Univest Financial
Annual Report 2004

Plain-text annual report

Capitol Research Division SNL Financial Table of Contents 2 Financial Performance 5 Mission and Profile 6 Letter to Shareholders 8 Unchanging Values 20 Officers and Directors 22 Locations 24 Shareholder Information Financial Pcrformmce .5 Y e x Trendr Net Loans (Millions): Earnings Per Share: Book Value Per Share: . . Shareholders’ Eguitv (Millions): . Management Succession: A Strong Leadership Team. (From Left to Right/ Marvin A. Anders, Outgoing Chairman is pictured with the new leadership team appointed by the Univest Board of Directors. K. Leon Moyer, Senior Executive Vice President of Univest Corporation, President, Chief Operating Officer and Director of Univest National Bank and Trust Co. Wallace H. Bieler, Senior Executive Vice President, Chief Financial Officer. Chief Operation Officer, and Corporate Secretary for Univest Corporation and Univest National Bank and Trust Co. William S. Aichele, Chairman, President and Chief Executive Officer for Univest Corporation, Chairman and Chief Executive Officer for Univest National Bank and Trust Co.. Chairman of Univest Insurance, Inc. and Univest Investments, Inc. AT DECEMBER 31, (IN THOUSANDS) q 11 :iiiii diic from h i k s . . . . . . . . . . . I, n u :iii(l fcd h i l i d 5 s2!IS Otiicr Asscrs . . . . . . . . . . . Aswts. . . . . . . . . . . . s Ikposits . . . . . . . . . . . 'z Rwwwiii$s . . . . . . . . . . . Orlicr i i h i l i r i c s . . . . . . . . . . . Linbilirii. . . . . . . . . . . . . 5 1,27O,?(iS 2 16,930 24,212 1,511. i i 6 FOR THE YEARS ENDED DECEMBER 31, (IN THousaws. EXCEPT PER SHARE DATa) 2003" 2002 4 71.965 21.150 4 50,81 i ;3,040 25,814 4 - 3 6 Mission Statement 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 nonprofit 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. Corporate Profile Univest Corporation is a +h-ania because we believe in innovation and performance, using technology to improvc the products we offer, but never forgetting the warm, personal service so important to ON customers. As we continue to he a leader in the markets we choose to serve, we will remain close to our customers, strengthening our existing relationships and building new ones. We take pride in being an organization that offers our customers an expanding scope of services while maintaining traditional beliefs and a determined commitment to the communiq7. A Fond Farewell I am pleased to announce my retirement alier 47 years of service with Univest Corporation. It has been an honor to be a part of this company, to work closely with our employees, customers, shareholders, and the community, and help to grow our Corporation into one of the h e s t financial serticc piuviders in the region When I started nith Univest, we only provided basic banking services. Today, we are a Mly integrated financial 3 The Year In Review Dear Univest Shareholder: We are pleased to report another year of solid achievements across our integrated platform of financial solutions for Univest Corporation. It was a year marked by many ~uccesse~ and challenges. In 2004, a low interest rate environment dominated our industry for the fourth consecutive year. While we started to see interest rates rise in the second halfof the year, the financial impact from the first six months coupled with increased competition impacted industry performance. At Univest, we are proud of our financial achiemiicnt with net income reported of $23,591,000. This represents a 2.2% increase over the previous record year. In 2004, we continued to focus on upholding the high standards of o u r vision, mission and cure values. Additional attention was given to providing outstanding service to our shareholders and delivering increased value. Our Board of Directors declared significant qiiarterly dividends of$.25 prr share, a 23% increase over each dividend paid in 2003. On June 25, we experienced a milestone when the Russell Index recognized Univest as onc of the top 3,000 performing companies. We are pleased the investment community recognizes our solid performance and commitnicnt to incrcasiiig shareholder valuc. Univest's dedication to providing Fiiznncial Solzrtions Fou Life was apparent in our business activities and successes throughout the year. We made great strides in becoming a stronger integrated company, working hard to increase sales across all business lines and strengthening our brand in the community. In 2004, we continued the expansion of our financial service centers with the opening of our 36* office in