Univest Financial
Annual Report 2009

Plain-text annual report

2 0 0 9 A N N U A L R E P O R T WEBelieve. “To be the best integrated financial solutions provider in the market.” Our Vision Statement WEBelie “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 like eagles; they will run and not grow weary, they will walk and not faint.” – Isaiah 40:29, 31 TABLE OF CONTENTS 2 0 0 9 A N N U A L R E P O R T Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . .3 Letter to Shareholders . . . . . . . . . . . . . . . . .4-5 2009 Highlights . . . . . . . . . . . . . . . . . . . .6-11 Officers and Board of Directors . . .12-13 Locations . . . . . . . . . . . . . . . . . . . . . . . . .14-15 Shareholder Information . . . . . . . . . . . . . . . . .16 ve. 1 2 0 0 9 FINANCIAL PERFORMANCE A N N U A L R E P O R T Shareholders’ Equity (in millions) Net Loans and Leases (in millions) Dividends Declared (per share) 8 6 2 9 9 1 3 0 2 5 8 1 3 7 0 1 6 1 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 0 4 3 , 1 2 4 3 , 1 7 3 4 , 1 1 0 4 , 1 6 3 2 , 1 1 6 1 , 1 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 8 7 . 0 8 . 0 8 . 0 8 . 2 7 7 . 6 . ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 9 4 . 5 1 1 7 . 5 1 7 2 . 6 1 5 2 . 4 1 7 3 . 3 1 7 4 . 2 1 Book Value (per share) 2 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 FINANCIAL HIGHLIGHTS 2 0 0 9 At December 31, (in Thousands) 2009 2008 Cash, interest-earning deposits and federal funds sold . . . . . . . . . . . . . . . . . . . . . $68,597 Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,045 Net loans and leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,401,182 Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195,597 $ 40,066 432,266 1,436,774 175,691 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,085,421 $ 2,084,797 Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,564,257 $ 1,527,328 Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214,063 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,294 Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,817,614 Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267,807 312,736 41,526 1,881,590 203,207 Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . $2,085,421 $ 2,084,797 A N N U A L R E P O R T For the years ended December 31, (in Thousands, Except Share and Per Share Data) 2009 2008 2007 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $96,359 $ 108,057 $ 116,144 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,723 Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,636 Provision for loan and lease losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,886 Net interest income after provision for loan and lease losses . . . . . . . . . . . . . . . . . . . . 46,750 Noninterest income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,917 Noninterest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,324 Net income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,343 Applicable income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563 42,310 65,747 8,769 56,978 26,615 57,225 26,368 5,778 54,127 62,017 2,166 59,851 27,268 52,211 34,908 9,351 Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,780 $ 20,590 $ 25,557 Book value per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16.27 $ 15.71 $ 15.49 Net income per share: Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75 Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75 Dividends declared per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.80 1.60 1.60 0.80 1.98 1.98 0.80 Weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,347,104 Period end shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,465,083 12,872,899 12,938,514 12,884,804 12,830,609 3 To Our Family of EMPLOYEES, CUSTOMERS AND SHAREHOLDERS U nivest has always faced the future with optimism and confidence. No matter what economic and business conditions we face, we believe our future is bright and we believe the strength and stability built during our 133-year history will sustain our business even in challenging times. “Univest’s growth during a historic economic downturn speaks to our solid core operations and our integrated platform of solutions.“ The year 2009 presented Univest’s employees, customers, shareholders and communities with the biggest financial challenges of our generation. Throughout the year, the economic recession worsened, the jobless rate reached the highest level in 26 years and foreclosures continued at a record pace. It wasn’t easy to instill a sense of security during a time of negative economic reports, long-time competitors experienced financial difficulty and record numbers of banks failed – 140 in 2009. Nevertheless, we are confident and remain focused on achieving our vision and carrying out our disciplined business approach with our Core Values top-of-mind. As a result, we ended the year with solid performance compared to our peers. As of December 31, 2009, we reported net income of $10.8 million. Univest’s growth during a historic economic downturn speaks