National Penn Bancshares (NPBC) 8-K National Penn Bancshares, Inc. Reports Record Second Quarter Net Income

Exhibit 99.1

  PRESS RELEASE

Immediate

Catharine S. Bower, Communications Manager, 610-369-6618

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

BOYERTOWN, Pa., July 19, 2005 -- National Penn Bancshares, Inc. (Nasdaq: NPBC), the parent company of National Penn Bank, reported second quarter 2005 net income totaling $14.68 million, or $0.42 per diluted share. Net income increased 20.5% compared to $12.18 million earned in the second quarter of 2004, and diluted earnings per share increased 10.5% compared to diluted earnings per share of $0.38 in second quarter 2004.

For the first six months of 2005, net income totaled a record $28.69 million, or $0.82 per diluted share. Compared to the first six months of 2004, net income increased 21.8% and diluted earnings per share increased 9.3%.

National Penn’s second quarter earnings produced annualized returns on average assets and average shareholders’ equity of 1.29% and 13.60%, respectively. For the first six months of 2005, the annualized returns on average assets and average shareholders’ equity were 1.28% and 13.34%, respectively.

Second quarter 2005 highlights included the following:

·   Record earnings in second quarter 2005 reflect in part National Penn’s increase in total assets, as compared to second quarter 2004. National Penn’s June 10, 2004 acquisition of Peoples First, Inc. and its subsidiary, The Peoples Bank of Oxford, brought National Penn $456 million in additional assets, including $362 million in additional loans, as well as $381 million in additional deposits.

·   Second quarter 2005 earnings also reflect increased non-interest income. Insurance commissions and related fees increased $934,000, service charges on deposit accounts increased $487,000, mortgage banking income increased $467,000, various service charges and fees increased $289,000, wealth management income increased $229,000, and cash management and electronic banking fees increased $153,000 over comparable amounts in second quarter 2004.

·   At the annual meeting of National Penn shareholders held on April 25, 2005, shareholders elected Robert L. Byers, Frederick P. Krott, Patricia L. Langiotti and Kenneth A. Longacre to three-year terms as National Penn directors. Shareholders also approved a new Long-Term Incentive Compensation Plan at the annual meeting.

·   On May 23, 2005, Investors Trust Company, a National Penn subsidiary, was converted to a limited purpose national trust bank to be known as National Penn Investors Trust Company. This conversion has provided National Penn with a single unified entity to offer various wealth management products and services under the National Penn brand.

·   On June 25, 2005, National Penn implemented the Direct Registration form of stock ownership. This book-entry form of registration will facilitate the transfer of National Penn stock, and should be a major convenience for our shareholders. For more information on this change, please call our transfer agent, Mellon Investor Services at 1-800-720-0181 or go to their website at www.melloninvestor.com/isd.

·   During the quarter, National Penn rolled out a new advertising and marketing campaign to support and raise the company’s profile and increase awareness among key audiences. This multi media, broad based campaign is primarily focused on increasing the number of relationships that each customer household has with National Penn and attracting new clients.

As of June 30, 2005, National Penn had total assets of $4.594 billion and total deposits of $3.060 billion. The allowance for loan and lease losses as of June 30, 2005 was $56.035 million, which represented 1.88% of total loans and leases outstanding of $2.984 billion.

Commenting on second quarter 2005, Wayne R. Weidner, National Penn Chairman and CEO, said: “Second quarter 2005’s earnings of $14.7 million are a new record for us. National Penn’s client-focused business model continues to benefit the company and its shareholders.”

Glenn E. Moyer, National Penn President, said: “Despite operating challenges facing our industry, we are very pleased with our performance in the second quarter. We continue to listen to our clients and respond with solutions that meet their needs. As an example, during the second quarter we developed a new Prime Choice CD. This CD allows a client to choose a one or two-year term and enjoy a rate that “floats” at 60% of the published Prime Rate. The initial response to this competitively priced product has been favorable. We continue to take great pride in our reputation as a proven and respected local financial services company. Our co-workers are striving every day to create a strong financial future for our clients and our company.”

