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

Exhibit 99.1

NEWS

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 27, 2010 — Univest Corporation of Pennsylvania(NASDAQ: UVSP), a full-service financial institution with 134 years of experience in delivering financial solutions including personal and business banking,online banking, residential mortgages, insurance products, investment and wealth advisory solutions, today announced financial results for the third quarter. Univest reported net income of $4.1 million or $0.25 diluted earnings per share for the quarter ended September 30, 2010, compared to $3.7 million or $0.23 diluted earnings per share in the previous quarter ended June 30, 2010 and $2.8 million or $0.19 diluted earnings per share for the comparable period in the prior year. Net income for the nine months ended September 30, 2010 was $10.8 million or $0.65 diluted earnings per share, compared to $9.3 million or $0.68 diluted earnings per share for the comparable period in the prior year.

Deposits

Total deposits increased $67.8 million during the quarter and have increased $113.4 million year to date. The increase during the third quarter, which was driven by increases in municipal deposits due to the continued disruption in the Corporation’s local markets, consisted of increases of $16.9 million in non-interest bearing deposits, $45.0 million in NOW, money market and savings accounts and $5.9 million in time deposits.

Loans

Gross loans and leases increased by $18.2 million during the quarter. While overall loan demand remains light primarily due to less credit demand and utilization of lines by businesses responding to the current economic environment, Univest continues to secure new loan opportunities due to disruption in its local markets.

Net Interest Income and Margin

Net interest income increased $1.6 million or 9.28% to $19 million in the third quarter of 2010 compared to the third quarter of 2009. The net interest margin on a tax-equivalent basis for the third quarter of 2010 increased four basis points to 4.15% from 4.11% for the second quarter ended June 30, 2010, and 33 basis points compared to 3.82% for the third quarter of 2009.

Net interest income of $54.3 million increased $3.5 million or 6.83% compared to the nine months ended September 30, 2009. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2010 increased 26 basis points to 4.08% from 3.82% for the nine months ended September 30, 2009.

The increase in the net interest income and the net interest margin for the quarter and year to date can be attributed to declines in the cost of interest-bearing liabilities, primarily time deposits, and maturities of Federal Home Loan Bank (FHLB) borrowings, exceeding the declines in yields on total interest-earning assets. The Corporation has continued to experience core deposit growth which has allowed the Corporation to continue to repay its maturing FHLB advances reducing FHLB advances from $92 million at December 31, 2009 to $14 million at September 30, 2010. All but $5 million of the Corporation’s FHLB advances are scheduled to mature in 2010.

Non-Interest Income

Total non-interest income increased by $1.8 million or 25.16% to $8.9 million for the quarter ended September 30, 2010, compared to $7.1 million for the quarter ended September 30, 2009. The increase was due to increased investment advisory commission and fee income of $351 thousand; increased insurance commission and fee income of $345 thousand and higher gains on mortgage banking activities of $860 thousand, which was slightly offset by mortgage servicing rights impairment of $412 thousand which is reflected in other income. In addition, there was a loss of $246 thousand related to a fair value write-down on an interest rate swap for a commercial real estate loan, due to the decline in interest rates during the quarter. The swap was terminated during August 2010 due to the forecasted low interest rate environment.

Non-interest income was negatively impacted during the third quarter of 2010 as a result of the challenging economic climate and increased regulatory requirements. The implementation on August 15, 2010 of Regulation E, which requires customers to opt-in for overdraft protection on debit card and point of sale transactions led to a decline in Univest’s service charges on deposit accounts. Since August 15, Univest has experienced nearly a 20% decline in weekly insufficient fund fee income as a result of this new industry requirement. For the quarter ended September 30, 2010, service charges on deposit accounts declined $112 thousand from the comparable quarter ended September 30, 2009, primarily due to Regulation E.

