|                                                                       | x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE  |
|----------------------------------------------------------------------------|--------|----------------------------------------------------------|
|                                                                       |   | SECURITIES EXCHANGE ACT OF 1934                          |
|                                                                       |   |                                                     |
|   For the quarterly period ended June 30, 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 x  No  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 x    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 August 4, 2011 |
|-----------------------------------|--------|-------------------------------|
| Common Stock, no stated par value |   | 151,681,748 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 | 29 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 3.             | Quantitative and Qualitative Disclosures About |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                | Market Risk                                                                      | 46 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 4.             | Controls and Procedures                                                                      | 46 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
| Part II - Other Information.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 1.             | Legal Proceedings                                                                      | 47 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item  1A. | Risk Factors | 47 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 2.             | Unregistered Sales of Equity Securities |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                | and Use of  Proceeds                                                                      | 54 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 3.             | Defaults Upon Senior Securities                                                                      | 54 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 4.             | [Removed and Reserved by the SEC] | N/A |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 5.             | Other Information                                                                      | 54 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Item 6.             | Exhibits                                                                      | 55 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
| Signatures                                                                                                       | 56                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |   |
| Exhibits                                                                                                         | 57                  |

----

Item 

|                                                                                                   |   | Unaudited |      |   |         |   |
|--------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|--------|
| (dollars in thousands)                                                                                 |   | June 30,  |      |   | December 31, |   |
|                                                                                                   |   | 2011      |      |   | 2010         |   |
| ASSETS                                                                                                 |   |      |      |   |         |   |
| Cash and due from banks                                                                                |   | $         | 105,918   |   |         | $      | 90,283 |   |
| Interest-earning deposits with banks                                                                   |   |      | 513,132   |   |         |   | 612,099 |   |
| Total cash and cash equivalents                                                                        |   |      | 619,050   |   |         |   | 702,382 |   |
|                                                                                                   |   |      |      |   |         |   |   |   |
| Investment securities available for sale, at fair value                                                |   |      | 1,696,682 |   |         |   | 1,632,118 |   |
| Investment securities held to maturity                                                                 |   |      |      |   |         |   |   |   |
| (Fair value $529,162 and $537,932 for 2011 and 2010, respectively)                                     |   |      | 518,578   |   |         |   | 546,957 |   |
| Other securities                                                                                       |   |      | 75,308    |   |         |   | 80,615 |   |
| Loans held for sale                                                                                    |   |      | 8,852     |   |         |   | 12,785 |   |
| Loans and leases, net of allowance for loan and lease losses of $137,909 and $150,054                  |   |      |      |   |
| for 2011 and 2010, respectively                                                                        |   |      | 5,032,165 |   |         |   | 5,163,884 |   |
| Premises and equipment, net                                                                            |   |      | 103,017   |   |         |   | 105,483 |   |
| Accrued interest receivable                                                                            |   |      | 31,862    |   |         |   | 33,829 |   |
| Bank owned life insurance                                                                              |   |      | 136,606   |   |         |   | 134,154 |   |
| Other real estate owned and other repossessed assets                                                   |   |      | 8,407     |   |         |   | 7,453 |   |
| Goodwill                                                                                               |   |      | 258,279   |   |         |   | 258,279 |   |
| Other intangible assets, net                                                                           |   |      | 18,970    |   |         |   | 22,217 |   |
| Unconsolidated investments under the equity method                                                     |   |      | 12,327    |   |         |   | 11,482 |   |
| Other assets                                                                                           |   |      | 113,038   |   |         |   | 132,982 |   |
| TOTAL ASSETS                                                                                           |   | $         | 8,633,141 |   |         | $      | 8,844,620 |   |
|                                                                                                   |   |      |      |   |         |   |   |   |
| LIABILITIES                                                                                            |   |      |      |   |         |   |   |   |
| Non-interest bearing deposits                                                                          |   | $         | 839,811   |   |         | $      | 808,835 |   |
| Interest bearing deposits                                                                              |   |      | 5,104,350 |   |         |   | 5,250,338 |   |
| Total deposits                                                                                         |   |      | 5,944,161 |   |         |   | 6,059,173 |   |
|                                                                                                   |   |      |      |   |         |   |   |   |
| Securities sold under repurchase agreements                                                            |   |      | 738,628   |   |         |   | 734,455 |   |
| Short-term borrowings                                                                                  |   |      | 6,390     |   |         |   | 10,000 |   |
| Federal Home Loan Bank advances                                                                        |   |      | 627,332   |   |         |   | 703,761 |   |
| Subordinated debentures                                                                                |   |      | 143,261   |   |         |   | 142,780 |   |
| Accrued interest payable and other liabilities                                                         |   |      | 39,856    |   |         |   | 57,014 |   |
| TOTAL LIABILITIES                                                                                      |   |      | 7,499,628 |   |         |   | 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:  June 30, 2011 - 151,660,444; December 31, 2010 - 136,792,414 |   |      | 1,379,690 |   |         |   | 1,292,342 |   |
| Accumulated deficit                                                                                    |   |      | (258,125  | )      |         |   | (293,940 | ) |
| Accumulated other comprehensive income (loss)                                                          |   |      | 11,948    |   |         |   | (9,406 | ) |
| TOTAL SHAREHOLDERS' EQUITY                                                                             |   |      | 1,133,513 |   |         |   | 1,137,437 |   |
|                                                                                                   |   |      |      |   |         |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                             |   | $         | 8,633,141 |   |         | $      | 8,844,620 |   |
|                                                                                                   |   |      |      |   |         |   |   |   |
| The accompanying notes are an integral part of these financial statements.                             |   |      |      |   |         |

----

|                                                                       |   | Three Months   |   |   | Six Months     |   |
|----------------------------------------------------------------------------|--------|----------------|--------|--------|----------------|--------|
| (dollars in thousands, except per share data)                              |   | Ended June 30, |   |   | Ended June 30, |   |
|                                                                       |   | 2011           |   |   | 2010           |   |   | 2011 |   |   | 2010 |   |
| INTEREST INCOME                                                            |   |           |   |   |           |   |   |   |   |   |   |   |
| Loans and leases, including fees                                           |   | $              | 67,553 |   |           | $      | 77,830 |   |   | $ | 136,781 |   |   | $ | 156,484 |   |
| Investment securities                                                      |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Taxable                                                                    |   |           | 11,552 |   |           |   | 11,457 |   |   |   | 22,909 |   |   |   | 22,555 |   |
| Tax-exempt                                                                 |   |           | 8,401  |   |           |   | 8,803 |   |   |   | 16,894 |   |   |   | 17,641 |   |
| Federal funds sold and deposits in banks                                   |   |           | 234    |   |           |   | 218 |   |   |   | 514 |   |   |   | 465 |   |
| Total interest income                                                      |   |           | 87,740 |   |           |   | 98,308 |   |   |   | 177,098 |   |   |   | 197,145 |   |
| INTEREST EXPENSE                                                           |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                   |   |           | 10,974 |   |           |   | 16,464 |   |   |   | 22,381 |   |   |   | 34,745 |   |
| Securities sold under repurchase agreements                                |   |           | 2,346  |   |           |   | 2,808 |   |   |   | 4,741 |   |   |   | 5,682 |   |
| Short-term borrowings                                                      |   |           | -      |   |           |   | - |   |   |   | - |   |   |   | - |   |
| Federal Home Loan Bank advances                                            |   |           | 7,039  |   |           |   | 8,010 |   |   |   | 14,256 |   |   |   | 16,063 |   |
| Subordinated debentures                                                    |   |           | 2,386  |   |           |   | 2,383 |   |   |   | 4,755 |   |   |   | 4,753 |   |
| Total interest expense                                                     |   |           | 22,745 |   |           |   | 29,665 |   |   |   | 46,133 |   |   |   | 61,243 |   |
| Net interest income                                                        |   |           | 64,995 |   |           |   | 68,643 |   |   |   | 130,965 |   |   |   | 135,902 |   |
| Provision for loan and lease losses                                        |   |           | 3,000  |   |           |   | 25,000 |   |   |   | 13,000 |   |   |   | 57,500 |   |
| Net interest income after provision for loan and lease losses              |   |           | 61,995 |   |           |   | 43,643 |   |   |   | 117,965 |   |   |   | 78,402 |   |
| NON-INTEREST INCOME                                                        |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Wealth management                                                          |   |           | 5,856  |   |           |   | 7,238 |   |   |   | 11,780 |   |   |   | 14,339 |   |
| Service charges on deposit accounts                                        |   |           | 4,616  |   |           |   | 5,446 |   |   |   | 9,280 |   |   |   | 10,787 |   |
| Insurance commissions and fees                                             |   |           | 3,520  |   |           |   | 3,639 |   |   |   | 6,741 |   |   |   | 7,410 |   |
| Cash management and electronic banking fees                                |   |           | 4,645  |   |           |   | 4,614 |   |   |   | 9,016 |   |   |   | 8,772 |   |
| Mortgage banking                                                           |   |           | 1,014  |   |           |   | 1,231 |   |   |   | 2,094 |   |   |   | 2,384 |   |
| Bank owned life insurance                                                  |   |           | 1,233  |   |           |   | 1,280 |   |   |   | 2,453 |   |   |   | 3,263 |   |
| Equity in undistributed net earnings of unconsolidated investments         |   |           | 116    |   |           |   | 537 |   |   |   | 1,816 |   |   |   | 700 |   |
| Gain on pension plan curtailment                                           |   |           | -      |   |           |   | - |   |   |   | - |   |   |   | 4,066 |   |
| Other operating income                                                     |   |           | 1,818  |   |           |   | 2,771 |   |   |   | 3,873 |   |   |   | 5,504 |   |
| Net (losses) gains from fair value changes on subordinated debentures      |   |           | (430   | )      |           |   | 1,543 |   |   |   | (481 | ) |   |   | (5,718 | ) |
| Net gains (losses) on sales of investment securities                       |   |           | -      |   |           |   | 214 |   |   |   | - |   |   |   | 214 |   |
|                                                                       |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| 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                                                  |   |           | 22,388 |   |           |   | 28,513 |   |   |   | 46,572 |   |   |   | 51,087 |   |
|                                                                       |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| NON-INTEREST EXPENSE                                                       |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Salaries, wages and employee benefits                                      |   |           | 30,408 |   |           |   | 30,999 |   |   |   | 61,857 |   |   |   | 60,428 |   |
| Net premises and equipment                                                 |   |           | 6,787  |   |           |   | 7,209 |   |   |   | 14,059 |   |   |   | 15,207 |   |
| Goodwill impairment                                                        |   |           | -      |   |           |   | 8,250 |   |   |   | - |   |   |   | 8,250 |   |
| FDIC insurance                                                             |   |           | 2,726  |   |           |   | 4,056 |   |   |   | 6,183 |   |   |   | 8,153 |   |
| Other operating expenses                                                   |   |           | 14,200 |   |           |   | 16,049 |   |   |   | 28,859 |   |   |   | 32,182 |   |
| Total non-interest expense                                                 |   |           | 54,121 |   |           |   | 66,563 |   |   |   | 110,958 |   |   |   | 124,220 |   |
| Income (loss) before income taxes                                          |   |           | 30,262 |   |           |   | 5,593 |   |   |   | 53,579 |   |   |   | 5,269 |   |
| Income tax expense (benefit)                                               |   |           | 7,054  |   |           |   | 9,132 |   |   |   | 11,591 |   |   |   | 4,882 |   |
| NET  INCOME                                                      |   |           | 23,208 |   |           |   | (3,539 | ) |   |   | 41,988 |   |   |   | 387 |   |
| Preferred dividends and accretion of preferred discount                    |   |           | -      |   |           |   | (2,005 | ) |   |   | (1,691 | ) |   |   | (4,010 | ) |
| Accelerated accretion from redemption of preferred stock                   |   |           | -      |   |           |   | - |   |   |   | (1,452 | ) |   |   | - |   |
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS                                |   | $              | 23,208 |   |           | $      | (5,544 | ) |   | $ | 38,845 |   |   | $ | (3,623 | ) |
| PER SHARE OF COMMON STOCK                                                  |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings available to common shareholders                            |   | $              | 0.15   |   |           | $      | (0.04 | ) |   | $ | 0.26 |   |   | $ | (0.03 | ) |
| Diluted earnings available to common shareholders                          |   | $              | 0.15   |   |           | $      | (0.04 | ) |   | $ | 0.26 |   |   | $ | (0.03 | ) |
| Dividends paid in cash                                                     |   | $              | 0.01   |   |           | $      | 0.01 |   |   | $ | 0.02 |   |   | $ | 0.02 |   |
|                                                                       |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| 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                                                                 |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        | 41,988   |   |   |   |   |   |   |   | 41,988 |   |
| Other comprehensive income, net of taxes                                   |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        | 21,354   |   |   |   | 21,354 |   |
| Total comprehensive income                                                 |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        | 41,988   |   |   |   | 21,354 |   |   |   | 63,342 |   |
|                                                                       |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        |     |   |   |   |   |   |   |   |   |   |
| Cash dividends declared common                                             |   |   |        |   |      |     |      |        |   |   |          | (3,031 | )                                                                              |        |     |   |   |   |   | (3,031 | ) |
| Cash dividends declared preferred                                          |   |   |        |   |      |     |      |        |   |   |          | (1,583 | )                                                                              |        |     |   |   |   |   | (1,583 | ) |
| Shares issued under share-based plans,                                     |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        |     |   |   |   |   |   |   |
| net of excess tax benefits                                                 |   |   | 537,451     |   |      |     | 3,805     |        |   |   |          |   |                                                                           |        |     |   |   |   |   |   |   |   | 3,805 |   |
| 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 | ) |
| Repurchase of common stock warrants                                        |   |   |        | (1,000 | )         |     |      |        |   |   |          |   |                                                                           |        |     |   |   |   |   | (1,000 | ) |
|                                                                       |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        |     |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2011                                                   |   |   | 151,660,444 |   |      | $        | 1,379,690 |        |   | $      | -             |   |                                                                           | $           | (258,125 | )      |   | $      | 11,948 |   |   | $ | 1,133,513 |   |
|                                                                       |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        |     |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these financial statements. |   |   |        |   |      |     |      |        |   |
|                                                                       |   |   |        |   |      |     |      |        |   |   |          |   |                                                                           |        |     |   |   |   |   |   |   |   |   |   |

