NPBC National Penn Bancshares, Inc.

• Adjusted net income per share for 2015, exclusive of merger-related charges, increases 13% to $0.80 from $0.71 for 2014
• Adjusted net income per share for the fourth quarter of $0.21 with return on average assets of 1.22% and efficiency ratio of 55%
• Classified loans decline for 6th consecutive year
• Declared first quarter 2016 cash dividend of $0.11 per share

National Penn Bancshares, Inc. (Nasdaq: NPBC) reported net income of $28.9 million, or $0.20 per diluted share, for the fourth quarter of 2015, compared to net income of $27.9 million, or $0.20 per diluted share, in the prior quarter. Exclusive of merger-related expenses, adjusted net income for the quarter was $29.6 million, or $0.21 per share, compared to $29.2 million or $0.21 per share, in the third quarter. Net income for the year was $110.7 million, or $0.78 per diluted share, while adjusted net income was $112.8 million, or $0.80 per share, compared to adjusted net income of $100.8 million, or $0.71 per diluted share, for 2014. Adjusted return on average assets, exclusive of merger-related costs, remained strong at 1.22% and 1.18% for the fourth quarter and full year 2015, respectively.

“In the fourth quarter we continued to deliver consistent, high level performance,” said Scott V. Fainor, president and CEO of National Penn. “Additionally, we are pleased to have obtained all requisite approvals for our merger with BB&T in a relatively short time frame, reflecting the quality of both organizations.”

Net Interest Margin and Loan Growth

Net interest income was $66.6 million in the fourth quarter and net interest margin was 3.16% compared to $67.9 million and 3.25%, respectively, in the third quarter. For 2015, the net interest margin of 3.25% was consistent with our expectations, but declined from 3.40% in 2014 due to the prolonged period of low interest rates. Net interest income was $270.0 million in 2015 compared to $257.1 million in 2014, reflecting a 9% increase in average earning assets primarily related to the full year impact of the TF Financial transaction which closed on October 24, 2014. Total loans outstanding of $6.2 billion was relatively flat during the year, and was impacted by our strategy to sell long-term fixed rate residential mortgage loans throughout the year.

Asset Quality

Asset quality trends remained strong in the fourth quarter and throughout 2015. Non-performing loans declined 6% in the quarter and 29% for the year while classified loans declined 6% and 28% for the quarter and year, respectively. Net charge-offs in the quarter were $1.6 million or 0.10% of average total loans (annualized) and the ratio of allowance for loan losses to non-performing loans increased to 188% at December 31, 2015 as compared to 186% at September 30, 2015 and 153% at December 31, 2014. As a result of the continuing improvement in asset quality and the refining of our processes, including the allocation of previously unallocated reserves, a negative provision for loan losses of $2.5 million was recorded in the quarter compared to provision expense of $1.0 million in the previous quarter.

Other Income and Operating Expenses

Exclusive of non-core items, which include a $1.0 million loss on an unconsolidated equity investment in the fourth quarter of 2015 and certain bank owned life insurance income in the prior quarter, non-interest income was relatively flat at $23.5 million.

Non-interest expenses remain very well-controlled at $52.3 million for the quarter, including $1.1 million of merger-related costs. Excluding merger-related costs, non-interest expenses for 2015 were $212.1 million compared to $208.4 million in 2014, an increase of 1.8%, inclusive of the acquisition of TF Financial in the fourth quarter of 2014. The efficiency ratio was 55.25% for the fourth quarter and 55.79% for the year.

Capital

National Penn’s Board of Directors declared a first quarter 2016 dividend of eleven cents ($0.11) per common share to shareholders of record as of Monday, February 8, 2016, payable on Wednesday, February 17, 2016. At December 31, 2015, capital remained strong as National Penn’s tier 1 common and tangible common equity to tangible assets ratios were 12.43% and 9.18%, respectively.

“As previously announced, we anticipate the closing of the transaction with BB&T to be completed on or about April 1, 2016 with systems conversion mid-2016,” said Scott V. Fainor. “We look forward to our affiliation with BB&T which will broaden the products and services we offer our customers and continue our commitment to the communities we serve.”

About National Penn Bancshares, Inc.:

National Penn Bancshares, Inc., with approximately $9.6 billion in assets, is a bank holding company headquartered in Allentown, Pennsylvania. National Penn Bank operates 124 branch offices throughout Pennsylvania, New Jersey and Maryland.

National Penn’s financial services affiliates and divisions include its National Penn Investors Trust Company division; Institutional Advisors LLC; and National Penn Insurance Services 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, including the attached Financial Highlights and financial data tables, contains supplemental financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). National Penn’s management uses these non-GAAP measures in its analysis of National Penn’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the following non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of National Penn.

