EXHIBIT 99.1

  News Release

National Penn Bancshares, Inc.

Reports Third Quarter Financial Results

Successfully Raises $153 Million in Additional Capital During Quarter

Plan to Dispose of CDO Portfolio

Increased Loan Reserve Levels and Coverage Ratios

Board Declares One Cent Per Common Share Cash Dividend

Media Contact:	Catharine S. Bower, Corporate Communications
	(610) 369-6618 or catharine.bower@nationalpenn.com
Investor Contact:	Michelle H. Debkowski, Investor Relations
	(610) 369-6461 or michelle.debkowski@nationalpenn.com

BOYERTOWN, Pa., October 29, 2009 -- National Penn Bancshares, Inc. (Nasdaq: NPBC) reported a net loss of $65.2 million for the third quarter 2009.  This loss, after payment of dividends on preferred stock issued to the U.S. Treasury under its Capital Purchase Program, represents a loss of $0.65 per diluted common share.  For the first nine months of 2009, National Penn’s net loss attributable to common shareholders, after dividends on the preferred stock issued to the U.S. Treasury, amounted to $73.1 million, or a loss of $0.81 per diluted common share.

National Penn’s management has decided to dispose of its collateralized debt obligation portfolio.  This action has resulted in a charge to earnings in the amount of $84.7 million pre-tax, or $55.0 million after tax, in the third quarter, which is the largest contributing factor to National Penn’s net loss for the quarter and year-to-date in 2009.  Capital levels, as a result of this action, have been reduced by $18.0 million due to the previous fair value charges already reflected in capital.  Upon the sale of a portion of these securities, National Penn expects to receive a cash refund of previously paid taxes, approximately $27.0 million.

Glenn E. Moyer, President and CEO, stated, “In addition to the difficult regional economic and operating environment, third quarter results were affected by a number of significant steps we believe will further reinforce National Penn’s financial strength, but which negatively affected earnings in the short-run.  National Penn’s Board and executive management remain committed to taking proactive and decisive actions to address the challenges that National Penn, like others in our industry, continues to face.  We believe our solid capital levels, the foundation of our financial strength, support these important strategies.”

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He continued, “With $627 million in tangible common equity, National Penn exceeds regulatory guidelines used to measure capital strength of financial institutions.  Investor confidence in National Penn in the third quarter enabled us to raise $153 million in new common equity.   Prior to that, we raised another $72 million in common equity through our dividend reinvestment program.”  Moyer also noted as a result of the capital raise, the company has received notification from the U.S. Treasury that during the fourth quarter its outstanding TARP-related warrants have been reduced by 50%, or 735,294 warrants.

National Penn’s capital ratios at September 30, 2009 were as follows:

·   Tangible common equity to tangible assets -- 6.85%.

·   Total risk-based capital -- 13.72%, which is in excess of the regulatory well-capitalized minimum of 10%.

·   Tier 1 risk-based capital --12.46%, which is in excess of the regulatory well-capitalized minimum of 6%.

·   Tier 1 leverage ratio -- 9.00%, which is also in excess of the regulatory well-capitalized minimum of 5%.

From a regulatory capital standpoint, National Penn, and each of National Penn’s banking subsidiaries, National Penn Bank and Christiana Bank & Trust Company, all continue to exceed the ratios required to be “well capitalized” under guidelines imposed by financial institution regulators.

 National Penn’s Board of Directors approved a fourth quarter cash dividend of one cent per share, payable on November 17, 2009 to shareholders of record on November 8, 2009.  This compares to five cents per share paid in the third quarter 2009.  In assessing the declaration and payment of a fourth quarter dividend, the Board determined that preservation of capital is a prudent response to the continuing adverse credit cycle and weak economy.  Through this action, National Penn will retain approximately $20 million in common equity annually.  The Board will continue to evaluate the cash dividend on a quarterly basis going forward, considering all of the relevant factors at that time.

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National Penn continues to focus on asset quality in the current economic environment.  The company increased its provision for loan losses for the third quarter to $52.0 million as compared to $37.5 million in the second quarter, resulting in an overall increase in the allowance for loan and lease losses to $125.5 million, which now represents 2.02% of loans, including loans held for sale, and 103.8% of non-performing assets.  Non-performing assets and loans past due 90 days declined to $120.9 million at September 30, 2009, compared to $124.3 million at June 30, 2009, representing 1.24% of total assets.

Scott V. Fainor, Chief Operating Officer of National Penn, commented, “The action we announced today regarding our plan to dispose of our CDO portfolio and increasing our quarterly loan loss provision are among the proactive steps we have taken to reduce problem assets and mitigate credit risk.  Our approach is consistent with industry trends, and with regulatory guidance and expectations.  While our third quarter financial results reflect the immediate impact of these actions, we believe this approach will enable National Penn to continue to weather challenging economic conditions and actively participate in an economic recovery.”

