proper
understanding of the financial results of National Penn, as it provides a
method to assess management's success in utilizing the company's tangible
capital. This disclosure should not be viewed as a substitute for results
determined in accordance with GAAP, nor is it necessarily comparable to
non-GAAP performance measures that may be presented by other companies.
(1) 2007 per share data is adjusted for the 3% stock dividend paid on
September 28, 2007.

National Penn Bancshares, Inc.

Exchange Listing Nasdaq "NPBC"

(Dollars in thousands, except per share data)

Three Months Ended March 31, 2008 (3) 2007 (2) (3)
STATEMENTS OF CONDITION
Total assets $9,108,114 $5,520,052
Total deposits 6,103,567 3,730,682
Total loans and leases 6,012,864 3,676,966
Total shareholders' equity 1,046,037 549,848
Book value per share 13.17 11.10

EARNINGS
Total interest income $110,403 $80,393
Total interest expense 53,989 42,467
Net interest income 56,414 37,926
Provision for loan and lease losses 3,410 1,075
Net interest income after provision
for loan and lease losses 53,004 36,851
Other income 24,211 16,694
Other expenses 48,914 33,766
Income before income taxes 28,301 19,779
Income taxes 6,708 4,296
Net income $21,593 $15,483

Return on average assets 1.10% 1.15%
Return on average shareholders'
equity 10.54% 11.61%
Return on average tangible equity (1) 21.84% 24.39%
Average shares - basic 65,190,940 49,488,268
Average shares - diluted 65,899,893 50,235,272

PER SHARE
Basic earnings $0.33 $0.31
Diluted earnings 0.33 0.31
Dividends paid in cash 0.1700 0.1626

(1) Reconciliation Table for Non-GAAP
Financial Measure
Return on average shareholders' equity 10.54% 11.61%
Effect of goodwill and intangibles 11.30% 12.78%
Return on average tangible equity 21.84% 24.39%
Average tangible equity excludes
acquisition related average goodwill
and intangibles:
Average shareholders' equity $823,757 $540,823
Average goodwill and intangibles (426,039) (283,350)
Average tangible equity $397,718 $257,473

(2) Share and per share information adjusted for a 3% stock dividend paid
September 28, 2007.

(3) Unaudited.

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/08
Date 04/17/2008
AS OF AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)
Cash & Cash Equivalents $201,655 $111,520 $99,379
Held to Maturity Securities 271,381 243,595 244,815
Securities Available for Sale 1,669,200 1,137,426 1,175,598
Total Securities 1,940,581 1,381,021 1,420,413
Total Cash and Securities 2,142,236 1,492,541 1,519,792
Loans & Leases Held for Sale 5,711 3,823 2,127
Loans & Leases Held for Investment 6,007,153 3,871,430 3,784,674
Total Loans and Leases 6,012,864 3,875,253 3,786,801
Loan Loss Reserve (81,631) (54,897) (56,294)
Premises and Equipment, net 110,438 61,214 61,743
Bank Owned Life Insurance 189,050 102,407 101,318
Goodwill 545,484 261,552 261,161
Other Intangibles 42,139 16,160 16,919
Total Intangible Assets 587,623 277,712 278,080
Unconsolidated Investments Under
the Equity Method 12,609 11,490 10,058
Real Estate Owned & Held for
Investment 326 - 364
Other Assets (2) 134,599 58,701 62,069
Total Assets (2) $9,108,114 $5,824,421 $5,763,931

BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $5,335,413 $3,423,447 $3,439,266
Non-interest bearing Deposits $768,154 $522,716 $488,557
Borrowings 1,698,974 1,114,206 1,080,221
Subordinated Debt (Trust Preferred
Securities) 141,009 139,997 141,591
Other Liabilities 118,527 60,108 59,974
Total Liabilities $8,062,077 $5,260,474 $5,209,609

BALANCE SHEET - EQUITY ($000s)
Common Stock $975,744 $491,011 $490,872
Retained Earnings 95,859 85,242 76,888
Accumulated Other Comprehensive
Income $(25,485) $(4,281) $(6,458)
Treasury Stock (81) (8,025) (6,980)
Total Shareholders Equity (2) $1,046,037 $563,947 $554,322

