Univest Financial (UVSP) 8-K Univest Corporation of Pennsylvania — Univest 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
BANK AND TRUST CO. — REPORTS THIRD QUARTER EARNINGS

SOUDERTON, Pa., October 26, 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 third quarter. Univest reported net income of $5.2 million or $0.31 diluted earnings per share for the quarter ended September 30, 2011, compared to $4.1 million or $0.25 diluted earnings per share for the comparable period in the prior year. Net income for the nine months ended September 30, 2011 was $13.6 million or $0.81 diluted earnings per share, compared to $10.8 million or $0.65 diluted earnings per share for the comparable period in the prior year.

Deposits

Total deposits increased $103.8 million from June 30, 2011 and $38.8 million from December 31, 2010. The increase was primarily a result of an increase in public fund balances due to anticipated seasonal tax deposits as well as larger balances being maintained by existing public fund customers. Total public fund balances increased $103.2 million for the quarter and $53.9 million for the first nine months of 2011.

Loans

Gross loans and leases decreased $2.3 million from June 30, 2011 and $34.8 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 economic environment.

Net Interest Income and Margin

Net interest income decreased $337 thousand or 1.78% to $18.6 million in the third quarter of 2011 compared to the third quarter of 2010. The net interest margin on a tax-equivalent basis for the third quarter of 2011 was 4.15% compared to 4.24% during the second quarter of 2011 and remained level with 4.15% in the third quarter 2010. The decrease in the net interest margin during the third quarter was due to the inflow of public fund deposits, which were primarily invested in overnight fed funds during the quarter, as the Corporation’s cash position increased by $90.1 million from June 30, 2011 to September 30, 2011.

Net interest income of $56.4 million for the nine months ended September 30, 2011 increased $2.1 million or 3.81% compared to the nine months ended September 30, 2010. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2011 increased 13 basis points to 4.21% from 4.08% for the nine months ended September 30, 2010.

The year-to-date increases in the net interest income and the net interest margin 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 average year-to-date FHLB advances from $58.1 million for the nine months ended September 30, 2010 to $5.0 million for the nine months ended September 30, 2011. FHLB advances at September 30, 2011 remained at $5.0 million.

Non-Interest Income

Non-interest income for the quarter ended September 30, 2011 was $9.0 million, a slight increase of $90 thousand from the comparable period in the prior year. Non-interest income for the quarter included a net gain on sales of securities of $848 thousand, an increase of $509 thousand from the third quarter of 2010. These net securities gains were offset by a mortgage servicing right impairment of $672 thousand during the quarter primarily due to the decline in interest rates which increased the projected speeds of prepayment. This impairment is reflected in other income and is an increase of $260 thousand compared to the third quarter of 2010. Non-interest income also included increases in trust fee income of $175 thousand and bank owned life insurance income of $228 thousand. Additionally, the third quarter of 2010 was impacted by a fair value write-down on the ineffective portion of a fair value swap of $246 thousand, which was terminated in August, 2010. These favorable variances were offset by a $415 thousand decline in service charges on deposit accounts, primarily due to the amendments to Regulation E which were implemented on August 15, 2010; a $333 thousand decrease in the net gain on mortgage banking activities as a result of lower volume and net gains on sales; and a $150 thousand negative valuation adjustment on one real estate owned property.

Non-interest income for the nine months ended September 30, 2011 was $25.4 million, an increase of $279 thousand or 1.11% compared to $25.2 million for the nine months ended September 30, 2010. Non-interest income for the first nine months of 2011 included increases from trust fees of $425 thousand, investment advisory commissions and fees of $160 thousand, insurance commissions and fees of $105 thousand, bank owned life insurance income of $306 thousand, other service fee income of $260 thousand primarily related to interchange fees, and an increase in the net gain on sales of securities of $991 thousand. Additionally, the nine months ended September 30, 2010 was impacted by fair value write-downs on the ineffective portion of a fair value swap of $1.1 million, which was terminated in August 2010. These favorable variances were partially offset by a decline of $1.3 million in service charges on deposit accounts, mainly due to the amendments to Regulatory E which were implemented on August 15, 2010 and a decline of $965 thousand in the net gain on mortgage banking activities due to weaker mortgage demand in the first six months of the year. During the third quarter of 2011, mortgage demand has shown significant improvement due to re-financings. In addition, fair value write-downs on other real estate owned properties increased by $390 thousand and the first quarter of 2010 included a litigation settlement.

Non-Interest Expense

Non-interest expense for the third quarter of 2011 was $17.3 million, a slight increase of $124 thousand compared to the third quarter of 2010. Salaries and benefits expense increased by $113 thousand, due to increased incentive plan expenses, and other expenses increased $315 thousand primarily due to loan workout and legal expenses. The increases for the quarter were partially offset by a decline in deposit insurance premiums of $256 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 on the average consolidated total assets less average tangible equity.

For the nine months ended September 30, 2011, non-interest expense was $50.4 million, a decrease of $712 thousand or 1.39% compared to the same period in the prior year. This was attributed to a decline of $550 thousand in salaries and benefits as a result of higher deferred loan origination costs partially offset by higher commissions expense, restricted stock expense, employee incentive 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 $679 thousand in marketing and advertising expenses and a decline of $376 thousand in deposit insurance premiums. These decreases were partially offset by increases in premises and equipment and loan workout expenses.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $38.2 million at September 30, 2011 from $43.5 million at June 30, 2011 and $45.2 million at December 31, 2010. The decrease in non-accrual loans was mainly due to the partial charge-off and foreclosure on two commercial real estate loans for two borrowers. These loans represented $4.7 million in the aggregate, of which $1.7 million was charged-off during the quarter and the remaining $3.0 million was transferred to other real estate owned at September 30, 2011. Net loan and lease charge-offs were $5.2 million during the third quarter of 2011 compared to $5.8 million for both the second quarter of 2011 and the third quarter of 2010. For the nine months ended September 30, 2011, net loan and lease charge-offs were $14.2 million or 1.31% of average loans and leases compared to $11.2 million or 1.04% for the nine months ended September 30, 2010.

Nonperforming loans and leases as a percentage of total loans and leases equaled 2.96% at September 30, 2011 compared to 3.42% at June 30, 2011 and 2.37% at September 30, 2010. Other real estate owned increased from $5.0 million at June 30, 2011 to $7.7 million at September 30, 2011 primarily due to the addition of two commercial properties during the quarter as previously discussed. As of September 30, 2011, a total of seven properties remain in other real estate owned with three properties totaling $993 thousand under agreements of sale.

The provision for loan and lease losses declined to $3.6 million for the third quarter of 2011 compared to $5.6 million for the quarter ended June 30, 2011 and $5.5 million for the quarter ended September 30, 2010. The allowance for loan and lease losses as a percentage of total loans and leases was 2.16% at September 30, 2011 compared to 2.27% at June 30, 2011 and 1.97% at September 30, 2010. The allowance for loan and lease losses to nonperforming loans and leases equaled 72.85% at September 30, 2011, which increased from 66.26% at June 30, 2011. The allowance for loan and lease losses to nonperforming loans and leases was 83.10% at September 30, 2010.

Capital

Univest continues to remain well-capitalized at September 30, 2011. Univest’s total risk-based capital at September 30, 2011 was 16.00%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.

During the quarter, Univest deployed $742 thousand of capital to repurchase 56,408 shares of common stock through the stock repurchase program. Maximum shares available for future repurchases through the plan at September 30, 2011 was 587,374. Total shares outstanding at September 30, 2011 were 16,727,099.

Dividend

On October 3, 2011, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 6.17% 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
September 30, 2011

(Dollars in thousands)

Balance Sheet (Period End)	09/30/11		06/30/11		03/31/11		12/31/10		09/30/10
Assets	$	2,174,127	$	2,058,377	$	2,108,579	$	2,133,893	$	2,114,204
Securities		412,340		418,020		445,798		467,024		420,998
Loans held for sale		1,724		2,102		1,451		4,178		3,801
Loans and leases, gross		1,436,411		1,438,707		1,442,137		1,471,186		1,467,382
Allowance for loan and lease losses		31,002		32,601		32,804		30,898		28,883
Loans and leases, net		1,405,409		1,406,106		1,409,333		1,440,288		1,438,499
Total deposits		1,725,063		1,621,294		1,665,225		1,686,270		1,677,641
Non-interest bearing deposits		275,930		277,515		280,337		271,125		272,805
NOW, Money Market and Savings		1,016,651		967,554		974,158		997,395		969,254
Time deposits		432,482		376,225		410,730		417,750		435,582
Borrowings		135,490		127,689		125,545		143,865		128,905
Shareholders’ equity		275,099		273,022		268,673		266,224		270,773

	For the three months ended,										For the nine months ended,
Balance Sheet (Average)	09/30/11		06/30/11		03/31/11		12/31/10		09/30/10		09/30/11		09/30/10
Assets	$	2,113,446	$	2,096,173	$	2,106,276	$	2,125,112	$	2,117,708	$	2,105,242	$	2,082,742
Securities		409,376		439,606		444,662		449,031		431,193		431,085		427,842
Loans and leases, gross		1,445,344		1,451,076		1,461,037		1,461,766		1,459,820		1,452,428		1,435,451
Deposits		1,672,452		1,655,812		1,670,062		1,689,701		1,642,613		1,666,118		1,596,021
Shareholders’ equity		275,502		272,952		268,343		271,945		271,045		272,293		270,000

Asset Quality Data (Period End)	09/30/11			06/30/11			03/31/11			12/31/10			09/30/10
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases	$	38,180		$	43,513		$	38,631		$	45,232		$	33,043
Accruing loans and leases 90 days or more past due		449			659			516			696			899
Accruing troubled debt restructured loans and leases		3,925			5,028			5,111			550			813
Other real estate owned		7,711			4,952			6,135			2,438			1,557
Nonperforming assets		50,265			54,152			50,393			48,916			36,312
Allowance for loan and lease losses		31,002			32,601			32,804			30,898			28,883
Nonperforming loans and leases / Loans and leases		2.96	%		3.42	%		3.07	%		3.16	%		2.37	%
Allowance for loan and lease losses / Loans and leases		2.16	%		2.27	%		2.27	%		2.10	%		1.97	%
Allowance for loan and lease losses / Nonperforming loans		72.85	%		66.26	%		74.12	%		66.48	%		83.10	%

	For the three months ended,															For the nine months ended,
	09/30/11			06/30/11			03/31/11			12/31/10			09/30/10			09/30/11			09/30/10
Net loan and lease charge-offs	$	5,248		$	5,759		$	3,228		$	4,261		$	5,755		$	14,235		$	11,204
Net loan and lease charge-offs (annualized)/Average loans and leases		1.44	%		1.59	%		0.90	%		1.16	%		1.56	%		1.31	%		1.04	%

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

(Dollars in thousands, except per share data)

	For the three months ended,															For the nine months ended,
For the period:	09/30/11			06/30/11			03/31/11			12/31/10			09/30/10			09/30/11			09/30/10
Interest income	$	21,237		$	21,704		$	21,706		$	22,580		$	23,060		$	64,647		$	68,423
Interest expense		2,621			2,723			2,897			3,380			4,107			8,241			14,089
Net interest income		18,616			18,981			18,809			19,200			18,953			56,406			54,334
Provision for loan and lease losses		3,649			5,556			5,134			6,276			5,529			14,339			15,289
Net interest income after provision		14,967			13,425			13,675			12,924			13,424			42,067			39,045
Noninterest income:
Trust fee income		1,625			1,625			1,625			1,630			1,450			4,875			4,450
Service charges on deposit accounts		1,218			1,356			1,336			1,466			1,633			3,910			5,227
Investment advisory commission and fee income		1,239			1,194			1,162			1,191			1,227			3,595			3,435
Insurance commissions and fee income		1,787			2,072			2,200			1,740			1,815			6,059			5,954
Bank owned life insurance income		554			268			344			410			326			1,166			860
Other-than-temporary impairment		(1	)		(3	)		(7	)		(3	)		(12	)		(11	)		(59	)
Net gain on sales of securities		848			569			—			6			339			1,417			426
Net gain (loss) on mortgage banking activities		913			328			(25	)		779			1,246			1,216			2,181
Net loss on interest rate swap		—			—			—			—			(246	)		—			(1,072	)
Other income		791			1,287			1,124			2,049			1,106			3,202			3,748
Total noninterest income		8,974			8,696			7,759			9,268			8,884			25,429			25,150
Noninterest expense
Salaries and benefits		9,888			9,634			8,983			8,979			9,775			28,505			29,055
Premises and equipment		2,387			2,326			2,527			2,351			2,435			7,240			6,936
Deposit insurance premiums		442			427			713			712			698			1,582			1,958
Other expense		4,578			4,019			4,523			4,148			4,263			13,120			13,210
Total noninterest expense		17,295			16,406			16,746			16,190			17,171			50,447			51,159
Income before taxes		6,646			5,715			4,688			6,002			5,137			17,049			13,036
Applicable income taxes		1,402			1,199			826			1,093			990			3,427			2,189
Net income	$	5,244		$	4,516		$	3,862		$	4,909		$	4,147		$	13,622		$	10,847
Per Common Share Data:
Book value per share	$	16.45		$	16.27		$	16.04		$	15.99		$	16.29		$	16.45		$	16.29
Net income per share:
Basic	$	0.31		$	0.27		$	0.23		$	0.30		$	0.25		$	0.81		$	0.65
Diluted	$	0.31		$	0.27		$	0.23		$	0.30		$	0.25		$	0.81		$	0.65
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.60		$	0.60
Weighted average shares outstanding		16,770,741			16,771,969			16,712,282			16,645,115			16,621,291			16,751,949			16,582,493
Period end shares outstanding		16,727,099			16,777,379			16,745,935			16,648,303			16,626,900			16,727,099			16,626,900

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

	For the three months ended,															For the nine months ended,
Profitability Ratios (annualized)	09/30/11			06/30/11			03/31/11			12/31/10			09/30/10			09/30/11			09/30/10
Return on average assets		0.98	%		0.86	%		0.74	%		0.92	%		0.78	%		0.87	%		0.70	%
Return on average shareholders’ equity		7.55	%		6.64	%		5.84	%		7.16	%		6.07	%		6.69	%		5.37	%
Net interest margin (FTE)		4.15	%		4.24	%		4.24	%		4.18	%		4.15	%		4.21	%		4.08	%
Efficiency ratio (1)		59.35	%		56.47	%		59.90	%		54.20	%		58.88	%		58.56	%		61.42	%
Capitalization Ratios
Dividends paid to net income		64.00	%		74.27	%		86.30	%		67.85	%		80.15	%		73.73	%		91.78	%
Shareholders’ equity to assets (Period End)		12.65	%		13.26	%		12.74	%		12.48	%		12.81	%		12.65	%		12.81	%
Tangible common equity to tangible assets		10.34	%		10.80	%		10.32	%		10.08	%		10.46	%		10.34	%		10.46	%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		11.84	%		11.87	%		11.72	%		11.54	%		11.51	%		11.84	%		11.51	%
Tier 1 risk-based capital ratio		14.73	%		14.96	%		14.59	%		14.17	%		14.14	%		14.73	%		14.14	%
Total risk-based capital ratio		16.00	%		16.25	%		15.89	%		15.47	%		15.45	%		16.00	%		15.45	%

(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,

	2011								2010
	Average			Income/		Average			Average			Income/		Average
Tax Equivalent Basis	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	46,109		$	25		0.22	%	$	32,983		$	20		0.24	%
U.S. Government obligations		129,263			509		1.56			156,579			669		1.70
Obligations of state and political subdivisions		112,935			1,720		6.04			109,376			1,746		6.33
Other debt and equity securities		167,178			1,347		3.20			165,238			1,687		4.05
Total interest-earning deposits and investments		455,485			3,601		3.14			464,176			4,122		3.52
Commercial, financial, and agricultural loans		435,805			4,930		4.49			435,823			5,428		4.94
Real estate—commercial and construction loans		528,936			7,308		5.48			538,288			7,871		5.80
Real estate—residential loans		247,332			2,684		4.31			255,715			2,800		4.34
Loans to individuals		42,358			594		5.56			44,250			657		5.89
Municipal loans and leases		132,147			1,741		5.23			110,650			1,662		5.96
Lease financings		58,766			1,634		11.03			75,094			1,671		8.83
Gross loans and leases		1,445,344			18,891		5.19			1,459,820			20,089		5.46
Total interest-earning assets		1,900,829			22,492		4.69			1,923,996			24,211		4.99
Cash and due from banks		57,572								38,924
Reserve for loan and lease losses		(34,104	)							(29,853	)
Premises and equipment, net		34,257								34,862
Other assets		154,892								149,779
Total assets	$	2,113,446							$	2,117,708
Liabilities:
Interest-bearing checking deposits	$	210,499		$	57		0.11		$	179,117		$	61		0.14
Money market savings		291,830			167		0.23			301,674			239		0.31
Regular savings		483,341			349		0.29			454,358			578		0.50
Time deposits		394,509			1,597		1.61			432,881			2,339		2.14
Total time and interest-bearing deposits		1,380,179			2,170		0.62			1,368,030			3,217		0.93
Securities sold under agreements to repurchase		104,458			78		0.30			99,855			90		0.36
Other short-term borrowings		11			18		N/M			40,277			437		4.30
Long-term debt		5,000			48		3.81			5,000			48		3.81
Subordinated notes and capital securities		23,240			307		5.24			24,744			315		5.05
Total borrowings		132,709			451		1.35			169,876			890		2.08
Total interest-bearing liabilities		1,512,888			2,621		0.69			1,537,906			4,107		1.06
Demand deposits, non-interest bearing		292,273								274,583
Accrued expenses and other liabilities		32,783								34,174
Total liabilities		1,837,944								1,846,663
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,473								61,420
Retained earnings and other equity		122,697								118,293
Total shareholders’ equity		275,502								271,045
Total liabilities and shareholders’ equity	$	2,113,446							$	2,117,708
Net interest income				$	19,871							$	20,104
Net interest spread							4.00								3.93
Effect of net interest-free funding sources							0.15								0.22
Net interest margin							4.15	%							4.15	%
Ratio of average interest-earning assets to average interest-bearing liabilities		125.64	%							125.10	%

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, 2011 and 2010 have been calculated using the Corporation’s federal applicable rate of 35.0%.
	N/M - not meaningful

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

For the Nine Months Ended September 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	$	24,076		$	40		0.22	%	$	24,727		$	50		0.27	%
U.S. Government obligations		150,902			1,865		1.65			143,238			2,332		2.18
Obligations of state and political subdivisions		110,730			5,153		6.22			108,287			5,289		6.53
Other debt and equity securities		169,453			4,403		3.47			176,317			5,640		4.28
Total interest-earning deposits and investments		455,161			11,461		3.37			452,569			13,311		3.93
Commercial, financial, and agricultural loans		431,983			15,048		4.66			420,572			14,985		4.76
Real estate—commercial and construction loans		542,926			21,958		5.41			528,611			23,185		5.86
Real estate—residential loans		245,889			8,082		4.39			257,637			8,443		4.38
Loans to individuals		42,428			1,817		5.73			45,969			2,054		5.97
Municipal loans and leases		127,843			5,152		5.39			104,321			4,651		5.96
Lease financings		61,359			4,819		10.50			78,341			5,136		8.77
Gross loans and leases		1,452,428			56,876		5.24			1,435,451			58,454		5.44
Total interest-earning assets		1,907,589			68,337		4.79			1,888,020			71,765		5.08
Cash and due from banks		41,205								36,045
Reserve for loan and lease losses		(33,506	)							(28,444	)
Premises and equipment, net		34,393								34,908
Other assets		155,561								152,213
Total assets	$	2,105,242							$	2,082,742
Liabilities:
Interest-bearing checking deposits	$	204,619		$	180		0.12		$	177,776		$	180		0.14
Money market savings		292,620			542		0.25			291,841			832		0.38
Regular savings		482,026			1,186		0.33			438,832			2,020		0.62
Time deposits		403,729			5,018		1.66			434,334			7,993		2.46
Total time and interest-bearing deposits		1,382,994			6,926		0.67			1,342,783			11,025		1.10
Securities sold under agreements to repurchase		100,695			227		0.30			98,181			318		0.43
Other short-term borrowings		4,555			29		0.85			54,379			1,664		4.09
Long-term debt		5,000			142		3.80			5,485			142		3.46
Subordinated notes and capital securities		23,615			917		5.19			25,116			940		5.00
Total borrowings		133,865			1,315		1.31			183,161			3,064		2.24
Total interest-bearing liabilities		1,516,859			8,241		0.73			1,525,944			14,089		1.23
Demand deposits, non-interest bearing		283,124								253,238
Accrued expenses and other liabilities		32,966								33,560
Total liabilities		1,832,949								1,812,742
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,452								61,420
Retained earnings and other equity		119,509								117,248
Total shareholders’ equity		272,293								270,000
Total liabilities and shareholders’ equity	$	2,105,242							$	2,082,742
Net interest income				$	60,096							$	57,676
Net interest spread							4.06								3.85
Effect of net interest-free funding sources							0.15								0.23	%
Net interest margin							4.21	%							4.08
Ratio of average interest-earning assets to average interest-bearing liabilities		125.76	%							123.73	%

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