to our strong core operations and our integrated platform of financial solutions. We continued to grow 4 WE Believe. while keeping our commitment to support our local economy by investing in our local communities. And, we were pleased to share our financial success with our loyal shareholders through our quarterly dividends. We are in a position of strength and are poised to respond offensively to the market disruption, seize opportunities to continue building our corporation and control our destiny. We are well-positioned to build our business in part due to our strong focus on capital. On July 14, Univest completed a shelf filing to lay the groundwork for our historic capital raise, which commenced on August 3. The stock offering was completed on August 12, after 3,392,500 shares of common stock were sold. The net proceeds of the offering after deducting underwriting discounts, commissions and expenses was $55.6 million. Univest Corporation intends to use the net proceeds from the offensive offering for general corporate purposes to ensure the corporation’s long-term financial health and independence. WE The strength of our capital position helped support additional growth into our two newest markets – Chester County and the Lehigh Valley. Not only did we expand our corporate banking departments by adding two new Senior Relationship Managers in Chester County and two We are proud of our accomplishments and ability to overcome the challenges facing our nation, our industry and our communities. We have remained a leader and we’ve done so with a sense of commitment, upholding our strong traditions and believing in our employees, customers, shareholders and communities. We anticipate new challenges and opportunities will arise over the next 12 months as our nation works through an economic recovery. We understand the road will be long, but we believe by staying the course and using our Mission, Vision and Core Values as our guides, we’ll face whatever the future brings with confidence. On behalf of the entire Univest family, we want to thank you for your continued support and investment. Sincerely, Senior Relationship Managers and a Senior Credit Officer in the Lehigh Valley, but we also increased our support for these communities by partnering with well-known local organizations to demonstrate our commitment to these regions and elevate the Univest brand. Increasing our visibility in our markets through an extensive brand campaign was an important priority in 2009. As industry challenges increased and disruptions among local financial institutions caused many people to consider changing banks, Univest National Bank’s visibility and reputation as a dependable, service- oriented community bank positioned us well to gain new market share. Consumers, businesses and nonprofit organizations throughout our marketplace discovered our ability to do more than provide loans. They experienced our ability to get behind our customers and demonstrate our belief in them and our commitment to help them achieve their financial dreams. Our solid record of achievement in 2009 reflects the value of our greatest asset – our employees. This past year, they rose to the challenge of growing the business by demonstrating an uncommon drive to succeed. While many businesses were forced to cut back on staffing levels, we expanded our employee base to support the needs of our growing lines of business. Together, our employees delivered integrated financial solutions and provided exceptional service to our customers. In the process, they continued building a stronger organization. Through our employees’ efforts, Univest was recognized for the fourth consecutive year as a Best Place to Work in Pennsylvania. We also were honored by the Central Bucks Chamber of Commerce with the 2009 Lifetime Achievement Award in Business and by the Philadelphia Business Journal with the 2009 Corporate Philanthropy Award. Two of our great leaders retired from the Board of Directors in 2009 after decades of service to Univest and our communities. Merrill S. Moyer and Norman L. Keller were not only devoted members of the Board of Directors, but had also been long- time employees, serving in executive leadership roles for many years. Their contributions, vision and strategic direction helped Univest grow and evolve into a strong, stable organization. I want to take this opportunity to recognize them and thank them again for their dedicated service. Following these retirements, H. Paul Lewis and Mark A. Schlosser, past Alternate Directors, became Directors, and K. Leon Moyer and Douglas C. Clemens were appointed Alternate Directors. Believe. William S. Aichele Chairman, President and Chief Executive Officer January 31, 2010 2 0 0 9 A N N U A L R E P O R T 5 THE POWER OF BELIEVING Throughout 2009, as many financial institutions, corporations and individuals turned to the government for assistance in climbing out of the worst recession in recent memory, Univest showed its resilience and resolve – working with our shareholders, employees and communities