KNBT Knbt Bancorp (MM)

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National Penn Bancshares, Inc.
Positioned for Continued Success
in a Challenging Environment

Sandler O'Neill & Partners, L.P.
East Coast Financial Services Conference

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Safe Harbor Regarding Forward Looking Statements

This presentation contains forward-looking information about National Penn Bancshares, Inc. (National Penn),
Christiana Bank and Trust Company (Christiana), KNBT Bancorp, Inc. (KNBT), and the combined operations of
National Penn, Christiana and KNBT after the mergers, that is intended to be covered by the safe harbor for
forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are statements that are not historical facts. These statements can be identified by the use of
forward-looking terminology such as "believe," "expect," "may," "will,“ "should,'' "project," "plan,'' "seek,“ ”continue, 
"intend,'' or "anticipate'' or the negative thereof or comparable terminology, and include discussions of strategy,
financial projections and estimates and their underlying assumptions, statements regarding plans, objectives,
expectations or consequences of the transactions, and statements about the future performance, operations,
products and services of the companies and their subsidiaries. National Penn and KNBT caution readers not to
place undue reliance on these statements. 

National Penn’s, Christiana’s and KNBT’s businesses and operations, as well as their combined business and
operations following the mergers, are and will be subject to a variety of risks, uncertainties and other factors.
Consequently, their actual results and experience may materially differ from those contained in any
forward-looking statements. Such risks, uncertainties and other factors that could cause actual results and
experience to differ from those projected include, but are not limited to, the following: ineffectiveness of their
business strategy due to changes in current or future market conditions; the effects of competition, and of
changes in laws and regulations on competition, including industry consolidation and development of competing
financial products and services; interest rate movements; inability to achieve merger-related synergies; difficulties
in integrating distinct business operations, including information technology difficulties; disruption from the
transaction making it more difficult to maintain relationships with customers and employees, and challenges in
establishing and maintaining operations in new markets; volatilities in the securities markets; and deteriorating
economic conditions. 

The foregoing review of important factors should be read in conjunction with the other cautionary statements and
risk factors included in National Penn’s and KNBT’s annual, quarterly and current reports and other filings with 
the SEC. See the slides entitled “Additional Information About This Transaction” included in this presentation. 
Neither National Penn, Christiana nor KNBT makes any commitment to publicly release any revision or update to
any forward-looking statements to reflect events or circumstances occurring after the date any forward-looking
statement is made or to reflect the occurrence of unanticipated events.

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Additional Information about the
National Penn/Christiana Transaction

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

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Additional Information about the National Penn/KNBT Transaction

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

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

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Consistent Business Strategies

1. Community banking market niche

2. Superior asset quality

3. Profitable relationships

4. Balanced organic and acquisition growth

5. Diversified revenue streams

6. Focus on shareholder value

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Pending

Acquisition

KNBT

National Penn Bank

FirstService
Bank

Nittany Bank

HomeTowne
Heritage Bank

The Peoples
Bank of Oxford

Christiana
Bank & Trust

Pending

Acquisition

Primary Market

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TOTAL DEPOSITS
 2001 - $2.08 Billion 2006 - $3.83 Billion 5 year CAGR = 13.00%

Deposits as of 9/30/07 - $3.93 Billion

Includes brokered
and CDARS deposits

Core Deposit Strength

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TOTAL LOANS
 2001 - $1.86 Billion 2006 - $3.63 Billion 5 year CAGR = 14.37%

Loans as of 9/30/07 - $3.79 Billion

Commercial Loan Strength

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*fully taxable equivalent

NIM YTD 9/30/07: 3.39%

Net Interest Income 5-Year CAGR: 8.54%

Net Interest Income/Net Interest Margin*

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Superior Asset Quality

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Source: BHCPR at 12/31/06, Peer Group #2; Ratio excludes OREO

Superior Asset Quality
Reserve for Loan and Lease Losses to
Non-accruals + 90 days past due

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Focus on Shareholder Value

Performance Recognitions

Staton Institute Report:
Investment directory covering more than 19,000 public U.S. Companies
America’s Smartest Companies®

– One of only 32 publicly-traded companies with at least 10
 consecutive years of increased earnings and dividends

– Completed 29th consecutive year of higher EPS and 29th
 consecutive year of higher cash dividends.