Skippack, Montgomery County. Construction also bcgan on our state-of-the art facility in Kulpsville, Montgomery County, which is expected to open in Spring 2005. On December 23, Univest Corporation announced the acquisition of Donald I<. Martin & Company, an insurance agency located i n West Chester, PA. Donald I<. iMartin & Company, A DixTision of Univest Insurance, Inc., specializes in property and casualty insurance for commercial clients with a focus on the nonprofit sector. This exciting acquisition enables Univest to provide insurance solutions for the first time in Chester County. Reaching out to the cominuiutics in our ncwcr markets continues to bc essential to helpiiig us increase brand awareness. A notable achicvcmcnt was the expansion of the 77" annual Univest Grand Prix. This year, we continued with the race held on Saturday in Souderton, and we unveiled the international cycling festival on Sunday in Doylestuwn, Bucks County. Thousands of cycling fans lined the race route as Univcst introduced one of the region's most exciting sporting and community events. We made key advances in tcchnology for our customcrs, shareholders and cmployccs in 2004. After several years of planning and preparation, we launched our new Weh site located a t wivw.zLnivcst.net. Featuring a more convenient design and new services, the site provides customers with easy access to free online banking, bill payment, e-statements and other helpful information. We also launched a new link from our W'eb site www.univert.net, providing shareholders access to industry, company, and shareholder data. A major undertaking for 2004 was impleinenting the regulatory changes required by the Sarbanes-Oxley Act. Lhlikc many puhlicly held companies, Univcst's approach was unique. Following our long-standing tradition of protecting our excellent reputation and exercising the highest standards of corporate gwernancc, w e chose to forego third party involvement and implemented the Act by engaging our employees. With their incredible support, hard work and dedication, w e are in full compliance \+ith Sarbanes-Oxlcy. In September, Marvin A. Anders announced he would mire as Chairman of the Board, effective Deccmher 31,2004, and an extensive management succcssion plan was presented. The plan aligns our executive manageinent team with the evolving needs of our growing financial institution. William S. Aichele, who held the title of President and Chief Executiw Officer of the Corporation and Bank, was also elected Chairman of the Corporation and its three subsidiaries. K. Leon Moyer, who held the title of Senior Executive Vice President for the Corporation and Bank, was elected to Seniiir Exscutivc Vice President of the Corpcmtion and President, Chief Operating Officer and Director for Univest National Bank and Trust Co. Wallace H. Bielcr, who held the title (ifSenior Executive Vice President, Chief Financial Officer, and Corporate Secretary for the Corporation and Bank, was also elcctcd Chief Operation Officer of Univest Corporation. Marvin A. Andcrs will continue to serve OIJ the Univest Board of Directors. Unchanging Values organization's unchanging values. Our integrated Throughout Univest's 128-year history, we successes in 2004 are due, in large measure, to have experienced many changes - a growing our long-term commitment to tradition, excellence, marketplace, increased competition, industry spirituality, community and integrity. In these deregulation, advances in technology, new pages, we will share our highlights with you. products and sewices and ever-changing regulatory requirements. We are proud that while the world around us continues to change, w e strive to be a leader in the market and remain true to our roots. Our excellent leadership teams and dedicated employees strive to live out Univest's mission statement, demonstrating a deep commitment to the 2004 Year in Review The year 2004 proved to be one in which Univest made great strides in becoming a successfully integrated financial services provider. We elevated our brand in the marketplace and raised awareness for being more than a bank ... offering, Financiai Solutions For Life. Univest has earned a reputation as one of the region's top performing financial holding companies. In an increasingly competitive market, our tradition of providing results through hard work and innovation helps to differentiate us. We continue to create long-term sustainable growth, building a strong balance sheet that helps us remain independent. In 2004, we once again lived up to that tradition. We