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

EXHIBIT 99.1

   News Release

National Penn Bancshares, Inc.

Reports Record Third Quarter Net Income

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

BOYERTOWN, Pa., October 16, 2007 -- National Penn Bancshares, Inc. (Nasdaq: NPBC), the parent company of National Penn Bank, reported record third quarter 2007 net income totaling $16.81 million, or $0.34 per diluted share.  Net income increased approximately 1.10% compared to $16.62 million earned in the third quarter of 2006.  Diluted earnings per share was $0.33 in the third quarter of 2006.¹

For the first nine months of 2007, National Penn produced $48.52 million of net income, compared to $47.74 million for the first nine months of 2006.  Diluted earnings per share for the nine month period ended September 30, 2007 was $0.97, compared to $0.96 for the same period in 2006.¹

For the first nine months of 2007, annualized returns on average assets and average shareholders’ equity were 1.17% and 11.94%, respectively.   For the first nine months of 2006, the annualized returns on average assets and average shareholders’ equity were 1.25% and 12.78%, respectively.

On September 7, 2007, National Penn Bancshares, Inc. announced that it had entered into a merger agreement with KNBT Bancorp, Inc., a Pennsylvania bank holding company, with $2.9 billion in assets headquartered in Bethlehem, Pennsylvania.  Upon completion of the merger, which is expected in the first quarter 2008, National Penn expects to have assets in excess of $8 billion, which would make National Penn the fifth largest commercial bank holding company headquartered in Pennsylvania (based on current total asset value).

National Penn’s acquisition of Christiana Bank & Trust, which was announced on June 25, 2007, is expected to close in early 2008.

As of September 30, 2007, National Penn’s total assets were $5.76 billion and total deposits were $3.93 billion. The allowance for loan and lease losses as of September 30, 2007 was $56.29 million, which represented 1.49% of total loans and leases outstanding of $3.79 billion.

Commenting on third quarter 2007, Glenn E. Moyer, National Penn President and Chief Executive Officer, said, “The interest rate, economic, and competitive environments continue to challenge earnings performance at financial institutions.  With that said, we’re very pleased to have been able to report record quarterly net income for the third quarter 2007, as well as increased earnings for the nine month period ended September 30, 2007.  Our balanced growth strategy continues to focus on both organic and merger growth, and we’re busy on both fronts as we wrap up 2007.”

__________

¹2006 per share data is adjusted for the 3% stock dividend paid on September 28, 2007.

About National Penn Bancshares, Inc.:

National Penn Bancshares, Inc. is a $5.76 billion asset financial services company operating 81 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 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 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.

_________

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,'' "seek," "intend,'' or "anticipate'' or the negative thereof or comparable terminology, and include discussions of strategy, financial projections and estimates and 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 Bancshares and its subsidiaries. National Penn Bancshares cautions readers not to place undue reliance on these statements.

National Penn Bancshares' 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: ineffectiveness of National Penn's business strategy due to changes in current or future market conditions; the effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; interest rate movements; inability to achieve merger-related synergies; difficulties in integrating distinct business operations, including information technology difficulties; disruption from announced transactions, and resulting difficulties in maintaining relationships with customers and employees; and challenges in establishing and maintaining operations in new markets. The foregoing review of important factors should be read in conjunction with the other cautionary statements that are included in National Penn Bancshares' Annual Report on Form 10-K for the fiscal year ended December 31, 2006, as well as in other documents filed by National Penn Bancshares after the date thereof.  National Penn Bancshares 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.

Additional Information About the National Penn/Christiana Transaction:

National Penn has filed a registration statement on Form S-4 in connection with the Christiana transaction, and together with Christiana, intends to mail a proxy statement/prospectus to Christiana stockholders in connection with the transaction.  Shareholders are urged to read the proxy statement/prospectus when it becomes available, because it will contain important information. You may obtain a free copy of the proxy statement/prospectus (when it is available) as well as other filings containing information about National Penn, at the SEC's web site at www.sec.gov. A free copy of the proxy statement/prospectus, and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus, may also be obtained from National Penn or Christiana, by directing the request to either of the following persons:

Ms. Sandra L. Spayd	Mr. Chris J. Cusatis
Corporate Secretary	Senior Vice President and Chief Financial Officer
National Penn Bancshares, Inc.	Christiana Bank & Trust Company
Philadelphia and Reading Avenues	3801 Kennett Pike
Boyertown, PA 19512	Greenville, DE 19807
(610) 369-6202	(302) 888-7730