Total non-interest income for the nine months ended September 30, 2010 increased $4.1 million or 19.21% compared to the nine months ended September 30, 2009, due to increased income from trust fees, investment advisory commissions and fees, insurance commissions and fees, mortgage banking activities, higher gains on sales of securities and other income which was primarily due to increases in interchange fee income. These increases were partially offset by mortgage servicing rights impairments of $418 thousand for the nine months ended September 30, 2010 and a loss of $1.1 million related to a fair value adjustment on an interest rate

swap for a commercial real estate loan, due to the decline in interest rates during 2010 up to the termination date of this swap. The Corporation recorded a gain of $194 thousand related to this swap for the nine months ended September 30, 2009. Additionally, the nine months ended September 30, 2009 was impacted by $1.4 million of other than temporary impairments on bank equity securities compared to $59 thousand of other than temporary impairments recorded in the nine months ended September 30, 2010. Excluding these non-cash write-downs and impairments, non-interest income increased $4.3 million or 19.01% for the nine months ended September 30, 2010 compared to 2009.

Non-Interest Expense

Non-interest expense for the third quarter of 2010 increased $1.6 million or 10.33% compared to the third quarter of 2009. Salaries and benefit expense increased $957 thousand during the three months ended September 30, 2010 compared to the same period in 2009, mainly due to additional personnel to grow the commercial lending and mortgage banking businesses and higher restricted stock expense, partially offset by reduced pension plan expenses as a result of the Corporation’s conversion to a cash balance plan effective December 31, 2009. Deposit insurance premiums increased $172 thousand for the three months ended September 30, 2010 mainly due to the growth in deposits. Other expenses increased primarily due to increased legal fees resulting from non-performing loan activity and increased audit expenses. The Corporation continues to prudently manage expenses while making investments in its lines of business as evidenced by the decline in the Corporation’s efficiency ratio to 58.88% for the third quarter of 2010.

For the nine months ended September 30, 2010, non-interest expenses increased $3.3 million or 6.90% compared to the same period in the prior year. Salaries and benefits increased $1.4 million for the nine months ended September 30, 2010 compared to the same period in 2009 primarily due to additional personnel to grow the commercial lending and mortgage banking businesses and higher restricted stock expense partially offset by reduced pension plan expenses. Deposit insurance premiums for the nine-month period ended September 30, 2010 decreased $628 thousand primarily due to the FDIC special assessment which affected all banks and resulted in an additional charge of $947 thousand to the Corporation in the second quarter of 2009 partially offset by higher deposit insurance premiums in 2010 as a result of the deposit growth. Other expenses increased primarily due to increased legal fees resulting from non-performing loan activity and increased audit expenses. Marketing and advertising expenses increased $1.1 million during the nine months ended September 30, 2010 primarily to support a major brand campaign to position the Corporation to take advantage of the disruption in its markets.

Asset Quality and Provision for Loan and Lease Losses

Nonaccrual loans and leases increased $3.5 million during the third quarter to $33.0 million compared to $29.5 million at June 30, 2010, but decreased by $73 thousand year over year. Nonperforming loans and leases as a percentage of total loans and leases equaled 2.37% at September 30, 2010 slightly up from 2.23% at June 30, 2010. While the provision for loan and lease losses increased during the quarter $664 thousand and $1.9 million for the nine months ended September 30, 2010 from the comparable period in 2009 due to the migration of loans to higher risk ratings as a result of deterioration of underlying collateral and economic factors, the quarterly provision has declined compared to the same period in 2009 by $399 thousand.

The allowance for loan and lease losses as a percentage of total loans and leases decreased to 1.97% at September 30, 2010 from 2.01% at June 30, 2010 as a result of charge-offs that occurred during the quarter. The increase in net charge-offs were due to the prolonged down economic cycle and were not concentrated in any one loan type. The allowance for loan and lease losses to nonperforming loans and leases was 83.10% at September 30, 2010, which decreased from 90.08% at June 30, 2010, due to the increase in nonperforming loans and leases. The allowance for loan and lease losses to nonperforming loans and leases was 59.35% at September 30, 2009.

