Univest Financial Corporation Annual Report 2003

FY2003 Annual Report · Univest Financial Corporation

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more than a bank.

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your partner.

More than 127 years ago a group of neighbors banded together with
a simple mission: to pool personal assets from among themselves
and their friends and families, and invest them in the community for
the mutual benefit of all. The idea was simple, elegant. Assets grew,
and were reinvested in the community. People’s families grew. Their
fortunes grew. Neighborhoods flourished. Businesses matured. People
were linked together.

Univest was born.

Today, Univest isn’t in one community, but dozens. Our customers
number in the thousands-all neighbors. The solutions we offer
far exceed simple loan instruments and deposit accounts. Today,
through banking, insurance, investments, wealth management and
trust services; through a branch network of 35 offices in Bucks and
Montgomery counties, and growing; through our new logo, which tells
people not only who we are, but what we do; and through the earnest
work of over 500 associates, we provide Financial Solutions For Life.

C O N T E N T S

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Letter to Shareholders

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The Year in Review

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Office Locations

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Officers

Directors

Shareholder Information

more than a bank.

D E A R U N I V E S T S H A R E H O L D E R S :

We are pleased to report another dynamic year

acquired First County Bank, purchasing all

Mortgage Banking line, made possible through

of solid achievements for Univest Corporation.

outstanding shares of common stock for total

acquisitions, will yet again increase our financial

Despite the challenges of a low interest rate

consideration of $29.5 million. As a result,

solutions and help position us as a market leader.

environment throughout 2003, our financial

Univest expanded its branch network with

performance reflects another strong year with net

five additional locations : Doylestown Cross

income reported of $23,082,000. This represents

Keys, Newtown, Oxford Valley, Bensalem and

a 9.4% increase over the previous record year,

Warminster. The second acquisition occurred

which demonstrates our dedication to continue

on October 4, when Univest purchased all of

the stable and steady growth consistent with our

the outstanding common stock of Suburban

127-year history.

Community Bank for total consideration of

William S. Aichele

President and CEO

The year 2003 was filled with strategic

acquisitions, new opportunities, and a continued

emphasis on branding “the family name.” On

January 18, 2003 Union National Bank and

Pennview Savings Bank combined to form

Univest National Bank and Trust Co. The

new name brings all of Univest Corporation’s

$24.1 million. Two new locations, in Chalfont

and Feasterville increased Univest’s branch

network to 35 offices, 20 of which are in Bucks

County. This move solidifies our commitment to

create a convenient platform through which to

bring integrated financial solutions to individuals,

families, businesses and non-profit organizations.

remains UVSP.

On February 28, 2003, shareholders were

awarded a five for four split in the form of a stock

dividend. In addition , the board of directors

declared quarterly cash dividends at $.20 per

share. Another significant achievement was

the move from listing Univest stock on the

OTC Bulletin Board to the NASDAQ National

Market. We believe this milestone, which

occurred on August 15, will enhance shareholder

value by providing additional liquidity through

increased awareness of the company with the

investing community. Our trading symbol

subsidiaries under one common identity,

The transition for customers and employees from

strengthening our brand and clearly positioning

First County Bank and Suburban Community

us throughout our market.

Bank has been smooth, and credit for this

Strategic acquisitions this past year of two Bucks

County based community banks, provided us

with the opportunity to increase our geographic

market. On May 17, Univest Corporation

success goes to our employees who worked

and planned together for a seamless merger

conversion. Benefits of the mergers are already

evident through increased services and enhanced

convenience. In 2004, a new Residential

As Univest continues to grow and the

liquidity of our stock increases, we continue

to focus on providing outstanding service to

our shareholders. On December 1, Univest

began using StockTrans, Inc. as the transfer

agent to assist shareholders in managing their

Univest stock. We also launched a new link

from our Website (www.univest.net) in

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He gives strength to the weary and increases the power of the weak...but those who hope in the Lord will renew their strength.

They will soar on wings like eagles; they will run and not grow weary, they will walk and not faint. Isaiah 40:29, 31

January 2004, providing additional resources

about their programs and the need for volunteers.

During this past year, Francis E. Varilla, Senior

including financial highlights, detailed peer

Each year demand for space in the volunteer

Vice President and Finance Division Manager,

analysis, deposit market share data, and other

tent increases. In 2004, Univest will expand

retired after 19 years of service. We thank Francis

valuable information.

the Helping Hands program into our extended

for his leadership, dedication, loyalty and service.

markets in central and lower Bucks County.

