National Penn Bank Named Among Nation's Top 100 SBA (7a) Lenders

National Penn Bancshares, Inc. (Nasdaq: NPBC) announced today that National Penn Bank has been ranked as the 86th largest SBA lender in the United States on the Coleman Report of the 2005 Top 100 SBA 7(a) lenders.

According to the Coleman Report, National Penn approved SBA 7(a) loans totaling more than $25 million for the 12 months ending September 30, 2005. The average loan size was $324,122.

A 7(a) loan refers to small business loans that are guaranteed to a certain amount and under specific circumstances by the U.S. Small Business Administration (SBA). The 7(a) loans provided by National Penn can be up to $2 million with a 75 percent guarantee by the SBA, and can be used for a wide variety of business purposes including: start-up costs, expansion costs, equipment purchases, debt refinancing, working capital, inventory or real estate acquisition and improvement projects.

"We are proud to once again be named a top 100 7(a) SBA lender in the country by the Coleman Report," said Marcia McGavisk, senior vice president and manager, SBA lending. "We believe this honor speaks to National Penn's desire to be both a strong financial partner and a provider of SBA loans that best fit each customer's business need."

Finding the right fit often starts with educating the client. According to McGavisk, many businesses that are ideal candidates for SBA loans often mistakenly think they won't meet the program requirements as a "small" business. However, most mid-sized businesses qualify for some kind of SBA loan, including a manufacturing company with 500 employees or a retail business with up to $6 million in revenues. In addition, the new regulations released by the SBA in 2004 have increased access and speed to SBA funding.

The following are examples of individuals and businesses that may qualify for a SBA loan from National Penn:

-- An experienced manager interested in purchasing the business he/she currently manages

-- A business professional with management experience looking to acquire a business

-- A business that is outgrowing its current location and needs new or more commercial real estate

-- A company that needs new equipment

National Penn also enjoys SBA Preferred/Express lender status, which means that loans can be approved quickly in-house and without obtaining prior SBA approval. This allows National Penn to provide a faster turnaround and often times with less paperwork.

The Coleman Report ranks SBA 7(a) lenders by dollar volume. It is an independent semimonthly bank trade newsletter devoted exclusively to the SBA's 7(a) and 504 lending programs. It provides in-depth coverage of proposed and actual changes to the SBA's lending programs and insightful information of the current industry trends.

National Penn was first listed as a top 100 SBA 7(a) lender by the Coleman Report in 2001 when the organization was ranked 98th.

National Penn Bancshares, Inc. is a $4.57 billion financial services company operating 73 offices in southeastern Pennsylvania through National Penn Bank and its FirstService Bank, HomeTowne Heritage Bank, and The Peoples Bank of Oxford divisions. The Peoples Bank of Oxford Division also operates one community office in Cecil County, Maryland. National Penn investment management units, with combined client assets approaching $1.6 billion, consist of National Penn Investors Trust Company, which provides trust and investment management services; National Penn Investment Services, which markets brokerage services provided by PrimeVest Financial Services, Inc.; and FirstService Capital, Inc., which provides investment advisory services. National Penn Bancshares also provides mortgage banking activities through National Penn Mortgage Company; insurance services through National Penn Insurance Agency, Inc.; and equipment leasing services through National Penn Leasing Company. National Penn Bancshares, Inc. common stock is traded on the Nasdaq Stock Market under the symbol "NPBC."

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.