MEMO ITEMS
Accumulated other comprehensive
(loss) income $(25,485) $(4,281) $(6,458)
Book Value Per Share (1)(2) $13.17 $11.49 $11.28
Tangible Book Value Per
Share (1)(2) $5.77 $5.83 $5.62
EOP Common Shares Outstanding
(excluding Treasury shares) (1) 79,410,734 49,068,819 49,150,514
Treasury Shares Held By Company
(1) 5,064 544,061 477,117
Did you announce a repurchase plan
during this period? NO NO NO
Number of Shares to be Repurchased
in Plans (1) 3,779,456 3,779,456 3,779,456
Number of Shares Repurchased
During Period (1) 33,587 326,039 594,566
Average Price of Repurchased
Shares (1) $16.38 $14.76 $14.61

AS OF AS OF
BALANCE SHEET - ASSETS ($000s) 6/30/2007 3/31/2007
(unaudited) (unaudited)
Cash & Cash Equivalents $125,128 $101,676
Held to Maturity Securities 245,964 248,543
Securities Available for Sale 1,063,705 1,049,503
Total Securities 1,309,669 1,298,046
Total Cash and Securities 1,434,797 1,399,722
Loans & Leases Held for Sale 9,305 23,215
Loans & Leases Held for
Investment 3,721,182 3,653,751
Total Loans and Leases 3,730,487 3,676,966
Loan Loss Reserve (57,004) (57,771)
Premises and Equipment, net 61,230 55,132
Bank Owned Life Insurance 100,216 99,538
Goodwill 261,161 263,104
Other Intangibles 17,677 18,435
Total Intangible Assets 278,838 281,539
Unconsolidated Investments Under
the Equity Method 10,724 10,509
Real Estate Owned & Held for
Investment 364 140
Other Assets (2) 61,518 54,277
Total Assets (2) $5,621,170 $5,520,052

BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits $3,309,328 $3,207,733
Non-interest bearing Deposits $516,458 $522,949
Borrowings 1,055,527 1,038,232
Subordinated Debt (Trust
Preferred Securities) 142,780 142,654
Other Liabilities 51,172 58,636
Total Liabilities $5,075,265 $4,970,204

BALANCE SHEET - EQUITY ($000s)
Common Stock $466,837 $466,555
Retained Earnings 91,548 83,368
Accumulated Other Comprehensive
Income $(12,193) 713
Treasury Stock (287) (788)
Total Shareholders Equity (2) $545,905 $549,848

MEMO ITEMS
Accumulated other comprehensive
(loss) income $(12,193) $713
Book Value Per Share (1)(2) $11.01 $11.10
Tangible Book Value Per
Share (1)(2) $5.39 $5.42
EOP Common Shares Outstanding
(excluding Treasury shares) (1) 49,584,957 49,543,066
Treasury Shares Held By Company
(1) 16,470 41,578
Did you announce a repurchase
plan during this period? NO NO
Number of Shares to be
Repurchased in Plans (1) 3,779,456 3,779,456
Number of Shares Repurchased
During Period (1) 86,229 31,869
Average Price of Repurchased
Shares (1) $17.92 $18.73

(1) Adjusted as necessary for a 3% stock dividend paid September 28,
2007.
(2) Adjusted as necessary for modified retrospective method adoption
under FAS123 ( R ).

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/08

FOR QUARTER FOR QUARTER FOR QUARTER
ENDED ENDED ENDED
INCOME STATEMENT ($000s) 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)
Interest Income $110,403 $86,502 $85,727
Interest Expense 53,989 45,991 46,631
Net Interest Income 56,414 40,511 39,096
Loan and Lease Loss Provision 3,410 3,800 1,420
Net Interest Income after Provision
for Loan and Lease Losses 53,004 36,711 37,676
Wealth Management Income 7,608 4,605 4,359
Service Charges on Deposits 5,261 4,499 4,461
Cash Management and Electronic
Banking Fees 2,928 2,367 2,241
Mortgage Banking Income 591 512 468
Insurance Commissions and Fees 3,806 1,383 1,556
Bank Owned Life Insurance Income 1,580 1,089 1,102
Equity in Unconsolidated
Investments 612 2,549 226
Net Gains (Losses) on Sale of
Investment Securities - 331 600
Gain on Sale of Building(s) - - 279
BOLI Death Benefit Income - - -
Other Non-Interest Income 1,825 3,121 2,958
Non-Recurring Income - - -
Total Non-Interest Income 24,211 20,456 18,250
Salaries, Wages and Employee
Benefits (2) 29,230 22,337 20,982
Net Premises and Equipment Expense 8,007 5,016 4,867
Amortization of Intangibles 1,582 758 758
Other Non-Interest Expense 10,095 8,733 7,494
Non-Recurring Expense - - -
Total Non-Interest Expense (2) 48,914 36,844 34,101
Net Income Before Taxes (2) 28,301 20,323 21,825
Income Tax Expense (2) 6,708 3,614 5,018
Net Income (2) 21,593 16,709 16,807