# # #

National Penn Bancshares, Inc. is a $4.59 billion financial services company operating 73 community offices in southeastern Pennsylvania through National Penn Bank and its FirstService Bank, HomeTowne Heritage Bank, and The Peoples Bank of Oxford Divisions. The Peoples Bank of Oxford Division also operates one community office in Cecil County, Maryland. National Penn Investors Trust Company, with client assets approaching $1.6 billion, provides trust and investment management services as well as brokerage services marketed through National Penn Investment Services and provided by Primevest Financial Services, Inc.; and investment advisory services through FirstService Capital, Inc. National Penn Bancshares also provides mortgage banking activities through National Penn Mortgage Company; insurance services through National Penn Insurance Agency, Inc.; and equipment leasing services through National Penn Leasing Company. 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 National Penn's Web site at 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 net income return on average tangible equity, excludes the average balance of 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 measure 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.

_________

This press release contains forward-looking statements concerning future events. Actual results could differ materially due to deteriorating economic conditions; increased competition; interest rate movements; market volatility in the securities markets; legislative or regulatory developments; merger-related synergies, savings and integration issues; technological changes; reputational risks; and other risks and uncertainties discussed in National Penn’s reports filed from time to time with the Securities and Exchange Commission, which are incorporated herein by reference. National Penn cautions you not to place undue reliance on these statements. National Penn undertakes no obligation to publicly release or update any of these statements.

National Penn Bancshares, Inc.
Contact: Gary L. Rhoads, 610-369-6341
Exchange Listing Nasdaq "NPBC"
(Dollars in thousands, except per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
	2005		2004		2005			2004
STATEMENTS OF CONDITION
Total assets					$	4,593,900		$	4,254,345
Total deposits						3,059,627			2,854,264
Total loans and leases						2,984,045			2,772,460
Total shareholders' equity						438,835			397,872
Book value per share						12.66			11.58
EARNINGS
Total interest income	$	59,893	$	46,225	$	116,830		$	90,399
Total interest expense		22,508		13,821		42,459			26,570
Net interest income		37,385		32,404		74,371			63,829
Provision for loan and lease losses		950		1,200		1,700			2,963
Net interest income after provision
for loan and lease losses		36,435		31,204		72,671			60,866
Other income		14,511		11,313		28,470			22,075
Other expenses		31,065		26,244		62,158			51,765
Income before income taxes		19,881		16,273		38,983			31,176
Income taxes		5,202		4,093		10,294			7,628
Net income		14,679		12,180		28,689			23,548
Return on average assets						1.28	%		1.30	%
Return on average shareholders' equity						13.3	%		15.2	%
Return on average tangible equity (1)						25.4	%		24.7	%
Average shares - basic						34,558,942			30,758,795
Average shares - diluted						35,179,726			31,457,078
PER SHARE
Basic earnings	$	0.42	$	0.40	$	0.83		$	0.77
Diluted earnings		0.42		0.38		0.82			0.75
Dividends paid in cash		0.20		0.19		0.40			0.38
Financial information restated for a 5 for 4 stock split paid September 30, 2004.
(1) Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity						13.3	%		15.2	%
Effect of goodwill and intangibles						12.1	%		9.5	%
Return on average tangible equity						25.4	%		24.7	%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity					$	433,630		$	311,489
Average goodwill and intangibles						(205,551	)		(120,419	)
Average tangible equity						228,079			191,070

 

