National Penn Bancshares (NPBC) 8-K Reports First Quarter Net Income

EXHIBIT 99.1

| News Release

National Penn Bancshares, Inc.

Reports First Quarter Net Income

Contact:	Catharine S. Bower, Communications Manager
	(610) 369-6618 or csbower@natpennbank.com

BOYERTOWN, Pa., April 17, 2007 -- National Penn Bancshares, Inc. (Nasdaq: NPBC), the parent company of National Penn Bank, reported first quarter 2007 net income totaling $15.5 million, or $0.32 per diluted share. Net income increased 3.0% compared to $15.0 million earned in the first quarter of 2006, and diluted earnings per share matched diluted earnings per share of $0.32 in first quarter 2006.¹

National Penn’s first quarter earnings produced annualized returns on average assets and average shareholders’ equity of 1.15% and 11.61%, respectively. For the first three months of 2006, the annualized returns on average assets and average shareholders’ equity were 1.24% and 13.00%, respectively.

The following significant events have occurred recently:

·   National Penn Investors Trust Company expanded its market area to the west with the opening of a new location in York, Pennsylvania.

·   Nittany Bank Division’s computer systems were fully converted to National Penn’s systems providing for additional operating and customer account servicing efficiencies.

·   A new Customer Relationship Management system was deployed throughout the Company.

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·   National Penn Mortgage Company’s mortgage function was reorganized to allow for enhanced referral and cross-selling opportunities, and improved efficiency and profitability of mortgage products.

As of March 31, 2007, National Penn’s total assets were $5.52 billion and total deposits were $3.73 billion. The allowance for loan and lease losses as of March 31, 2007 was $57.8 million, which represented 1.57% of total loans and leases outstanding of $3.68 billion.

Commenting on first quarter 2007, Glenn E. Moyer, National Penn President and Chief Executive Officer, said “As we have previously commented, the interest rate environment and competitive situations for financial services companies continues to be most difficult and challenging. Overall, we continue to appreciate the hard work of our team members in dealing with these industry challenges.”

__________

¹First quarter 2006 per share data is adjusted for the 3% stock dividend paid on September 30, 2006.

About National Penn Bancshares, Inc.:

National Penn Bancshares, Inc. is a $5.52 billion asset financial services company operating 80 offices in Pennsylvania through National Penn Bank and its FirstService Bank, HomeTowne Heritage Bank, Nittany 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's financial services affiliates consist of National Penn Investors Trust Company; National Penn Capital Advisors, Inc.; Vantage Investment Advisors, L. L. C.; National Penn Mortgage Company; National Penn Insurance Agency, Inc.; and 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 the company'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 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.

_________

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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; 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.

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Reconciliation Tables for Non-GAAP Financial Measures

	Three Months Ended March 31
	2007	2006
Return on average shareholders’ equity	11.6%	13.0%
Effect of goodwill and intangibles	12.8	12.4
Return on average tangible equity	24.4%	25.4%
Average tangible equity excludes acquisition-related average goodwill and intangibles (in millions):
Average shareholders’ equity	$540.8	$468.9
Average goodwill and intangibles	(283.3)	(229.2)
Average tangible equity	$257.5	$239.7

4

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 March 31,	2007 (3)			2006 (2) (3)
STATEMENTS OF CONDITION
Total assets	$	5,520,052		$	5,112,009
Total deposits		3,730,682			3,616,965
Total loans and leases		3,676,966			3,402,709
Total shareholders' equity		549,848			518,240
Book value per share		11.43			10.78
EARNINGS
Total interest income	$	80,393		$	69,356
Total interest expense		42,467			30,874
Net interest income		37,926			38,482
Provision for loan and lease losses		1,075			680
Net interest income after provision
for loan and lease losses		36,851			37,802
Other income		16,694			15,182
Other expenses		33,766			33,242
Income before income taxes		19,779			19,742
Income taxes		4,296			4,712
Net income	$	15,483		$	15,030
Return on average assets		1.15	%		1.24	%
Return on average shareholders' equity		11.6	%		13.0	%
Return on average tangible equity (1)		24.4	%		25.4	%
Average shares - basic		48,046,862			46,318,334
Average shares - diluted		48,722,109			47,223,331
PER SHARE
Basic earnings	$	0.32		$	0.32
Diluted earnings		0.32			0.32
Dividends paid in cash		0.1675			0.1602

