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

Exhibit 99.1

CONTACT: Kim Detwiler
UNIVEST CORPORATION OF PENNSYLVANIA
Vice President, Director of Corporate Communications
215-721-8396,detwilerk@univest.net

FOR IMMEDIATE RELEASE

UNIVEST CORPORATION OF PENNSYLVANIA – UNIVEST NATIONAL
BANK AND TRUST CO. – REPORTS FOURTH QUARTER EARNINGS

SOUDERTON, Pa., January 28, 2009 – Univest Corporation of Pennsylvania(NASDAQ: UVSP), parent company of Univest National Bank and Trust Co. of Souderton, Pa., has reported net income of $3,805,000 or $0.30 basic net income per share for the fourth quarter ended December 31, 2008, compared to $6,547,000 or $0.51 basic net income per share for the fourth quarter ended December 31, 2007. Diluted earnings per share were $0.29 for the fourth quarter ended December 31, 2008, compared to $0.51 per share for the fourth quarter ended December 31, 2007.

For the twelve months ended December 31, 2008, Univest reported net income of $20,590,000 or $1.60 basic net income per share, compared to $25,557,000 or $1.98 basic net income per share reported for the twelve months ended December 31, 2007. Diluted earnings per share were $1.60 and $1.98 for the twelve months ended December 31, 2008 and 2007 respectively.

On January 2, 2008, Univest Corporation paid a quarterly cash dividend of $0.20 per share.

Average assets for fiscal 2008 totaled $2,025,060,000 compared to $1,932,264,000 for the same period in 2007.  This is an increase of 4.80%.  Total average shareholders’ equity increased 7.30% year-over-year with $204,095,000 for fiscal 2008, compared to $190,215,000 for the same period in 2007.

“Univest’s focused and disciplined business approach, strong capital position and high-quality credit culture helped us end a challenging year with solid core operations,” said William S. Aichele, chairman, president and chief executive officer of Univest Corporation of Pennsylvania. “We remain well-capitalized, without government assistance, and are well positioned to seize opportunities in the future as we execute our long-term growth strategy and build shareholder value.”

About Univest Corporation

Headquartered in Souderton, Pa.,Univest Corporation of Pennsylvania (www.univest.net) and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, Montgomery and Lehigh counties.  Univest National Bank and Trust Co., member FDIC and Equal Housing Lender, offers customers 33financial service centers,12 retirement financial services centers, and38 ATM locations throughout the region, and is the parent company ofUnivest Capital, Inc., a small ticket commercial finance business; Univest Insurance, Inc., an independent insurance agency headquartered in Lansdale, Pa., which serves commercial and personal customers; and Univest Investments, Inc., Member FINRA and SIPC, a full-service broker-dealer and investment advisory firm. For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visitwww.univest.net.

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This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  Actual results and trends could differ materially from those set forth in such statements due to various factors.  Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission.

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2008

(Dollars in thousands)

Balance Sheet (Period End)	12/31/08		09/30/08		06/30/08		03/31/08		12/31/07
Assets	$	2,084,797	$	2,046,390	$	2,012,659	$	2,059,572	$	1,972,505
Securities		443,026		418,804		429,844		471,962		423,448
Loans and leases, gross		1,450,436		1,441,899		1,398,269		1,357,887		1,355,442
Allowance for loan and lease losses		13,118		14,954		13,713		12,997		13,086
Loans and leases, net		1,437,318		1,426,945		1,384,556		1,344,890		1,342,356
Total deposits		1,527,328		1,507,527		1,504,007		1,616,843		1,532,603
Non-interest bearing deposits		221,863		226,606		233,436		230,531		226,513
NOW, Money Market and Savings		795,495		783,830		788,177		925,613		816,294
Time deposits		509,970		497,091		482,394		460,699		489,796
Borrowings		312,736		304,368		275,345		202,073		208,729
Shareholders’ equity		203,207		204,251		203,138		203,263		198,726

	For the three months ended,										For the twelve months ended,
Balance Sheet (Average)	12/31/08		09/30/08		06/30/08		03/31/08		12/31/07		12/31/08		12/31/07
Assets	$	2,028,900	$	2,020,537	$	2,044,987	$	2,005,682	$	1,951,233	$	2,025,060	$	1,932,264
Securities		414,764		422,994		459,469		449,828		407,461		436,666		391,740
Loans and leases, gross		1,437,727		1,422,774		1,392,177		1,354,584		1,356,625		1,401,971		1,367,017
Deposits		1,523,964		1,503,402		1,560,015		1,565,693		1,522,238		1,538,134		1,498,777
Shareholders’ equity		205,384		205,062		205,464		200,439		194,505		204,095		190,215