Core earnings of National Penn remain strong, as net interest margin increased during the third quarter 2009 to 3.31% from 3.19% in the second quarter 2009.  Fee income categories are continuing to perform well, and expenses remain well controlled despite significantly increased charges for FDIC insurance.  For the year-to-date in 2009, total loan outstandings are below year end 2008 by 1.8%.  Originations of loans to new and existing customers so far in 2009 total $1.0 billion.  However, growth in loan outstandings has been negated by faster repayments of loans from existing borrowers, sale of mortgage loans in the secondary market, refinancings and elevated levels of net loan charge-offs.  Deposit growth for the first nine months of 2009 was $408.8 million, or an 8.5% annualized increase, which continues to reflect management’s execution of its liability strategies and the confidence valued customers have in the overall strength of National Penn.

__________

# # #

About National Penn Bancshares, Inc.:

National Penn Bancshares, Inc., with $9.7 billion in assets, is the fourth largest bank holding company based in Pennsylvania.  In addition, wealth assets under administration or management amount to $8.5 billion.

Headquartered in Boyertown, National Penn operates 127 offices. It has 124 community banking offices in Pennsylvania and one office in Maryland through National Penn Bank and its 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.

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National Penn’s financial services affiliates consist of National Penn Wealth Management, N.A., including its National Penn Investors Trust Company division; National Penn Capital Advisors, Inc.; Vantage Investment Advisors, LLC; Institutional Advisors LLC; National Penn Leasing Company; National Penn Insurance Services Group, Inc., including its Higgins Insurance division; and Caruso Benefits Group, Inc.

National Penn Bancshares, Inc. common stock is traded on the Nasdaq Stock Market under the symbol “NPBC”. Please visit our Web site at  www.nationalpennbancshares.com to see our regularly posted material information.

Statement Regarding Non-GAAP Financial Measures:

This 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 these non-GAAP measures in its analysis of National Penn’s performance.  One such 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. The other such measure, core net income (or core earnings), excludes the effects of non-cash, after-tax unrealized gains and losses.  Management believes the presentation of these financial measures excluding the impact of the specified items provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn.  In the case of annualized return on average tangible equity, it provides a method to assess management’s success in utilizing the company’s tangible capital.  In the case of core net income (or core earnings), it provides a method to assess earnings performance excluding one-time items.  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.

Cautionary Statement Regarding Forward-Looking Information:

This release contains forward-looking information about National Penn Bancshares, Inc. that is intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,’’ “project,” “plan,’’ “goal,” “potential,” “pro forma,” “seek,” “intend,’’ or “anticipate’’ or the negative thereof or comparable terminology, and include discussions of strategy, financial projections, guidance and estimates (including their underlying assumptions), statements regarding plans, objectives, expectations or consequences of announced transactions, and statements about the future performance, operations, products and services of National Penn and its subsidiaries. National Penn cautions readers not to place undue reliance on these statements.

National Penn’s business and operations are subject to a variety of risks, uncertainties and other factors. Consequently, actual results and experience may materially differ from those contained in any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: increased capital requirements and other requirements or actions mandated by National Penn’s regulators, National Penn’s ability to raise capital and maintain capital levels, variations in interest rates, continued deterioration in the credit quality of certain loans, the effect of credit risk exposure, declines in the value of National Penn’s assets, recent and ongoing changes to the state and federal regulatory schemes under which National Penn and other financial services companies operate, competition from other financial institutions, interruptions or breaches of National Penn’s security systems, and the development and maintenance of National Penn’s information technology. These risks and others are described in greater detail in National Penn’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, as well as in National Penn’s Quarterly Reports on Form 10-Q and other documents filed by National Penn with the SEC after the date thereof, including the Form 8-K filed with the SEC on September 8, 2009. National Penn makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances occurring or existing after the date any forward-looking statement is made.