Capital

Univest continues to remain well-capitalized at September 30, 2010. Univest’s total risk-based capital at September 30, 2010 was 15.45%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.

Dividend

On October 1, 2010, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.56% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.

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
September 30, 2010

(Dollars in thousands)

Balance Sheet (Period End)	09/30/10		06/30/10		03/31/10		12/31/09		09/30/09
Assets	$	2,114,204	$	2,088,572	$	2,064,822	$	2,085,421	$	2,117,849
Securities		420,998		434,677		436,368		420,045		472,491
Loans held for sale		3,801		2,485		1,165		1,693		1,439
Loans and leases, gross		1,467,382		1,449,147		1,427,805		1,425,980		1,451,128
Allowance for loan and lease losses		28,883		29,109		27,065		24,798		21,945
Loans and leases, net		1,438,499		1,420,038		1,400,740		1,401,182		1,429,183
Total deposits		1,677,641		1,609,772		1,572,681		1,564,257		1,536,903
Non-interest bearing deposits		272,805		255,880		246,909		242,691		226,395
NOW, Money Market and Savings		969,254		924,242		894,799		871,024		812,122
Time deposits		435,582		429,650		430,973		450,542		498,386
Borrowings		128,905		171,824		187,637		214,063		267,821
Shareholders’ equity		270,773		269,524		267,850		267,807		268,052

	For the three months ended,										For the nine months ended,
Balance Sheet (Average)	09/30/10		06/30/10		03/31/10		12/31/09		09/30/09		09/30/10		09/30/09
Assets	$	2,117,708	$	2,090,930	$	2,038,739	$	2,096,945	$	2,098,964	$	2,082,742	$	2,078,899
Securities		431,193		442,902		409,188		454,096		447,925		427,842		427,123
Loans and leases, gross		1,459,820		1,425,278		1,420,830		1,438,880		1,456,462		1,435,451		1,457,991
Deposits		1,642,613		1,606,621		1,537,676		1,553,308		1,547,436		1,596,021		1,554,542
Shareholders’ equity		271,045		269,902		269,030		267,645		240,267		270,000		217,841

Asset Quality Data (Period End)	09/30/10			06/30/10			03/31/10			12/31/09			09/30/09
Nonaccrual loans and leases	$	33,043		$	29,541		$	34,856		$	33,498		$	33,116
Accruing loans and leases 90 days or more past due		899			1,276			303			726			644
Troubled debt restructured		813			1,499			1,691			3,611			3,216
Other real estate owned		1,557			1,827			2,453			3,428			3,330
Nonperforming assets		36,312			34,143			39,303			41,263			40,306
Allowance for loan and lease losses		28,883			29,109			27,065			24,798			21,945
Nonperforming loans and leases / Loans and leases		2.37	%		2.23	%		2.58	%		2.65	%		2.55	%
Allowance for loan and lease losses / Loans and leases		1.97	%		2.01	%		1.90	%		1.74	%		1.51	%
Allowance for loan and lease losses / Nonperforming loans		83.10	%		90.08	%		73.45	%		65.54	%		59.35	%

	For the three months ended,															For the nine months ended,
	09/30/10			06/30/10			03/31/10			12/31/09			09/30/09			09/30/10			09/30/09
Net loan and lease charge-offs	$	5,755		$	2,821		$	2,628		$	4,595		$	2,807		$	11,204		$	4,610
Net loan and lease charge-offs (annualized)/Average loans and leases		1.56	%		0.79	%		0.75	%		1.27	%		0.76	%		1.04	%		0.42	%

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2010

(Dollars in thousands, except per share data)