• Tangible common equity excludes goodwill and intangible assets and preferred equity. Banking and financial institution regulators also exclude goodwill and intangible assets from shareholders’ equity when assessing the capital adequacy of a financial institution. Tangible common equity provides a method to assess the Company’s tangible capital trends.
• Tangible book value expresses tangible common equity on a per share basis. Tangible book value provides a method to assess the level of tangible net assets on a per share basis.
• Adjusted net income and adjusted return on average assets exclude the effects of certain gains and losses, adjusted for taxes when applicable. Adjusted net income and adjusted return on average assets provide methods to assess earnings performance by excluding items that management believes are not comparable among the periods presented.
• Efficiency ratio expresses operating expenses as a percentage of fully-taxable equivalent net interest income plus non-interest income. Operating expenses exclude items from non-interest expense that management believes are not comparable among the periods presented. Non-interest income is also adjusted to exclude items that management believes are not comparable among the periods presented. Efficiency ratio is used as a method for management to assess its operating expense level and to compare to financial institutions of varying sizes.

Management believes the use of non-GAAP measures will help readers compare National Penn’s current results to those of prior periods as presented in the accompanying Financial Highlights and financial data tables.

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,” ”could,” “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: Risks, uncertainties and other factors relating to the merger of National Penn with and into BB&T Corporation, including the ability to meet closing conditions to the merger, delay in closing the merger, difficult conditions in the capital markets and the economy generally, regulatory requirements or other actions mandated by National Penn’s regulators, recent and ongoing changes to the state and federal regulatory schemes under which National Penn and other financial services companies operate (including the Dodd-Frank Act and regulations adopted or to be adopted to implement that Act), delayed improvement in the credit quality of loans, the effect of credit risk exposure, the ability to strategically manage our capital position and to raise capital, allowance for loan losses may prove inadequate, variations in interest rates, the geographic concentration of National Penn’s operations, declines in the value of National Penn’s assets and the effect of any resulting impairment charges, competition for personnel and from other financial institutions, interruptions or breaches of National Penn’s security systems, the development and maintenance of National Penn’s information technology, potential dilution of National Penn’s shareholders, the ability of National Penn and its subsidiaries to pay dividends, severe weather and natural disasters, and the nature and frequency of litigation and other similar proceedings to which National Penn may be a party. 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, 2014, 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. 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.

  Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015             Unaudited, dollars in thousands except share and per share data As of 12/31/2015 9/30/2015 12/31/2014 SUMMARY BALANCE SHEET Total assets $ 9,598,902 $ 9,587,459 $ 9,750,865 Investment securities and other securities 2,503,081 2,503,203 2,519,215 Total loans 6,205,199 6,168,528 6,146,457 Deposits 6,704,936 6,959,275 6,729,745 Borrowings 1,629,689 1,359,657 1,720,404 Shareholders' equity 1,161,557 1,158,423 1,188,639 Tangible book value per common share (2) $ 6.08 $ 6.05 $ 5.96 Tangible common equity / tangible assets (2) 9.18 % 9.15 % 9.30 %   Three Months Ended Twelve Months Ended 12/31/2015 9/30/2015 12/31/2014 12/31/2015 12/31/2014 EARNINGS Total interest income $ 75,428 $ 76,529 $ 75,990 $ 304,468 $ 288,019 Total interest expense   8,812     8,662     8,346     34,468     30,905   Net interest income 66,616 67,867 67,644 270,000 257,114 Provision for loan losses   (2,500 )   1,000     3,500     500     5,751   Net interest income after provision for loan losses 69,116 66,867 64,144 269,500 251,363 Net gains on investment securities - - 13 - 21 Other non-interest income 22,527 25,026 23,417 95,170 92,154 Merger related expenses 1,121 1,840 2,878 2,961 2,878 Other non-interest expense   51,220     52,377     51,836     212,139     208,445   Income before income taxes 39,302 37,676 32,860 149,570 132,215 Income tax expense   10,452     9,800     8,383     38,879     33,509   Net income $ 28,850   $ 27,876   $ 24,477   $ 110,691   $ 98,706     PERFORMANCE RATIOS Net interest margin 3.16 % 3.25 % 3.33 % 3.25 % 3.40 % Return on average assets 1.19 % 1.16 % 1.05 % 1.16 % 1.13 % Adjusted return on average assets (3) 1.22 % 1.22 % 1.14 % 1.18 % 1.16 % Return on average shareholders' equity 9.91 % 9.69 % 8.30 % 9.68 % 8.86 % Return on average tangible common equity (1) 13.53 % 13.30 % 11.09 % 13.28 % 11.72 % Adjusted return on average tangible common equity 13.87 % 13.94 % 12.02 % 13.53 % 11.97 % Efficiency ratio (4) 55.25 % 54.23 % 54.53 % 55.79 % 57.06 %   PER SHARE Basic earnings $ 0.21 $ 0.20 $ 0.17 $ 0.79 $ 0.70 Diluted earnings 0.20 0.20 0.17 0.78 0.70 Adjusted diluted earnings 0.21 0.21 0.18 0.80 0.71 Dividends 0.11 0.11 0.11 0.44 0.41 Average shares - basic 140,320,082 140,235,094 145,277,964 140,889,264 141,281,690 Average shares - diluted 141,048,622 140,916,194 145,850,861 141,549,226 141,823,607                         (1) RECONCILIATION TABLES FOR NON-GAAP FINANCIAL MEASURES Three Months Ended Twelve Months Ended 12/31/2015 9/30/2015 12/31/2014 12/31/2015 12/31/2014 Return on average tangible common equity Return on average shareholders' equity 9.91 % 9.69 % 8.30 % 9.68 % 8.86 % Effect of goodwill and intangibles   3.62 %   3.61 %   2.79 %   3.60 %   2.86 % Return on average tangible common equity   13.53 %   13.30 %   11.09 %   13.28 %   11.72 % Average tangible equity Average shareholders' equity $ 1,155,465 $ 1,141,586 $ 1,169,815 $ 1,143,792 $ 1,113,535 Average goodwill and intangibles   (309,339 )   (309,969 )   (294,238 )   (310,176 )   (271,684 ) Average tangible common equity $ 846,126   $ 831,617   $ 875,577   $ 833,616   $ 841,851       Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015             Unaudited, dollars in thousands except share and per share data As of 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 ASSETS Cash and due from banks $ 104,407 $ 101,975 $ 120,010 $ 102,500 $ 110,784 Interest-earning deposits with banks   99,689     119,616     118,375     131,166     303,055   Total cash and cash equivalents 204,096 221,591 238,385 233,666 413,839   Investment securities available-for-sale, at fair value 1,668,829 1,641,230 1,598,351 1,585,671 1,530,661 Investment securities held-to-maturity 768,634 807,574 842,192 884,211 921,042 Other securities 65,618 54,399 67,072 67,288 67,512 Loans held-for-sale 10,000 6,239 9,693 11,239 4,178   Loans 6,195,199 6,162,289 6,158,788 6,120,205 6,142,279 Allowance for loan losses   (79,045 )   (83,148 )   (84,816 )   (89,729 )   (90,675 ) Loans, net 6,116,154 6,079,141 6,073,972 6,030,476 6,051,604   Premises and equipment, net 106,209 109,181 111,353 113,217 116,414 Accrued interest receivable 29,030 29,697 29,066 30,018 29,491 Bank owned life insurance 197,908 196,643 199,656 198,123 171,775 Other real estate owned and other repossessed assets 4,596 4,719 5,186 5,474 4,867 Goodwill 302,940 302,940 302,940 302,940 302,244 Other intangible assets, net 6,101 6,725 7,353 7,985 8,757 Unconsolidated investments 7,575 8,552 8,582 8,101 8,124 Other assets   111,212     118,828     110,513     119,545     120,357   TOTAL ASSETS $ 9,598,902   $ 9,587,459   $ 9,604,314   $ 9,597,954   $ 9,750,865     LIABILITIES Non-interest bearing deposits $ 1,185,936 $ 1,169,922 $ 1,200,631 $ 1,142,192 $ 1,085,158 Interest bearing deposits   5,519,000     5,789,353     5,532,853     5,555,070     5,644,587   Total deposits 6,704,936 6,959,275 6,733,484 6,697,262 6,729,745   Customer repurchase agreements 593,540 573,986 539,850 603,880 607,705 Federal Home Loan Bank advances and other borrowings 833,828 583,350 889,366 854,375 910,378 Senior long-term debt 125,000 125,000 125,000 125,000 125,000 Subordinated debentures 77,321 77,321 77,321 77,321 77,321 Accrued interest payable and other liabilities   