|   | x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE             |
|--------|--------|---------------------------------------------------------------------|
|   |   | SECURITIES EXCHANGE ACT OF 1934                                     |
|   |   |                                                                |
|   |   | For the quarterly period ended March 31, 2011                       |
|   |   | OR                                                                  |
|   | o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE            |
|   |   | SECURITIES EXCHANGE ACT OF 1934                                     |
|   |   |                                                                |
|   |   | For the transition period from ________________ to ________________ |

| 000-22537-01(Commission File Number)               |
|----------------------------------------------------|
|                                               |
| NATIONAL PENN BANCSHARES, INC.                     |
| (Exact Name of Registrant as Specified in Charter) |

| Pennsylvania                                   | 23-2215075                      |
|------------------------------------------------|---------------------------------|
| (State or Other Jurisdiction of Incorporation) | IRS Employer Identification No. |

| Philadelphia and Reading Avenues,Boyertown, PA  19512(Address of Principal Executive Offices) |
|---------------------------------------------------------------------------------------------------------|

| (800) 822-3321                                                                |
|-------------------------------------------------------------------------------|
| Registrant’s telephone number, including area code                      |
|                                                                          |
| (Former Name or Former Address, if Changed Since Last Report):  N/A |

| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes xNo  o  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes o    No o         |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.                                                                      |
| Large accelerated filer x                                                                                                                                                                                                                                                                                                                                                                                              | Accelerated filer   ̈ |
| Non-accelerated filer   o  (Do not check if a smaller reporting company)                                                                                                                                                                                                                                                                                                                      | Smaller reporting company o |
|                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes o           No  x                                                                                                                                                                                              |

| Class                             |   | Outstanding at May 6, 2011 |
|-----------------------------------|--------|----------------------------|
| Common Stock, no stated par value |   | 151,627,686 shares         |

----

| Part I - Financial Information. | Page                |
|---------------------------------|---------------------|
|                            |                |   |   |
|                            | Item 1.             | Financial Statements | 3 |
|                            |                |   |   |
|                            | Item 2.             | Management’s Discussion and Analysis of |   |
|                            |                | Financial Condition and Results of Operation | 27 |
|                            |                |   |   |
|                            | Item 3.             | Quantitative and Qualitative Disclosures About |   |
|                            |                | Market Risk | 45 |
|                            |                |   |   |
|                            | Item 4.             | Controls and Procedures | 45 |
|                            |                |   |   |
| Part II - Other Information.    |                |
|                            |                |   |   |
|                            | Item 1.             | Legal Proceedings | 45 |
|                            |                |   |   |
|                            | Item  1A. | Risk Factors | 45 |
|                            |                |   |   |
|                            | Item 2.             | Unregistered Sales of Equity Securities |   |
|                            |                | and Use of  Proceeds | 53 |
|                            |                |   |   |
|                            | Item 3.             | Defaults Upon Senior Securities | 53 |
|                            |                |   |   |
|                            | Item 4.             | [Removed and Reserved by the SEC] | N/A |
|                            |                |   |   |
|                            | Item 5.             | Other Information | 53 |
|                            |                |   |   |
|                            | Item 6.             | Exhibits | 54 |
|                            |                |   |   |
| Signatures                      | 55                  |
|                            |                |   |   |
| Exhibits                        | 56                  |

----

Item 

|                                                                                                    |   | Unaudited |      |   |         |   |
|---------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
| (dollars in thousands)                                                                                  |   | March 31, |      |   | December 31, |   |
|                                                                                                    |   | 2011      |      |   | 2010         |   |
| ASSETS                                                                                                  |   |      |      |   |         |   |
| Cash and due from banks                                                                                 |   | $         | 113,031   |   |         | $      | 90,283 |   |
| Interest-earning deposits with banks                                                                    |   |      | 392,337   |   |         |   | 612,099 |   |
| Total cash and cash equivalents                                                                         |   |      | 505,368   |   |         |   | 702,382 |   |
|                                                                                                    |   |      |      |   |         |   |   |   |
| Investment securities available for sale, at fair value                                                 |   |      | 1,622,395 |   |         |   | 1,632,118 |   |
| Investment securities held to maturity                                                                  |   |      |      |   |         |   |   |   |
| (Fair value $533,369 and $537,932 for 2011 and 2010, respectively)                                      |   |      | 535,488   |   |         |   | 546,957 |   |
| Other securities                                                                                        |   |      | 77,894    |   |         |   | 80,615 |   |
| Loans and leases held for sale                                                                          |   |      | 5,561     |   |         |   | 12,785 |   |
| Loans and leases, net of allowance for loan and lease losses of $142,960 and $150,054                   |   |      |      |   |         |   |   |   |
| for 2011 and 2010, respectively                                                                         |   |      | 5,096,625 |   |         |   | 5,163,884 |   |
| Premises and equipment, net                                                                             |   |      | 103,771   |   |         |   | 105,483 |   |
| Accrued interest receivable                                                                             |   |      | 34,264    |   |         |   | 33,829 |   |
| Bank owned life insurance                                                                               |   |      | 135,373   |   |         |   | 134,154 |   |
| Other real estate owned and other repossessed assets                                                    |   |      | 7,653     |   |         |   | 7,453 |   |
| Goodwill                                                                                                |   |      | 258,279   |   |         |   | 258,279 |   |
| Other intangible assets, net                                                                            |   |      | 20,530    |   |         |   | 22,217 |   |
| Unconsolidated investments under the equity method                                                      |   |      | 12,211    |   |         |   | 11,482 |   |
| Other assets                                                                                            |   |      | 127,855   |   |         |   | 132,982 |   |
| TOTAL ASSETS                                                                                            |   | $         | 8,543,267 |   |         | $      | 8,844,620 |   |
|                                                                                                    |   |      |      |   |         |   |   |   |
| LIABILITIES                                                                                             |   |      |      |   |         |   |   |   |
| Non-interest bearing deposits                                                                           |   | $         | 834,321   |   |         | $      | 808,835 |   |
| Interest bearing deposits                                                                               |   |      | 5,098,695 |   |         |   | 5,250,338 |   |
| Total deposits                                                                                          |   |      | 5,933,016 |   |         |   | 6,059,173 |   |
|                                                                                                    |   |      |      |   |         |   |   |   |
| Securities sold under repurchase agreements                                                             |   |      | 696,256   |   |         |   | 734,455 |   |
| Short-term borrowings                                                                                   |   |      | 6,184     |   |         |   | 10,000 |   |
| Federal Home Loan Bank advances                                                                         |   |      | 627,716   |   |         |   | 703,761 |   |
| Subordinated debentures                                                                                 |   |      | 142,831   |   |         |   | 142,780 |   |
| Accrued interest payable and other liabilities                                                          |   |      | 39,655    |   |         |   | 57,014 |   |
| TOTAL LIABILITIES                                                                                       |   |      | 7,445,658 |   |         |   | 7,707,183 |   |
|                                                                                                    |   |      |      |   |         |   |   |   |
| SHAREHOLDERS' EQUITY                                                                                    |   |      |      |   |         |   |   |   |
| Preferred stock, no stated par value; authorized 1,000,000 shares                                       |   |      |      |   |         |   |   |   |
| Series B, $1,000 liquidation preference, 5% cumulative; 150,000 shares issued and                  |   |      |      |   |         |
|    outstanding as of December 31, 2010                                                   |   |      | -         |   |         |   | 148,441 |   |
| Common stock, no stated par value; authorized 250,000,000 shares, issued and                            |   |      |      |   |         |   |   |   |
|    outstanding:  March 31, 2011 - 151,506,511; December 31, 2010 - 136,792,414 |   |      | 1,379,014 |   |         |   | 1,292,342 |   |
| Accumulated deficit                                                                                     |   |      | (279,817  | )      |         |   | (293,940 | ) |
| Accumulated other comprehensive loss                                                                    |   |      | (1,588    | )      |         |   | (9,406 | ) |
| TOTAL SHAREHOLDERS' EQUITY                                                                              |   |      | 1,097,609 |   |         |   | 1,137,437 |   |
|                                                                                                    |   |      |      |   |         |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                              |   | $         | 8,543,267 |   |         | $      | 8,844,620 |   |
|                                                                                                    |   |      |      |   |         |   |   |   |
| The accompanying notes are an integral part of these financial statements.                              |   |      |      |   |         |   |   |   |

----

|                                                                       |   | Three Months    |   |
|----------------------------------------------------------------------------|--------|-----------------|--------|
| (dollars in thousands, except per share data)                              |   | Ended March 31, |   |
|                                                                       |   | 2011            |   |   | 2010 |   |
| INTEREST INCOME                                                            |   |            |   |   |   |   |
| Loans and leases, including fees                                           |   | $               | 69,228 |   |   | $ | 78,654 |   |
| Investment securities                                                      |   |            |   |   |   |   |   |   |
| Taxable                                                                    |   |            | 11,357 |   |   |   | 11,098 |   |
| Tax-exempt                                                                 |   |            | 8,493  |   |   |   | 8,838 |   |
| Federal funds sold and deposits in banks                                   |   |            | 280    |   |   |   | 247 |   |
| Total interest income                                                      |   |            | 89,358 |   |   |   | 98,837 |   |
| INTEREST EXPENSE                                                           |   |            |   |   |   |   |   |   |
| Deposits                                                                   |   |            | 11,407 |   |   |   | 18,281 |   |
| Securities sold under repurchase agreements                                |   |            | 2,395  |   |   |   | 2,874 |   |
| FHLB advances and subordinated debentures                                  |   |            | 9,586  |   |   |   | 10,423 |   |
| Total interest expense                                                     |   |            | 23,388 |   |   |   | 31,578 |   |
| Net interest income                                                        |   |            | 65,970 |   |   |   | 67,259 |   |
| Provision for loan and lease losses                                        |   |            | 10,000 |   |   |   | 32,500 |   |
| Net interest income after provision for loan and lease losses              |   |            | 55,970 |   |   |   | 34,759 |   |
| NON-INTEREST INCOME                                                        |   |            |   |   |   |   |   |   |
| Wealth management                                                          |   |            | 5,924  |   |   |   | 7,101 |   |
| Service charges on deposit accounts                                        |   |            | 4,664  |   |   |   | 5,341 |   |
| Insurance commissions and fees                                             |   |            | 3,221  |   |   |   | 3,771 |   |
| Cash management and electronic banking fees                                |   |            | 4,371  |   |   |   | 4,158 |   |
| Mortgage banking                                                           |   |            | 1,080  |   |   |   | 1,153 |   |
| Bank owned life insurance                                                  |   |            | 1,220  |   |   |   | 1,983 |   |
| Equity in undistributed net earnings of unconsolidated investments         |   |            | 1,700  |   |   |   | 163 |   |
| Gain on pension plan curtailment                                           |   |            | -      |   |   |   | 4,066 |   |
| Other operating income                                                     |   |            | 2,055  |   |   |   | 2,733 |   |
| Net (losses) from fair value changes on subordinated debentures            |   |            | (51    | ) |   |   | (7,261 | ) |
|                                                                       |   |            |   |   |   |   |   |   |
| IMPAIRMENT LOSSES ON INVESTMENT SECURITIES:                                |   |            |   |   |   |   |   |   |
| Impairment losses on investment securities                                 |   |            | -      |   |   |   | (634 | ) |
| Non credit-related losses on securities not expected to be sold            |   |            |   |   |   |   |   |   |
| recognized in other comprehensive loss before tax                          |   |            | -      |   |   |   | - |   |
| Net impairment losses on investment securities                             |   |            | -      |   |   |   | (634 | ) |
| Total non-interest income                                                  |   |            | 24,184 |   |   |   | 22,574 |   |
|                                                                       |   |            |   |   |   |   |   |   |
| NON-INTEREST EXPENSE                                                       |   |            |   |   |   |   |   |   |
| Salaries, wages and employee benefits                                      |   |            | 31,449 |   |   |   | 29,429 |   |
| Net premises and equipment                                                 |   |            | 7,272  |   |   |   | 7,998 |   |
| FDIC insurance                                                             |   |            | 3,457  |   |   |   | 4,097 |   |
| Other operating expenses                                                   |   |            | 14,659 |   |   |   | 16,133 |   |
| Total non-interest expense                                                 |   |            | 56,837 |   |   |   | 57,657 |   |
| Income (loss) before income taxes                                          |   |            | 23,317 |   |   |   | (324 | ) |
| Income tax expense (benefit)                                               |   |            | 4,537  |   |   |   | (4,250 | ) |
| NET  INCOME                                                      |   |            | 18,780 |   |   |   | 3,926 |   |
| Preferred dividends and accretion of preferred discount                    |   |            | (1,691 | ) |   |   | (2,005 | ) |
| Accelerated accretion from redemption of preferred stock                   |   |            | (1,452 | ) |   |   | - |   |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS                                |   | $               | 15,637 |   |   | $ | 1,921 |   |
| PER SHARE OF COMMON STOCK                                                  |   |            |   |   |   |   |   |   |
| Basic earnings available to common shareholders                            |   | $               | 0.10   |   |   | $ | 0.02 |   |
| Diluted earnings available to common shareholders                          |   | $               | 0.10   |   |   | $ | 0.02 |   |
| Dividends paid in cash                                                     |   | $               | 0.01   |   |   | $ | 0.01 |   |
|                                                                       |   |            |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements. |   |            |   |   |   |   |   |   |

----

|                                                                       |   |   |        |   |      |   |      |        |   |   |          |   |   | Accumulated |     |   |   |   |
|----------------------------------------------------------------------------|--------|--------|-------------|--------|-----------|--------|-----------|-------------|--------|--------|---------------|--------|--------|-------------|----------|--------|--------|--------|
| (dollars in thousands, except share data)                                  |   |   |        |   |      |   |      | Series B    |   |   |          |   |   | Other       |     |   |   |   |
|                                                                       |   | Common |        |   | Preferred |   |      | Accumulated |   |   | Comprehensive |   |   |        |     |
|                                                                       |   | Shares |        |   | Value     |   |      | Stock       |   |   | Deficit       |   |   | Loss        |     |   | Total  |   |
| Balance at December 31, 2010                                               |   |   | 136,792,414 |   |      | $      | 1,292,342 |        |   | $      | 148,441       |   |   | $           | (293,940 | )      |   | $      | (9,406 | ) |   | $ | 1,137,437 |   |
| Comprehensive income:                                                      |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Net Income                                                                 |   |   |        |   |      |   |      |        |   |   |          |   |   |        | 18,780   |   |   |   |   |   |   |   | 18,780 |   |
| Other comprehensive income, net of taxes                                   |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   | 7,818 |   |   |   | 7,818 |   |
| Total comprehensive income                                                 |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   | 26,598 |   |
|                                                                       |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Cash dividends declared common                                             |   |   |        |   |      |   |      |        |   |   |          |   |   |        | (1,515   | )      |   |   |   |   |   |   | (1,515 | ) |
| Cash dividends declared preferred                                          |   |   |        |   |      |   |      |        |   |   |          |   |   |        | (1,583   | )      |   |   |   |   |   |   | (1,583 | ) |
| Shares issued under share-based plans,                                     |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   |   |   |
| net of excess tax benefits                                                 |   |   | 383,518     |   |      |   | 2,129     |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   | 2,129 |   |
| Shares issued in private placement                                         |   |   | 14,330,579  |   |      |   | 84,543    |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   | 84,543 |   |
| Amortization of preferred discount                                         |   |   |        |   |      |   |      |        |   |   | 1,559         |   |   |        | (1,559   | )      |   |   |   |   |   |   | - |   |
| Repayment of Series B Preferred Stock                                      |   |   |        |   |      |   |      |        |   |   | (150,000      | )      |   |        |     |   |   |   |   |   |   |   | (150,000 | ) |
|                                                                       |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011                                                  |   |   | 151,506,511 |   |      | $      | 1,379,014 |        |   | $      | -             |   |   | $           | (279,817 | )      |   | $      | (1,588 | ) |   | $ | 1,097,609 |   |
|                                                                       |   |   |        |   |      |   |      |        |   |   |          |   |   |        |     |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements. |   |