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National Penn Bancshares, Inc.
Exchange Listing Nasdaq "NPBC"
FINANCIAL HIGHLIGHTS	Three Months Ended September 30,						Nine Months Ended September 30,
Dollars in thousands, except per share data	2009			2008			2009			2008
STATEMENTS OF CONDITION
Total assets							$	9,740,310		$	9,316,795
Investment securities								2,248,237			1,979,577
Loans and leases								6,199,684			6,207,621
Deposits								6,798,662			6,220,643
Short-term borrowings								635,911			859,415
Long-term borrowings								914,982			1,114,020
Shareholders' equity								1,360,106			1,046,013
Book value per share								10.82			13.09
Common Book value per share								9.67			13.09
EARNINGS
Total interest income	$	105,240		$	120,717		$	316,835		$	350,623
Total interest expense		40,042			53,769			132,131			160,983
Net interest income		65,198			66,948			184,704			189,640
Provision for loan and lease losses		52,000			6,876			107,025			13,997
Net interest income after provision
for loan and lease losses		13,198			60,072			77,679			175,643
Other income		(64,137	)		16,850			(27,407	)		68,962
Other expenses		52,152			54,087			171,497			156,827
Income before income taxes		(103,091	)		22,835			(121,225	)		87,778
Income taxes		(40,000	)		3,607			(54,386	)		19,743
Net income	$	(63,091	)	$	19,228		$	(66,839	)	$	68,035
Preferred dividends/accretion of preferred discount		(2,096	)		-			(6,245	)		0
Net Income Available to Common Shareholders	$	(65,187	)	$	19,228		$	(73,084	)	$	68,035
PERFORMANCE RATIOS
Net yield on earning assets		3.31	%		3.52	%		3.21	%		3.52	%
Return on average assets		-2.57	%		0.83	%		-0.93	%		1.04	%
Return on average shareholders' equity		-20.01	%		7.29	%		-7.39	%		9.34	%
Return on average tangible equity (1)		-37.82	%		16.50	%		-14.45	%		20.62	%
PER SHARE
Basic earnings available to common shareholders	$	(0.65	)	$	0.24		$	(0.81	)	$	0.91
Diluted earnings available to common shareholders	$	(0.65	)	$	0.23		$	(0.81	)	$	0.90
Dividends paid in cash	$	0.0500		$	0.1700		$	0.2700		$	0.5100
Average shares - basic		100,064,355			79,741,702			89,760,302			74,833,736
Average shares - diluted		100,064,355			80,495,907			89,760,302			75,470,534
(1) Reconciliation Tables for Non-GAAP Financial Measures
Return on average shareholders' equity		-20.01	%		7.29	%		-7.39	%		9.34	%
Effect of goodwill and intangibles		-17.81	%		9.21	%		-7.06	%		11.28	%
Return on average tangible equity		-37.82	%		16.50	%		-14.45	%		20.62	%
Average tangible equity excludes acquisition
related average goodwill and intangibles:
Average shareholders' equity	$	1,250,619		$	1,049,144		$	1,209,042		$	973,495
Average goodwill and intangibles		(588,842	)		(585,544	)		(590,736	)		(532,771	)
Average total tangible equity	$	661,777		$	463,600		$	618,306		$	440,724
Net Income available to common shareholders	$	(65,187	)	$	19,228		$	(73,084	)	$	68,035
After tax other than temporary impairment
charge on CDO investment		55,058			13,000			64,757			13,000
After tax (gain) loss on investment securities		561			(179	)		2,046			(429	)
After tax unrealized fair market value gain (loss) on
NPB Capital Trust II Preferred Securities		4,062			(4,967	)		5,262			(3,569	)
After tax insurance proceeds		(2,618	)		-			(2,618	)		-
After tax FDIC special assessment		-			-			3,006			-
Core net income	$	(8,124	)	$	27,082		$	(631	)	$	77,038
Earnings per share	$	(0.65	)	$	0.23		$	(0.81	)	$	0.90
After tax other than temporary impairment
charge on CDO investment		0.55			0.16			0.72			0.17
After tax (gain) loss on investment securities		0.01			(0.00	)		0.02			(0.01	)
After tax unrealized fair market value gain (loss) on
NPB Capital Trust II Preferred Securities		0.04			(0.06	)		0.06			(0.05	)
After tax insurance proceeds		(0.03	)		-			(0.03	)		-
After tax FDIC special assessment		-			-			0.03			-
Core earnings per share	$	(0.08	)	$	0.33		$	(0.01	)	$	1.01