Two new benefits programs, “WorkLife

The year ahead will indeed provide new

Solutions” and “Employee Benefits Solutions,”

The Univest Foundation, established in the

opportunities and challenges. We look forward

were introduced early in 2003 to assist local

second quarter of 2003, was created to assist

to maximizing opportunities and continuing our

businesses in providing increased options for

donors and non-profit organizations with

mission to become a leader in the markets we

employees by offering quality group insurance

charitable planning alternatives, while providing

serve. Our success in 2003 is attributed to the

coverage; human resource consulting services;

various tax benefit options to donors and their

dedication and teamwork of Univest associates.

and special offers on savings, checking,

families. The Univest Foundation also provides

We want to express our sincere appreciation for

borrowing, investment and insurance solutions.

a variety of resources to maximize potential for

their outstanding performance. On behalf of the

Univest’s dedication to providing financial

solutions for its publics extends beyond

both the donor contributing to the Foundation

entire Univest family, we thank you for your loyal

and the non-profit receiving the gift.

support and confidence.

individuals, businesses and shareholders, and

As we expand further into Bucks County,

Sincerely,

reaches out to non-profit organizations in

we continue to work on increasing our brand

the communities in which we serve. Univest

recognition. An important and significant step

was instrumental in the development of the

was completed during the fourth quarter when

Character Counts Window Decorating Contest

we introduced a new logo. The new logo includes

in downtown Souderton during the 6th Univest

the three lines of business, Banking, Insurance,

Grand Prix. Another attraction at the Univest

and Investments, and clearly identifies our fully-

Grand Prix was the Helping Hands Volunteer

integrated line of financial solutions. Signage will

tent. Nearly 30 non-profits participated by

be updated with the new logo throughout the

displaying information to educate the public

first quarter of 2004.

William S. Aichele

President and CEO

Marvin A. Anders

Chairman

Marvin A. Anders

Chairman

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SN E W M A R K E T S , N E W O P P O R T U N I T I E S .

We continue our commitment to be the financial partner of choice in Bucks and Montgomery

counties, and we recognize the importance of convenience to our customers.

2003 was a year of growth for

Univest, marked by new

products and programs, new markets and
opportunities. In 2003, we successfully
expanded our core value proposition,
Financial Solutions For Life, to further
benefit the individuals, families, businesses
and non-profit organizations we serve.

We continue our commitment to be the
financial partner of choice in Bucks and
Montgomery counties, and we recognize
the importance of convenience to our
customers. And while we have gained
market share via acquisition, we have no
desire to build our network haphazardly.
We know our core markets, and we are

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committed to building critical mass within
those growing markets to best serve our
customers, present and prospective.

Our acquisition in 2003 of First County
Bank and Suburban Community Bank
in Bucks County added seven branch
locations, expanding our network to 35
offices—20 in Bucks County and 15
in Montgomery County. We maintain
42 ATM locations to add convenience
and improve our customers’ financial
service experience; and our website, now
found at the shorter, more memorable,
www.univest.net, offers secure, around-the-
clock transactions to our banking customers
who are busier than ever before.

While we were solidifying our core markets,
we entered a national one: the NASDAQ
market. Previously, Univest’s stock was
traded on the OTC Bulletin Board. But
as part of our commitment to enhancing
shareholder value through higher visibility
and greater liquidity, we applied for and
received listing on the NASDAQ National
Market in August, 2003, retaining our
same stock symbol: UVSP.

From our first day of trading on August
15 through December 31, 2003, Univest’s
stock price appreciated nearly 25%. We
are pleased that a new, broader audience
of investors is recognizing our mission,
business model and productivity as valuable.

your neighbor.

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your advocate.

SC U L T I V A T I N G R E L A T I O N S H I P S T H A T L A S T .

Univest has a strong commitment to small business financing in our core marketing area.

Corporate Banking Services:
Helping entrepreneurs, small businesses
and corporations prosper

Not long ago, Bucks County represented
the outer reaches of our footprint. With
the acquisition of First County Bank
and Suburban Community Bank, our
presence and strength as a corporate
banking partner grew significantly.
Several members of our Corporate
Banking Services line were part of the
due diligence and transition teams that
integrated these banks into our network.