Additional Information About the National Penn/KNBT Transaction:

National Penn has filed a registration statement on Form S-4 in connection with the KNBT transaction, and National Penn and KNBT intend to mail a joint proxy statement/prospectus to their respective shareholders in connection with the transaction. Shareholders and investors are urged to read the joint proxy statement/prospectus when it becomes available, because it will contain important information about National Penn, KNBT and the transaction. You may obtain a free copy of the joint proxy statement/prospectus (when it is available) as well as other filings containing information about National Penn and KNBT, at the SEC's web site at www.sec.gov. A free copy of the joint proxy statement/prospectus, and the filings with the SEC that will be incorporated by reference in the joint proxy statement/prospectus, may also be obtained from National Penn or KNBT, by directing the request to either of the following persons:

Ms. Sandra L. Spayd	Mr. Eugene Sobol
Corporate Secretary	Senior Executive Vice President & Chief Financial Officer
National Penn Bancshares, Inc.	KNBT Bancorp, Inc.
Philadelphia and Reading Avenues	90 Highland Avenue
Boyertown, PA 19512	Bethlehem, PA 18017
(610) 369-6202	(610) 807-5888

National Penn, KNBT and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of National Penn and KNBT in favor of the transaction.  Information regarding the interests of the executive officers and directors of National Penn and KNBT in the transaction will be included in the joint proxy statement/prospectus.

#  #  #

National Penn Bancshares, Inc.
Exchange Listing Nasdaq "NPBC"
Financial Highlights (unaudited)
(Dollars in thousands, except per share data)
	Three Months Ended September 30,									Nine Months Ended September 30,
	2007			2006 (2)			% Change			2007			2006 (2)			% Change
STATEMENTS OF CONDITION
Total assets										$	5,763,931		$	5,347,548			7.79	%
Total deposits											3,927,823			3,772,102			4.13	%
Total loans and leases											3,786,801			3,595,157			5.33	%
Total shareholders' equity											554,322			528,105			4.96	%
Book value per share											11.28			10.74			5.03	%
EARNINGS
Total interest income	$	85,727		$	78,108			9.75	%	$	248,971		$	222,809			11.74	%
Total interest expense		46,631			39,643			17.63	%		133,462			106,814			24.95	%
Net interest income		39,096			38,465			1.64	%		115,509			115,995			-0.42	%
Provision for loan and lease losses		1,420			561			153.12	%		4,032			1,701			137.04	%
Net interest income after provision
for loan and lease losses		37,676			37,904			-0.60	%		111,477			114,294			-2.46	%
Other income		18,250			16,422			11.13	%		52,742			47,466			11.12	%
Other expenses		34,101			32,458			5.06	%		101,929			98,488			3.49	%
Income before income taxes		21,825			21,868			-0.20	%		62,290			63,272			-1.55	%
Income taxes		5,018			5,244			-4.31	%		13,766			15,534			-11.38	%
Net income	$	16,807		$	16,624			1.10	%	$	48,524		$	47,738			1.65	%
PERFORMANCE RATIOS
Return on average assets		1.18	%		1.25	%		-5.60	%		1.17	%		1.25	%		-6.40	%
Return on average shareholders' equity		12.30	%		12.83	%		-4.13	%		11.94	%		12.78	%		-6.57	%
Return on average tangible equity (1)		25.29	%		28.60	%		-11.57	%		24.72	%		27.34	%		-9.58	%
PER SHARE
Basic earnings	$	0.34		$	0.34			0.00	%	$	0.98		$	0.98			0.00	%
Diluted earnings		0.34			0.33			3.03	%		0.97			0.96			1.04	%
Dividends paid in cash		0.1626			0.1553			4.70	%		0.4879			0.4670			4.48	%
Average shares - basic		49,146,831			49,169,335			-0.05	%		49,445,112			48,807,518			1.31	%
Average shares - diluted		49,641,283			50,011,765			-0.74	%		50,053,803			49,664,266			0.78	%
(1) Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity		12.30	%		12.83	%					11.94	%		12.78	%
Effect of goodwill and intangibles		12.99	%		15.77	%					12.78	%		14.56	%
Return on average tangible equity		25.29	%		28.60	%					24.72	%		27.34	%
Average tangible equity excludes acquisition related
average goodwill and intangibles:
Average shareholders' equity	$	542,052		$	514,172					$	543,218		$	499,234
Average goodwill and intangibles		(278,441	)		(283,564	)					(280,795	)		(265,787	)
Average tangible equity	$	263,611		$	230,608					$	262,423		$	233,447
(2) Share and per share information adjusted for a 3% stock dividend paid September 28, 2007