----

|                                                                                |   |                      |     |   |   |   |
|-------------------------------------------------------------------------------------|--------|---------------------------|----------|--------|--------|--------|
| (dollars in thousands)                                                              |   | Six Months Ended June 30, |     |
|                                                                                |   | 2011                      |     |   | 2010   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                |   |                      |     |   |   |   |
| Net income                                                                          |   | $                         | 41,988   |   |   | $      | 387 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:   |   |                      |     |   |   |   |   |   |
| Provision for loan and lease losses                                                 |   |                      | 13,000   |   |   |   | 57,500 |   |
| Share-based compensation expense                                                    |   |                      | 2,182    |   |   |   | 895 |   |
| Depreciation and amortization                                                       |   |                      | 8,242    |   |   |   | 8,111 |   |
| Amortization (accretion) of premiums and discounts on investment securities, net    |   |                      | 948      |   |   |   | (4 | ) |
| Gains on investment securities, net                                                 |   |                      | -        |   |   |   | (214 | ) |
| (Losses) gains on equity-method investments, net of distributions                   |   |                      | (845     | )      |   |   | 85 |   |
| Loans originated for resale                                                         |   |                      | (59,960  | )      |   |   | (84,511 | ) |
| Proceeds from sale of loans                                                         |   |                      | 65,332   |   |   |   | 87,483 |   |
| Gain on sale of loans, net                                                          |   |                      | (1,439   | )      |   |   | (888 | ) |
| (Gain) loss on sale of other real estate owned, net                                 |   |                      | (7       | )      |   |   | 433 |   |
| Gain on sale of bank buildings                                                      |   |                      | -        |   |   |   | (223 | ) |
| Increase in fair value of subordinated debtentures                                  |   |                      | 481      |   |   |   | 5,718 |   |
| Impairment losses on investment securities                                          |   |                      | -        |   |   |   | 634 |   |
| Bank-owned life insurance policy income                                             |   |                      | (2,453   | )      |   |   | (3,263 | ) |
| Gain on pension plan curtailment                                                    |   |                      | -        |   |   |   | (4,066 | ) |
| Goodwill impairment                                                                 |   |                      | -        |   |   |   | 8,250 |   |
| Changes in assets and liabilities:                                                  |   |                      |     |   |   |   |   |   |
| Decrease in accrued interest receivable                                             |   |                      | 1,967    |   |   |   | 820 |   |
| Decrease in accrued interest payable                                                |   |                      | (4,260   | )      |   |   | (1,717 | ) |
| Decrease  in other assets                                                 |   |                      | 14,024   |   |   |   | 5,329 |   |
| (Decrease) increase in other liabilities                                            |   |                      | (10,915  | )      |   |   | 6,113 |   |
| Net cash provided by operating activities                                           |   |                      | 68,285   |   |   |   | 86,872 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                |   |                      |     |   |   |   |   |   |
| Proceeds from maturities and repayments of investment securities held to maturity   |   |                      | 28,087   |   |   |   | 22,141 |   |
| Proceeds from sales of investment securities available for sale                     |   |                      | -        |   |   |   | 6,668 |   |
| Purchase of investment securites held to maturity                                   |   |                      | -        |   |   |   | (50 | ) |
| Proceeds from maturities and repayments of investment securities available for sale |   |                      | 150,289  |   |   |   | 213,232 |   |
| Purchase of investment securities available for sale                                |   |                      | (184,263 | )      |   |   | (259,560 | ) |
| Proceeds from sale of loans previously held for investment                          |   |                      | 2,764    |   |   |   | 10,973 |   |
| Net decrease in loans and leases                                                    |   |                      | 114,157  |   |   |   | 195,923 |   |
| Purchases of premises and equipment                                                 |   |                      | (2,064   | )      |   |   | (2,212 | ) |
| Claims from bank owned life insurance                                               |   |                      | -        |   |   |   | 2,082 |   |
| Proceeds from sale of bank buildings                                                |   |                      | -        |   |   |   | 911 |   |
| Proceeds from the sale of other real estate owned                                   |   |                      | 375      |   |   |   | 4,354 |   |
| Net cash provided by investing activities                                           |   |                      | 109,345  |   |   |   | 194,462 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                |   |                      |     |   |   |   |   |   |
| Net (decrease) increase in core deposits                                            |   |                      | (378     | )      |   |   | 54,967 |   |
| Net decrease in certificates of deposit                                             |   |                      | (114,634 | )      |   |   | (297,614 | ) |
| Net increase in securities sold under repurchase agreements                         |   |                      | 4,173    |   |   |   | 14,991 |   |
| Net (decrease) increase in short-term borrowings                                    |   |                      | (3,610   | )      |   |   | 100 |   |
| Repayments of FHLB advances                                                         |   |                      | (75,963  | )      |   |   | (49,259 | ) |
| Proceeds from shares issued under share-based plans                                 |   |                      | 1,132    |   |   |   | 230 |   |
| Excess tax expense on share-based plans                                             |   |                      | (221     | )      |   |   | (28 | ) |
| Issuance of shares under dividend reinvestment plan                                 |   |                      | 548      |   |   |   | 622 |   |
| Issuance of common stock in private placement                                       |   |                      | 84,543   |   |   |   | - |   |
| Repayment of Series B Preferred stock                                               |   |                      | (150,000 | )      |   |   | - |   |
| Repurchase of common stock warrants                                                 |   |                      | (1,000   | )      |   |   | - |   |
| Cash dividends, common                                                              |   |                      | (3,031   | )      |   |   | (2,509 | ) |
| Cash dividends, preferred                                                           |   |                      | (2,521   | )      |   |   | (3,750 | ) |
| Net cash used in financing activities                                               |   |                      | (260,962 | )      |   |   | (282,250 | ) |
| Net decrease in cash and cash equivalents                                           |   |                      | (83,332  | )      |   |   | (916 | ) |
| Cash and cash equivalents at beginning of year                                      |   |                      | 702,382  |   |   |   | 603,257 |   |
| Cash and cash equivalents at end of period                                          |   | $                         | 619,050  |   |   | $      | 602,341 |   |
|                                                                                |   |                      |     |   |   |   |   |   |

----

|                   |   | Six Months Ended |   |
|------------------------|--------|------------------|--------|
| (dollars in thousands) |   | June 30,         |   |
|                   |   | 2011             |   |   | 2010 |   |
| Interest               |   | $                | 50,393 |   |   | $ | 62,961 |   |
| Taxes                  |   |             | 13,703 |   |   |   | - |   |
|                   |   |             |   |   |   |   |   |   |

|                                                                                                                               |   | Six Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|
| (dollars in thousands)                                                                                                             |   | June 30,         |   |
|                                                                                                                               |   | 2011             |   |   | 2010 |   |
| Transfers of loans to other real estate1                                                                                      |   | $                | 1,798  |   |   | $ | 9,539 |   |
| Other than temporary impairment on investment securities                                                                           |   |             | -      |   |   |   | 634 |   |
| Dividends accrued not paid on Series B Preferred Stock                                                                             |   |             | -      |   |   |   | 938 |   |
|                                                                                                                               |   |             |   |   |   |   |   |   |
| 1  $0.9 million and $4.8 million of OREO was disposed of during the periods ending June 30, 2011 and 2010, respectively. |   |
|                                                                                                                          |   |             |   |   |   |   |   |   |
|                                                                                                                               |   |             |   |   |   |   |   |   |

----

| (dollars in thousands, except per share data )     |   | Three months ended June 30, |        |   | Six months ended June 30, |   |
|----------------------------------------------------|--------|-----------------------------|-------------|--------|---------------------------|--------|
|                                               |   | 2011                        |        |   | 2010                      |   |   | 2011 |   |   | 2010 |   |
| Income for EPS:                                    |   |                        |        |   |                      |   |   |   |   |   |   |   |
| Net income (loss) available to common shareholders |   | $                           | 23,208      |   |                      | $      | (5,544 | ) |   | $ | 38,845 |   |   | $ | (3,623 | ) |
|                                               |   |                        |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Calculation of shares:                             |   |                        |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average basic shares                      |   |                        | 151,601,052 |   |                      |   | 126,045,667 |   |   |   | 151,034,207 |   |   |   | 125,960,351 |   |
| Dilutive effect of:                                |   |                        |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    Share-based compensation         |   |                        | 234,350     |   |                      |   | - |   |   |   | 269,390 |   |   |   | - |   |
|    Warrants                         |   |                        |        |   |                      |   | - |   |   |   | - |   |   |   | - |   |
| Weighted average fully diluted shares              |   |                        | 151,835,402 |   |                      |   | 126,045,667 |   |   |   | 151,303,597 |   |   |   | 125,960,351 |   |
|                                               |   |                        |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                         |   |                        |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                              |   | $                           | 0.15        |   |                      | $      | (0.04 | ) |   | $ | 0.26 |   |   | $ | (0.03 | ) |
| Diluted                                            |   | $                           | 0.15        |   |                      | $      | (0.04 | ) |   | $ | 0.26 |   |   | $ | (0.03 | ) |
|                                               |   |                        |        |   |                      |   |   |   |   |   |   |   |   |   |   |   |

|           |   | Three months ended June 30, |      |   | Six months ended June 30, |   |
|----------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|           |   | 2011                        |      |   | 2010                      |   |   | 2011 |   |   | 2010 |   |
|           |   |                        |      |   |                      |   |   |   |   |   |   |   |
| Stock Options  |   |                        | 3,494,093 |   |                      |   | 4,534,699 |   |   |   | 3,354,531 |   |   |   | 4,453,495 |   |
| Exercise Price |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Low            |   | $                           | 5.85      |   |                      | $      | 5.60 |   |   | $ | 5.85 |   |   | $ | 5.60 |   |
| High           |   | $                           | 21.49     |   |                      | $      | 21.49 |   |   | $ | 21.49 |   |   | $ | 21.49 |   |

----

|                                                   |   |      | June 30, 2011 |   |
|--------------------------------------------------------|--------|-----------|---------------|--------|
|                                                   |   |      |          |   |   | Gross |   |   | Gross |   |   |   |   |
| (dollars in thousands)                                 |   | Amortized |          |   | unrealized |   |   | unrealized |   |   | Fair |   |
|                                                   |   |      | cost          |   |   | gains |   |   | losses |   |   | value |   |
| Available for Sale                                     |   |      |          |   |   |   |   |   |   |   |   |   |
| U.S. Treasury securities                               |   | $         | 19,979        |   |   | $ | 17 |   |   | $ | - |   |   | $ | 19,996 |   |
| U.S. Government agency securities                      |   |      | 4,996         |   |   |   | 81 |   |   |   | - |   |   |   | 5,077 |   |
| State and municipal bonds                              |   |      | 334,723       |   |   |   | 7,795 |   |   |   | (7,657 | ) |   |   | 334,861 |   |
| Agency mortgage-backed securities/                     |   |      | 1,267,621     |   |   |   | 34,906 |   |   |   | (1,816 | ) |   |   | 1,300,711 |   |
|     collateralized mortgage obligations |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-agency collateralized mortgage obligations         |   |      | 18,632        |   |   |   | 475 |   |   |   | (84 | ) |   |   | 19,023 |   |
| Corporate securities and other                         |   |      | 13,039        |   |   |   | 136 |   |   |   | (570 | ) |   |   | 12,605 |   |
| Marketable equity securities                           |   |      | 3,759         |   |   |   | 733 |   |   |   | (83 | ) |   |   | 4,409 |   |
|     Total                               |   | $         | 1,662,749     |   |   | $ | 44,143 |   |   | $ | (10,210 | ) |   | $ | 1,696,682 |   |
|                                                   |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held to Maturity                                       |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| State and municipal bonds                              |   | $         | 426,426       |   |   | $ | 10,200 |   |   | $ | (2,623 | ) |   | $ | 434,003 |   |
| Agency mortgage-backed securities/                     |   |      | 91,083        |   |   |   | 2,974 |   |   |   | - |   |   | $ | 94,057 |   |
|   collateralized mortgage obligations             |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-agency collateralized mortgage obligations         |   |      | 1,069         |   |   |   | 33 |   |   |   | - |   |   | $ | 1,102 |   |
|    Total                                     |   | $         | 518,578       |   |   | $ | 13,207 |   |   | $ | (2,623 | ) |   | $ | 529,162 |   |
|                                                   |   |      |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                           |   | 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 |   |
|                                           |   |              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                              |   | For the six months |   |
|-----------------------------------|--------|--------------------|--------|
| (dollars in thousands)            |   | ended June 30,     |   |
|                              |   | 2011               |   |   | 2010 |   |
| Gains                             |   | $                  | -      |   |   | $ | 214 |   |
| Losses                            |   |               | -      |   |   |   | - |   |
| Net gains from sales of           |   |               |   |   |   |   |   |   |
|   investment securities |   | $                  | -      |   |   | $ | 214 |   |
|                              |   |               |   |   |   |   |   |   |

| June 30, 2011                                  |   |              |   |   |                |                |    |                |                |   |      |   |   |             |   |   |      |   |    |             |   |
|------------------------------------------------|--------|-------------------|--------|--------|---------------------|---------------------|---------|---------------------|---------------------|--------|-----------|--------|--------|------------------|--------|--------|-----------|--------|---------|------------------|--------|
|                                           |   |              |   |   | Less than 12 months |                |    | 12 months or longer |                |   | Total     |   |
| (dollars in thousands)                         |   | No. ofSecurities  |   |   | FairValue           |                |    | UnrealizedLosses    |                |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |    | UnrealizedLosses |   |
| State and municipal bonds                      |   |              | 285    |   |                | $                   | 108,863 |                |                | $      | (2,249    | )      |   | $                | 71,331 |   |      | $      | (8,031  | )                |   | $ | 180,194 |   |   | $ | (10,280 | ) |
| Agency mortgage-backed securities/             |   |              |   |   |                |                |    |                |                |   |      |   |   |             |   |   |      |   |    |             |   |   |   |   |   |
| collateralized mortgage obligations            |   |              | 44     |   |                |                | 217,650 |                |                |   | (1,809    | )      |   |             | 253    |   |      |   | (7      | )                |   |   | 217,903 |   |   |   | (1,816 | ) |
| Non-agency collateralized mortgage obligations |   |              | 4      |   |                |                | -       |                |                |   | -         |   |   |             | 2,266  |   |      |   | (84     | )                |   |   | 2,266 |   |   |   | (84 | ) |
| Corporate securities and other                 |   |              | 10     |   |                |                | 2,907   |                |                |   | (42       | )      |   |             | 3,953  |   |      |   | (528    | )                |   |   | 6,860 |   |   |   | (570 | ) |
| Total debt securities                          |   |              | 343    |   |                |                | 329,420 |                |                |   | (4,100    | )      |   |             | 77,803 |   |      |   | (8,650  | )                |   |   | 407,223 |   |   |   | (12,750 | ) |
| Marketable equity securities                   |   |              | 3      |   |                |                | 639     |                |                |   | (83       | )      |   |             | -      |   |      |   | -       |             |   |   | 639 |   |   |   | (83 | ) |
| Total                                          |   |              | 346    |   |                | $                   | 330,059 |                |                | $      | (4,183    | )      |   | $                | 77,803 |   |      | $      | (8,650  | )                |   | $ | 407,862 |   |   | $ | (12,833 | ) |
|                                           |   |              |   |   |                |                |    |                |                |   |      |   |   |             |   |   |      |   |    |             |   |   |   |   |   |   |   |   |
|                                           |   |              |   |   |                |                |    |                |                |   |      |   |   |             |   |   |      |   |    |             |   |   |   |   |   |   |   |   |
|                                           |   |              |   |   |                |                |    |                |                |   |      |   |   |             |   |   |      |   |    |             |   |   |   |   |   |   |   |   |
| December 31, 2010                              |   |              |   |   |                |                |    |                |                |   |      |   |   |             |   |   |      |   |    |             |   |   |   |   |   |   |   |   |
|                                           |   |              |   |   |                | Less than 12 months |    |                | 12 months or longer |   |      | Total  |   |
| (dollars in thousands)                         |   | No. of Securities |   |   | FairValue           |                |    | UnrealizedLosses    |                |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |    | UnrealizedLosses |   |
| 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          |   | $                  | 27,731    |   |             | $      | 27,801 |   |   | $ | 4,148 |   |   | $ | 4,182 |   |
| Due after one through five years |   |               | 42,039    |   |             |   | 44,010 |   |   |   | - |   |   |   | - |   |
| Due after five through ten years |   |               | 200,968   |   |             |   | 211,561 |   |   |   | 30,516 |   |   |   | 31,378 |   |
| Due after ten years              |   |               | 1,388,252 |   |             |   | 1,408,901 |   |   |   | 483,914 |   |   |   | 493,602 |   |
| Marketable equity securities     |   |               | 3,759     |   |             |   | 4,409 |   |   |   | - |   |   |   | - |   |
|                             |   | $                  | 1,662,749 |   |             | $      | 1,696,682 |   |   | $ | 518,578 |   |   | $ | 529,162 |   |
|                             |   |               |      |   |             |   |   |   |   |   |   |   |   |   |   |   |

----

| (dollars in thousands) |   | June 30, |      |   | December 31, |   |
|------------------------|--------|----------|-----------|--------|--------------|--------|
|                   |   | 2011     |      |   | 2010         |   |
| Deposits               |   | $        | 859,601   |   |         | $      | 893,532 |   |
| Repurchase agreements  |   |     | 798,153   |   |         |   | 835,640 |   |
| Other                  |   |     | 47,992    |   |         |   | 126,091 |   |
|                   |   | $        | 1,705,746 |   |         | $      | 1,855,263 |   |
|                   |   |     |      |   |         |   |   |   |