----

| (dollars in thousands)                                                              |   | Three Months Ended March 31, |     |
|-------------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                                |   | 2011                         |     |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                |   |                         |     |   |   |   |
| Net income                                                                          |   | $                            | 18,780   |   |   | $ | 3,926 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:   |   |                         |     |   |   |   |   |   |
| Provision for loan and lease losses                                                 |   |                         | 10,000   |   |   |   | 32,500 |   |
| Share-based compensation expense                                                    |   |                         | 1,528    |   |   |   | 296 |   |
| Depreciation and amortization                                                       |   |                         | 4,179    |   |   |   | 4,041 |   |
| Amortization (accretion) of premiums and discounts on investment securities, net    |   |                         | 622      |   |   |   | (44 | ) |
| Impairment losses on investment securities                                          |   |                         | -        |   |   |   | 634 |   |
| Gain on equity-method investments, net of distributions                             |   |                         | (729     | ) |   |   | (21 | ) |
| Loans originated for resale                                                         |   |                         | (33,951  | ) |   |   | (43,161 | ) |
| Proceeds from sale of loans                                                         |   |                         | 41,906   |   |   |   | 55,456 |   |
| Gain on sale of loans, net                                                          |   |                         | (731     | ) |   |   | (828 | ) |
| Loss on sale of other real estate owned, net                                        |   |                         | -        |   |   |   | 401 |   |
| Increase in fair value of subordinated debtentures                                  |   |                         | 51       |   |   |   | 7,261 |   |
| Bank-owned life insurance policy income                                             |   |                         | (1,220   | ) |   |   | (1,983 | ) |
| Gain on pension plan curtailment                                                    |   |                         | -        |   |   |   | (4,066 | ) |
| Changes in assets and liabilities:                                                  |   |                         |     |   |   |   |   |   |
| Increase in accrued interest receivable                                             |   |                         | (435     | ) |   |   | (610 | ) |
| Decrease in accrued interest payable                                                |   |                         | (3,890   | ) |   |   | (3,488 | ) |
| Decrease (increase) in other assets                                                 |   |                         | 3,639    |   |   |   | (4,633 | ) |
| (Decrease) increase in other liabilities                                            |   |                         | (12,014  | ) |   |   | 2,901 |   |
| Net cash provided by operating activities                                           |   |                         | 27,735   |   |   |   | 48,582 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                |   |                         |     |   |   |   |   |   |
| Proceeds from maturities and repayments of investment securities held to maturity   |   |                         | 11,295   |   |   |   | 10,458 |   |
| Proceeds from sales of investment securities available for sale                     |   |                         | -        |   |   |   | 460 |   |
| Proceeds from maturities and repayments of investment securities available for sale |   |                         | 81,222   |   |   |   | 63,291 |   |
| Purchase of investment securities available for sale                                |   |                         | (60,716  | ) |   |   | (136,180 | ) |
| Proceeds from sale of loans previously held for investment                          |   |                         | 2,007    |   |   |   | 2,814 |   |
| Net decrease in loans and leases                                                    |   |                         | 54,800   |   |   |   | 68,577 |   |
| Purchases of premises and equipment                                                 |   |                         | (546     | ) |   |   | (1,429 | ) |
| Claims from bank owned life insurance                                               |   |                         | -        |   |   |   | 1,722 |   |
| Proceeds from the sale of other real estate owned                                   |   |                         | 65       |   |   |   | 2,923 |   |
| Net cash provided by investing activities                                           |   |                         | 88,127   |   |   |   | 12,636 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                |   |                         |     |   |   |   |   |   |
| Net decrease in core deposits                                                       |   |                         | (18,709  | ) |   |   | (54,521 | ) |
| Net decrease in certificates of deposit                                             |   |                         | (107,448 | ) |   |   | (272,967 | ) |
| Net (decrease) increase in securities sold under repurchase agreements              |   |                         | (38,199  | ) |   |   | 21,505 |   |
| Net (decrease) increase in short-term borrowings                                    |   |                         | (3,816   | ) |   |   | 265 |   |
| Repayments of FHLB advances                                                         |   |                         | (75,812  | ) |   |   | (12,642 | ) |
| Proceeds from shares issued under share-based plans                                 |   |                         | 678      |   |   |   | 101 |   |
| Excess tax expense on share-based plans                                             |   |                         | (351     | ) |   |   | (20 | ) |
| Issuance of shares under dividend reinvestment plan                                 |   |                         | 274      |   |   |   | 362 |   |
| Issuance of common stock in private placement                                       |   |                         | 84,543   |   |   |   | - |   |
| Repayment of Series B Preferred stock                                               |   |                         | (150,000 | ) |   |   | - |   |
| Cash dividends, common                                                              |   |                         | (1,515   | ) |   |   | (1,260 | ) |
| Cash dividends, preferred                                                           |   |                         | (2,521   | ) |   |   | (1,875 | ) |
| Net cash used in financing activities                                               |   |                         | (312,876 | ) |   |   | (321,052 | ) |
| Net decrease in cash and cash equivalents                                           |   |                         | (197,014 | ) |   |   | (259,834 | ) |
| Cash and cash equivalents at beginning of year                                      |   |                         | 702,382  |   |   |   | 603,257 |   |
| Cash and cash equivalents at end of period                                          |   | $                            | 505,368  |   |   | $ | 343,423 |   |

----

|                   |   | Three Months Ended |   |
|------------------------|--------|--------------------|--------|
| (dollars in thousands) |   | March 31,          |   |
|                   |   | 2011               |   |   | 2010 |   |
|  Interest         |   | $                  | 27,278 |   |   | $ | 35,066 |   |
|  Taxes            |   |               | 8,604  |   |   |   | - |   |

|                                                                                                                         |   | Three Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|  (dollars in thousands)                                                                                                 |   | March 31,          |   |
|                                                                                                                         |   | 2011               |   |   | 2010 |   |
|  Transfers of loans to other real estate1                                                                          |   | $                  | 452    |   |   | $ | 1,479 |   |
|  Other than temporary impairment on investment securities                                                               |   |               | -      |   |   |   | 634 |   |
|  Dividends accrued not paid on Series B Preferred Stock                                                                 |   |               | -      |   |   |   | 938 |   |
|                                                                                                                         |   |               |   |   |   |   |   |   |
| 1$0.3 million and $3.3 million of OREO was disposed of during the periods ending March 31, 2011 and 2010, respectively. |   |

----

| (dollars in thousands, except per share data ) |   | Three months ended March 31, |        |
|------------------------------------------------|--------|------------------------------|-------------|
|                                           |   | 2011                         |        |   | 2010 |   |
| Income for EPS:                                |   |                         |        |   |   |   |
| Net income available to common shareholders    |   | $                            | 15,637      |   |   | $ | 1,921 |   |
|                                           |   |                         |        |   |   |   |   |   |
| Calculation of shares:                         |   |                         |        |   |   |   |   |   |
| Weighted average basic shares                  |   |                         | 150,461,063 |   |   |   | 125,875,061 |   |
| Dilutive effect of:                            |   |                         |        |   |   |   |   |   |
|    Share-based compensation     |   |                         | 304,820     |   |   |   | 164,051 |   |
|    Warrants                     |   |                         | -           |   |   |   | - |   |
| Weighted average fully diluted shares          |   |                         | 150,765,883 |   |   |   | 126,039,112 |   |
|                                           |   |                         |        |   |   |   |   |   |
| Earnings per common share:                     |   |                         |        |   |   |   |   |   |
| Basic                                          |   | $                            | 0.10        |   |   | $ | 0.02 |   |
| Diluted                                        |   | $                            | 0.10        |   |   | $ | 0.02 |   |

|                                           |   | March 31, 2011 |      |
|------------------------------------------------|--------|----------------|-----------|
|                                           |   |           |      |   | Gross |   |   | Gross |   |   |   |   |
| (dollars in thousands)                         |   | Amortized      |      |   | unrealized |   |   | unrealized |   |   | Fair |   |
|                                           |   | cost           |      |   | gains |   |   | losses |   |   | value |   |
| Available for Sale                             |   |           |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury securities                       |   | $              | 19,965    |   |   | $ | 11 |   |   | $ | - |   |   | $ | 19,976 |   |
| U.S. Government agency securities              |   |           | 4,995     |   |   |   | 94 |   |   |   | - |   |   |   | 5,089 |   |
| State and municipal bonds                      |   |           | 339,893   |   |   |   | 5,476 |   |   |   | (12,800 | ) |   |   | 332,569 |   |
| Agency mortgage-backed securities/             |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| collateralized mortgage obligations            |   |           | 1,205,281 |   |   |   | 27,970 |   |   |   | (7,284 | ) |   |   | 1,225,967 |   |
| Non-agency collateralized mortgage obligations |   |           | 20,394    |   |   |   | 274 |   |   |   | (185 | ) |   |   | 20,483 |   |
| Corporate securities and other                 |   |           | 14,187    |   |   |   | 173 |   |   |   | (605 | ) |   |   | 13,755 |   |
| Marketable equity securities                   |   |           | 3,759     |   |   |   | 801 |   |   |   | (4 | ) |   |   | 4,556 |   |
| Total                                          |   | $              | 1,608,474 |   |   | $ | 34,799 |   |   | $ | (20,878 | ) |   | $ | 1,622,395 |   |
|                                           |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity                               |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal bonds                      |   | $              | 427,353   |   |   | $ | 3,355 |   |   | $ | (7,707 | ) |   | $ | 423,001 |   |
| Agency mortgage-backed securities/             |   |           |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| collateralized mortgage obligations            |   |           | 106,975   |   |   |   | 2,197 |   |   |   | - |   |   |   | 109,172 |   |
| Non-agency collateralized mortgage obligations |   |           | 1,160     |   |   |   | 36 |   |   |   | - |   |   |   | 1,196 |   |
| Total                                          |   | $              | 535,488   |   |   | $ | 5,588 |   |   | $ | (7,707 | ) |   | $ | 533,369 |   |

----

|                                           |   | December 31, 2010 |      |
|------------------------------------------------|--------|-------------------|-----------|
|                                           |   |              |      |   | Gross |   |   | Gross |   |   |   |   |
| (dollars in thousands)                         |   | Amortized         |      |   | unrealized |   |   | unrealized |   |   | Fair |   |
|                                           |   | cost              |      |   | gains |   |   | losses |   |   | value |   |
| Available for Sale                             |   |              |      |   |   |   |   |   |   |   |   |   |
| U.S. Treasury securities                       |   | $                 | 19,952    |   |   | $ | - |   |   | $ | (3 | ) |   | $ | 19,949 |   |
| U.S. Government agency securities              |   |              | 4,995     |   |   |   | 99 |   |   |   | - |   |   |   | 5,094 |   |
| State and municipal bonds                      |   |              | 345,310   |   |   |   | 4,880 |   |   |   | (16,836 | ) |   |   | 333,354 |   |
| Agency mortgage-backed securities/             |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| collateralized mortgage obligations            |   |              | 1,216,153 |   |   |   | 26,854 |   |   |   | (11,648 | ) |   |   | 1,231,359 |   |
| Non-agency collateralized mortgage obligations |   |              | 25,071    |   |   |   | 280 |   |   |   | (277 | ) |   |   | 25,074 |   |
| Corporate securities and other                 |   |              | 14,189    |   |   |   | 90 |   |   |   | (1,245 | ) |   |   | 13,034 |   |
| Marketable equity securities                   |   |              | 3,759     |   |   |   | 506 |   |   |   | (11 | ) |   |   | 4,254 |   |
| Total                                          |   | $                 | 1,629,429 |   |   | $ | 32,709 |   |   | $ | (30,020 | ) |   | $ | 1,632,118 |   |
|                                           |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity                               |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal bonds                      |   | $                 | 427,720   |   |   | $ | 1,281 |   |   | $ | (12,593 | ) |   | $ | 416,408 |   |
| Agency mortgage-backed securities/             |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| collateralized mortgage obligations            |   |              | 117,756   |   |   |   | 2,241 |   |   |   | - |   |   |   | 119,997 |   |
| Non-agency collateralized mortgage obligations |   |              | 1,481     |   |   |   | 46 |   |   |   | - |   |   |   | 1,527 |   |
| Total                                          |   | $                 | 546,957   |   |   | $ | 3,568 |   |   | $ | (12,593 | ) |   | $ | 537,932 |   |

|                                                                   |   |       |   |   | Less than 12 months |   |    | 12 months or longer |   |   | Total   |   |
|------------------------------------------------------------------------|--------|------------|--------|--------|---------------------|--------|---------|---------------------|--------|--------|---------|--------|
| (dollars in thousands)                                                 |   | No. of     |   |   | Fair                |   |    | Unrealized          |   |   | Fair    |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                                   |   | Securities |   |   | Value               |   |    | Losses              |   |   | Value   |   |   | Losses |   |   | Value |   |   | Losses |   |
| State and municipal bonds                                              |   |       | 627    |   |                | $      | 319,378 |                |   | $      | (9,406  | )      |   | $ | 69,874 |   |   | $ | (11,101 | ) |   | $ | 389,252 |   |   | $ | (20,507 | ) |
| Agency mortgage-backed securities/ collateralized mortgage obligations |   |       | 61     |   |                |   | 339,601 |                |   |   | (7,270  | )      |   |   | 287 |   |   |   | (14 | ) |   |   | 339,888 |   |   |   | (7,284 | ) |
| Non-agency collateralized mortgage obligations                         |   |       | 5      |   |                |   | -       |                |   |   | -       |   |   |   | 3,662 |   |   |   | (185 | ) |   |   | 3,662 |   |   |   | (185 | ) |
| Corporate securities and other                                         |   |       | 10     |   |                |   | 1,042   |                |   |   | (20     | )      |   |   | 5,450 |   |   |   | (585 | ) |   |   | 6,492 |   |   |   | (605 | ) |
| Total debt securities                                                  |   |       | 703    |   |                |   | 660,021 |                |   |   | (16,696 | )      |   |   | 79,273 |   |   |   | (11,885 | ) |   |   | 739,294 |   |   |   | (28,581 | ) |
| Marketable equity securities                                           |   |       | 2      |   |                |   | 129     |                |   |   | (4      | )      |   |   | - |   |   |   | - |   |   |   | 129 |   |   |   | (4 | ) |
| Total                                                                  |   |       | 705    |   |                | $      | 660,150 |                |   | $      | (16,700 | )      |   | $ | 79,273 |   |   | $ | (11,885 | ) |   | $ | 739,423 |   |   | $ | (28,585 | ) |

|                                                                   |   |       |   |   | Less than 12 months |   |    | 12 months or longer |   |   | Total   |   |
|------------------------------------------------------------------------|--------|------------|--------|--------|---------------------|--------|---------|---------------------|--------|--------|---------|--------|
| (dollars in thousands)                                                 |   | No. of     |   |   | Fair                |   |    | Unrealized          |   |   | Fair    |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                                   |   | Securities |   |   | Value               |   |    | Losses              |   |   | Value   |   |   | Losses |   |   | Value |   |   | Losses |   |
| U. S. Treasury securities                                              |   |       | 1      |   |                | $      | 19,949  |                |   | $      | (3      | )      |   | $ | - |   |   | $ | - |   |   | $ | 19,949 |   |   | $ | (3 | ) |
| State and municipal bonds                                              |   |       | 907    |   |                |   | 474,765 |                |   |   | (17,811 | )      |   |   | 67,841 |   |   |   | (11,618 | ) |   |   | 542,606 |   |   |   | (29,429 | ) |
| Agency mortgage-backed securities/ collateralized mortgage obligations |   |       | 66     |   |                |   | 382,356 |                |   |   | (11,647 | )      |   |   | 2,016 |   |   |   | (1 | ) |   |   | 384,372 |   |   |   | (11,648 | ) |
| Non-agency collateralized mortgage obligations                         |   |       | 7      |   |                |   | 3,363   |                |   |   | (58     | )      |   |   | 4,195 |   |   |   | (219 | ) |   |   | 7,558 |   |   |   | (277 | ) |
| Corporate securities and other                                         |   |       | 11     |   |                |   | 1,854   |                |   |   | (151    | )      |   |   | 5,471 |   |   |   | (1,094 | ) |   |   | 7,325 |   |   |   | (1,245 | ) |
| Total debt securities                                                  |   |       | 992    |   |                |   | 882,287 |                |   |   | (29,670 | )      |   |   | 79,523 |   |   |   | (12,932 | ) |   |   | 961,810 |   |   |   | (42,602 | ) |
| Marketable equity securities                                           |   |       | 2      |   |                |   | 50      |                |   |   | (11     | )      |   |   | - |   |   |   | - |   |   |   | 50 |   |   |   | (11 | ) |
| Total                                                                  |   |       | 994    |   |                | $      | 882,337 |                |   | $      | (29,681 | )      |   | $ | 79,523 |   |   | $ | (12,932 | ) |   | $ | 961,860 |   |   | $ | (42,613 | ) |

----

| (dollars in thousands)           |   | Available for Sale |      |   | Held to Maturity |   |
|----------------------------------|--------|--------------------|-----------|--------|------------------|--------|
|                             |   | Amortized          |      |   | Fair             |   |   | Amortized |   |   | Fair |   |
|                             |   | Cost               |      |   | Value            |   |   | Cost |   |   | Value |   |
| Due in one year or less          |   | $                  | 36,166    |   |             | $      | 36,280 |   |   | $ | 14,808 |   |   | $ | 14,887 |   |
| Due after one through five years |   |               | 43,466    |   |             |   | 45,142 |   |   |   | - |   |   |   | - |   |
| Due after five through ten years |   |               | 199,848   |   |             |   | 208,830 |   |   |   | 29,512 |   |   |   | 29,949 |   |
| Due after ten years              |   |               | 1,325,235 |   |             |   | 1,327,587 |   |   |   | 491,168 |   |   |   | 488,533 |   |
| Marketable equity securities     |   |               | 3,759     |   |             |   | 4,556 |   |   |   | - |   |   |   | - |   |
|                             |   | $                  | 1,608,474 |   |             | $      | 1,622,395 |   |   | $ | 535,488 |   |   | $ | 533,369 |   |

| (dollars in thousands) |   | March 31, |      |   | December 31, |   |
|------------------------|--------|-----------|-----------|--------|--------------|--------|
|                   |   | 2011      |      |   | 2010         |   |
| Deposits               |   | $         | 744,190   |   |         | $      | 893,532 |   |
| Repurchase agreements  |   |      | 775,548   |   |         |   | 835,640 |   |
| Other                  |   |      | 46,519    |   |         |   | 126,091 |   |
|                   |   | $         | 1,566,257 |   |         | $      | 1,855,263 |   |

----

|                                       |   | Performing                    |      |   |                               |   |    |                          |   |
|--------------------------------------------|--------|-------------------------------|-----------|--------|------------------------------------|--------|---------|-------------------------------|--------|
| March 31, 2011                             |   | Pass Rated Loans              |      |   | Special Mention Loans              |   |    | Classified Loans              |   |   | Non-Performing Loans |   |   | Total Loans |   |
| (dollars in thousands)                     |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases |   | $                             | 2,039,772 |   |                               | $      | 94,899  |                          |   | $ | 242,098 |   |   | $ | 34,162 |   |   | $ | 2,410,931 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                          | 688,965   |   |                               |   | 55,866  |                          |   |   | 59,533 |   |   |   | 15,511 |   |   |   | 819,875 |   |
| CRE - construction                         |   |                          | 105,344   |   |                               |   | 36,752  |                          |   |   | 46,816 |   |   |   | 18,012 |   |   |   | 206,924 |   |
| Commercial  real estate          |   |                          | 794,309   |   |                               |   | 92,618  |                          |   |   | 106,349 |   |   |   | 33,523 |   |   |   | 1,026,799 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                          | 740,543   |   |                               |   | -       |                          |   |   | - |   |   |   | 6,385 |   |   |   | 746,928 |   |
| Home equity lines and loans                |   |                          | 738,498   |   |                               |   | -       |                          |   |   | 33 |   |   |   | 2,254 |   |   |   | 740,785 |   |
| All other consumer                         |   |                          | 301,856   |   |                               |   | 4,376   |                          |   |   | 10,642 |   |   |   | 2,829 |   |   |   | 319,703 |   |
| Consumer loans                             |   |                          | 1,780,897 |   |                               |   | 4,376   |                          |   |   | 10,675 |   |   |   | 11,468 |   |   |   | 1,807,416 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                             | 4,614,978 |   |                               | $      | 191,893 |                          |   | $ | 359,122 |   |   | $ | 79,153 |   |   | $ | 5,245,146 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Performing                    |      |   |                               |   |    |                          |   |   |   |
| December 31, 2010                          |   |    Pass Rated Loans |      |   |    Special Mention Loans |   |    |    Classified Loans |   |   |    Non-Performing Loans |   |   | Total Loans |   |
| (dollars in thousands)                     |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases |   | $                             | 2,032,157 |   |                               | $      | 101,667 |                          |   | $ | 266,179 |   |   | $ | 34,957 |   |   | $ | 2,434,960 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                          | 649,122   |   |                               |   | 48,213  |                          |   |   | 53,832 |   |   |   | 17,821 |   |   |   | 768,988 |   |
| CRE - construction                         |   |                          | 159,410   |   |                               |   | 36,045  |                          |   |   | 66,209 |   |   |   | 19,392 |   |   |   | 281,056 |   |
| Commercial  real estate          |   |                          | 808,532   |   |                               |   | 84,258  |                          |   |   | 120,041 |   |   |   | 37,213 |   |   |   | 1,050,044 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                          | 759,605   |   |                               |   | -       |                          |   |   | - |   |   |   | 5,809 |   |   |   | 765,414 |   |
| Home equity lines and loans                |   |                          | 742,177   |   |                               |   | -       |                          |   |   | 33 |   |   |   | 2,914 |   |   |   | 745,124 |   |
| All other consumer                         |   |                          | 315,213   |   |                               |   | 3,778   |                          |   |   | 9,219 |   |   |   | 2,971 |   |   |   | 331,181 |   |
| Consumer loans                             |   |                          | 1,816,995 |   |                               |   | 3,778   |                          |   |   | 9,252 |   |   |   | 11,694 |   |   |   | 1,841,719 |   |
|                                       |   |                          |      |   |                               |   |    |                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                             | 4,657,684 |   |                               | $      | 189,703 |                          |   | $ | 395,472 |   |   | $ | 83,864 |   |   | $ | 5,326,723 |   |