	For the three months ended,															For the nine months ended,
For the period:	09/30/10			06/30/10			03/31/10			12/31/09			09/30/09			09/30/10			09/30/09
Interest income	$	23,060		$	22,878		$	22,485		$	23,184		$	24,244		$	68,423		$	73,175
Interest expense		4,107			4,602			5,380			6,409			6,901			14,089			22,314
Net interest income		18,953			18,276			17,105			16,775			17,343			54,334			50,861
Provision for loan and lease losses		5,529			4,865			4,895			7,449			5,928			15,289			13,437
Net interest income after provision		13,424			13,411			12,210			9,326			11,415			39,045			37,424
Noninterest income:
Trust fee income		1,450			1,500			1,500			1,461			1,325			4,450			4,075
Service charges on deposit accounts		1,633			1,812			1,782			1,986			1,745			5,227			5,050
Investment advisory commission and fee income		1,227			1,152			1,056			1,025			876			3,435			2,402
Insurance commissions and fee income		1,815			1,896			2,243			1,514			1,470			5,954			5,567
Bank owned life insurance income		326			202			332			351			405			860			970
Other-than-temporary impairment		(12	)		(42	)		(5	)		(761	)		(47	)		(59	)		(1,447	)
Net gain (loss) on sales of securities		339			38			49			1,023			112			426			127
Net gain on mortgage banking activities		1,246			475			460			847			386			2,181			1,531
Net (loss) gain on interest rate swap		(246	)		(516	)		(310	)		447			(87	)		(1,072	)		194
Other income		1,106			1,542			1,100			926			913			3,748			2,629
Total noninterest income		8,884			8,059			8,207			8,819			7,098			25,150			21,098
Noninterest expense
Salaries and benefits		9,775			9,469			9,811			9,755			8,818			29,055			27,667
Premises and equipment		2,435			2,209			2,292			2,138			2,216			6,936			6,574
Deposit insurance premiums		698			663			597			599			526			1,958			2,586
Other expense		4,263			4,568			4,379			4,976			4,003			13,210			11,029
Total noninterest expense		17,171			16,909			17,079			17,468			15,563			51,159			47,856
Income before taxes		5,137			4,561			3,338			677			2,950			13,036			10,666
Applicable income taxes		990			831			368			(845	)		197			2,189			1,408
Net income	$	4,147		$	3,730		$	2,970		$	1,522		$	2,753		$	10,847		$	9,258
Per Common Share Data:
Book value per share	$	16.29		$	16.25		$	16.17		$	16.27		$	16.30		$	16.29		$	16.30
Net income per share:
Basic	$	0.25		$	0.23		$	0.18		$	0.09		$	0.19		$	0.65		$	0.68
Diluted	$	0.25		$	0.23		$	0.18		$	0.09		$	0.19		$	0.65		$	0.68
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.60		$	0.60
Weighted average shares outstanding		16,621,291			16,589,657			16,535,461			16,464,824			14,873,152			16,582,493			13,635,961
Period end shares outstanding		16,626,900			16,590,710			16,561,807			16,465,083			16,442,021			16,626,900			16,442,021

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2010

	For the three months ended,															For the nine months ended,
	09/30/10			06/30/10			03/31/10			12/31/09			09/30/09			09/30/10			09/30/09
Profitability Ratios (annualized)
Return on average assets		0.78	%		0.72	%		0.59	%		0.29	%		0.52	%		0.70	%		0.60	%
Return on average shareholders’ equity		6.07	%		5.54	%		4.48	%		2.26	%		4.55	%		5.37	%		5.68	%
Net interest margin (FTE)		4.15	%		4.11	%		3.99	%		3.69	%		3.82	%		4.08	%		3.82	%
Efficiency ratio (1)		58.88	%		61.32	%		64.33	%		65.35	%		60.58	%		61.42	%		63.35	%
Capitalization Ratios
Dividends paid to net income		80.15	%		88.95	%		111.55	%		216.43	%		119.47	%		91.78	%		91.74	%
Shareholders’ equity to assets (Period End)		12.81	%		12.90	%		12.97	%		12.84	%		12.66	%		12.81	%		12.66	%
Tangible common equity to tangible assets		10.46	%		10.51	%		10.55	%		10.44	%		10.28	%		10.46	%		10.28	%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		11.51	%		11.57	%		11.82	%		11.46	%		11.51	%		11.51	%		11.51	%
Tier 1 risk-based capital ratio		14.14	%		14.25	%		14.44	%		14.41	%		14.12	%		14.14	%		14.12	%
Total risk-based capital ratio		15.45	%		15.58	%		15.78	%		15.76	%		15.47	%		15.45	%		15.47	%