delivered a 2.2 percent increase in net income, the highest in Univest's history, and increased our dividend payout to shareholders by 25 percent. For our customers, w e delivered innovative solutions across business lines and continued to offer competitive rates in a changing rate environment. New Markets, New Solutions On January 30, w e celebrated the grand opening of a new financial service center in Skippack, Montgomeiy County. This insurance and investment needs. Our cross-selling initiative requires that every Univest associate - from teller to branch manager to financial advisor - office features an Express Banking Center, listens carefully to our customers in ordel which provides business customers with 24-hour-a-day access to make deposits and receive rolled coin and bill exchanges. A Coin to Cash machine, available free of charge to customers and non-customers, is another added convenience. to assist them with their finances. At Univest, w e believe that our people are our most important asset. And in 2004, we placed many of our associates in new positions to take advantage of their talents and appropriately align the organization with the growing needs of Retail Banking launched a new line of our customers. checking accounts in May. The six new personal accounts range from Classic Checking with basic services, to Rewards Checking with several free benefits. Growth of core deposits remains a primary focus and these new accounts were designed to meet the individual banking needs of a wide range of customers. Superior service is a Univest hallmark and a true characteristic of our culture. Our commitment to excellent service remains a competitive advantage in a market crowded with impersonal, regional and mega-banks. Part of delivering excellent sewice is identifying customers banking. The vault;s the mast distinctive feature of our historic Souderton Office. Integrated Successes In 2004, Univest Insurance grew impressively Despite sluggish economic recovery, many despite a softening insurance market in which Univest business units performed extremely competition is stiff and rates are being reduced. well. Strong real estate lending helped produce As an independent agency, we are able to a double-digit increase in our Corporate Banking offer insurance through more than 50 carriers, loan portfolio. Doubling its 2004 performance including some of the strongest regional and goal, our Private Banking business unit also national companies. Our commercial property experienced a solid year. Small business and casualty insurance line remains the bedrock development, the lifeblood of our communities, of our insurance business, while our group experienced healthy growth in 2004, and insurance offerings represent significant growth Univest remained one of the top community opportunities. With the cost of medical services bank providers of Small Business Administration continuing to rise, employee benefit solutions (SBAI 7(a) loans. We were particularly proud for our business clients are a strong point when a long-time customer, Byers Choice, of differentiation. received district and regional SBA recognition for their growth and excellent business Through the integrated efforts of Univest performance. Univest was also pleased to Insurance, Retail Banking and Wealth present Pocono Turf Supply Company, Inc. in Management &Trust, w e introduced a package Horsham, Montgomery County with the Univest of employer solutions to help meet the 2004 Small Business of the Year award. needs of our business customers. We worked together to help businesses research, design, plan and implement customized employee benefit packages with health, payroll, 401 K and traditional banking solutions. ~ Univest representatives present the third Univest Small ~ Business Achievement Award. From ieft to right: Patricia J. Kratz, Willjam S. Aichele, Thomas J. Hunter of Pocono Turf Slipply Company, Inc., K. Leon Moyer; aiid Roriaid S. Price. Enhanced Technology In October, Univest adopted the Check To support our sales and customer 21 Act, the federal law that is designed sewice efforts, Univest associates to enable banks to process check images employed a variety of new technology electronically, making the process faster tools in 2004. We launched our new Web and more efficient. While many banks site, located a t www.univesr.neT, featuring in the industry struggled to implement a more interactive environment. The newly the Act, it was a seamless transition for designed site provides customers with our customers who have