----

|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |
|--------------------------------------------|--------|------------------|-----------|-----------------------|--------|-------------------------------|---------|--------|----------------------|--------|---------|------------------|--------|--------|--------|
|                                       |   | Performing       |      |                  |   |                          |    |   |                 |
| June 30, 2011                              |   | Pass Rated Loans |      | Special Mention Loans |   |    Classified Loans |    |   | Non-Performing Loans |   |    | Total Loans |   |
| (dollars in thousands)                     |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |
| Commercial and industrial loans and leases |   | $                | 2,064,154 |                  |   | $                             | 84,001  |   |                 | $      | 229,448 |             |   | $      | 31,338 |   |   | $ | 2,408,941 |   |
|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |             | 703,308   |                  |   |                          | 39,039  |   |                 |   | 61,841  |             |   |   | 14,376 |   |   |   | 818,564 |   |
| CRE - construction                         |   |             | 88,206    |                  |   |                          | 35,270  |   |                 |   | 31,743  |             |   |   | 15,844 |   |   |   | 171,063 |   |
| Commercial  real estate          |   |             | 791,514   |                  |   |                          | 74,309  |   |                 |   | 93,584  |             |   |   | 30,220 |   |   |   | 989,627 |   |
|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |             | 728,222   |                  |   |                          | -       |   |                 |   | -       |             |   |   | 6,117  |   |   |   | 734,339 |   |
| Home equity lines and loans                |   |             | 753,004   |                  |   |                          | -       |   |                 |   | -       |             |   |   | 2,296  |   |   |   | 755,300 |   |
| All other consumer                         |   |             | 277,378   |                  |   |                          | 3,199   |   |                 |   | 6,930   |             |   |   | 3,212  |   |   |   | 290,719 |   |
| Consumer loans                             |   |             | 1,758,604 |                  |   |                          | 3,199   |   |                 |   | 6,930   |             |   |   | 11,625 |   |   |   | 1,780,358 |   |
|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                | 4,614,272 |                  |   | $                             | 161,509 |   |                 | $      | 329,962 |             |   | $      | 73,183 |   |   | $ | 5,178,926 |   |
|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |   |   |   |   |   |
|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |   |   |   |   |   |
|                                       |   | 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 |   |
|                                       |   |             |      |                  |   |                          |    |   |                 |   |    |             |   |   |   |   |   |   |   |   |

----

| June 30, 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 |   | $                                      | 4,557  |   |                                   | $      | 598    |                                            |   | $      | 63                                |   |   | $                         | 5,218  |   |                 | $      | 2,372,448 |                |   | $ | 31,275 |   |   | $ | 2,408,941 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                                   | 2,204  |   |                                   |   | 233    |                                            |   |   | -                                 |   |   |                      | 2,437  |   |                 |   | 804,248   |                |   |   | 11,879 |   |   |   | 818,564 |   |
| CRE - construction                         |   |                                   | 1,294  |   |                                   |   | -      |                                            |   |   | -                                 |   |   |                      | 1,294  |   |                 |   | 153,925   |                |   |   | 15,844 |   |   |   | 171,063 |   |
| Commercial  real estate          |   |                                   | 3,498  |   |                                   |   | 233    |                                            |   |   | -                                 |   |   |                      | 3,731  |   |                 |   | 958,173   |                |   |   | 27,723 |   |   |   | 989,627 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                                   | 3,356  |   |                                   |   | 422    |                                            |   |   | -                                 |   |   |                      | 3,778  |   |                 |   | 725,365   |                |   |   | 5,196 |   |   |   | 734,339 |   |
| Home equity lines and loans                |   |                                   | 2,439  |   |                                   |   | 853    |                                            |   |   | 354                               |   |   |                      | 3,646  |   |                 |   | 750,127   |                |   |   | 1,527 |   |   |   | 755,300 |   |
| All other consumer                         |   |                                   | 2,488  |   |                                   |   | 402    |                                            |   |   | 1,150                             |   |   |                      | 4,040  |   |                 |   | 284,617   |                |   |   | 2,062 |   |   |   | 290,719 |   |
| Consumer loans                             |   |                                   | 8,283  |   |                                   |   | 1,677  |                                            |   |   | 1,504                             |   |   |                      | 11,464 |   |                 |   | 1,760,109 |                |   |   | 8,785 |   |   |   | 1,780,358 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                                      | 16,338 |   |                                   | $      | 2,508  |                                            |   | $      | 1,567                             |   |   | $                         | 20,413 |   |                 | $      | 5,090,730 |                |   | $ | 67,783 |   |   | $ | 5,178,926 |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |
| Percent of total loans and leases          |   |                                   | 0.32   | %      |                                   |   | 0.05   | %                                               |   |   | 0.03                              | %      |   |                      | 0.39   | %      |                 |   |      |                |   |   | 1.31 | % |   |   |   |   |
|                                       |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |

| 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. |   |                                   |   |   |                                   |
|                                                                                                                                           |   |                                   |   |   |                                   |   |   |                                            |   |   |                              |   |   |                      |   |   |                 |   |      |                |   |   |   |   |   |   |   |   |

----

| June 30, 2011                        |   |         |   |   |                     |   |   |       |   |   |        |   |   |   |   |
|--------------------------------------|--------|--------------|--------|--------|--------------------------|--------|--------|------------|--------|--------|-------------|--------|--------|--------|--------|
|                                 |   |         |   |   |                     |   |   |       |   |   |        |   |   |   |   |
| Three months ended                   |   | Commercial 1 |   |   | Commercial Real Estate 2 |   |   | Consumer 3 |   |   | Unallocated |   |   | Total  |   |
| (dollars in thousands)               |   |         |   |   |                     |   |   |       |   |   |        |   |   |   |   |
| Allowance for loan and lease losses: |   |         |   |   |                     |   |   |       |   |   |        |   |   |   |   |
| Beginning balance                    |   | $            | 65,791 |   |                     | $      | 48,911 |       |   | $      | 20,118      |   |   | $      | 8,140  |   |   | $ | 142,960 |   |
| Charge-offs                          |   |         | (5,430 | )      |                     |   | (2,358 | )          |   |   | (2,724      | )      |   |   | -      |   |   |   | (10,512 | ) |
| Recoveries                           |   |         | 364    |   |                     |   | 288    |       |   |   | 1,809       |   |   |   | -      |   |   |   | 2,461 |   |
| Provision                            |   |         | 3,178  |   |                     |   | (2,299 | )          |   |   | (794        | )      |   |   | 2,915  |   |   |   | 3,000 |   |
| Ending balance                       |   | $            | 63,903 |   |                     | $      | 44,542 |       |   | $      | 18,409      |   |   | $      | 11,055 |   |   | $ | 137,909 |   |
|                                 |   |         |   |   |                     |   |   |       |   |   |        |   |   |   |   |   |   |   |   |   |
|                                 |   |         |   |   |                     |   |   |       |   |   |        |   |   |   |   |   |   |   |   |   |

| Six months ended                                      |   | 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                                           |   |         | (14,999   | )      |                     |   | (7,671  | )          |   |   | (6,595      | )      |   |   | -      |   |   |   | (29,265 | ) |
| Recoveries                                            |   |         | 614       |   |                     |   | 782     |       |   |   | 2,724       |   |   |   | -      |   |   |   | 4,120 |   |
| Provision                                             |   |         | 8,633     |   |                     |   | 254     |       |   |   | 1,383       |   |   |   | 2,730  |   |   |   | 13,000 |   |
| Ending balance                                        |   | $            | 63,903    |   |                     | $      | 44,542  |       |   | $      | 18,409      |   |   | $      | 11,055 |   |   | $ | 137,909 |   |
|                                                  |   |         |      |   |                     |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $            | 4,186     |   |                     | $      | 2,737   |       |   | $      | 302         |   |   | $      | -      |   |   | $ | 7,225 |   |
|                                                  |   |         |      |   |                     |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $            | 59,717    |   |                     | $      | 41,805  |       |   | $      | 18,107      |   |   | $      | 11,055 |   |   | $ | 130,684 |   |
|                                                  |   |         |      |   |                     |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Total loans and leases                                |   | $            | 2,408,941 |   |                     | $      | 989,627 |       |   | $      | 1,780,358   |   |   | $      | -      |   |   | $ | 5,178,926 |   |
|                                                  |   |         |      |   |                     |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $            | 31,275    |   |                     | $      | 30,219  |       |   | $      | 10,122      |   |   | $      | -      |   |   | $ | 71,616 |   |
|                                                  |   |         |      |   |                     |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $            | 2,377,666 |   |                     | $      | 959,408 |       |   | $      | 1,770,236   |   |   | $      | -      |   |   | $ | 5,107,310 |   |
|                                                  |   |         |      |   |                     |   |    |       |   |   |        |   |   |   |   |   |   |   |   |   |

| 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.                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                           |   |
|                                                                                                                                                                                                                                           |   |

----

| June 30, 2010                                         |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
|-------------------------------------------------------|--------|--------------|-----------|--------|--------------------------|--------|-----------|------------|--------|--------|-------------|--------|--------|--------|--------|
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Three months ended                                    |   | Commercial 1 |      |   | Commercial Real Estate 2 |   |      | Consumer 3 |   |   | Unallocated |   |   | Total  |   |
| (dollars in thousands)                                |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Allowance for loan and lease losses:                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |
| Beginning balance                                     |   | $            | 80,297    |   |                     | $      | 51,826    |       |   | $      | 15,157      |   |   | $      | 6,570  |   |   | $ | 153,850 |   |
| Charge-offs                                           |   |         | (10,342   | )      |                     |   | (8,047    | )          |   |   | (8,927      | )      |   |   | -      |   |   |   | (27,316 | ) |
| Recoveries                                            |   |         | 1,729     |   |                     |   | 211       |       |   |   | 565         |   |   |   | -      |   |   |   | 2,505 |   |
| Provision                                             |   |         | 3,771     |   |                     |   | 9,538     |       |   |   | 12,640      |   |   |   | (949   | ) |   |   | 25,000 |   |
| Ending balance                                        |   | $            | 75,455    |   |                     | $      | 53,528    |       |   | $      | 19,435      |   |   | $      | 5,621  |   |   | $ | 154,039 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Six months ended                                      |   | Commercial 1 |      |   | Commercial Real Estate 2 |   |      | Consumer 3 |   |   | Unallocated |   |   | Total  |   |
| (dollars in thousands)                                |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Allowance for loan and lease losses:                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Beginning balance                                     |   | $            | 73,030    |   |                     | $      | 55,653    |       |   | $      | 13,828      |   |   | $      | 3,760  |   |   | $ | 146,271 |   |
| Charge-offs                                           |   |         | (13,476   | )      |                     |   | (28,038   | )          |   |   | (13,284     | )      |   |   | -      |   |   |   | (54,798 | ) |
| Recoveries                                            |   |         | 2,603     |   |                     |   | 1,415     |       |   |   | 1,048       |   |   |   | -      |   |   |   | 5,066 |   |
| Provision                                             |   |         | 13,298    |   |                     |   | 24,498    |       |   |   | 17,843      |   |   |   | 1,861  |   |   |   | 57,500 |   |
| Ending balance                                        |   | $            | 75,455    |   |                     | $      | 53,528    |       |   | $      | 19,435      |   |   | $      | 5,621  |   |   | $ | 154,039 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $            | 5,501     |   |                     | $      | 2,522     |       |   | $      | 2,195       |   |   | $      | -      |   |   | $ | 10,218 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $            | 69,954    |   |                     | $      | 51,006    |       |   | $      | 17,240      |   |   | $      | 5,621  |   |   | $ | 143,821 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Total loans and leases                                |   | $            | 2,605,133 |   |                     | $      | 1,204,204 |       |   | $      | 1,946,898   |   |   | $      | -      |   |   | $ | 5,756,235 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment |   | $            | 33,923    |   |                     | $      | 46,981    |       |   | $      | 15,295      |   |   | $      | -      |   |   | $ | 96,199 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment |   | $            | 2,571,210 |   |                     | $      | 1,157,223 |       |   | $      | 1,931,603   |   |   | $      | -      |   |   | $ | 5,660,036 |   |
|                                                  |   |         |      |   |                     |   |      |       |   |   |        |   |   |   |   |   |   |   |   |   |

| 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.                                                                                                                                                                  |
|                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                           |

----

| June 30, 2011                              |   |  Recorded Investment With Related Allowance |   |   | Recorded Investment Without Related Allowance |   |   |   Total Recorded Investment |   |   |   Life-to-date Charge-offs |   |   |   Contractual Balances |   |   |   Related Allowance |   |    | Average Recorded Investment |   |
|--------------------------------------------|--------|--------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|--------|-----------------------------|--------|--------|--------------------------|--------|---------|-----------------------------|--------|
| (dollars in thousands)                     |   |                                             |   |   |                                          |   |   |                             |   |   |                            |   |   |                        |   |   |                     |   |    |                        |   |
| Commercial and industrial loans and leases |   | $                                                | 12,478 |   |                                          | $      | 18,797 |                             |   | $      | 31,275                          |   |   | $                           | 12,932 |   |                     | $      | 44,207  |                        |   | $ | 4,186 |   |   | $ | 33,038 |   |
|                                       |   |                                             |   |   |                                          |   |   |                             |   |   |                            |   |   |                        |   |   |                     |   |    |                        |   |   |   |   |   |   |   |   |
| CRE - permanent                            |   |                                             | 2,976  |   |                                          |   | 11,399 |                             |   |   | 14,375                          |   |   |                        | 9,436  |   |                     |   | 23,811  |                        |   |   | 58 |   |   |   | 16,404 |   |
| CRE - construction                         |   |                                             | 9,867  |   |                                          |   | 5,977  |                             |   |   | 15,844                          |   |   |                        | 18,215 |   |                     |   | 34,059  |                        |   |   | 2,679 |   |   |   | 17,826 |   |
| Commercial  real estate          |   |                                             | 12,843 |   |                                          |   | 17,376 |                             |   |   | 30,219                          |   |   |                        | 27,651 |   |                     |   | 57,870  |                        |   |   | 2,737 |   |   |   | 34,230 |   |
|                                       |   |                                             |   |   |                                          |   |   |                             |   |   |                            |   |   |                        |   |   |                     |   |    |                        |   |   |   |   |   |   |   |   |
| Residential mortgages                      |   |                                             | 907    |   |                                          |   | 5,210  |                             |   |   | 6,117                           |   |   |                        | 593    |   |                     |   | 6,710   |                        |   |   | 185 |   |   |   | 6,435 |   |
| Home equity lines and loans                |   |                                             | 380    |   |                                          |   | 1,563  |                             |   |   | 1,943                           |   |   |                        | 295    |   |                     |   | 2,238   |                        |   |   | 117 |   |   |   | 2,060 |   |
| All other consumer                         |   |                                             | -      |   |                                          |   | 2,062  |                             |   |   | 2,062                           |   |   |                        | -      |   |                     |   | 2,062   |                        |   |   | - |   |   |   | 1,921 |   |
| Consumer loans                             |   |                                             | 1,287  |   |                                          |   | 8,835  |                             |   |   | 10,122                          |   |   |                        | 888    |   |                     |   | 11,010  |                        |   |   | 302 |   |   |   | 10,416 |   |
|                                       |   |                                             |   |   |                                          |   |   |                             |   |   |                            |   |   |                        |   |   |                     |   |    |                        |   |   |   |   |   |   |   |   |
| Total loans and leases                     |   | $                                                | 26,608 |   |                                          | $      | 45,008 |                             |   | $      | 71,616                          |   |   | $                           | 41,471 |   |                     | $      | 113,087 |                        |   | $ | 7,225 |   |   | $ | 77,684 |   |
|                                       |   |                                             |   |   |                                          |   |   |                             |   |   |                            |   |   |                        |   |   |                     |   |    |                        |   |   |   |   |   |   |   |   |
|                                       |   |                                             |   |   |                                          |   |   |                             |   |   |                            |   |   |                        |   |   |                     |   |    |                        |   |   |   |   |   |   |   |   |
| December 31, 2010                          |   |  Recorded Investment With Related Allowance |   |   | Recorded Investment Without Related Allowance |   |   |   Total Recorded Investment |   |   |   Life-to-date Charge-offs |   |   |   Contractual 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)                            |   | June 30, 2011 |   |   | December 31, 2010 |   |
|---------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                              |   | Balance       |   |   | Allowance         |   |   | Balance |   |   | Allowance |   |
| Impaired loans without a specific reserve         |   | $             | 45,008 |   |              | $      | - |   |   | $ | 54,655 |   |   | $ | - |   |
| Impaired loans with a specific reserve            |   |          | 22,775 |   |              |   | 6,982 |   |   |   | 27,456 |   |   |   | 8,560 |   |
| Restructured loans (1)                            |   |          | 3,833  |   |              |   | 243 |   |   |   | - |   |   |   | - |   |
| Total impaired loans                              |   | $             | 71,616 |   |              | $      | 7,225 |   |   | $ | 82,111 |   |   | $ | 8,560 |   |
|                                              |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Undrawn commitments to lend on restructured loans |   | $             | -      |   |              |   |   |   |   | $ | - |   |   |   |   |   |
|                                              |   |          |   |   |              |   |   |   |   |   |   |   |   |   |   |   |

| (1)  Restructured loans include $2.5 of commercial loans modified during the second quarter of 2011 and $1.3 million of consumer loans which were modified for customers who were experiencing financial difficulty and were in jeopardy of losing their homes to foreclosure. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | For the three months |   |   | For the six months |   |
|-------------------------------------------------|--------|----------------------|--------|--------|--------------------|--------|
| (dollars in thousands)                          |   | ended June 30,       |   |   | ended June 30,     |   |
|                                            |   | 2011                 |   |   | 2010               |   |   | 2011 |   |   | 2010 |   |
| Gross interest due on impaired loans            |   | $                    | 1,523  |   |               | $      | 1,860 |   |   | $ | 3,671 |   |   | $ | 3,984 |   |
| Interest reversed (received) on impaired loans  |   |                 | 6      |   |               |   | (48 | ) |   |   | (504 | ) |   |   | (127 | ) |
| Net impact of interest income on impaired loans |   | $                    | 1,529  |   |               | $      | 1,812 |   |   | $ | 3,167 |   |   | $ | 3,857 |   |
|                                            |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Average recorded investment in impaired loans   |   | $                    | 73,405 |   |               | $      | 105,547 |   |   | $ | 77,684 |   |   | $ | 112,134 |   |
|                                            |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |

----

| (dollars in thousands)              |   | June 30, 2011 |      |   | December 31, 2010 |   |
|-------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                |   | Balance       |      |   | Cost              |   |   | Balance |   |   | Cost |   |
| Savings                             |   | $             | 464,055   |   |              |   | 0.18 | % |   | $ | 438,879 |   |   |   | 0.20 | % |
| NOW accounts                        |   |          | 1,158,161 |   |              |   | 0.22 | % |   |   | 1,181,850 |   |   |   | 0.23 | % |
| Money market accounts               |   |          | 1,631,779 |   |              |   | 0.60 | % |   |   | 1,664,620 |   |   |   | 0.60 | % |
| CDs $100 or less                    |   |          | 1,261,026 |   |              |   | 1.74 | % |   |   | 1,378,060 |   |   |   | 1.89 | % |
| CDs greater than $100               |   |          | 589,329   |   |              |   | 1.49 | % |   |   | 586,929 |   |   |   | 1.75 | % |
| Total interest bearing deposits     |   |          | 5,104,350 |   |              |   | 0.85 | % |   |   | 5,250,338 |   |   |   | 0.97 | % |
| Total non-interest bearing deposits |   |          | 839,811   |   |              |   | - |   |   |   | 808,835 |   |   |   | - |   |
| Total deposits                      |   | $             | 5,944,161 |   |              |   | 0.74 | % |   | $ | 6,059,173 |   |   |   | 0.84 | % |
|                                |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |

| (dollars in thousands) |   |   |      |
|------------------------|--------|--------|-----------|
| 2011                   |   | $      | 806,056   |   |
| 2012                   |   |   | 579,304   |   |
| 2013                   |   |   | 171,252   |   |
| 2014                   |   |   | 181,581   |   |
| 2015                   |   |   | 60,800    |   |
| Thereafter             |   |   | 51,362    |   |
|                   |   | $      | 1,850,355 |   |
|                   |   |   |      |   |

| (dollars in thousands)                                         |   | June 30, 2011 |      |   | December 31, 2010 |   |
|----------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                           |   | Balance       |      |   | Cost              |   |   | Balance |   |   | Cost |   |
| Securities sold under repurchase agreements                    |   | $             | 738,628   |   |              |   | 1.37 | % |   | $ | 734,455 |   |   |   | 1.48 | % |
| Short-term borrowings                                          |   |          | 6,390     |   |              |   | - |   |   |   | 10,000 |   |   |   | - |   |
| Federal Home Loan Bank advances                                |   |          | 627,332   |   |              |   | 4.50 | % |   |   | 703,761 |   |   |   | 4.35 | % |
| Subordinated debentures accounted for at fair value            |   |          | 65,940    |   |              |   | 7.85 | % |   |   | 65,459 |   |   |   | 7.85 | % |
| Subordinated debentures accounted for at amortized cost1  |   |          | 77,321    |   |              |   | 5.74 | % |   |   | 77,321 |   |   |   | 5.73 | % |
| Total borrowings and other debt obligations                    |   | $             | 1,515,611 |   |              |   | 3.21 | % |   | $ | 1,590,996 |   |   |   | 3.22 | % |
|                                                           |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| 1The cost includes the impact of the interest rate swaps. |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                                      |   | Three months ended June 30, 2011 |   |
|-------------------------------------------|--------|----------------------------------|--------|
|                                      |   | Before                           |   |   |   |   |   | Net of |   |
| (dollars in thousands)                    |   | Tax                              |   |   | Tax |   |   | Tax |   |
|                                      |   | Amount                           |   |   | Expense |   |   | Amount |   |
|                                      |   |                             |   |   |   |   |   |   |   |
| Net income                                |   | $                                | 30,262 |   |   | $ | 7,054 |   |   | $ | 23,208 |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on investment securities |   |                             |   |   |   |   |   |   |   |   |   |   |
| available for sale                        |   |                             | 20,012 |   |   |   | 7,004 |   |   |   | 13,008 |   |
| Unrealized gain on cash flow deriviatives |   |                             | 528    |   |   |   | - |   |   |   | 528 |   |
| Other comprehensive income                |   |                             | 20,540 |   |   |   | 7,004 |   |   |   | 13,536 |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                |   | $                                | 50,802 |   |   | $ | 14,058 |   |   | $ | 36,744 |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
|                                      |   | Six months ended June 30, 2011   |   |
|                                      |   | Before                           |   |   |   |   |   |   | Net of |   |
| (dollars in thousands)                    |   | Tax                              |   |   | Tax |   |   | Tax |   |
|                                      |   | Amount                           |   |   | Expense |   |   | Amount |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
| Net income                                |   | $                                | 53,579 |   |   | $ | 11,591 |   |   | $ | 41,988 |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains on investment securities |   |                             |   |   |   |   |   |   |   |   |   |   |
| available for sale                        |   |                             | 31,245 |   |   |   | 10,936 |   |   |   | 20,309 |   |
| Unrealized gain on cash flow deriviatives |   |                             | 1,045  |   |   |   | - |   |   |   | 1,045 |   |
| Other comprehensive income                |   |                             | 32,290 |   |   |   | 10,936 |   |   |   | 21,354 |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |
| Total comprehensive income                |   | $                                | 85,869 |   |   | $ | 22,527 |   |   | $ | 63,342 |   |
|                                      |   |                             |   |   |   |   |   |   |   |   |   |   |

| (dollars in thousands)                              |   | June 30, |   |   | December 31, |   |
|-----------------------------------------------------|--------|----------|--------|--------|--------------|--------|
|                                                |   | 2011     |   |   | 2010         |   |
| Unrealized gains on investment securities           |   | $        | 22,057 |   |         | $      | 1,748 |   |
| Unrealized (losses) on cash flow hedges             |   |     | (760   | )      |         |   | (1,805 | ) |
| Pension                                             |   |     | (9,349 | )      |         |   | (9,349 | ) |
| Total accumulated other comprehensive income (loss) |   | $        | 11,948 |   |         | $      | (9,406 | ) |
|                                                |   |     |   |   |         |   |   |   |

----

|                                                                |   | For the period ending |      |
|---------------------------------------------------------------------|--------|-----------------------|-----------|
| (dollars in thousands)                                              |   | June 30,              |      |   | December 31, |   |
|                                                                |   | 2011                  |      |   | 2010 |   |
| Financial instruments whose contract amounts represent credit risk: |   |                  |      |   |   |   |
| Commitments to extend credit                                        |   | $                     | 1,436,246 |   |   | $ | 1,497,983 |   |
| Commitments to fund mortgages held for sale                         |   |                  | 20,345    |   |   |   | 12,785 |   |
| Commitments to sell mortgages to investors                          |   |                  | 29,197    |   |   |   | 17,145 |   |
| Letters of credit                                                   |   |                  | 140,986   |   |   |   | 157,096 |   |
|                                                                |   |                  |      |   |   |   |   |   |

| (dollars in thousands)                          |   |      |   |   | Notional |   |   |   |   |   |      |   |   | Receive |   |   | Pay    |   |   | Life    |   |
|-------------------------------------------------|--------|-----------|--------|--------|----------|--------|--------|--------|--------|--------|-----------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
|                                            |   | Positions |   |   | Amount   |   |   | Asset  |   |   | Liability |   |   | Rate    |   |   | Rate   |   |   | (Years) |   |
| June 30, 2011                                   |   |      |   |   |     |   |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |
| Pay fixed - receive floating                    |   |      |   |   |     |   |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |
| interest rate swaps                             |   |      | 3      |   |     | $      | 75,000 |   |   | $      | -         |   |   | $       | 760    |   |   |   | 0.27   | %       |   |   | 3.26 | % |   |   | 0.33 |   |
| Total derivatives used in hedging relationships |   |      |   |   |     | $      | 75,000 |   |   | $      | -         |   |   | $       | 760    |   |   |   | 0.27   | %       |   |   | 3.26 | % |   |   | 0.33 |   |
|                                            |   |      |   |   |     |   |   |   |   |   |      |   |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |   |
| 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) |
| June 30, 2011                |                |      |                             |                                        |                            |                                                                                              |                                  |                                                                                   |    |   |   |   |   |
| Receive fixed - pay floating |                |      |                             |                                        |                            |                                                                                              |                                  |                                                                                   |    |   |   |   |   |
|                         | interest rate swaps | 85        |                             |  $   199,071            |                            |  $   19,944                                                                   |                                  |  $             - |    | 6.10%  |   | 1.83%  |   | 4.85 |
| Pay fixed - receive floating |                |      |                             |                                        |                            |                                                                                              |                                  |                                                                                   |    |   |   |   |   |
|                         | interest rate swaps | 85        |                             |       199,071 |                            |                 - |                                  |        19,944                                       |    | 1.83%  |   | 6.10%  |   | 4.85 |
| Net interest rate swaps      |                |      |  $   398,142 |                                        |  $   19,944 |                                                                                              |  $    19,944 |                                                                                   | 3.96%   |   | 3.96%  |   | 4.85   |
|                         |                |      |                             |                                        |                            |                                                                                              |                                  |                                                                                   |    |   |   |   |   |   |
| 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   |
|                         |                |      |                             |                                        |                            |                                                                                              |                                  |                                                                                   |    |   |   |   |   |   |

----

| Derivative Activity                              |   | Balance Sheet Effect atJune 30, 2011                                               |   | Income Statement Effect For The Three Months Ended June 30, 2011                                        |   | Income Statement Effect For The Six Months Ended June 30, 2011                                     |
|--------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Cash flow hedges:                                |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Pay fixed - receive floating interest rate swaps |   | Increase to other liabilities of $0.8 million and a corresponding decrease to OCI. |   | The ineffective portion is zero. Increase to interest expense of $0.6 million for net settlements.      |   | The ineffective portion is zero. Increase to interest expense of $1.1 million for net settlements. |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Interest rate swaps:                             |   | Increase to other assets/liabilities of $19.9 million.                             |   | No net effect on other operating income from offsetting $2.0 million change.                            |   | No net effect on other operating income from offsetting $0.4 million change.                       |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Other derivatives:                               |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Interest rate locks                              |   | Increase to other liabilities of $0.6 million                                      |   | Decrease to mortgage banking income of $0.7 million                                                     |   | Decrease to mortgage banking income of $0.6 million                                                |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Forward sale commitments                         |   | Increase to other assets of $0.5 million                                           |   | Increase to mortgage banking income of $0.6 million                                                     |   | Increase to mortgage banking income of $0.6 million                                                |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
|                                             |   | Balance Sheet Effect at                                                            |   | Income Statement Effect For The Three Months                                                            |   | Income Statement Effect For The Six Months                                                         |
| Derivative Activity                              |   | December 31, 2010                                                                  |   | Ended June 30, 2010                                                                                     |   | Ended June 30, 2010                                                                                |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Cash flow hedges:                                |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Pay fixed - receive floating interest rate swaps |   | Increase to other liabilities of $1.8 million and a corresponding decrease to OCI. |   | The ineffective portion is zero. Increase to interest expense of $0.6 million for net settlements. |   | The ineffective portion is zero. Increase to interest expense of $1.1 million for net settlements. |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Interest rate swaps:                             |   | Increase to other assets/liabilities of $20.4 million.                             |   | No net effect on other operating income from offsetting $2.0 million change.                            |   | No net effect on other operating income from offsetting $6.7 million changes.                      |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Other derivatives:                               |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Interest rate locks                              |   | Increase to other assets of $0.1 million                                           |   | Decrease to mortgage banking income of $0.6 million.                                                    |   | Increase to mortgage banking income of $0.5 million                                                |
|                                             |   |                                                                               |   |                                                                                                    |   |                                                                                               |
| Forward sale commitments                         |   | Increase to other liabilities of $0.1 million                                      |   | Increase to mortgage banking income of $0.7 million.                                                    |   | Decrease to mortgage banking income of $0.7 million                                                |

----

| · | 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.         |
| · | Certain 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.                                                                          |