----

| March 31, 2011                             |   | 30-59 Days Past Due and Still Accruing |   |   | 60-89 Days Past Due and Still Accruing |   |   | 90 Days or More Past Due and Still Accruing (1) |   |   | Total Past Due and Still Accruing |   |   | Accruing Current Balances |   |   | Non-Accrual Balances |   |      | Total Loan Balances |   |
|--------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------|--------|--------|----------------------|--------|-----------|---------------------|--------|
| (dollars in thousands)                     |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |
| Commercial and industrial loans and leases |   | $                                      | 4,381  |   |                                   | $      | 2,103  |                                            |   | $      | 40                                |   |   | $                         | 6,524  |   |                 | $      | 2,370,285 |                |   | $ | 34,122 |   |   | $ | 2,410,931 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                                   | 3,628  |   |                                   |   | 744    |                                            |   |   | 104                               |   |   |                      | 4,476  |   |                 |   | 799,992   |                |   |   | 15,407 |   |   |   | 819,875 |   |
| CRE - construction                         |   |                                   | 827    |   |                                   |   | -      |                                            |   |   | -                                 |   |   |                      | 827    |   |                 |   | 188,085   |                |   |   | 18,012 |   |   |   | 206,924 |   |
| Commercial  real estate          |   |                                   | 4,455  |   |                                   |   | 744    |                                            |   |   | 104                               |   |   |                      | 5,303  |   |                 |   | 988,077   |                |   |   | 33,419 |   |   |   | 1,026,799 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                                   | 4,191  |   |                                   |   | 490    |                                            |   |   | 731                               |   |   |                      | 5,412  |   |                 |   | 736,213   |                |   |   | 5,303 |   |   |   | 746,928 |   |
| Home equity lines and loans                |   |                                   | 3,156  |   |                                   |   | 653    |                                            |   |   | 289                               |   |   |                      | 4,098  |   |                 |   | 734,722   |                |   |   | 1,965 |   |   |   | 740,785 |   |
| All other consumer                         |   |                                   | 2,081  |   |                                   |   | 905    |                                            |   |   | 1,019                             |   |   |                      | 4,005  |   |                 |   | 313,888   |                |   |   | 1,810 |   |   |   | 319,703 |   |
| Consumer loans                             |   |                                   | 9,428  |   |                                   |   | 2,048  |                                            |   |   | 2,039                             |   |   |                      | 13,515 |   |                 |   | 1,784,823 |                |   |   | 9,078 |   |   |   | 1,807,416 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                                      | 18,264 |   |                                   | $      | 4,895  |                                            |   | $      | 2,183                             |   |   | $                         | 25,342 |   |                 | $      | 5,143,185 |                |   | $ | 76,619 |   |   | $ | 5,245,146 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Percent of total loans and leases          |   |                                   | 0.35   | %      |                                   |   | 0.09   | %                                               |   |   | 0.04                              | %      |   |                      | 0.48   | %      |                 |   |      |                |   |   | 1.46 | % |   |   |   |   |

| December 31, 2010                                                                                                                              |   | 30-59 Days Past Due and Still Accruing |   |   | 60-89 Days Past Due and Still Accruing |   |   | 90 Days or More Past Due and Still Accruing (1) |   |   | Total Past Due and Still Accruing |   |   | Accruing Current Balances |   |   | Non-Accrual Balances |   |      | Total Loan Balances |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|----------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------------------------------|--------|--------|---------------------------|--------|--------|----------------------|--------|-----------|---------------------|--------|
| (dollars in thousands)                                                                                                                         |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |
| Commercial and industrial loans and leases                                                                                                     |   | $                                      | 2,541  |   |                                   | $      | 2,740  |                                            |   | $      | 88                                |   |   | $                         | 5,369  |   |                 | $      | 2,394,722 |                |   | $ | 34,869 |   |   | $ | 2,434,960 |   |
|                                                                                                                                           |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| CRE - permanent                                                                                                                                |   |                                   | 2,176  |   |                                   |   | 1,310  |                                            |   |   | -                                 |   |   |                      | 3,486  |   |                 |   | 747,681   |                |   |   | 17,821 |   |   |   | 768,988 |   |
| CRE - construction                                                                                                                             |   |                                   | 1,061  |   |                                   |   | 2,500  |                                            |   |   | -                                 |   |   |                      | 3,561  |   |                 |   | 258,103   |                |   |   | 19,392 |   |   |   | 281,056 |   |
| Commercial  real estate                                                                                                              |   |                                   | 3,237  |   |                                   |   | 3,810  |                                            |   |   | -                                 |   |   |                      | 7,047  |   |                 |   | 1,005,784 |                |   |   | 37,213 |   |   |   | 1,050,044 |   |
|                                                                                                                                           |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Residential mortgages                                                                                                                          |   |                                   | 5,240  |   |                                   |   | 1,487  |                                            |   |   | 7                                 |   |   |                      | 6,734  |   |                 |   | 752,878   |                |   |   | 5,802 |   |   |   | 765,414 |   |
| Home equity lines and loans                                                                                                                    |   |                                   | 3,688  |   |                                   |   | 745    |                                            |   |   | 781                               |   |   |                      | 5,214  |   |                 |   | 737,777   |                |   |   | 2,133 |   |   |   | 745,124 |   |
| All other consumer                                                                                                                             |   |                                   | 2,185  |   |                                   |   | 380    |                                            |   |   | 877                               |   |   |                      | 3,442  |   |                 |   | 325,645   |                |   |   | 2,094 |   |   |   | 331,181 |   |
| Consumer loans                                                                                                                                 |   |                                   | 11,113 |   |                                   |   | 2,612  |                                            |   |   | 1,665                             |   |   |                      | 15,390 |   |                 |   | 1,816,300 |                |   |   | 10,029 |   |   |   | 1,841,719 |   |
|                                                                                                                                           |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Total loans and leases                                                                                                                         |   | $                                      | 16,891 |   |                                   | $      | 9,162  |                                            |   | $      | 1,753                             |   |   | $                         | 27,806 |   |                 | $      | 5,216,806 |                |   | $ | 82,111 |   |   | $ | 5,326,723 |   |
|                                                                                                                                           |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Percent of total loans and leases                                                                                                              |   |                                   | 0.32   | %      |                                   |   | 0.17   | %                                               |   |   | 0.03                              | %      |   |                      | 0.52   | %      |                 |   |      |                |   |   | 1.54 | % |   |   |   |   |
|                                                                                                                                           |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| (1) Loans 90 days or more past due remain on accrual status if they are well secured and collection of all principal and interest is probable. |   |                                   |   |   |                                   |

----

| March 31, 2011                                        |   | Commercial 1 |      |   | Commercial Real Estate 2 |   |      | Consumer 3 |   |   | Unallocated |   |   | Total  |   |
|-------------------------------------------------------|--------|--------------|-----------|--------|--------------------------|--------|-----------|------------|--------|--------|-------------|--------|--------|--------|--------|
| (dollars in thousands)                                |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Allowance for loan and lease losses:                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Beginning balance                                     |   | $            | 69,655    |   |                     | $      | 51,177    |       |   | $      | 20,897      |   |   | $      | 8,325  |   |   | $ | 150,054 |   |
| Charge-offs                                           |   |         | (9,569    | )      |                     |   | (5,313    | )          |   |   | (3,871      | )      |   |   | -      |   |   |   | (18,753 | ) |
| Recoveries                                            |   |         | 250       |   |                     |   | 494       |       |   |   | 915         |   |   |   | -      |   |   |   | 1,659 |   |
| Provision                                             |   |         | 5,455     |   |                     |   | 2,553     |       |   |   | 2,177       |   |   |   | (185   | ) |   |   | 10,000 |   |
| Divested reserves                                     |   |         | -         |   |                     |   | -         |       |   |   | -           |   |   |   | -      |   |   |   | - |   |
| Ending balance                                        |   | $            | 65,791    |   |                     | $      | 48,911    |       |   | $      | 20,118      |   |   | $      | 8,140  |   |   | $ | 142,960 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $            | 3,147     |   |                     | $      | 1,453     |       |   | $      | 73          |   |   | $      | -      |   |   | $ | 4,673 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $            | 62,644    |   |                     | $      | 47,458    |       |   | $      | 20,045      |   |   | $      | 8,140  |   |   | $ | 138,287 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Total loans and leases                                |   | $            | 2,410,931 |   |                     | $      | 1,026,799 |       |   | $      | 1,807,416   |   |   | $      | -      |   |   | $ | 5,245,146 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $            | 34,122    |   |                     | $      | 33,419    |       |   | $      | 9,429       |   |   | $      | -      |   |   | $ | 76,970 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $            | 2,376,809 |   |                     | $      | 993,380   |       |   | $      | 1,797,987   |   |   | $      | -      |   |   | $ | 5,168,176 |   |

| March 31, 2010                                                                                                                                                                                                                                 |   | Commercial 1 |      |   | Commercial Real Estate 2 |   |      | Consumer 3 |   |   | Unallocated |   |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------------------------|--------|-----------|------------|--------|--------|-------------|--------|--------|--------|--------|
| (dollars in thousands)                                                                                                                                                                                                                         |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Allowance for loan and lease losses:                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Beginning balance                                                                                                                                                                                                                              |   | $            | 73,031    |   |                     | $      | 55,652    |       |   | $      | 13,828      |   |   | $      | 3,760  |   |   | $ | 146,271 |   |
| Charge-offs                                                                                                                                                                                                                                    |   |         | (3,135    | )      |                     |   | (19,990   | )          |   |   | (4,357      | )      |   |   | -      |   |   |   | (27,482 | ) |
| Recoveries                                                                                                                                                                                                                                     |   |         | 874       |   |                     |   | 1,204     |       |   |   | 483         |   |   |   | -      |   |   |   | 2,561 |   |
| Provision                                                                                                                                                                                                                                      |   |         | 9,527     |   |                     |   | 14,960    |       |   |   | 5,203       |   |   |   | 2,810  |   |   |   | 32,500 |   |
| Divested reserves                                                                                                                                                                                                                              |   |         | -         |   |                     |   | -         |       |   |   | -           |   |   |   | -      |   |   |   | - |   |
| Ending balance                                                                                                                                                                                                                                 |   | $            | 80,297    |   |                     | $      | 51,826    |       |   | $      | 15,157      |   |   | $      | 6,570  |   |   | $ | 153,850 |   |
|                                                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment                                                                                                                                                                                          |   | $            | 9,273     |   |                     | $      | 3,240     |       |   | $      | 1,969       |   |   | $      | -      |   |   | $ | 14,482 |   |
|                                                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment                                                                                                                                                                                          |   | $            | 71,024    |   |                     | $      | 48,586    |       |   | $      | 13,188      |   |   | $      | 6,570  |   |   | $ | 139,368 |   |
|                                                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Total loans and leases                                                                                                                                                                                                                         |   | $            | 2,728,143 |   |                     | $      | 1,230,644 |       |   | $      | 1,956,432   |   |   | $      | -      |   |   | $ | 5,915,219 |   |
|                                                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment                                                                                                                                                                                          |   | $            | 38,675    |   |                     | $      | 53,983    |       |   | $      | 25,059      |   |   | $      | -      |   |   | $ | 117,717 |   |
|                                                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment                                                                                                                                                                                          |   | $            | 2,689,468 |   |                     | $      | 1,176,661 |       |   | $      | 1,931,373   |   |   | $      | -      |   |   | $ | 5,797,502 |   |
|                                                                                                                                                                                                                                           |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| 1. Commercial includes all C&I Loans, including those secured by real estate, and Capital Leases.                                                                                                                                          |   |         |      |   |                     |   |      |       |   |   |        |   |   |
| 2. CRE is defined here as loans secured by non-owner-occupied real estate which have a primary source of repayment of third-party rental income or the sale of the property securing the loan.                                                 |   |
| 3. All Other Consumer loans include direct consumer loans (secured by residential real estate and other collateral), indirect consumer loans, consumer lines of credit (secured residential real estate and other collateral), and overdrafts. |   |
| The Company did not have any loans acquired with deteriorated credit quality.                                                                                                                                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |

----

| March 31, 2011                             |   | Recorded Investment With Related Allowance |   |   | Recorded Investment Without Related Allowance |   |   | Total Recorded Investment |   |   | Life-to-date Charge-offs |   |   | Total Unpaid Balances |   |   | Related Allowance |   |    | Average Recorded Investment |   |
|--------------------------------------------|--------|--------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|---------------------------|--------|--------|--------------------------|--------|--------|-----------------------|--------|--------|-------------------|--------|---------|-----------------------------|--------|
| (dollars in thousands)                     |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |
| Commercial and industrial loans and leases |   | $                                          | 12,337 |   |                                          | $      | 21,785 |                      |   | $      | 34,122                   |   |   | $                     | 8,497  |   |              | $      | 42,619  |                        |   | $ | 3,147 |   |   | $ | 34,648 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                                       | 2,468  |   |                                          |   | 12,939 |                      |   |   | 15,407                   |   |   |                  | 10,413 |   |              |   | 25,820  |                        |   |   | 70 |   |   |   | 17,668 |   |
| CRE - construction                         |   |                                       | 2,102  |   |                                          |   | 15,910 |                      |   |   | 18,012                   |   |   |                  | 20,145 |   |              |   | 38,157  |                        |   |   | 1,383 |   |   |   | 18,869 |   |
| Commercial  real estate          |   |                                       | 4,570  |   |                                          |   | 28,849 |                      |   |   | 33,419                   |   |   |                  | 30,558 |   |              |   | 63,977  |                        |   |   | 1,453 |   |   |   | 36,537 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                                       | 383    |   |                                          |   | 5,271  |                      |   |   | 5,654                    |   |   |                  | 648    |   |              |   | 6,302   |                        |   |   | 73 |   |   |   | 6,626 |   |
| Home equity lines and loans                |   |                                       | -      |   |                                          |   | 1,965  |                      |   |   | 1,965                    |   |   |                  | 322    |   |              |   | 2,287   |                        |   |   | - |   |   |   | 2,649 |   |
| All other consumer                         |   |                                       | -      |   |                                          |   | 1,810  |                      |   |   | 1,810                    |   |   |                  | -      |   |              |   | 1,810   |                        |   |   | - |   |   |   | 1,507 |   |
| Consumer loans                             |   |                                       | 383    |   |                                          |   | 9,046  |                      |   |   | 9,429                    |   |   |                  | 970    |   |              |   | 10,399  |                        |   |   | 73 |   |   |   | 10,782 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                                          | 17,290 |   |                                          | $      | 59,680 |                      |   | $      | 76,970                   |   |   | $                     | 40,025 |   |              | $      | 116,995 |                        |   | $ | 4,673 |   |   | $ | 81,967 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| December 31, 2010                          |   | Recorded Investment With Related Allowance |   |   | Recorded Investment Without Related Allowance |   |   | Total Recorded Investment |   |   | Life-to-date Charge-offs |   |   | Total Unpaid Balances |   |   | Related Allowance |   |    | Average Recorded Investment |   |
| (dollars in thousands)                     |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases |   | $                                          | 17,800 |   |                                          | $      | 17,069 |                      |   | $      | 34,869                   |   |   | $                     | 3,729  |   |              | $      | 38,598  |                        |   | $ | 6,473 |   |   | $ | 33,970 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                                       | 9,656  |   |                                          |   | 8,165  |                      |   |   | 17,821                   |   |   |                  | 8,725  |   |              |   | 26,546  |                        |   |   | 2,087 |   |   |   | 15,419 |   |
| CRE - construction                         |   |                                       | -      |   |                                          |   | 19,392 |                      |   |   | 19,392                   |   |   |                  | 20,163 |   |              |   | 39,555  |                        |   |   | - |   |   |   | 35,302 |   |
| Commercial  real estate          |   |                                       | 9,656  |   |                                          |   | 27,557 |                      |   |   | 37,213                   |   |   |                  | 28,888 |   |              |   | 66,101  |                        |   |   | 2,087 |   |   |   | 50,721 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                                       | -      |   |                                          |   | 5,802  |                      |   |   | 5,802                    |   |   |                  | 648    |   |              |   | 6,450   |                        |   |   | - |   |   |   | 13,965 |   |
| Home equity lines and loans                |   |                                       | -      |   |                                          |   | 2,133  |                      |   |   | 2,133                    |   |   |                  | 390    |   |              |   | 2,523   |                        |   |   | - |   |   |   | 2,789 |   |
| All other consumer                         |   |                                       | -      |   |                                          |   | 2,094  |                      |   |   | 2,094                    |   |   |                  | 4,182  |   |              |   | 6,276   |                        |   |   | - |   |   |   | 3,058 |   |
| Consumer loans                             |   |                                       | -      |   |                                          |   | 10,029 |                      |   |   | 10,029                   |   |   |                  | 5,220  |   |              |   | 15,249  |                        |   |   | - |   |   |   | 19,812 |   |
|                                       |   |                                       |   |   |                                          |   |   |                      |   |   |                     |   |   |                  |   |   |              |   |    |                        |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                                          | 27,456 |   |                                          | $      | 54,655 |                      |   | $      | 82,111                   |   |   | $                     | 37,837 |   |              | $      | 119,948 |                        |   | $ | 8,560 |   |   | $ | 104,503 |   |

| (dollars in thousands)                                                                                                                                                 |   | March 31, 2011 |   |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                                                                                                   |   | Balance        |   |   | Allowance         |   |   | Balance |   |   | Allowance |   |
| Impaired loans without a specific reserve                                                                                                                              |   | $              | 59,680 |   |              | $      | - |   |   | $ | 54,655 |   |   | $ | - |   |
| Impaired loans with a specific reserve                                                                                                                                 |   |           | 16,939 |   |              |   | 4,600 |   |   |   | 27,456 |   |   |   | 8,560 |   |
| Restructured loans (1)                                                                                                                                                 |   |           | 351    |   |              |   | 73 |   |   |   | - |   |   |   | - |   |
| Total impaired and restructured loans                                                                                                                                  |   | $              | 76,970 |   |              | $      | 4,673 |   |   | $ | 82,111 |   |   | $ | 8,560 |   |
|                                                                                                                                                                   |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Undrawn commitments to lend on restructured loans                                                                                                                      |   | $              | -      |   |              |   |   |   |   | $ | - |   |   |   |   |   |
|                                                                                                                                                                   |   |           |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| (1) Restructed loans are residential mortgages of customers who were experiencing financial difficulty and were in jeopardy of losing their homes to foreclosure. |   |

|                                            |   | For the three months |   |
|-------------------------------------------------|--------|----------------------|--------|
| (dollars in thousands)                          |   | ended March 31,      |   |
|                                            |   | 2011                 |   |   | 2010 |   |
| Gross interest due on impaired loans            |   | $                    | 2,148  |   |   | $ | 2,124 |   |
| Interest received on impaired loans             |   |                 | (510   | ) |   |   | (79 | ) |
| Net impact of interest income on impaired loans |   | $                    | 1,638  |   |   | $ | 2,045 |   |
|                                            |   |                 |   |   |   |   |   |   |
| Average recorded investment in impaired loans   |   | $                    | 81,967 |   |   | $ | 125,055 |   |

