National Penn Bank

Boyertown, PA · Cert 7414

FDIC · 128 branches

Q1 2016

$9.6BAssets

$6.2BLoans

$6.9BDeposits

$1.1BEquity

Loan mix

Deposit mix

NIM

Market Position · Philadelphia-Camden-Wilmington, PA-NJ-DE-MD · 2015 SOD (annual) · 0.6% share · #17 of 133 inst. · $2.5B of $437.1B

17.6% Lehigh

17.8% Northampton

6.4% Berks

6.6% Chester

Earnings: ROA of 1.08%, down 10 bps year over year; NIM at 2.92%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.09%.

Return on Assets (YTD, annualized)

1.08%-10 bps YoY

Net Interest Margin (YTD, annualized)

2.92%-15 bps YoY

Efficiency Ratio (YTD, annualized)

60.33%+321 bps YoY

Tier 1 Leverage Ratio

8.32%-24 bps YoY

Year to date, annualized, through each quarter.

Metric	Q1 2015	Q2 2015	Q3 2015	Q4 2015	Q1 2016	YoY Δ	Trend
Earnings
Return on Assets	1.18%	1.18%	1.19%	1.22%	1.08%	-10 bps
Return on Equity	10.39%	10.30%	10.24%	10.53%	9.69%	-70 bps
Net Interest Margin	3.07%	3.03%	3.03%	2.99%	2.92%	-15 bps
Efficiency Ratio	57.12%	57.09%	56.89%	56.63%	60.33%	+321 bps
Non-Interest Burden	1.31%	1.28%	1.26%	1.24%	1.35%	+4 bps
Growth
Asset Growth (YoY)	12.21%	11.50%	11.15%	0.57%	0.53%	-1,168 bps
Loan Growth (YoY)	14.02%	14.10%	12.77%	0.96%	1.53%	-1,248 bps
Deposit Growth (YoY)	11.73%	12.45%	8.51%	2.14%	0.03%	-1,170 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.13%	0.25%	0.23%	0.20%	0.09%	-3 bps
Allowance / Loans	1.46%	1.37%	1.35%	1.27%	1.25%	-22 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	8.56%	8.89%	9.26%	8.49%	8.32%	-24 bps
Total Risk-Based Capital	12.41%	13.01%	13.42%	12.36%	12.03%	-38 bps
Equity / Assets	11.50%	11.71%	12.09%	11.23%	11.15%	-35 bps
Liquidity & Funding
Loans / Deposits	88.81%	88.97%	86.36%	88.98%	90.14%	+133 bps
Liquid Assets / Assets	10.57%	10.00%	9.67%	9.04%	8.67%	-191 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a