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/07
Date 10/15/2007
PAGE:  1 OF 5	AS OF			AS OF			AS OF			AS OF			AS OF
BALANCE SHEET - ASSETS ($000s)	9/30/2007			6/30/2007			3/31/2007			12/31/2006			9/30/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash & Cash Equivalents	$	99,379		$	125,128		$	101,676		$	111,203		$	111,374
Held to Maturity Securities		244,815			245,964			248,543			250,985			254,334
Securities Available for Sale		1,175,598			1,063,705			1,049,503			1,010,897			945,598
Total Securities		1,420,413			1,309,669			1,298,046			1,261,882			1,199,932
Total Cash and Securities		1,519,792			1,434,797			1,399,722			1,373,085			1,311,306
Loans & Leases Held for Sale		998			9,305			23,215			18,515			18,089
Loans & Leases Held for Investment		3,785,803			3,721,182			3,653,751			3,613,422			3,577,068
Total Loans and Leases		3,786,801			3,730,487			3,676,966			3,631,937			3,595,157
Loan Loss Reserve		(56,294	)		(57,004	)		(57,771	)		(58,306	)		(59,238	)
Premises and Equipment, net		61,743			61,230			55,132			55,231			55,600
Bank Owned Life Insurance		101,318			100,216			99,538			98,638			97,522
Goodwill		261,161			261,161			263,104			263,787			261,573
Other Intangibles		16,919			17,677			18,435			19,993			21,652
Total Intangible Assets		278,080			278,838			281,539			283,780			283,225
Unconsolidated Investments
Under the Equity Method		10,058			10,724			10,509			10,883			4,277
Mortgage Servicing Rights		-			-			-			-			-
Real Estate Owned & Held for Investment		364			364			140			1,291			1,806
Other Assets (2)		62,069			61,518			54,277			55,749			57,893
Total Assets (2)	$	5,763,931		$	5,621,170		$	5,520,052		$	5,452,288		$	5,347,548
BALANCE SHEET - LIABILITIES ($000S)
Interest-bearing Deposits	$	3,439,266		$	3,309,328		$	3,207,733		$	3,316,170		$	3,276,845
Non-interest bearing Deposits	$	488,557		$	516,458		$	522,949		$	509,463		$	495,257
Borrowings		1,080,221			1,055,527			1,038,232			878,522			854,129
Subordinated Debt (Trust Preferred Securities)		141,591			142,780			142,654			142,527			142,527
Other Liabilities		59,974			51,172			58,636			62,737			50,686
Total Liabilities	$	5,209,609		$	5,075,265		$	4,970,204		$	4,909,419		$	4,819,444
BALANCE SHEET - EQUITY ($000s)
Common Stock	$	490,872		$	466,837		$	466,555		$	467,288		$	439,314
Retained Earnings		76,888			91,548			83,368			77,665			96,546
Accumulated Other Comprehensive Income	$	(6,458	)	$	(12,193	)		713			1,861			462
Treasury Stock		(6,980	)		(287	)		(788	)		(3,945	)		(8,217	)
Total Shareholders Equity (2)	$	554,322		$	545,905		$	549,848		$	542,869		$	528,105
MEMO ITEMS
Accumulated other comprehensive (loss) income	$	(6,458	)	$	(12,193	)	$	713		$	1,861		$	462
Book Value Per Share (1)(2)	$	11.28		$	11.01		$	11.10		$	10.99		$	10.74
Tangible Book Value Per Share(1)(2)	$	5.62		$	5.39		$	5.42		$	5.24		$	4.96
EOP Common Shares Outstanding (excluding Treasury shares)(1)		49,150,514			49,584,957			49,543,066			49,379,056			49,162,683
Treasury Shares Held By Company (1)		477,117			16,470			41,578			209,287			438,336
Did you announce a repurchase plan during this period?	NO			NO			NO			NO			NO
Number of Shares to be Repurchased in Plans (1)		3,779,456			3,779,456			3,779,456			3,779,456			3,779,456
Number of Shares Repurchased During Period (1)		594,566			86,229			31,869			22,546			555,456
Average Price of Repurchased Shares (1)	$	14.61		$	17.92		$	18.73		$	19.71		$	18.75
(1) Adjusted for a 3% stock dividend paid September 28, 2007.
(2) Adjusted for modified retrospective method adoption under FAS123 ( R ).

