Univest Financial (UVSP) 8-K Univest Corporation of Pennsylvania — Univest Bank and Trust Co. — Reports Second 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
BANK AND TRUST CO. — REPORTS SECOND QUARTER EARNINGS

SOUDERTON, Pa., July 27, 2011 — Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest Bank and Trust Co., a full-service financial institution with 135 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 second quarter. Univest reported net income of $4.5 million or $0.27 diluted earnings per share for the quarter ended June 30, 2011, compared to $3.7 million or $0.23 diluted earnings per share for the comparable period in the prior year. Net income for the six months ended June 30, 2011 was $8.4 million or $0.50 diluted earnings per share, compared to $6.7 million or $0.40 diluted earnings per share for the comparable period in the prior year.

Deposits

Total deposits decreased $43.9 million for the quarter and $65.0 million year to date. The decrease was primarily a result of a decline of public fund balances due to anticipated seasonal runoff of tax deposits. Total public fund balances decreased $29.9 million for the quarter and $49.2 million for the first six months.

Loans

Gross loans and leases decreased $3.4 million from March 31, 2011 and $32.5 million from December 31, 2010, primarily due to continued light credit demand and utilization of lines by businesses and consumers as a result of the prolonged challenging and uncertain economic environment.

Net Interest Income and Margin

Net interest income increased $705 thousand or 3.86% to $19.0 million in the second quarter of 2011 compared to the second quarter of 2010. The net interest margin on a tax-equivalent basis for the second quarter of 2011 remained at 4.24% from the first quarter ended March 31, 2011 and increased 13 basis points compared to 4.11% in the second quarter 2010.

Net interest income of $37.8 million for the first six months ended June 30, 2011 increased $2.4 million or 6.81% compared to the six months ended June 30, 2010. The net interest margin on a tax-equivalent basis for the six months ended June 30, 2011 increased 19 basis points to 4.24% from 4.05% for the six months ended June 30, 2010.

The increases in the net interest income and the net interest margin year to date were a result of declines in the cost of interest-bearing liabilities, primarily time deposits. The increases were also attributed to declines in the volume of Federal Home Loan Bank (FHLB) borrowings, exceeding the declines in yields on total interest-earning assets. The Corporation repaid its maturing FHLB advances in 2010 reducing FHLB advances from $54 million at June 30, 2010 to $5 million at December 31, 2010. FHLB advances at June 30, 2011 remained at $5 million.

Non-Interest Income

For the quarter ended June 30, 2011, Univest reported total non-interest income of $8.7 million compared to $8.1 million for the comparable period in the prior year. This $637 thousand or 7.90% increase was mainly attributed to a $569 thousand net gain on sales of securities primarily from the sale of mortgage-backed securities. Other factors contributing to the overall increase were an increase in insurance commissions and fee income of $176 thousand and an increase in trust fee income of $125 thousand. The increase in non-interest income was partially offset by a $456 thousand decline in service charges on deposit accounts primarily due to the amendments to Regulation E which were implemented on August 15, 2010; and a $260 thousand negative valuation adjustment for an other real estate owned commercial property based on the updated fair value. Additionally, the second quarter of 2010 was impacted by a net loss on the ineffective portion of a fair value swap of $516 thousand, which was terminated in August, 2010.

Total non-interest income for the six months ended June 30, 2011 was $16.5 million compared to $16.3 million for the six months ended June 30, 2010. The increase of $189 thousand was a result of increases from the sale of securities of $482 thousand, trust fee income of $250 thousand, investment advisory commissions and fees of $148 thousand and insurance commissions and fees of $133 thousand. The increase was offset by a decline of $902 thousand of service charges on deposit accounts, mainly due to the amendments to Regulatory E which were implemented on August 15, 2010; a decline of $632 thousand of net gain on mortgage banking activities as a result of negative fair value adjustments on the mortgage pipeline, as mortgage demand has softened due to a continued slow purchase market for housing; a net change of $254 thousand attributed to fair value write-downs on other real estate owned commercial property; and a litigation settlement in the first quarter of 2010. Additionally, the six months ended June 30, 2010 was impacted by a net loss on the ineffective portion of a fair value swap of $826 thousand, which was terminated in August, 2010.