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Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
PAGE:  1 OF 5	AS OF			AS OF			AS OF			AS OF			AS OF
BALANCE SHEET - ASSETS ($000s)	9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash & Cash Equivalents	$	400,191		$	348,371		$	389,024		$	195,830		$	152,909
Held to Maturity Securities		612,214			653,184			299,645			326,090			391,725
Securities Available for Sale		1,636,023			1,504,155			1,614,393			1,593,799			1,587,852
Total Securities		2,248,237			2,157,339			1,914,038			1,919,889			1,979,577
Total Cash and Securities		2,648,428			2,505,710			2,303,062			2,115,719			2,132,486
Loans & Leases Held for Sale		9,279			23,326			17,806			3,605			5,317
Loans & Leases Held for Investment		6,190,405			6,283,523			6,347,246			6,312,269			6,189,567
Total Loans and Leases		6,199,684			6,306,849			6,365,052			6,315,874			6,194,884
Loan Loss Reserve		(125,490	)		(98,313	)		(86,273	)		(84,006	)		(83,696	)
Premises and Equipment, net		113,712			114,635			116,885			119,924			119,705
Premises held for sale		812			812			812			3,768			3,890
Bank Owned Life Insurance		197,132			196,001			194,883			193,811			192,594
Goodwill		555,789			555,964			556,031			558,252			546,270
Other Intangibles		32,854			33,654			35,557			37,496			38,768
Total Intangible Assets		588,643			589,618			591,588			595,748			585,038
Unconsolidated Investments Under the Equity Method		11,718			13,279			12,966			11,874			11,470
ORE and Repossessed Assets		826			1,359			1,862			1,552			1,624
Other Assets		104,845			127,963			132,205			129,167			158,800
Total Assets	$	9,740,310		$	9,757,913		$	9,633,042		$	9,403,431		$	9,316,795
BALANCE SHEET - LIABILITIES ($000s)
Interest-bearing Deposits	$	6,080,203		$	6,070,056		$	5,929,420		$	5,596,617		$	5,437,824
Noninterest-bearing Deposits	$	718,459		$	741,598		$	730,814		$	793,269		$	782,819
Borrowings		1,414,817			1,525,578			1,584,684			1,607,290			1,838,928
Subordinated Debt (Trust Preferred Securities)		136,076			129,827			129,877			127,980			134,507
Other Liabilities		30,649			74,231			82,145			98,280			76,704
Total Liabilities	$	8,380,204		$	8,541,290		$	8,456,940		$	8,223,436		$	8,270,782
BALANCE SHEET - EQUITY ($000s)
Preferred Stock	$	144,738		$	144,517		$	144,297		$	144,076		$	-
Common Stock		1,227,032			1,072,921			1,019,548			1,003,110			980,894
Retained (Deficit) Earnings		(16,908	)		52,143			65,765			65,194			115,291
Accumulated Other Comprehensive loss	$	5,244		$	(52,958	)	$	(53,508	)	$	(32,385	)	$	(50,172	)
Treasury Stock		-			-			-			-			-
Total Shareholders Equity	$	1,360,106		$	1,216,623		$	1,176,102		$	1,179,995		$	1,046,013
MEMO ITEMS
Held to Maturity Securities (Fair Value)	$	635,398		$	618,282		$	271,423		$	284,608		$	305,164
Common Book Value Per Share	$	9.67		$	11.23		$	12.43		$	12.83		$	13.09
Total Book Value Per Share	$	10.82		$	12.74		$	14.17		$	14.62		$	-
Tangible Common Book Value Per Share	$	4.99		$	5.05		$	5.30		$	5.45		$	5.77
Tangible Total Book Value Per Share	$	6.14		$	6.57		$	7.04		$	7.24		$	-
EOP Common Shares Outstanding (excluding Treasury shares)		125,658,738			95,507,091			83,005,701			80,731,751			79,886,282
Treasury Shares Held By Company		-			-			-			-			-
Common Stock Dividends (total $ in period)	$	4,085		$	4,199		$	13,800		$	13,805		$	13,541
Dividends per Common Share	$	0.0500		$	0.0500		$	0.1700		$	0.1725		$	0.1700
Number of Shares to be Repurchased in Plans		-			-			-			-			-
Number of Shares Repurchased During Period		-			-			-			-			-
Average Price of Repurchased Shares	$	-		$	-		$	-		$	-		$	-