to create a stronger, more secure future. While many banks were bought, sold, merged or bailed out, Univest “Believed” in our focused and disciplined business philosophy and our integrated financial solutions model. And, we believed in our most important stakeholders: our shareholders, employees, customers and communities. We remained true to our core values, and we emerged from a challenging year poised to take advantage of future opportunities. Univest employees hosted a business card exchange at our Bensalem Office with the Lower Bucks County Chamber of Commerce West Chester, Chester County Our new Benefits Consultants team from Liberty Benefits Promoting cycling while giving back to the West Chester community 6 WE Believe. HIGHLIGHTS Building Shareholder Value, Believing in Our Future I n a sign of the times, some financial institutions marked 2009 a success simply because they were profitable during every fiscal quarter of the year. While Univest can claim this distinction too, our sights were set much higher. Our intent was not just to survive what soon became known as “The Great Recession,” but to thrive in the difficult economic environment and seize the opportunities so many other financial institutions could not grasp. Univest began the year by building on the strength of two late-2008 acquisitions: Liberty Benefits, Inc., a full-service employee benefits brokerage and consulting firm; and Trollinger Consulting Group, an independent actuarial, administrative, consulting/compliance and investment counseling firm serving municipal pension plan clients. Liberty Benefits enabled us to take advantage of the most robust segment of the insurance industry – the fast-growing employee benefits market. Trollinger Consulting Group helped us expand our investments offerings further into a profitable niche. Both acquisitions performed well in 2009 and provided Univest with additional services to build top line revenue and complement our strong array of integrated financial solutions. The Trollinger acquisition became a key component of Univest’s entry into the Lehigh Valley market, where we expanded operations by successfully recruiting three additional officers. We also added to our human capital in Chester County and, significantly, in our new Mortgage Banking business. Established in November 2008, this business grew impressively in 2009, benefiting from strong demand for refinancing in a low interest rate environment. This new venture was one of Univest’s biggest 2009 success stories. The corporation’s single most significant event of the year occurred in August when the company completed a historic public offering of 3,392,500 shares of common stock. The proceeds of the offering netted $55.6 million, enabling us to continue pursuing our strategy of growing organically and by acquisition, ensuring the corporation’s long-term financial health and independence. Univest initiated the capital raise from a position of strength, further bolstering our already well- capitalized position. In fact, Univest remains one of the mid-Atlantic region’s best capitalized financial institutions, highlighting the success of our steady, focused business philosophy and growth strategies. Univest remains one of the mid-Atlantic region’s best capitalized financial institutions, highlighting the success of our steady, focused business philosophy and growth strategies. Mortgage Banking team achieves $100 million milestone 2 0 0 9 A N N U A L R E P O R T 7 Many financial institutions struggled with their asset quality throughout 2009. Univest tackled this challenge head on and worked with our customers to ameliorate the effects of past due loans, non- accrual loans and non-performing loans. While we were not immune to asset quality challenges during the year, we outperformed most banks in our peer group and throughout the industry. Univest’s determination to strengthen the business for the long term prompted us to work even more closely with our customers in order to help their businesses overcome these tough times. We believe by doing so we are ensuring more loyal, long-lasting relationships with our customers and communities. In order to attract more customers, Univest continued to prospect for new business in traditional and nontraditional ways – both within and outside our four-county service area. UnivestDirect, the online channel of Univest National Bank and Trust Co., has become our fastest growing source of deposits, drawing customers from all 50 states. And, through Univest’s Onsite CheckPass®, businesses can remotely deposit their check items at their convenience from their office computers. Two complementary branding campaigns initiated in 2009 set Univest apart from our competitors, highlighting key Univest differentiators. The “Dream Big” campaign, introduced during a high- profile media schedule, encouraged consumers to “Never underestimate the power of someone believing in you,” and positioned Univest as the financial partner that “believes in your dreams.” We extended the campaign through the “Dream Big Sweepstakes,” in which one person’s dream was granted with a $2,500 check. The contest had a heart-warming conclusion when the Sweepstakes winnings were awarded to an East Greenville family struggling with a terminally ill family member. The “Believe in Local” campaign, designed to attract new customers – especially those who had banking relationships with Univest competitors – encouraged consumers to bank with Univest, soon to be the largest locally owned community bank in our market. While the campaign was introduced in 2009 and extended into 2010, Univest has long understood the importance of supporting our local communities. We continued to live out our Mission Statement by believing in the citizens and businesses in our marketplace and doing our part to help our local communities remain vibrant. Dream Big Campaign featuring customer testimonials East Greenville, Montgomery County financialSEN$E Outreach: Our “Bank on Books” assembly with Mike Berenstain 8 WE Believe. Believing in Our Customers and Communities – The Univest Way Part of Univest’s “Dream Big” campaign was a month-long effort to give back to the community through “Random Acts of Kindness.” Thirty-two Univest employees called “The Dream Team” visited local retail businesses and shopping centers to surprise community members by paying for their shopping trip, lunch or a cup of coffee. Not infrequently, the surprised recipient paid the random act of kindness forward by offering to pay for a friend’s or neighbor’s groceries or a service station customer’s gasoline. Such acts by fellow community members demonstrated how, as the largest locally owned community bank in the area, Univest’s belief in others is completely in synch with the values of our communities. “Believing in our customers and communities” is a powerful, new way of expressing important facets of Univest’s corporate culture. Our Mission Statement challenges us to be a “strong, influential leader in the markets we choose to serve” and to “maintain an active role in our communities.” And, among our Core Values are “tradition” and “community” – traits which certainly bespeak a belief in those with whom we work and whom we serve. Perhaps the most important way we believed in our customers and communities in 2009 was by continuing to lend to our corporate and individual customers. While Wall Street was in upheaval, our Main Street community bank proactively and judiciously managed credit quality and remained focused on building a stronger future – for our shareholders, employees, customers and communities. In a recessionary economy, many Univest customers and members of our communities were looking for advice and counsel from a trusted financial partner. Through our financialSEN$E literacy program, we hosted financial seminars and provided tips in our financial service centers, online and through the news media. We supported our communities in much more visible ways, too. The Univest Grand Prix remains our signature community event, and has become one of the most popular and highly anticipated annual showcases of our communities. In 2009, while many similar corporate- sponsored events were cancelled or scaled back, Univest showed our confidence in the future and commitment to our communities by expanding the Univest Grand Prix Part of Univest’s “Dream Big” campaign was a month-long effort to give back to the community through “Random Acts of Kindness.” The Klotz Family – Our “Dream Big” sweepstakes winners 2 0 0 9 A N N U A L R E P O R T 9 In 2009, we continued our financial support of more than 300 not-for-profits, while our employees served in hundreds of volunteer positions with local organizations. Employees and community members volunteer during the United Way’s “Days of Caring” to include a third day of racing. We added an Allentown team time trial stage on Friday, September 11, boosting the race’s excitement and helping to extend our presence into the Lehigh Valley. On Saturday, the 12th annual running of the most prestigious UCI Pro/Am road race in the United States, the 100-mile Univest Grand Prix, was held along the main streets and byways of Montgomery County. And, on Sunday, the three-day festival concluded with the Univest Grand Prix Doylestown Criterium. Thousands of race fans lined the streets for the three stages of the event, and live television coverage was provided by WFMZ Channel 69, NBC affiliate Universal Sports and Comcast SportsNet. Charitable giving, coupled with community involvement, have long been hallmarks of the Univest culture. In 2009, we continued our financial support of more than 300 not-for-profits, while our employees served in hundreds of volunteer positions with local organizations. Even in a challenging economic environment, Univest and our employees actively demonstrated a belief in our communities and the well-being of our neighbors through a record-setting response to the annual United Way campaign. Where “Believing” Starts: Univest Employees The relationship between Univest and our employees is symbiotic. Our employees