Corporate Banking initiatives in 2003
included both acquisition and penetration
strategies. Our successful “Drip”
program, in which dimensional direct
marketing and aggressive sales follow-

up are used to begin dialogue with key
prospects, was continued from last year
and expanded successfully into the new
Bucks County markets. In creating
deeper and more profitable relationships
with corporate customers, we continued
to focus on delivering commercial
and personal financial solutions for
entrepreneurs and executives, including
investments, insurance, cash management
services, residential mortgage and home
equity loans and lines of credit.

The low interest rate environment
continued to drive mortgage refinancing
activity, and we more than doubled the
dollar amount of residential mortgages
originated from the previous year. We
also established a separate Mortgage
Banking line with increased capabilities to

enhance non-interest income and market
a complete line of residential mortgage
solutions. At the end of 2003, we further
expanded our mortgage services to
include title insurance. We are now the
majority owner of United Commercial
Abstract, L.P., in limited partnership with
Robert Chalphin Associates.

Univest demonstrated its strong
commitment and leadership in small
business financing. We increased the
number of Small Business Administration
loans by 68%, and the dollar amount by
35%. Within the Philadelphia district,
this improved our ranking as an SBA
lender from 13th in 2002 to 9th in 2003,
making Univest the largest locally based
lender of SBA 7(a) loans in the region.

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SL E V E R A G I N G R E S O U R C E S , E M P O W E R I N G T A L E N T .

For the first time in our history, all of our subsidiaries carried the family name,

communicating a unified message throughout our market.

Other significant accomplishments
in 2003 were possible because of
our dedicated, experienced Corporate
Banking team. We further strengthened
our underwriting support staff to ensure
even higher standards of credit quality,
and new loan documentation software
interfaces with our core processing
system to increase the efficiency of
our credit support area.

Technology:
The seamless union of people and results

The major technology initiative of 2003
began with the integration of the former
Pennview Savings Bank and Union
National Bank and Trust Company into
a single Univest brand and platform.
For the first time in our history, all
of our subsidiaries carried the family
name, communicating a unified message
throughout our market. Univest National

Bank and Trust Co. continued to grow
in 2003 through the acquisition of two
community banks. Our technology
team, along with representatives from all
business lines, was invaluable during the
mergers. First County Bank’s conversion
to Univest National Bank and Trust Co.
was completed on May 17, 2003 and
Suburban Community Bank followed
on October 4, 2003.

Because people are the software behind
successful technology, Univest trained
all front-line personnel in its new
Customer Relationship Management
(CRM) software, helping each employee
better understand our customers and
how we can provide financial solutions
for each stage of their lives. The CRM
platform is invaluable as a foundation
for intelligent, useful and consistent
customer communication across all

points of delivery—including the newly
acquired branches. It also provides
a structure to help associates deliver
financial solutions by anticipating
customer needs, and incorporates a
system to drive integrated solutions
across all lines of business.

In 2003, we began a major upgrade of
our website; the fully redesigned, wholly
customized site will be launched in
2004. In 2003 we took steps to make
the site easier to get to (by locating it
at www.univest.net); more integrated
(by featuring access to Insurance
and Investments product and service
information directly from the Home
Page); and more robust (by partnering
with global financial information leader
SNL to develop a comprehensive investor
information site, accessed via the Home
Page). We also emerged as a preferred

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your advisor.

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your ally.

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SE A R N I N G T H E P U B L I C T R U S T .

Univest Investments continues to maintain the highest ethical standards on behalf of its clients,

keeping focus on their long-term interests and financial objectives.

Internet Service Provider, offering
Internet access to customers
and neighbors.

Univest Investments:
Extending a legacy of ethical practice

Nationally, capital markets began a long,
slow about-face in 2003, beginning
to reverse the downward trends of the
past several years and rebuild investor
confidence from the high profile scandals
of 2002. As a matter of philosophy and
business practice, Univest Investments
continued to maintain the highest ethical
standards on behalf of its clients, keeping
focus on their long-term interests and
financial objectives. We were ever vigilant
of not only the performance but also
the ethical mettle of the providers
we recommended.

The year was also marked by historic and

persistent lows in guaranteed
investment contracts. Nonetheless,
Univest Investments experienced
significant growth during the year,
especially from within, as enhanced
retail signage throughout the branch
network increased awareness of our
capabilities among customers. Our
business was also positively impacted
by Univest’s strong push into central
and lower Bucks County.

As a full-service broker-dealer, Univest
Investments continues to offer a wide
range of mutual funds, variable and fixed
annuities and individual securities—the
tools from which to craft Financial
Solutions For Life for our clients. Our
value is distinguished by working closely
with each client to understand his or her
tolerance for risk. We then create and
implement solutions based on time-tested

processes and techniques, and our core
belief that diversification, asset allocation
and time-in-the-market are the keys to
long-term performance.