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
PAGE:  2 OF 5
	FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER			YEAR			YEAR
	ENDED			ENDED			ENDED			ENDED			ENDED			TO DATE			TO DATE
INCOME STATEMENT ($000s)	9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008			9/30/2009			9/30/2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest Income	$	105,240		$	105,644		$	105,951		$	115,613		$	120,717		$	316,835		$	350,623
Interest Expense		40,042			44,768			47,321			52,515			53,769			132,131			160,983
Net Interest Income		65,198			60,876			58,630			63,098			66,948			184,704			189,640
Provision for Loan and Lease Losses		52,000			37,500			17,525			18,500			6,876			107,025			13,997
Net Interest Income after Provision for Loan and Lease Losses		13,198			23,376			41,105			44,598			60,072			77,679			175,643
Wealth Management Income		7,670			7,232			6,615			7,543			8,239			21,517			24,362
Service Charges on Deposits		6,247			6,071			5,800			6,685			6,880			18,118			18,465
Cash Management and Electronic Banking Fees		4,041			3,995			3,648			3,826			3,917			11,684			10,560
Mortgage Banking Income		1,884			2,834			2,420			856			882			7,138			2,451
Insurance Commissions and Fees		3,771			4,016			3,957			3,691			3,913			11,744			11,687
Bank Owned Life Insurance Income		1,131			1,275			1,072			1,217			1,702			3,478			5,124
Equity in Unconsolidated Investments		(525	)		314			1,091			1,550			1,574			880			2,996
Net gains (losses) from Fair Value changes		(6,249	)		51			(1,898	)		6,527			7,641			(8,096	)		5,490
Net gains (losses)on Investment Securities		(863	)		-			(2,284	)		12			276			(3,147	)		660
Total Impairment Losses on Investment Securities		(84,704	)		(14,347	)		(26,595	)		n/a			n/a			(125,646	)		n/a
Non credit-related impairment on securities no expected to be sold		-			7,211			18,810			n/a			n/a			26,021			n/a
Net Impairment losses on investment securities		(84,704	)		(7,136	)		(7,785	)		(79,496	)		(20,000	)		(99,625	)		(20,000	)
Other Non-Interest Income		3,460			2,863			2,579			1,385			1,826			8,902			7,167
Total Non-Interest Income (Loss)		(64,137	)		21,515			15,215			(46,204	)		16,850			(27,407	)		68,962
Salaries, Wages and Employee Benefits		30,505			32,249			32,017			30,807			31,998			94,771			92,525
Net Premises and Equipment Expense		8,104			7,335			8,598			7,108			8,416			24,037			25,442
Amortization of Intangibles		1,899			1,903			1,940			1,996			1,981			5,742			5,527
Other Non-Interest Expense		15,672			16,540			14,138			15,293			11,692			46,350			33,333
FDIC Insurance special assessment		-			4,625			-			-			-			4,625			-
Fraud Expense (Recovery)		(4,028	)		-			-			4,500			-			(4,028	)		-
Total Non-Interest Expense		52,152			62,652			56,693			59,704			54,087			171,497			156,827
Net Income (Loss) Before Taxes		(103,091	)		(17,761	)		(373	)		(61,310	)		22,835			(121,225	)		87,778
Income Tax (Benefit) Expense		(40,000	)		(10,213	)		(4,173	)		(25,546	)		3,607			(54,386	)		19,743
Net Income (Loss)		(63,091	)		(7,548	)		3,800			(35,764	)		19,228			(66,839	)		68,035
Preferred dividends/accretion of preferred discount		(2,096	)		(2,095	)		(2,054	)		(417	)		-			(6,245	)		-
Net Income (Loss) available to Common Shareholders	$	(65,187	)	$	(9,643	)	$	1,746		$	(36,181	)	$	19,228		$	(73,084	)	$	68,035
Net Interest Income (FTE)	$	70,827		$	66,573		$	64,426		$	68,952		$	72,532		$	201,826		$	204,707
EARNINGS PER SHARE:
Basic earnings (loss)	$	(0.63	)	$	(0.09	)	$	0.05		$	(0.45	)	$	0.24		$	(0.74	)	$	0.91
Basic earnings (loss) available to common shareholders	$	(0.65	)	$	(0.11	)	$	0.02		$	(0.45	)	$	0.24		$	(0.81	)	$	0.91
Diluted earnings (loss)	$	(0.63	)	$	(0.09	)	$	0.05		$	(0.45	)	$	0.23		$	(0.74	)	$	0.90
Diluted earnings (loss) available to common shareholders	$	(0.65	)	$	(0.11	)	$	0.02		$	(0.45	)	$	0.23		$	(0.81	)	$	0.90
Average Shares Basic		100,064,355			87,415,723			81,497,806			79,341,618			79,741,702			89,760,302			74,833,736
Average Shares Diluted		100,064,355			87,415,723			81,891,272			79,341,618			80,495,907			89,760,302			75,470,534
SUPPLEMENTAL DATA ($000s)
Return on Avg. Assets (annualized)		-2.57	%		-0.31	%		0.16	%		-1.53	%		0.83	%		-0.93	%		1.04	%
Return on Avg.Total Equity (annualized)		-20.01	%		-2.52	%		1.31	%		-13.20	%		7.29	%		-7.39	%		9.34	%
Return on Avg. Common Equity (annualized)		-22.63	%		-2.87	%		1.49	%		-13.61	%		7.29	%		-8.40	%		9.34	%
Return on Avg. Total Tangible Equity (annualized)		-37.82	%		-4.97	%		2.64	%		-28.83	%		16.50	%		-14.45	%		20.62	%
Return on Avg. Common Tangible Equity (annualized)		-48.40	%		-6.52	%		3.51	%		-30.86	%		16.50	%		-18.86	%		20.62	%
Reconciliation Table for Non-GAAP Financial Measures
Return on average total shareholders' equity		-20.01	%		-2.52	%		1.31	%		-13.20	%		7.29	%		-7.39	%		9.34	%
Effect of goodwill and intangibles		-17.81	%		-2.45	%		1.33	%		-15.62	%		9.21	%		-7.06	%		11.28	%
Return on average total tangible equity		-37.82	%		-4.97	%		2.64	%		-28.83	%		16.50	%		-14.45	%		20.62	%
Average total tangible equity excludes acquisition related average goodwill and intangibles:
Average total shareholders' equity	$	1,250,619		$	1,199,198		$	1,176,494		$	1,077,773		$	1,049,144		$	1,209,042		$	973,495
Average goodwill and intangibles		(588,842	)		(590,593	)		(592,816	)		(584,221	)		(585,544	)		(590,736	)		(532,771	)
Average total tangible equity	$	661,777		$	608,605		$	583,678		$	493,552		$	463,600		$	618,306		$	440,724
Return on average common shareholders' equity		-22.63	%		-2.87	%		1.49	%		-13.61	%		-			-8.40	%		-
Effect of goodwill and intangibles		-25.77	%		-3.65	%		2.02	%		-17.25	%		-			-10.46	%		-
Return on average common tangible equity		-48.40	%		-6.52	%		3.51	%		-30.86	%		-			-18.86	%		-
Average common tangible equity excludes acquisition related average goodwill and intangibles:
Average common shareholders' equity	$	1,105,988		$	1,054,790		$	1,031,883		$	1,045,212			-		$	1,064,492			-
Average goodwill and intangibles		(588,842	)		(590,593	)		(592,816	)		(584,221	)		-			(590,736	)		-
Average common tangible equity	$	517,146		$	464,197		$	439,067		$	460,991			-		$	473,756			-