been receiving easy access to free online banking, bill check images since 2001. payment and links with additional services for shareholders. Creating and bringing the We completed the first full year of using new site online was a true team effort, our Customer Relationship Management and the result underscores our ability (CRM) software in 2004 While helping to deliver integrated financial solutions Univest associates to improve sales in through the ever-dynamic e-channel. banking, insurance and investments, the software also helps employees provide In addition to our enhanced Web site services, w e are one of the few local community banks now able to provide our customers with electronic statements. This is a highly valued service for a growing number of customers who prefer to use the Internet for their banking needs. Customers now have the convenience of managing finances online, receiving statements in a timelier manner, and reducing paperwork. Univest's historical spiritual roots run deep, execute meaningful, mutually beneficial and they are evident daily in the way charitable donations to support worthy w e treat and work with one another. nonprofits. Through the Foundation, We strive to do "the right thing,"whether individuals can achieve significant tax it's in our interactions with fellow advantages by supporting nonprofit employees. customers or the community. organizations through endowments, gift funds, remainder and lead trusts and, One of the most notable expressions beginning in 2005, gift annuities. In 2004, of this philosophy is the Univest the Foundation increased its offerings to Foundation. Incorporated in 2003 clients through a link on the new Web site as a separate 501 (ci(3) organization, www.univest.net, enabling convenient the Foundation helps high net worth access to planning assistance, projections, individuals and families design and calculators and other valuable tools and information. Growing Relationships In December 2004, Univest acquired the Donald K. Martin &Company insurance agency in West Chester, Pennsylvania. Through this agency's strong relationships with nonprofit organizations such as churches, senior adult communities and life care communities, we are enhancing the services w e provide to faith-based and other vital community organizations. The acquisition also extends, for the first time, our footprint into Chester County, enabling us to provide these residents with access to the same full line of financial solutions available to our customers in Bucks and Montgomey counties. Univest continues to be a leader in serving Providing a pleasant work environment family businesses through our Corporate, and stimulating employment is part of Private and Reiail Banking areas. what we do to create a fulfilling career for Generations of businesses and individuals the associates of Univest. Listening to our have benefited from our full platform of employees is an essential part of creating financial solutions - from checking and a company for which they enjoy working. savings to insurance and investments. In 2004, we implemented a program to We have many business customers who solicit employee input on job satisfaction, are second and third generation owners suggestions for improving current and have been banking with us for 20,30 processes and programs and ideas for and even 40 or more years! new initiatives. As a result of this program, w e have started implementing many Increased competition in our region led recommendations that will make Univest to several banks adopting seven-day-a- a better place to work and an organization week banking. While delivering excellent that is even more responsive to customers customer service remains a top priority and shareholders. at Univest, we recognize the importance of providing odr employees with time to spend with their families. A healthy balance between work life and family life is critical to attracting and retaining high-performing employees and achieving overall success for the Corporation. The Univest Insurance corporate office is located in Lansdale, Montgomery County Univest's mission statement offers Univest a prominent foothold in Bucks compelling evidence of how w e view our County, and throughout 2004 w e worked role in the community: "Our purpose and to build our brand, develop relationships philosophy is to be a strong, influential and create new business opportunities. leader in the markets we choose to Our employees in these offices also serve;" to "maintain an active role in got involved in their communities by our communities." joining local boards, supporting local causes, volunteering their time and in In 2004, a major operational focus was other ways contributing to civic life. the continued assimilation of the financial service centers formerly under the First County and Suburban Community banners. These 2003 acquisitions gave The remnants of Hurricane Ivan didn? deter competitors during the first day of the 2004 Univesr Grand Prix iii Souderton The sun shown brightly on the inaugural ruiiiiing o f t h e Univest Grand Prix in Doylesfown. Wliliam S. Aichele congratiilates the winners. 