Univest Insurance:
Protecting assets, mining opportunities

2003 was a challenging year for
insurance market-wide. While carrier
rate hike levels began to ease, the market
remained far from robust. At Univest
Insurance, our underwriting standards
remained high, and casualty lines were
hit particularly hard.

Our response to market conditions was
to leverage opportunity from within
the Univest family, and our efforts were
rewarded. We successfully partnered with
Corporate Banking Services to provide
competitively priced insurance to our
commercial customers and prospects.

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SM E E T I N G T H E C H A L L E N G E .

This enables Univest to fulfill operationally the promise made by our unified brand.

By leveraging our strong relationships
with property and casualty carriers,
we were able to achieve favorable
underwriting and pricing for our
customers. We also developed and
implemented additional group health
capabilities so that our small business
customers could provide employees
with cost-effective, quality coverage at
reasonable prices in the face of persistent
double-digit rate hikes.

Univest Insurance also worked with
bank personnel to raise awareness and
understanding of our personal insurance
capabilities. We hosted Insurance Days at
multiple branches in order to introduce
both customers and non-customers to
Univest Insurance’s unique solutions
and demonstrate the ease and benefit of
working with us through the integrated
delivery platform. We also worked closely
with Wealth Management and Trust

professionals to provide advice, and help
integrate life insurance solutions for high
net worth individuals in the context of
their financial planning.

In return, we were able to help introduce
Univest banking and investment services
to our insurance customer base, helping
our new Bucks County offices strengthen
existing customer relationships and attract
new customers.

Finance and Accounting:
Putting it together

It is the basis for Gestalt theory—the
value of the whole exceeding the sum
of its parts—and never before in Univest’s
history has it been more important
to gain benefit from synergy. Finance
and Accounting was instrumental
in undertaking the landmark task of
providing the pro forma analysis and
purchase accounting to consolidate all

our component bank charters—Union
National, Pennview Savings, First County
and Suburban Community—under
the surviving Univest brand. While the
mechanics are overlooked by most outside
the process, the benefits are not: this task
enables Univest to fulfill operationally the
promise made by our unified brand—to
operate one banking subsidiary known as
Univest National Bank and Trust Co.

Another area where synergy came into
play includes the nature of income in
2003. In a year again characterized
by depressed interest rates, Finance
and Accounting was instrumental in
conducting the due diligence and taking
action to strike a balance between rate-
driven and non-interest income. In a
changing and challenging environment,
this was crucial to maintaining
momentum and creating overall growth.

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your companion.

your partner.

your friend.

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SD O I N G W E L L B Y D O I N G G O O D .

For 127 years, Univest has taken seriously our role as a corporate citizen.

Finance and Accounting also spearheaded
changes in the mortgage pipeline process
to include the newest, web-based delivery
system. This is not simply a convenience
issue for our customers, who now enjoy
real-time online pricing. Although
convenience is a significant benefit, it also
enables Univest to perform online mortgage
contract executions, improving liquidity
management and reducing our interest
rate risk by shortening the time horizon.
The end result is greater fiscal integrity
and flexibility in our mortgage line.

Compliance: The standards of excellence

Corporate governance is the principle of
creating shareholder value by protecting a
company’s reputation through stringent
ethical standards, accountability, strong
risk management practices and a robust
strategic planning process.

The Sarbanes-Oxley Act was passed in
part because of high profile examples of a
failure to adhere to these responsibilities
by a number of publicly held companies.
You can be confident that not only is
Univest in full compliance with Sarbanes-
Oxley, but—more important—Univest’s
management and board met the highest
standards of corporate governance long
before Sarbanes-Oxley.

Compliance isn’t just a regulatory issue at
Univest. It’s a business ethics issue, and
it’s how we’ve always done business.

Under the USA Patriot Act, all banks are
now required to “know their customers”
and ensure they have a legitimate reason
for doing business. Accordingly, we
have expanded our new account process
to require more extensive identification
from new customers, and to expand
verification procedures.

When customers choose Univest as a
financial partner, they have every reason
to expect their information will remain
private. We continue to expand our
commitment to privacy protection as
we update prevention procedures and
technologies, and install leading-edge
systems and practices.