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/07
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)	9/30/2007			6/30/2007			3/31/2007			12/31/2006			9/30/2006			9/30/2007			9/30/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest Income	$	85,727		$	82,851		$	80,393		$	79,376		$	78,108		$	248,971		$	222,809
Interest Expense		46,631			44,364			42,467			42,012			39,643			133,462			106,814
Net Interest Income		39,096			38,487			37,926			37,364			38,465			115,509			115,995
Loan and Lease Loss Provision		1,420			1,537			1,075			840			561			4,032			1,701
Net Interest Income after Provision for Loan and Lease Losses		37,676			36,950			36,851			36,524			37,904			111,477			114,294
Wealth Management Income		4,359			4,289			4,063			3,785			3,515			12,711			10,256
Service Charges on Deposits		4,461			4,314			4,098			4,421			4,618			12,873			12,979
Cash Management and Electronic Banking Fees		2,241			2,112			1,942			2,033			2,071			6,295			6,194
Mortgage Banking Income		468			1,110			876			1,029			1,047			2,454			3,223
Insurance Commissions and Fees		1,556			1,487			2,200			1,638			1,745			5,243			5,216
Bank Owned Life Insurance Income		1,102			1,078			1,099			1,116			972			3,279			2,650
Equity in Unconsolidated Investments		226			216			(589	)		2,674			-			(147	)
Net Gains (Losses) on Sale of Investment Securities		600			564			569			-			49			1,733			870
Gain on Sale of Building(s)		279			170			-			1,342						449			-
BOLI Death Benefit Income		-			837			374						777			1,211			777
Other Non-Interest Income		2,958			1,621			2,062			1,365			1,628			6,641			5,301
Non-Recurring Income		-			-			-			-			-			-			-
Total Non-Interest Income		18,250			17,798			16,694			19,403			16,422			52,742			47,466
Salaries, Wages and Employee Benefits (2)		20,982			20,557			20,499			20,611			20,261			62,038			61,551
Net Premises and Equipment Expense		4,867			4,851			5,068			4,663			4,403			14,786			13,119
Amortization of Intangibles		758			759			759			773			761			2,276			2,145
Other Non-Interest Expense		7,494			7,895			7,440			10,123			7,940			22,829			22,529
Non-Recurring Expense		-			-			-			(1,325	)		(907	)		-			(856	)
Total Non-Interest Expense  (2)		34,101			34,062			33,766			34,845			32,458			101,929			98,488
Net Income Before Taxes (2)		21,825			20,686			19,779			21,082			21,868			62,290			63,272
Income Tax Expense (2)		5,018			4,452			4,296			4,711			5,244			13,766			15,534
Net Income (2)		16,807			16,234			15,483			16,371			16,624			48,524			47,738
Net Interest Income (FTE)	$	43,260		$	42,278		$	41,563		$	40,688		$	41,622		$	127,101		$	124,763
EARNINGS PER SHARE:
Basic
Net income (1) (2)	$	0.34		$	0.33		$	0.31		$	0.33		$	0.34		$	0.98		$	0.98
Diluted
Net income (1) (2)	$	0.34		$	0.32		$	0.31		$	0.33		$	0.33		$	0.97		$	0.96
Average Shares Basic (1)		49,146,831			49,556,675			49,488,268			49,237,169			49,169,335			49,445,112			48,807,518
Average Shares Diluted (1)		49,641,283			50,181,973			50,235,272			50,085,334			50,011,765			50,053,803			49,664,266
(1) Adjusted  for a 3% stock dividend paid September 28, 2007.
(2) Adjusted for modified retrospective method adoption under FAS123 ( R ).
SUPPLEMENTAL DATA ($000s) (4)
Return on Avg. Assets (annualized)		1.18	%		1.17	%		1.15	%		1.21	%		1.25	%		1.17	%		1.25	%
Return on Avg. Equity (annualized)		12.30	%		11.91	%		11.61	%		12.25	%		12.83	%		11.94	%		12.78	%
Return on Avg. Tangible Equity (annualized) (3)		25.29	%		24.47	%		24.39	%		26.28	%		28.60	%		24.72	%		27.34	%
Average Tangible Equity to Tangible Assets   (5)		4.90	%		5.06	%		4.98	%		4.87	%		4.61	%		4.98	%		4.80	%
Average Realized Tangible Equity to Average Tangible Assets Ratio (6)		5.10	%		5.10	%		4.98	%		4.84	%		4.71	%		5.06	%		4.78	%
(3) (Net income x (365/91)), 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.           60;