Asset Quality Data (Period End)	12/31/08			09/30/08			06/30/08			03/31/08			12/31/07
Nonaccrual loans and leases	$	5,029		$	7,871		$	6,992		$	6,165		$	6,878
Troubled debt restructured		380			563			423			—			—
Other real estate owned		346			346			—			—			—
Nonperforming assets		6,900			10,358			10,422			9,680			8,795
Allowance for loan and lease losses		13,118			14,954			13,713			12,997			13,086
Nonperforming loans and leases / Loans and leases		0.45	%		0.69	%		0.75	%		0.71	%		0.65	%
Allowance for loan and lease losses / Loans and leases		0.90	%		1.04	%		0.98	%		0.96	%		0.97	%
Allowance for loan and lease losses / Nonperforming loans		200.15	%		149.36	%		131.58	%		134.27	%		148.79	%

	For the three months ended,															For the twelve months ended,
	12/31/08			09/30/08			06/30/08			03/31/08			12/31/07			12/31/08			12/31/07
Net loan and lease charge-offs	$	4,263		$	1,804		$	1,582		$	1,088		$	1,219		$	8,737		$	2,363
Net loan and lease charge-offs (annualized) / Average loans and leases		1.18	%		0.50	%		0.46	%		0.32	%		0.36	%		0.62	%		0.17	%

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2008

(Dollars in thousands, except per share data)

	For the three months ended,													For the twelve months ended,
For the period:	12/31/08			09/30/08			06/30/08			03/31/08		12/31/07		12/31/08			12/31/07
Interest income	$	26,524		$	26,739		$	27,010		$	28,093	$	29,245	$	108,366		$	116,533
Interest expense		9,630			10,148			10,370			12,162		13,715		42,310			54,127
Net interest income		16,894			16,591			16,640			15,931		15,530		66,056			62,406
Provision for loan and lease losses		2,427			3,046			2,297			999		433		8,769			2,166
Net interest income after provision		14,467			13,545			14,343			14,932		15,097		57,287			60,240
Noninterest income:
Trust fee income		1,171			1,578			1,628			1,627		1,428		6,004			5,921
Service charges on deposit accounts		1,723			1,719			1,708			1,658		1,764		6,808			6,822
Investment advisory commission and fee income		536			581			642			615		668		2,374			2,538
Insurance commissions and fee income		1,128			1,266			1,271			2,058		1,151		5,723			5,730
Life insurance income		25			241			1,734			791		379		2,791			1,503
Net (loss) gain on sales of and impairments on securities		(122	)		(692	)		(213	)		56		125		(971	)		435
Other income		798			793			1,134			852		972		3,577			3,930
Total noninterest income		5,259			5,486			7,904			7,657		6,487		26,306			26,879
Noninterest expense
Salaries and benefits		8,291			7,935			8,019			8,168		7,518		32,413			30,811
Premises and equipment		2,225			2,110			2,085			2,057		1,859		8,477			7,880
Other expense		4,351			3,620			4,981			3,383		3,259		16,335			13,520
Total noninterest expense		14,867			13,665			15,085			13,608		12,636		57,225			52,211
Income before taxes		4,859			5,366			7,162			8,981		8,948		26,368			34,908
Applicable income taxes		1,054			1,176			1,288			2,260		2,401		5,778			9,351
Net income	$	3,805		$	4,190		$	5,874		$	6,721	$	6,547	$	20,590		$	25,557
Per Common Share Data:
Book value per share	$	15.71		$	15.83		$	15.80		$	15.83	$	15.49	$	15.71		$	15.49
Net income per share:
Basic	$	0.30		$	0.33		$	0.46		$	0.52	$	0.51	$	1.60		$	1.98
Diluted	$	0.29		$	0.33		$	0.46		$	0.52	$	0.51	$	1.60		$	1.98
Dividends per share	$	0.20		$	0.20		$	0.20		$	0.20	$	0.20	$	0.80		$	0.80
Weighted average shares outstanding		12,921,814			12,874,648			12,855,379			12,839,040		12,789,263		12,872,889			12,884,804
Period end shares outstanding		12,938,514			12,905,326			12,858,376			12,843,507		12,830,609		12,938,514			12,830,609

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2008

	For the three months ended,															Year to date
Profitability Ratios (annualized)	12/31/08			09/30/08			06/30/08			03/31/08			12/31/07			12/31/08			12/31/07
Return on average assets		0.75	%		0.82	%		1.16	%		1.35	%		1.33	%		1.02	%		1.32	%
Return on average shareholders’ equity		7.37	%		8.13	%		11.50	%		13.49	%		13.35	%		10.09	%		13.44	%
Net interest margin (FTE)		3.83	%		3.76	%		3.74	%		3.66	%		3.71	%		3.75	%		3.72	%
Efficiency ratio (1)		64.32	%		59.15	%		57.34	%		54.77	%		54.45	%		58.77	%		55.87	%
Capitalization Ratios
Dividends paid to net income		67.94	%		61.50	%		43.77	%		38.22	%		39.10	%		50.03	%		40.32	%
Shareholders’ equity to assets (Period End)		9.75	%		9.98	%		10.09	%		9.87	%		10.07	%		9.75	%		10.07	%

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