Net Interest Income (FTE) $60,999 $44,883 $43,260

EARNINGS PER SHARE:

Basic
Net income (1) (2) $0.33 $0.34 $0.34
Diluted
Net income (1) (2) $0.33 $0.34 $0.34
Average Shares Basic (1) 65,190,940 49,044,107 49,146,831
Average Shares Diluted (1) 65,899,893 49,496,144 49,641,283

(1) Adjusted as necessary for a 3% stock dividend paid
September 28, 2007.
(2) Adjusted as necessary for modified retrospective method adoption
under FAS123 ( R ).

SUPPLEMENTAL DATA ($000s) (4)
Return on Avg. Assets (annualized) 1.10% 1.15% 1.18%
Return on Avg. Equity (annualized) 10.54% 11.96% 12.30%
Return on Avg. Tangible Equity
(annualized) (3) 21.84% 23.96% 25.29%
Average Tangible Equity to Tangible
Assets (5) 5.31% 5.04% 4.90%
Average Realized Tangible Equity to
Average Tangible Assets Ratio (6) 5.38% 5.14% 5.10%

(3) (Net income x (365/92)), divided by (average equity - average
goodwill and intangibles)
(5) Average tangible equity, divided by (average assets - average
goodwill and intangibles).
(6) (Average tangible equity - average AOCI), divided by average
tangible assets.

(3) (4) Reconciliation Table for Non-GAAP
Financial Measure
Return on average
shareholders' equity 10.54% 11.96% 12.30%
Effect of goodwill and
intangibles 11.30% 12.00% 12.99%
Return on average tangible
equity 21.84% 23.96% 25.29%
Average tangible equity
excludes acquisition related
average goodwill and
intangibles:
Average shareholders'
equity $823,757 $554,334 $542,052
Average goodwill and
intangibles (426,039) (277,691) (278,441)
Average tangible
equity 397,718 276,643 263,611

FOR QUARTER FOR QUARTER
ENDED ENDED
INCOME STATEMENT ($000s) 6/30/2007 3/31/2007
(unaudited) (unaudited)
Interest Income $82,851 $80,393
Interest Expense 44,364 42,467
Net Interest Income 38,487 37,926
Loan and Lease Loss Provision 1,537 1,075
Net Interest Income after
Provision for Loan and Lease Losses 36,950 36,851
Wealth Management Income 4,289 4,063
Service Charges on Deposits 4,314 4,098
Cash Management and Electronic
Banking Fees 2,112 1,942
Mortgage Banking Income 1,110 876
Insurance Commissions and Fees 1,487 2,200
Bank Owned Life Insurance Income 1,078 1,099
Equity in Unconsolidated
Investments 216 (589)
Net Gains (Losses) on Sale of
Investment Securities 564 569
Gain on Sale of Building(s) 170 -
BOLI Death Benefit Income 837 374
Other Non-Interest Income 1,621 2,062
Non-Recurring Income - -
Total Non-Interest Income 17,798 16,694
Salaries, Wages and Employee
Benefits (2) 20,557 20,499
Net Premises and Equipment Expense 4,851 5,068
Amortization of Intangibles 759 759
Other Non-Interest Expense 7,895 7,440
Non-Recurring Expense - -
Total Non-Interest Expense (2) 34,062 33,766
Net Income Before Taxes (2) 20,686 19,779
Income Tax Expense (2) 4,452 4,296
Net Income (2) 16,234 15,483

Net Interest Income (FTE) $42,278 $41,563

EARNINGS PER SHARE:

Basic
Net income (1) (2) $0.33 $0.31
Diluted
Net income (1) (2) $0.32 $0.31
Average Shares Basic (1) 49,556,675 49,488,268
Average Shares Diluted (1) 50,181,973 50,235,272

(1) Adjusted as necessary for a 3% stock dividend paid
September 28, 2007.
(2) Adjusted as necessary for modified retrospective method adoption
under FAS123 ( R ).