Non-Interest Expense

Non-interest expense for the second quarter of 2011 decreased $503 thousand or 3.00% compared to the second quarter of 2010 as a result of a decline in deposit insurance premiums of $236 thousand mainly due to the amended assessment calculation requirement through the FDIC rule implemented April 1, 2011. The payment was formerly based on deposits whereas the rule change now bases the payment off of the average consolidated total assets less average tangible equity. Additionally, the decrease was attributed to a $524 thousand decline in marketing and advertising expenses during the quarter. These decreases for the quarter were partially offset by premises and equipment expenses and increases in salaries and benefits.

For the six months ended June 30, 2011, non-interest expenses decreased $836 thousand or 2.46% compared to the same period in the prior year. This was attributed to a decline of $663 thousand in salaries and benefits as a result of higher deferred loan origination costs partially offset by higher commissions expense, restricted stock expense and salaries and benefits expense to grow the mortgage banking business. The Corporation implemented higher deferred loan origination costs commencing during the fourth quarter of 2010 based upon an in-depth study performed which incorporated management’s additional review time in connection with the loan approval process in the current environment. Additionally, the decrease was a result of a decline of $120 thousand in deposit insurance premiums and a $619 thousand decline in marketing and advertising expenses. These decreases were partially offset by an increase in premises and equipment expense.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, were $43.5 million at June 30, 2011 compared to $38.6 million at March 31, 2011 and $45.2 million at December 31, 2010. The increase in non-accrual loans was mainly due to the migration of one large Shared National Credit to a theatre to non-accrual status. This relationship represented $11.3 million in the aggregate of which $2.6 million was charged-off during the quarter and the remaining $8.7 million was moved to non-accrual with sufficient estimated collateral at June 30, 2011. The theatre continues to be open and operating. As a result of the $2.6 million charge-off, net loan and lease charge-offs increased from $3.2 million for the previous three months to $5.8 million at June 30, 2011. For the six months ended June 30, 2011, net loan and lease charge-offs were $9.0 million or 1.24% of average loans and leases compared to $5.4 million or 0.77% for the six months ended June 30, 2010.

Nonperforming loans and leases as a percentage of total loans and leases equaled 3.42% at June 30, 2011 compared to 3.07% at March 31, 2011 and 2.23% at June 30, 2010. Other real estate owned decreased from $6.1 million at March 31, 2011 to $5.0 million at June 30, 2011 due to the sale of one commercial property.

The provision for loan and lease losses was $5.6 million for the second quarter of 2011 compared to $5.1 million for the quarter ended March 31, 2011 and $4.9 million for the quarter ended June 30, 2010. The allowance for loan and lease losses as a percentage of total loans and leases for both the first and second quarters of 2011 was 2.27% compared to 2.01% at June 30, 2010. The allowance for loan and lease losses to nonperforming loans and leases equaled 66.26% at June 30, 2011, which declined from 74.12% at March 31, 2011. The allowance for loan and lease losses to nonperforming loans and leases was 90.08% at June 30, 2010.

Capital

Univest continues to remain well-capitalized at June 20, 2011. Univest’s total risk-based capital at June 30, 2011 was 16.25%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.

Dividend

On July 1, 2011, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.96% 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. 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
June 30, 2011

(Dollars in thousands)

Balance Sheet (Period End)	06/30/11		03/31/11		12/31/10		09/30/10		06/30/10
Assets	$	2,058,377	$	2,108,579	$	2,133,893	$	2,114,204	$	2,088,572
Securities		418,020		445,798		467,024		420,998		434,677
Loans held for sale		2,102		1,451		4,178		3,801		2,485
Loans and leases, gross		1,438,707		1,442,137		1,471,186		1,467,382		1,449,147
Allowance for loan and lease losses		32,601		32,804		30,898		28,883		29,109
Loans and leases, net		1,406,106		1,409,333		1,440,288		1,438,499		1,420,038
Total deposits		1,621,294		1,665,225		1,686,270		1,677,641		1,609,772
Non-interest bearing deposits		277,515		280,337		271,125		272,805		255,880
NOW, Money Market and Savings		967,554		974,158		997,395		969,254		924,242
Time deposits		376,225		410,730		417,750		435,582		429,650
Borrowings		127,689		125,545		143,865		128,905		171,824
Shareholders’ equity		273,022		268,673		266,224		270,773		269,524