(1)   Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity		11.6	%		13.0	%
Effect of goodwill and intangibles		12.8	%		12.4	%
Return on average tangible equity		24.4	%		25.4	%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity	$	540,823		$	468,943
Average goodwill and intangibles		(283,350	)		(229,228	)
Average tangible equity	$	257,473		$	239,715
(2)   Share and per share information adjusted for a 3% stock dividend paid September 30, 2006.
(3)   Unaudited

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/07
Date 4/16/2007
	PAGE: 1 OF 5	AS OF			AS OF			AS OF			AS OF			AS OF
BALANCE SHEET - ASSETS ($000s)		3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash & Cash Equivalents		$	101,676		$	111,203		$	111,374		$	119,607		$	111,755
Trading Account Securities			-			-			-			-			-
Securities Available for Sale			1,049,503			1,010,897			945,598			953,784			1,003,070
Held to Maturity Securities			248,543			250,985			254,334			216,887			170,763
Other Securities			-			-			-			-			-
Total Securities			1,298,046			1,261,882			1,199,932			1,170,671			1,173,833
Total Cash and Securities			1,399,722			1,373,085			1,311,306			1,290,278			1,285,588
Loans & Leases Held for Investment*			3,653,751			3,613,422			3,577,068			3,485,169			3,386,911
Loans & Leases Held for Sale*			23,215			18,515			18,089			19,507			15,798
Total Loans and Leases*			3,676,966			3,631,937			3,595,157			3,504,676			3,402,709
*Indicates data net of unearned fees, gross of reserve
Loan Loss Reserve			(57,771	)		(58,306	)		(59,238	)		(59,049	)		(59,007	)
Premises and Equipment, net			55,132			55,231			55,600			55,863			56,090
Bank Owned Life Insurance			99,538			98,638			97,522			89,365			88,507
Goodwill			263,104			263,787			261,573			261,490			261,946
Other Intangibles			18,435			19,993			21,652			22,413			21,526
Total Intangible Assets			281,539			283,780			283,225			283,903			283,472
Mortgage Servicing Rights			-			-			-			-			-
Purchased Credit Card Relationships			-			-			-			-			-
Real Estate Owned & Held for Investment			140			1,291			1,806			242			-
Assets from Discontinued Operations			-			-			-			-			-
Other Assets (2)			64,786			66,632			62,170			60,142			54,650
Total Assets (2)		$	5,520,052		$	5,452,288		$	5,347,548		$	5,225,420		$	5,112,009
BALANCE SHEET - LIABILITIES ($000S)
Deposits		$	3,730,682		$	3,825,633		$	3,772,102		$	3,786,748		$	3,616,965
Borrowings			1,038,232			878,522			854,129			726,835			786,252
Trust Preferred Securities			-			-			-			-			-
Subordinated Debt			142,654			142,527			142,527			142,527			142,527
Liabilities from Discontinued Operations			-			-			-			-			-
Other Liabilities			58,636			62,737			50,686			50,571			48,025
Total Liabilities		$	4,970,204		$	4,909,419		$	4,819,444		$	4,706,681		$	4,593,769
BALANCE SHEET - EQUITY ($000s)
Redeemable Preferred Stock		$	-		$	-		$	-		$	-		$	-
Preferred Equity		$	-		$	-		$	-		$	-		$	-
Shareholders Equity (2)		$	549,848		$	542,869		$	528,104		$	518,739		$	518,240
MEMO ITEMS
Accumulated other comprehensive (loss) income		$	713		$	1,861		$	462		$	(7,784	)	$	1,552
Publicly Reported Book Value Per Share (1)(2)		$	11.43		$	11.32		$	11.06		$	10.78		$	10.78
EOP Common Shares Outstanding (excluding Treasury shares)(1)			48,100,064			47,940,831			47,730,760			48,119,272			48,061,223
Treasury Shares Held By Company (1)			40,367			203,191			425,569			27,207			27,942
Did you announce a repurchase plan during this period?			NO			NO			NO			NO			NO
Number of Shares to be Repurchased in Plans (1)			3,669,375			3,669,375			3,669,375			3,669,375			3,669,375
Number of Shares Repurchased During Period (1)			30,941			21,889			539,278			83,574			52,235
Average Price of Repurchased Shares (1)		$	19.29		$	20.30		$	19.31		$	19.61		$	19.99
(1) Adjusted for a 3% stock dividend paid September 30, 2006.
(2) Adjusted for modified retrospective method adoption under FAS123 ( R ).