102,720     110,104     101,615     109,021     112,077   TOTAL LIABILITIES   8,437,345     8,429,036     8,466,636     8,466,859     8,562,226     SHAREHOLDERS' EQUITY Common stock 1,391,151 1,389,602 1,388,341 1,387,136 1,390,130 Accumulated deficit (87,043 ) (100,459 ) (112,913 ) (124,740 ) (135,246 ) Accumulated other comprehensive loss (17,891 ) (5,727 ) (11,686 ) (3,989 ) (10,991 ) Treasury stock   (124,660 )   (124,993 )   (126,064 )   (127,312 )   (55,254 ) TOTAL SHAREHOLDERS' EQUITY   1,161,557     1,158,423     1,137,678     1,131,095     1,188,639     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,598,902   $ 9,587,459   $ 9,604,314   $ 9,597,954   $ 9,750,865       PER SHARE DATA Book value $ 8.28 $ 8.26 $ 8.12 $ 8.08 $ 8.08 Tangible book value (2) $ 6.08 $ 6.05 $ 5.90 $ 5.86 $ 5.96 Dividends - quarterly $ 0.11 $ 0.11 $ 0.11 $ 0.11 $ 0.11 Shares outstanding (end of period, net of treasury) 140,308,640 140,283,395 140,184,234 140,068,761 147,136,084                         (2) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES   Total shareholders' equity $ 1,161,557 $ 1,158,423 $ 1,137,678 $ 1,131,095 $ 1,188,639 Goodwill and intangibles   (309,041 )   (309,665 )   (310,293 )   (310,925 )   (311,001 ) Tangible common equity $ 852,516   $ 848,758   $ 827,385   $ 820,170   $ 877,638   Shares outstanding 140,308,640 140,283,395 140,184,234 140,068,761 147,136,084 Tangible book value per share $ 6.08 $ 6.05 $ 5.90 $ 5.86 $ 5.96   Total assets $ 9,598,902 $ 9,587,459 $ 9,604,314 $ 9,597,954 $ 9,750,865 Goodwill and intangibles   (309,041 )   (309,665 )   (310,293 )   (310,925 )   (311,001 ) Tangible assets $ 9,289,861   $ 9,277,794   $ 9,294,021   $ 9,287,029   $ 9,439,864   Tangible common equity/tangible assets 9.18 % 9.15 % 8.90 % 8.83 % 9.30 %     Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015                 Unaudited, dollars in thousands except share and per share data For the Quarter Ended For the Twelve Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015 12/31/2014 INTEREST INCOME Loans, including fees $ 58,610 $ 59,735 $ 58,077 $ 58,424 $ 58,532 $ 234,846 $ 217,447 Investment securities Taxable 11,462 11,180 11,457 12,512 11,273 46,611 45,453 Tax-exempt 5,298 5,577 5,843 6,120 6,129 22,838 24,976 Deposits with banks   58     37     40     38     56     173     143   Total interest income   75,428     76,529     75,417     77,094     75,990     304,468     288,019   INTEREST EXPENSE Deposits 4,770 4,740 4,618 4,521 4,616 18,649 18,543 Customer repurchase agreements 418 403 402 405 432 1,628 1,624 Repurchase agreements - - - - - - 1,406 Federal Home Loan Bank advances and other borrowings 1,704 1,606 1,659 1,593 1,398 6,562 5,613 Senior long-term debt 1,366 1,366 1,366 1,366 1,365 5,464 1,592 Subordinated debentures   554     547     537     527     535     2,165     2,127   Total interest expense   8,812     8,662     8,582     8,412     8,346     34,468     30,905   Net interest income 66,616 67,867 66,835 68,682 67,644 270,000 257,114 Provision for loan losses   (2,500 )   1,000     1,000     1,000     3,500     500     5,751   Net interest income after provision for loan losses   69,116     66,867     65,835     67,682     64,144     269,500     251,363   NON-INTEREST INCOME Wealth management 6,480 6,654 6,854 6,650 7,123 26,638 28,067 Service charges on deposit accounts 3,415 3,468 3,328 3,307 3,725 13,518 14,469 Insurance commissions and fees 3,009 3,128 3,219 3,182 2,979 12,538 12,814 Cash management and electronic banking fees 5,089 5,068 5,153 4,714 4,951 20,024 19,066 Mortgage banking 1,178 1,617 1,652 1,374 1,213 5,821 3,852 Bank owned life insurance 1,750 2,746 1,563 1,374 1,341 7,433 4,995 Earnings (losses) of unconsolidated investments (977 ) 133 589 - (43 ) (255 ) (549 ) Gain on sale of non-performing loans - - - - - - 946 Other operating income 2,583 2,212 2,329 2,329 2,128 9,453 8,494 Net gains on sales of investment securities   -     -     -     -     13     -     21   Total non-interest income   22,527     25,026     24,687     22,930     23,430     95,170     92,175   NON-INTEREST EXPENSE Salaries, wages and employee benefits 28,400 29,570 30,123 29,998 27,836 118,091 115,579 Premises and equipment 8,147 8,189 8,508 9,147 8,254 33,991 31,944 FDIC insurance 1,280 1,220 1,313 1,458 1,344 5,271 5,001 Other operating expenses 13,393 13,398 14,016 13,979 14,402 54,786 55,921 Merger related expenses   1,121     1,840     -     -     2,878     2,961     2,878   Total non-interest expense   52,341     54,217     53,960     54,582     54,714     215,100     211,323   Income before income taxes 39,302 37,676 36,562 36,030 32,860 149,570 132,215 Income tax expense   10,452     9,800     9,324     9,303     8,383     38,879     33,509   NET INCOME $ 28,850   $ 27,876   $ 27,238   $ 26,727   $ 24,477   $ 110,691   $ 98,706     PER SHARE Basic earnings $ 0.21 $ 0.20 $ 0.19 $ 0.19 $ 0.17 $ 0.79 $ 0.70 Diluted earnings $ 0.20 $ 0.20 $ 0.19 $ 0.19 $ 0.17 $ 0.78 $ 0.70 Adjusted diluted earnings $ 0.21 $ 0.21 $ 0.19 $ 0.19 $ 0.18 $ 0.80 $ 0.71 Average shares - basic 140,320,082 140,235,094 140,126,314 142,911,230 145,277,964 140,889,264 141,281,690 Average shares - diluted 141,048,622 140,916,194 140,752,713 143,513,420 145,850,861 141,549,226 141,823,607   SUPPLEMENTAL DATA (annualized, average) Return