14 L Serving Nonprofits Our Corporate Banking operation continued its tradition of serving the nonprofit community, providing it with fair lending opportunities. Without Univest's support, many nonprofit organizations would not be able to do all of the good work they do throughout our communities. We don't just provide financing assistance. We take a more holistic, consultative approach and work to build relationships. We serve on nonprofit boards and offer our expertise to help them with their finances, fundraising and day-to-day operations. In addition to our financial support to nonprofits. w e also continue to be a leader in the Community Lenders Community Development Corporation (CDC). Founded in 1998. the consortium of community banks continues to provide low-interest financing for affordable housing and other community development projects. He:piiig Uirivest celebrate the second Helping Hands Day in Buchs Counly was Buzzbee, the 8-101 radio niascot Community Outreach grateful appreciation to the countless Beyond our support of various organizations volunteers and local businesses that thi-oughout our marketplace, we have made the 7Ip annual Univest Grand Prix traditionally been an advocate for events a success. driving community spirit and involvement. The Univest Grand Prix remains one of Our other significant community the most anticipated and colorful annual program is Univest Helping Hands, community events in southeastern designed to encourage employees Pennsylvania. This year, the event was to become more involved in our held not only in Souderton, but was communities and to educate the public expanded to a second day in Doylestown. on the need for volunteers. In 2004, Top cycling teams from North America, we expanded our program reach into France, Belgium, Holland and Italy Bucks County by holding expo-style participated in men and women's races. events in Doylestown and Langhorne. Spectators were treated to competitive We hosted dozens of charitable races and enjoyed games, food, organizations and provided employees giveaways and more. and local residents an opportunity to sign up to volunteer with these important The second day of racing in one of our community resources newer markets was a tremendous way for us to demonstrate our commitment to serving our communities. As the event grew, so did our support from the community, volunteers and businesses. In addition to other new sponsors, we were pleased to bring on a major contributor: Doylestown's daily newspaper, The inreiiigencer. They joined Leidy's, Rosenberger's Dairies, Bergey's, Clemens Family Markets, Comcast SportsNet and WFMZ-TV. We want to extend our Bergeys Dealership is a long-tern1 llnwest customer arid a supporter of the Griiiid Prix. Anthony D. DaCosta Ilehl, Retail Loan Originalor for Uiiivesl, helps Hergey's Patricia A. Tucker provide fiiranciiig for the dealersliip's ciistoniers. Employees, customers, sharelholders and shareholders and the public. One of communities all value relationships that the biggest challenges for many public are built on integrity. For Univest, acting companies in 2004 -including Univest - with integrity is not just how w e deal with was implementing the necessary our various audiences; it is critical to the processes and operational changes to business success of an enterprise that comply with SOX Section 404. This was offers a variety of financial solutions for a major undertaking, and Univest met the customers. Increasingly, integrity also is Act's requirements head-on by involving a t the heart of legislation that impacts the entire Corporation. Employees were our industry. challenged to balance the time-consuming SOX requirements of re-evaluating and The Sarbanes-Oxley (SOX) Act was testing internal controls while handling passed in 2003 as a reaction to the failure their regular work responsibilities - and of several publicly held companies to live they came through with flying colors. The