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
PAGE:  3 of 5
	FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER			YEAR			YEAR
	ENDED			ENDED			ENDED			ENDED			ENDED			TO DATE			TO DATE
CHARGEOFFS ($000s)	9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008			9/30/2009			9/30/2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Loan Chargeoffs	$	29,202		$	27,759		$	16,044		$	18,946		$	7,097		$	73,005		$	14,606
Recoveries on Loans		(4,379	)		(2,299	)		(786	)		(756	)		(2,276	)		(7,464	)		(3,524	)
Net Loan Chargeoffs	$	24,823		$	25,460		$	15,258		$	18,190		$	4,821		$	65,541		$	11,082
Net Loan Chargeoffs to Average Loans (non-annualized)		0.40	%		0.40	%		0.24	%		0.29	%		0.08	%		1.03	%		0.19	%
NET CHARGE OFF ASSETS-DETAIL
Commercial, Financial and Agricultural	$	(11,819	)	$	(14,791	)	$	(6,597	)	$	(10,901	)
Real Estate-Permanent		(2,485	)		(3,029	)		6			(378	)
Real Estate-Construction		(7,835	)		(5,038	)		(1,234	)		(4,103	)
Leases		19			(274	)		(88	)		-
Residential Mortgages		(860	)		(978	)		(565	)		(1,534	)
Consumer		(1,688	)		(1,235	)		(6,633	)		(1,048	)
Overdraft		(155	)		(115	)		(147	)		(226	)
Net Loans Charged-off	$	(24,823	)	$	(25,460	)	$	(15,258	)	$	(18,190	)
	AS OF			AS OF			AS OF			AS OF			AS OF
ASSET QUALITY AND OTHER DATA ($000s)	9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Nonaccrual Loans	$	116,418		$	119,615		$	59,871		$	31,972		$	25,562
Renegotiated Loans		589			603			614			623			628
Other Real Estate Owned & Repossessed Assets		826			1,359			1,862			1,552			1,623
Total Non-performing Assets	$	117,833		$	121,577		$	62,347		$	34,147		$	27,813
Loans 90+ Days Past Due & Still Accruing		3,113			2,763			2,659			2,991			2,551
Non-performing + Loans 90 Days Past Due	$	120,946		$	124,340		$	65,006		$	37,138		$	30,364
Allowance for Loan and Lease Losses	$	125,490		$	98,313		$	86,273		$	84,006		$	83,696
Coverage Ratio		103.8	%		79.1	%		132.7	%		226.2	%		275.6	%
Classified Loans	$	483,163		$	375,842		$	263,332		$	196,349		$	167,049
Classified Loans to Total Loans		7.79	%		5.96	%		4.14	%		3.11	%		2.70	%
NON PERFORMING ASSETS-DETAIL
Commercial, Financial and Agricultural	$	42,226		$	38,416		$	26,479		$	11,657
Real Estate-Permanent		15,255			10,332			2,327			1,730
Real Estate-Construction		43,497			56,567			18,357			10,884
Leases		461			445			789			600
Residential Mortgages		8,934			7,543			6,155			3,950
Consumer		6,796			7,624			7,402			4,557
Loans Past Due 90+Days		3,113			2,763			2,659			2,991
Total Other Repossessed Assets		664			650			838			769
Total Non-performing Assets + Loans 90 Days Past Due	$	120,946		$	124,340		$	65,006		$	37,138
	AS OF			AS OF			AS OF			AS OF			AS OF
REGULATORY CAPITAL DATA ($000s)	9/30/2009			6/30/2009			3/31/2009			12/31/2008			9/30/2008
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Tier 1 Capital	$	827,685		$	809,600		$	764,426		$	741,622		$	644,185
Tier 1 Ratio (%)		12.46	%		11.31	%		10.44	%		10.65	%		9.34	%
Total Capital (Tier 1 + Tier 2)	$	911,234		$	899,239		$	854,019		$	825,628		$	728,068
Total Capital Ratio (%)		13.72	%		12.56	%		11.61	%		11.85	%		10.56	%
Total Risk-Adjusted Assets	$	6,642,041		$	7,160,809		$	7,324,455		$	6,965,197		$	6,897,519
Tier 1 Leverage Ratio		9.00	%		8.80	%		8.62	%		8.50	%		7.43	%
Tangible Common Equity to Tangible Assets		6.85	%		5.26	%		4.87	%		5.00	%		5.28	%
Tangible Equity to Tangible Assets Ratio		8.43	%		6.84	%		6.46	%		6.84	%		5.28	%