----

| (dollars in thousands)              |   | March 31, 2011 |      |   | December 31, 2010 |   |
|-------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                |   | Balance        |      |   | Cost              |   |   | Balance |   |   | Cost |   |
| Savings                             |   | $              | 457,395   |   |              |   | 0.19 | % |   | $ | 438,879 |   |   |   | 0.20 | % |
| NOW accounts                        |   |           | 1,128,644 |   |              |   | 0.22 | % |   |   | 1,181,850 |   |   |   | 0.23 | % |
| Money market accounts               |   |           | 1,655,115 |   |              |   | 0.59 | % |   |   | 1,664,620 |   |   |   | 0.60 | % |
| CDs $100 or less                    |   |           | 1,433,808 |   |              |   | 1.78 | % |   |   | 1,378,060 |   |   |   | 1.89 | % |
| CDs greater than $100               |   |           | 423,733   |   |              |   | 1.70 | % |   |   | 586,929 |   |   |   | 1.75 | % |
| Total interest bearing deposits     |   |           | 5,098,695 |   |              |   | 0.90 | % |   |   | 5,250,338 |   |   |   | 0.97 | % |
| Total non-interest bearing deposits |   |           | 834,321   |   |              |   | - |   |   |   | 808,835 |   |   |   | - |   |
| Total deposits                      |   | $              | 5,933,016 |   |              |   | 0.78 | % |   | $ | 6,059,173 |   |   |   | 0.84 | % |

| (dollars in thousands) |   |   |      |
|------------------------|--------|--------|-----------|
| 2011                   |   | $      | 1,107,346 |   |
| 2012                   |   |   | 423,796   |   |
| 2013                   |   |   | 91,890    |   |
| 2014                   |   |   | 145,753   |   |
| 2015                   |   |   | 60,659    |   |
| Thereafter             |   |   | 28,097    |   |
|                   |   | $      | 1,857,541 |   |

| (dollars in thousands)                                                   |   | March 31, 2011 |      |   | December 31, 2010   |   |
|--------------------------------------------------------------------------|--------|----------------|-----------|--------|---------------------|--------|
|                                                                     |   | Balance        |      |   | Effective rate |   |   | Balance |   |   | Effective rate |   |
| Securities sold under repurchase agreements                              |   | $              | 696,256   |   |                |   | 1.37 | % |   | $ | 734,455 |   |   |   | 1.48 | % |
| Short-term borrowings                                                    |   |           | 6,184     |   |                |   | - |   |   |   | 10,000 |   |   |   | - |   |
| Federal Home Loan Bank advances                                          |   |           | 627,716   |   |                |   | 4.49 | % |   |   | 703,761 |   |   |   | 4.35 | % |
| Subordinated debentures accounted for at fair value                      |   |           | 65,510    |   |                |   | 7.85 | % |   |   | 65,459 |   |   |   | 7.85 | % |
| Subordinated debentures accounted for at amortized cost1            |   |           | 77,321    |   |                |   | 5.71 | % |   |   | 77,321 |   |   |   | 5.73 | % |
| Total borrowings and other debt obligations                              |   | $              | 1,472,987 |   |                |   | 3.21 | % |   | $ | 1,590,996 |   |   |   | 3.22 | % |
|                                                                     |   |           |      |   |                |   |   |   |   |   |   |   |   |   |   |   |
| 1The effective rate includes the impact of the interest rate swaps. |   |           |      |   |                |   |   |   |   |   |   |   |   |

----

|                                      |   | Three months ended March 31, 2011 |   |
|-------------------------------------------|--------|-----------------------------------|--------|
|                                      |   | Before                            |   |   |   |   |   | Net of |   |
| (dollars in thousands)                    |   | Tax                               |   |   | Tax |   |   | Tax |   |
|                                      |   | Amount                            |   |   | Expense |   |   | Amount |   |
|                                      |   |                              |   |   |   |   |   |   |   |
| Net income                                |   | $                                 | 23,317 |   |   | $ | 4,537 |   |   | $ | 18,780 |   |
|                                      |   |                              |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on investment securities |   |                              | 11,232 |   |   |   | 3,931 |   |   |   | 7,301 |   |
| Unrealized gain on cash flow deriviatives |   |                              | 517    |   |   |   | - |   |   |   | 517 |   |
| Other comprehensive income                |   |                              | 11,749 |   |   |   | 3,931 |   |   |   | 7,818 |   |
|                                      |   |                              |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                |   | $                                 | 35,066 |   |   | $ | 8,468 |   |   | $ | 26,598 |   |

| (dollars in thousands)                     |   | March 31, |   |   | December 31, |   |
|--------------------------------------------|--------|-----------|--------|--------|--------------|--------|
|                                       |   | 2011      |   |   | 2010         |   |
| Unrealized gains on investment securities  |   | $         | 9,049  |   |         | $      | 1,748 |   |
| Unrealized (losses) on cash flow hedges    |   |      | (1,288 | )      |         |   | (1,805 | ) |
| Pension                                    |   |      | (9,349 | )      |         |   | (9,349 | ) |
| Total accumulated other comprehensive loss |   | $         | (1,588 | )      |         | $      | (9,406 | ) |

|                                                                |   | For the period ending |      |
|---------------------------------------------------------------------|--------|-----------------------|-----------|
| (dollars in thousands)                                              |   | March 31,             |      |   | December 31, |   |
|                                                                |   | 2011                  |      |   | 2010 |   |
| Financial instruments whose contract amounts represent credit risk: |   |                  |      |   |   |   |
| Commitments to extend credit                                        |   | $                     | 1,410,737 |   |   | $ | 1,497,983 |   |
| Commitments to fund mortgages held for sale                         |   |                  | 5,561     |   |   |   | 12,785 |   |
| Commitments to sell mortgages to investors                          |   |                  | 13,061    |   |   |   | 17,145 |   |
| Letters of credit                                                   |   |                  | 150,504   |   |   |   | 157,096 |   |

----

| (dollars in thousands)                           |   |      |   |   | Notional |   |   |   |   |   |      |   |   | Receive |   |   | Pay    |   |   | Life    |   |
|--------------------------------------------------|--------|-----------|--------|--------|----------|--------|--------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
|                                             |   | Positions |   |   | Amount   |   |   | Asset  |   |   | Liability |   |   | Rate    |   |   | Rate   |   |   | (Years) |   |
| March 31, 2011                                   |   |      |   |   |     |   |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |
| Pay fixed - receive floating interest rate swaps |   | 3         |   |   | $        | 75,000 |   |   | $      | -      |      |   | $      | 1,288   |   |   |   | 0.30   | %      |    |   | 3.26 | % |   |   | 0.58 |   |
| Total derivatives used in hedging relationships  |   |      |   |   | $        | 75,000 |   |   | $      | -      |      |   | $      | 1,288   |   |   |   | 0.30   | %      |    |   | 3.26 | % |   |   | 0.58 |   |
|                                             |   |      |   |   |     |   |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |
| December 31, 2010                                |   |      |   |   |     |   |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |
| Pay fixed - receive floating interest rate swaps |   | 3         |   |   | $        | 75,000 |   |   | $      | -      |      |   | $      | 1,805   |   |   |   | 0.29   | %      |    |   | 3.26 | % |   |   | 0.83 |   |
| Total derivatives used in hedging relationships  |   |      |   |   | $        | 75,000 |   |   | $      | -      |      |   | $      | 1,805   |   |   |   | 0.29   | %      |    |   | 3.26 | % |   |   | 0.83 |   |

| (dollars in thousands)                           |   |      |   |   | Notional |    |   |   |   |   |      |   |   | Receive |   |   | Pay    |   |   | Life    |   |
|--------------------------------------------------|--------|-----------|--------|--------|----------|---------|--------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
|                                             |   | Positions |   |   | Amount   |    |   | Asset  |   |   | Liability |   |   | Rate    |   |   | Rate   |   |   | (Years) |   |
| March 31, 2011                                   |   |      |   |   |     |    |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |
| Receive fixed - pay floating interest rate swaps |   | 81        |   |   | $        | 197,002 |   |   | $      | 17,900 |      |   | $      | -       |   |   |   | 6.11   | %      |    |   | 1.85 | % |   |   | 4.79 |   |
| Pay fixed - receive floating interest rate swaps |   | 81        |   |   |     | 197,002 |   |   |   | -      |      |   |   | 17,900  |   |   |   | 1.85   | %      |    |   | 6.11 | % |   |   | 4.79 |   |
| Net interest rate swaps                          |   |      |   |   | $        | 394,004 |   |   | $      | 17,900 |      |   | $      | 17,900  |   |   |   | 3.98   | %      |    |   | 3.98 | % |   |   | 4.79 |   |
|                                             |   |      |   |   |     |    |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |
| December 31, 2010                                |   |      |   |   |     |    |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |
| Receive fixed - pay floating interest rate swaps |   | 82        |   |   | $        | 202,643 |   |   | $      | 20,384 |      |   | $      | -       |   |   |   | 6.10   | %      |    |   | 1.90 | % |   |   | 4.95 |   |
| Pay fixed - receive floating interest rate swaps |   | 82        |   |   |     | 202,643 |   |   |   | -      |      |   |   | 20,384  |   |   |   | 1.90   | %      |    |   | 6.10 | % |   |   | 4.95 |   |
| Net interest rate swaps                          |   |      |   |   | $        | 405,286 |   |   | $      | 20,384 |      |   | $      | 20,384  |   |   |   | 4.00   | %      |    |   | 4.00 | % |   |   | 4.95 |   |

----

|                         |   | Balance Sheet Effect at                       |   | Income Statement Effect For The Three Months Ended              |
|------------------------------|--------|-----------------------------------------------|--------|-----------------------------------------------------------------|
| Derivative Activity          |   | March 31, 2011                                |   | March 31, 2011                                                  |
|                         |   |                                          |   |                                                            |
| Cash flow hedges:            |   |                                          |   |                                                            |
| Pay fixed - receive floating |   | Increase to other liabilities of $1.3 million |   | The ineffective portion is zero.                                |
| interest rate swaps          |   | and a corresponding decrease to OCI.          |   | Increase to interest expense of $0.6 million  for net |
|                         |   |                                          |   | settlements.                                                    |
|                         |   |                                          |   |                                                            |
| Interest rate swaps:         |   | Increase to other assets/liabilities          |   | No net effect on other operating income from                    |
|                         |   | of $17.9 million.                             |   | offsetting $2.5 million change.                                 |
|                         |   |                                          |   |                                                            |
| Other derivatives:           |   |                                          |   |                                                            |
| Interest rate locks          |   | Increase to other assets of $114,000.         |   | Increase to mortgage banking income of $54,000.                 |
|                         |   |                                          |   |                                                            |
| Forward sale commitments     |   | Increase to other liabilities of $138,000.    |   | Decrease to mortgage banking income of $85,000.                 |

|                         |   | Balance Sheet Effect at                       |   | Income Statement Effect For The Three Months Ended   |
|------------------------------|--------|-----------------------------------------------|--------|------------------------------------------------------|
| Derivative Activity          |   | December 31, 2010                             |   | March 31, 2010                                       |
|                         |   |                                          |   |                                                 |
| Cash flow hedges:            |   |                                          |   |                                                 |
| Pay fixed - receive floating |   | Increase to other liabilities of $1.8 million |   | The ineffective portion is zero.                     |
| interest rate swaps          |   | and a corresponding decrease to OCI.          |   | Increase to interest expense of $0.6 million for net |
|                         |   |                                          |   | settlements.                                         |
|                         |   |                                          |   |                                                 |
| Interest rate swaps:         |   | Increase to other assets/liabilities          |   | No net effect on other operating income from         |
|                         |   | of $20.4 million.                             |   | $1.7 million change.                                 |
|                         |   |                                          |   |                                                 |
| Other derivatives:           |   |                                          |   |                                                 |
| Interest rate locks          |   | Increase to other assets of $60,000.          |   | Increase to mortgage banking income of $109,000.     |
|                         |   |                                          |   |                                                 |
| Forward sale commitments     |   | Increase to other liabilities of $53,000.     |   | Decrease to mortgage banking income of $82,000.      |

----

| · | The markets for U.S. Government agency securities are active, but the exact (cusip) securities owned by the Company are traded thinly or infrequently. Therefore the price for these securities is determined by reference to transactions in securities with similar yields, maturities and other features (matrix priced).  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | State and municipal bonds owned by the Company are traded thinly or infrequently, and as a result the fair value is estimated in reference to securities with similar yields, credit ratings, maturities, and in consideration of any prepayment assumptions obtained from market data.                                       |
| · | Collateralized mortgage obligations and mortgage-backed securities are generally unique securities whose fair value is estimated using market information for new issues and adjusting for the features of a particular security by applying assumptions for prepayments, pricing spreads, yields and credit ratings.         |
| · | Corporate securities owned by the Company are traded thinly or infrequently. Therefore, the fair value for these securities is determined by reference to transactions in other issues of these securities with similar yields and features.                                                                                  |

| · | Corporate securities owned by the Company are not traded in active markets and prices for securities with similar features are unavailable. The fair value for each security is estimated in reference to benchmark transactions by security type based upon yields, credit spreads and option features.                                                                                                                                                                                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Marketable equity securities are securities not subject to ownership restrictions but are traded thinly on exchanges or over-the-counter. As a result, prices are not available on a consistent basis from published sources, and therefore additional quotations from brokers may be obtained. Additional indications of pricing, which are considered, include subsequent financing rounds or pending transactions. The reported fair value is based upon the Company’s judgment with respect to the information it is able to reliably obtain.  |

----

|                                      |   |           |      |   | Quoted Prices    |   |   | Significant |   |   |         |   |
|-------------------------------------------|--------|----------------|-----------|--------|------------------|--------|--------|-------------|--------|--------|--------------|--------|
|                                      |   |           |      |   | in Active        |   |   | Other       |   |   | Significant  |   |
|                                      |   | Total          |      |   | Markets for      |   |   | Observable  |   |   | Unobservable |   |
|                                      |   | Fair Value at  |      |   | Identical Assets |   |   | Inputs      |   |   | Inputs       |   |
|                                      |   | March 31, 2011 |      |   | (Level 1)        |   |   | (Level 2)   |   |   | (Level 3)    |   |
| (dollars in thousands)                    |   |           |      |   |             |   |   |        |   |   |         |   |
| Assets                                    |   |           |      |   |             |   |   |        |   |   |         |   |
| U.S. Treasury securities                  |   | $              | 19,976    |   |             | $      | 19,976 |        |   | $      | -            |   |   | $ | - |   |
| U.S. Government agency securities         |   |           | 5,089     |   |             |   | -      |        |   |   | 5,089        |   |   |   | - |   |
| State and municipal bonds                 |   |           | 332,569   |   |             |   | -      |        |   |   | 332,569      |   |   |   | - |   |
| Agency mortgage-backed securities/        |   |           |      |   |             |   |   |        |   |   |         |   |   |   |   |   |
| collateralized mortgage obligations       |   |           | 1,225,967 |   |             |   | -      |        |   |   | 1,225,967    |   |   |   | - |   |
| Non-agency collateralized mortgage        |   |           |      |   |             |   |   |        |   |   |         |   |   |   |   |   |
| obligations                               |   |           | 20,483    |   |             |   | -      |        |   |   | 20,483       |   |   |   | - |   |
| Corporate securities and other            |   |           | 13,755    |   |             |   | 2,193  |        |   |   | 9,562        |   |   |   | 2,000 |   |
| Marketable equity securities              |   |           | 4,556     |   |             |   | 3,448  |        |   |   | -            |   |   |   | 1,108 |   |
| Investment securities, available for sale |   |           | 1,622,395 |   |             |   | 25,617 |        |   |   | 1,593,670    |   |   |   | 3,108 |   |
|                                      |   |           |      |   |             |   |   |        |   |   |         |   |   |   |   |   |
| Interest rate lock                        |   |           | 114       |   |             |   |   |        |   |   | 114          |   |   |   |   |   |
| Interest rate swap agreements             |   |           | 17,900    |   |             |   |   |        |   |   | 17,900       |   |   |   |   |   |
|                                      |   |           |      |   |             |   |   |        |   |   |         |   |   |   |   |   |
| Liabilities                               |   |           |      |   |             |   |   |        |   |   |         |   |   |   |   |   |
| Subordinated debentures                   |   | $              | 65,510    |   |             | $      | 65,510 |        |   | $      | -            |   |   | $ | - |   |
| Forward sale commitments                  |   |           | 138       |   |             |   | -      |        |   |   | 138          |   |   |   | - |   |
| Interest rate swap agreements             |   |           | 19,188    |   |             |   | -      |        |   |   | 19,188       |   |   |   | - |   |