Involvement: Supporting Our Community
and Customers

For 127 years, Univest has taken our role
as a corporate citizen seriously. Through
time and money, and the efforts of
Univest employees, we support literally
hundreds of organizations and programs
in the communities we serve. It is
impossible to chronicle the full extent of
our involvement, or the net benefit to the
community, in each year’s annual report.
Here are a few highlights.

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SS E R V I N G A L L W H O S E E K S O L U T I O N S .

The branches increased core deposit accounts across corporate and retail clients by 10%

and saw a 10% growth in home equity loans and lines of credit.

The Univest Grand Prix remains our
single largest community endeavor, and
2003 saw the sixth annual running of the
internationally ranked cycling event. The
international field of 171 athletes, from
as far away as France, Belgium, Holland,
Canada, New Zealand, Australia,
Dominican Republic, Guatemala,
Israel, Italy and Poland, comprised 31
teams. As in years past, hundreds of our
neighbors volunteered to help the race
run smoothly, and both employees and
members of the community opened up
their homes and hearts to these men and
women, providing housing and food
during the week of the event. In support
of the popularity of this event and our
commitment to growth in the Bucks
County market, we are now investigating
the expansion of the Univest Grand Prix
to two days of competition, the second to
be held in Doylestown, Bucks County.

Helping Hands, an innovative program
we developed to partner nonprofit
community organizations with motivated
volunteers, enjoyed its second year in
2003, and was staged in conjunction with
the Univest Grand Prix to help give it the
widest possible forum and participation.
In 2004, we will introduce this program
in Bucks County.

In 2003, Univest continued its strong
support of affordable housing. We took
the lead in securing funding for the first
permanent headquarters for Community
Housing Services (CHS) in Lansdale.
CHS is a nonprofit affordable housing
agency that provides housing and other
social services for low- and moderate-
income families. Programs and services
include emergency, transitional and
lease-purchase housing, homeownership
counseling, a domestic violence program,
health advocacy and job training assistance.

Univest has been a generous supporter
of the Indian Valley Boys and Girls Club
in Souderton, which is a second, larger
location of the North Penn Valley Boys
and Girls Club in Lansdale. The Boys and
Girls Club is a second home to thousands
of local children and promotes health,
social, educational and character-building
skills among youth. Programs include
after-school programs, low-cost day care
and tutoring support.

Branch Delivery: Growing the channel

Univest’s branch offices increased core
deposit accounts across corporate and
retail clients by 10% in 2003 and saw a
10% growth in home equity loans and
lines of credit. Branch referrals to Univest
Investments increased more than 50%.
Introducing and integrating the seven
Bucks County bank offices added with
the acquisition of First County and
Suburban Community was a priority.

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your support.

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SA L I G N I N G W I T H T H E G O O D O F T H E C O M M U N I T Y .

This is another example of Univest’s commitment to build value,

and lasting relationships, in the communities we serve.

This was undertaken in part through
The Univest Grand Slam Sweepstakes, a
successful promotion executed at select
Bucks County branch locations and
supported through advertising and direct
mail. The core product focus was on $50
Bonus Checking, 21st Century Money
Market and a very competitive Home
Equity Line of Credit.

Construction of a new Montgomery
County office in historic Skippack Village
was started and nearly completed by
year-end. The 16th Montgomery County
branch opened in January 2004. Features
of the new location include an Express
Banking Center that makes commercial
and retail transactions—including
deposits and a wide variety of change
options—fast, easy and automated. Access
is available around-the-clock via a secure
access card. The branch also features a

fun Coin Exchange for turning the family
piggybank into cash. But perhaps the
most notable feature of the new location
is the distinguished new clock, built by
Univest and positioned as the gateway
to the historic village, as a gift to the
community. The distinctive landmark
was reproduced in miniature, and these
replicas were sold to benefit the township’s
Open Space program—another example
of Univest’s commitment to build
value, and lasting relationships, in the
communities we serve.

In 2003, we introduced WorkLife
Solutions, an innovative, value-added
benefits program that is free to employees
of our corporate customers. Participants
receive preferred rates and offers and
can waive the minimum balance fee
on checking or savings accounts when
they elect direct deposit. More than

1,000 employees took advantage of the
program in its first year, and we expect
continued growth in 2004. We also
introduced Employee Benefit Solutions,
a program that helps commercial
clients leverage their benefit dollars to
maximize employee satisfaction. This
unique program bundles administrative
assistance, health advocate services and
professional human resources support
with group health insurance plans.