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
	PAGE:  4 of 5
		AS OF		AS OF		AS OF		AS OF		AS OF
PERIOD END BALANCES:		9/30/2009		6/30/2009		3/31/2009		12/31/2008		9/30/2008
		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Earning Assets / Liabilities
Loan Breakdown:  (Regulatory)
Commercial/Industrial		$	1,098,501	$	1,139,020	$	1,182,486	$	1,192,357	$	1,148,744
Commercial Real Estate			1,787,829		1,845,085		1,840,278		1,808,017		1,718,769
Residential Mortgage (including multi-family)			1,443,030		1,481,807		1,515,548		1,526,276		1,530,419
Real Estate Construction and Land Development			637,231		626,816		617,853		588,458		582,370
Home Equity (revolving and 2nd lien)			804,415		800,122		800,304		791,975		782,061
Consumer (Loans to Individuals)			254,909		244,048		235,228		228,438		229,309
Other Loans			173,769		169,951		173,355		180,353		203,212
Total Loans (net of unearned)			6,199,684		6,306,849		6,365,052		6,315,874		6,194,884
Investment Securities			2,248,237		2,157,339		1,914,039		1,919,889		1,979,578
Other Earning Assets			44,511		25,630		39,622		38,946		63,117
Total Earning Assets (net of loan loss reserve)		$	8,366,942	$	8,391,505	$	8,232,440	$	8,190,703	$	8,178,346
Deposit Breakdown:
Savings		$	395,965	$	393,163	$	382,705	$	362,709	$	370,396
NOW Accounts			1,221,170		1,127,352		967,221		1,010,532		899,281
Money Market Accounts			1,700,338		1,666,807		1,719,492		1,591,131		1,640,901
CDs $100m or less			1,630,528		1,709,667		1,730,061		1,760,030		1,673,683
CDs greater than $100m			1,132,202		1,173,067		1,129,941		872,216		853,560
Total Int. Bearing Deposits			6,080,203		6,070,056		5,929,420		5,596,618		5,437,821
Short-Term Borrowings			635,911		683,409		653,805		651,307		859,415
Long-Term Debt			914,982		971,996		1,060,756		1,083,963		1,114,020
Total Int. Bearing Liabilities		$	7,631,096	$	7,725,461	$	7,643,981	$	7,331,888	$	7,411,256
Loan Breakdown: (Internal)
Commercial Real Estate
Non Owner Occupied
- Permanent		$	836,718	$	846,291	$	782,840	$	770,663	$	767,218
- Construction / Development			443,775		481,965		494,224		453,462		447,550
Commercial & Industrial
Business Purpose, Real Estate secured			1,046,236		1,041,668		1,112,769		1,140,578		929,398
Business Purpose, not secured by Real Estate			1,202,023		1,240,604		1,292,103		1,291,629		1,381,315
Owner Occupied Commercial Real Estate
- Permanent			595,849		609,192		582,611		553,720		548,969
- Construction / Development			53,976		58,453		46,036		40,952		44,013
Leasing			18,351		18,442		19,205		20,246		20,512
Residential Mortgage (personal purpose)
Perm			839,459		868,149		891,142		907,125		914,465
Construction			14,037		14,305		17,583		19,073		17,600
Retail
Home Equity Loans and Direct Installment loans			510,178		531,757		565,284		606,625		623,361
Home Equity Lines of Credit			280,813		262,521		239,794		212,468		177,514
Private Banking Credit Lines			172,113		166,542		157,734		159,774		174,194
Indirect Vehicle loans			144,158		138,017		130,279		125,276		124,712
Other			41,998		28,944		33,448		14,283		24,064
Total Loans		$	6,199,684	$	6,306,849	$	6,365,052	$	6,315,874	$	6,194,884