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05
Date   7/18/2005
	PAGE: 1 OF 7	AS OF			AS OF			AS OF
BALANCE SHEET - ASSETS ($000s)		6/30/2005			6/30/2004			12/31/2004
Cash & Cash Equivalents		$	133,578		$	146,606		$	93,894
Trading Account Securities			-			-			-
Securities Available for Sale			1,031,070			1,010,776			1,098,836
Held to Maturity Securities			117,465			-			90,967
Other Securities			-			-			-
Total Securities			1,148,535			1,010,776			1,189,803
Total Cash and Securities			1,282,113			1,157,382			1,283,697
Loans & Leases Held for Investment*			2,969,344			2,715,589			2,862,638
Loans & Leases Held for Sale*			14,701			56,871			11,801
Total Loans and Leases*			2,984,045			2,772,460			2,874,439
*Indicates data net of discount, gross of reserve
Loan Loss Reserve			(56,035	)		(57,410	)		(57,590	)
Goodwill			187,693			178,493			186,945
Other Intangibles			17,276			19,043			18,462
Total Intangible Assets			204,969			197,536			205,407
Mortgage Servicing Rights			-			-			-
Purchased Credit Card Relationships			-			-			-
Real Estate Owned & Held for Investment			16			747			-
Assets from Discontinued Operations			-			-			-
Other Assets			178,792			183,630			172,840
Total Assets		$	4,593,900		$	4,254,345		$	4,478,793
BALANCE SHEET - LIABILITIES ($000S)
Deposits		$	3,059,627		$	2,854,264		$	3,143,193
Borrowings			928,106			848,838			743,977
Trust Preferred Securities			-			-			-
Subordinated Debt			127,063			127,063			127,063
Liabilities from Discontinued Operations			-			-			-
Other Liabilities			40,269			26,308			36,435
Total Liabilities		$	4,155,065		$	3,856,473		$	4,050,668
BALANCE SHEET - EQUITY ($000s)
Redeemable Preferred Stock		$	-		$	-		$	-
Preferred Equity		$	-		$	-		$	-
Common Equity		$	438,835		$	397,872		$	428,125
MEMO ITEMS
Accumulated other comprehensive income		$	13,398		$	4,315		$	19,915
Publicly Reported Book Value Per Share (1)		$	12.66		$	11.58		$	12.41
EOP Common Shares Outstanding (excluding Treasury shares)(1)			34,671,672			34,365,494			34,510,798
Treasury Shares Held By Company (1)			16,649			10,268			87,960
Did you announce a repurchase plan during this period?			NO			NO			NO
Number of Shares to be Repurchased in Plan (1)			1,250,000			1,250,000			1,250,000
Number of Shares Repurchased During Period (1)			26,650			132,805			108,810
Average Price of Repurchased Shares (1)		$	23.94		$	26.49		$	27.54
(1) restated for a 5 for 4 stock split paid September 30, 2004.

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05
	PAGE: 2 OF 7
		FOR QUARTER			FOR QUARTER				FOR QUARTER		YEAR
		ENDED			ENDED		YTD		ENDED		ENDED
INCOME STATEMENT ($000s)		3/31/2005			6/30/2005		6/30/2005		6/30/2004		12/31/2004
Interest Income		$	56,937		$	59,893	$	116,830	$	46,225	$	198,775
Interest Expense			19,951			22,508		42,459		13,821		60,493
Net Interest Income			36,986			37,385		74,371		32,404		138,282
FTE adjustment			2,243			2,337		4,580		1,940		8,334
Net Interest Income (FTE)			39,229			39,722		78,951		34,344		146,616
Loan Loss Provision			750			950		1,700		1,200		4,800
Investment Securities Trans.			(37	)		646		609		-		549
Nonrecurring Income			922			-		922		-		-
Nonrecurring Expense			601			600		1,201		-		-
Trading Account Income			-			-		-		-		-
Foreign Exchange Income			-			-		-		-		-
Wealth Management Income			2,198			2,341		4,539		2,112		7,886
Service Charges on Deposits			3,791			4,075		7,866		3,588		15,230
Mortgage Banking Income			1,011			1,284		2,295		817		3,986
Other Noninterest Income			6,074			6,165		12,239		4,796		19,123
Total Noninterest Income(excludes securities gains/losses)			13,074			13,865		26,939		11,313		46,225
Employee Comp. & Benefit Expense			18,470			18,218		36,688		15,477		64,159
Occupancy & Equipment Expense			4,431			4,176		8,607		3,680		16,451
Foreclosed Property Expense			-			-		-		-		-
Amortization of Intangibles			594			592		1,186		359		1,902
(Excludes Servicing and Credit Card Intangibles)								-
Other Noninterest Expense			6,997			7,479		14,476		6,728		34,979
Total Noninterest Exp.			30,492			30,465		60,957		26,244		117,491
Minority Interest Expense			-			-		-		-		-
Net Income Before Taxes			19,102			19,881		38,983		16,273		62,765
Tax Provision			5,092			5,202		10,294		4,093		14,851
Net Inc. from continuing operations			14,010			14,679		28,689		12,180		47,914
Net inc. from discontinued operations			-			-		-		-		-
Net Income		$	14,010		$	14,679	$	28,689	$	12,180	$	47,914
EARNINGS PER SHARE:
Basic
Net income (1)		$	0.41		$	0.42	$	0.83	$	0.40	$	1.47
Diluted
Net income (1)		$	0.40		$	0.42	$	0.82	$	0.38	$	1.44
Average Shares Basic (1)			34,509,253			34,608,085		34,558,942		31,172,714		32,637,816
Average Shares Diluted (1)			35,322,930			35,175,826		35,179,726		31,870,997		33,351,257
Dividends on Preferred Stock ($000s)		$	-		$	-	$	-	$	-	$	-
(1) restated for a 5 for 4 stock split paid September 30, 2004.