----

|                                      |   | TotalFair Value atDecember 31, 2010 |      |   | Quoted Pricesin ActiveMarkets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|-------------------------------------------|--------|-------------------------------------|-----------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------|--------|
| (dollars in thousands)                    |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |
| Assets                                    |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |
| U.S. Treasury securities                  |   | $                                   | 19,949    |   |                                                       | $      | 19,949 |                                      |   | $      | -                                      |   |   | $ | - |   |
| U.S. Government agency securities         |   |                                | 5,094     |   |                                                       |   | -      |                                      |   |   | 5,094                                  |   |   |   | - |   |
| State and municipal bonds                 |   |                                | 333,354   |   |                                                       |   | -      |                                      |   |   | 333,354                                |   |   |   | - |   |
| Agency mortgage-backed securities/        |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| collateralized mortgage obligations       |   |                                | 1,231,359 |   |                                                       |   | -      |                                      |   |   | 1,231,359                              |   |   |   | - |   |
| Non-agency collateralized mortgage        |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| obligations                               |   |                                | 25,074    |   |                                                       |   | -      |                                      |   |   | 25,074                                 |   |   |   | - |   |
| Corporate securities and other            |   |                                | 13,034    |   |                                                       |   | 2,130  |                                      |   |   | 9,904                                  |   |   |   | 1,000 |   |
| Marketable equity securities              |   |                                | 4,254     |   |                                                       |   | 3,140  |                                      |   |   | -                                      |   |   |   | 1,114 |   |
| Investment securities, available-for-sale |   |                                | 1,632,118 |   |                                                       |   | 25,219 |                                      |   |   | 1,604,785                              |   |   |   | 2,114 |   |
|                                      |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| Interest rate locks                       |   |                                | 60        |   |                                                       |   | -      |                                      |   |   | 60                                     |   |   |   | - |   |
| Interest rate swap agreements             |   |                                | 20,384    |   |                                                       |   | -      |                                      |   |   | 20,384                                 |   |   |   | - |   |
|                                      |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| Liabilities                               |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| Subordinated debentures                   |   | $                                   | 65,459    |   |                                                       | $      | 65,459 |                                      |   | $      | -                                      |   |   | $ | - |   |
| Forward sale commitments                  |   |                                | 53        |   |                                                       |   | -      |                                      |   |   | 53                                     |   |   |   | - |   |
| Interest rate swap agreements             |   |                                | 22,189    |   |                                                       |   | -      |                                      |   |   | 22,189                                 |   |   |   | - |   |

| (dollars in thousands)                                                 |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |
|------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|-----------------------------------|--------|--------|----------------------------------------------------|--------|--------|-----------|--------|--------|---------------------------|--------|--------|------------------------|--------|---------|-----------|--------|--------|-----------------------------|--------|
| Level 1                                                                |   | BeginningBalanceJanuary 1, 2011 |      |   | Gains/(losses)included inearnings |   |   | Gains/(losses)included in othercomprehensiveincome |   |   | Purchases |   |   | Maturities/Calls/Paydowns |   |   | Accretion/Amortization |   |    | Transfers |   |   | EndingBalanceMarch 31, 2011 |   |
| U.S. Treasury securities                                               |   | $                               | 19,949    |   |                              | $      | -      |                                               |   | $      | 14        |   |   | $                         | -      |   |                   | $      | -       |      |   | $      | 13                          |   |   | $ | - |   |   | $ | 19,976 |   |
| Corporate securities and other                                         |   |                            | 2,130     |   |                              |   | -      |                                               |   |   | 64        |   |   |                      | -      |   |                   |   | -       |      |   |   | (1                          | )      |   |   | - |   |   |   | 2,193 |   |
| Marketable equity securities                                           |   |                            | 3,140     |   |                              |   | -      |                                               |   |   | 308       |   |   |                      | -      |   |                   |   | -       |      |   |   | -                           |   |   |   | - |   |   |   | 3,448 |   |
| Total level 1                                                          |   | $                               | 25,219    |   |                              | $      | -      |                                               |   | $      | 386       |   |   | $                         | -      |   |                   | $      | -       |      |   | $      | 12                          |   |   | $ | - |   |   | $ | 25,617 |   |
|                                                                   |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
| Level 2                                                                |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies                                               |   | $                               | 5,094     |   |                              | $      | -      |                                               |   | $      | (6        | )      |   | $                         | -      |   |                   | $      | -       |      |   | $      | 1                           |   |   | $ | - |   |   | $ | 5,089 |   |
| State and municipal bonds                                              |   |                            | 333,354   |   |                              |   | -      |                                               |   |   | 4,632     |   |   |                      | -      |   |                   |   | (6,290  | )         |   |   | 873                         |   |   |   | - |   |   |   | 332,569 |   |
| Agency mortgage-backed securities/ collateralized mortgage obligations |   |                            | 1,231,359 |   |                              |   |   |                                               |   |   | 5,481     |   |   |                      | 60,716 |   |                   |   | (70,241 | )         |   |   | (1,348                      | )      |   |   | - |   |   |   | 1,225,967 |   |
| Non-agency collateralized mortgage obligations                         |   |                            | 25,074    |   |                              |   | -      |                                               |   |   | 86        |   |   |                      | -      |   |                   |   | (4,691  | )         |   |   | 14                          |   |   |   | - |   |   |   | 20,483 |   |
| Corporate securities and other                                         |   |                            | 9,904     |   |                              |   | -      |                                               |   |   | 660       |   |   |                      | -      |   |                   |   | -       |      |   |   | (2                          | )      |   |   | (1,000 | ) |   |   | 9,562 |   |
| Total level 2                                                          |   | $                               | 1,604,785 |   |                              | $      | -      |                                               |   | $      | 10,853    |   |   | $                         | 60,716 |   |                   | $      | (81,222 | )         |   | $      | (462                        | )      |   | $ | (1,000 | ) |   | $ | 1,593,670 |   |
|                                                                   |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
| Level 3                                                                |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
| Corporate securities and other                                         |   | $                               | 1,000     |   |                              | $      | -      |                                               |   | $      | -         |   |   | $                         | -      |   |                   | $      | -       |      |   | $      | -                           |   |   | $ | 1,000 |   |   | $ | 2,000 |   |
| Marketable equity securities                                           |   |                            | 1,114     |   |                              |   | -      |                                               |   |   | (6        | )      |   |                      | -      |   |                   |   | -       |      |   |   | -                           |   |   |   | - |   |   |   | 1,108 |   |
|   Total level 3                                              |   | $                               | 2,114     |   |                              | $      | -      |                                               |   | $      | (6        | )      |   | $                         | -      |   |                   | $      | -       |      |   |   |                        |   |   | $ | 1,000 |   |   | $ | 3,108 |   |
|                                                                   |   |                            |      |   |                              |   |   |                                               |   |   |      |   |   |                      |   |   |                   |   |    |      |   |   |                        |   |   |   |   |   |   |   |   |   |
| Total available for sale securities                                    |   | $                               | 1,632,118 |   |                              | $      | -      |                                               |   | $      | 11,233    |   |   | $                         | 60,716 |   |                   | $      | (81,222 | )         |   | $      | (450                        | )      |   | $ | - |   |   | $ | 1,622,395 |   |

----

|                              |   | Quoted Prices |   |   |        |   |   |         |   |   |    |   |
|-----------------------------------|--------|---------------|--------|--------|-------------|--------|--------|--------------|--------|--------|---------|--------|
| (dollars in thousands)            |   | in Active     |   |   | Significant |   |   |         |   |   |    |   |
|                              |   | Markets for   |   |   | Other       |   |   | Significant  |   |   |    |   |
|                              |   | Identical     |   |   | Observable  |   |   | Unobservable |   |   |    |   |
|                              |   | Assets        |   |   | Inputs      |   |   | Inputs       |   |   |    |   |
| March 31, 2011:                   |   | (Level 1)     |   |   | (Level 2)   |   |   | (Level 3)    |   |   | Balance |   |
| Assets                            |   |          |   |   |        |   |   |         |   |   |    |   |
| Loans and leases held for sale    |   | $             | -      |   |        | $      | 5,561  |         |   | $      | -       |   |   | $ | 5,561 |   |
| Impaired loans, net               |   |          | -      |   |        |   | -      |         |   |   | 72,297  |   |   |   | 72,297 |   |
| OREO and other repossessed assets |   |          | -      |   |        |   | -      |         |   |   | 7,653   |   |   |   | 7,653 |   |
|                              |   |          |   |   |        |   |   |         |   |   |    |   |   |   |   |   |
| December 31, 2010:                |   |          |   |   |        |   |   |         |   |   |    |   |   |   |   |   |
| Assets                            |   |          |   |   |        |   |   |         |   |   |    |   |   |   |   |   |
| Loans and leases held for sale    |   | $             | -      |   |        | $      | 12,785 |         |   | $      | -       |   |   | $ | 12,785 |   |
| Impaired loans, net               |   |          | -      |   |        |   | -      |         |   |   | 73,551  |   |   |   | 73,551 |   |
| OREO and other repossessed assets |   |          | -      |   |        |   | -      |         |   |   | 7,453   |   |   |   | 7,453 |   |

----

| (dollars in thousands)                                                              |   | March 31, 2011 |      |   | December 31, 2010 |   |
|-------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
|                                                                                |   | Carrying       |      |   |              |   |   | Carrying |   |   |   |   |
|                                                                                |   | Amount         |      |   | Fair Value        |   |   | Amount |   |   | Fair Value |   |
| ASSETS                                                                              |   |           |      |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $              | 505,368   |   |              | $      | 505,368 |   |   | $ | 702,382 |   |   | $ | 702,382 |   |
| Investment securities available for sale                                            |   |           | 1,622,395 |   |              |   | 1,622,395 |   |   |   | 1,632,118 |   |   |   | 1,632,118 |   |
| Investment securities held to maturity                                              |   |           | 535,488   |   |              |   | 533,369 |   |   |   | 546,957 |   |   |   | 537,932 |   |
| Loans and leases held for sale                                                      |   |           | 5,561     |   |              |   | 5,585 |   |   |   | 12,785 |   |   |   | 12,795 |   |
|                                                                                |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases                                          |   |           | 962,800   |   |              |   | 950,217 |   |   |   | 960,765 |   |   |   | 947,722 |   |
| Real estate loans:                                                                  |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Construction and land development                                                   |   |           | 270,584   |   |              |   | 258,953 |   |   |   | 339,242 |   |   |   | 325,640 |   |
| Residential                                                                         |   |           | 2,367,299 |   |              |   | 2,321,918 |   |   |   | 2,372,182 |   |   |   | 2,329,578 |   |
| Other (non-farm, non-residential)                                                   |   |           | 1,409,998 |   |              |   | 1,295,606 |   |   |   | 1,405,642 |   |   |   | 1,294,090 |   |
| Loans to individuals                                                                |   |           | 228,904   |   |              |   | 212,362 |   |   |   | 236,107 |   |   |   | 223,350 |   |
| Total loans                                                                         |   |           | 5,239,585 |   |              |   | 5,039,056 |   |   |   | 5,313,938 |   |   |   | 5,120,380 |   |
| Allowance for loan and lease losses                                                 |   |           | (142,960  | )      |              |   | - |   |   |   | (150,054 | ) |   |   | - |   |
| Net loans                                                                           |   | $              | 5,096,625 |   |              | $      | 5,039,056 |   |   | $ | 5,163,884 |   |   | $ | 5,120,380 |   |
|                                                                                |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| OREO and other repossessed assets                                                   |   |           | 7,653     |   |              |   | 7,653 |   |   |   | 7,453 |   |   |   | 7,453 |   |
| Interest rate locks                                                                 |   |           | 114       |   |              |   | 114 |   |   |   | 60 |   |   |   | 60 |   |
|                                                                                |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                         |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits                                                       |   | $              | 834,321   |   |              | $      | 834,321 |   |   | $ | 808,835 |   |   | $ | 808,835 |   |
| Interest-bearing deposits                                                           |   |           | 3,241,154 |   |              |   | 3,241,154 |   |   |   | 3,285,349 |   |   |   | 3,285,349 |   |
| Deposits with stated maturities                                                     |   |           | 1,857,541 |   |              |   | 1,871,017 |   |   |   | 1,964,989 |   |   |   | 1,979,819 |   |
| Repurchase agreements, federal funds                                                |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| purchased and short-term borrowings                                                 |   |           | 702,440   |   |              |   | 702,440 |   |   |   | 744,455 |   |   |   | 744,455 |   |
| FHLB advances                                                                       |   |           | 627,716   |   |              |   | 697,552 |   |   |   | 703,761 |   |   |   | 783,164 |   |
| Subordinated debentures                                                             |   |           | 142,831   |   |              |   | 142,831 |   |   |   | 142,780 |   |   |   | 142,780 |   |
| Forward sale commitments                                                            |   |           | 138       |   |              |   | 138 |   |   |   | 53 |   |   |   | 53 |   |
|                                                                                |   |           |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| * The loan classifications in this table are based upon regulatory classifications. |   |           |      |   |              |   |   |   |   |

----

| (dollars in thousands)                       |   | Three Months Ended March 31, |   |
|----------------------------------------------|--------|------------------------------|--------|
|                                         |   | 2011                         |   |   | 2010 |   |
| Service cost                                 |   | $                            | 30     |   |   | $ | 718 |   |
| Interest cost                                |   |                         | 583    |   |   |   | 518 |   |
| Expected return on plan assets               |   |                         | (686   | ) |   |   | (592 | ) |
| Amortization of prior service cost           |   |                         | -      |   |   |   | (129 | ) |
| Amortization of unrecognized net actual loss |   |                         | 73     |   |   |   | 336 |   |
| Net periodic benefit (gain) cost - recurring |   | $                            | -      |   |   | $ | 851 |   |
| Non-recurring curtailment gain               |   |                         | -      |   |   |   | (4,066 | ) |
| Net periodic benefit (gain) cost             |   | $                            | -      |   |   | $ | (3,215 | ) |

----

----

|                                               |   | As of and for the Three Months Ended |      |
|----------------------------------------------------|--------|--------------------------------------|-----------|
|                                               |   | March 31, 2011                       |      |
|                                               |   | Community                            |      |   |   |   |   |   |   |
| (dollars in thousands)                             |   | Banking                              |      |   | Other |   |   | Consolidated |   |
| Total assets                                       |   | $                                    | 8,483,313 |   |   | $ | 59,954 |   |   | $ | 8,543,267 |   |
| Total deposits                                     |   |                                 | 5,933,016 |   |   |   | - |   |   | $ | 5,933,016 |   |
| Net interest income (expense)                      |   |                                 | 68,052    |   |   |   | (2,082 | ) |   | $ | 65,970 |   |
| Total non-interest income                          |   |                                 | 13,765    |   |   |   | 10,419 |   |   | $ | 24,184 |   |
| Total non-interest expense                         |   |                                 | 48,471    |   |   |   | 8,366 |   |   | $ | 56,837 |   |
| Net (loss) income available to common shareholders |   |                                 | 20,370    |   |   |   | (4,733 | ) |   | $ | 15,637 |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   | As of and for the Three Months Ended |      |
|                                               |   | March 31, 2010                       |      |
|                                               |   | Community                            |      |   |   |   |   |   |   |   |   |
| (dollars in thousands)                             |   | Banking                              |      |   | Other |   |   | Consolidated |   |
| Total assets                                       |   | $                                    | 9,093,397 |   |   | $ | 78,364 |   |   | $ | 9,171,761 |   |
| Total deposits                                     |   |                                 | 6,411,364 |   |   |   | - |   |   |   | 6,411,364 |   |
| Net interest income (expense)                      |   |                                 | 69,118    |   |   |   | (1,859 | ) |   |   | 67,259 |   |
| Total non-interest income                          |   |                                 | 18,598    |   |   |   | 3,976 |   |   |   | 22,574 |   |
| Total non-interest expense                         |   |                                 | 50,752    |   |   |   | 6,905 |   |   |   | 57,657 |   |
| Net (loss) income available to common shareholders |   |                                 | 8,981     |   |   |   | (7,060 | ) |   |   | 1,921 |   |

----

Item 

|   | ·  | 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 excludes the effects of certain gains and losses, adjusted for applicable taxes. Adjusted net income provides a method 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 adjusted to also 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. |
|--------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | allowance for loan and lease losses;  |
|--------|---------------------------------------|
| · | goodwill and other intangible assets; |
| · | income taxes; and                     |
| · | other-than-temporary impairment.      |