SUPPLEMENTAL DATA ($000s) (4)
Return on Avg. Assets (annualized) 1.17% 1.15%
Return on Avg. Equity (annualized) 11.91% 11.61%
Return on Avg. Tangible Equity
(annualized) (3) 24.47% 24.39%
Average Tangible Equity to
Tangible Assets (5) 5.06% 4.98%
Average Realized Tangible Equity
to Average Tangible Assets Ratio (6) 5.10% 4.98%

(3) (Net income x (365/92)), divided by (average equity - average
goodwill and intangibles)
(5) Average tangible equity, divided by (average assets - average
goodwill and intangibles).
(6) (Average tangible equity - average AOCI), divided by average
tangible assets.

(3) (4) Reconciliation Table for Non-GAAP
Financial Measure
Return on average
shareholders' equity 11.91% 11.61%
Effect of goodwill and
intangibles 12.56% 12.78%
Return on average tangible
equity 24.47% 24.39%
Average tangible equity excludes
acquisition related average
goodwill and intangibles:
Average shareholders'
equity $546,765 $540,823
Average goodwill
and intangibles (280,649) (283,350)
Average tangible
equity 266,116 257,473

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/08

FOR QUARTER FOR QUARTER FOR QUARTER
ENDED ENDED ENDED
CHARGEOFFS ($000s) 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)
Loan Chargeoffs $3,001 $5,624 $2,482
Recoveries on Loans (440) (428) (352)
Net Loan Chargeoffs $2,561 $5,196 $2,130

AS OF AS OF AS OF
ASSET QUALITY AND OTHER DATA ($000s) 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)
Nonaccrual Loans $22,679 $15,198 $8,435
Renegotiated Loans - - -
Other Real Estate Owned 326 - 364
Total Non-performing Assets $23,005 $15,198 $8,799
Loans 90+ Days Past Due & Still
Accruing 1,140 87 67
Non-performing + Loans 90 Days
Past Due $24,145 $15,285 $8,866
Allowance for Loan and Lease
Losses $81,631 $54,897 $56,294
Coverage Ratio 338.1% 359.2% 634.9%

AS OF AS OF AS OF
REGULATORY CAPITAL DATA ($000s) (1) 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)
Tier 1 Capital $622,391 $426,236 $420,014
Tier 1 Ratio (%) 9.11% 9.54% 9.64%
Total Capital (Tier 1 + Tier 2) $704,087 $482,692 $475,596
Total Capital Ratio (%) 10.31% 10.81% 10.91%
Total Risk-Adjusted Assets $6,829,295 $4,466,824 $4,358,884
Tier 1 Leverage Ratio 8.50% 7.76% 7.80%
Tangible Equity to Tangible Assets
Ratio 5.38% 5.16% 5.04%
Realized Tangible Equity to
Tangible Assets Ratio 5.68% 5.24% 5.15%

AS OF AS OF AS OF
SUPPLEMENTAL DATA ($000s) 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)

Held to Maturity Securities (Fair
Value) $269,382 $243,218 $243,593
Common Stock Dividends (total $ in
period) $8,825 $8,354 $8,066
Dividends per Common Share (2) $0.1700 $0.1700 $0.1626
EOP Employees (Full Time
Equivalent) 1,906 1,171 1,185

FOR QUARTER FOR QUARTER
ENDED ENDED
CHARGEOFFS ($000s) 6/30/2007 3/31/2007
(unaudited) (unaudited)
Loan Chargeoffs $2,859 $2,086
Recoveries on Loans (555) (475)
Net Loan Chargeoffs $2,304 $1,611