| · | Certain 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.  |

----

|                                           |   | TotalFair Value atJune 30, 2011     |      |   | Quoted Pricesin ActiveMarkets forIdentical Assets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|------------------------------------------------|--------|-------------------------------------|-----------|--------|------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------|--------|
| (dollars in thousands)                         |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |
| Assets                                         |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |
| U.S. Treasury securities                       |   | $                                   | 19,996    |   |                                                       | $      | 19,996 |                                      |   | $      | -                                      |   |   | $ | - |   |
| U.S. Government agency securities              |   |                                | 5,077     |   |                                                       |   | -      |                                      |   |   | 5,077                                  |   |   |   | - |   |
| State and municipal bonds                      |   |                                | 334,861   |   |                                                       |   | -      |                                      |   |   | 334,861                                |   |   |   | - |   |
| Agency mortgage-backed securities/             |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |
| collateralized mortgage obligations            |   |                                | 1,300,711 |   |                                                       |   | -      |                                      |   |   | 1,300,711                              |   |   |   | - |   |
| Non-agency collateralized mortgage obligations |   |                                | 19,023    |   |                                                       |   | -      |                                      |   |   | 19,023                                 |   |   |   | - |   |
| Corporate securities and other                 |   |                                | 12,605    |   |                                                       |   | 1,066  |                                      |   |   | 9,539                                  |   |   |   | 2,000 |   |
| Marketable equity securities                   |   |                                | 4,409     |   |                                                       |   | 3,318  |                                      |   |   | -                                      |   |   |   | 1,091 |   |
| Investment securities, available for sale      |   |                                | 1,696,682 |   |                                                       |   | 24,380 |                                      |   |   | 1,669,211                              |   |   |   | 3,091 |   |
|                                           |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| Forward sale commitments                       |   |                                | 508       |   |                                                       |   | -      |                                      |   |   | 508                                    |   |   |   | - |   |
| Interest rate swap agreements                  |   |                                | 19,944    |   |                                                       |   | -      |                                      |   |   | 19,944                                 |   |   |   | - |   |
|                                           |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| Liabilities                                    |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
| Subordinated debentures                        |   | $                                   | 65,940    |   |                                                       | $      | 65,940 |                                      |   | $      | -                                      |   |   | $ | - |   |
| Interest rate locks                            |   | $                                   | 574       |   |                                                       |   | -      |                                      |   |   | 574                                    |   |   |   | - |   |
| Interest rate swap agreements                  |   |                                | 20,704    |   |                                                       |   | -      |                                      |   |   | 20,704                                 |   |   |   | - |   |
|                                           |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
|                                           |   |                                |      |   |                                                       |   |   |                                      |   |   |                                   |   |   |   |   |   |
|                                           |   | 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          |   | Beginning Balance January 1, 2011 |      |   | Gains/(losses) included in earnings |   |   | Gains/(losses)included in other comprehensive income |   |   |   Purchases |   |   |   Maturities/ Calls/Paydowns |    |   |   Accretion/ Amortization |   |     |   Transfers |   |   | Ending Balance June 30, 2011 |   |
|----------------------------------------|--------|-----------------------------------|-----------|--------|-------------------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------|--------|--------|-----------------------------------|---------|--------|--------------------------------|--------|----------|------------------|--------|--------|------------------------------|--------|
| U.S. Treasury securities               |   | $                                 | 19,949    |   |                                | $      | -      |                                                 |   | $      | 20               |   |   | $                                 | -       |   |                           | $      | -        |             |   | $      | 27                           |   |   | $ | - |   |   | $ | 19,996 |   |
| Corporate securities and other         |   |                              | 2,130     |   |                                |   | -      |                                                 |   |   | (63              | )      |   |                              | -       |   |                           |   | (1,000   | )                |   |   | (1                           | )      |   |   | - |   |   |   | 1,066 |   |
| Marketable equity securities           |   |                              | 3,140     |   |                                |   | -      |                                                 |   |   | 178              |   |   |                              | -       |   |                           |   | -        |             |   |   | -                            |   |   |   | - |   |   |   | 3,318 |   |
|   Total level 1              |   | $                                 | 25,219    |   |                                | $      | -      |                                                 |   | $      | 135              |   |   | $                                 | -       |   |                           | $      | (1,000   | )                |   | $      | 26                           |   |   | $ | - |   |   | $ | 24,380 |   |
|                                   |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
| Level 2                                |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
|                                   |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies               |   | $                                 | 5,094     |   |                                | $      | -      |                                                 |   | $      | (18              | )      |   | $                                 | -       |   |                           | $      | -        |             |   | $      | 1                            |   |   | $ | - |   |   | $ | 5,077 |   |
| State and municipal bonds              |   |                              | 333,354   |   |                                |   | -      |                                                 |   |   | 12,094           |   |   |                              | -       |   |                           |   | (12,330  | )                |   |   | 1,743                        |   |   |   | - |   |   |   | 334,861 |   |
| Agency mortgage-backed securities/     |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
| collateralized mortgage obligations    |   |                              | 1,231,359 |   |                                |   | -      |                                                 |   |   | 17,886           |   |   |                              | 183,406 |   |                           |   | (129,502 | )                |   |   | (2,438                       | )      |   |   | - |   |   |   | 1,300,711 |   |
| Non-agency collateralized              |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
|    mortgage obligations |   |                              | 25,074    |   |                                |   | -      |                                                 |   |   | 388              |   |   |                              | -       |   |                           |   | (6,457   | )                |   |   | 18                           |   |   |   | - |   |   |   | 19,023 |   |
| Corporate securities and other         |   |                              | 9,904     |   |                                |   | -      |                                                 |   |   | 783              |   |   |                              | 857     |   |                           |   | (1,000   | )                |   |   | (5                           | )      |   |   | (1,000 | ) |   |   | 9,539 |   |
|   Total level 2              |   | $                                 | 1,604,785 |   |                                | $      | -      |                                                 |   | $      | 31,133           |   |   | $                                 | 184,263 |   |                           | $      | (149,289 | )                |   | $      | (681                         | )      |   | $ | (1,000 | ) |   | $ | 1,669,211 |   |
|                                   |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
| Level 3                                |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
|                                   |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
| Corporate securities and other         |   | $                                 | 1,000     |   |                                | $      | -      |                                                 |   | $      | -                |   |   | $                                 | -       |   |                           | $      | -        |             |   | $      | -                            |   |   | $ | 1,000 |   |   | $ | 2,000 |   |
| Marketable equity securities           |   |                              | 1,114     |   |                                |   | -      |                                                 |   |   | (23              | )      |   |                              | -       |   |                           |   | -        |             |   |   | -                            |   |   |   | - |   |   |   | 1,091 |   |
|   Total level 3              |   | $                                 | 2,114     |   |                                | $      | -      |                                                 |   | $      | (23              | )      |   | $                                 | -       |   |                           | $      | -        |             |   | $      | -                            |   |   | $ | 1,000 |   |   | $ | 3,091 |   |
|                                   |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
|                                   |   |                              |      |   |                                |   |   |                                                 |   |   |             |   |   |                              |    |   |                           |   |     |             |   |   |                         |   |   |   |   |   |   |   |   |   |
| Total available for sale securities    |   | $                                 | 1,632,118 |   |                                | $      | -      |                                                 |   | $      | 31,245           |   |   | $                                 | 184,263 |   |                           | $      | (150,289 | )                |   | $      | (655                         | )      |   | $ | - |   |   | $ | 1,696,682 |   |

| (dollars in thousands)            |   |                                                      |   |   |                                      |   |   |                                   |   |   |    |   |
|-----------------------------------|--------|-----------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------|--------|
| June 30, 2011:                    |   | Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |   | Balance |   |
| Assets                            |   |                                                      |   |   |                                      |   |   |                                   |   |   |    |   |
| Loans held for sale               |   | $                                                         | -      |   |                                      | $      | 8,852  |                                   |   | $      | -       |   |   | $ | 8,852 |   |
| Impaired loans, net               |   |                                                      | -      |   |                                      |   | -      |                                   |   |   | 64,391  |   |   |   | 64,391 |   |
| OREO and other repossessed assets |   |                                                      | -      |   |                                      |   | -      |                                   |   |   | 8,407   |   |   |   | 8,407 |   |
|                              |   |                                                      |   |   |                                      |   |   |                                   |   |   |    |   |   |   |   |   |
| December 31, 2010:                |   |                                                      |   |   |                                      |   |   |                                   |   |   |    |   |   |   |   |   |
| Assets                            |   |                                                      |   |   |                                      |   |   |                                   |   |   |    |   |   |   |   |   |
| Loans 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)                                                            |   | June 30, 2011 |      |   | December 31, 2010 |   |
|-----------------------------------------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
|                                                                              |   | Carrying      |      |   |              |   |   | Carrying |   |   |   |   |
|                                                                              |   | Amount        |      |   | Fair Value        |   |   | Amount |   |   | Fair Value |   |
|           ASSETS                |   |          |      |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                         |   | $             | 619,050   |   |              | $      | 619,050 |   |   | $ | 702,382 |   |   | $ | 702,382 |   |
| Investment securities available for sale                                          |   |          | 1,696,682 |   |              |   | 1,696,682 |   |   |   | 1,632,118 |   |   |   | 1,632,118 |   |
| Investment securities held to maturity                                            |   |          | 518,578   |   |              |   | 529,162 |   |   |   | 546,957 |   |   |   | 537,932 |   |
| Loans held for sale                                                               |   |          | 8,852     |   |              |   | 8,918 |   |   |   | 12,785 |   |   |   | 12,795 |   |
|                                                                              |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases                                        |   |          | 982,167   |   |              |   | 967,799 |   |   |   | 960,765 |   |   |   | 947,722 |   |
| Real estate loans:                                                                |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Construction and land development                                                 |   |          | 207,643   |   |              |   | 200,212 |   |   |   | 339,242 |   |   |   | 325,640 |   |
| Residential                                                                       |   |          | 2,400,164 |   |              |   | 2,360,857 |   |   |   | 2,372,182 |   |   |   | 2,329,578 |   |
| Other (non-farm, non-residential)                                                 |   |          | 1,366,530 |   |              |   | 1,266,340 |   |   |   | 1,405,642 |   |   |   | 1,294,090 |   |
| Loans to individuals                                                              |   |          | 213,570   |   |              |   | 195,007 |   |   |   | 236,107 |   |   |   | 223,350 |   |
| Total loans                                                                       |   |          | 5,170,074 |   |              |   | 4,990,215 |   |   |   | 5,313,938 |   |   |   | 5,120,380 |   |
| Allowance for loan and lease losses                                               |   |          | (137,909  | )      |              |   | - |   |   |   | (150,054 | ) |   |   | - |   |
| Net loans                                                                         |   | $             | 5,032,165 |   |              | $      | 4,990,215 |   |   | $ | 5,163,884 |   |   | $ | 5,120,380 |   |
|                                                                              |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| OREO and other repossessed assets                                                 |   |          | 8,407     |   |              |   | 8,407 |   |   |   | 7,453 |   |   |   | 7,453 |   |
| Interest rate locks                                                               |   |          | -         |   |              |   | - |   |   |   | 60 |   |   |   | 60 |   |
| Forward sale commitments                                                          |   |          | 508       |   |              |   | 508 |   |   |   | - |   |   |   | - |   |
| Interest rate swap agreements                                                     |   |          | 19,944    |   |              |   | 19,944 |   |   |   | 20,384 |   |   |   | 20,384 |   |
|                                                                              |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|           LIABILITIES           |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest bearing deposits                                                     |   | $             | 839,811   |   |              | $      | 839,811 |   |   | $ | 808,835 |   |   | $ | 808,835 |   |
| Interest-bearing deposits                                                         |   |          | 3,253,995 |   |              |   | 3,253,995 |   |   |   | 3,285,349 |   |   |   | 3,285,349 |   |
| Deposits with stated maturities                                                   |   |          | 1,850,355 |   |              |   | 1,862,368 |   |   |   | 1,964,989 |   |   |   | 1,979,819 |   |
| Repurchase agreements                                                             |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| and short-term borrowings                                                         |   |          | 745,018   |   |              |   | 745,018 |   |   |   | 744,455 |   |   |   | 744,455 |   |
| FHLB advances                                                                     |   |          | 627,332   |   |              |   | 704,653 |   |   |   | 703,761 |   |   |   | 783,164 |   |
| Subordinated debentures                                                           |   |          | 143,261   |   |              |   | 143,261 |   |   |   | 142,780 |   |   |   | 142,780 |   |
| Forward sale commitments                                                          |   |          | -         |   |              |   | - |   |   |   | 53 |   |   |   | 53 |   |
| Interest rate locks                                                               |   |          | 574       |   |              |   | 574 |   |   |   | - |   |   |   | - |   |
| Interest rate swap agreements                                                     |   |          | 20,704    |   |              |   | 20,704 |   |   |   | 22,189 |   |   |   | 22,189 |   |
|                                                                              |   |          |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| The loan classifications in this table are based upon regulatory classifications. |   |          |      |   |              |   |   |   |   |

----

|                                          |   |                      |   |   |   |   |
|-----------------------------------------------|--------|---------------------------|--------|--------|--------|--------|
| (dollars in thousands)                        |   | Six Months Ended June 30, |   |
|                                          |   | 2011                      |   |   | 2010   |   |
| Service cost                                  |   | $                         | 60     |   |   | $      | 546 |   |
| Interest cost                                 |   |                      | 1,165  |   |   |   | 1,112 |   |
| Expected return on plan assets                |   |                      | (1,370 | )      |   |   | (1,401 | ) |
| Amortization of prior service cost            |   |                      | -      |   |   |   | (61 | ) |
| Amortization of unrecongnized net actual loss |   |                      | 145    |   |   |   | 453 |   |
| Net periodic benefit (gain) cost - recurring  |   |                      | -      |   |   |   | 649 |   |
| Non-recurring curtailment gain                |   |                      | -      |   |   |   | (4,066 | ) |
| Net periodic benefit (gain) cost              |   | $                         | -      |   |   | $      | (3,417 | ) |

----

|                                 |   | Three Months Ended |   |   | Six Months Ended |   |
|--------------------------------------|--------|--------------------|--------|--------|------------------|--------|
| (dollars in thousands)               |   | June 30,           |   |   | June 30,         |   |   | June 30, |   |   | June 30, |   |
|                                 |   | 2011               |   |   | 2010             |   |   | 2011 |   |   | 2010 |   |
| Share-based compensation expense     |   | $                  | 637    |   |             | $      | 492 |   |   | $ | 2,182 |   |   | $ | 895 |   |
| Cash received                        |   |               | 100    |   |             |   | 129 |   |   |   | 1,132 |   |   |   | 230 |   |
| Intrinsic value of options exercised |   |               | 480    |   |             |   | 125 |   |   |   | 3,112 |   |   |   | 188 |   |

----

|                                               |   | As of and for the Three Months Ended |      |
|----------------------------------------------------|--------|--------------------------------------|-----------|
|                                               |   | June 30, 2011                        |      |
|                                               |   | Community                            |      |   |   |   |   |   |   |
| (dollars in thousands)                             |   | Banking                              |      |   | Other |   |   | Consolidated |   |
| Total assets                                       |   | $                                    | 8,573,827 |   |   | $ | 59,314 |   |   | $ | 8,633,141 |   |
| Total deposits                                     |   |                                 | 5,944,161 |   |   |   | - |   |   |   | 5,944,161 |   |
| Net interest income (expense)                      |   |                                 | 67,131    |   |   |   | (2,136 | ) |   |   | 64,995 |   |
| Total non-interest income                          |   |                                 | 12,454    |   |   |   | 9,934 |   |   |   | 22,388 |   |
| Total non-interest expense                         |   |                                 | 46,192    |   |   |   | 7,929 |   |   |   | 54,121 |   |
| Net (loss) income available to common shareholders |   |                                 | 24,699    |   |   |   | (1,491 | ) |   |   | 23,208 |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   | As of and for the Six Months Ended   |      |
|                                               |   | June 30, 2011                        |      |
|                                               |   | Community                            |      |   |   |   |   |   |   |   |   |
| (dollars in thousands)                             |   | Banking                              |      |   | Other |   |   | Consolidated |   |
| Net interest income (loss)                         |   | $                                    | 135,183   |   |   | $ | (4,218 | ) |   | $ | 130,965 |   |
| Total non-interest income                          |   |                                 | 26,219    |   |   |   | 20,353 |   |   |   | 46,572 |   |
| Total non-interest expense                         |   |                                 | 94,663    |   |   |   | 16,295 |   |   |   | 110,958 |   |
| Net (loss) income available to common shareholders |   |                                 | 45,069    |   |   |   | (6,224 | ) |   |   | 38,845 |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   | As of and for the Three Months Ended |      |
|                                               |   | June 30, 2010                        |      |
|                                               |   | Community                            |      |   |   |   |   |   |   |   |   |
| (dollars in thousands)                             |   | Banking                              |      |   | Other |   |   | Consolidated |   |
| Total assets                                       |   | $                                    | 9,136,218 |   |   | $ | 85,909 |   |   | $ | 9,222,127 |   |
| Total deposits                                     |   |                                 | 6,496,205 |   |   |   | - |   |   |   | 6,496,205 |   |
| Net interest income (expense)                      |   |                                 | 70,566    |   |   |   | (1,923 | ) |   |   | 68,643 |   |
| Total non-interest income                          |   |                                 | 15,760    |   |   |   | 12,753 |   |   |   | 28,513 |   |
| Total non-interest expense                         |   |                                 | 59,536    |   |   |   | 7,027 |   |   |   | 66,563 |   |
| Net (loss) income available to common shareholders |   |                                 | (3,799    | ) |   |   | (1,745 | ) |   |   | (5,544 | ) |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   |                                 |      |   |   |   |   |   |   |   |   |   |
|                                               |   | As of and for the Six Months Ended   |      |
|                                               |   | June 30, 2010                        |      |
|                                               |   | Community                            |      |   |   |   |   |   |   |   |   |
| (dollars in thousands)                             |   | Banking                              |      |   | Other |   |   | Consolidated |   |
| Net interest income (loss)                         |   | $                                    | 139,684   |   |   | $ | (3,782 | ) |   | $ | 135,902 |   |
| Total non-interest income                          |   |                                 | 34,358    |   |   |   | 16,729 |   |   |   | 51,087 |   |
| Total non-interest expense                         |   |                                 | 110,288   |   |   |   | 13,932 |   |   |   | 124,220 |   |
| Net (loss) income available to common shareholders |   |                                 | 5,182     |   |   |   | (8,805 | ) |   |   | (3,623 | ) |

