National Penn Bancshares, Inc. reported that the company has signed an agreement with a private equity firm to invest $150 million in the bank.

National Penn Bancshares, Inc. will issue 24.8 million shares of common stock at $6.05 per share to Warburg Pincus. The agreed upon price was based on the average closing price of the stock for the previous thirty days.

Warburg Pincus will make an initial payment of $63.3 million within ten days, and then make the balance of the investment after the parties receive regulatory approval from the government. This approval is expected before the end of the year.

National Penn Bancshares, Inc. said that once the deal has been fully funded, Warburg Pincus would own 16.4% of the company. Warburg Pincus is also allowed to appoint one member to the board of directors of National Penn Bancshares, Inc.

National Penn Bancshares, Inc. said that the investment from Warburg Pincus would be used to help accelerate repayment of government capital received as part of the Troubled Asset Relief Program.

National Penn Bancshares, Inc. said that pro forma for the new capital, the bank would have a total risk-based capital ratio of 18%.

For more information on the company, go to www.nationalpennbancshares.com

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