(3) (4) Reconciliation Table for Non-GAAP Financial Measure
Return on average shareholders' equity		12.30	%		11.91	%		11.61	%		12.25	%		12.83	%		11.94	%		12.78	%
Effect of goodwill and intangibles		12.99	%		12.56	%		12.78	%		14.03	%		15.77	%		12.78	%		14.56	%
Return on average tangible equity		25.29	%		24.47	%		24.39	%		26.28	%		28.60	%		24.72	%		27.34	%
Average tangible equity excludes acquisition related average goodwill and intangibles:
Average shareholders' equity	$	542,052		$	546,765		$	540,823		$	530,421		$	514,172		$	543,218		$	499,234
Average goodwill and intangibles		(278,441	)		(280,649	)		(283,350	)		(283,297	)		(283,564	)		(280,795	)		(265,787	)
Average tangible equity		263,611			266,116			257,473			247,124			230,608			262,423			233,447

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/07
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)	9/30/2007			6/30/2007			3/31/2007			12/31/2006			9/30/2006			9/30/2007			9/30/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Loan Chargeoffs	$	2,482		$	2,859		$	2,086		$	2,015		$	1,518		$	7,427		$	3,842
Recoveries on Loans		(352	)		(555	)		(475	)		(243	)		(1,147	)		(1,382	)		(2,420	)
Net Loan Chargeoffs	$	2,130		$	2,304		$	1,611		$	1,772		$	371		$	6,045		$	1,422
	AS OF			AS OF			AS OF			AS OF			AS OF
ASSET QUALITY AND OTHER DATA ($000s)	9/30/2007			6/30/2007			3/31/2007			12/31/2006			9/30/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Nonaccrual Loans	$	8,435		$	12,270		$	12,077		$	8,554		$	8,316
Renegotiated Loans		-			-			-			-			-
Other Real Estate Owned		364			364			140			1,291			1,806
Total Non-performing Assets	$	8,799		$	12,634		$	12,217		$	9,845		$	10,122
Loans 90+ Days Past Due & Still Accruing		67			619			243			94			222
Non-performing + Loans 90 Days Past Due	$	8,866		$	13,253		$	12,460		$	9,939		$	10,344
Allowance for Loan and Lease Losses	$	56,294		$	57,004		$	57,771		$	58,306		$	59,238
Coverage Ratio		634.9	%		430.1	%		463.7	%		586.6	%		572.7	%
	AS OF			AS OF			AS OF			AS OF			AS OF
REGULATORY CAPITAL DATA ($000s) (1)	9/30/2007			6/30/2007			3/31/2007			12/31/2006			9/30/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Tier 1 Capital	$	420,014		$	417,762		$	405,972		$	395,479		$	382,667
Tier 1 Ratio (%)		9.64	%		9.93	%		9.92	%		9.77	%		9.54	%
Total Capital (Tier 1 + Tier 2)	$	475,596		$	470,902		$	459,795		$	449,586		$	435,973
Total Capital Ratio (%)		10.91	%		11.20	%		11.23	%		11.11	%		10.86	%
Total Risk-Adjusted Assets	$	4,358,884		$	4,206,000		$	4,093,619		$	4,048,475		$	4,012,661
Tier 1 Leverage Ratio		7.80	%		7.94	%		8.00	%		7.79	%		7.65	%
Tangible Equity to Tangible Assets Ratio		5.04	%		5.00	%		5.12	%		5.01	%		4.84	%
Realized Tangible Equity to Tangible Assets Ratio		5.15	%		5.23	%		5.11	%		4.98	%		4.83	%
	AS OF			AS OF			AS OF			AS OF			AS OF
SUPPLEMENTAL DATA ($000s)	9/30/2007			6/30/2007			3/31/2007			12/31/2006			9/30/2006
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Held to Maturity Securities (Fair Value)	$	243,593		$	238,741		$	247,444		$	249,575		$	252,841
Common Stock Dividends (total $ in period)	$	8,066		$	8,066		$	8,048		$	8,001		$	7,645
Dividends per Common Share (2)	$	0.1626		$	0.1626		$	0.1626		$	0.1626		$	0.1555
EOP Employees (Full Time Equivalent)		1,185			1,227			1,195			1,197			1,198
(1) Adjusted for modified retrospective method adoption under FAS123 ( R ).
(2) Adjusted  for a 3% stock dividend paid September 28, 2007.            ;

