SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED COMPENSATION

Share-based compensation awards are currently granted under the Long-Term Incentive Compensation Plan ("2005 Plan"), approved by shareholders in April 2005 and expiring November 30, 2014. Under the terms of the 2005 Plan, a total of 5.3 million shares of common stock have been made available for option, restricted stock, or other share-based awards. As of March 31, 2014, 0.9 million of these shares remain available for issuance. The Company has 1.7 million awards expiring during the twelve months ending March 31, 2015.

On April 22, 2014, shareholders approved the National Penn Bancshares, Inc. 2014 Long-Term Incentive Compensation Plan ("2014 Plan") to replace the expiring 2005 Plan. Under the terms of the 2014 Plan, an additional 2.3 million shares will be subject to awards, plus any common shares that were authorized for issuance under the 2005 Plan that, as of the effective date of the 2014 Plan, remain available for issuance. Due to the approval of the 2014 Plan, no additional shares will be issued under the 2005 Plan. The effective date of the 2014 Plan is April 22, 2014 and will remain in effect until all awards granted under the 2014 Plan have been paid or otherwise disposed of in accordance with the provisions of the 2014 Plan, except that no awards may be granted on or after April 22, 2024.

As of March 31, 2014, there was approximately $1.9 million of total unrecognized compensation cost related to unvested stock options and approximately $7.1 million of unrecognized compensation cost for other share-based awards that is expected to be recognized within approximately three years.

The table below summarizes activity related to share-based plans:



(dollars in thousands)	Three Months Ended March 31,
	2014		2013
Share-based compensation expense	$	1,014	$	820
Proceeds from stock options exercised	191		398
Intrinsic value of stock options exercised	65		150

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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