----

----

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 |   |   | Six Months Ended |   |
|                                                     |   | June 30, 2011      |   |   | March 31, 2011   |   |   | June 30, 2010 |   |   | June 30, 2011 |   |   | June 30, 2010 |   |
| EARNINGS                                                 |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |
| Total interest income                                    |   | $                  | 87,740 |   |             | $      | 89,358 |          |   | $      | 98,308 |   |   | $ | 177,098 |   |   | $ | 197,145 |   |
| Total interest expense                                   |   |               | 22,745 |   |             |   | 23,388 |          |   |   | 29,665 |   |   |   | 46,133 |   |   |   | 61,243 |   |
| Net interest income                                      |   |               | 64,995 |   |             |   | 65,970 |          |   |   | 68,643 |   |   |   | 130,965 |   |   |   | 135,902 |   |
| Provision for loan and lease losses                      |   |               | 3,000  |   |             |   | 10,000 |          |   |   | 25,000 |   |   |   | 13,000 |   |   |   | 57,500 |   |
| Net interest income after provision                      |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |
| for loan and lease losses                                |   |               | 61,995 |   |             |   | 55,970 |          |   |   | 43,643 |   |   |   | 117,965 |   |   |   | 78,402 |   |
| Net losses from fair value changes of                    |   |               |   |   |             |   |   |          |   |   |   |   |   |
| subordinated debentures                                  |   |               | (430   | )      |             |   | (51    | )             |   |   | 1,543 |   |   |   | (481 | ) |   |   | (5,718 | ) |
| Other non-interest income                                |   |               | 22,818 |   |             |   | 24,235 |          |   |   | 26,970 |   |   |   | 47,053 |   |   |   | 56,805 |   |
| Goodwill impairment                                      |   |               | -      |   |             |   | -      |          |   |   | 8,250 |   |   |   | - |   |   |   | 8,250 |   |
| Other non-interest expense                               |   |               | 54,121 |   |             |   | 56,837 |          |   |   | 58,313 |   |   |   | 110,958 |   |   |   | 115,970 |   |
| Income (loss) before income taxes                        |   |               | 30,262 |   |             |   | 23,317 |          |   |   | 5,593 |   |   |   | 53,579 |   |   |   | 5,269 |   |
| Income tax expense (benefit)                             |   |               | 7,054  |   |             |   | 4,537  |          |   |   | 9,132 |   |   |   | 11,591 |   |   |   | 4,882 |   |
| Net income                                               |   |               | 23,208 |   |             |   | 18,780 |          |   |   | (3,539 | ) |   |   | 41,988 |   |   |   | 387 |   |
| Preferred dividends and accretion of preferred discount  |   |               | -      |   |             |   | (1,691 | )             |   |   | (2,005 | ) |   |   | (1,691 | ) |   |   | (4,010 | ) |
| Accelerated accretion from redemption of preferred stock |   |               | -      |   |             |   | (1,452 | )             |   |   | - |   |   |   | (1,452 | ) |   |   | - |   |
| Net income available to common shareholders              |   | $                  | 23,208 |   |             | $      | 15,637 |          |   | $      | (5,544 | ) |   | $ | 38,845 |   |   | $ | (3,623 | ) |
|                                                     |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings available to common shareholders          |   | $                  | 0.15   |   |             | $      | 0.10   |          |   | $      | (0.04 | ) |   | $ | 0.26 |   |   | $ | (0.03 | ) |
| Diluted earnings available to common shareholders        |   |               | 0.15   |   |             |   | 0.10   |          |   |   | (0.04 | ) |   |   | 0.26 |   |   |   | (0.03 | ) |
| Dividends per common share                               |   |               | 0.01   |   |             |   | 0.01   |          |   |   | 0.01 |   |   |   | 0.02 |   |   |   | 0.02 |   |
|                                                     |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest margin                                      |   |               | 3.53   | %      |             |   | 3.58   | %             |   |   | 3.50 | % |   |   | 3.56 | % |   |   | 3.47 | % |
| Efficiency ratio (1)                                     |   |               | 58.25  | %      |             |   | 59.61  | %             |   |   | 57.72 | % |   |   | 58.94 | % |   |   | 58.12 | % |
| Return on average assets                                 |   |               | 1.08   | %      |             |   | 0.88   | %             |   | NM     |   |   |   | 0.98 | % |   | NM |   |
|                                                     |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Metrics                                    |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance / total loans and leases                       |   |               | 2.66   | %      |             |   | 2.73   | %             |   |   | 2.68 | % |   |   |   |   |   |   |   |   |
| Non-performing loans / total loans and leases            |   |               | 1.42   | %      |             |   | 1.51   | %             |   |   | 1.73 | % |   |   |   |   |   |   |   |   |
| Delinquent loans / total loans and leases                |   |               | 0.39   | %      |             |   | 0.48   | %             |   |   | 0.58 | % |   |   |   |   |   |   |   |   |
| Allowance / non-performing loans and leases              |   |               | 188    | %      |             |   | 181    | %             |   |   | 155 | % |   |   |   |   |   |   |   |   |
| Annualized net charge-offs                               |   |               | 0.62   | %      |             |   | 1.31   | %             |   |   | 1.70 | % |   |   | 0.96 | % |   |   | 1.69 | % |
|                                                     |   |               |   |   |             |   |   |          |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) Refer to the Statement Regarding Non-GAAP Financial Measures at the beginning of Item 2. |
|----------------------------------------------------------------------------------------------|

| · | Sustained asset quality improvement resulted in a 77% decrease, or $44.5 million, to the provision for loan and lease losses (“provision”) to $13.0 million for the six months ended June 30, 2011, from $57.5 million for the six months ended June 30, 2010. In the second quarter 2011, the provision for loan and lease losses was $3.0 million, compared to $10.0 million in the first quarter of 2011 and $25.0 million in the prior year period. Delinquencies and the level of non-performing loans remain low while classified loans declined by 8% during the second quarter of 2011 and 16% since December 31, 2010. Allowance coverage ratios remain strong and totaled 188% of non-performing loans and leases and 2.66% of total loans and leases for June 30, 2011.  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Earning assets have continued to decline primarily as a result of proactive management of lower quality credits, the divestiture of Christiana in 2010 and disciplined deposit pricing. The reduction of interest earning assets resulted in net interest income of $65.0 million for the second quarter and $131 million for year to date 2011. Deposit and customer management efforts led to overall improvement in deposit mix and have mitigated the managed declines of earning assets. As a result, net interest margin expanded to 3.56% as compared to 3.47% in the prior year. Net interest margin for the second quarter 2011 was 3.53%, a slight decrease from the first quarter 2011, for which net interest margin was 3.58%.                                                     |

----

| · | Other non-interest income remained comparable on a linked-quarter basis when considering the earnings from a mezzanine debt fund of $1.7 million in the first quarter of 2011.  Year to date other non-interest income totaled $47.0 million compared to $56.8 million in 2010 and included $3.2 million of earnings from Christiana, which was divested in December 2010, 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 decreased by 4.8% on a linked quarter basis to $54.1 million and totaled $111 million for the six months ended June 30, 2011. The efficiency ratio was stable at 58.25%, for the second quarter of 2011, as management’s continues its focus on expense controls.                                                                                                                                                                                                                |

|                                                     |   |               |   |   |           |   |   |          |   |
|----------------------------------------------------------|--------|--------------------|--------|--------|----------------|--------|--------|---------------|--------|
| (dollars in thousands, except per share data)            |   | Three Months Ended |   |
|                                                     |   | June 30, 2011      |   |   | March 31, 2011 |   |   | June 30, 2010 |   |
| Adjusted net income reconciliation                       |   |               |   |   |           |   |   |          |   |
| Net income available to common shareholders              |   | $                  | 23,208 |   |           | $      | 15,637 |          |   | $ | (5,544 | ) |
| After tax unrealized fair market value (gain) loss on    |   |               |   |   |           |   |   |          |   |   |   |   |
| subordinated debentures                                  |   |               | -      |   |           |   | -      |          |   |   | (1,003 | ) |
| Accelerated accretion from redemption of preferred stock |   |               | -      |   |           |   | 1,452  |          |   |   | - |   |
| BOLI tax expense                                         |   |               | -      |   |           |   | -      |          |   |   | 8,081 |   |
| Goodwill impairment                                      |   |               | -      |   |           |   | -      |          |   |   | 8,250 |   |
| Adjusted net income available to common shareholders     |   | $                  | 23,208 |   |           | $      | 17,089 |          |   | $ | 9,784 |   |
|                                                     |   |               |   |   |           |   |   |          |   |   |   |   |
| Earnings per share                                       |   |               |   |   |           |   |   |          |   |   |   |   |
| Net income available to common shareholders              |   | $                  | 0.15   |   |           | $      | 0.10   |          |   |   | (0.04 | ) |
| After tax unrealized fair market value loss on           |   |               |   |   |           |   |   |          |   |   |   |   |
| subordinated debentures                                  |   |               | -      |   |           |   | -      |          |   |   | (0.01 | ) |
| Accelerated accretion from redemption of preferred stock |   |               | -      |   |           |   | 0.01   |          |   |   | - |   |
| BOLI tax expense                                         |   |               | -      |   |           |   | -      |          |   |   | 0.06 |   |
| Goodwill impairment                                      |   |               | -      |   |           |   | -      |          |   |   | 0.07 |   |
| Adjusted net income available to common shareholders     |   | $                  | 0.15   |   |           | $      | 0.11   |          |   | $ | 0.08 |   |
|                                                     |   |               |   |   |           |   |   |          |   |   |   |   |

| · | The first quarter of 2011 included accelerated accretion of $1.5 million from the repayment of TARP.                                                                                                                                                                                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Non-interest income in 2010 included a $1.5 million gain, or $1.0 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.  |
| · | The second quarter 2010 included a non-tax deductible goodwill impairment charge of $8.3 million or $0.07 per common share, from the announced sale of Christiana.                                                                                                                            |
| · | Income tax expense for the three months ended June 30, 2010, included $8.1 million or $0.06 per common share, of income taxes related to the announced redemption of separate account BOLI.                                                                                                        |

----

|                                                                                         |   |          |      |   |           |   |      |              |   |
|----------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|----------------|--------|-----------|-------------------|--------|
| SUMMARY BALANCE SHEET                                                                        |   | June 30, 2011 |      |   | March 31, 2011 |   |      | December 31, 2010 |   |
| Total cash and cash equivalents                                                              |   | $             | 619,050   |   |           | $      | 505,368   |              |   | $ | 702,382 |   |
| Total assets                                                                                 |   |          | 8,633,141 |   |           |   | 8,543,267 |              |   |   | 8,844,620 |   |
| Investment securities and other securities                                                   |   |          | 2,290,568 |   |           |   | 2,235,777 |              |   |   | 2,259,690 |   |
| Total loans and leases                                                                       |   |          | 5,178,926 |   |           |   | 5,245,146 |              |   |   | 5,326,723 |   |
| Deposits                                                                                     |   |          | 5,944,161 |   |           |   | 5,933,016 |              |   |   | 6,059,173 |   |
| Borrowings                                                                                   |   |          | 1,515,611 |   |           |   | 1,472,987 |              |   |   | 1,590,996 |   |
| Shareholders' equity                                                                         |   |          | 1,133,513 |   |           |   | 1,097,609 |              |   |   | 1,137,437 |   |
| Tangible book value per common share (1)                                                     |   | $             | 5.65      |   |           | $      | 5.40      |              |   | $ | 5.18 |   |
| Tangible common equity / tangible assets (1)                                                 |   |          | 10.25     | %      |           |   | 9.91      | %                 |   |   | 8.27 | % |
|                                                                                         |   |          |      |   |           |   |      |              |   |   |   |   |
| (1) Refer to the Statement Regarding Non-GAAP Financial Measures at the beginning of Item 2. |   |

| ·  | Throughout the second quarter, the pace of recovery has slowed. Business activity has improved overall with retailers, auto dealers, and manufacturers reporting increases in sales, shipments and new orders but at a much slower pace than the previous quarter. Third District banks reported minimal change in loan volume outstanding and that credit quality has been improving. The general view is that loan demand will increase slightly going forward.                                                                   |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·  | The commercial real estate sector has demonstrated minimal change. Vacancy rates have edged down due to companies trading up for higher quality. Residential real estate has shown an improved sales pace attributed to seasonality and buyers’ concern that mortgage rates are likely to increase in the future. Demographic and employment trends resulting from the economic downturn continue to impact demand for housing in the region, which has resulted in continued 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.  Wage pressures are contained in most Districts, as abundant labor availability has continued to limit the pace of wage growth. In the Third District, wages were reported steady. Several Districts reported fuel surcharges have increased but in the Third District, there has been a limited ability to pass through these cost increases to consumers.                               |
| ·  | The outlook among Third District business contacts remains positive. Most agreed that slight growth will occur and improve throughout 2011.                                                                                                                                                                                                                                                                                                                                                                                              |

----

|                                       |   |     |      |   |         |   |      |                |   |   |     |   |
|--------------------------------------------|--------|----------|-----------|--------|--------------|--------|-----------|---------------------|--------|--------|----------|--------|
| (dollars in thousands)                     |   | June 30, |      |   | December 31, |   |      |                |   |   |     |   |
|                                       |   | 2011     |      |   | 2010         |   |      | Increase/(decrease) |   |
| Commercial and industrial loans and leases |   | $        | 2,408,941 |   |         | $      | 2,434,960 |                |   | $      | (26,019  | )      |   |   | (1.1 | )% |
|                                       |   |     |      |   |         |   |      |                |   |   |     |   |   |   |   |   |
| CRE - permanent                            |   |     | 818,564   |   |         |   | 768,988   |                |   |   | 49,576   |   |   |   | 6.4 | % |
| CRE - construction                         |   |     | 171,063   |   |         |   | 281,056   |                |   |   | (109,993 | )      |   |   | (39.1 | )% |
| Commercial real estate                     |   |     | 989,627   |   |         |   | 1,050,044 |                |   |   | (60,417  | )      |   |   | (5.8 | )% |
|                                       |   |     |      |   |         |   |      |                |   |   |     |   |   |   |   |   |
| Residential mortgages                      |   |     | 734,339   |   |         |   | 765,414   |                |   |   | (31,075  | )      |   |   | (4.1 | )% |
| Home equity lines and loans                |   |     | 755,300   |   |         |   | 745,124   |                |   |   | 10,176   |   |   |   | 1.4 | % |
| All other consumer                         |   |     | 290,719   |   |         |   | 331,181   |                |   |   | (40,462  | )      |   |   | (12.2 | )% |
| Consumer loans                             |   |     | 1,780,358 |   |         |   | 1,841,719 |                |   |   | (61,361  | )      |   |   | (3.3 | )% |
|                                       |   |     |      |   |         |   |      |                |   |   |     |   |   |   |   |   |
| Total loans and leases                     |   | $        | 5,178,926 |   |         | $      | 5,326,723 |                |   | $      | (147,797 | )      |   |   | (2.8 | )% |
|                                       |   |     |      |   |         |   |      |                |   |   |     |   |   |   |   |   |
| Allowance for loan and lease losses        |   |     | 137,909   |   |         |   | 150,054   |                |   |   | (12,145  | )      |   |   | (8.1 | )% |
|                                       |   |     |      |   |         |   |      |                |   |   |     |   |   |   |   |   |
| Loans and leases, net                      |   | $        | 5,041,017 |   |         | $      | 5,176,669 |                |   | $      | (135,652 | )      |   |   | (2.6 | )% |
|                                       |   |     |      |   |         |   |      |                |   |   |     |   |   |   |   |   |

| (dollars in thousands)                                |   | June 30, |      |   | March 31, |   |      | December 31, |   |
|-------------------------------------------------------|--------|----------|-----------|--------|-----------|--------|-----------|--------------|--------|
|                                                  |   | 2011     |      |   | 2011      |   |      | 2010         |   |
|                                                  |   |     |      |   |      |   |      |         |   |
| Nonperforming loans                                   |   | $        | 73,183    |   |      | $      | 79,153    |         |   | $ | 83,864 |   |
| Nonperforming loans to total loans                    |   |     | 1.41      | %      |      |   | 1.51      | %            |   |   | 1.57 | % |
| Delinquent loans                                      |   | $        | 20,413    |   |      | $      | 25,342    |         |   | $ | 27,806 |   |
| Delinquent loans to total loans                       |   |     | 0.39      | %      |      |   | 0.48      | %            |   |   | 0.52 | % |
| Classified loans                                      |   | $        | 403,145   |   |      | $      | 438,275   |         |   | $ | 479,336 |   |
| Classified loans to total loans                       |   |     | 7.78      | %      |      |   | 8.36      | %            |   |   | 9.00 | % |
| Tier 1 capital and ALLL                               |   | $        | 1,060,366 |   |      | $      | 1,032,433 |         |   | $ | 1,074,197 |   |
| Classified loans to Tier 1 capital and ALLL           |   |     | 38.02     | %      |      |   | 42.45     | %            |   |   | 44.62 | % |
| Total loans and leases, including loans held for sale |   | $        | 5,178,926 |   |      | $      | 5,245,146 |         |   | $ | 5,326,723 |   |
|                                                  |   |     |      |   |      |   |      |         |   |   |   |   |