up to their responsibilities to employees, Corporation's external auditors commended this holistic approach because many other institutions outsourced their compliance responsibility Investment Solutions To remain competitive in the marketplace and to respond to growing demands, Univest now offers investment options fot various stages of life and asset classes. In conjunction with the launch of the Retail Banking checking series, w e introduced Univest ShareBuilder, which enables customers to invest in more than 4.100 stocks and index securities Integrity is demonstrated daily in the actions of our Wealth Management & Trust Group. Pictured from left to right: J. Matthew Holliday. Gary E, Brown, and Fern M. Zepp. automatically in any dollar amount. This is increased visibility in 2004 through the a simple, flexible and affordable way for launch of an extensive media campaign. individuals to purchase fractional shares Throughout the year, we received a of stock. tremendous increase in media attention from the local, regional and national Univest Investments implemented new press including CNBC. Bloomberg TV, online brokerage capabilities targeting Forbes on Fox and CBS Marketwatch. investors who wan? to manage their own Our representatives also were quoted in finances. The strength of this program Businessweek, The Christian Science is that our experienced professionals Monitor, Investment News, SmartMoney. deliver reliable, personalized guidance USA Today and The Wall Sti-eet Journal, to open the account, then allow the among others customer increased flexibility to continue management of the account electronically We also elevated the profile of Univest Investments among customers in 2004 Our Wealth Management &Trust group and were able to assist more clients began offering clients Separately with a broader array of solutions. Managed Accounts, or SMAs. SMAs The integration effort between Univest offer clients an opportunity to customize Investments and Retail Banking their portfolios, own individual securities helped grow the business significantly. and consolidate investments. Clients Approximately 75 percent of new benefit from working with an experienced business came in through the financial Univest senior financial advisor, choosing service centers, which underscores from an exclusive list of asset managers the importance of integrity and trust in defined by asset class, and receiving one Univest's ability to cross-sell a variety consolidated statement monthly. of services. Raising Our Profile As Univest's scope of services continues to increase, so does our credibility and brand. Our Wealth Management &Trust operation experienced growth and 2 0 0 4 A N A 7 T D A I . I l F P O R 1 Wealth Management & Trust representatives are highly sought experts by the financial media. Top - Gary S. Wolfer appears on Bloomberg TV Bottom ~ James E. Fisher appears on Bloomberg Tv Unchaii giiig Values We have shared many of our 2004 Despite the increases in interest rates highlights in the previous pages, identifying that led to a decrease in the refinancing the strong connection between our values business, our Mortgage Banking area and our accomplishments. Our five core values - tradition, excellence, spirituality, community, and integrity ~ extend beyond also continued to grow because of an increase in referrals. And, referrals came not just from our front-line sales staff, our business highlights into the way we but from employees in all business lines conduct business - and conduct ourselves - and support areas. Mortgage Banking day in and day out. strengthened its scope of services to include, multi-family, mixed-use, and out of Dedication and teamwork were critical to state property loans through relationships many Univest achievements throughout with other investors. Many customers the year, especially with the advances w e were pleased to learn that Univest could made in better integrating our services. provide their primary residential mortgage Corporate Banking strengthened many as well as financing for their vacation customer relationships through Retail property. United Commercial Abstract. L.P., Banking's WorkLife program. Univest our full-service title insurance agency, is a Insurance also benefited from strong convenient way for our customers to obtain integration with Corporate Banking leading title insurance for both residential and the way with the most qualified referrals commercial mortgages. Soudelton. lime of our dest financial service ?nter and our head- iaflers since 1876 