Wealth Management and Trust: Meeting
the dynamic needs of affluent families

Wealth Management and Trust were
reorganized in 2003 to more closely align
business development efforts with service
delivery functions. In that regard, product
specialists in each area now work with
Univest relationship managers to match
Wealth Management and Trust products
and services to meet customer needs.

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SE A C H Y E A R I S A N E W B E G I N N I N G .

We have remained strong, vital, growing...and independent.

As Univest continues our expansion
and penetration into the market area,
particularly in affluent central Bucks
County, we hope to see increased activity
and revenue in Wealth Management and
Trust in the coming months.

Recognizing the growing importance of
the Internet as a means to manage time
and resources—even for high net worth
clients—we added two online account
information tools in 2003: Investment
Scorecard and Trust Reporter. The
Investment Scorecard provides customers
with a performance based tracking
system with illustrative charts, trend lines
and other data showing the customer’s
holdings, portfolio returns, contributions
and withdrawals. The information is
updated monthly. The Trust Reporter
provides customers with daily updates on
their holdings, transactions, tax lots, and
account summaries.

A related development in 2003 was
the introduction of The Univest
Foundation. Incorporated as a separate
501(c)(3) organization, The Univest
Foundation takes the Helping Hands
model—which Univest developed to
pair motivated volunteers with charitable
organizations—to its logical conclusion:
The Foundation helps high net worth
individuals and families design and
execute meaningful, mutually beneficial
programs of charitable donations to
support worthy community nonprofits.
The Univest Foundation utilized a
successful dimensional direct mail
program to get face time with qualified
donors beginning in the fourth quarter
of 2003, under the theme, “Building a
Better Community.” Significant growth
is expected in 2004, to benefit both the
donor and local nonprofits.

Partner. Neighbor. Advocate. Friend.
The many faces of Univest.

As Univest wraps a year of significant
growth into new markets, we have never
been more cognizant of what sets us apart.
While many banks in the region changed
signs to herald new ownership, we have
changed ours to reflect our core lines of
business. While others have abdicated
leadership to forces out of market, we
have remained strong, vital, growing...and
independent. We have expanded wisely
in challenging times, and have been
rewarded with stable, steady growth.

It all comes back to the many faces behind
the shield, the roles we play, the lives we
touch and the ways in which we help the
community thrive and grow. Like our
founders more than a century ago, we
profit when our community is well served.
And this is the best profit of all.

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O F F I C E L O C A T I O N S

Univest Plaza Office

Corporate Headquarters

14 North Main Street

PO Box 64197

Souderton, PA 18964

1.800.660.4276 or 215.721.2400

Univest Investments, Inc.

14 North Main Street

PO Box 64197

Souderton, PA 18964

215.721.2112

Univest Insurance, Inc.