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05
AVERAGE BALANCE SHEET ($OOOs)
		As of			For QTR			For QTR			For QTR
	PAGE: 3 of 7	6/30/2005			Ended 6/30/05			Ended 3/31/05			Ended 12/31/04
		(YTD AVG)			QTRLY AVG			QTRLY AVG			QTRLY AVG
Total Loans (net of unearned)			2,935,719			2,965,191			2,905,920			2,834,453
Loan Loss Reserve			(57,569	)		(57,291	)		(57,851	)		(58,109	)
Investment Securities (incl. trading assets)			1,182,181			1,170,563			1,193,928			1,115,338
Other Earning Assets			8,318			7,838			8,802			23,620
Total Earning Assets (net of loan loss reserve)			4,068,649			4,086,301			4,050,799			3,915,302
Total Assets			4,537,438			4,554,114			4,520,577			4,381,389
Savings	��		222,939			219,782			226,130			227,194
NOW Accounts			750,319			708,143			792,962			931,585
Money Market Accounts			625,708			613,339			638,215			652,716
Certificates			919,148			964,360			873,433			852,501
Total Int. Bearing Deposits			2,518,114			2,505,624			2,530,740			2,663,996
Non-Interest Bearing Deposits			513,152			521,630			504,583			517,864
Total Deposits			3,031,266			3,027,254			3,035,323			3,181,860
Short-Term Borrowings			661,677			680,342			642,805			385,765
Long-Term Borrowings			374,346			377,244			371,415			357,337
Total Int. Bearing Liabilities (incl. non-int bearing deposits)			4,067,289			4,084,840			4,049,543			3,924,962
Total Int. Bearing Liabilities			3,554,137			3,563,210			3,544,960			3,407,098
Total Shareholder's Equity			433,630			432,955			434,312			422,295

