Univest Financial (UVSP) 8-K Results of Operations and Financial Condition

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 25, 2012 – Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and small ticket leasing subsidiaries, today announced financial results for the quarter ended June 30, 2012. Univest reported net income of $4.8 million or $0.28 diluted earnings per share for the quarter ended June 30, 2012, a 5% increase in net income compared to $4.5 million or $0.27 diluted earnings per share for the quarter ended June 30, 2011. Net income for the six months ended June 30, 2012 was $10.0 million or $0.60 diluted earnings per share, compared to $8.4 million or $0.50 diluted earnings per share for the comparable period in the prior year.

Loans

Gross loans and leases increased $5.6 million from March 31, 2012, $19.0 million from December 31, 2011 and $26.7 million from June 30, 2011.The growth in loans occurred primarily in the commercial and residential mortgage categories. While the Corporation continued to see increased loan activity in the first six months of 2012, overall credit demand and utilization of lines by businesses and consumers remained light as a result of the prolonged challenging economic environment.

Deposits

Total deposits increased $13.9 million from March 31, 2012, decreased $5.3 million from December 31, 2011 and increased $122.6 million from June 30, 2011. Deposits, excluding public funds, grew $38.1 million from March 31, 2012 and $102.1 million from June 30, 2011; the growth from December 31, 2011 of $51.2 million was offset by a decrease in public funds of $56.5 million. This continued growth, excluding public funds, was primarily due to new customers choosing Univest.

Net Interest Income and Margin

Net interest income decreased $834 thousand or 4% to $18.1 million in the second quarter of 2012 compared to the second quarter of 2011. The net interest margin on a tax-equivalent basis for the second quarter of 2012 was 3.97%, compared to 3.95% during the first quarter of 2012, and down from 4.24% in the second quarter of 2011. Net interest income decreased $1.5 million or 4% to $36.3 million for the six months ended June 30, 2012 compared to the same period in 2011. The net interest margin on a tax-equivalent basis for the six months ended June 30, 2012 was 3.96% compared to 4.24% for the six months ended June 30, 2011.

The declines in net interest income and the net interest margin were primarily due to the re-investment of maturing and called investment securities with lower yielding investments, as a result of the lower interest rate environment and lower rates on commercial loans due to re-pricing and competitive pressures. The decline in net interest income and the net interest margin was partially offset by re-pricing of certificates of deposits and savings account products. The net interest margin also declined from excess cash funds invested in low rate, interest-earning deposits as credit demand remains light and the Corporation continues to keep the investment portfolio short-term. Average year-to-date, interest-earning deposits with the Federal Reserve Bank increased $41.5 million from the comparable period in the prior year.

Non-Interest Income

Non-interest income for the quarter ended June 30, 2012 was $8.0 million, a decrease of $696 thousand or 8% from the comparable period in the prior year. The second quarter of 2012 included a fair value write-down on one other real estate owned property of $1.1 million based upon the current appraised value of the commercial property. During the second quarter of 2011, the net loss on sales and write-downs of other real estate owned was $265 thousand. Service charges on deposits declined $277 thousand during the second quarter of 2012 from the same period in 2011. This decline is primarily due to changes in industry practices to benefit consumers related to non-sufficient funds and overdraft fees, which were implemented in July 2011. In addition, the net gain on sales of securities was $24 thousand for the second quarter of 2012 compared to $569 thousand during the second quarter of 2011. Partially offsetting these unfavorable variances was an increase in the net gain on mortgage banking activities of $746 thousand which was primarily attributed to stronger mortgage demand from increased re-finance activity.

Non-interest income for the six months ended June 30, 2012 was $19.0 million, an increase of $2.6 million or 16% compared to $16.5 million for the six months ended June 30, 2011. The increase was primarily attributable to an increase in the net gain on mortgage banking activities of $2.0 million due to stronger mortgage demand from increased re-finance activity and proceeds from bank owned life insurance death benefits of $989 thousand recognized during the first quarter of 2012. These favorable variances were partially offset by an increase in the net loss on sales and write-downs of other real estate owned of $485 thousand and a decline in service charges on deposits of $513 thousand. The decline in service charges on deposits is primarily due to changes in industry practices to benefit consumers.

Non-Interest Expense

Non-interest expense for the second quarter of 2012 was $18.6 million, an increase of $2.2 million or 14% compared to the second quarter of 2011. Salaries and benefits expense increased $1.1 million primarily due to higher commissions related to increased mortgage banking activities, increased employee incentives and annual performance increases. Additionally, non-interest expense increased due to higher advertising, loan workout and equipment expenses.

Non-interest expense for the six months ended June 30, 2012 was $37.5 million, an increase of $4.4 million or 13% compared to the six months ended June 30, 2011. Salaries and benefits expense increased $3.7 million primarily due to higher commissions related to increased mortgage banking activities, increased employee incentives, annual performance increases and lower deferred loan origination costs. Additionally, non-interest expense increased due to higher loan workout and equipment expenses. The increases for the year-to-date were partially offset by a decline in deposit insurance premiums of $267 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.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $36.8 million at June 30, 2012 from $38.2 million at December 31, 2011 and $43.5 million at June 30, 2011. The decrease in non-accrual loans was mainly due to charge-offs and pay-downs exceeding additions to non-accrual loans. Net loan and lease charge-offs were $1.4 million during the second quarter of 2012 compared to $5.8 million for the second quarter of 2011. For the six months ended June 30, 2012, net loan and lease charge-offs were $4.8 million compared to $9.0 million for the six months ended June 30, 2011. The decrease in net charge-offs was primarily due to a higher level of commercial real estate and commercial business loan charge-offs during the second quarter of 2011 related to several large credit relationships.

Nonperforming loans and leases as a percentage of total loans and leases were 3.05% at June 30, 2012 compared to 2.94% at December 31, 2011 and 3.42% at June 30, 2011. Other real estate owned decreased to $3.9 million, consisting of three properties at June 30, 2012, down from $6.6 million at December 31, 2011 and $5.0 million at June 30, 2011. During the second quarter of 2012, one commercial property was written down to its updated appraised value, resulting in an impairment charge of $1.1 million. During the first quarter of 2012, one commercial property with a carrying value of $1.3 million was sold for $1.5 million resulting in a gain on sale of $210 thousand.

The provision for loan and lease losses declined to $1.3 million for the second quarter of 2012 compared to $5.6 million for the quarter ended June 30, 2011. The decline in the provision was primarily the result of the migration and resolution of loans through the loan workout process and a decrease in historical loss factors for commercial real estate loans. The allowance for loan and lease losses as a percentage of total loans and leases was 2.08% at June 30, 2012 compared to 2.07% at December 31, 2011 and 2.27% at June 30, 2011. The allowance for loan and lease losses to nonperforming loans and leases equaled 68.18% at June 30, 2012, compared to 70.34% at December 31, 2011 and 66.26% at June 30, 2011.

Capital

Univest continues to remain well-capitalized at June 30, 2012. Univest’s total risk-based capital at June 30, 2012 was 15.64%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.

During the quarter, Univest deployed $386 thousand of capital to repurchase 24,816 shares of common stock through the stock repurchase program. Maximum shares available for future repurchases through the plan at June 30, 2012 was 541,929. Total shares outstanding at June 30, 2012 were 16,759,893.

Dividend

On July 2, 2012, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.75% 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, 2012

(Dollars in thousands)

Balance Sheet (Period End)	06/30/12			03/31/12			12/31/11			09/30/11			06/30/11
Assets	$	2,188,727		$	2,192,164		$	2,206,839		$	2,174,127		$	2,058,377
Securities		439,092			451,433			471,165			412,340			418,020
Loans held for sale		1,333			2,535			3,157			1,724			2,102
Loans and leases, gross		1,465,449			1,459,830			1,446,406			1,436,411			1,438,707
Allowance for loan and lease losses		30,502			30,597			29,870			31,002			32,601
Loans and leases, net		1,434,947			1,429,233			1,416,536			1,405,409			1,406,106
Total deposits		1,743,922			1,730,030			1,749,232			1,725,063			1,621,294
Non-interest bearing deposits		334,828			307,769			304,006			275,930			277,515
NOW, money market and savings		1,052,217			1,029,145			1,036,726			1,016,651			967,554
Time deposits		356,877			393,116			408,500			432,482			376,225
Borrowings		121,878			144,208			137,234			135,490			127,689
Shareholders’ equity		277,316			275,525			272,979			275,099			273,022
Balance Sheet (Average)	For the three months ended,															For the six months ended,
	06/30/12			03/31/12			12/31/11			09/30/11			06/30/11			06/30/12			06/30/11
Assets	$	2,173,698		$	2,180,451		$	2,174,857		$	2,113,446		$	2,096,173		$	2,177,119		$	2,101,074
Securities		450,482			457,511			423,657			409,376			439,606			453,997			442,120
Loans and leases, gross		1,460,275			1,457,320			1,435,173			1,445,344			1,451,076			1,458,797			1,456,029
Deposits		1,726,441			1,724,310			1,727,861			1,672,452			1,655,812			1,725,376			1,662,899
Shareholders’ equity		277,621			275,071			276,114			275,502			272,952			276,346			270,661
Asset Quality Data (Period End)	06/30/12			03/31/12			12/31/11			09/30/11			06/30/11
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases	$	36,762		$	36,270		$	38,207		$	38,180		$	43,513
Accruing loans and leases 90 days or more past due		384			523			365			449			659
Accruing troubled debt restructured loans and leases		7,591			7,301			3,893			3,925			5,028
Other real estate owned		3,922			4,993			6,600			7,711			4,952
Nonperforming assets		48,659			49,087			49,065			50,265			54,152
Allowance for loan and lease losses		30,502			30,597			29,870			31,002			32,601
Nonperforming loans and leases / Loans and leases		3.05	%		3.02	%		2.94	%		2.96	%		3.42	%
Allowance for loan and lease losses / Loans and leases		2.08	%		2.10	%		2.07	%		2.16	%		2.27	%
Allowance for loan and lease losses / Nonperforming loans		68.18	%		69.39	%		70.34	%		72.85	%		66.26	%
	For the three months ended,															For the six months ended,
	06/30/12			03/31/12			12/31/11			09/30/11			06/30/11			06/30/12			06/30/11
Net loan and lease charge-offs	$	1,438		$	3,373		$	4,272		$	5,248		$	5,759		$	4,811		$	8,987
Net loan and lease charge-offs (annualized)/Average loans and leases		0.40	%		0.93	%		1.18	%		1.44	%		1.59	%		0.66	%		1.24	%

Univest Corporation of Pennsylvania

Consolidated Selected Financial Data

June 30, 2012

(Dollars in thousands, except per share data)

	For the three months ended,															For the six months ended,
For the period:	06/30/12			03/31/12			12/31/11			09/30/11			06/30/11			06/30/12			06/30/11
Interest income	$	20,258		$	20,431		$	20,821		$	21,237		$	21,704		$	40,689		$	43,410
Interest expense		2,111			2,267			2,487			2,621			2,723			4,378			5,620
Net interest income		18,147			18,164			18,334			18,616			18,981			36,311			37,790
Provision for loan and lease losses		1,343			4,100			3,140			3,649			5,556			5,443			10,690
Net interest income after provision		16,804			14,064			15,194			14,967			13,425			30,868			27,100
Noninterest income:
Trust fee income		1,625			1,625			1,469			1,625			1,625			3,250			3,250
Service charges on deposit accounts		1,079			1,100			1,147			1,218			1,356			2,179			2,692
Investment advisory commission and fee income		1,350			1,256			1,778			1,239			1,194			2,606			2,356
Insurance commissions and fee income		2,057			2,267			1,674			1,787			2,072			4,324			4,272
Bank owned life insurance income		336			1,506			502			554			268			1,842			612
Other-than-temporary impairment		(6	)		(3	)		(5	)		(1	)		(3	)		(9	)		(10	)
Net gain on sales of securities		24			258			—			848			569			282			569
Net gain on mortgage banking activities		1,074			1,272			652			913			328			2,346			303
Other income		461			1,740			1,761			791			1,287			2,201			2,411
Total noninterest income		8,000			11,021			8,978			8,974			8,696			19,021			16,455
Noninterest expense
Salaries and benefits		10,733			11,563			9,725			9,888			9,634			22,296			18,617
Premises and equipment		2,513			2,428			2,544			2,387			2,326			4,941			4,853
Deposit insurance premiums		429			444			457			442			427			873			1,140
Other expense		4,961			4,441			4,837			4,578			4,019			9,402			8,542
Total noninterest expense		18,636			18,876			17,563			17,295			16,406			37,512			33,152
Income before taxes		6,168			6,209			6,609			6,646			5,715			12,377			10,403
Applicable income taxes		1,405			946			1,349			1,402			1,199			2,351			2,025
Net income	$	4,763		$	5,263		$	5,260		$	5,244		$	4,516		$	10,026		$	8,378
Per Common Share Data:
Book value per share	$	16.55		$	16.42		$	16.34		$	16.45		$	16.27		$	16.55		$	16.27
Net income per share:
Basic	$	0.28		$	0.31		$	0.32		$	0.31		$	0.27		$	0.60		$	0.50
Diluted	$	0.28		$	0.31		$	0.32		$	0.31		$	0.27		$	0.60		$	0.50
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.40		$	0.40
Weighted average shares outstanding		16,770,290			16,749,134			16,716,160			16,770,741			16,771,969			16,759,712			16,742,434
Period end shares outstanding		16,759,893			16,780,416			16,702,376			16,727,099			16,777,379			16,759,893			16,777,379

Univest Corporation of Pennsylvania

Consolidated Selected Financial Data

June 30, 2012

	For the three months ended,															For the six months ended,
Profitability Ratios (annualized)	06/30/12			03/31/12			12/31/11			09/30/11			06/30/11			06/30/12			06/30/11
Return on average assets		0.88	%		0.97	%		0.96	%		0.98	%		0.86	%		0.93	%		0.80	%
Return on average shareholders’ equity		6.90	%		7.70	%		7.56	%		7.55	%		6.64	%		7.30	%		6.24	%
Net interest margin (FTE)		3.97	%		3.95	%		3.96	%		4.15	%		4.24	%		3.96	%		4.24	%
Efficiency ratio (1)		67.60	%		60.46	%		60.87	%		59.35	%		56.47	%		63.80	%		58.15	%
Capitalization Ratios
Dividends paid to net income		70.48	%		63.63	%		63.48	%		64.00	%		74.27	%		66.89	%		79.82	%
Shareholders’ equity to assets (Period End)		12.67	%		12.57	%		12.37	%		12.65	%		13.26	%		12.67	%		13.26	%
Tangible common equity to tangible assets		10.11	%		10.18	%		10.00	%		10.34	%		10.80	%		10.11	%		10.80	%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		11.57	%		11.64	%		11.53	%		11.84	%		11.87	%		11.57	%		11.87	%
Tier 1 risk-based capital ratio		14.38	%		14.50	%		14.29	%		14.73	%		14.96	%		14.38	%		14.96	%
Total risk-based capital ratio		15.64	%		15.76	%		15.56	%		16.00	%		16.25	%		15.64	%		16.25	%

(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,
Tax Equivalent Basis	2012								2011
	Average Balance			Income/ Expense		Average Rate			Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	54,443		$	38		0.28	%	$	19,401		$	12		0.25	%
U.S. Government obligations		141,142			492		1.40			153,239			639		1.67
Obligations of state and political subdivisions		120,350			1,688		5.64			110,187			1,712		6.23
Other debt and equity securities		188,990			989		2.10			176,180			1,527		3.48
Total interest-earning deposits and investments		504,925			3,207		2.55			459,007			3,890		3.40
Commercial, financial, and agricultural loans		442,385			4,786		4.35			431,427			4,947		4.60
Real estate—commercial and construction loans		530,163			6,949		5.27			541,862			7,399		5.48
Real estate—residential loans		249,456			2,597		4.19			245,996			2,757		4.50
Loans to individuals		43,931			624		5.71			41,924			597		5.71
Municipal loans and leases		137,165			1,881		5.52			129,149			1,856		5.76
Lease financings		57,175			1,457		10.25			60,718			1,491		9.85
Gross loans and leases		1,460,275			18,294		5.04			1,451,076			19,047		5.26
Total interest-earning assets		1,965,200			21,501		4.40			1,910,083			22,937		4.82
Cash and due from banks		37,518								29,706
Reserve for loan and lease losses		(31,849	)							(33,995	)
Premises and equipment, net		34,395								34,302
Other assets		168,434								156,077
Total assets	$	2,173,698							$	2,096,173
Liabilities:
Interest-bearing checking deposits	$	232,471		$	41		0.07		$	210,487		$	59		0.11
Money market savings		309,712			122		0.16			277,420			174		0.25
Regular savings		503,481			183		0.15			481,312			374		0.31
Time deposits		364,306			1,308		1.44			405,829			1,683		1.66
Total time and interest-bearing deposits		1,409,970			1,654		0.47			1,375,048			2,290		0.67
Short-term borrowings		108,233			156		0.58			104,591			80		0.31
Long-term debt		—			—		—			5,000			47		3.77
Subordinated notes and capital securities		22,111			301		5.48			23,619			306		5.20
Total borrowings		130,344			457		1.41			133,210			433		1.30
Total interest-bearing liabilities		1,540,314			2,111		0.55			1,508,258			2,723		0.72
Demand deposits, non-interest bearing		316,471								280,764
Accrued expenses and other liabilities		39,292								34,199
Total liabilities		1,896,077								1,823,221
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,328								61,469
Retained earnings and other equity		124,961								120,151
Total shareholders’ equity		277,621								272,952
Total liabilities and shareholders’ equity	$	2,173,698							$	2,096,173
Net interest income				$	19,390							$	20,214
Net interest spread							3.85								4.10
Effect of net interest-free funding sources							0.12								0.14
Net interest margin							3.97	%							4.24	%
Ratio of average interest-earning assets to average interest-bearing liabilities		127.58	%							126.64	%