of any business line. Univest Investments saw strong referrals from other business areas, too. Clearly. a healthy referral system is built on trust - our customers' belief that they will find the same quality and personalized sewice they've discovered in one business line in other Univest financial solutions. Leadership Development Univest analyzed the customer service and leadership skills of our associates and worked for improvement in 2004. We provided our employees with a variety of training programs to help develop their skills. We hosted another branch managers' seminar focused on connecting the new managers from our First County and Suburban Community acquisitions Univest's dedication to unchanging values with other veteran team members so in 2004 was a beacon in a sea of market they would benefit from this strong change and uncertainty. Every day, the support network. We will continue these Corporation's employees embody these educational efforts in 2005, working with core values in their work and interactions our employees to provide them with the in the community, enabling us to be a tools they need to make sure every service strong business success and a valued experience meets the high standards community resource. All our employees customers have come to expect from us. wish to thank you, the shareholders of our Looking Ahead enterprise, for your continued support - and we look forward to working together In 2004, we enhanced our platform of to serve you and the needs of our solutions; worked internally to improve communities in 2005. employee satisfaction and deliver excellent customer service; strengthened our ability to cross-sell solutions; and implemented a strategic planning process to create momentum into 2005. As w e look ahead, ACTS Retirement~life Communities' corporate headquariers are located in West Point, PA. I ‘ Officers n ofjnnnnr? I , ZOOS U N IVEST C O R P O RAT1 0 N O F P E N N S Y L V A N I A Executive Management Group William S. Aichele, Chairnzan, President ami Chzef E x e c n h e Officer Wallace H. Bieler, Senior Execntive Vice Presidetat, Chbf Operation Officer, ChLf Financial Offcer and Curpurate Secretary K. Leon htoycr, Seniur E.wcutive Vice President Duane J. Brobst, Executive Vice President, Chi$ Credit Officer Douglas R. Delp, Executive I& President Kenneth D. Hochstetler, E.rzcwtiia Vice Pmiident Diane L. Koehler, Executiiv Vice President, Chicj’Hi.rk Officer Ronald S. Price, FIwecutiue Vice President Barry L, Stoltzfus, Executive Vice President Richard R. Swartley, Exemtivc Vice President George D. Terry, Jr., Exccutiue Vice President Senior Vice Presidents Richard L. Boaman G. Brian Cooper Annette D. Szygiel Vice Presidents John R. Benner Linda C. Cahill Patricia S. Coleman Barbara J. Cornell Ted M. Doman Suzanne M. Fleischmann Senior Vice Presidents G. Jay Francis Richard D. Juniper Garry R. Kuhnle Mary Beth Liddle Mary L. Marger William B. Meyer Diane R. hloyer Keith B. Paich M. Theresa Schwartzer Lori L. Shelly Karen E. Tejkl Keith C. Thomas U N IVE ST N A T l O N A L B A N K A N D T R U S T C O . Executive Management Group William S. iiichelc, Chairman and ChiefExeci~tive Officer K. Leon Moyer, President and Chief Operatin8 Office. Wallace H. Bider, SenZo?, Executive Vice President, Chief Financial Office?, a?zd Corporate Seciwary Duane J. Brobst, ExeczLtive Vice Preidcnt, Chief Credit O f f e r Douglas R. Delp, Executire Vice Pmident Ronald S. Price, E.wczitive T7ice President Barry L. Stoltzfus, Execntive Vice President George D. Terry, Jr., Evecntive Vice President Executive Vice President H. Paul Lewis Gary E. Brown Aileen M. Connolly J. Matthew Holliday Kenneth L. Keller John T. Landes Rose A. Radcliff Stephen D. Robinson Vice Presidents Stephanie A. Bowers John J. Buczek Thomas C. Cassidy, 111 Vernon L. Clemmer Gregory J. D’Angelo John C. Dooley John W. Duerksen Carmella A. Faust James E. Fisher Darlene E. Grafton David C. Groves Darren G . Johnson Patricia J. Kratz Cynthia D. Lauterbach William D. Maeglin William F. Marks Teresa A. Mason Timothy E. Mininger Richard t5’. Slabinski, Jr. James M. Spindler Raymon iM. Staley Timothy V. Swartley Jane E. Ward Harry A. Wenzel Gary S. Wolfer Fern M. Zepp OTHER PRINCIPAL UNIVEST INVESTMENTS, INC. S U B S I D I A R I E S U N I V E S T William S. Aichele, L%ail.nzail 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 Rcalty Corporation Univest Reinsurance Corporation Univest Delaware, Inc. I Iirect o r s ,!1 ,,/ / , ? , , l , , l ! . , ~ i. Jilll-> William S. Aichele *t Chairman, President and