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05

	PAGE: 4 of 7
		FOR QUARTER			FOR QUARTER			FOR QUARTER			YEAR			YEAR
		ENDED			ENDED			ENDED			TO DATE			ENDED
CHARGEOFFS ($000s)		6/30/2005			6/30/2004			3/31/2005			6/30/2005			12/31/2004
Loan Chargeoffs		$	3,181		$	1,039		$	1,143		$	4,324		$	5,617
Recoveries on Loans		$	681		$	930		$	388		$	1,069		$	2,978
Net Loan Chargeoffs		$	2,500		$	109		$	755		$	3,255		$	2,639
			AS OF			AS OF			AS OF			AS OF
ASSET QUALITY AND OTHER DATA ($000s)			6/30/2005			6/30/2004			3/31/2005			12/31/2004
Nonaccrual Loans		$	14,190		$	10,690		$	12,237		$	11,103
Renegotiated Loans						-			-			-
Other Real Estate Owned			16			747			-			-
Total Nonperforming Assets			14,206			11,437			12,237			11,103
Loans 90+ Days Past Due & Still Accruing			191			195			973			870
NPAs plus Loans over 90		$	14,397		$	11,632		$	13,210		$	11,973
			AS OF			AS OF			AS OF			AS OF
REGULATORY CAPITAL DATA ($000s)			6/30/2005			6/30/2004			3/31/2005			12/31/2004
Tier 1 Capital		$	343,716		$	319,271		$	333,733		$	326,053
Tier 1 Ratio (%)			10.14	%		10.21	%		10.07	%		10.02	%
Total Capital (Tier 1 + Tier 2)		$	389,769		$	358,574		$	375,630		$	366,955
Total Capital Ratio (%)			11.49	%		11.47	%		11.33	%		11.27	%
Total Risk-Adjusted Assets		$	3,391,290		$	3,126,104		$	3,336,034		$	3,255,459
Tier 1 Leverage Ratio			7.94	%		8.96	%		7.79	%		7.86	%
			AS OF			AS OF			AS OF			YTD
SUPPLEMENTAL DATA ($000s)			6/30/2005			6/30/2004			3/31/2005			6/30/2005
1-4 Family Mortgage Loans Serviced For Others		$	100,213		$	79,185		$	106,142
Propriety Mutual Fund Balances		$	-		$	-		$	-
(Net Asset Value in $000s)
Held to Maturity Securities (Fair Value)		$	116,215		$	-		$	115,013
Return on Avg. Assets (annualized)			1.29	%		1.30	%		1.26	%		1.28	%
Return on Avg. Equity (annualized)			13.6	%		15.1	%		13.1	%		13.3	%
Return on Avg. Tangible Equity (annualized) (1)			25.9	%		25.2	%		24.9	%		25.4	%
Common Stock Dividends (total $ in period)		$	6,926		$	5,841		$	6,903		$	13,829
EOP Employees (Full Time Equivalent)			1,153			959			1,135
(1) Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity			13.6	%		15.1	%		13.1	%		13.3	%
Effect of goodwill and intangibles			12.3	%		10.1	%		11.8	%		12.1	%
Return on average tangible equity			25.9	%		25.2	%		24.9	%		25.4	%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity		$	432,955		$	323,640		$	434,312		$	433,630
Average goodwill and intangibles			(205,267	)		(129,799	)		(205,838	)		(205,551	)
Average tangible equity			227,688			193,841			228,474			228,079

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05
	PAGE: 5 of 7	AS OF		AS OF		AS OF
PERIOD END BALANCES:		6/30/2005		3/31/2005		12/31/2004
Loan Breakdown: (regulatory)
Commercial/Industrial		$	550,147	$	509,416	$	484,480
Commercial Real Estate			1,105,873		1,104,202		1,086,101
Residential Mortgage (including multi-family)			549,141		547,166		556,866
Real Estate Construction (and Land Development)			206,916		214,845		201,410
Home Equity (revolving and 2nd lien)			368,478		348,610		340,665
Consumer (Loans to Individuals)			56,962		57,999		63,843
Bank Card			-		-		-
Foreign			-		-		-
Other Loans			146,528		146,399		141,074
Total Loans (net of unearned)			2,984,045		2,928,637		2,874,439
Investment Securities (incl. trading assets)			1,148,535		1,185,956		1,189,803
Other Earning Asset			9,446		5,512		8,776
Total Earning Assets (net of loan loss reserve)			4,085,991		4,062,519		4,015,428
Total Assets			4,593,900		4,554,837		4,478,793
Deposit Breakdown:
Savings			218,540		224,053		229,874
NOW Accounts			672,981		716,899		891,456
Money Market Accounts			598,510		624,641		644,014
Certificates			621,132		623,754		615,001
CDs>$100m			417,302		269,163		246,948
Foreign CDs			-		-
Total Int. Bearing Deposits			2,528,465		2,458,510		2,627,293
Non-Interest Bearing Deposits			531,162		511,039		515,900
Total Deposits			3,059,627		2,969,549		3,143,193
Short-Term Borrowings			678,277		739,767		514,051
Long-Term Debt			376,892		377,447		356,989
Total Int. Bearing Liabilities (incl. non-int bearing deposits)			4,114,796		4,086,763		4,014,233
Total Int. Bearing Liabilities			3,583,634		3,575,724		3,498,333
Total Stockholders Equity		$	438,835	$	426,493	$	428,125