AS OF AS OF
ASSET QUALITY AND OTHER DATA ($000s) 6/30/2007 3/31/2007
(unaudited) (unaudited)
Nonaccrual Loans $12,270 $12,077
Renegotiated Loans - -
Other Real Estate Owned 364 140
Total Non-performing Assets $12,634 $12,217
Loans 90+ Days Past Due & Still
Accruing 619 243
Non-performing + Loans 90 Days
Past Due $13,253 $12,460
Allowance for Loan and Lease
Losses $57,004 $57,771
Coverage Ratio 430.1% 463.7%

AS OF AS OF
REGULATORY CAPITAL DATA ($000s) (1) 6/30/2007 3/31/2007
(unaudited) (unaudited)
Tier 1 Capital $417,762 $405,972
Tier 1 Ratio (%) 9.93% 9.92%
Total Capital (Tier 1 + Tier 2) $470,902 $459,795
Total Capital Ratio (%) 11.20% 11.23%
Total Risk-Adjusted Assets $4,206,000 $4,093,619
Tier 1 Leverage Ratio 7.94% 8.00%
Tangible Equity to Tangible
Assets Ratio 5.00% 5.12%
Realized Tangible Equity to
Tangible Assets Ratio 5.23% 5.11%

AS OF AS OF
SUPPLEMENTAL DATA ($000s) 6/30/2007 3/31/2007
(unaudited) (unaudited)
Held to Maturity Securities
(Fair Value) $238,741 $247,444
Common Stock Dividends (total $
in period) $8,066 $8,048
Dividends per Common Share (2) $0.1626 $0.1626
EOP Employees (Full Time
Equivalent) 1,227 1,195

(1) Adjusted as necessary for modified retrospective method adoption
under FAS123 ( R ).
(2) Adjusted as necessary for a 3% stock dividend paid September 28,
2007.

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/08

AS OF AS OF AS OF
PERIOD END BALANCES: 3/31/2008 12/31/2007 9/30/2007
(unaudited) (unaudited) (unaudited)
Earning Assets / Liabilities
Loan Breakdown: (Regulatory)
Commercial/Industrial $1,098,437 $723,144 $713,887
Commercial Real Estate 1,609,201 1,329,482 1,304,911
Residential Mortgage (including
multi-family) 1,594,672 795,151 781,087
Real Estate Construction and Land
Development 537,310 328,720 310,372
Home Equity (revolving and 2nd
lien) 762,717 464,673 447,130
Consumer (Loans to Individuals) 224,594 73,494 70,817
Other Loans 185,933 160,589 158,597
Total Loans (net of unearned) 6,012,864 3,875,253 3,786,801
Investment Securities 1,941,582 1,381,021 1,420,413
Other Earning Assets 33,520 7,228 5,616
Total Earning Assets (net of loan
loss reserve) $7,906,335 $5,208,604 $5,156,536

Deposit Breakdown:
Savings $377,416 $193,938 $193,232
NOW Accounts 932,132 733,242 775,385
Money Market Accounts 1,679,063 957,423 951,104
CDs $100m or less 1,722,316 992,741 1,008,792
CDs greater than $100m 624,488 546,103 510,753
Total Int. Bearing Deposits 5,335,415 3,423,447 3,439,266
Short-Term Borrowings 678,581 497,023 452,761
Long-Term Debt 1,161,403 757,180 769,051
Total Int. Bearing Liabilities $7,175,399 $4,677,650 $4,661,078

Loan Breakdown: (Internal)
Business Purpose Loans $2,575,761 $1,621,101 $1,571,459
Residential Mortgage 1,069,643 494,413 485,967
Commercial Real Estate,
Construction and Land Dev. 1,389,608 1,296,277 1,265,904
Consumer (loans to Individual) 977,852 463,462 463,471
Total Loans (net of unearned) $6,012,864 $3,875,253 $3,786,801

AS OF AS OF
PERIOD END BALANCES: 6/30/2007 3/31/2007
(unaudited) (unaudited)
Earning Assets / Liabilities
Loan Breakdown: (Regulatory)
Commercial/Industrial $695,396 $661,504
Commercial Real Estate 1,277,469 1,275,878
Residential Mortgage (including
multi-family) 798,808 809,097
Real Estate Construction and Land
Development 295,618 288,171
Home Equity (revolving and 2nd
lien) 441,579 437,467
Consumer (Loans to Individuals) 63,558 61,112
Other Loans 158,059 143,737
Total Loans (net of unearned) 3,730,487 3,676,966
Investment Securities 1,309,669 1,298,046
Other Earning Assets 3,933 2,760
Total Earning Assets (net of loan
loss reserve) $4,987,085 $4,920,001