----

----

| (dollars in thousands, except per share data)                                                |   | Three Months Ended |   |
|----------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                         |   | March 31, 2011     |   |   | March 31, 2010 |   |
| EARNINGS                                                                                     |   |               |   |   |   |   |
| Total interest income                                                                        |   | $                  | 89,358 |   |   | $ | 98,837 |   |
| Total interest expense                                                                       |   |               | 23,388 |   |   |   | 31,578 |   |
| Net interest income                                                                          |   |               | 65,970 |   |   |   | 67,259 |   |
| Provision for loan and lease losses                                                          |   |               | 10,000 |   |   |   | 32,500 |   |
| Net interest income after provision                                                          |   |               |   |   |   |   |   |   |
|   for loan and lease losses                                                        |   |               | 55,970 |   |   |   | 34,759 |   |
| Net losses from fair value changes of                                                        |   |               |   |   |   |   | - |   |
| subordinated debentures                                                                      |   |               | (51    | ) |   |   | (7,261 | ) |
| Other non-interest income                                                                    |   |               | 24,235 |   |   |   | 29,835 |   |
| Other non-interest expense                                                                   |   |               | 56,837 |   |   |   | 57,657 |   |
| Income (loss) before income taxes                                                            |   |               | 23,317 |   |   |   | (324 | ) |
| Income tax expense (benefit)                                                                 |   |               | 4,537  |   |   |   | (4,250 | ) |
| Net income                                                                                   |   |               | 18,780 |   |   |   | 3,926 |   |
| Preferred dividends and accretion of preferred discount                                      |   |               | (1,691 | ) |   |   | (2,005 | ) |
| Accelerated accretion from redemption of preferred stock                                     |   |               | (1,452 | ) |   |   | - |   |
| Net income available to common shareholders                                                  |   | $                  | 15,637 |   |   | $ | 1,921 |   |
|                                                                                         |   |               |   |   |   |   |   |   |
| Basic earnings available to common shareholders                                              |   | $                  | 0.10   |   |   | $ | 0.02 |   |
| Diluted earnings available to common shareholders                                            |   |               | 0.10   |   |   |   | 0.02 |   |
| Dividends per common share                                                                   |   |               | 0.01   |   |   |   | 0.01 |   |
|                                                                                         |   |               |   |   |   |   |   |   |
| Net interest margin                                                                          |   |               | 3.58   | % |   |   | 3.44 | % |
| Efficiency ratio (1)                                                                         |   |               | 59.61  | % |   |   | 58.54 | % |
|                                                                                         |   |               |   |   |   |   |   |   |
| Asset Quality Metrics                                                                        |   |               |   |   |   |   |   |   |
| Allowance / total loans and leases                                                           |   |               | 2.73   | % |   |   | 2.60 | % |
| Non-performing loans / total loans and leases                                                |   |               | 1.51   | % |   |   | 2.03 | % |
| Delinquent loans / total loans and leases                                                    |   |               | 0.44   | % |   |   | 0.54 | % |
| Allowance / non-performing loans and leases                                                  |   |               | 180.6  | % |   |   | 127.8 | % |
| Annualized net charge-offs                                                                   |   |               | 1.31   | % |   |   | 1.69 | % |
|                                                                                         |   |               |   |   |   |   |   |   |
| (1) Refer to the Statement Regarding Non-GAAP Financial Measures at the beginning of Item 2. |   |

| · | Disciplined deposit pricing resulted in contraction of interest earning assets and net interest income which totaled $66.0 million, but improvement in deposit mix increased net interest margin which expanded to 3.58% as compared to 3.44% in the prior year.                                                                                                                             |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | The provision for loan and lease losses decreased to $10.0 million from $32.5 million as a result of sustained improvement in asset quality trends. Delinquencies remain low, and levels of non-performing and classified loans continue to decline. Despite the reduced  provision, allowance coverage ratios remain strong.                                                      |
| · | Other non-interest income totaled $24.2 million for the quarter ended March 31, 2011, which is a decrease from $29.8 million primarily due to the divestiture of Christiana in December 2010, which contributed $1.5 million to wealth management income in the prior year, and a gain of $4.1 million from the curtailment of the Company’s pension plan during the first quarter of 2010. |

----

| · | Non-interest expense totaled $56.8 million for the first quarter of 2011 and the efficiency ratio was stable at 59.61%, reflective of management’s consistent focus on expense controls.                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Income tax expense totaled $4.5 million as compared to a benefit of $4.3 million in the first quarter of 2010 as a result of pre-tax income, as tax free income remained at a relatively consistent level.                                                                                    |
| · | On March 16, 2011, the Company redeemed all of its Series B preferred stock issued to the U.S. Treasury under its TARP Capital Repurchase Program for $150 million. As a result, the first quarter of 2011 includes $1.5 million of accelerated accretion from the redemption of the shares.  |

| (dollars in thousands, except per share data)            |   | Three months ended March 31, |   |
|----------------------------------------------------------|--------|------------------------------|--------|
|                                                     |   | 2011                         |   |   | 2010 |   |
| Adjusted net income reconciliation                       |   |                         |   |   |   |   |
| Net income available to common shareholders              |   | $                            | 15,637 |   |   | $ | 1,921 |   |
| After tax gain on pension plan curtailment               |   |                         | -      |   |   |   | (2,643 | ) |
| After tax unrealized fair market value loss on           |   |                         |   |   |   |   |   |   |
| NPB Capital Trust II Preferred Securities                |   |                         | -      |   |   |   | 4,720 |   |
| Accelerated accretion from redemption of preferred stock |   |                         | 1,452  |   |   |   | - |   |
| Adjusted net income available to common shareholders     |   | $                            | 17,089 |   |   | $ | 3,998 |   |
|                                                     |   |                         |   |   |   |   |   |   |
| Earnings per share                                       |   |                         |   |   |   |   |   |   |
| Net income available to common shareholders              |   | $                            | 0.10   |   |   | $ | 0.02 |   |
| After tax gain on pension plan curtailment               |   |                         | -      |   |   |   | (0.02 | ) |
| After tax unrealized fair market value loss on           |   |                         |   |   |   |   |   |   |
| NPB Capital Trust II Preferred Securities                |   |                         | -      |   |   |   | 0.03 |   |
| Accelerated accretion from redemption of preferred stock |   |                         | 0.01   |   |   |   | - |   |
| Adjusted net income available to common shareholders     |   | $                            | 0.11   |   |   | $ | 0.03 |   |

|   | · | The first quarter of 2011 included accelerated accretion of $1.5 million from the repayment of TARP. |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | Non-interest income in 2010 included a $7.3 million loss, or $4.7 million after-tax, on the Company’s subordinated debentures accounted for at fair value, and a $4.1 million, or $2.6 million after-tax, gain on the curtailment of the Company’s defined benefit pension plan. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| SUMMARY BALANCE SHEET                                                                        |   | March 31, 2011 |      |   | December 31, 2010 |   |      | % Change |   |
|----------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|-----------|----------|--------|
| Total cash and cash equivalents                                                              |   | $              | 505,368   |   |              | $      | 702,382   |     |   |   | -28.05 | % |
| Total assets                                                                                 |   |           | 8,543,267 |   |              |   | 8,844,620 |     |   |   | -3.41 | % |
| Investment securities and other securities                                                   |   |           | 2,235,777 |   |              |   | 2,259,690 |     |   |   | -1.06 | % |
| Total loans and leases                                                                       |   |           | 5,245,146 |   |              |   | 5,326,723 |     |   |   | -1.53 | % |
| Deposits                                                                                     |   |           | 5,933,016 |   |              |   | 6,059,173 |     |   |   | -2.08 | % |
| Borrowings                                                                                   |   |           | 1,472,987 |   |              |   | 1,590,996 |     |   |   | -7.42 | % |
| Shareholders' equity                                                                         |   |           | 1,097,609 |   |              |   | 1,137,437 |     |   |   | -3.50 | % |
| Tangible book value per common share (1)                                                     |   | $              | 5.40      |   |              | $      | 5.18      |     |   |   | 4.25 | % |
| Tangible common equity / tangible assets (1)                                                 |   |           | 9.91      | %      |              |   | 8.27      | %        |   |   |   |   |
|                                                                                         |   |           |      |   |              |   |      |     |   |   |   |   |
| (1) Refer to the Statement Regarding Non-GAAP Financial Measures at the beginning of Item 2. |   |

| ·  | Business activity has improved overall with retailers, auto dealers, and manufacturers reporting increases in sales, shipments and new orders. Third District banks reported minimal change in loan volume outstanding, although a few reported increased lending on home equity credit lines and growth in small business lending.  |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | Residential real estate has shown an increase in inquiries, showings and traffic, but little pickup in sales or construction. Demographic and employment trends resulting from the economic downturn continue to impact demand for housing in the region, which has resulted in weakness in real estate and collateral values.       |
| ·  | Employment data suggests that the stress in local labor markets has subsided somewhat with a slight year over year improvement.                                                                                                                                                                                                      |
| ·  | The outlook among Third District business contacts is positive and has strengthened slightly. Most agreed that slight growth will occur and improve throughout 2011.                                                                                                                                                                      |

----

| (dollars in thousands)                     |   | March 31, |      |   | December 31, |   |      |                |   |   |    |   |
|--------------------------------------------|--------|-----------|-----------|--------|--------------|--------|-----------|---------------------|--------|--------|---------|--------|
|                                       |   | 2011      |      |   | 2010         |   |      | Increase/(decrease) |   |
| Commercial and industrial loans and leases |   | $         | 2,410,931 |   |         | $      | 2,434,960 |                |   | $      | (24,029 | )      |   |   | (0.99 | ) % |
|                                       |   |      |      |   |         |   |      |                |   |   |    |   |   |   |   |   |
| CRE - permanent                            |   |      | 819,875   |   |         |   | 768,988   |                |   |   | 50,887  |   |   |   | 6.62 | % |
| CRE - construction                         |   |      | 206,924   |   |         |   | 281,056   |                |   |   | (74,132 | )      |   |   | (26.38 | ) % |
| Commercial  real estate          |   |      | 1,026,799 |   |         |   | 1,050,044 |                |   |   | (23,245 | )      |   |   | (2.21 | ) % |
|                                       |   |      |      |   |         |   |      |                |   |   |    |   |   |   |   |   |
| Residential mortgages                      |   |      | 746,928   |   |         |   | 765,414   |                |   |   | (18,486 | )      |   |   | (2.42 | ) % |
| Home equity lines and loans                |   |      | 740,785   |   |         |   | 745,124   |                |   |   | (4,339  | )      |   |   | (0.58 | ) % |
| All other consumer                         |   |      | 319,703   |   |         |   | 331,181   |                |   |   | (11,478 | )      |   |   | (3.47 | ) % |
| Consumer loans                             |   |      | 1,807,416 |   |         |   | 1,841,719 |                |   |   | (34,303 | )      |   |   | (1.86 | ) % |
|                                       |   |      |      |   |         |   |      |                |   |   |    |   |   |   |   |   |
| Total loans and leases                     |   | $         | 5,245,146 |   |         | $      | 5,326,723 |                |   | $      | (81,577 | )      |   |   | (1.53 | ) % |
|                                       |   |      |      |   |         |   |      |                |   |   |    |   |   |   |   |   |
| Allowance for loan and lease losses        |   |      | 142,960   |   |         |   | 150,054   |                |   |   | (7,094  | )      |   |   | (4.73 | ) % |
|                                       |   |      |      |   |         |   |      |                |   |   |    |   |   |   |   |   |
| Loans and leases, net                      |   | $         | 5,102,186 |   |         | $      | 5,176,669 |                |   |   | (74,483 | )      |   |   | (1.44 | ) % |

| (dollars in thousands)                                |   | March 31, |      |   | December 31, |   |
|-------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                  |   | 2011      |      |   | 2010         |   |
|                                                  |   |      |      |   |         |   |
| Nonperforming loans                                   |   | $         | 79,153    |   |         | $      | 83,864 |   |
| Nonperforming loans to total loans                    |   |      | 1.51      | %      |         |   | 1.57 | % |
| Delinquent loans                                      |   | $         | 23,159    |   |         | $      | 26,053 |   |
| Delinquent loans to total loans                       |   |      | 0.44      | %      |         |   | 0.49 | % |
| Classified loans                                      |   | $         | 438,275   |   |         | $      | 479,336 |   |
| Classified loans to total loans                       |   |      | 8.36      | %      |         |   | 9.00 | % |
| Tier 1 capital and ALLL                               |   | $         | 1,032,433 |   |         | $      | 1,074,197 |   |
| Classified loans to Tier 1 capital and ALLL           |   |      | 42.45     | %      |         |   | 44.62 | % |
| Total loans and leases, including loans held for sale |   | $         | 5,245,146 |   |         | $      | 5,326,723 |   |

----

| (dollars in thousands)                                                                                                                                                 |   | March 31, |      |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
|                                                                                                                                                                   |   | 2011      |      |   | 2010         |   |
| Non-accrual commercial and industrial loans and leases                                                                                                                 |   | $         | 34,122    |   |         | $      | 34,869 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Non-accrual commercial real estate-permanent                                                                                                                           |   |      | 15,407    |   |         |   | 17,821 |   |
| Non-accrual commercial real estate-construction                                                                                                                        |   |      | 18,012    |   |         |   | 19,392 |   |
| Total non-accrual commercial real estate loans                                                                                                                         |   |      | 33,419    |   |         |   | 37,213 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Non-accrual residential mortgages                                                                                                                                      |   |      | 5,303     |   |         |   | 5,802 |   |
| Non-accrual home equity lines and loans                                                                                                                                |   |      | 1,965     |   |         |   | 2,133 |   |
| All other non-accrual consumer loans                                                                                                                                   |   |      | 1,810     |   |         |   | 2,094 |   |
| Total non-accrual consumer loans                                                                                                                                       |   |      | 9,078     |   |         |   | 10,029 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Total non-accrual loans                                                                                                                                                |   |      | 76,619    |   |         |   | 82,111 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Restructured loans (1)                                                                                                                                                 |   |      | 351       |   |         |   | - |   |
| Loans 90+ days past due & still accruing                                                                                                                           |   |      | 2,183     |   |         |   | 1,753 |   |
| Total non-performing loans                                                                                                                                             |   |      | 79,153    |   |         |   | 83,864 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Other real estate owned and other assets                                                                                                                               |   |      | 7,653     |   |         |   | 7,453 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Total non-performing assets                                                                                                                                            |   | $         | 86,806    |   |         | $      | 91,317 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Total loans and leases, including loans held for sale                                                                                                                  |   | $         | 5,245,146 |   |         | $      | 5,326,723 |   |
| Average total loans and leases                                                                                                                                         |   | $         | 5,311,204 |   |         | $      | 5,761,647 |   |
| Allowance for loan and lease losses                                                                                                                                    |   | $         | 142,960   |   |         | $      | 150,054 |   |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| Allowance for loan and lease losses to:                                                                                                                                |   |      |      |   |         |   |   |   |
| Non-performing assets                                                                                                                                                  |   |      | 165       | %      |         |   | 164 | % |
| Non-performing loans                                                                                                                                                   |   |      | 181       | %      |         |   | 179 | % |
| Total loans and leases                                                                                                                                                 |   |      | 2.73      | %      |         |   | 2.82 | % |
| Average total loans and leases                                                                                                                                         |   |      | 2.69      | %      |         |   | 2.60 | % |
|                                                                                                                                                                   |   |      |      |   |         |   |   |   |
| (1) Restructed loans are residential mortgages of customers who were experiencing financial difficulty and were in jeopardy of losing their homes to foreclosure. |   |

| (dollars in thousands)                                                  |   | March 31, |   |   | December 31, |   |
|-------------------------------------------------------------------------|--------|-----------|--------|--------|--------------|--------|
|                                                                    |   | 2011      |   |   | 2010         |   |
| Total non-accrual loans                                                 |   | $         | 76,619 |   |         | $      | 82,111 |   |
|                                                                    |   |      |   |   |         |   |   |   |
| Non-accrual loans and leases with partial charge-offs                   |   |      | 43,257 |   |         |   | 33,351 |   |
| Life-to-date partial charge-offs on nonaccrual loans and leases         |   |      | 40,025 |   |         |   | 37,837 |   |
|                                                                    |   |      |   |   |         |   |   |   |
| Charge-off rate of nonaccrual loans and leases with partial charge-offs |   |      | 48.1   | %      |         |   | 53.2 | % |
|                                                                    |   |      |   |   |         |   |   |   |
| Specific reserves on non-accrual loans                                  |   |      | 4,673  |   |         |   | 8,560 |   |

----

|                                       |   | March 31, |   |   | December 31, |   |   | March 31, |   |
|--------------------------------------------|--------|-----------|--------|--------|--------------|--------|--------|-----------|--------|
| (dollars in thousands)                     |   | 2011      |   |   | 2010         |   |   | 2010      |   |
|                                       |   |      |   |   |         |   |   |      |   |
| Commercial and industrial loans and leases |   | $         | 9,319  |   |         | $      | 7,363  |      |   | $ | 2,261 |   |
|                                       |   |      |   |   |         |   |   |      |   |   |   |   |
| Commercial real estate-permanent           |   |      | 3,946  |   |         |   | 2,903  |      |   |   | 359 |   |
| Commercial real estate-construction        |   |      | 873    |   |         |   | 1,973  |      |   |   | 18,427 |   |
| Total commercial real estate loans         |   |      | 4,819  |   |         |   | 4,876  |      |   |   | 18,786 |   |
|                                       |   |      |   |   |         |   |   |      |   |   |   |   |
| Residential mortgages                      |   |      | 1,643  |   |         |   | 5,620  |      |   |   | 2,700 |   |
| Home equity lines and loans                |   |      | 1,158  |   |         |   | 1,280  |      |   |   | 466 |   |
| All other consumer loans                   |   |      | 155    |   |         |   | 874    |      |   |   | 708 |   |
| Total consumer loans                       |   |      | 2,956  |   |         |   | 7,774  |      |   |   | 3,874 |   |
|                                       |   |      |   |   |         |   |   |      |   |   |   |   |
| Net loans charged-off                      |   | $         | 17,094 |   |         | $      | 20,013 |      |   | $ | 24,921 |   |
|                                       |   |      |   |   |         |   |   |      |   |   |   |   |
| Net charge-offs (annualized) to:           |   |      |   |   |         |   |   |      |   |   |   |   |
| Total loans and leases                     |   |      | 1.32   | %      |         |   | 1.49   | %         |   |   | 1.71 | % |
| Average total loans and leases             |   |      | 1.31   | %      |         |   | 1.44   | %         |   |   | 1.69 | % |
| Allowance for loan and lease losses        |   |      | 48.49  | %      |         |   | 52.91  | %         |   |   | 65.69 | % |