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/09
	PAGE 5 OF 5

BALANCE AND YIELD/COST ANALYSIS:	AS OF					AS OF					AS OF					AS OF					AS OF					YTD					YTD
	9/30/2009					6/30/2009					3/31/2009					12/31/2008					9/30/2008					9/30/2009					9/30/2008
	(unaudited)					(unaudited)					(unaudited)					(unaudited)					(unaudited)					(unaudited)					(unaudited)
	Qtr Avg Bal		Yield			Qtr Avg Bal		Yield			Qtr Avg Bal		Yield			Qtr Avg Bal		Yield			Qtr Avg Bal		Yield			YTD Avg Bal		Yield			YTD Avg Bal		Yield
Total Loans (net of unearned)	$	6,280,351		5.38	%	$	6,365,343		5.39	%	$	6,366,859		5.47	%	$	6,267,958		6.10	%	$	6,159,589		6.33	%	$	6,337,201		5.41	%	$	5,829,145		6.54	%
Investment Securities		2,167,261		4.72	%		1,972,633		5.24	%		1,946,768		5.39	%		1,953,569		5.16	%		2,000,340		5.61	%		2,029,770		5.10	%		1,908,169		5.59	%
Other Earning Assets		37,686		0.22	%		35,612		0.26	%		36,666		0.24	%		26,811		0.83	%		26,058		1.04	%		36,622		0.24	%		24,345		3.16	%
Total Earning Assets		8,485,298		5.18	%		8,373,588		5.33	%		8,350,293		5.43	%		8,248,338		5.86	%		8,185,987		6.14	%		8,403,593		5.31	%		7,761,659		6.29	%
Total Earning Assets (net of loan loss reserve)		8,376,718		5.25	%		8,280,428		5.39	%		8,261,145		5.49	%		8,163,407		5.92	%		8,102,336		6.20	%		8,306,595		5.38	%		7,682,250		6.36	%
Total Assets		9,724,872		4.52	%		9,790,331		4.56	%		9,461,229		4.79	%		9,312,607		5.19	%		9,258,341		5.43	%		9,659,694		4.62	%		8,728,004		5.60	%
Savings		396,626		0.28	%		387,596		0.27	%		370,302		0.35	%		365,925		0.47	%		385,964		0.53	%		384,938		0.30	%		360,929		0.59	%
NOW Accounts		1,162,730		0.58	%		1,110,985		0.82	%		973,386		0.83	%		973,959		1.18	%		883,993		1.09	%		1,083,061		0.74	%		875,290		1.35	%
Money Market Accounts		1,695,479		1.10	%		1,708,680		1.25	%		1,672,706		1.63	%		1,592,120		2.14	%		1,688,004		2.29	%		1,692,372		1.32	%		1,583,864		2.44	%
Certificates		2,822,447		2.72	%		2,935,996		3.08	%		2,722,419		3.37	%		2,594,983		3.50	%		2,449,391		3.75	%		2,827,321		3.05	%		2,291,054		4.01	%
Total Int. Bearing Deposits		6,077,282		1.70	%		6,143,257		1.98	%		5,738,813		2.24	%		5,526,987		2.50	%		5,407,352		2.63	%		5,987,692		1.97	%		5,111,137		2.83	%
Non-Interest Bearing Deposits		737,745					736,155					709,490					762,598					758,990					727,708					720,580
Total Deposits		6,815,027		1.52	%		6,879,412		1.77	%		6,448,303		1.99	%		6,289,585		2.20	%		6,166,342		2.31	%		6,715,400		1.75	%		5,831,717		2.48	%
Short-Term Borrowings		644,753		1.83	%		634,077		1.92	%		670,436		2.19	%		766,184		2.68	%		774,760		2.67	%		649,644		1.98	%		713,452		2.96	%
Long-Term Borrowings		946,017		4.62	%		995,619		4.58	%		1,072,044		4.56	%		1,105,217		4.53	%		1,165,047		4.37	%		1,004,098		4.58	%		1,121,623		4.41	%
Total Int. Bearing Liabilities (incl. non-int bearing deposits)		8,405,797		1.89	%		8,509,108		2.11	%		8,190,783		2.34	%		8,160,986		2.56	%		8,106,149		2.64	%		8,369,142		2.11	%		7,666,792		2.80	%
Total Int. Bearing Liabilities		7,668,052		2.07	%		7,772,953		2.31	%		7,481,293		2.57	%		7,398,388		2.82	%		7,347,159		2.91	%		7,641,434		2.31	%		6,946,212		3.10	%
Net Yield on Earning Assets (net of loan loss reserve): (Margin)				3.35	%				3.22	%				3.16	%				3.36	%				3.56	%				3.25	%				3.56	%
Net Yield on Earning Assets: (Margin)				3.31	%				3.19	%				3.13	%				3.33	%				3.52	%				3.21	%				3.52	%
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		124					124					124					124					124
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)		1					1					1					1					1
Total Number of ATMs		136					138					138					138					142
MD
Total Number of Banking Offices		1					1					1					1					1
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)		0					0					0					0					0
Total Number of ATMs		1					1					1					1					1
DE
Total Number of Banking Offices		2					2					2					2					2
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)		1					1					1					1					1
Total Number of ATMs		2					2					2					2					2
TOTAL
Total Number of Banking Offices		127					127					127					127					127
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)		2					2					2					2					2
Total Number of ATMs		139					141					141					141					145
EOP Employees (Full Time Equivalent)		1,779					1,825					1,785					1,780					1,768
Wealth Assets:
Assets under administration		8,471,813					8,133,044					7,851,843					7,912,771					8,315,474
Assets under management (included above)		2,549,386					2,426,525					2,280,512					2,414,271					2,663,259