l

 
Super 50 Team

– One of only 22 companies with a combined total of at least 50
 years of higher EPS and cash dividends per share

l

 
Earnings All-Stars

– One of only 16 companies with higher EPS for at least 20
 straight years

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Diluted EPS

YTD 9/30/06: $ 0.96 YTD 9/30/07: $ 0.97

Focus on Shareholder Value
EPS Growth

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Dividends per share

YTD 9/30/07: $0.49

5-year Average Payout Ratio: 49.9%

Focus on Shareholder Value
Consistent Dividend Growth

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Focus on Shareholder Value
Return on Tangible Equity*

18.99%

21.30%

23.53%

25.49%

27.06%

YTD 9/30/07:
24.72%

*Return on Tangible Equity is a non-GAAP financial measure. In accordance with SEC regulations, a
reconciliation of this non-GAAP ratio to our GAAP Return on Equity ratio is included in our 2006 10-K and our
third quarter 2007 earnings press release. These documents were previously filed with the SEC and are
available for public review.

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20 Years

Annual Equivalent Return

NPBC: 12.37%

S&P 500: 10.57%

Source: Bloomberg - monthly comparative return table

Focus on Shareholder Value
Relative Stock Performance

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Balanced Growth Strategy
Organic Growth

1. Capital management strategy

2. Diversified revenue streams

3. Affiliate integration

4. Timely reaction to market opportunities

5. Acquisition leveraging

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*Based on retention 6 months after acquisition

Balanced Growth Strategy
Acquisition Goals

1. Enhance EPS

2. Growth oriented market demographics

3. Enhance overall franchise value

Successful acquisition record:

– 12 financial services companies, including 7 banks
 since 1999

– Deposit retention average over 95%*

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Pending Acquisition

l Opened for business in February 1994 

l Headquartered in Greenville, DE, just outside of Wilmington

l 58 employees

l Core Business

– Trust / asset management, commercial domicile, commercial
 banking services

l Financial Highlights (as of / year-to-date 9/30/07):

– Trust assets under administration or management: $4.2 billion 

– Banking assets: $164 million

– ROAA: 0.99% ROAE: 8.11%

– Fee income % of total revenue: 48.5%

l Anticipated Close: Early 1Q08

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Pending Acquisition
Transaction Benefits

1. Growth

2. Accretive to EPS

3. Revenue Diversification

4. Delaware Entry Point

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Pending Acquisition

l 56 Community Offices serving Lehigh, Northampton,
 Carbon, Luzerne, Schuylkill and Monroe counties

l Business Lines

– Retail and commercial banking, wealth management and
 insurance

l 825 Employees

l Financial Highlights (as of / year-to-date 9/30/07):

– Assets: $2.87 billion

– Loans: $1.82 billion

– Deposits: $1.92 billion

l Anticipated Close: 1Q08

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Pending Acquisition
Transaction Benefits

1. Prized market position in Pennsylvania

2. Management depth and experience

3. Low risk integration

4. Value creation via well defined cost savings -
 approx. $26.2 million over two years

5. Strong capital base - accretive to EPS and
 Tangible Book Value in 2008

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Integration:
A Focused and Disciplined Process

l Goal: Customer retention and positive market
 momentum

l Dedicated senior executive integration team 

l Low business complexity

l Savings targeted at eliminating duplicate functions

l Best of both companies with a commitment to
 excellence in customer service

l Open communications with all employees

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Source: SNL Financial. Results shown pro-forma for the impact of NPBC’s announced
acquisitions of KNBT Bancorp, Inc. and Christiana Bank & Trust Co.

 National Penn

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SOURCE: Based upon FDIC data as of June 30, 2007. Data adjusted for pending acquisitions.

National Penn’s Future
A Stronger Presence in Pennsylvania
Leadership Position in Key Markets

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Data presented as of September 30, 2007

National Penn’s Future
A Well Balanced Franchise

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National Penn’s Future
A Well Balanced Franchise
Sound Credit Quality 

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National Penn’s Future
Wealth Management

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National Penn’s Future
Diversified Revenue Streams

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Investment Incentives
National Penn Bancshares, Inc.

1. Geographic location of franchise

2. Strong commercial relationship growth

3. Superior financial performance

4. Knowledgeable and experienced management team

5. Track record of success in creating shareholder value

6. Opportunity provided by pending acquisitions of quality
 partners with consistent business philosophies

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Investment Incentives
National Penn Bancshares, Inc.
Unified Vision and Business Approach for Continued Success

1. Excellence in customer service

2. Middle market, small business and retail banking

3. Wealth management, insurance

4. Leverage customer base through a larger branch
 network and cross selling the entire franchise

5. Focus on GROWTH and PROFITABILITY