on assets 1.19 % 1.16 % 1.14 % 1.14 % 1.05 % 1.16 % 1.13 % Adjusted return on assets (3) 1.22 % 1.22 % 1.14 % 1.14 % 1.14 % 1.18 % 1.16 % Return on shareholders' equity 9.91 % 9.69 % 9.66 % 9.45 % 8.30 % 9.68 % 8.86 % Return on tangible common equity (1) 13.53 % 13.30 % 13.32 % 12.96 % 11.09 % 13.28 % 11.72 % Adjusted return on tangible common equity 13.87 % 13.94 % 13.32 % 12.96 % 12.02 % 13.53 % 11.97 % Efficiency ratio (4) 55.25 % 54.23 % 56.59 % 57.10 % 54.53 % 55.79 % 57.06 %                                 (3) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES   Adjusted net income reconciliation Net income $ 28,850 $ 27,876 $ 27,238 $ 26,727 $ 24,477 $ 110,691 $ 98,706 After tax merger related expenses   729     1,350     -     -     2,054     2,079     2,054   Adjusted net income $ 29,579   $ 29,226   $ 27,238   $ 26,727   $ 26,531   $ 112,770   $ 100,760     Adjusted diluted earnings per share reconciliation Diluted earnings per share $ 0.20 $ 0.20 $ 0.19 $ 0.19 $ 0.17 $ 0.78 $ 0.70 After tax merger related expenses   0.01     0.01     -     -     0.01     0.02     0.01   Adjusted diluted earnings per share $ 0.21   $ 0.21   $ 0.19   $ 0.19   $ 0.18   $ 0.80   $ 0.71     Adjusted net income $ 29,579 $ 29,226 $ 27,238 $ 26,727 $ 26,531 $ 112,770 $ 100,760 Average assets $ 9,615,022 $ 9,526,850 $ 9,544,673 $ 9,524,279 $ 9,269,113 $ 9,552,884 $ 8,709,629 Adjusted return on average assets (annualized) 1.22 % 1.22 % 1.14 % 1.14 % 1.14 % 1.18 % 1.16 %   (4) RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES   Efficiency ratio calculation Non-interest expense $ 52,341 $ 54,217 $ 53,960 $ 54,582 $ 54,714 $ 215,100 $ 211,323 Less: Merger related expenses   1,121     1,840     -     -     2,878     2,961     2,878   Operating expenses $ 51,220   $ 52,377   $ 53,960   $ 54,582   $ 51,836   $ 212,139   $ 208,445     Net interest income (taxable equivalent) $ 70,187 $ 71,563 $ 70,660 $ 72,654 $ 71,641 $ 285,064 $ 273,150   Non-interest income 22,527 25,026 24,687 22,930 23,430 95,170 92,175 Less: Net gains on investment securities   -     -     -     -     13     -     21   Adjusted revenue $ 92,714   $ 96,589   $ 95,347   $ 95,584   $ 95,058   $ 380,234   $ 365,304     Efficiency ratio 55.25 % 54.23 % 56.59 % 57.10 % 54.53 % 55.79 % 57.06 %           Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015         Unaudited, dollars in thousands except share and per share data   For the Quarter Ended For the Twelve Months Ended 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015 12/31/2014 CHARGE-OFFS Loan charge-offs $ 3,131 $ 4,418 $ 7,789 $ 3,074 $ 3,781 $ 18,412 $ 17,021 Recoveries on loans   (1,528 )   (1,750 )   (1,876 )   (1,128 )   (2,029 )   (6,282 )   (5,578 ) Net loan charge-offs $ 1,603   $ 2,668   $ 5,913   $ 1,946   $ 1,752   $ 12,130   $ 11,443   Net loan charge-offs to average total loans (annualized) 0.10 % 0.17 % 0.39 % 0.13 % 0.12 % 0.20 % 0.21 %   NET CHARGE-OFF DETAIL Commercial and industrial loans $ (602 ) $ 1,444 $ 4,874 $ 422 $ (537 ) $ 6,138 $ 2,681   Commercial real estate-permanent 96 (58 ) (308 ) 601 245 331 2,339 Commercial real estate-construction   264     (196 )   (92 )   (95 )   (628 )   (119 )   (729 ) Total commercial real estate loans 360 (254 ) (400 ) 506 (383 ) 212 1,610   Residential mortgages 670 598 70 248 1,139 1,586 3,120 Home equity lines and loans 375 407 1,064 230 723 2,076 2,251 All other consumer loans   800     473     305     540     810     2,118     1,781   Total consumer loans   1,845     1,478     1,439     1,018     2,672     5,780     7,152     Net loans charged-off $ 1,603   $ 2,668   $ 5,913   $ 1,946   $ 1,752   $ 12,130   $ 11,443     As of 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 ASSET QUALITY AND OTHER DATA Non-accrual commercial and industrial loans $ 5,136 $ 6,234 $ 8,923 $ 21,107 $ 21,931   Non-accrual commercial real estate-permanent 6,041 7,068 7,160 6,781 7,915 Non-accrual commercial real estate-construction   5,257     8,504     8,443     8,204     8,113   Total non-accrual commercial real estate loans 11,298 15,572 15,603 14,985 16,028   Non-accrual residential mortgages 10,360 8,171 8,307 8,326 7,706 Non-accrual home equity lines and loans 4,652 4,234 4,027 3,762 3,426 All other non-accrual consumer loans   1,181     1,387     1,387     1,458     1,746   Total non-accrual consumer loans 16,193 13,792 13,721 13,546 12,878           Total non-accrual loans 32,627 35,598 38,247 49,638 50,837   Restructured loans   9,317     9,047     8,792     8,557     8,255   Total non-performing loans 41,944 44,645 47,039 58,195 59,092   Acquired other real estate owned 3,450 3,450 3,450 3,450 3,675 Other real estate owned and repossessed assets   1,146     1,269     1,736     2,024     1,192   Total other real estate owned and repossessed assets   4,596     4,719     5,186     5,474     4,867   Total non-performing assets 46,540 49,364 52,225 63,669 63,959   Loans 90+ days past due & still accruing   1,707     1,752     1,903     2,230     2,183   Total non-performing assets and loans 90+ days past due $ 48,247   $ 51,116   $ 54,128   $ 65,899   $ 66,142     Allowance for loan losses $ 79,045   $ 83,148   $ 84,816   $ 89,729   $ 90,675   Allowance for loan losses/non-performing loans   188.5 %   186.2 %   180.3 %   154.2 %   153.4 %