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/07
PAGE:  4 of 5	AS OF		AS OF		AS OF		AS OF		AS OF
PERIOD END BALANCES:	9/30/2007		6/30/2007		3/31/2007		12/31/2006		9/30/2006
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Earning Assets / Liabilities
Loan Breakdown:  (Regulatory)
Commercial/Industrial	$	713,887	$	695,396	$	661,504	$	626,886	$	607,461
Commercial Real Estate		1,304,911		1,277,469		1,275,878		1,239,800		1,218,853
Residential Mortgage (including multi-family)		781,087		798,808		809,097		804,762		825,105
Real Estate Construction and Land Development		310,372		295,618		288,171		311,163		302,309
Home Equity (revolving and 2nd lien)		447,130		441,579		437,467		439,017		435,948
Consumer (Loans to Individuals)		70,817		63,558		61,112		56,721		55,227
Other Loans		158,597		158,059		143,737		153,588		150,254
Total Loans (net of unearned)		3,786,801		3,730,487		3,676,966		3,631,937		3,595,157
Investment Securities		1,420,413		1,309,669		1,298,046		1,261,882		1,199,932
Other Earning Assets		5,616		3,933		2,760		4,576		9,974
Total Earning Assets (net of loan loss reserve)	$	5,156,536	$	4,987,085	$	4,920,001	$	4,840,089	$	4,805,063
Deposit Breakdown:
Savings	$	193,232	$	208,694	$	220,192	$	215,156	$	225,523
NOW Accounts		775,385		722,656		624,276		690,781		748,163
Money Market Accounts		951,104		960,302		932,189		924,804		865,238
CDs $100m or less		1,008,792		961,964		911,951		950,326		914,869
CDs greater than $100m		510,753		455,712		519,125		535,103		523,052
Total Int. Bearing Deposits		3,439,266		3,309,328		3,207,733		3,316,170		3,276,845
Short-Term Borrowings		452,761		427,792		590,226		417,746		641,587
Long-Term Debt		769,051		770,515		590,660		603,303		355,069
Total Int. Bearing Liabilities	$	4,661,078	$	4,507,635	$	4,388,619	$	4,337,219	$	4,273,501
Loan Breakdown: (Internal)
Business Purpose Loans	$	1,571,459	$	1,542,646	$	1,521,929	$	1,437,791	$	1,408,855
Residential Mortgage		485,967		515,339		491,366		529,699		540,512
Commercial Real Estate, Construction and Land Dev		1,265,904		1,215,586		1,202,717		1,204,015		1,189,274
Consumer (loans to Individual)		463,471		456,916		460,954		460,432		456,516
Total Loans (net of unearned)	$	3,786,801	$	3,730,487	$	3,676,966	$	3,631,937	$	3,595,157