521 West Main Street

Lansdale, PA 19446

1.800.220.3077

Bensalem Office

3325 Street Road

4 Greenwood Square

Bensalem, PA 19020

215.244.9200

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Buckingham Office

Hunt Acres Center

5006 York Road

Holicong, PA 18928

215.794.5916

Center Point Office

2960 Skippack Pike

Worcester, PA 19490

610.584.8450

Center Square Office

Clemens Market

1301 Skippack Pike

Center Square, PA 19422

610.279.3901

Chalfont Office

195 East Butler Avenue

Chalfont, PA 18914

215.996.1633

Doylestown Office

191 West State Street

Doylestown, PA 18901

215.348.7966

Doylestown Cross Keys Office

842 North Easton Road

Doylestown, PA 18901

215.348.8620

East Greenville Office

321 Main Street

East Greenville, PA 18041

215.679.7928

Feasterville Office

40 East Street Road

Feasterville, PA 19053

215.354.0330

Franconia Office

500 Harleysville Pike

Franconia, PA 18924

215.721.0707

Green Lane Office

101 Walnut Street

Harleysville Office

Clemens Market

611 Main Street

Harleysville, PA 19438

215.256.8048

Hilltown Supermarket Office

Clemens Market

731 Route 113

Souderton, PA 18964

215.703.9933

Hilltown Office

Routes 113 & 309

Souderton, PA 18964

215.721.2471

Kulpsville Office

1715 Sumneytown Pike

Kulpsville, PA 19443

215.368.1666

Green Lane, PA 18054

Lansdale Area Office

215.234.4511

2333 West Main Street, Suite 12

Lansdale, PA 19446

215.362.8835

Lansdale East Office

Clemens Market

620 East Main Street

Lansdale, PA 19446

215.412.9750

Line Lexington Office

Newtown Office

3 Friends Lane

Newtown, PA 18940

215.504.2828

Oxford Valley Office

100 N. Buckstown Drive

Route 309 & Line Lexington Road

Suite E-205

Line Lexington, PA 18932

Langhorne, PA 19047

215.822.3314

Milford Office

1950 John Fries Highway

Milford Square, PA 18935

215.536.4204

Montgomery Office

986 Bethlehem Pike

215.891.0201

Perkasie Office

545 Constitution Avenue

Perkasie, PA 18944

215.257.6607

Plumsteadville Office

5829 Easton Road

Schwenksville Office

415 Main Street

Schwenksville, PA 19473

610.287.7811

Sellersville Office

835 Lawn Avenue

Sellersville, PA 18960

215.257.8060

Silverdale Office

103 Baringer Avenue

Silverdale, PA 18962

215.257.9600

Skippack Office (Opened Jan. 2004)

4285 Township Line Road

Schwenksville, PA 19473

Montgomeryville, PA 18936

Plumsteadville, PA 18949

610.222.3923

215.699.3525

215.766.3701

New Britain Office

Clemens Market

202 Town Center

New Britain, PA 18901

215.345.8259

Quakertown Office

Clemens Market

1465-7 West Broad Street

Quakertown, PA 18951

215.538.3407

Solebury Office

Logan Square Shopping Center

6542D York Road

New Hope, PA 18938

215.862.3750

Souderton Office

10 West Broad Street

Souderton, PA 18964

215.721.2464

Telford Office

50 Penn Avenue

Telford, PA 18969

215.723.4515

Telford Supermarket Office

Landis Market

2685 County Line Road

Telford, PA 18969

215.721.7412

Trappe Office

595 West Main Street

Trappe, PA 19426

610.454.0883

Warminster Office

601 Louis Drive

Warminster, PA 18974

215.956.1611

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O F F I C E R S

U N I V E S T C O R P O R A T I O N O F P E N N S Y L V A N I A

Executive Management Group

Senior Vice Presidents

William S. Aichele, President & Chief Executive Officer

Richard L. Boaman

Marvin A. Anders, Chairman

Phillip J. Rush

Wallace H. Bieler, Sr. Executive Vice President, Treasurer,

Annette D. Szygiel

Chief Financial Officer and Corporate Secretary

K. Leon Moyer, Sr. Executive Vice President

Duane J. Brobst, Executive Vice President,

Chief Credit Officer

Douglas R. Delp, Executive Vice President

Kenneth D. Hochstetler, Executive Vice President

Diane L. Koehler, Executive Vice President,

Chief Risk Officer

Ronald S. Price, Executive Vice President

Martin Renninger, Executive Vice President

Barry L. Stoltzfus, Executive Vice President

Richard R. Swartley, Executive Vice President

George D. Terry, Jr., Executive Vice President

univest 26

Vice Presidents

John Benner

Linda C. Cahill

Patricia S. Coleman

G. Brian Cooper

Suzanne M. Fleischman

G. Jay Francis

Richard D. Juniper

Garry R. Kuhnle

Mary L. Marger

William B. Meyer

Diane Moyer

Keith B. Paich

M. Theresa Schwartzer

Karen E. Tejkl

Keith C. Thomas

U N I V E S T N A T I O N A L B A N K A N D T R U S T C O .

Executive Management

William S. Aichele, President & Chief Executive Officer

Marvin A. Anders, Chairman

Wallace H. Bieler, Sr. Executive Vice President,

Chief Financial Officer and Corporate Secretary

K. Leon Moyer, Sr. Executive Vice President

Duane J. Brobst, Executive Vice President,

Chief Credit Officer

Douglas R. Delp, Executive Vice President

Ronald S. Price, Executive Vice President

Barry L. Stoltzfus, Executive Vice President

George D. Terry, Executive Vice President

Executive Vice President

David C. Groves

H. Paul Lewis

Senior Vice Presidents

Kevin Crawford

Kenneth L. Keller

John T. Landes

Rose A. Radcliff

Stephen D. Robinson

Vice Presidents

Gary E. Brown

John J. Buczek

Vernon L. Clemmer

Aileen M. Connolly

John Dooley

John W. Duerksen

Carmella A. Faust

Dorothy M. Hoban

J. Matthew Holliday

Darren G. Johnson

Patricia J. Kratz

William F. Marks

William D. Maeglin

Timothy E. Mininger

Laurence A. Moyer

Lori L. Shelly

Richard W. Slabinski, Jr.