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/07
	PAGE: 2 OF 5
		FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER
		ENDED			ENDED			ENDED			ENDED			ENDED
INCOME STATEMENT ($000s)		3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest Income		$	80,392		$	79,376		$	78,108		$	75,345		$	69,356
Interest Expense			42,467			42,012			39,643			36,297			30,874
Net Interest Income			37,925			37,364			38,465			39,048			38,482
FTE adjustment			3,638			3,324			3,157			2,847			2,764
Net Interest Income (FTE)			41,563			40,688			41,622			41,895			41,246
Loan Loss Provision			1,075			840			561			460			680
Investment Securities Trans.			569			-			49			444			377
Nonrecurring Income			-			1,342			777			-			-
Nonrecurring Expense			-			(1,325	)		(907	)		306			(255	)
Trading Account Income			-			-			-			-			-
Foreign Exchange Income			-			-			-			-			-
Wealth Management Income			4,063			3,785			3,515			3,519			3,222
Service Charges on Deposits			4,098			4,421			4,618			4,334			4,027
Cash management and electronic banking fees			1,942			2,033			2,071			2,017			2,106
Mortgage Banking Income			876			1,029			1,047			1,156			1,021
Insurance Income			2,200			1,638			1,745			1,719			1,753
Bank Owned Life Insurance Income			1,473			1,116			972			858			820
Other Noninterest Income			1,473			4,039			1,628			1,815			1,856
Total Noninterest Income(excludes securities gains/losses and non-recurring income)			16,125			18,061			15,596			15,418			14,805
Employee Comp. & Benefit Expense (2)			20,499			20,611			20,261			20,210			21,079
Occupancy & Equipment Expense			5,068			4,663			4,403			4,403			4,313
Amortization of Intangibles			759			773			761			741			643
Other Noninterest Expense			7,440			10,123			7,940			7,128			7,462
Total Noninterest Exp. (excludes non-recurring expenses) (2)			33,766			36,170			33,365			32,482			33,497
Minority Interest Expense			-			-			-			-			-
Net Income Before Taxes (2)			19,778			21,082			21,868			21,662			19,742
Tax Provision (2)			4,295			4,711			5,244			5,578			4,712
Net Income (2)		$	15,483		$	16,371		$	16,624		$	16,084		$	15,030
EARNINGS PER SHARE:
Basic
Net income (1) (2)		$	0.32		$	0.34		$	0.35		$	0.33		$	0.32
Diluted
Net income (1) (2)		$	0.32		$	0.34		$	0.34		$	0.33		$	0.32
Average Shares Basic (1)			48,046,862			47,803,077			47,737,218			48,089,589			46,318,334
Average Shares Diluted (1)			48,722,109			48,626,538			48,555,112			48,888,091			47,223,331
Dividends on Preferred Stock ($000s)		$	-		$	-		$	-		$	-		$	-
(1) Adjusted for a 3% stock dividend paid September 30, 2006.
(2) Adjusted for modified retrospective method adoption under FAS123 ( R ).
SUPPLEMENTAL DATA ($000s) (4)
Return on Avg. Assets (annualized)			1.15	%		1.21	%		1.25	%		1.25	%		1.24	%
Return on Avg. Equity (annualized)			11.61	%		12.25	%		12.83	%		12.55	%		13.00	%
Return on Avg. Tangible Equity (annualized) (3)			24.39	%		26.28	%		28.60	%		28.03	%		25.43	%
Average Tangible Equity to Tangible Assets (5)			4.98	%		4.87	%		4.61	%		4.71	%		5.12	%
Average Realized Tangible Equity to Average Tangible Assets Ratio (6)			4.98	%		4.84	%		4.71	%		4.76	%		5.04	%
(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 intagibles).
(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			11.61	%		12.25	%		12.83	%		12.55	%		13.00	%
Effect of goodwill and intangibles			12.78	%		14.03	%		15.77	%		15.49	%		12.43	%
Return on average tangible equity			24.39	%		26.28	%		28.60	%		28.03	%		25.43	%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity		$	540,823		$	530,421		$	514,172		$	514,090		$	468,943
Average goodwill and intangibles			(283,350	)		(283,297	)		(283,564	)		(283,971	)		(229,228	)
Average tangible equity			257,473			247,124			230,608			230,119			239,715