----

| (dollars in thousands)                     |   | March 31, |    |   | March 31, |   |
|--------------------------------------------|--------|-----------|---------|--------|-----------|--------|
|                                       |   | 2011      |    |   | 2010      |   |
| Balance at beginning of year               |   | $         | 150,054 |   |      | $      | 146,271 |   |
| Charge-offs:                               |   |      |    |   |      |   |   |   |
| Commercial and industrial loans and leases |   |      | 9,569   |   |      |   | 3,135 |   |
| Commercial  real estate          |   |      | 5,313   |   |      |   | 19,990 |   |
| Consumer loans                             |   |      | 3,871   |   |      |   | 4,357 |   |
| Total charge-offs                          |   |      | 18,753  |   |      |   | 27,482 |   |
|                                       |   |      |    |   |      |   |   |   |
| Recoveries:                                |   |      |    |   |      |   |   |   |
| Commercial and industrial loans and leases |   |      | 250     |   |      |   | 874 |   |
| Commercial  real estate          |   |      | 494     |   |      |   | 1,204 |   |
| Consumer loans                             |   |      | 915     |   |      |   | 483 |   |
| Total recoveries                           |   |      | 1,659   |   |      |   | 2,561 |   |
| Net charge-offs                            |   |      | 17,094  |   |      |   | 24,921 |   |
| Provision charged to expense               |   |      | 10,000  |   |      |   | 32,500 |   |
| Balance at end of period                   |   | $         | 142,960 |   |      | $      | 153,850 |   |

| (dollars in thousands)                    |   | March 31, |    |   | December 31, |   |
|-------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                      |   | 2011      |    |   | 2010         |   |
| Specific reserves                         |   | $         | 4,673   |   |         | $      | 8,560 |   |
| Allocated reserves                        |   |      | 130,147 |   |         |   | 133,169 |   |
| Unallocated reserves                      |   |      | 8,140   |   |         |   | 8,325 |   |
| Total allowance for loan and lease losses |   | $         | 142,960 |   |         | $      | 150,054 |   |

| (dollars in thousands)        |   |           |      |   |              |   |      |                |   |   |
|-------------------------------|--------|----------------|-----------|--------|-------------------|--------|-----------|---------------------|--------|--------|
|                          |   | March 31, 2011 |      |   | December 31, 2010 |   |      | Increase/(decrease) |   |
| Non-interest bearing deposits |   | $              | 834,321   |   |              | $      | 808,835   |                |   | $      | 25,486 |   |   |   | 3.15 | % |
| Savings                       |   |           | 457,395   |   |              |   | 438,879   |                |   |   | 18,516 |   |   |   | 4.22 | % |
| NOW accounts                  |   |           | 1,128,644 |   |              |   | 1,181,850 |                |   |   | (53,206 | ) |   |   | (4.50 | ) % |
| Money market accounts         |   |           | 1,655,115 |   |              |   | 1,664,620 |                |   |   | (9,505 | ) |   |   | (0.57 | ) % |
| CDs $100 or less              |   |           | 1,433,808 |   |              |   | 1,378,060 |                |   |   | 55,748 |   |   |   | 4.05 | % |
| CDs greater than $100         |   |           | 423,733   |   |              |   | 586,929   |                |   |   | (163,196 | ) |   |   | (27.81 | ) % |
| Total deposits                |   | $              | 5,933,016 |   |              | $      | 6,059,173 |                |   | $      | (126,157 | ) |   |   | (2.08 | ) % |

----

| · | Securities sold under repurchase agreements totaled $696 million at March 31, 2011, a decrease of $38.2 million, or 5.2%, from $734 million at December 31, 2010 due to a reduction in cash management account balances.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | FHLB advances decreased $76.0 million, or 10.8%, to $628 million at March 31, 2011 from $704 million at December 31, 2010, due to advances that matured and were not replaced during the period.                          |

| · | Net income of $18.8 million;                                                                                |
|--------|------------------------------------------------------------------------------------------------------------------|
| · | Net proceeds from the Warburg Pincus second closing of $84.5 million.                                       |
| · | Redemption of Series B preferred stock, including accelerated accretion of $1.5 million, for $150 million.  |
| · | Accumulated other comprehensive income of $7.8 million.                                                     |
| · | Cash dividends on preferred stock of $1.6 million; and                                                      |
| · | Cash dividends on common stock of $1.5 million.                                                                  |

----

|                                                                                                    |   | For the three months ended March 31, |      |
|---------------------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                                                                    |   | 2011                                 |      |   | 2010 |   |
| (dollars in thousands)                                                                                  |   | Average                              |      |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                                                                    |   | Balance                              |      |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| INTEREST EARNING ASSETS:                                                                                |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest earning deposits at banks                                                                      |   | $                                    | 508,684   |   |   | $ | 280 |   |   |   | 0.22 | % |   | $ | 411,100 |   |   | $ | 247 |   |   |   | 0.24 | % |
|                                                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                                                                           |   |                                 | 19,963    |   |   |   | 13 |   |   |   | 0.27 | % |   |   | 145,864 |   |   |   | 156 |   |   |   | 0.43 | % |
| U.S. Government agencies                                                                                |   |                                 | 1,366,138 |   |   |   | 10,673 |   |   |   | 3.17 | % |   |   | 1,143,672 |   |   |   | 10,319 |   |   |   | 3.66 | % |
| State and municipal*                                                                                    |   |                                 | 762,305   |   |   |   | 12,926 |   |   |   | 6.88 | % |   |   | 799,040 |   |   |   | 13,457 |   |   |   | 6.83 | % |
| Other bonds and securities                                                                              |   |                                 | 97,010    |   |   |   | 671 |   |   |   | 2.80 | % |   |   | 96,310 |   |   |   | 623 |   |   |   | 2.62 | % |
| Total investments                                                                                       |   |                                 | 2,245,416 |   |   |   | 24,283 |   |   |   | 4.39 | % |   |   | 2,184,886 |   |   |   | 24,555 |   |   |   | 4.56 | % |
|                                                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and lease financing*                                                                   |   |                                 | 3,481,370 |   |   |   | 45,625 |   |   |   | 5.31 | % |   |   | 4,033,790 |   |   |   | 52,551 |   |   |   | 5.28 | % |
| Installment loans                                                                                       |   |                                 | 919,015   |   |   |   | 11,586 |   |   |   | 5.11 | % |   |   | 962,303 |   |   |   | 12,518 |   |   |   | 5.28 | % |
| Mortgage loans                                                                                          |   |                                 | 910,819   |   |   |   | 12,726 |   |   |   | 5.67 | % |   |   | 989,460 |   |   |   | 14,434 |   |   |   | 5.92 | % |
| Total loans and leases                                                                                  |   |                                 | 5,311,204 |   |   |   | 69,937 |   |   |   | 5.34 | % |   |   | 5,985,553 |   |   |   | 79,503 |   |   |   | 5.39 | % |
| Total earning assets                                                                                    |   |                                 | 8,065,304 |   |   |   | 94,500 |   |   |   | 4.75 | % |   |   | 8,581,539 |   |   |   | 104,305 |   |   |   | 4.93 | % |
| Allowance for loan and lease losses                                                                     |   |                                 | (156,582  | ) |   |   |   |   |   |   |   |   |   |   | (160,879 | ) |   |   |   |   |   |   |   |   |
| Non-interest earning assets                                                                             |   |                                 | 792,926   |   |   |   |   |   |   |   |   |   |   |   | 916,673 |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                            |   | $                                    | 8,701,648 |   |   |   |   |   |   |   |   |   |   | $ | 9,337,333 |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST BEARING LIABILITIES:                                                                           |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                                                               |   |                                 | 5,136,953 |   |   |   | 11,407 |   |   |   | 0.90 | % |   |   | 5,824,492 |   |   |   | 18,281 |   |   |   | 1.27 | % |
| Securities sold under repurchase agreements                                                             |   |                                 | 711,100   |   |   |   | 2,395 |   |   |   | 1.37 | % |   |   | 742,089 |   |   |   | 2,874 |   |   |   | 1.57 | % |
| Short-term borrowings                                                                                   |   |                                 | 6,850     |   |   |   | - |   |   |   | 0.00 | % |   |   | 7,024 |   |   |   | - |   |   |   | 0.00 | % |
| Long-term borrowings                                                                                    |   |                                 | 793,989   |   |   |   | 9,586 |   |   |   | 4.90 | % |   |   | 885,293 |   |   |   | 10,423 |   |   |   | 4.78 | % |
| Total interest bearing liabilities                                                                      |   |                                 | 6,648,892 |   |   |   | 23,388 |   |   |   | 1.43 | % |   |   | 7,458,898 |   |   |   | 31,578 |   |   |   | 1.72 | % |
| Non-interest bearing deposits                                                                           |   |                                 | 813,704   |   |   |   |   |   |   |   |   |   |   |   | 767,398 |   |   |   |   |   |   |   |   |   |
| Other non-interest bearing liabilities                                                                  |   |                                 | 47,973    |   |   |   |   |   |   |   |   |   |   |   | 35,985 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                       |   |                                 | 7,510,569 |   |   |   |   |   |   |   |   |   |   |   | 8,262,281 |   |   |   |   |   |   |   |   |   |
| Equity capital                                                                                          |   |                                 | 1,191,080 |   |   |   |   |   |   |   |   |   |   |   | 1,075,052 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity capital                                                                    |   | $                                    | 8,701,649 |   |   |   |   |   |   |   |   |   |   | $ | 9,337,333 |   |   |   |   |   |   |   |   |   |
| INTEREST RATE MARGIN**                                                                                  |   |                                 |      |   |   |   | 71,112 |   |   |   | 3.58 | % |   |   |   |   |   |   | 72,727 |   |   |   | 3.44 | % |
| Tax equivalent interest                                                                                 |   |                                 |      |   |   |   | 5,142 |   |   |   |   |   |   |   |   |   |   |   | 5,468 |   |   |   |   |   |
| Net interest income                                                                                     |   |                                 |      |   |   | $ | 65,970 |   |   |   |   |   |   |   |   |   |   | $ | 67,259 |   |   |   |   |   |
|                                                                                                    |   |                                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *Full taxable equivalent basis, using a 35% effective tax rate.                                         |   |                                 |      |   |   |
| **Represents the difference between interest earned and interest paid, divided by total earning assets. |   |                                 |      |   |   |
| Loans outstanding, net of unearned income, include non-accruing loans.                                  |   |                                 |      |   |   |
| Fee income included.                                                                                    |   |                                 |      |   |   |

----

| (dollars in thousands)                      |   | Three Months Ended March 31, |   |
|---------------------------------------------|--------|------------------------------|--------|
|                                        |   | 2011 compared to 2010        |   |
|                                        |   | Volume                       |   |   | Rate |   |   | Total |   |
| Interest Income                             |   |                         |   |   |   |   |   |   |   |
| Interest earning deposits at banks          |   | $                            | 55     |   |   | $ | (22 | ) |   | $ | 33 |   |
| Securities                                  |   |                         |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                               |   |                         | (98    | ) |   |   | (45 | ) |   |   | (143 | ) |
| U.S. Agencies                               |   |                         | 1,848  |   |   |   | (1,494 | ) |   |   | 354 |   |
| State and municipal                         |   |                         | (623   | ) |   |   | 92 |   |   |   | (531 | ) |
| Other bonds and securities                  |   |                         | 5      |   |   |   | 43 |   |   |   | 48 |   |
| Total investment securities                 |   |                         | 1,132  |   |   |   | (1,404 | ) |   |   | (272 | ) |
| Loans                                       |   |                         |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and leases                 |   |                         | (7,238 | ) |   |   | 312 |   |   |   | (6,926 | ) |
| Installment loans                           |   |                         | (553   | ) |   |   | (379 | ) |   |   | (932 | ) |
| Mortgage loans                              |   |                         | (1,117 | ) |   |   | (592 | ) |   |   | (1,709 | ) |
| Total loans                                 |   |                         | (8,908 | ) |   |   | (659 | ) |   |   | (9,567 | ) |
| Total interest income                       |   | $                            | (7,721 | ) |   | $ | (2,085 | ) |   | $ | (9,806 | ) |
|                                        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                            |   |                         |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                   |   | $                            | (1,976 | ) |   | $ | (4,898 | ) |   | $ | (6,874 | ) |
|                                        |   |                         |   |   |   |   |   |   |   |   |   |   |
| Securities sold under repurchase agreements |   |                         | (116   | ) |   |   | (363 | ) |   |   | (479 | ) |
| Short-term borrowings                       |   |                         | -      |   |   |   | - |   |   |   | - |   |
| FHLB advances and subordinated debentures   |   |                         | (1,097 | ) |   |   | 260 |   |   |   | (837 | ) |
| Total borrowed funds                        |   |                         | (1,213 | ) |   |   | (103 | ) |   |   | (1,316 | ) |
| Total interest expense                      |   |                         | (3,189 | ) |   |   | (5,001 | ) |   |   | (8,190 | ) |
| Increase (decrease) in interest income      |   | $                            | (4,532 | ) |   | $ | 2,916 |   |   | $ | (1,616 | ) |

----

| (dollars in thousands)                                                     |   | Three Months    |   |   |   |   |   |                |   |
|----------------------------------------------------------------------------|--------|-----------------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                       |   | Ended March 31, |   |   |   |   |   |                |   |
| NON-INTEREST INCOME                                                        |   | 2011            |   |   | 2010   |   |   | Increase (Decrease) |   |
| Wealth management income                                                   |   | $               | 5,924  |   |   | $      | 7,101  |                |   | $ | (1,177 | ) |   |   | (16.58 | ) % |
| Service charges on deposit accounts                                        |   |            | 4,664  |   |   |   | 5,341  |                |   |   | (677 | ) |   |   | (12.68 | ) % |
| Insurance commissions and fees                                             |   |            | 3,221  |   |   |   | 3,771  |                |   |   | (550 | ) |   |   | (14.58 | ) % |
| Cash management and electronic banking fees                                |   |            | 4,371  |   |   |   | 4,158  |                |   |   | 213 |   |   |   | 5.12 |   % |
| Mortgage banking income                                                    |   |            | 1,080  |   |   |   | 1,153  |                |   |   | (73 | ) |   |   | (6.33 | ) % |
| Bank owned life insurance income                                           |   |            | 1,220  |   |   |   | 1,983  |                |   |   | (763 | ) |   |   | (38.48 | ) % |
| Equity in undistributed net earnings of unconsolidated investments         |   |            | 1,700  |   |   |   | 163    |                |   |   | 1,537 |   |   | NM |   |
| Gain on pension plan curtailment                                           |   |            | -      |   |   |   | 4,066  |                |   |   | (4,066 | ) |   |   | (100.00 | ) % |
| Other operating income                                                     |   |            | 2,055  |   |   |   | 2,733  |                |   |   | (678 | ) |   |   | (24.81 | ) % |
| Net losses from fair value changes of subordinate debentures               |   |            | (51    | )      |   |   | (7,261 | )                   |   |   | 7,210 |   |   |   | (99.30 | ) % |
| Net gains (losses) on sales of investment securities                       |   |            | -      |   |   |   | -      |                |   |   | - |   |   |   | 0.00 |   |
| Impairment losses on investment securities:                                |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Impairment losses on investment securities                                 |   |            | -      |   |   |   | (634   | )                   |   |   | 634 |   |   |   | (100.00 | ) % |
| Non credit-related losses on securities not expected to be sold recognized |   |            |   |   |   |   |   |                |   |   | - |   |   |   | 0.00 |   |
| in other comprehensive loss before tax                                     |   |            | -      |   |   |   | -      |                |   |   | - |   |   |   | 0.00 |   |
| Net impairment losses on investment securities                             |   |            | -      |   |   |   | (634   | )                   |   |   | 634 |   |   |   | (100.00 | ) % |
| Total non-interest income                                                  |   | $               | 24,184 |   |   | $      | 22,574 |                |   | $ | 1,610 |   |   |   | 7.13 |   % |
|                                                                       |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
|                                                                       |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| "NM" - Denotes a value displayed as a percentage change is not meaningful  |   |

| · | Equity in undistributed net earnings of unconsolidated investments represents earnings of a mezzanine debt fund and increased $1.5 million to $1.7 million, as the timing of fund activities and “exits” vary.  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Loss on the Company’s subordinated debentures accounted for at fair value reduced non-interest income in 2010 by $7.3 million.                                                                                        |

| · | The first quarter of 2010 included a gain of $4.1 million from the curtailment of the Company’s defined benefit pension plan.                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Wealth management income decreased modestly by $1.2 million, to $5.9 million for the first quarter of 2011, primarily from the sale of Christiana in the fourth quarter of 2010. Christiana contributed $1.5 million of wealth management income during the first quarter of 2010. Exclusive of Christiana’s divestiture, wealth management income increased $0.3 million due to increased commission income on retail investment product sales and appreciation of the equity markets and its positive impact on fee-based business.  |
| · | Service charges on deposit accounts declined $0.7 million to $4.7 million for the first quarter of 2011 as a result of the impact from the reduction in overdraft volume, resulting from improved customer savings levels, which resulted in an increase in the average balance per account, and the impact of regulatory changes affecting electronic customer transactions.                                                                                                                                                                |

----

| (dollars in thousands)                                                                       |   | Three Months    |   |   |   |   |   |                |   |
|----------------------------------------------------------------------------------------------|--------|-----------------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                                         |   | Ended March 31, |   |   |   |   |   |                |   |
| NON-INTEREST EXPENSE                                                                         |   | 2011            |   |   | 2010   |   |   | Increase (Decrease) |   |
| Salaries, wages and employee benefits                                                        |   | $               | 31,449 |   |   | $      | 29,429 |                |   | $ | 2,020 |   |   |   | 6.86 |   % |
| Net premises and equipment                                                                   |   |            | 7,272  |   |   |   | 7,998  |                |   |   | (726 | ) |   |   | (9.08 | ) % |
| FDIC insurance                                                                               |   |            | 3,457  |   |   |   | 4,097  |                |   |   | (640 | ) |   |   | (15.62 | ) % |
| Other operating expenses                                                                     |   |            | 14,659 |   |   |   | 16,133 |                |   |   | (1,474 | ) |   |   | (9.14 | ) % |
| Total non-interest expense                                                                   |   | $               | 56,837 |   |   | $      | 57,657 |                |   | $ | (820 | ) |   |   | (1.42 | ) % |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES - EFFICIENCY RATIO (1)                  |   |            |   |   |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Efficiency Ratio Calculation                                                                 |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Non-interest expense                                                                         |   | $               | 56,837 |   |   | $      | 57,657 |                |   |   |   |   |   |   |   |   |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Net interest income (taxable equivalent)                                                     |   | $               | 71,112 |   |   | $      | 72,727 |                |   |   |   |   |   |   |   |   |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Non-interest income                                                                          |   |            | 24,184 |   |   |   | 22,574 |                |   |   |   |   |   |   |   |   |
| Less:                                                                                        |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Gain on pension plan curtailment                                                             |   |            | -      |   |   |   | 4,066  |                |   |   |   |   |   |   |   |   |
| Net losses from fair value changes                                                           |   |            | (51    | )      |   |   | (7,261 | )                   |   |   |   |   |   |   |   |   |
| Adjusted revenue                                                                             |   | $               | 95,347 |   |   | $      | 98,496 |                |   |   |   |   |   |   |   |   |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Efficiency Ratio                                                                             |   |            | 59.61  | %      |   |   | 58.54  | %                   |   |   |   |   |   |   |   |   |
|                                                                                         |   |            |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| (1) Refer to the Statement Regarding Non-GAAP Financial Measures at the beginning of Item 2. |   |            |   |   |   |