----

| (dollars in thousands)                                                                                                                                                                                                                                                              |   | June 30, |      |   | March 31, |   |      | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|-----------|--------|-----------|--------------|--------|
|                                                                                                                                                                                                                                                                                |   | 2011     |      |   | 2011      |   |      | 2010         |   |
| Non-accrual commercial and industrial loans and leases                                                                                                                                                                                                                              |   | $        | 31,275    |   |      | $      | 34,122    |         |   | $ | 34,869 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Non-accrual commercial real estate-permanent                                                                                                                                                                                                                                        |   |     | 11,879    |   |      |   | 15,407    |         |   |   | 17,821 |   |
| Non-accrual commercial real estate-construction                                                                                                                                                                                                                                     |   |     | 15,844    |   |      |   | 18,012    |         |   |   | 19,392 |   |
| Total non-accrual commercial real estate loans                                                                                                                                                                                                                                      |   |     | 27,723    |   |      |   | 33,419    |         |   |   | 37,213 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Non-accrual residential mortgages                                                                                                                                                                                                                                                   |   |     | 5,196     |   |      |   | 5,303     |         |   |   | 5,802 |   |
| Non-accrual home equity lines and loans                                                                                                                                                                                                                                             |   |     | 1,527     |   |      |   | 1,965     |         |   |   | 2,133 |   |
| All other non-accrual consumer loans                                                                                                                                                                                                                                                |   |     | 2,062     |   |      |   | 1,810     |         |   |   | 2,094 |   |
| Total non-accrual consumer loans                                                                                                                                                                                                                                                    |   |     | 8,785     |   |      |   | 9,078     |         |   |   | 10,029 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Total non-accrual loans                                                                                                                                                                                                                                                             |   |     | 67,783    |   |      |   | 76,619    |         |   |   | 82,111 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Restructured loans (1)                                                                                                                                                                                                                                                              |   |     | 3,833     |   |      |   | 351       |         |   |   | - |   |
| Loans 90+ days past due & still accruing                                                                                                                                                                                                                                        |   |     | 1,567     |   |      |   | 2,183     |         |   |   | 1,753 |   |
| Total non-performing loans                                                                                                                                                                                                                                                          |   |     | 73,183    |   |      |   | 79,153    |         |   |   | 83,864 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Other real estate owned and other assets                                                                                                                                                                                                                                            |   |     | 8,407     |   |      |   | 7,653     |         |   |   | 7,453 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Total non-performing assets                                                                                                                                                                                                                                                         |   | $        | 81,590    |   |      | $      | 86,806    |         |   | $ | 91,317 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Total loans and leases, including loans held for sale                                                                                                                                                                                                                               |   | $        | 5,178,926 |   |      | $      | 5,245,146 |         |   | $ | 5,326,723 |   |
| Average total loans and leases                                                                                                                                                                                                                                                      |   | $        | 5,269,556 |   |      | $      | 5,311,204 |         |   | $ | 5,761,647 |   |
| Allowance for loan and lease losses                                                                                                                                                                                                                                                 |   | $        | 137,909   |   |      | $      | 142,960   |         |   | $ | 150,054 |   |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| Allowance for loan and lease losses to:                                                                                                                                                                                                                                             |   |     |      |   |      |   |      |         |   |   |   |   |
| Non-performing assets                                                                                                                                                                                                                                                               |   |     | 169       | %      |      |   | 165       | %            |   |   | 164 | % |
| Non-performing loans                                                                                                                                                                                                                                                                |   |     | 188       | %      |      |   | 181       | %            |   |   | 179 | % |
| Total loans and leases                                                                                                                                                                                                                                                              |   |     | 2.66      | %      |      |   | 2.73      | %            |   |   | 2.82 | % |
| Average total loans and leases                                                                                                                                                                                                                                                      |   |     | 2.62      | %      |      |   | 2.69      | %            |   |   | 2.60 | % |
|                                                                                                                                                                                                                                                                                |   |     |      |   |      |   |      |         |   |   |   |   |
| (1)  Restructured loans include $2.5 of commercial loans modified during the second quarter of 2011 and $1.3 million of consumer loans which were modified for customers who were experiencing financial difficulty and were in jeopardy of losing their homes to foreclosure. |   |

| (dollars in thousands)                                                  |   | June 30, |   |   | March 31, |   |   | December 31, |   |
|-------------------------------------------------------------------------|--------|----------|--------|--------|-----------|--------|--------|--------------|--------|
|                                                                    |   | 2011     |   |   | 2011      |   |   | 2010         |   |
| Total non-accrual loans                                                 |   | $        | 67,783 |   |      | $      | 76,619 |         |   | $ | 82,111 |   |
|                                                                    |   |     |   |   |      |   |   |         |   |   |   |   |
| Non-accrual loans and leases with partial charge-offs                   |   | $        | 35,127 |   |      | $      | 43,257 |         |   | $ | 33,351 |   |
| Life-to-date partial charge-offs on nonaccrual loans and leases         |   | $        | 41,471 |   |      | $      | 40,025 |         |   | $ | 37,837 |   |
|                                                                    |   |     |   |   |      |   |   |         |   |   |   |   |
| Charge-off rate of nonaccrual loans and leases with partial charge-offs |   |     | 54.1   | %      |      |   | 48.1   | %            |   |   | 53.2 | % |
|                                                                    |   |     |   |   |      |   |   |         |   |   |   |   |
| Specific reserves on impaired loans                                     |   | $        | 7,225  |   |      | $      | 4,673  |         |   | $ | 8,560 |   |
|                                                                    |   |     |   |   |      |   |   |         |   |   |   |   |

----

|                                       |   |               |   |   |             |   |   |     |   |   |     |   |
|--------------------------------------------|--------|--------------------|--------|--------|------------------|--------|--------|----------|--------|--------|----------|--------|
|                                       |   | Three Months Ended |   |   | Six Months Ended |   |
|                                       |   | June 30,           |   |   | June 30,         |   |   | June 30, |   |   | June 30, |   |
| (dollars in thousands)                     |   | 2011               |   |   | 2010             |   |   | 2011     |   |   | 2010     |   |
|                                       |   |               |   |   |             |   |   |     |   |   |     |   |
| Commercial and industrial loans and leases |   | $                  | 5,066  |   |             | $      | 8,613  |     |   | $      | 14,385   |   |   | $ | 10,873 |   |
|                                       |   |               |   |   |             |   |   |     |   |   |     |   |   |   |   |   |
| Commercial real estate-permanent           |   |               | 1,242  |   |             |   | 1,509  |     |   |   | 5,188    |   |   |   | 1,869 |   |
| Commercial real estate-construction        |   |               | 828    |   |             |   | 6,327  |     |   |   | 1,701    |   |   |   | 24,754 |   |
| Total commercial real estate loans         |   |               | 2,070  |   |             |   | 7,836  |     |   |   | 6,889    |   |   |   | 26,623 |   |
|                                       |   |               |   |   |             |   |   |     |   |   |     |   |   |   |   |   |
| Residential mortgages                      |   |               | 483    |   |             |   | 5,367  |     |   |   | 2,126    |   |   |   | 8,068 |   |
| Home equity lines and loans                |   |               | 833    |   |             |   | 658    |     |   |   | 1,991    |   |   |   | 1,118 |   |
| All other consumer loans                   |   |               | (401   | )      |             |   | 2,337  |     |   |   | (246     | )      |   |   | 3,050 |   |
| Total consumer loans                       |   |               | 915    |   |             |   | 8,362  |     |   |   | 3,871    |   |   |   | 12,236 |   |
|                                       |   |               |   |   |             |   |   |     |   |   |     |   |   |   |   |   |
| Net loans charged-off                      |   | $                  | 8,051  |   |             | $      | 24,811 |     |   | $      | 25,145   |   |   | $ | 49,732 |   |
|                                       |   |               |   |   |             |   |   |     |   |   |     |   |   |   |   |   |
| Net charge-offs (annualized) to:           |   |               |   |   |             |   |   |     |   |   |     |   |   |   |   |   |
| Total loans and leases                     |   |               | 0.62   | %      |             |   | 1.73   | %        |   |   | 0.98     | %      |   |   | 1.74 | % |
| Average total loans and leases             |   |               | 0.62   | %      |             |   | 1.70   | %        |   |   | 0.96     | %      |   |   | 1.69 | % |
| Allowance for loan and lease losses        |   |               | 23.42  | %      |             |   | 64.60  | %        |   |   | 36.77    | %      |   |   | 65.11 | % |
|                                       |   |               |   |   |             |   |   |     |   |   |     |   |   |   |   |   |

|                                       |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
| (dollars in thousands)                     |   | June 30,           |    |   | June 30,         |   |   | June 30, |   |   | June 30, |   |
|                                       |   | 2011               |    |   | 2010             |   |   | 2011 |   |   | 2010 |   |
| Balance at beginning of period             |   | $                  | 142,960 |   |             | $      | 153,850 |   |   | $ | 150,054 |   |   | $ | 146,271 |   |
| Charge-offs:                               |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases |   |               | 5,430   |   |             |   | 10,342 |   |   |   | 14,999 |   |   |   | 13,476 |   |
| Commercial  real estate          |   |               | 2,358   |   |             |   | 8,047 |   |   |   | 7,671 |   |   |   | 28,038 |   |
| Consumer loans                             |   |               | 2,724   |   |             |   | 8,927 |   |   |   | 6,595 |   |   |   | 13,284 |   |
| Total charge-offs                          |   |               | 10,512  |   |             |   | 27,316 |   |   |   | 29,265 |   |   |   | 54,798 |   |
|                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Commercial and industrial loans and leases |   |               | 364     |   |             |   | 1,729 |   |   |   | 614 |   |   |   | 2,603 |   |
| Commercial  real estate          |   |               | 288     |   |             |   | 211 |   |   |   | 782 |   |   |   | 1,415 |   |
| Consumer loans                             |   |               | 1,809   |   |             |   | 565 |   |   |   | 2,724 |   |   |   | 1,048 |   |
| Total recoveries                           |   |               | 2,461   |   |             |   | 2,505 |   |   |   | 4,120 |   |   |   | 5,066 |   |
| Net charge-offs                            |   |               | 8,051   |   |             |   | 24,811 |   |   |   | 25,145 |   |   |   | 49,732 |   |
| Provision charged to expense               |   |               | 3,000   |   |             |   | 25,000 |   |   |   | 13,000 |   |   |   | 57,500 |   |
| Balance at end of period                   |   | $                  | 137,909 |   |             | $      | 154,039 |   |   | $ | 137,909 |   |   | $ | 154,039 |   |
|                                       |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |

----

| (dollars in thousands)                    |   | June 30, |    |   | December 31, |   |
|-------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                      |   | 2011     |    |   | 2010         |   |
| Specific reserves                         |   | $        | 7,225   |   |         | $      | 8,560 |   |
| Allocated reserves                        |   |     | 119,629 |   |         |   | 133,169 |   |
| Unallocated reserves                      |   |     | 11,055  |   |         |   | 8,325 |   |
| Total allowance for loan and lease losses |   | $        | 137,909 |   |         | $      | 150,054 |   |
|                                      |   |     |    |   |         |   |   |   |

| (dollars in thousands)        |   |          |      |   |              |   |      |                |   |
|-------------------------------|--------|---------------|-----------|--------|-------------------|--------|-----------|---------------------|--------|
|                          |   | June 30, 2011 |      |   | December 31, 2010 |   |      | Increase/(decrease) |   |
| Non-interest bearing deposits |   | $             | 839,811   |   |              | $      | 808,835   |                |   | $ | 30,976 |   |   |   | 3.8 | % |
| Savings                       |   |          | 464,055   |   |              |   | 438,879   |                |   |   | 25,176 |   |   |   | 5.7 | % |
| NOW accounts                  |   |          | 1,158,161 |   |              |   | 1,181,850 |                |   |   | (23,689 | ) |   |   | (2.0 | )% |
| Money market accounts         |   |          | 1,631,779 |   |              |   | 1,664,620 |                |   |   | (32,841 | ) |   |   | (2.0 | )% |
| CDs $100 or less              |   |          | 1,261,026 |   |              |   | 1,378,060 |                |   |   | (117,034 | ) |   |   | (8.5 | )% |
| CDs greater than $100         |   |          | 589,329   |   |              |   | 586,929   |                |   |   | 2,400 |   |   |   | 0.4 | % |
| Total deposits                |   | $             | 5,944,161 |   |              | $      | 6,059,173 |                |   | $ | (115,012 | ) |   |   | (1.9 | )% |
|                          |   |          |      |   |              |   |      |                |   |   |   |   |   |   |   |   |

| · | Securities sold under repurchase agreements totaled $739 million at June 30, 2011 and were relatively unchanged from December 31, 2010.                                        |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | FHLB advances decreased $76.4 million, or 10.9%, to $627 million at June 30, 2011 from $704 million at December 31, 2010, due to advances that matured and were not replaced.  |

----

| · | Net income of $42.0 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.  |
| · | Repurchase of common stock warrant of $1.0 million.                                                         |
| · | Accumulated other comprehensive income of $21.4 million.                                                    |
| · | Cash dividends on preferred stock of $1.6 million; and                                                      |
| · | Cash dividends on common stock of $3.0 million.                                                             |