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/07
	PAGE: 3 of 5
		FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER			FOR QUARTER
		ENDED			ENDED			ENDED			ENDED			ENDED
CHARGEOFFS ($000s)		3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
		(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Loan Chargeoffs		$	2,086		$	2,015		$	1,518		$	1,085		$	1,239
Recoveries on Loans			(475	)		(243	)		(1,147	)		(667	)		(606	)
Net Loan Chargeoffs		$	1,611		$	1,772		$	371		$	418		$	633

	AS OF		AS OF		AS OF		AS OF		AS OF
ASSET QUALITY AND OTHER DATA ($000s)	3/31/2007		12/31/2006		9/30/2006		6/30/2006		3/31/2006
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Nonaccrual Loans	$	12,077	$	8,554	$	8,316	$	9,110	$	9,381
Renegotiated Loans				-		-		-		-
Other Real Estate Owned		140		1,291		1,806		242		-
Total Nonperforming Assets	$	12,217	$	9,845	$	10,122	$	9,352	$	9,381
Loans 90+ Days Past Due & Still Accruing		243		94		222		17		106
NPAs plus Loans over 90	$	12,460	$	9,939	$	10,344	$	9,369	$	9,487

	AS OF			AS OF			AS OF			AS OF			AS OF
REGULATORY CAPITAL DATA ($000s) (1)	3/31/2007			12/31/2006			9/30/2006			6/30/2006			3/31/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Tier 1 Capital	$	405,972		$	395,479		$	382,667		$	380,866		$	371,466
Tier 1 Ratio (%)		9.92	%		9.77	%		9.54	%		9.72	%		9.85	%
Total Capital (Tier 1 + Tier 2)	$	459,795		$	449,586		$	435,973		$	432,832		$	421,954
Total Capital Ratio (%)		11.23	%		11.11	%		10.86	%		11.04	%		11.19	%
Total Risk-Adjusted Assets	$	4,093,619		$	4,048,475		$	4,012,661		$	3,919,628		$	3,771,877
Tier 1 Leverage Ratio		8.00	%		7.79	%		7.65	%		7.77	%		8.77	%
Tangible Equity to Tangible Assets Ratio		5.12	%		5.01	%		4.84	%		4.75	%		4.86	%
Realized Tangible Equity to Tangible Assets Ratio		5.11	%		4.98	%		4.83	%		4.91	%		4.83	%