Deposit Breakdown:
Savings $208,694 $220,192
NOW Accounts 722,656 624,276
Money Market Accounts 960,302 932,189
CDs $100m or less 961,964 911,951
CDs greater than $100m 455,712 519,125
Total Int. Bearing Deposits 3,309,328 3,207,733
Short-Term Borrowings 427,792 590,226
Long-Term Debt 770,515 590,660
Total Int. Bearing Liabilities $4,507,635 $4,388,619

Loan Breakdown: (Internal)
Business Purpose Loans $1,542,646 $1,521,929
Residential Mortgage 515,339 491,366
Commercial Real Estate,
Construction and Land Dev. 1,215,586 1,202,717
Consumer (loans to Individual) 456,916 460,954
Total Loans (net of unearned) $3,730,487 $3,676,966

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/08

BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF
3/31/2008 12/31/2007
(unaudited) (unaudited)
Qtr Avg Bal Yield Qtr Avg Bal Yield

Total Loans (net of unearned) $5,296,371 6.80% $3,825,406 7.24%
Investment Securities (incl.
trading assets) 1,802,951 5.63% 1,393,393 5.98%
Other Earning Assets 24,148 2.22% 10,550 3.35%

Total Earning Assets 7,123,470 6.49% 5,229,349 6.89%
Total Earning Assets (net of loan
loss reserve) 7,051,565 6.56% 5,172,622 6.97%
Total Assets 7,886,342 5.86% 5,768,409 6.25%

Savings 316,680 0.71% 193,088 1.08%
NOW Accounts 843,526 1.79% 766,446 2.65%
Money Market Accounts 1,416,426 2.78% 961,975 3.38%
Certificates 2,097,691 4.32% 1,512,883 4.70%

Total Int. Bearing Deposits 4,674,323 3.16% 3,434,392 3.67%

Non-Interest Bearing Deposits 649,278 493,152
Total Deposits 5,323,601 2.77% 3,927,544 3.21%

Short-Term Borrowings 643,958 3.29% 463,461 3.82%
Long-Term Borrowings 1,049,870 4.61% 758,929 5.10%
Total Int. Bearing Liabilities
(incl. non-int. bearing deposits) 7,017,429 3.09% 5,149,934 3.54%
Total Int. Bearing Liabilities 6,368,151 3.41% 4,656,782 3.92%

Net Yield on Earning Assets (net of
loan loss reserve): (Margin) 3.48% 3.44%
Net Yield on Earning Assets:
(Margin) 3.44% 3.41%

STATES OF OPERATION AND BANKING OFFICES BY STATE
(LATEST AVAILABLE DATA)

State Number of Full Service Banking Offices
(Domestic and in the U.S. Territories)

PA
Total Number of Banking Offices 132 81
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
Total Number of ATMs 152 81

MD
Total Number of Banking Offices 1 1
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0 0
Total Number of ATMs 1 1

DE
Total Number of Banking Offices 2 0
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 0
Total Number of ATMs 1 1

TOTAL
Total Number of Banking Offices 135 82
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 2 1
Total Number of ATMs 154 83

Have you restated any prior period's financial statements for a pooling
of interest and/or a change in
accounting principles? NO
Periods Restated on this report:
Reason:

BALANCE AND YIELD/COST ANALYSIS: AS OF AS OF
9/30/2007 6/30/2007
(unaudited) (unaudited)
Qtr Avg Bal Yield Qtr Avg Bal Yield

Total Loans (net of unearned) $3,756,081 7.40% $3,700,384 7.35%
Investment Securities (incl.
trading assets) 1,356,853 5.78% 1,302,524 5.79%
Other Earning Assets 4,656 4.60% 3,958 6.18%

