Univest Financial (UVSP) 8-K Univest Corporation of Pennsylvania — Univest National Bank and Trust Co. — Reports Third Quarter Earnings

Exhibit 99.1

CONTACT: Jeff Schweitzer
UNIVEST CORPORATION OF PENNSYLVANIA
Chief Financial Officer
215-721-2458,schweitzerj@univest.net

FOR IMMEDIATE RELEASE

UNIVEST CORPORATION OF PENNSYLVANIA — UNIVEST NATIONAL
BANK AND TRUST CO. — REPORTS THIRD QUARTER EARNINGS

SOUDERTON, Pa., October 28, 2009 — Univest Corporation of Pennsylvania(NASDAQ: UVSP), parent company of Univest National Bank and Trust Co. of Souderton, Pa., today announced financial results for the third quarter ended September 30, 2009. Univest reported net income of $2.8 million or $0.19 diluted earnings per share for the quarter ended September 30, 2009, compared to net income of $4.2 million or $0.33 diluted earnings per share for the quarter ended September 30, 2008.

For the nine months ended September 30, 2009, Univest reported net income of $9.3 million or $0.68 diluted earnings per share compared to net income of $16.8 million or $1.30 diluted earnings per share reported for the nine months ended September 30, 2008. The decrease year over year is primarily due to an increase in the provision for loan and lease losses of $7.1 million, increased FDIC insurance expense of $2.3 million, along with death benefit claims on bank owned life insurance policies in the prior year of $1.9 million.

During the quarter ended September 30, 2009, Univest successfully completed a follow-on public offering of 3,392,500 shares of its common stock. The net proceeds from the offering to Univest were approximately $55.6 million. Univest continues to remain well-capitalized with total risk-based capital equaling 15.47% at September 30, 2009, well in excess of the regulatory minimum for well-capitalized status.

Net Interest Income and Margin

Net interest income increased $830 thousand or 5.03% in the third quarter of 2009 from the third quarter of 2008. The result is from the growth in average interest earning assets of $69.6 million or 3.8% combined with a decrease in the cost of interest-bearing liabilities.

The net interest margin on a tax-equivalent basis for the third quarter of 2009 increased 5 basis points to 3.82% compared to 3.77% for the third quarter of 2008. The increase in the net interest margin can be attributed to increased loan volume and declines in the cost of interest-bearing liabilities exceeding the declines in yields on total interest-earning assets.

Net interest income increased $1.9 million or 3.96% for the nine months ended September 30, 2009 compared to the nine months ended September 30, 2008. The net interest margin on a tax equivalent basis for the nine months ended September 30, 2009 increased 9 basis points to 3.82% compared to 3.73% for the comparable period in the prior year. The increases in net interest income and net interest margin are primarily due to increased loan volume and declines in the cost of interest-bearing liabilities exceeding the declines in yields on total interest earning assets. Average loans increased $68.0 million or 4.9% year over year, which was driven by an increase in average commercial loans of $92.6 million or 9.1%.

Non-Interest Income

Total non-interest income increased for the quarter ended September 30, 2009 compared to the quarter ended September 30, 2008. For the quarter ended September 30, 2009, Univest reported total non-interest income of $7.1 million compared to $5.6 million for the comparable period in the prior year. This increase is primarily due to increased mortgage banking revenue of $360 thousand for the quarter ended September 30, 2009 compared to the same period in the prior year and increased revenues from the acquisitions of Trollinger Consulting Group and Liberty Benefits, Inc. at the end of 2008. Additionally, Univest recorded an other-than-temporary impairment charge on certain bank equity securities in the third quarter of 2008 of $693 thousand compared to a charge of $47 thousand in the third quarter of 2009.

Total non-interest income for the nine months ended September 30, 2009 decreased slightly compared to the corresponding period in the prior year. This decline is due to $1.9 million of revenue from death benefit claims on bank owned life insurance in the prior year and other than temporary impairment on bank equity securities of $1.4 million recorded during the nine months ended September 30, 2009 compared to $928 thousand recorded during the nine months ended September 30, 2008. Excluding these items, total non-interest income increased $2.2 million compared to the same period in the prior year primarily due to increased mortgage banking revenue of $1.5 million along with increased revenues from the acquisitions of Trollinger Consulting Group and Liberty Benefits, Inc.