	AS OF		AS OF		AS OF		AS OF		AS OF
SUPPLEMENTAL DATA ($000s)	3/31/2007		12/31/2006		9/30/2006		6/30/2006		3/31/2006
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
1-4 Family Mortgage Loans Serviced For Others	$	44,594	$	82,086	$	48,366	$	50,065	$	52,132
Propriety Mutual Fund Balances	$	-	$	-	$	-	$	-	$	-
(Net Asset Value in $000s)
Held to Maturity Securities (Fair Value)	$	247,444	$	249,575	$	252,841	$	210,813	$	167,845
Common Stock Dividends (total $ in period)	$	8,048	$	8,001	$	7,645	$	7,702	$	7,692
Dividends per Common Share (2)	$	0.1675	$	0.1675	$	0.1602	$	0.1602	$	0.1602
EOP Employees (Full Time Equivalent)		1,195		1,197		1,198		1,224		1,217
(1) Adjusted for modified retrospective method adoption under FAS123 ( R ).
(2) Adjusted for a 3% stock dividend paid September 30, 2006.

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/07
PAGE: 4 of 5	AS OF		AS OF		AS OF		AS OF		AS OF
PERIOD END BALANCES:	3/31/2007		12/31/2006		9/30/2006		6/30/2006		3/31/2006
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Loan Breakdown: (REGULATORY)
Commercial/Industrial	$	661,504	$	626,886	$	607,461	$	612,982	$	589,021
Commercial Real Estate		1,275,878		1,239,800		1,218,853		1,205,798		1,203,946
Residential Mortgage (including multi-family)		809,097		804,762		825,105		784,004		744,763
Real Estate Construction (and Land Development)		288,171		311,163		302,309		286,037		264,466
Home Equity (revolving and 2nd lien)		437,467		439,017		435,948		415,272		395,606
Consumer (Loans to Individuals)		61,112		56,721		55,227		52,990		61,451
Bank Card		-		-		-		-		-
Foreign		-		-		-		-		-
Other Loans		143,737		153,588		150,254		147,593		143,456
Total Loans (net of unearned)		3,676,966		3,631,937		3,595,157		3,504,676		3,402,709
Investment Securities (incl. trading assets)		1,298,046		1,261,882		1,199,932		1,170,671		1,173,833
Other Earning Asset		2,760		4,576		9,974		12,054		7,860
Total Earning Assets (net of loan loss reserve)		4,920,001		4,840,089		4,805,063		4,628,352		4,525,395
Total Assets		5,520,052		5,452,288		5,347,548		5,225,420		5,112,009
Deposit Breakdown:
Savings		220,192		215,156		225,523		249,901		275,766
NOW Accounts		624,276		690,781		748,163		718,146		742,034
Money Market Accounts		932,189		924,804		865,238		838,199		661,031
Certificates		911,951		950,326		914,869		879,405		917,979
CDs>$100m		519,125		535,103		523,052		575,188		501,166
Foreign CDs		-		-		-		-		-
Total Int. Bearing Deposits		3,207,733		3,316,170		3,276,845		3,260,839		3,097,976
Non-Interest Bearing Deposits		522,949		509,463		495,257		525,909		518,989
Total Deposits		3,730,682		3,825,633		3,772,102		3,786,748		3,616,965
Short-Term Borrowings		590,226		417,746		641,587		494,029		538,185
Long-Term Debt		590,660		603,303		355,069		375,333		390,594
Total Int. Bearing Liabilities (incl. non-int bearing deposits)		4,911,568		4,846,682		4,768,758		4,656,110		4,545,744
Total Int. Bearing Liabilities		4,388,619		4,337,219		4,273,501		4,130,201		4,026,755
Total Stockholders Equity	$	549,848	$	542,869	$	528,104	$	518,739	$	518,240
PERIOD END BALANCES:
Loan Breakdown: (internal)
Business Purpose Loans	$	1,521,929	$	1,437,791	$	1,408,855	$	1,408,035	$	1,419,903
Residential Mortgage		491,366		529,699		540,512		510,426		470,369
Commercial Real Estate, Construction and Land Dev		1,202,717		1,204,015		1,189,274		1,153,452		1,122,726
Consumer (loans to Individual)		460,954		460,432		456,516		432,762		389,711
Total Loans (net of unearned)	$	3,676,966	$	3,631,937	$	3,595,157	$	3,504,675	$	3,402,709