Chief Execzrtive Oficer, Univert Corpuration ufPennqlvania; niid Chairman, and Chief Executive f)fjcev, C?ziiwt Mationnl Rank and Twst Co. Marvin A. Andcrs *t Retired Chaiuman, Univest Curporatiun of Pmwylvauia; mid Retired Chnivmaii, Univest Natioizaltlank and Zust Cu. James 1,. Bergey *I PYesident and Sales M a m . e r Abrnm W Regey &Suns, Inc. R. I h e Delp * Principal, R.L. De@ C? Cumpay Kenneth D. Hochstetlcr, President Darren C . Johnson, Vzcel+eszdent UNIVEST INSURANCE. INC. William S. Aichele, Chnirmnn Kciineth D. Hochstetler, Pmident George Becker, Jr., Senior Vice l’mident Richard W. Godshall, M.D.” Upper Bucks Orthopaedic Associntes Charles H. Hoeflich *t Chzii-m.an Emeritus, Uwivest Clorpwation ufl’e?zri.c/lvanin Norman L. Kellcr * Retired Execartive Vice President. Umivest Corporation of Pennsylvania Thomas K. Lcidy *t Pvesident atad ChiefExecntive Officer, Ixidy’r, Inc. H. Ray Mininger * Pueside%t, H. Il”iini?ger C?Suu, h c . William G. Morral’ Execectitive Director. Morth Penn United Way Donald K. Martin, .%xior Vice Pwsident William R. Erickson, Vice P’resident Christine 13. Lightfoot, Vice President Hervey tt’. Schofield, Vice Presideizt Gail M. Strohnieyer, Vice Pmidetat Richard Theis, I’ice President K. Leon IMoyer t President and Chief fperatiilg O f f e r , Unii7est ?Jntiunal RavLk and Trust Co. Merrill S. Moyer * Retired Chairmail, Zinivest Corporation of Peniirylvania; aizd Rctiwd Chairman, U?ziim National Bank nizd Trust C u . Paul Gregory Shelly *t President, Shellv Enterpiser, Inc. John U. Young * Consdtnnt mid Director Alde@r Rolognn Co., Im. Margaret K. Zook O Executive Director, Soudertuii hfeunnaite Homes * Director of Univest Corporation of Pennsylvania t Director of Univest National Bank and Trust Co. Alternate Director of Univest Corporation of Pennsyhania 21 Locations Univest Plaza Office Corpovate Headquarten 14 North Main Street PO Bos 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 Univest Insurance, Inc. (West Chester Office) 27 South Church Street West Chester, PA 19382 1.800.875.0227 Bensalem Office 3325 Street Road 4 Greenwood Square Bensalem, PA 19020 215.244.9200 Buckingham Office Hunt Acres Center 5006 York Road Holicong, PA 18928 215.794.5916 Center Point Office 2960 Skippack Pike Worcester, PL4 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 Strcet Doylestown, PA 18901 215.348.7966 Doylestown Cross Keys Office 842 Korth 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 Green Lane, PA 18054 215.234.4511 Harleysville Office Clemens Market 611 Main Street Harleysville, PA 19438 215.256.8048 H i l l t o w n Supermarket Office Clemens Market 731 Route 113 Souderton, PA 18964 215.721.9863 H i l l t o w n Office Routes 113 & 309 Souderton, PA 18964 215721.2471 Kulpsville Office 1715 Sumncytown Pike Kulpsville, PA 19443 215.368.1666 Lansdale Area Office 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 Route 309 &Line Lexington Road Line Lexington, PA 18932 215.822.3314 M i l f o r d Office 1950 John Fries Highway Milford Square, PA 18935 215.536.4204 Montgomery Office 986 Bethlehem Pike Montgomeryville, PA 18936 215.699.3525 N e w Britain Office Clemens Market 202 Town Ccuter New Britain, PA 18901 215.345.8259 N e w t o w n Office 3 Friends Lane Kervtown, PA 18940 215.504.2828 Oxford Valley Office 100 K. Buckstown Drive Suite E-205 Langhorne, PA 19047 215.891.0201 Perkasie Office 545 Constitution Avenue Perkasie, P.4 18944 215.257.6607 Corporate Headquarters Univest Stock Transfer Agent Univest Plaza 14 North Main Street P.O. Box 64197 Souderton, Pennsylvania 18964 Shareholders’ Meeting The Annual Sharcholdcrs’ Meeting will take place at 10:45 am., Tuesday,April 12,2005, in thc Board Room at Univest Plaza, 14 North Main Street, Souderton, Pennsylvania. For more information on Univest Corporation of Pennsylvania com- iiion stock, please call StockTraiis, Inc. at 610.649.7300 or contact them at 44 West Lancastcr ,4veiiuc, A4rd~iiorc, PA 19003. You may also click on our invcstor relations link at iuww.univest.net. Univest Shareholder Information Hotline For more information on the Univest Corporation of Pennsylvania, plcasc call 215.721.2434. Market Makers lor Univest Corporation of Pennsylvania Common Stock Bocnniiig & Scattergood, Iiic. Ferris Baker Watts, Inc. Hill, Thompson, Magid & Co. Janney Montgomery, I d C Knight Securities, L.P. Legg Mason Wood Walker, Inc. Moors & Cabot, Iiic. Ryan Beck & Co., Inc. Susquchanna Capital Group Repr R e x (Sec Rose esent iurcer urityl, ‘ A . Ri

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