Non-Interest Expense

Non-interest expense for the third quarter of 2009 increased $1.9 million, or 13.9%, primarily due to higher FDIC insurance costs, salaries and employee benefits expense. FDIC insurance costs increased $343 thousand quarter over quarter primarily due to premium increases affecting all financial institutions. Salary and employee benefits expenses increased primarily due to increased pension costs, normal merit increases and increased headcount due to the acquisitions of Trollinger Consulting Group and Liberty Benefits, Inc along with increased staff from our mortgage banking initiative launched in the fourth quarter of 2008.

Non-interest expense for the nine months ended September 30, 2009 increased $5.5 million, or 13.0%, primarily due to higher FDIC insurance costs, salaries and employee benefits expense. FDIC insurance costs increased $2.3 million year over year, which includes the special assessment levied on all banks in the second quarter of 2009 which cost Univest $947 thousand. Salaries and employee benefits expense increased $3.5 million primarily due to increased pension expenses of $822 thousand along with normal merit increases combined with increased headcount from the acquisitions completed at the end of the year along with our recent mortgage banking initiatives.

Credit Quality and Provision for Loan and Lease Losses

Nonaccrual loans and leases were $33.1 million at September 30, 2009 compared to $5.0 million at December 31, 2008 and $7.9 million at September 30, 2008. Nonperforming loans and leases as a percentage of total loans and leases equaled 2.55% at September 30, 2009 compared to 0.75% at June 30, 2009 and 0.45% at December 31, 2008 and 0.69% at September 30, 2008. The increase from year-end is primarily due to an increase in non-accrual loans of $28.1 million and an increase in restructured loans of $2.8 million. This increase is primarily due to two credits which went on non-accrual during the third quarter of 2009. One credit is a Shared National Credit to a continuing care retirement community in which Univest participates. The parent company of the community has come under financial difficulty and as a result, the parent company and all communities recently declared bankruptcy. The credit has $7.4 million outstanding at September 30, 2009. The second credit is for four separate facilities to a local commercial real estate developer/home builder which aggregate $16.6 million at September 30, 2009. Univest will continue to closely monitor these credits and may have to provide additional reserve in future quarters related to these credits. Net loan and lease charge-offs for the nine months ended September 30, 2009 were $4.6 million or 0.42% of average loans and leases compared to $4.5 million or 0.43% for the nine months ended September 30, 2008. The provision for loan and lease losses was $5.9 million for the third quarter of 2009 compared to $3.0 million for the corresponding quarter in the prior year. For the nine months ended September 30, 2009, the provision for loan and lease losses was $13.4 million compared to $6.3 million in the prior year. The increase in the provision is due to the migration of loans to higher-risk ratings as a result of deterioration of underlying collateral and economic factors. As a result of the increased provision, the allowance for loan and leases as a percentage of total loans and leases increased to 1.51% at September 30, 2009 from 1.29% at June 30, 2009 and 0.90% at December 31, 2008. The allowance for loan and leases losses to nonperforming loans and leases equaled 59.35% at September 30, 2009 which decreased from 172.30% at June 30, 2009 primarily due to the addition to non-accrual status of the two credits discussed above.

On October 1, 2009, Univest Corporation paid a quarterly cash dividend of $0.20 per share.

About Univest Corporation

Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania (www.univest.net) and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, Montgomery and Lehigh counties. Univest National Bank and Trust Co., member FDIC and Equal Housing Lender, offers customers 32 financial service centers, 12 retirement financial services centers, and 38 ATM locations throughout the region, and is the parent company of Univest Capital, Inc., a small ticket commercial finance business; Univest Insurance, Inc., an independent insurance agency headquartered in Lansdale, Pa., which serves commercial and personal customers; and Univest Investments, Inc., Member FINRA and SIPC, a full-service broker-dealer and investment advisory firm. For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visitwww.univest.net.

# # #

This press release of Univest Corporation and the reports Univest Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Univest Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest Corporation is engaged; (6) technological issues which may adversely affect Univest Corporation’s financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation files with the Securities and Exchange Commission. Univest Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
9/30/2009

(Dollars in thousands)

Balance Sheet (Period End)	09/30/09		06/30/09		03/31/09		12/31/08		09/30/08
Assets	$	2,117,849	$	2,086,821	$	2,065,901	$	2,084,797	$	2,046,390
Securities		472,491		425,774		410,357		432,266		406,965
Loans held for sale		1,439		1,119		5,072		544		—
Loans and leases, gross		1,451,128		1,464,886		1,450,420		1,449,892		1,441,899
Allowance for loan and lease losses		21,945		18,824		14,720		13,118		14,954
Loans and leases, net		1,429,183		1,446,062		1,435,700		1,436,774		1,426,945
Total deposits		1,536,903		1,565,076		1,573,052		1,527,328		1,507,527
Non-interest bearing deposits		226,395		222,877		218,148		221,863		226,606
NOW, Money Market and Savings		812,122		833,825		819,659		795,495		783,830
Time deposits		498,386		508,374		535,245		509,970		497,091
Borrowings		267,821		265,457		245,962		312,736		304,368
Shareholders’ equity		268,052		208,358		206,238		203,207		204,251

	For the three months ended,										For the nine months ended
Balance Sheet (Average)	09/30/09		06/30/09		03/31/09		12/31/08		09/30/08		09/30/09		09/30/08
Assets	$	2,098,964	$	2,077,565	$	2,059,965	$	2,028,900	$	2,020,537	$	2,078,899	$	2,023,725
Securities		447,925		413,142		419,995		403,783		412,271		427,123		434,544
Loans and leases, gross		1,456,446		1,471,231		1,446,095		1,437,721		1,422,774		1,457,961		1,389,965
Deposits		1,547,436		1,560,317		1,555,964		1,523,964		1,503,402		1,554,542		1,542,892
Shareholders’ equity		240,267		208,321		204,544		205,384		205,062		217,841		203,662

Asset Quality Data (Period End)	09/30/09			06/30/09			03/31/09			12/31/08			09/30/08
Nonaccrual loans and leases	$	33,116		$	5,762		$	3,675		$	5,029		$	7,871
Accruing loans and leases 90 days or more past due		644			1,839			2,109			1,145			1,578
Troubled debt restructured		3,216			3,324			747			380			563
Other real estate owned		3,330			2,812			2,824			346			346
Nonperforming assets		40,306			13,737			9,355			6,900			10,358
Allowance for loan and lease losses		21,945			18,824			14,720			13,118			14,954
Nonperforming loans and leases / Loans and leases		2.55	%		0.75	%		0.45	%		0.45	%		0.69	%
Allowance for loan and lease losses / Loans and leases		1.51	%		1.29	%		1.01	%		0.90	%		1.04	%
Allowance for loan and lease losses / Nonperforming loans		59.35	%		172.30	%		225.39	%		200.15	%		149.36	%

	For the three months ended,															For the nine months ended
	09/30/09			06/30/09			03/31/09			12/31/08			09/30/08			09/30/09			09/30/08
Net loan and lease charge-offs	$	2,807		$	1,249		$	554		$	4,263		$	1,804		$	4,610		$	4,474
Net loan and lease charge-offs (annualized)/Average loans and leases		0.76	%		0.34	%		0.16	%		1.18	%		0.50	%		0.42	%		0.43	%

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2009

(Dollars in thousands, except per share data)

	For the three months ended,															For the nine months ended
For the period:	09/30/09			06/30/09			03/31/09			12/31/08			09/30/08			09/30/09			09/30/08
Interest income	$	24,244		$	24,529		$	24,402		$	26,455		$	26,661		$	73,175		$	81,602
Interest expense		6,901			7,356			8,057			9,630			10,148			22,314			32,680
Net interest income		17,343			17,173			16,345			16,825			16,513			50,861			48,922
Provision for loan and lease losses		5,928			5,353			2,156			2,427			3,046			13,437			6,342
Net interest income after provision		11,415			11,820			14,189			14,398			13,467			37,424			42,580
Noninterest income:
Trust fee income		1,325			1,325			1,425			1,171			1,578			4,075			4,833
Service charges on deposit accounts		1,745			1,692			1,613			1,723			1,719			5,050			5,085
Investment advisory commission and fee income		876			766			760			536			581			2,402			1,838
Insurance commissions and fee income		1,470			1,964			2,133			1,128			1,266			5,567			4,595
Bank owned life insurance income		405			408			157			25			241			970			2,766
Other-than-temporary impairment on securities		(47	)		(223	)		(1,177	)		(323	)		(693	)		(1,447	)		(928	)
Net gain (loss) on sales of securities		112			(22	)		37			201			1			127			79
Gain on sales of loans held for sale		401			669			261			21			26			1,331			61
Other income		811			1,247			965			846			845			3,023			2,958
Total noninterest income		7,098			7,826			6,174			5,328			5,564			21,098			21,287
Noninterest expense
Salaries and benefits		8,818			9,417			9,432			8,291			7,935			27,667			24,122
Premises and equipment		2,216			2,125			2,233			2,225			2,110			6,574			6,252
Deposit insurance premiums		526			1,477			583			477			183			2,586			291
Other expense		4,003			3,771			3,255			3,874			3,437			11,029			11,693
Total noninterest expense		15,563			16,790			15,503			14,867			13,665			47,856			42,358
Income before taxes		2,950			2,856			4,860			4,859			5,366			10,666			21,509
Applicable income taxes		197			187			1,024			1,054			1,176			1,408			4,724
Net income	$	2,753		$	2,669		$	3,836		$	3,805		$	4,190		$	9,258		$	16,785
Per Common Share Data:
Book value per share	$	16.30		$	16.00		$	15.87		$	15.71		$	15.83		$	16.30		$	15.83
Net income per share:
Basic	$	0.19		$	0.21		$	0.30		$	0.30		$	0.33		$	0.68		$	1.31
Diluted	$	0.19		$	0.21		$	0.30		$	0.29		$	0.33		$	0.68		$	1.30
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.60		$	0.60
Weighted average shares outstanding		13,635,961			13,023,148			12,977,369			12,921,814			12,874,648			14,873,152			12,856,462
Period end shares outstanding		16,442,021			13,023,704			12,996,291			12,938,514			12,905,326			16,442,021			12,905,326

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
9/30/09

	For the three months ended,															Year to date
	09/30/09			06/30/09			03/31/09			12/31/08			09/30/08			09/30/09			09/30/08
Profitability Ratios (annualized)
Return on average assets		0.52	%		0.52	%		0.76	%		0.75	%		0.82	%		0.60	%		1.11	%
Return on average shareholders’ equity		4.55	%		5.14	%		7.61	%		7.37	%		8.13	%		5.68	%		11.01	%
Net interest margin (FTE)		3.82	%		3.87	%		3.76	%		3.83	%		3.77	%		3.82	%		3.73	%
Efficiency ratio (1)		60.58	%		63.96	%		65.70	%		64.32	%		59.17	%		63.35	%		57.06	%
Capitalization Ratios
Dividends paid to net income		119.47	%		97.60	%		67.75	%		67.94	%		61.50	%		91.74	%		45.96	%
Shareholders’ equity to assets (Period End)		12.66	%		9.98	%		9.98	%		9.75	%		9.98	%		12.66	%		9.98	%
Tangible common equity to tangible assets		10.28	%		7.49	%		7.47	%		7.25	%		7.87	%		10.28	%		7.87	%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		11.51	%		8.86	%		8.89	%		8.94	%		9.29	%		11.51	%		9.29	%
Tier 1 risk-based capital ratio		14.12	%		10.65	%		10.72	%		10.65	%		11.22	%		14.12	%		11.22	%
Risk-based capital ratio		15.47	%		11.89	%		11.74	%		11.60	%		12.30	%		15.47	%		12.30	%

(1) Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income.