Financial Update for NATL PENN BCSHS (NPBC) FOR 3/31/07
	PAGE 5 OF 5
BALANCE AND YIELD/COST ANALYSIS:		AS OF					AS OF					AS OF					AS OF					AS OF
		3/31/2007					12/31/2006					9/30/2006					6/30/2006					3/31/2006
		(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
Total Loans (net of unearned)		$	3,639,246		7.36	%	$	3,599,781		7.25	%	$	3,547,993		7.22	%	$	3,474,861		7.19	%	$	3,254,237		7.04	%
Investment Securities (incl. trading assets)			1,271,449		5.73	%		1,220,595		5.44	%		1,190,648		5.44	%		1,171,649		5.43	%		1,156,448		5.45	%
Other Earning Assets			12,785		6.35	%		3,940		6.35	%		10,774		2.69	%		12,370		1.78	%		7,430		6.93	%
Total Earning Assets			4,923,480		6.92	%		4,824,316		6.80	%		4,749,415		6.76	%		4,658,880		6.73	%		4,418,115		6.62	%
Total Earning Assets (net of loan loss reserve)			4,864,994		7.00	%		4,764,980		6.89	%		4,689,914		6.85	%		4,599,512		6.82	%		4,359,620		6.71	%
Total Assets			5,452,202		6.25	%		5,360,420		6.12	%		5,283,841		6.08	%		5,173,171		6.06	%		4,911,582		5.96	%
Savings			216,121		1.17	%		223,624		1.29	%		238,225		1.31	%		264,990		1.32	%		258,579		1.25	%
NOWAccounts			625,108		2.30	%		723,131		2.71	%		734,504		1.68	%		802,859		2.59	%		739,033		2.20	%
Money Market Accounts			939,598		3.65	%		906,398		3.52	%		854,579		4.14	%		698,743		2.91	%		654,767		2.55	%
Certificates			1,476,314		4.69	%		1,479,073		4.59	%		1,475,237		4.44	%		1,429,794		4.19	%		1,318,803		3.87	%
Total Int. Bearing Deposits			3,257,141		3.70	%		3,332,226		3.67	%		3,302,545		3.52	%		3,196,386		3.27	%		2,971,182		2.93	%
Non-Interest Bearing Deposits			487,661					492,839					503,751					512,748					504,172
Total Deposits			3,744,802		3.22	%		3,825,065		3.20	%		3,806,296		3.06	%		3,709,134		2.82	%		3,475,354		2.51	%
Short-Term Borrowings			503,795		4.14	%		432,623		3.75	%		533,418		3.85	%		520,330		3.96	%		534,795		3.23	%
Long-Term Borrowings			598,757		5.17	%		515,857		5.47	%		374,798		5.44	%		378,625		5.38	%		387,003		5.35	%
Total Int. Bearing Liabilities(incl. non-int bearing deposits)			4,847,354		3.55	%		4,773,545		3.49	%		4,714,512		3.34	%		4,608,089		3.16	%		4,397,152		2.85	%
Total Int. Bearing Liabilities			4,359,693		3.95	%		4,280,706		3.89	%		4,210,761		3.74	%		4,095,341		3.55	%		3,892,980		3.22	%
Total Shareholder's Equity		$	540,823				$	530,421				$	514,172				$	514,090				$	468,943
Net Yield on Earning Assets (net of loan loss reserve): (Margin)					3.46	%				3.39	%				3.50	%				3.65	%				3.84	%
Net Yield on Earning Assets: (Margin)					3.42	%				3.35	%				3.45	%				3.61	%				3.79	%

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	79	79	79	78
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)		1	1	1	1	1
Total Number of ATMs		83	82	82	82	81
	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
	TOTAL
Total Number of Banking Offices		81	80	80	80	79
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)		1	1	1	1	1
Total Number of ATMs		84	83	83	83	82

Have you restated any prior period's financial statements for a pooling of interest and/or a change in
accounting principles?	YES
Periods Restated on this report:	12/31/2005
Reason:	Adjusted for modified retrospective method adoption under FAS123 ( R ).