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

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential

	For the Three Months Ended September 30,
	2010								2009
	Average			Income/		Average			Average			Income/		Average
Tax Equivalent Basis	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	32,983		$	20		0.24	%	$	4,067		$	3		0.29	%
U.S. Government obligations		156,579			669		1.70			123,008			979		3.16
Obligations of state and political subdivisions		109,376			1,746		6.33			105,060			1,734		6.55
Other debt and equity securities		165,238			1,687		4.05			219,857			2,531		4.57
Total interest-earning deposits and investments		464,176			4,122		3.52			451,992			5,247		4.61
Commercial, financial, and agricultural loans		435,823			5,428		4.94			417,694			4,802		4.56
Real estate—commercial and construction loans		538,288			7,871		5.80			528,104			7,972		5.99
Real estate—residential loans		255,715			2,800		4.34			282,758			3,242		4.55
Loans to individuals		44,250			657		5.89			48,110			829		6.84
Municipal loans and leases		110,650			1,662		5.96			91,674			1,388		6.01
Lease financings		75,094			1,671		8.83			88,122			1,796		8.09
Gross loans and leases		1,459,820			20,089		5.46			1,456,462			20,029		5.46
Total interest-earning assets		1,923,996			24,211		4.99			1,908,454			25,276		5.25
Cash and due from banks		38,924								32,637
Reserve for loan and lease losses		(29,853	)							(19,445	)
Premises and equipment, net		34,862								33,274
Other assets		149,779								144,044
Total assets	$	2,117,708							$	2,098,964
Liabilities:
Interest-bearing checking deposits	$	179,117		$	61		0.14		$	162,764		$	57		0.14
Money market savings		301,674			239		0.31			296,676			342		0.46
Regular savings		454,358			578		0.50			367,825			714		0.77
Time deposits		432,881			2,339		2.14			491,356			4,171		3.37
Total time and interest-bearing deposits		1,368,030			3,217		0.93			1,318,621			5,284		1.59
Securities sold under agreements to repurchase		99,855			90		0.36			102,582			155		0.60
Other short-term borrowings		40,277			437		4.30			95,008			825		3.45
Long-term debt		5,000			48		3.81			44,810			315		2.79
Subordinated notes and capital securities		24,744			315		5.05			26,244			322		4.87
Total borrowings		169,876			890		2.08			268,644			1,617		2.39
Total interest-bearing liabilities		1,537,906			4,107		1.06			1,587,265			6,901		1.72
Demand deposits, non-interest bearing		274,583								228,815
Accrued expenses and other liabilities		34,174								42,617
Total liabilities		1,846,663								1,858,697
Shareholders’ Equity
Common stock		91,332								83,588
Additional paid-in capital		61,420								43,882
Retained earnings and other equity		118,293								112,797
Total shareholders’ equity		271,045								240,267
Total liabilities and shareholders’ equity	$	2,117,708							$	2,098,964
Net interest income				$	20,104							$	18,375
Net interest spread							3.93								3.53
Effect of net interest-free funding sources							0.22								0.29
Net interest margin							4.15	%							3.82	%
Ratio of average interest-earning assets to average interest-bearing liabilities		125.10	%							120.24	%

Notes:	For rate calculation purposes, average loan and lease categories include unearned discount.
	Nonaccrual loans and leases have been included in the average loan and lease balances.
	Loans held for sale have been included in the average loan balances.
	Tax-equivalent amounts for the three months ended September 30, 2010 and 2009 have been calculated using the Corporation’s federal applicable rate of 35.0%.