Financial Update for NATL PENN BCSHS (NPBC) FOR 9/30/07
PAGE 5 OF 5
BALANCE AND YIELD/COST ANALYSIS:	AS OF					AS OF					AS OF					AS OF					AS OF					YTD					YTD
	9/30/2007					6/30/2007					3/31/2007					12/31/2006					9/30/2006					9/30/2007					9/30/2006
	(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)	$	3,756,081		7.40	%	$	3,700,384		7.35	%	$	3,639,246		7.36	%	$	3,599,781		7.25	%	$	3,547,993		7.22	%	$	3,698,998		7.37	%	$	3,426,773		7.16	%
Investment Securities (incl. trading assets)		1,356,853		5.78	%		1,302,524		5.79	%		1,271,449		5.73	%		1,220,595		5.44	%		1,190,648		5.44	%		1,310,588		5.77	%		1,173,040		5.44	%
Other Earning Assets		4,656		4.60	%		3,958		6.18	%		12,785		1.65	%		3,940		6.35	%		10,774		2.69	%		7,103		3.14	%		10,204		3.34	%
Total Earning Assets		5,117,590		6.97	%		5,006,866		6.94	%		4,923,480		6.92	%		4,824,316		6.80	%		4,749,415		6.76	%		5,016,689		6.94	%		4,610,017		6.72	%
Total Earning Assets (net of loan loss reserve)		5,060,766		7.05	%		4,948,851		7.02	%		4,864,994		7.00	%		4,764,980		6.89	%		4,689,914		6.85	%		4,958,921		7.03	%		4,550,892		6.80	%
Total Assets		5,661,055		6.30	%		5,542,100		6.27	%		5,452,202		6.25	%		5,360,420		6.12	%		5,283,841		6.08	%		5,552,550		6.27	%		5,124,228		6.04	%
Savings		200,665		1.11	%		212,624		1.12	%		216,121		1.17	%		223,624		1.29	%		238,225		1.31	%		209,747		1.13	%		253,857		1.29	%
NOWAccounts		734,140		2.67	%		689,712		2.53	%		625,108		2.30	%		723,131		2.71	%		734,504		1.68	%		683,386		2.51	%		758,782		2.17	%
Money Market Accounts		965,630		3.65	%		944,773		3.68	%		939,598		3.65	%		906,398		3.52	%		854,579		4.14	%		950,094		3.66	%		736,762		3.28	%
Certificates		1,457,016		4.76	%		1,437,808		4.74	%		1,476,314		4.69	%		1,479,073		4.59	%		1,475,237		4.44	%		1,456,975		4.73	%		1,408,518		4.18	%
Total Int. Bearing Deposits		3,357,451		3.77	%		3,284,917		3.74	%		3,257,141		3.70	%		3,332,226		3.67	%		3,302,545		3.52	%		3,300,202		3.73	%		3,157,919		3.26	%
Non-Interest Bearing Deposits		499,398					500,580					487,661					492,839					503,751					495,924					506,888
Total Deposits		3,856,849		3.28	%		3,785,497		3.24	%		3,744,802		3.22	%		3,825,065		3.20	%		3,806,296		3.06	%		3,796,126		3.25	%		3,664,807		2.81	%
Short-Term Borrowings		437,019		4.03	%		496,311		4.28	%		503,795		4.14	%		432,623		3.75	%		533,418		3.85	%		478,797		4.15	%		529,510		3.68	%
Long-Term Borrowings		770,371		5.31	%		660,668		5.14	%		598,757		5.17	%		515,857		5.47	%		374,798		5.44	%		677,227		5.22	%		380,097		5.39	%
Total Int. Bearing Liabilities (incl. non-int bearing deposits)		5,064,239		3.65	%		4,942,476		3.60	%		4,847,354		3.55	%		4,773,545		3.49	%		4,714,512		3.34	%		4,952,150		3.60	%		4,574,414		3.12	%
Total Int. Bearing Liabilities		4,564,841		4.05	%		4,441,896		4.01	%		4,359,693		3.95	%		4,280,706		3.89	%		4,210,761		3.74	%		4,456,226		4.00	%		4,067,526		3.51	%
Net Yield on Earning Assets (net of loan loss reserve): (Margin)				3.39	%				3.43	%				3.46	%				3.39	%				3.50	%				3.43	%				3.67	%
Net Yield on Earning Assets: (Margin)				3.35	%				3.39	%				3.42	%				3.35	%				3.45	%				3.39	%				3.62	%

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	80	79	79
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)					1	1	1	1
Total Number of ATMs				83	83	83	82	82
	MD
Total Number of Banking Offices				1	1	1	1	1
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)					0	0	0	0
Total Number of ATMs				1	1	1	1	1
	TOTAL
Total Number of Banking Offices				82	81	81	80	80
Total Number of Insured Subsidiaries (Bank & Thrift Subsidiaries)					1	1	1	1
Total Number of ATMs				84	84	84	83	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: