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

Exhibit 99.1

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

FOR IMMEDIATE RELEASE

UNIVEST CORPORATION OF PENNSYLVANIA – UNIVEST

BANK AND TRUST CO. – REPORTS THIRD QUARTER EARNINGS

SOUDERTON, Pa., October 24, 2012 – Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter ended September 30, 2012. Univest reported net income of $5.8 million or $0.34 diluted earnings per share for the quarter ended September 30, 2012, a 10% increase in net income compared to $5.2 million or $0.31 diluted earnings per share for the quarter ended September 30, 2011. Net income for the nine months ended September 30, 2012 was $15.8 million or $0.94 diluted earnings per share, a 16% increase in net income compared to $13.6 million or $0.81 diluted earnings per share for the comparable period in the prior year.

Loans

Gross loans and leases increased $4.1 million from June 30, 2012, $23.1 million from December 31, 2011 and $33.1 million from September 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 nine months ended September 30, 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 $34.0 million from June 30, 2012, $28.7 million from December 31, 2011 and $52.9 million from September 30, 2011. Deposits, excluding public funds, grew $33.2 million from December 31, 2011 and $81.8 million from September 30, 2011 primarily due to new customers choosing Univest. There was a decline from June 30, 2012 of $18.1 million in non-public fund deposits which was more than offset by an increase in public funds of $52.1 million mostly due to anticipated seasonal tax deposits.

Net Interest Income and Margin

Net interest income decreased $597 thousand or 3% to $18.0 million in the third quarter of 2012 compared to the third quarter of 2011. The net interest margin on a tax-equivalent basis for the third quarter of 2012 was 3.84%, compared to 3.97% during the second quarter of 2012, and down from 4.15% in the third quarter of 2011. Net interest income decreased $2.1 million or 4% to $54.3 million for the nine months ended September 30, 2012 compared to the same period in 2011. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2012 was 3.92% compared to 4.21% for the nine months ended September 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. During the third quarter of 2012, the Corporation increased its investments in government agencies, treasuries and corporate bonds with longer maturity durations as interest rate protection in the prolonged low rate interest environment.

Non-Interest Income

Non-interest income for the quarter ended September 30, 2012 was $10.9 million, an increase of $1.9 million or 21% from the comparable period in the prior year. During the third quarter of 2012, the Corporation sold a former operations building located in Hilltown, Pennsylvania with a book value of $702 thousand for $2.0 million, resulting in a gain on sale of fixed assets of $1.3 million which is included in other income. The net gain on mortgage banking activities increased $1.3 million during the third quarter of 2012 over the same period in 2011 as re-finance activity continues to be strong. In addition, insurance commission and fee income was up $342 thousand mainly due to the Javers Group acquisition on May 31, 2012. Partially offsetting these favorable variances was an increase in the net loss on sales and write-downs of other real estate owned of $480 thousand. The net gain on sales of securities was $9 thousand for the third quarter of 2012 compared to $848 thousand during the third quarter of 2011.

Non-interest income for the nine months ended September 30, 2012 was $29.9 million, an increase of $4.5 million or 18% compared to the nine months ended September 30, 2011. The increase was primarily attributable to an increase in the net gain on mortgage banking activities of $3.3 million due to stronger mortgage demand from increased re-finance activity, a $1.3 million gain on sale of a former operations building during the third quarter of 2012 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 $965 thousand. In addition, the net gain on sales of securities was $291 thousand for the nine months ended September 30, 2012 compared to $1.4 million for the same period in 2011.

Non-Interest Expense

Non-interest expense for the third quarter of 2012 was $19.1 million, an increase of $1.8 million or 10% compared to the third quarter of 2011. Salaries and benefits expense increased $940 thousand primarily due to higher commissions related to increased mortgage banking activities, annual performance increases and additional staff including the Javers Group acquisition. Additionally, non-interest expense increased due to higher loan workout, legal, employment services and equipment expenses.

Non-interest expense for the nine months ended September 30, 2012 was $56.6 million, an increase of $6.1 million or 12% compared to the nine months ended September 30, 2011. Salaries and benefits expense increased $4.6 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 loan workout, legal, employment services and equipment expenses. The increases for the year-to-date were partially offset by a decline in deposit insurance premiums of $303 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 $30.5 million at September 30, 2012 from $38.2 million at both December 31, 2011 and September 30, 2011. The decrease in non-accrual loans was mainly due to loans returned to accrual of interest status, charge-offs and pay-downs, which exceeded additions to non-accrual loans. During the third quarter of 2012, one non-accrual troubled debt restructured credit for $6.2 million was returned to accruing troubled debt restructured status as the borrower made six consecutive principal and interest payments. Net loan and lease charge-offs were $5.6 million during the third quarter of 2012 compared to $5.2 million for the third quarter of 2011.

Nonperforming loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 3.03% at September 30, 2012 compared to 2.94% at December 31, 2011 and 2.96% at September 30, 2011. Other real estate owned decreased to $3.3 million, consisting of three properties at September 30, 2012, compared to $6.6 million at December 31, 2011 and $7.7 million at September 30, 2011. The year-to-date decrease was primarily due to write-downs on properties to their updated appraised values and the sale of a commercial property, with a carrying value of $1.3 million, which sold for $1.5 million resulting in a gain on sale of $210 thousand.

The provision for loan and lease losses declined to $2.2 million for the third quarter of 2012 compared to $3.6 million for the quarter ended September 30, 2011. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.84% at September 30, 2012 compared to 2.07% at December 31, 2011 and 2.16% at September 30, 2011. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 97.03% at September 30, 2012, compared to 78.18% at December 31, 2011 and 81.20% at September 30, 2011.

Capital

Univest continues to remain well-capitalized at September 30, 2012. Univest’s total risk-based capital at September 30, 2012 was 15.34%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.

Dividend

On October 1, 2012, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.40% 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, 2012

(Dollars in thousands)	09/30/12		06/30/12		03/31/12		12/31/11		09/30/11
Balance Sheet (Period End)
Assets	$	2,232,081	$	2,188,727	$	2,192,164	$	2,206,839	$	2,174,127
Securities		515,256		439,092		451,433		471,165		412,340
Loans held for sale		6,146		1,333		2,535		3,157		1,724
Loans and leases held for investment, gross		1,469,511		1,465,449		1,459,830		1,446,406		1,436,411
Allowance for loan and lease losses		27,096		30,502		30,597		29,870		31,002
Loans and leases held for investment, net		1,442,415		1,434,947		1,429,233		1,416,536		1,405,409
Total deposits		1,777,930		1,743,922		1,730,030		1,749,232		1,725,063
Non-interest bearing deposits		334,856		334,828		307,769		304,006		275,930
NOW, money market and savings		1,101,147		1,052,217		1,029,145		1,036,726		1,016,651
Time deposits		341,927		356,877		393,116		408,500		432,482
Borrowings		132,920		121,878		144,208		137,234		135,490
Shareholders’ equity		281,589		277,316		275,525		272,979		275,099

	For the three months ended,										For the nine months ended,
	09/30/12		06/30/12		03/31/12		12/31/11		09/30/11		09/30/12		09/30/11
Balance Sheet (Average)
Assets	$	2,214,283	$	2,173,698	$	2,180,451	$	2,174,857	$	2,113,446	$	2,189,591	$	2,105,242
Securities		474,523		450,482		457,511		423,657		409,376		460,889		431,085
Loans and leases, gross		1,465,897		1,460,275		1,457,320		1,435,173		1,445,344		1,461,182		1,452,428
Deposits		1,771,454		1,726,441		1,724,310		1,727,861		1,672,452		1,740,847		1,666,118
Shareholders’ equity		280,172		277,621		275,071		276,114		275,502		277,630		272,293

	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11
Asset Quality Data (Period End)
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale	$	30,525		$	36,762		$	36,270		$	38,207		$	38,180
Accruing loans and leases 90 days or more past due		690			384			523			365			449
Accruing troubled debt restructured loans and leases		13,383			7,591			7,301			3,893			3,925
Other real estate owned		3,301			3,922			4,993			6,600			7,711
Nonperforming assets		47,899			48,659			49,087			49,065			50,265
Allowance for loan and lease losses		27,096			30,502			30,597			29,870			31,002
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale		2.07	%		2.51	%		2.48	%		2.64	%		2.66	%
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale		3.03	%		3.05	%		3.02	%		2.94	%		2.96	%
Allowance for loan and lease losses / Loans and leases held for investment		1.84	%		2.08	%		2.10	%		2.07	%		2.16	%
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment		97.03	%		82.97	%		84.36	%		78.18	%		81.20	%
Allowance for loan and lease losses / Nonperforming loans held for investment		64.52	%		68.18	%		69.39	%		70.34	%		72.85	%

	For the three months ended,															For the nine months ended,
	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11			09/30/12			09/30/11
Net loan and lease charge-offs	$	5,616		$	1,438		$	3,373		$	4,272		$	5,248		$	10,427		$	14,235
Net loan and lease charge-offs (annualized)/Average loans and leases		1.52	%		0.40	%		0.93	%		1.18	%		1.44	%		0.95	%		1.31	%

Univest Corporation of Pennsylvania

Consolidated Selected Financial Data

September 30, 2012

(Dollars in thousands, except per share data)
	For the three months ended,															For the nine months ended,
For the period:	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11			09/30/12			09/30/11
Interest income	$	19,977		$	20,258		$	20,431		$	20,821		$	21,237		$	60,666		$	64,647
Interest expense		1,958			2,111			2,267			2,487			2,621			6,336			8,241
Net interest income		18,019			18,147			18,164			18,334			18,616			54,330			56,406
Provision for loan and lease losses		2,210			1,343			4,100			3,140			3,649			7,653			14,339
Net interest income after provision		15,809			16,804			14,064			15,194			14,967			46,677			42,067
Noninterest income:
Trust fee income		1,625			1,625			1,625			1,469			1,625			4,875			4,875
Service charges on deposit accounts		1,122			1,079			1,100			1,147			1,218			3,301			3,910
Investment advisory commission and fee income		1,350			1,350			1,256			1,778			1,239			3,956			3,595
Insurance commissions and fee income		2,129			2,057			2,267			1,674			1,787			6,453			6,059
Bank owned life insurance income		463			336			1,506			502			554			2,305			1,166
Other-than-temporary impairment		(4	)		(6	)		(3	)		(5	)		(1	)		(13	)		(11	)
Net gain on sales of securities		9			24			258			—			848			291			1,417
Net gain on mortgage banking activities		2,171			1,074			1,272			652			913			4,517			1,216
Other income		1,996			461			1,740			1,761			791			4,197			3,202
Total noninterest income		10,861			8,000			11,021			8,978			8,974			29,882			25,429
Noninterest expense
Salaries and benefits		10,828			10,733			11,563			9,725			9,888			33,124			28,505
Premises and equipment		2,597			2,513			2,428			2,544			2,387			7,538			7,240
Deposit insurance premiums		406			429			444			457			442			1,279			1,582
Other expense		5,227			4,961			4,441			4,837			4,578			14,629			13,120
Total noninterest expense		19,058			18,636			18,876			17,563			17,295			56,570			50,447
Income before taxes		7,612			6,168			6,209			6,609			6,646			19,989			17,049
Applicable income taxes		1,842			1,405			946			1,349			1,402			4,193			3,427
Net income	$	5,770		$	4,763		$	5,263		$	5,260		$	5,244		$	15,796		$	13,622
Per Common Share Data:
Book value per share	$	16.80		$	16.55		$	16.42		$	16.34		$	16.45		$	16.80		$	16.45
Net income per share:
Basic	$	0.34		$	0.28		$	0.31		$	0.32		$	0.31		$	0.94		$	0.81
Diluted	$	0.34		$	0.28		$	0.31		$	0.32		$	0.31		$	0.94		$	0.81
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20		$	0.60		$	0.60
Weighted average shares outstanding		16,760,080			16,770,290			16,749,134			16,716,160			16,770,741			16,759,836			16,751,949
Period end shares outstanding		16,765,126			16,759,893			16,780,416			16,702,376			16,727,099			16,765,126			16,727,099

Univest Corporation of Pennsylvania

Consolidated Selected Financial Data

September 30, 2012

	For the three months ended,															For the nine months ended,
	09/30/12			06/30/12			03/31/12			12/31/11			09/30/11			09/30/12			09/30/11
Profitability Ratios (annualized)
Return on average assets		1.04	%		0.88	%		0.97	%		0.96	%		0.98	%		0.96	%		0.87	%
Return on average shareholders’ equity		8.19	%		6.90	%		7.70	%		7.56	%		7.55	%		7.60	%		6.69	%
Net interest margin (FTE)		3.84	%		3.97	%		3.95	%		3.96	%		4.15	%		3.92	%		4.21	%
Efficiency ratio (1)		62.84	%		67.59	%		60.46	%		60.87	%		59.35	%		63.48	%		58.56	%
Capitalization Ratios
Dividends paid to net income		58.09	%		70.48	%		63.63	%		63.48	%		64.00	%		63.67	%		73.73	%
Shareholders’ equity to assets (Period End)		12.62	%		12.67	%		12.57	%		12.37	%		12.65	%		12.62	%		12.65	%
Tangible common equity to tangible assets		10.12	%		10.11	%		10.18	%		10.00	%		10.34	%		10.12	%		10.34	%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		11.48	%		11.57	%		11.64	%		11.53	%		11.84	%		11.48	%		11.84	%
Tier 1 risk-based capital ratio		14.07	%		14.38	%		14.50	%		14.29	%		14.73	%		14.07	%		14.73	%
Total risk-based capital ratio		15.34	%		15.64	%		15.76	%		15.56	%		16.00	%		15.34	%		16.00	%

(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,
Tax Equivalent Basis	2012								2011
	Average Balance			Income/ Expense		Average Rate			Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	52,214		$	45		0.34	%	$	46,109		$	25		0.22	%
U.S. Government obligations		156,885			508		1.29			129,263			509		1.56
Obligations of state and political subdivisions		121,612			1,696		5.55			112,935			1,720		6.04
Other debt and equity securities		196,026			846		1.72			167,178			1,347		3.20
Total interest-earning deposits and investments		526,737			3,095		2.34			455,485			3,601		3.14
Commercial, financial, and agricultural loans		452,531			4,895		4.30			435,805			4,930		4.49
Real estate—commercial and construction loans		525,143			6,804		5.15			528,936			7,308		5.48
Real estate—residential loans		256,297			2,616		4.06			247,332			2,684		4.31
Loans to individuals		42,991			602		5.57			42,358			594		5.56
Municipal loans and leases		129,651			1,748		5.36			132,494			1,919		5.74
Lease financings		59,284			1,415		9.50			58,419			1,456		9.89
Gross loans and leases		1,465,897			18,080		4.91			1,445,344			18,891		5.19
Total interest-earning assets		1,992,634			21,175		4.23			1,900,829			22,492		4.69
Cash and due from banks		50,875								57,572
Reserve for loan and lease losses		(31,365	)							(34,104	)
Premises and equipment, net		34,002								34,257
Other assets		168,137								154,892
Total assets	$	2,214,283							$	2,113,446
Liabilities:
Interest-bearing checking deposits	$	230,462		$	40		0.07		$	210,499		$	57		0.11
Money market savings		331,425			121		0.15			291,830			167		0.23
Regular savings		514,205			187		0.14			483,341			349		0.29
Time deposits		348,675			1,276		1.46			394,509			1,597		1.61
Total time and interest-bearing deposits		1,424,767			1,624		0.45			1,380,179			2,170		0.62
Short-term borrowings		104,110			33		0.13			104,469			96		0.36
Long-term debt		—			—		—			5,000			48		3.81
Subordinated notes and capital securities		21,732			301		5.51			23,240			307		5.24
Total borrowings		125,842			334		1.06			132,709			451		1.35
Total interest-bearing liabilities		1,550,609			1,958		0.50			1,512,888			2,621		0.69
Demand deposits, non-interest bearing		346,687								292,273
Accrued expenses and other liabilities		36,815								32,783
Total liabilities		1,934,111								1,837,944
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,327								61,473
Retained earnings and other equity		127,513								122,697
Total shareholders’ equity		280,172								275,502
Total liabilities and shareholders’ equity	$	2,214,283							$	2,113,446
Net interest income				$	19,217							$	19,871
Net interest spread							3.73								4.00
Effect of net interest-free funding sources							0.11								0.15
Net interest margin							3.84	%							4.15	%
Ratio of average interest-earning assets to average interest-bearing liabilities		128.51	%							125.64	%

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 September 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 Nine Months Ended September 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	$	55,358		$	121		0.29	%	$	24,076		$	40		0.22	%
U.S. Government obligations		148,422			1,519		1.37			150,902			1,865		1.65
Obligations of state and political subdivisions		119,634			5,092		5.69			110,730			5,153		6.22
Other debt and equity securities		192,833			3,069		2.13			169,453			4,403		3.47
Total interest-earning deposits and investments		516,247			9,801		2.54			455,161			11,461		3.37
Commercial, financial, and agricultural loans		445,301			14,423		4.33			431,983			15,048		4.66
Real estate—commercial and construction loans		529,778			20,741		5.23			542,926			21,958		5.41
Real estate—residential loans		251,035			7,818		4.16			245,889			8,082		4.39
Loans to individuals		43,803			1,856		5.66			42,428			1,817		5.73
Municipal loans and leases		133,557			5,450		5.45			128,202			5,529		5.77
Lease financings		57,708			4,244		9.82			61,000			4,442		9.74
Gross loans and leases		1,461,182			54,532		4.99			1,452,428			56,876		5.24
Total interest-earning assets		1,977,429			64,333		4.35			1,907,589			68,337		4.79
Cash and due from banks		41,152								41,205
Reserve for loan and lease losses		(31,706	)							(33,506	)
Premises and equipment, net		34,231								34,393
Other assets		168,485								155,561
Total assets	$	2,189,591							$	2,105,242
Liabilities:
Interest-bearing checking deposits	$	227,775		$	138		0.08		$	204,619		$	180		0.12
Money market savings		317,390			391		0.16			292,620			542		0.25
Regular savings		505,451			634		0.17			482,026			1,186		0.33
Time deposits		371,056			3,968		1.43			403,729			5,018		1.66
Total time and interest-bearing deposits		1,421,672			5,131		0.48			1,382,994			6,926		0.67
Short-term borrowings		110,177			295		0.36			105,250			256		0.33
Long-term debt		146			4		3.66			5,000			142		3.80
Subordinated notes and capital securities		22,108			906		5.47			23,615			917		5.19
Total borrowings		132,431			1,205		1.22			133,865			1,315		1.31
Total interest-bearing liabilities		1,554,103			6,336		0.54			1,516,859			8,241		0.73
Demand deposits, non-interest bearing		319,176								283,124
Accrued expenses and other liabilities		38,682								32,966
Total liabilities		1,911,961								1,832,949
Shareholders’ Equity
Common stock		91,332								91,332
Additional paid-in capital		61,352								61,452
Retained earnings and other equity		124,946								119,509
Total shareholders’ equity		277,630								272,293
Total liabilities and shareholders’ equity	$	2,189,591							$	2,105,242
Net interest income				$	57,997							$	60,096
Net interest spread							3.81								4.06
Effect of net interest-free funding sources							0.11								0.15	%
Net interest margin							3.92	%							4.21
Ratio of average interest-earning assets to average interest-bearing liabilities		127.24	%							125.76	%
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, 2012 and 2011 have been calculated
using the Corporation’s federal applicable rate of 35.0%.