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05
	PAGE: 6 of 7
		AS OF		AS OF		AS OF
PERIOD END BALANCES:		6/30/2005		3/31/2005		12/31/2004
Loan Breakdown: (internal)
Business Purpose Loans		$	1,379,919	$	1,351,571	$	1,309,545
Residential Mortgage			287,538		287,917		294,641
Commercial Real Estate, Construction and Land Dev			984,510		975,983		961,515
Consumer (loans to Individual)			332,078		313,166		308,738
Total Loans (net of unearned)		$	2,984,045	$	2,928,637	$	2,874,439

Financial Update for NATL PENN BCSHS (NPBC) FOR 6/30/05																number of days					181
		PAGE 7 OF 7
BALANCE AND YIELD/COST ANALYSIS:				AS OF					AS OF					AS OF					YTD
				6/30/2005					3/31/2005					12/31/2004					6/30/2005
				Qtr Avg Bal		Yield			Qtr Avg Bal		Yield			Qtr Avg Bal		Yield			YTD Avg Bal		Yield
Total Loans (net of unearned)				$	2,965,191		6.47	%	$	2,905,920		6.25	%	$	2,834,453		6.10	%	$	2,935,719		6.36	%
Investment Securities (incl. trading assets)					1,170,563		4.92	%		1,193,928		4.88	%		1,115,338		4.87	%		1,182,181		4.90	%
Other Earning Assets					7,838		1.94	%		8,802		2.30	%		23,620		1.65	%		8,318		2.13	%
Total Earning Assets					4,143,592		6.02	%		4,108,650		5.84	%		3,973,411		5.73	%		4,126,218		5.93	%
Total Earning Assets (net of loan loss reserve)					4,086,301		6.11	%		4,050,799		5.92	%		3,915,302		5.82	%		4,068,648		6.02	%
Total Assets					4,554,114		5.48	%		4,520,577		5.31	%		4,381,389		5.20	%		4,537,438		5.40	%
Savings					219,782		0.86	%		226,130		0.80	%		227,194		0.74	%		222,939		0.83	%
NOWAccounts					708,143		1.55	%		792,962		1.42	%		931,585		1.44	%		750,319		1.48	%
Money Market Accounts					613,339		1.58	%		638,215		1.34	%		652,716		1.05	%		625,708		1.46	%
Certificates					964,360		3.22	%		873,433		3.07	%		852,501		2.96	%		919,148		3.15	%
Total Int. Bearing Deposits					2,505,624		2.14	%		2,530,740		1.92	%		2,663,996		1.77	%		2,518,114		2.03	%
Non-Interest Bearing Deposits					521,630					504,583					517,864					513,152
Total Deposits					3,027,254		1.77	%		3,035,323		1.60	%		3,181,860		1.48	%		3,031,266		1.68	%
Short-Term Borrowings					680,342		2.54	%		642,805		2.12	%		385,765		1.49	%		661,677		2.34	%
Long-Term Borrowings					377,244		5.15	%		371,415		5.07	%		357,337		5.12	%		374,346		5.11	%
Total Int. Bearing Liabilities(incl. non-int bearing deposits)					4,084,840		2.21	%		4,049,543		2.00	%		3,924,962		1.82	%		4,067,289		2.11	%
Total Int. Bearing Liabilities					3,563,210		2.53	%		3,544,960		2.28	%		3,407,098		2.09	%		3,554,137		2.41	%
Total Shareholder's Equity				$	432,955				$	434,312				$	422,295				$	433,630
Net Yield on Earning Assets (net of loan loss reserve): (Margin)							3.90	%				3.93	%				4.00	%				3.91	%
Net Yield on Earning Assets: (Margin)							3.85	%				3.87	%				3.94	%				3.86	%
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		MD			TOTAL
Total Number of Banking Offices					72		1			73
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)					1		0			1
Total Number of ATMs					75		1			76
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:			N/A
Reason:			N/A