Allowance for loan losses/non-performing assets and loans 90+ days past due (excluding acquired other real estate owned)

  176.5 %   174.4 %   167.4 %   143.7 %   145.2 %

Allowance for loan losses/non-performing assets and loans 90+ days past due

  163.8 %   162.7 %   156.7 %   136.2 %   137.1 % Allowance for loan losses/total originated loans   1.37 %   1.46 %   1.50 %   1.61 %   1.63 % Allowance for loan losses/total loans   1.27 %   1.35 %   1.37 %   1.46 %   1.48 % Provision/charge-offs, net   -156.0 %   37.5 %   16.9 %   51.4 %   199.8 %     Originated classified loans $ 117,621 $ 124,438 $ 124,837 $ 142,892 $ 153,255 Acquired classified loans   326     1,121     2,671     1,715     9,534   Total classified loans $ 117,947   $ 125,559   $ 127,508   $ 144,607   $ 162,789     Originated classified loans/total originated loans   2.04 %   2.19 %   2.21 %   2.56 %   2.75 % Total classified loans/total loans   1.90 %   2.04 %   2.07 %   2.36 %   2.65 % Delinquent loans (a) $ 20,263   $ 21,293   $ 16,943   $ 15,968   $ 22,300   Delinquent loans/total loans   0.33 %   0.35 %   0.27 %   0.26 %   0.36 % Non-performing loans/total loans   0.68 %   0.72 %   0.76 %   0.95 %   0.96 %   REGULATORY CAPITAL DATA (b) Tier 1 capital $ 947,051   $ 925,046   $ 906,281   $ 887,854   $ 963,629   Common equity tier 1 capital   873,262     855,130     838,602     822,511     Total capital   1,026,096     1,008,194     991,097     976,043     1,050,295   Risk-weighted assets   7,026,916     6,969,855     6,953,013     7,053,656     6,929,235   Tier 1 leverage ratio   10.19 %   10.06 %   9.85 %   9.67 %   10.78 % Tier 1 ratio   13.48 %   13.27 %   13.03 %   12.59 %   13.91 % Common equity tier 1 ratio   12.43 %   12.27 %   12.06 %   11.66 %   Total capital ratio   14.60 %   14.47 %   14.25 %   13.84 %   15.16 %   (a) Includes loans 30-89 days past due and loans 90+ days past due and still accruing