Total Earning Assets 5,117,590 6.97% 5,006,866 6.94%
Total Earning Assets (net of loan
loss reserve) 5,060,766 7.05% 4,948,851 7.02%
Total Assets 5,661,055 6.30% 5,542,100 6.27%

Savings 200,665 1.11% 212,624 1.12%
NOW Accounts 734,140 2.67% 689,712 2.53%
Money Market Accounts 965,630 3.65% 944,773 3.68%
Certificates 1,457,016 4.76% 1,437,808 4.74%

Total Int. Bearing Deposits 3,357,451 3.77% 3,284,917 3.74%

Non-Interest Bearing Deposits 499,398 500,580
Total Deposits 3,856,849 3.28% 3,785,497 3.24%

Short-Term Borrowings 437,019 4.03% 496,311 4.28%
Long-Term Borrowings 770,371 5.31% 660,668 5.14%
Total Int. Bearing Liabilities
(incl. non-int. bearing deposits) 5,064,239 3.65% 4,942,476 3.60%
Total Int. Bearing Liabilities 4,564,841 4.05% 4,441,896 4.01%

Net Yield on Earning Assets (net of
loan loss reserve): (Margin) 3.39% 3.43%
Net Yield on Earning Assets:
(Margin) 3.35% 3.39%

STATES OF OPERATION AND BANKING OFFICES BY STATE
(LATEST AVAILABLE DATA)

State Number of Full Service Banking Offices
(Domestic and in the U.S. Territories)

PA
Total Number of Banking Offices 81 80
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
Total Number of ATMs 83 83

MD
Total Number of Banking Offices 1 1
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0 0
Total Number of ATMs 1 1

DE
Total Number of Banking Offices 0 0
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0 0
Total Number of ATMs 0 0

TOTAL
Total Number of Banking Offices 82 81
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1 1
Total Number of ATMs 84 84

Have you restated any prior period's financial statements for a pooling
of interest and/or a change in accounting
principles? NO
Periods Restated on this report:
Reason:

BALANCE AND YIELD/COST ANALYSIS: AS OF
3/31/2007
(unaudited)
Qtr Avg Bal Yield

Total Loans (net of unearned) $3,639,246 7.36%
Investment Securities (incl.
trading assets) 1,271,449 5.73%
Other Earning Assets 12,785 1.65%

Total Earning Assets 4,923,480 6.92%
Total Earning Assets (net of loan
loss reserve) 4,864,994 7.00%
Total Assets 5,452,202 6.25%

Savings 216,121 1.17%
NOW Accounts 625,108 2.30%
Money Market Accounts 939,598 3.65%
Certificates 1,476,314 4.69%

Total Int. Bearing Deposits 3,257,141 3.70%

Non-Interest Bearing Deposits 487,661
Total Deposits 3,744,802 3.22%

Short-Term Borrowings 503,795 4.14%
Long-Term Borrowings 598,757 5.17%
Total Int. Bearing Liabilities
(incl. non-int. bearing deposits) 4,847,354 3.55%
Total Int. Bearing Liabilities 4,359,693 3.95%

Net Yield on Earning Assets (net of
loan loss reserve): (Margin) 3.46%
Net Yield on Earning Assets:
(Margin) 3.42%

STATES OF OPERATION AND BANKING OFFICES BY STATE
(LATEST AVAILABLE DATA)

State Number of Full Service Banking Offices
(Domestic and in the U.S. Territories)

PA
Total Number of Banking Offices 80
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1
Total Number of ATMs 83

MD
Total Number of Banking Offices 1
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0
Total Number of ATMs 1

DE
Total Number of Banking Offices 0
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 0
Total Number of ATMs 0

TOTAL
Total Number of Banking Offices 81
Total Number of Insured
Subsidiaries (Bank & Thrift
Subsidiaries) 1
Total Number of ATMs 84

Have you restated any prior period's financial statements for a pooling
of interest and/or a change in accounting
principles? NO
Periods Restated on this report:
Reason:

SOURCE National Penn Bancshares, Inc.

Media: Catharine S. Bower, Communications Manager, +1-610-369-6618,
csbower@natpennbank.com, or Investors: Michelle H. Debkowski, Investor
Relations, +1-610-369-6461, mhdebkowski@natpennbank.com, both of National Penn
Bancshares, Inc.