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential

	For the Nine Months Ended September 30,
	2010								2009
	Average			Income/		Average			Average			Income/		Average
Tax Equivalent Basis	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	24,727		$	50		0.27	%	$	3,602		$	8		0.30	%
U.S. Government obligations		143,238			2,332		2.18			105,565			2,743		3.47
Obligations of state and political subdivisions		108,287			5,289		6.53			103,389			5,206		6.73
Other debt and equity securities		176,317			5,640		4.28			218,169			8,005		4.91
Federal funds sold		—			—		—			77			—		—
Total interest-earning deposits, investments and federal funds sold		452,569			13,311		3.93			430,802			15,962		4.95
Commercial, financial, and agricultural loans		420,572			14,985		4.76			409,513			14,021		4.58
Real estate—commercial and construction loans		528,611			23,185		5.86			518,828			23,289		6.00
Real estate—residential loans		257,637			8,443		4.38			297,248			10,432		4.69
Loans to individuals		45,969			2,054		5.97			50,759			2,621		6.90
Municipal loans and leases		104,321			4,651		5.96			88,851			4,082		6.14
Lease financings		78,341			5,136		8.77			92,792			5,827		8.40
Gross loans and leases		1,435,451			58,454		5.44			1,457,991			60,272		5.53
Total interest-earning assets		1,888,020			71,765		5.08			1,888,793			76,234		5.40
Cash and due from banks		36,045								31,490
Reserve for loan and lease losses		(28,444	)							(16,358	)
Premises and equipment, net		34,908								33,011
Other assets		152,213								141,963
Total assets	$	2,082,742							$	2,078,899
Liabilities:
Interest-bearing checking deposits	$	177,776		$	180		0.14		$	161,213		$	199		0.17
Money market savings		291,841			832		0.38			312,888			1,389		0.59
Regular savings		438,832			2,020		0.62			343,897			2,211		0.86
Time deposits		434,334			7,993		2.46			515,755			13,603		3.53
Total time and interest-bearing deposits		1,342,783			11,025		1.10			1,333,753			17,402		1.74
Securities sold under agreements to repurchase		98,181			318		0.43			88,104			416		0.63
Other short-term borrowings		54,379			1,664		4.09			89,987			1,867		2.77
Long-term debt		5,485			142		3.46			61,899			1,654		3.57
Subordinated notes and capital securities		25,116			940		5.00			26,617			975		4.90
Total borrowings		183,161			3,064		2.24			266,607			4,912		2.46
Total interest-bearing liabilities		1,525,944			14,089		1.23			1,600,360			22,314		1.86
Demand deposits, non-interest bearing		253,238								220,789
Accrued expenses and other liabilities		33,560								39,909
Total liabilities		1,812,742								1,861,058
Shareholders’ Equity
Common stock		91,332								77,476
Additional paid-in capital		61,420								29,897
Retained earnings and other equity		117,248								110,468
Total shareholders’ equity		270,000								217,841
Total liabilities and shareholders’ equity	$	2,082,742							$	2,078,899
Net interest income				$	57,676							$	53,920
Net interest spread							3.85								3.54
Effect of net interest-free funding sources							0.23								0.28
Net interest margin							4.08	%							3.82	%
Ratio of average interest-earning assets to average interest-bearing liabilities		123.73	%							118.02	%

Notes:	For rate calculation purposes, average loan and lease categories include unearned discount.
	Nonaccrual loans and leases have been included in the average loan and lease balances.
	Loans held for sale have been included in the average loan balances.
	Tax-equivalent amounts for the six months ended September 30, 2010 and 2009 have been calculated using the Corporation’s federal applicable rate of 35.0%.