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, 2012 and 2011 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 Six Months Ended June 30,
Tax Equivalent Basis	2012								2011
	Average Balance			Income/ Expense		Average Rate			Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	56,948		$	76		0.27	%	$	12,876		$	15		0.23	%
U.S. Government obligations		144,144			1,011		1.41			161,900			1,356		1.69
Obligations of state and political subdivisions		118,634			3,396		5.76			109,610			3,433		6.32
Other debt and equity securities		191,219			2,223		2.34			170,610			3,056		3.61
Total interest-earning deposits and investments		510,945			6,706		2.64			454,996			7,860		3.48
Commercial, financial, and agricultural loans		441,646			9,528		4.34			430,039			10,118		4.74
Real estate—commercial and construction loans		532,121			13,937		5.27			550,038			14,650		5.37
Real estate—residential loans		248,375			5,202		4.21			245,155			5,398		4.44
Loans to individuals		44,214			1,254		5.70			42,464			1,223		5.81
Municipal loans and leases		135,891			3,702		5.48			126,021			3,610		5.78
Lease financings		56,550			2,829		10.06			62,312			2,986		9.66
Gross loans and leases		1,458,797			36,452		5.03			1,456,029			37,985		5.26
Total interest-earning assets		1,969,742			43,158		4.41			1,911,025			45,845		4.84
Cash and due from banks		36,237								32,886
Reserve for loan and lease losses		(31,878	)							(33,203	)
Premises and equipment, net		34,347								34,462
Other assets		168,671								155,904
Total assets	$	2,177,119							$	2,101,074
Liabilities:
Interest-bearing checking deposits	$	226,416		$	98		0.09		$	201,630		$	123		0.12
Money market savings		310,295			270		0.17			293,022			375		0.26
Regular savings		501,026			447		0.18			481,358			837		0.35
Time deposits		382,370			2,692		1.42			408,416			3,421		1.69
Total time and interest-bearing deposits		1,420,107			3,507		0.50			1,384,426			4,756		0.69
Short-term borrowings		113,244			262		0.47			105,647			160		0.31
Long-term debt		220			4		3.66			5,000			94		3.79
Subordinated notes and capital securities		22,298			605		5.46			23,805			610		5.17
Total borrowings		135,762			871		1.29			134,452			864		1.30
Total interest-bearing liabilities		1,555,869			4,378		0.57			1,518,878			5,620		0.75
Demand deposits, non-interest bearing		305,269								278,473
Accrued expenses and other liabilities		39,635								33,062
Total liabilities		1,900,773								1,830,413
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,365								61,441
Retained earnings and other equity		123,649								117,888
Total shareholders’ equity		276,346								270,661
Total liabilities and shareholders’ equity	$	2,177,119							$	2,101,074
Net interest income				$	38,780							$	40,225
Net interest spread							3.84								4.09
Effect of net interest-free funding sources							0.12								0.15	%
Net interest margin							3.96	%							4.24
Ratio of average interest-earning assets to average interest-bearing liabilities		126.60	%							125.82	%

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, 2012 and 2011 have been calculated using the Corporation’s federal applicable rate of 35.0%.