	For the three months ended,										For the six months ended,
Balance Sheet (Average)	06/30/11		03/31/11		12/31/10		09/30/10		06/30/10		06/30/11		06/30/10
Assets	$	2,096,173	$	2,106,276	$	2,125,112	$	2,117,708	$	2,090,930	$	2,101,074	$	2,064,970
Securities		439,606		444,662		449,031		431,193		442,902		442,120		426,138
Loans and leases, gross		1,451,076		1,461,037		1,461,766		1,459,820		1,425,278		1,456,029		1,423,066
Deposits		1,655,812		1,670,062		1,689,701		1,642,613		1,606,621		1,662,899		1,572,338
Shareholders’ equity		272,952		268,343		271,945		271,045		269,902		270,661		269,469

Asset Quality Data (Period End)	06/30/11			03/31/11			12/31/10			09/30/10			06/30/10
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases	$	43,513		$	38,631		$	45,232		$	33,043		$	29,541
Accruing loans and leases 90 days or more past due		659			516			696			899			1,276
Accruing troubled debt restructured loans and leases		5,028			5,111			550			813			1,499
Other real estate owned		4,952			6,135			2,438			1,557			1,827
Nonperforming assets		54,152			50,393			48,916			36,312			34,143
Allowance for loan and lease losses		32,601			32,804			30,898			28,883			29,109
Nonperforming loans and leases / Loans and leases		3.42	%		3.07	%		3.16	%		2.37	%		2.23	%
Allowance for loan and lease losses / Loans and leases		2.27	%		2.27	%		2.10	%		1.97	%		2.01	%
Allowance for loan and lease losses / Nonperforming loans		66.26	%		74.12	%		66.48	%		83.10	%		90.08	%

	For the three months ended,															For the six months ended
	06/30/11			03/31/11			12/31/10			09/30/10			06/30/10			06/30/11			06/30/10
Net loan and lease charge-offs	$	5,759		$	3,228		$	4,261		$	5,755		$	2,821		$	8,987		$	5,449
Net loan and lease charge-offs (annualized)/Average loans and leases		1.59	%		0.90	%		1.16	%		1.56	%		0.79	%		1.24	%		0.77	%

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2011

(Dollars in thousands, except per share data)

	For the three months ended,															For the six months ended,
For the period:	06/30/11			03/31/11			12/31/10			09/30/10			06/30/10			06/30/11			06/30/10
Interest income	$	21,704		$	21,706		$	22,580		$	23,060		$	22,878		$	43,410		$	45,363
Interest expense		2,723			2,897			3,380			4,107			4,602			5,620			9,982
Net interest income		18,981			18,809			19,200			18,953			18,276			37,790			35,381
Provision for loan and lease losses		5,556			5,134			6,276			5,529			4,865			10,690			9,760
Net interest income after provision		13,425			13,675			12,924			13,424			13,411			27,100			25,621
Noninterest income:
Trust fee income		1,625			1,625			1,630			1,450			1,500			3,250			3,000
Service charges on deposit accounts		1,356			1,336			1,466			1,633			1,812			2,692			3,594
Investment advisory commission and fee income		1,194			1,162			1,191			1,227			1,152			2,356			2,208
Insurance commissions and fee income		2,072			2,200			1,740			1,815			1,896			4,272			4,139
Bank owned life insurance income		268			344			410			326			202			612			534
Other-than-temporary impairment		(3	)		(7	)		(3	)		(12	)		(42	)		(10	)		(47	)
Net gain on sales of securities		569			—			6			339			38			569			87
Net gain (loss) on mortgage banking activities		328			(25	)		779			1,246			475			303			935
Net loss on interest rate swap		—			—			—			(246	)		(516	)		—			(826	)
Other income		1,287			1,124			2,049			1,106			1,542			2,411			2,642
Total noninterest income		8,696			7,759			9,268			8,884			8,059			16,455			16,266
Noninterest expense
Salaries and benefits		9,634			8,983			8,979			9,775			9,469			18,617			19,280
Premises and equipment		2,326			2,527			2,351			2,435			2,209			4,853			4,501
Deposit insurance premiums		427			713			712			698			663			1,140			1,260
Other expense		4,019			4,523			4,148			4,263			4,568			8,542			8,947
Total noninterest expense		16,406			16,746			16,190			17,171			16,909			33,152			33,988
Income before taxes		5,715			4,688			6,002			5,137			4,561			10,403			7,899
Applicable income taxes		1,199			826			1,093			990			831			2,025			1,199
Net income	$	4,516		$	3,862		$	4,909		$	4,147		$	3,730		$	8,378		$	6,700
Per Common Share Data:
Book value per share	$	16.27		$	16.04		$	15.99		$	16.29		$	16.25		$	16.27		$	16.25
Net income per share:
Basic	$	0.27		$	0.23		$	0.30		$	0.25		$	0.23		$	0.50		$	0.40
Diluted	$	0.27		$	0.23		$	0.30		$	0.25		$	0.23		$	0.50		$	0.40
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.40		$	0.40
Weighted average shares outstanding		16,771,969			16,712,282			16,645,115			16,621,291			16,589,657			16,742,434			16,562,712
Period end shares outstanding		16,777,379			16,745,935			16,648,303			16,626,900			16,590,710			16,777,379			16,590,710

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2011

	For the three months ended,															For the six months ended,
	06/30/11			03/31/11			12/31/10			09/30/10			06/30/10			06/30/11			06/30/10
Profitability Ratios (annualized)
Return on average assets		0.86	%		0.74	%		0.92	%		0.78	%		0.72	%		0.80	%		0.65	%
Return on average shareholders’ equity		6.64	%		5.84	%		7.16	%		6.07	%		5.54	%		6.24	%		5.01	%
Net interest margin (FTE)		4.24	%		4.24	%		4.18	%		4.15	%		4.11	%		4.24	%		4.05	%
Efficiency ratio (1)		56.47	%		59.90	%		54.20	%		58.88	%		61.32	%		58.15	%		62.80	%
Capitalization Ratios
Dividends paid to net income		74.27	%		86.30	%		67.85	%		80.15	%		88.95	%		79.82	%		98.97	%
Shareholders’ equity to assets (Period End)		13.26	%		12.74	%		12.48	%		12.81	%		12.90	%		13.26	%		12.90	%
Tangible common equity to tangible assets		10.80	%		10.32	%		10.08	%		10.46	%		10.51	%		10.80	%		10.51	%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		11.87	%		11.72	%		11.54	%		11.51	%		11.57	%		11.87	%		11.57	%
Tier 1 risk-based capital ratio		14.96	%		14.59	%		14.17	%		14.14	%		14.25	%		14.96	%		14.25	%
Total risk-based capital ratio		16.25	%		15.89	%		15.47	%		15.45	%		15.58	%		16.25	%		15.58	%

(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 June 30,
	2011								2010
	Average			Income/		Average			Average			Income/		Average
Tax Equivalent Basis	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	19,401		$	12		0.25	%	$	26,700		$	19		0.29	%
U.S. Government obligations		153,239			639		1.67			158,505			922		2.33
Obligations of state and political subdivisions		110,187			1,712		6.23			108,820			1,803		6.65
Other debt and equity securities		176,180			1,527		3.48			175,577			1,933		4.42
Total interest-earning deposits and investments		459,007			3,890		3.40			469,602			4,677		3.99
Commercial, financial, and agricultural loans		431,427			4,947		4.60			415,943			4,892		4.72
Real estate—commercial and construction loans		541,862			7,399		5.48			523,306			7,752		5.94
Real estate—residential loans		245,996			2,757		4.50			256,296			2,785		4.36
Loans to individuals		41,924			597		5.71			46,185			599		5.20
Municipal loans and leases		128,799			1,680		5.23			104,720			1,564		5.99
Lease financings		61,068			1,667		10.96			78,828			1,742		8.86
Gross loans and leases		1,451,076			19,047		5.26			1,425,278			19,334		5.44
Total interest-earning assets		1,910,083			22,937		4.82			1,894,880			24,011		5.08
Cash and due from banks		29,706								37,510
Reserve for loan and lease losses		(33,995	)							(28,864	)
Premises and equipment, net		34,302								35,002
Other assets		156,077								152,402
Total assets	$	2,096,173							$	2,090,930
Liabilities:
Interest-bearing checking deposits	$	210,487		$	59		0.11		$	182,156		$	62		0.14
Money market savings		277,420			174		0.25			293,697			277		0.38
Regular savings		481,312			374		0.31			445,781			661		0.59
Time deposits		405,829			1,683		1.66			435,969			2,588		2.38
Total time and interest-bearing deposits		1,375,048			2,290		0.67			1,357,603			3,588		1.06
Securities sold under agreements to repurchase		101,093			78		0.31			98,802			111		0.45
Other short-term borrowings		3,498			2		0.23			51,936			542		4.19
Long-term debt		5,000			47		3.77			5,717			48		3.37
Subordinated notes and capital securities		23,619			306		5.20			25,119			313		5.00
Total borrowings		133,210			433		1.30			181,574			1,014		2.24
Total interest-bearing liabilities		1,508,258			2,723		0.72			1,539,177			4,602		1.20
Demand deposits, non-interest bearing		280,764								249,018
Accrued expenses and other liabilities		34,199								32,833
Total liabilities		1,823,221								1,821,028
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,469								61,420
Retained earnings and other equity		120,151								117,150
Total shareholders’ equity		272,952								269,902
Total liabilities and shareholders’ equity	$	2,096,173							$	2,090,930
Net interest income				$	20,214							$	19,409
Net interest spread							4.10								3.88
Effect of net interest-free funding sources							0.14								0.23
Net interest margin							4.24	%							4.11	%
Ratio of average interest-earning assets to average interest-bearing liabilities		126.64	%							123.11	%