(b) 2015 Regulatory Capital Data calculated in accordance with BASEL III

        Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015       Unaudited, dollars in thousands except share and per share data As of Earning Assets / Liabilities 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014

Loan portfolio composition (regulatory):

Commercial / industrial $ 862,892 $ 875,974 $ 890,890 $ 895,356 $ 852,804 Commercial real estate (c) 2,289,691 2,293,076 2,281,023 2,186,626 2,172,858 Residential mortgage 1,453,390 1,464,554 1,471,769 1,508,968 1,550,378 Real estate construction and land development 215,756 200,645 188,473 229,428 261,916 Home equity 880,980 876,219 874,386 867,784 875,903 Consumer 257,792 253,711 246,645 238,320 239,807 Other   244,698   204,349   215,295   204,962   192,791 Total 6,205,199 6,168,528 6,168,481 6,131,444 6,146,457   Investment securities and other securities 2,503,081 2,503,203 2,507,615 2,537,170 2,519,215 Other earning assets   99,689   119,616   118,375   131,166   303,055 Total earning assets (net of loan loss reserve) $ 8,728,924 $ 8,708,199 $ 8,709,655 $ 8,710,051 $ 8,878,052  

Loan portfolio composition (internal):

Commercial & industrial Business purpose, real estate secured $ 939,424 $ 940,869 $ 922,413 $ 918,985 $ 929,999 Business purpose, not secured by real estate 1,055,847 1,030,537 1,054,746 1,046,875 995,051 Commercial real estate (owner occupied) Permanent 663,577 654,178 658,457 635,880 623,712 Construction / development   36,299   39,119   35,006   53,635   51,105 Total commercial & industrial 2,695,147 2,664,703 2,670,622 2,655,375 2,599,867   Commercial real estate (non-owner occupied) Permanent 1,290,072 1,291,107 1,291,059 1,226,847 1,229,318 Construction / development   148,533   145,975   137,351   169,271   203,542 Total commercial real estate   1,438,605   1,437,082   1,428,410   1,396,118   1,432,860 Total commercial 4,133,752 4,101,785 4,099,032 4,051,493 4,032,727   Consumer Residential mortgage (personal purpose) Permanent 850,214 852,672 856,976 869,562 893,732 Construction   11,150   9,851   10,192   15,384   14,625 Total residential mortgages 861,364 862,523 867,168 884,946 908,357   Home equity and direct installment 197,433 210,455 223,573 239,903 253,358 Home equity lines of credit   709,781   693,674   679,754   661,368   660,472 Total home equity 907,214 904,129 903,327 901,271 913,830   Private banking credit lines 86,133 87,556 90,946 90,919 96,689 Indirect vehicle and other   206,736   206,296   198,315   191,576   190,676 All other consumer   292,869   293,852   289,261   282,495   287,365 Total consumer   2,061,447   2,060,504   2,059,756   2,068,712   2,109,552   Loans 6,195,199 6,162,289 6,158,788 6,120,205 6,142,279   Loans held-for-sale 10,000 6,239 9,693 11,239 4,178           Total loans $ 6,205,199 $ 6,168,528 $ 6,168,481 $ 6,131,444 $ 6,146,457  

Deposit composition:

Savings $ 722,413 $ 711,544 $ 722,051 $ 711,375 $ 678,294 NOW accounts 1,939,388 2,166,339 1,886,405 1,880,649 1,913,399 Money market accounts 1,718,791 1,746,808 1,734,059 1,755,276 1,827,233 Time deposits less than $100k 820,616 838,417 859,472 872,906 891,964 Time deposits $100k or greater   317,792   326,245   330,866   334,864   333,697 Total interest bearing deposits 5,519,000 5,789,353 5,532,853 5,555,070 5,644,587   Non-interest bearing deposits   1,185,936   1,169,922   1,200,631   1,142,192   1,085,158   Total deposits $ 6,704,936 $ 6,959,275 $ 6,733,484 $ 6,697,262 $ 6,729,745   (c) Includes owner occupied                                                                 Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015                     Unaudited, dollars in thousands except share and per share data Quarterly, as of Twelve Months, as of 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015 12/31/2014 Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield Avg Bal Yield   Total loans* $ 6,196,517 3.80% $ 6,144,998 3.90% $ 6,146,507 3.83% $ 6,131,280 3.91% $ 5,932,806 3.96% $ 6,154,977 3.86% $ 5,511,872 3.99% Investment securities* 2,513,273 3.10% 2,498,640 3.14% 2,515,825 3.26% 2,529,343 3.52% 2,470,862 3.32% 2,514,183 3.25% 2,423,876 3.46% Interest earning deposits   115,537 0.20%   91,720 0.16%   92,867 0.17%   97,917 0.16%   124,710 0.18%   99,537 0.17%   86,737 0.16%   Total earning assets   8,825,327 3.55%   8,735,358 3.64%   8,755,199 3.63%   8,758,540 3.75%   8,528,378 3.72%   8,768,697 3.64%   8,022,485 3.79% Total assets   9,615,022   9,526,850   9,544,673   9,524,279   9,269,113   9,552,884   8,709,629   Savings 714,568 0.10% 716,540 0.10% 714,135 0.10% 693,482 0.11% 638,913 0.10% 709,758 0.10% 568,618 0.10% NOW accounts 2,058,188 0.14% 2,012,605 0.14% 1,908,400 0.14% 1,864,261 0.14% 1,987,346 0.15% 1,961,537 0.14% 1,793,436 0.14% Money market accounts 1,722,411 0.22% 1,746,975 0.22% 1,761,906 0.22% 1,836,268 0.22% 1,788,019 0.22% 1,766,524 0.22% 1,707,194 0.22% Time deposits   1,152,866 0.99%   1,174,011 0.97%   1,199,076 0.94%   1,210,270 0.90%   1,210,685 0.88%   1,183,871 0.95%   1,188,923 0.98%   Total interest bearing deposits   5,648,033 0.34%   5,650,131 0.33%   5,583,517 0.33%   5,604,281 0.33%   5,624,963 0.33%   5,621,690 0.33%   5,258,171 0.35%   Non-interest bearing deposits   1,183,005   1,179,132   1,143,551   1,091,409   1,078,218   1,149,606   1,014,758 Total deposits   6,831,038 0.28%   6,829,263 0.28%   6,727,068 0.28%   6,695,690 0.27%   6,703,181 0.27%   6,771,296 0.28%   6,272,929 0.30%   Customer repurchase agreements 570,780 0.29% 551,603 0.29% 556,813 0.29% 568,750 0.29% 589,944 0.29% 561,963 0.29% 555,954 0.29% Repurchase agreements - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% 28,836 4.87% Federal Home Loan Bank advances and other borrowings 743,910 0.91% 702,424 0.91% 824,456 0.81% 805,516 0.80% 503,081 1.10% 768,725 0.85% 531,522 1.06% Senior long-term debt 125,000 4.34% 125,000 4.34% 125,000 4.38% 125,000 4.43% 125,000 4.33% 125,000 4.37% 36,644 4.34% Subordinated debentures   77,321 2.84%   77,321 2.81%   77,321 2.79%   77,321 2.76%   77,321 2.75%   77,321 2.80%   77,321 2.75% Total deposits and borrowings   8,348,049 0.42%   8,285,611 0.41%   8,310,658 0.41%   8,272,277 0.41%   7,998,527 0.41%   8,304,305 0.42%   7,503,206 0.41% Total interest bearing liabilities $ 7,165,044 0.49% $ 7,106,479 0.48% $ 7,167,107 0.48% $ 7,180,868 0.48% $ 6,920,309 0.48% $ 7,154,699 0.48% $ 6,488,448 0.48%   Net interest margin (FTE) 3.16% 3.25% 3.24% 3.36% 3.33% 3.25% 3.40%   Wealth assets under management, at period end $ 2,532,685 $ 2,517,888 $ 2,587,907 $ 2,609,834 $ 2,501,015   *Fully taxable equivalent ("FTE") basis, using a 35% statutory tax rate               Financial Update for National Penn Bancshares, Inc. (NPBC) for 12/31/2015                   Unaudited   STATES OF OPERATION AND BANKING OFFICES BY STATE (LATEST AVAILABLE DATA)   Quarterly, as of 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014  

PA

Total number of retail branch offices 116 116 116 119 119 Total number of insured subsidiaries (Bank & Thrift subsidiaries) 1 1 1 1 1 Total number of ATMs 127 127 126 128 127  

NJ

Total number of retail branch offices 7 7 7 7 7 Total number of insured subsidiaries (Bank & Thrift subsidiaries) - - - - - Total number of ATMs 6 6 6 6 6  

MD

Total number of retail branch offices 1 1 1 1 1 Total number of insured subsidiaries (Bank & Thrift subsidiaries) - - - - - Total number of ATMs 1 1 1 1 1  

TOTAL

Total number of retail branch offices 124 124 124 127 127 Total number of insured subsidiaries (Bank & Thrift subsidiaries) 1 1 1 1 1 Total number of ATMs 134 134 133 135 134   EOP employees (full-time equivalent) 1,519 1,548 1,573 1,596 1,658  

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National Penn Bancshares, Inc.Investor Contact:Michael J. Hughes, 484-709-3305michael.hughes@nationalpenn.comorMedia Contact:Jacklyn Bingaman, 610-674-1325jacklyn.bingaman@nationalpenn.com