----

|                                                      |   |   |      |   | Payments Due by Period: |   |
|-----------------------------------------------------------|--------|--------|-----------|--------|-------------------------|--------|
|                                                      |   |   |      |   |                    |   |   | After one |   |   | After three |   |   |   |   |
|                                                      |   |   |      |   | One Year                |   |   | year to |   |   | years to |   |   | More than |   |
| (dollars in thousands)                                    |   | Total  |      |   | or less                 |   |   | three years |   |   | five years |   |   | 5 Years |   |
|                                                      |   |   |      |   |                    |   |   |   |   |   |   |   |   |   |   |
| Remaining contractual maturities of time deposits         |   | $      | 1,857,541 |   |                    | $      | 1,318,872 |   |   | $ | 262,304 |   |   | $ | 200,210 |   |   | $ | 76,155 |   |
| Federal Home Loan Bank Advances                           |   |   | 627,716   |   |                    |   | 10,682 |   |   |   | 102,000 |   |   |   | 106,500 |   |   |   | 408,534 |   |
| Subordinated debentures                                   |   |   | 142,831   |   |                    |   | - |   |   |   | - |   |   |   | - |   |   |   | 142,831 |   |
| Minimum annual rentals or non-cancelable operating leases |   |   | 43,843    |   |                    |   | 6,554 |   |   |   | 10,583 |   |   |   | 8,469 |   |   |   | 18,237 |   |
| Total                                                     |   | $      | 2,671,931 |   |                    | $      | 1,336,108 |   |   | $ | 374,887 |   |   | $ | 315,179 |   |   | $ | 645,757 |   |

| · | Relationships with several correspondent banks to provide short-term borrowings in the form of federal funds purchased.                                                                                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | The Company is also a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”) and has the ability to borrow within applicable limits in the form of advances secured by pledges of certain qualifying assets.  |
| · | Overnight funds are available from the Federal Reserve Bank via the discount window, and serves as an additional source of liquidity.                                                                                               |

| · | $150 million repayment of Series B Preferred stock                    |
|--------|-----------------------------------------------------------------------|
| · | $107 million reduction of certificate of deposits                     |
| · | $75.8 million of payments for maturing of FHLB advances               |
| · | $38.2 million decrease in securities sold under repurchase agreements |

| · | $60.7 million of investment security purchases |
|--------|------------------------------------------------|

| · | $81.2 million of maturities and repayments of investment securities available-for-sale |
|--------|----------------------------------------------------------------------------------------|
| · | $54.8 million net maturities and repayments from loans and leases held for investment  |

| · | $84.5 million of issuance of common stock in private placement |
|--------|----------------------------------------------------------------|

----

|                           |                            | Tier 1 Capital to    |   | Tier 1 Capital to Risk- |   | Total Capital to Risk- |
|--------------------------------|---------------------------------|----------------------|--------|-------------------------|--------|------------------------|
|                           |                            | Average Assets Ratio |   | Weighted Assets Ratio   |   | Weighted Assets Ratio  |
|                           |                            | March 31,            |   | December 31,            |   | March 31,              |   | December 31, |   | March 31, |   | December 31, |
|                           |                            | 2011                 |   | 2010                    |   | 2011                   |   | 2010 |   | 2011 |   | 2010 |
|                           |                            |                 |   |                    |   |                   |   |   |   |   |   |   |
| The Company                    | 10.66%                          |                 | 10.59% |                    | 15.66% |                   | 16.12% |   | 16.91% |   | 17.38% |
| National Penn Bank             | 9.52%                           |                 | 8.89%  |                    | 14.13% |                   | 13.39% |   | 15.39% |   | 14.65% |
| "Well Capitalized" institution | 5.00%                           |                 | 5.00%  |                    | 6.00%  |                   | 6.00% |   | 10.00% |   | 10.00% |
|                           |  under banking regulations |                 |   |                    |   |                   |   |   |   |   |   |   |

|                   |   |   |      |   |      |   |    | After one   |   |   | After three |   |   |       |    |
|------------------------|--------|--------|-----------|--------|-----------|--------|---------|-------------|--------|--------|-------------|--------|--------|------------|---------|
|                   |   |   |      |   | Less than |   |    | year to     |   |   | years to    |   |   | More than  |    |
| (dollars in thousands) |   | Total  |      |   | one year  |   |    | three years |   |   | five years  |   |   | five years |    |
|                   |   |   |      |   |      |   |    |        |   |   |        |   |   |       |    |
| Loan commitments       |   | $      | 1,410,737 |   |      | $      | 718,572 |        |   | $      | 198,592     |   |   | $          | 99,954  |   |   | $ | 393,619 |   |
| Letters of credit      |   |   | 150,504   |   |      |   | 110,784 |        |   |   | 35,669      |   |   |       | 1,390   |   |   |   | 2,661 |   |
| Total                  |   | $      | 1,561,241 |   |      | $      | 829,356 |        |   | $      | 234,261     |   |   | $          | 101,344 |   |   | $ | 396,280 |   |

----

| · | Timing differences between contractual maturities of assets and liabilities (“repricing gap”),                                                                                |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Risk that assets will repay or customers withdraw prior to contractual maturity (“prepayments”),                                                                              |
| · | Changes in yields and the shape of the yield curve (“yield curve risk”), and                                                                                                  |
| · | Timing of changes in interest rates – the time period it takes for one interest rate index to change compared to another, given changes in market conditions (“basis risk”). |

| · | Changes to interest rates offered on products,                                    |
|--------|----------------------------------------------------------------------------------------|
| · | Changes to maturity terms offered on products,                                    |
| · | Changes to types of products offered, and/or                                      |
| · | Use of wholesale products such as advances from the FHLB or interest rate swaps.  |

----

|                                                                                           |   | Repricing Periods |       |
|------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                           |   |              |       |   | Three Months |   |   | One Year |   |   |   |   |
|                                                                                           |   | Within            |       |   | Through |   |   | Through |   |   | Over |   |
| (dollars in thousands)                                                                         |   | Three Months      |       |   | One Year |   |   | Five Years |   |   | 5 Years |   |
| Interest-earning assets:                                                                       |   |              |       |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits at banks                                                             |   | $                 | 392,337    |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Investment securities and other securities                                                     |   |              | 133,126    |   |   |   | 299,066 |   |   |   | 519,911 |   |   |   | 1,283,674 |   |
| Loans and leases (1)                                                                           |   |              | 2,245,125  |   |   |   | 772,046 |   |   |   | 1,821,010 |   |   |   | 406,965 |   |
| Total interest-earning assets                                                                  |   |              | 2,770,588  |   |   |   | 1,071,112 |   |   |   | 2,340,921 |   |   |   | 1,690,639 |   |
| Cumulative total interest-earning assets                                                       |   |              | 2,770,588  |   |   |   | 3,841,700 |   |   |   | 6,182,621 |   |   |   | 7,873,260 |   |
|                                                                                           |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                  |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non maturity deposits                                                                          |   |              | 3,241,154  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Time deposits                                                                                  |   |              | 500,206    |   |   |   | 830,554 |   |   |   | 525,864 |   |   |   | 916 |   |
| Borrowed funds                                                                                 |   |              | 537,700    |   |   |   | 11,166 |   |   |   | 376,938 |   |   |   | 404,352 |   |
| Subordinated debt                                                                              |   |              | 77,321     |   |   |   | - |   |   |   | - |   |   |   | 65,510 |   |
| Total interest-bearing liabilities                                                             |   |              | 4,356,381  |   |   |   | 841,720 |   |   |   | 902,802 |   |   |   | 470,778 |   |
| Cumulative total interest-bearing liabilities                                                  |   | $                 | 4,356,381  |   |   | $ | 5,198,101 |   |   | $ | 6,100,903 |   |   | $ | 6,571,681 |   |
|                                                                                           |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Interest-earning assets less interest -bearing liabilities |   |              | (1,585,793 | ) |   |   | 229,392 |   |   |   | 1,438,119 |   |   |   | 1,219,861 |   |
|                                                                                           |   |              |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative interest-rate sensitivity gap                                                       |   | $                 | (1,585,793 | ) |   | $ | (1,356,401 | ) |   | $ | 81,718 |   |   | $ | 1,301,579 |   |

|   | (1) | Adjustable rate loans are included in the period in which interest rates are next scheduled to adjust rather than in the period in which they are due.  Fixed rate loans are included in the period in which they are scheduled to be repaid and are adjusted to take into account estimated prepayments based upon assumptions estimating the expected prepayments in the prevailing interest rate environment.  The table assumes prepayments and scheduled principal amortization of fixed rate loans and mortgage-backed securities, and assumes that adjustable-rate mortgages will reprice at contractual repricing intervals.  There has been no adjustment for the impact of future commitments and loans in process. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (dollars in thousands) |   |                          |   |                          |   |   |
|------------------------|--------|-------------------------------|--------|-------------------------------|--------|--------|
| Change in              |   | March 31, 2011                |   | March 31, 2010                |
| Interest Rates         |   | Change in Net Interest Income |   | Change in Net Interest Income |
| (in basis points)      |   |                          |   |                          |   |   |   |   |   |   |   |   |
| + 300                  |   |                          | $      | 18,113                        |   |   |   | 6.88 | % |   | $ | 20,157 |   |   |   | 7.12 | % |
| + 200                  |   |                          |   | 11,621                        |   |   |   | 4.42 | % |   |   | 12,416 |   |   |   | 4.38 | % |
| + 100                  |   |                          |   | 5,090                         |   |   |   | 1.93 | % |   |   | 5,328 |   |   |   | 1.88 | % |
| - 100                  |   |                          |   | 829                           |   |   |   | 0.31 | % |   |   | (6,884 | ) |   |   | -2.43 | % |
| - 200                  |   |                          |   | (14,293                       | )      |   |   | -5.43 | % |   |   | (18,600 | ) |   |   | -6.57 | % |

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Item 

Item 

Item 

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|    | · | New requirements on banking, derivative and investment activities, including the repeal of the prohibition on the payment of interest on business demand accounts, debit card interchange fee requirements, and the “Volcker Rule,” which restricts the sponsorship, or the acquisition or retention of ownership interests, in private equity funds. |
|--------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                                                                                                                                              |
|         | · | The creation of a new Bureau of Consumer Financial Protection with supervisory authority, including the power to conduct examinations and take enforcement actions with respect to financial institutions with assets of $10 billion or more.                                                                                                                     |
|         |   |                                                                                                                                                                                                                                                                                                                                                              |
|         | · | The creation of a Financial Stability Oversight Council with authority to identify institutions and practices that might pose a systemic risk.                                                                                                                                                                                                                    |
|         |   |                                                                                                                                                                                                                                                                                                                                                              |
|         | · | Provisions affecting corporate governance and executive compensation of all companies subject to the reporting requirements of the Securities and Exchange Act of 1934, as amended.                                                                                                                                                                               |
|         |   |                                                                                                                                                                                                                                                                                                                                                              |
|         | · | A provision that would broaden the base for FDIC insurance assessments.                                                                                                                                                                                                                                                                                           |
|         |   |                                                                                                                                                                                                                                                                                                                                                              |
|         | · | A provision that would require bank regulators to set minimum capital levels for bank holding companies that are as strong as those required for their insured depository subsidiaries, subject to a grandfather clause for holding companies with less than $15 billion in assets as of December 31, 2009.                                                       |

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----

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|    | · | National Penn’s branding and marketing initiatives may not be effective in building name recognition and customer awareness of National Penn’s products and services.                                                                                                                                                                                                             |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | National Penn may be unable to differentiate itself from its competitors by a higher level of customer service, as intended by its business strategy and other marketing initiatives.                                                                                                                                                                                                         |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | Expansion of National Penn’s product and service offerings may take longer, and may meet with more effective competitive resistance from others already offering such products and services, than expected.  Additionally, new product development by new and existing competitors may be more effective, and take place more quickly, than expected.                         |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | National Penn may be unable to attract, motivate, and/or retain key executives and other key personnel due to intense competition for such persons, National Penn’s cost saving strategies, increased governmental oversight or otherwise.                                                                                                                                              |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | Growth and profitability of National Penn’s non-interest income or fee income may be less than expected, particularly as a result of current financial market conditions.                                                                                                                                                                                                               |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | General economic or business conditions, either nationally or in the regions in which National Penn does business, may continue to deteriorate or be more prolonged than expected, resulting in, among other things, a deterioration in credit quality, a reduced demand for credit, or a decision by National Penn to reevaluate staffing levels or to divest one or more lines of business. |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | In the current environment of increased investor activism, including hedge fund investment policies and practices, shareholder concerns or actions may require increased management/board attention, efforts and commitments, which could require a shift in focus from business development and operations.                                                                                  |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | Current stresses in the financial markets may inhibit National Penn's ability to access the capital markets or obtain financing on favorable terms.                                                                                                                                                                                                                                 |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | Repurchase obligations with respect to real estate mortgages sold in the secondary market could adversely affect National Penn’s earnings.                                                                                                                                                                                                                                              |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |
|         | · | Changes in consumer spending and savings habits could adversely affect National Penn’s business.                                                                                                                                                                                                                                                                                        |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                          |

----

|   | · | Negative publicity with respect to any National Penn product or service, employee, director or other associated individual or entity whether legally justified or not, could adversely affect National Penn’s reputation and business. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                         |
|   | · | National Penn may be unable to successfully manage the foregoing and other risks and to achieve its current short-term and long-term business plans and objectives.                                                                          |
|   |   |                                                                                                                                                                                                                                         |

Item 

Item 

Item 

Item 

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Item 

| 3.1  | Articles of Incorporation, as amended, of National Penn Bancshares, Inc. (Incorporated by reference to Exhibit 3.1 to National Penn’s Report on Form 8-K dated April 24, 2009 as filed on April 24, 2009.)                                                                       |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2  | Bylaws, as amended, of National Penn Bancshares, Inc. (Incorporated by reference to  Exhibit 3.1 to National Penn’s Report on Form 8-K dated March 24, 2010, as filed on  March 29, 2010.)                                                                   |
| 3.3  | Bylaws, as amended of National Penn Bank (Incorporated by reference to Exhibit 3.2 to National Penn’s Report on Form 8-K dated December 2, 2008, as filed on December 2, 2008.)                                                                                                  |
| 10.1 | Investment Agreement dated as of October 5, 2010, by and between National Penn Bancshares, Inc. and Warburg Pincus Private Equity X, L.P. (Incorporated by reference to Exhibit 10.1 to National Penn’s Report on Form 8-K dated October 6, 2010, as filed on October 6, 2010.)  |
| 10.2 | Amendatory Agreement dated as of January 25, 2011, among National Penn Bancshares, Inc., National Penn Bank and H. Anderson Ellsworth. *                                                                                                                                               |
| 10.3 | Amendatory Agreement dated as of January 26, 2011, among National Penn Bancshares, Inc., National Penn Bank and Keene S. Turner. *                                                                                                                                                     |
| 10.4 | National Penn Bancshares, Inc.  Executive Incentive Plan (Amended and Restated Effective January 1, 2011.) (Incorporated by reference to Exhibit 10.1 to National Penn’s Report on Form 8-K dated January 24, 2011, as filed on January 27, 2011.) *                   |
| 10.5 | National Penn Bancshares, Inc. Executive Incentive Plan/Performance Goals – Plan Year 2011. (Incorporated by reference to Exhibit 10.2 to National Penn’s Report on Form 8-K dated  January 24, 2011, as filed on January 27, 2011.) *                           |
| 10.6 | Amendment to 2010 Restricted Stock Agreement between National Penn Bancshares, Inc. and Sandra L. Bodnyk dated March 8, 2011. *                                                                                                                                                        |
| 10.7 | Amendment to 2010 Restricted Stock Agreement between National Penn Bancshares, Inc. and Michael J. Hughes dated March 8, 2011. *                                                                                                                                                       |
| 10.8 | Letter Agreement between National Penn Bancshares, Inc. and the United States Department of the Treasury. (Incorporated by reference to Exhibit 10.1 to National Penn’s Report on Form 8-K dated March 16, 2011, as filed on March 16, 2011.)                                    |
| 10.9 | Letter Agreement between National Penn Bancshares, Inc. and the United States Department of the Treasury. (Incorporated by reference to Exhibit 10.1 to National Penn’s Report on Form 8-K dated April 13, 2011, as filed on April 13, 2011.)                                    |
| 31.1 | Certification of President and Chief Executive Officer of National Penn Bancshares, Inc., pursuant to Commission Rule 13a-14(a) and Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                     |
| 31.2 | Certification of Chief Financial Officer of National Penn Bancshares, Inc., pursuant to Commission Rule 13a-14(a) and Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                   |
| 32.1 | Certification of President and Chief Executive Officer of National Penn Bancshares, Inc., pursuant to Commission Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Furnished, not filed.)                   |
| 32.2 | Certification of  Chief Financial Officer of National Penn Bancshares, Inc., pursuant to Commission Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Furnished, not filed.)                      |

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SIGNATURES

|   |              | NATIONAL PENN BANCSHARES, INC. |
|--------|-------------------|--------------------------------|
|   |              | (Registrant)                   |
|   |              |                           |
| Date:  | May 9, 2011       |                           | By: | /s/ Scott V. Fainor |
|   |              |                           |   | Name: | Scott V. Fainor |
|   |              |                           |   | Title: | President and Chief Executive Officer |
|   |              |                           |   |   |   |
| Date:  |  May 9, 2011 |                           | By: | /s/ Michael J. Hughes |
|   |              |                           |   | Name: | Michael J. Hughes |
|   |              |                           |   | Title: | Chief Financial Officer |

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