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 June 30, 2011 and 2010 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 Six Months Ended June 30,
	2011								2010
	Average			Income/		Average			Average			Income/		Average
Tax Equivalent Basis	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	12,876		$	15		0.23	%	$	20,531		$	30		0.29	%
U.S. Government obligations		161,900			1,356		1.69			136,457			1,663		2.46
Obligations of state and political subdivisions		109,610			3,433		6.32			107,733			3,543		6.63
Other debt and equity securities		170,610			3,056		3.61			181,948			3,953		4.38
Total interest-earning deposits and investments		454,996			7,860		3.48			446,669			9,189		4.15
Commercial, financial, and agricultural loans		430,039			10,118		4.74			412,820			9,557		4.67
Real estate—commercial and construction loans		550,038			14,650		5.37			523,693			15,314		5.90
Real estate—residential loans		245,155			5,398		4.44			258,615			5,643		4.40
Loans to individuals		42,464			1,223		5.81			46,843			1,397		6.01
Municipal loans and leases		125,656			3,411		5.47			101,104			2,989		5.96
Lease financings		62,677			3,185		10.25			79,991			3,465		8.74
Gross loans and leases		1,456,029			37,985		5.26			1,423,066			38,365		5.44
Total interest-earning assets		1,911,025			45,845		4.84			1,869,735			47,554		5.13
Cash and due from banks		32,886								34,582
Reserve for loan and lease losses		(33,203	)							(27,728	)
Premises and equipment, net		34,462								34,931
Other assets		155,904								153,450
Total assets	$	2,101,074							$	2,064,970
Liabilities:
Interest-bearing checking deposits	$	201,630		$	123		0.12		$	177,095		$	119		0.14
Money market savings		293,022			375		0.26			286,843			593		0.42
Regular savings		481,358			837		0.35			430,940			1,442		0.67
Time deposits		408,416			3,421		1.69			435,072			5,654		2.62
Total time and interest-bearing deposits		1,384,426			4,756		0.69			1,329,950			7,808		1.18
Securities sold under agreements to repurchase		98,782			149		0.30			97,330			228		0.47
Other short-term borrowings		6,865			11		0.32			61,547			1,227		4.02
Long-term debt		5,000			94		3.79			5,732			94		3.31
Subordinated notes and capital securities		23,805			610		5.17			25,305			625		4.98
Total borrowings		134,452			864		1.30			189,914			2,174		2.31
Total interest-bearing liabilities		1,518,878			5,620		0.75			1,519,864			9,982		1.32
Demand deposits, non-interest bearing		278,473								242,388
Accrued expenses and other liabilities		33,062								33,249
Total liabilities		1,830,413								1,795,501
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,441								61,420
Retained earnings and other equity		117,888								116,717
Total shareholders’ equity		270,661								269,469
Total liabilities and shareholders’ equity	$	2,101,074							$	2,064,970
Net interest income				$	40,225							$	37,572
Net interest spread							4.09								3.81
Effect of net interest-free funding sources							0.15								0.24
Net interest margin							4.24	%							4.05	%
Ratio of average interest-earning assets to average interest-bearing liabilities		125.82	%							123.02	%

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 June 30, 2011 and 2010 have been calculated using the Corporation’s federal applicable rate of 35.0%.