James Spindler

Timothy V. Swartley

Jane E. Ward

Harry A. Wenzel

Gary S. Wolfer

Fern M. Zepp

univest 27

O F F I C E R S

O T H E R P R I N C I P A L S U B S I D I A R I E S U N I V E S T C O R P O R A T I O N O F P E N N S Y L V A N I A

Univest Realty Corporation

Univest Reinsurance Corporation

Univest Delaware Inc.

U N I V E S T I N V E S T M E N T S , I N C .

Martin Renninger, Chairman

Kenneth D. Hochstetler, President

Darren G. Johnson, Vice President

U N I V E S T I N S U R A N C E , I N C .

Martin Renninger, Chairman & CEO

Kenneth D. Hochstetler, President

William R. Erickson, Vice President

Hervey W. Schofield, Vice President

Gail M. Strohmeyer, Vice President

Richard Theis, Vice President

univest 28

D I R E C T O R S

James L. Bergey *†

President, Abram W. Bergey & Sons, Inc.

R. Lee Delp *

Principal, R.L. Delp & Company

Richard W. Godshall º

Merrill S. Moyer *†

Retired Chairman, Univest Corporation of Pennsylvania and

Retired Chairman, Union National Bank & Trust Company

P. Gregory Shelly *†

President, Shelly Enterprises, Inc.

Physician, M.D., Upper Bucks Orthopaedic Associates

John U. Young *

Charles H. Hoeflich *†

Chairman Emeritus, Univest Corporation of Pennsylvania

Margaret K. Zook º

Retired President, Alderfer Bologna Co., Inc.

Norman L. Keller *

Retired Executive Vice President, Univest Corporation of Pennsylvania

Marvin A. Anders *†

Executive Director, Souderton Mennonite Homes

Thomas K. Leidy *†

Retired President and Chief Executive Officer, Leidy’s, Inc.

H. Ray Mininger *

President, H. Mininger & Son, Inc.

William G. Morral º

Executive Director, North Penn United Way

Chairman, Univest Corporation of Pennsylvania and

Chairman, Univest National Bank and Trust Co.

William S. Aichele *†

President & Chief Executive Officer, Univest Corporation of Pennsylvania and

President & Chief Executive Officer, Univest National Bank and Trust Co.

K E Y

* Director of Univest Corporation of Pennsylvania

† Director of Univest National Bank & Trust Co.

º Alternate Director of Univest Corporation of Pennsylvania

univest 29

Univest Stock Transfer Agent

Market Makers for Univest Corporation

For more information on Univest Corporation of

of Pennsylvania Common Stock

Pennsylvania common stock, please call StockTrans,

F.J. Morrissey & Co., Inc.

Inc. at 610.649.7300 or contact them at 44 West

Ferris Baker Watts, Inc.

Lancaster Avenue, Ardmore, PA 19003. You

may also click on our investor relations link at

FTN Midwest Research Securities Corp.

Hill, Thompson, Magid & Co.

Janney Montgomery Scott, LLC

Knight Equity Markets, L.P.

Legg Mason Wood Walker, Inc.

Moors & Cabot, Inc.

Ryan Beck & Co., Inc.

Susquehanna Capital Group

O F F I C E R S
I N F O R M A T I O N F O R S H A R E H O L D E R S

Corporate Headquarters

Univest Plaza

14 North Main Street

P.O. Box 64197

Souderton, Pennsylvania 18964

Shareholders’ Meeting

www.univest.net.

The Annual Shareholders’ Meeting will take place

at 10:45 a.m., Tuesday April 13, 2004, in the Board

Univest Shareholder Information Hotline

Room at Univest Plaza, 14 North Main Street,

For more information on the Univest Corporation of

Souderton, Pennsylvania.

Pennsylvania, please call 215.721.2434.

univest 30

M I S S I O N S T A T E M E N T

Our purpose and philosophy is to be a strong, influential leader in

the markets we choose to serve. We will provide financial solutions to

individuals, businesses, and non-profit organizations; maintain an active

role in our communities; and build loyal relationships with our customers

and employees so that a fair profit will be provided for both the corporation

and our shareholders.

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1 4 N O R T H M A I N S T R E E T

P . O . B O X 6 4 1 9 7

S O U D E R T O N , P A 1 8 9 6 4

8 0 0 . 6 6 0 . 4 2 7 6

W W W . U N I V E S T . N E T

Financial Solutions For Life