----

|                                                                                                    |   | For the six months ended June 30, |      |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                                                    |   | 2011                              |      |   | 2010 |   |
| (dollars in thousands)                                                                                  |   | Average                           |      |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                                                                    |   | Balance                           |      |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
| INTEREST EARNING ASSETS:                                                                                |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest earning deposits at banks                                                                      |   | $                                 | 487,806   |   |   | $ | 515 |   |   |   | 0.21 | % |   | $ | 399,704 |   |   | $ | 466 |   |   |   | 0.23 | % |
|                                                                                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                                                                                           |   |                              | 19,974    |   |   |   | 27 |   |   |   | 0.27 | % |   |   | 145,584 |   |   |   | 298 |   |   |   | 0.41 | % |
| U.S. Government agencies                                                                                |   |                              | 1,374,367 |   |   |   | 21,549 |   |   |   | 3.16 | % |   |   | 1,176,592 |   |   |   | 20,948 |   |   |   | 3.59 | % |
| State and municipal*                                                                                    |   |                              | 761,978   |   |   |   | 25,710 |   |   |   | 6.80 | % |   |   | 796,114 |   |   |   | 26,859 |   |   |   | 6.80 | % |
| Other bonds and securities                                                                              |   |                              | 95,602    |   |   |   | 1,333 |   |   |   | 2.81 | % |   |   | 98,609 |   |   |   | 1,309 |   |   |   | 2.68 | % |
| Total investments                                                                                       |   |                              | 2,251,921 |   |   |   | 48,619 |   |   |   | 4.35 | % |   |   | 2,216,899 |   |   |   | 49,414 |   |   |   | 4.49 | % |
|                                                                                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans and lease financing*                                                                   |   |                              | 3,430,280 |   |   |   | 89,644 |   |   |   | 5.27 | % |   |   | 3,973,926 |   |   |   | 104,590 |   |   |   | 5.31 | % |
| Installment loans                                                                                       |   |                              | 918,946   |   |   |   | 22,993 |   |   |   | 5.05 | % |   |   | 959,981 |   |   |   | 25,100 |   |   |   | 5.27 | % |
| Mortgage loans                                                                                          |   |                              | 920,330   |   |   |   | 25,561 |   |   |   | 5.60 | % |   |   | 986,883 |   |   |   | 28,456 |   |   |   | 5.81 | % |
| Total loans and leases                                                                                  |   |                              | 5,269,556 |   |   |   | 138,198 |   |   |   | 5.29 | % |   |   | 5,920,790 |   |   |   | 158,146 |   |   |   | 5.39 | % |
| Total earning assets                                                                                    |   |                              | 8,009,283 |   |   |   | 187,332 |   |   |   | 4.72 | % |   |   | 8,537,393 |   |   |   | 208,026 |   |   |   | 4.91 | % |
| Allowance for loan and lease losses                                                                     |   |                              | (152,189  | ) |   |   |   |   |   |   |   |   |   |   | (163,947 | ) |   |   |   |   |   |   |   |   |
| Non-interest earning assets                                                                             |   |                              | 793,411   |   |   |   |   |   |   |   |   |   |   |   | 909,067 |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                                                                            |   | $                                 | 8,650,505 |   |   |   |   |   |   |   |   |   |   | $ | 9,282,513 |   |   |   |   |   |   |   |   |   |
|                                                                                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| INTEREST BEARING LIABILITIES:                                                                           |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                                                               |   |                              | 5,142,615 |   |   |   | 22,381 |   |   |   | 0.88 | % |   | $ | 5,737,498 |   |   | $ | 34,745 |   |   |   | 1.22 | % |
|                                                                                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities sold under repurchase agreements                                                             |   |                              | 699,057   |   |   |   | 4,741 |   |   |   | 1.37 | % |   |   | 744,095 |   |   |   | 5,682 |   |   |   | 1.54 | % |
| Short-term borrowings                                                                                   |   |                              | 6,781     |   |   |   | - |   |   |   | 0.00 | % |   |   | 6,926 |   |   |   | - |   |   |   | 0.00 | % |
| Federal Home Loan Bank advances                                                                         |   |                              | 639,301   |   |   |   | 14,256 |   |   |   | 4.50 | % |   |   | 746,210 |   |   |   | 16,064 |   |   |   | 4.34 | % |
| Subordinated debentures                                                                                 |   |                              | 142,808   |   |   |   | 4,755 |   |   |   | 6.72 | % |   |   | 136,090 |   |   |   | 4,753 |   |   |   | 7.04 | % |
| Total interest bearing liabilities                                                                      |   |                              | 6,630,562 |   |   |   | 46,133 |   |   |   | 1.40 | % |   |   | 7,370,819 |   |   |   | 61,244 |   |   |   | 1.68 | % |
| Non-interest bearing deposits                                                                           |   |                              | 825,736   |   |   |   |   |   |   |   |   |   |   |   | 799,434 |   |   |   |   |   |   |   |   |   |
| Other non-interest bearing liabilities                                                                  |   |                              | 42,828    |   |   |   |   |   |   |   |   |   |   |   | 36,637 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                       |   |                              | 7,499,126 |   |   |   |   |   |   |   |   |   |   |   | 8,206,890 |   |   |   |   |   |   |   |   |   |
| Equity capital                                                                                          |   |                              | 1,151,379 |   |   |   |   |   |   |   |   |   |   |   | 1,075,623 |   |   |   |   |   |   |   |   |   |
| Total liabilities and equity capital                                                                    |   | $                                 | 8,650,505 |   |   |   |   |   |   |   |   |   |   | $ | 9,282,513 |   |   |   |   |   |   |   |   |   |
| INTEREST RATE MARGIN**                                                                                  |   |                              |      |   |   |   | 141,199 |   |   |   | 3.56 | % |   |   |   |   |   |   | 146,782 |   |   |   | 3.47 | % |
| Tax equivalent interest                                                                                 |   |                              |      |   |   |   | 10,234 |   |   |   |   |   |   |   |   |   |   |   | 10,880 |   |   |   |   |   |
| Net interest income                                                                                     |   |                              |      |   |   | $ | 130,965 |   |   |   |   |   |   |   |   |   |   | $ | 135,902 |   |   |   |   |   |
|                                                                                                    |   |                              |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *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)                      |   | Six Months Ended June 30, |    |
|---------------------------------------------|--------|---------------------------|---------|
|                                        |   | 2011 compared to 2010     |    |
|                                        |   | Volume                    |    |   | Rate |   |   | Total |   |
| Interest Income                             |   |                      |    |   |   |   |   |   |   |
| Interest earning deposits at banks          |   | $                         | 96      |   |   | $ | (47 | ) |   | $ | 49 |   |
| Securities                                  |   |                      |    |   |   |   |   |   |   |   |   |   |
| U.S. Treasury                               |   |                      | (195    | ) |   |   | (76 | ) |   |   | (271 | ) |
| U.S. Agencies                               |   |                      | 3,275   |   |   |   | (2,674 | ) |   |   | 601 |   |
| State and municipal                         |   |                      | (1,152  | ) |   |   | 4 |   |   |   | (1,148 | ) |
| Other bonds and securities                  |   |                      | (41     | ) |   |   | 65 |   |   |   | 24 |   |
| Total investment securities                 |   |                      | 1,887   |   |   |   | (2,681 | ) |   |   | (794 | ) |
| Loans                                       |   |                      |    |   |   |   |   |   |   |   |   |   |
| Commercial loans and leases                 |   |                      | (14,212 | ) |   |   | (734 | ) |   |   | (14,946 | ) |
| Installment loans                           |   |                      | (1,050  | ) |   |   | (1,056 | ) |   |   | (2,106 | ) |
| Loans held for sale                         |   |                      | (1,874  | ) |   |   | (1,022 | ) |   |   | (2,896 | ) |
| Total loans                                 |   |                      | (17,136 | ) |   |   | (2,812 | ) |   |   | (19,948 | ) |
| Total interest income                       |   | $                         | (15,153 | ) |   | $ | (5,540 | ) |   | $ | (20,693 | ) |
|                                        |   |                      |    |   |   |   |   |   |   |   |   |   |
| Interest Expense                            |   |                      |    |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                   |   | $                         | (3,330  | ) |   | $ | (9,034 | ) |   | $ | (12,364 | ) |
|                                        |   |                      |    |   |   |   |   |   |   |   |   |   |
| Securities sold under repurchase agreements |   |                      | (330    | ) |   |   | (611 | ) |   |   | (941 | ) |
| Short-term borrowings                       |   |                      | -       |   |   |   | - |   |   |   | - |   |
| Federal Home Loan advances                  |   |                      | (2,367  | ) |   |   | 560 |   |   |   | (1,807 | ) |
| Subordinated debentures                     |   |                      | 229     |   |   |   | (227 | ) |   |   | 2 |   |
| Total borrowed funds                        |   |                      | (2,468  | ) |   |   | (278 | ) |   |   | (2,746 | ) |
| Total interest expense                      |   |                      | (5,798  | ) |   |   | (9,312 | ) |   |   | (15,110 | ) |
| Increase (decrease) in interest income      |   | $                         | (9,355  | ) |   | $ | 3,772 |   |   | $ | (5,583 | ) |
|                                        |   |                      |    |   |   |   |   |   |   |   |   |   |

----

| (dollars in thousands)                                                     |   | Six Months     |   |   |   |   |   |                |   |
|----------------------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                       |   | Ended June 30, |   |   |   |   |   |                |   |
| NON-INTEREST INCOME                                                        |   | 2011           |   |   | 2010   |   |   | Increase (Decrease) |   |
| Wealth management income                                                   |   | $              | 11,780 |   |   | $      | 14,339 |                |   | $ | (2,559 | ) |   |   | (17.8 | )% |
| Service charges on deposit accounts                                        |   |           | 9,280  |   |   |   | 10,787 |                |   |   | (1,507 | ) |   |   | (14.0 | )% |
| Insurance commissions and fees                                             |   |           | 6,741  |   |   |   | 7,410  |                |   |   | (669 | ) |   |   | (9.0 | )% |
| Cash management and electronic banking fees                                |   |           | 9,016  |   |   |   | 8,772  |                |   |   | 244 |   |   |   | 2.8 | % |
| Mortgage banking income                                                    |   |           | 2,094  |   |   |   | 2,384  |                |   |   | (290 | ) |   |   | (12.2 | )% |
| Bank owned life insurance income                                           |   |           | 2,453  |   |   |   | 3,263  |                |   |   | (810 | ) |   |   | (24.8 | )% |
| Equity in undistributed net earnings of unconsolidated investments         |   |           | 1,816  |   |   |   | 700    |                |   |   | 1,116 |   |   |   | 159.4 | % |
| Gain on pension plan curtailment                                           |   |           | -      |   |   |   | 4,066  |                |   |   | (4,066 | ) |   |   | (100.0 | )% |
| Other operating income                                                     |   |           | 3,873  |   |   |   | 5,504  |                |   |   | (1,631 | ) |   |   | (29.6 | )% |
| Net losses from fair value changes of subordinate debentures               |   |           | (481   | )      |   |   | (5,718 | )                   |   |   | 5,237 |   |   |   | (91.6 | )% |
| Net gains (losses) on sales of investment securities                       |   |           | -      |   |   |   | 214    |                |   |   | (214 | ) |   | NM |   |
| Loans held for sale                                                        |   |           |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| Impairment losses on investment securities                                 |   |           | -      |   |   |   | (634   | )                   |   |   | 634 |   |   | NM |   |
| 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   | )                   |   |   | 634 |   |   | NM |   |
| Total non-interest income                                                  |   | $              | 46,572 |   |   | $      | 51,087 |                |   | $ | (4,515 | ) |   |   | (8.8 | )% |
|                                                                       |   |           |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
|                                                                       |   |           |   |   |   |   |   |                |   |   |   |   |   |   |   |   |
| "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 $1.1 million to $1.8 million, as the timing of fund activities and “exits” vary.  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Loss on the Company’s subordinated debentures (Nasdaq: NPBCO) accounted for at fair value reduced non-interest income in 2010 by $5.7 million compared to $0.5 million in 2011.                                       |

| · | The six months ended June 30, 2010 included a gain of $4.1 million from the curtailment of the Company’s defined benefit pension plan.                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | Exclusive of Christiana’s divestiture in December 2010, wealth management income increased $0.6 million due to increased commission income on retail investment product sales and the positive impact of appreciation of the equity markets on fee-based business. Overall, wealth management income decreased modestly by $2.6 million, to $11.8 million for the six months ended June 30, 2011, as Christiana contributed $3.2 million of wealth management income during the six months ended June 30, 2010.  |
| · | Service charges on deposit accounts declined $1.5 million to $9.3 million for the six months ended June 30, 2011 as a result of reduced overdraft volume and the impact of regulatory changes affecting electronic customer transactions.                                                                                                                                                                                                                                                                              |

----

| (dollars in thousands)                                                                             |   | Six Months     |    |   |   |   |    |                |   |
|----------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|---------|---------------------|--------|
|                                                                                               |   | Ended June 30, |    |   |   |   |    |                |   |
| NON-INTEREST EXPENSE                                                                               |   | 2011           |    |   | 2010   |   |    | Increase (Decrease) |   |
| Salaries, wages and employee benefits                                                              |   | $              | 61,857  |   |   | $      | 60,428  |                |   | $ | 1,429 |   |   |   | 2.4 | % |
| Net premises and equipment                                                                         |   |           | 14,059  |   |   |   | 15,207  |                |   |   | (1,148 | ) |   |   | (7.6 | )% |
| Goodwill impairment                                                                                |   |           | -       |   |   |   | 8,250   |                |   |   | (8,250 | ) |   | NM |   |
| FDIC insurance                                                                                     |   |           | 6,183   |   |   |   | 8,153   |                |   |   | (1,970 | ) |   |   | (24.2 | )% |
| Other operating expenses                                                                           |   |           | 28,859  |   |   |   | 32,182  |                |   |   | (3,323 | ) |   |   | (10.3 | )% |
| Total non-interest expense                                                                         |   | $              | 110,958 |   |   | $      | 124,220 |                |   | $ | (13,262 | ) |   |   | (10.7 | )% |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| RECONCILIATION TABLE FOR NON-GAAP FINANCIAL MEASURES - EFFICIENCY RATIO (1)                        |   |           |    |   |   |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Efficiency Ratio Calculation                                                                       |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Non-interest expense                                                                               |   | $              | 110,958 |   |   | $      | 124,220 |                |   |   |   |   |   |   |   |   |
| Less:                                                                                              |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Goodwill impairment                                                                                |   |           | -       |   |   |   | 8,250   |                |   |   |   |   |   |   |   |   |
| Operating expenses                                                                                 |   | $              | 110,958 |   |   | $      | 115,970 |                |   |   |   |   |   |   |   |   |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Net interest income (taxable equivalent)                                                           |   | $              | 141,199 |   |   | $      | 146,782 |                |   |   |   |   |   |   |   |   |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Non-interest income                                                                                |   |           | 46,572  |   |   |   | 51,087  |                |   |   |   |   |   |   |   |   |
| Less:                                                                                              |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Gain on pension plan curtailment                                                                   |   |           | -       |   |   |   | 4,066   |                |   |   |   |   |   |   |   |   |
| Net losses from fair value changes                                                                 |   |           | (481    | )      |   |   | (5,718  | )                   |   |   |   |   |   |   |   |   |
| Adjusted revenue                                                                                   |   | $              | 188,252 |   |   | $      | 199,521 |                |   |   |   |   |   |   |   |   |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| Efficiency Ratio                                                                                   |   |           | 58.94   | %      |   |   | 58.12   | %                   |   |   |   |   |   |   |   |   |
|                                                                                               |   |           |    |   |   |   |    |                |   |   |   |   |   |   |   |   |
| (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 |   |
|                                                      |   |   |      |   |                    |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | $      | 1,850,355 |   |                    | $      | 1,212,999 |   |   | $ | 431,044 |   |   | $ | 198,320 |   |   | $ | 7,992 |   |
| Federal Home Loan Bank advances                           |   |   | 627,332   |   |                    |   | 90,605 |   |   |   | 54,500 |   |   |   | 74,000 |   |   |   | 408,227 |   |
| Subordinated debentures                                   |   |   | 143,261   |   |                    |   | - |   |   |   | - |   |   |   | - |   |   |   | 143,261 |   |
| Minimum annual rentals on non-cancelable operating leases |   |   | 43,519    |   |                    |   | 7,098 |   |   |   | 10,460 |   |   |   | 8,572 |   |   |   | 17,389 |   |
| Total                                                     |   | $      | 2,664,467 |   |                    | $      | 1,310,702 |   |   | $ | 496,004 |   |   | $ | 280,892 |   |   | $ | 576,869 |   |

| · | 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      |
|--------|---------------------------------------------------------|
| · | $1.0 million repurchase of common stock warrants        |
| · | $115 million reduction in certificates of deposit       |
| · | $76.0 million of payments for maturing of FHLB advances |

| · | $184 million of investment security purchases |
|--------|-----------------------------------------------|

| · | $150 million of maturities and repayments of investment securities available-for-sale |
|--------|---------------------------------------------------------------------------------------|
| · | $114 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  |   |
|                            |   | June 30,             |   |   | December 31,            |   |   | June 30,               |   |   | December 31, |   |   | June 30, |   |   | December 31, |   |
|                            |   | 2011                 |   |   | 2010                    |   |   | 2011                   |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
|                            |   |                 |   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |
| The Company                     |   |                 | 11.20  | %      |                    |   | 10.59  | %                      |   |   | 16.43 | % |   |   | 16.12 | % |   |   | 17.68 | % |   |   | 17.38 | % |
| National Penn Bank              |   |                 | 10.10  | %      |                    |   | 8.89   | %                      |   |   | 14.93 | % |   |   | 13.39 | % |   |   | 16.19 | % |   |   | 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 comitments        |   | $      | 1,436,246 |   |      | $      | 740,831 |        |   | $      | 145,046     |   |   | $          | 117,300 |   |   | $ | 433,069 |   |
| Letters of credit      |   |   | 140,986   |   |      |   | 95,511  |        |   |   | 42,348      |   |   |       | 465     |   |   |   | 2,662 |   |
| Total                  |   | $      | 1,577,232 |   |      | $      | 836,342 |        |   | $      | 187,394     |   |   | $          | 117,765 |   |   | $ | 435,731 |   |
|                   |   |   |      |   |      |   |    |        |   |   |        |   |   |       |    |   |   |   |   |   |
|                   |   |   |      |   |      |   |    |        |   |   |        |   |   |       |    |   |   |   |   |   |

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| · | Timing differences between contractual maturities and or repricing of assets and liabilities (“gap risk”),  |
|--------|------------------------------------------------------------------------------------------------------------------------------|
| · | Risk that assets will repay or customers withdraw prior to contractual maturity (“option risk”),            |
| · | Non-parallel changes in the slope of the yield curve (“yield curve risk”), and                              |
| · | Variation in rate movements of different indices (“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.  |

| Change in Interest Rates |   | Change in Net Interest Income |
|--------------------------|--------|-------------------------------|
|  (in basis points)  |   | June 30, 2011                 |   | June 30, 2010 |
| + 300                    |   | 7.2%                          |   | 8.8% |
| + 200                    |   | 4.6%                          |   | 5.8% |
| +100                     |   | 2.1%                          |   | 2.8% |
| - 100                    |   | -2.1%                         |   | -2.8% |
|                     |   |                          |   |   |

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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 broadens the base for FDIC insurance assessments.                                                                                                                                                                                                                                                                                                 |
| · | A provision that requires 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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| · | The requirement that National Penn submit its executive compensation program to an advisory (non-binding) shareholder vote.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

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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.                                                                                                                                                                                                                                 |

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| 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                         | 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:  | August 9, 2011       |                           | By: | /s/ Scott V. Fainor |
|   |                 |                           |   | Name: | Scott V. Fainor |
|   |                 |                           |   | Title: | President and Chief Executive Officer |
|   |                 |                           |   |   |   |
| Date:  |  August 9, 2011 |                           | By: | /s/ Michael J. Hughes |
|   |                 |                           |   | Name: | Michael J. Hughes |
|   |                 |                           |   | Title: | Chief Financial Officer |

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