are the corporation’s most important ambassadors – the faces our customers and communities come to know and trust. Day in and day out, they are what makes Univest’s belief in our communities come to life. Univest nourishes this relationship with employees by believing in them; providing a stable and safe work environment; compensating them fairly; and encouraging and enabling career growth. While Univest also experienced the challenges created by the historic economic downturn, we remained invested in the talent and experience of our employees for the long term. Many banks implemented salary reductions, reductions in hours, layoffs and the elimination or limitations on 401k matching dollars to boost earnings. Univest's approach to business recognizes our employees as our most important asset. We realize the challenges of 2009 will likely extend into 2010, but we also believe the challenges are temporary – and Univest is depending on our sound business practices, our integrated platform of product offerings – and 10 WE Believe. our dedicated employees – to help us weather the storm and to prepare us for the opportunities ahead. In 2009, we invested in our employees’ futures – and our own – by continuing our pension plan and encouraging employees to continue their education and training with our financial assistance. We bucked the trend toward workforce downsizing and instead took advantage of opportunities to add seasoned professionals to our employee base. Attracting top talent across the industry has been made easier with our consistent recognition as a Best Place to Work. For the fourth straight year, Univest was named among the Best Places to Work in Pennsylvania – again ranking among the state’s 10 best large companies. Our employees’ efforts made this honor possible, and the distinction doesn’t just benefit them. Our shareholders and communities benefit from a workplace run efficiently and served by employees who are happy, knowledgeable and motivated to consistently provide a quality experience. While times are challenging and it would be easy for employee morale to decline, it is encouraging – and a source of great pride – to know our employees believe Univest has a bright future. 12th annual Univest Grand Prix What We Believe What will the economy bring in 2010? Some economists predict continued, significant economic challenges through the third or fourth quarter – even into 2011. Others proclaim America has seen the worst of the recession and we are on the rebound. What do we believe? No matter what challenges lie ahead… • We believe in controlling our own destiny and remaining independent by maintaining a strong capital position. • We believe our focused and disciplined business philosophy has been at the core of Univest’s success for 133 years – and will continue to be into the future. • We believe our integrated platform of financial solutions provides increased opportunities and greater financial stability for the corporation. • We believe in the power of building strong relationships – with our shareholders, employees, customers and communities. • And, we believe while 2010 may be another challenging year, Univest will continue to perform well – providing for you, our valued shareholders, an investment you can rely on and a company of which you can be proud. The employees of Univest thank you for your continued confidence and loyalty. 2 0 0 9 A N N U A L R E P O R T 11 OFFICERS Univest Corporation of Pennsylvania Univest National Bank and Trust Co. Executive Management Team Executive Management Team William S. Aichele, Chairman, President & Chief Executive Officer K. Leon Moyer, Vice Chairman William S. Aichele, Chairman K. Leon Moyer, President & Chief Executive Officer Jeffrey M. Schweitzer, Executive Vice President & Kenneth D. Hochstetler, Senior Executive Vice President Chief Financial Officer Jeffrey M. Schweitzer, Executive Philip C. Jackson, Market President, Vice President & Chief Financial Officer Montgomery County Duane J. Brobst, Executive Vice President Kenneth L. Keller, Market President, Bucks County & Chief Risk Officer Duane J. Brobst, Executive Vice President & Annette D. Szygiel, Executive Vice President Chief Risk Officer & Chief Experience Officer Univest Investments, Inc. Other Wholly-Owned Subsidiaries William S. Aichele, Chairman Kenneth D. Hochstetler, President WEBelie Jeffrey M. Schweitzer, Secretary/Treasurer Jeffrey M. Schweitzer, Secretary/Treasurer Kenneth D. Hochstetler, President William S. Aichele, Chairman Univest Insurance, Inc. Univest Delaware, Inc. Univest Realty Corporation Univest Reinsurance Company TCG Investment Advisory, Inc. Allied Benefits Group, LLC Delview, Inc. Univest Capital Trust I Univest Capital, Inc. Hugh W. Connelly, President Jeffrey M. Schweitzer, Secretary/Treasurer 12 WE Believe. BOARD OF DIRECTORS Univest Corporation of Pennsylvania William S. Aichele *† Chairman, President & Chief Executive Officer, Univest Corporation of Pennsylvania and Chairman, Univest National Bank and Trust Co. William G. Morral, CPA* Financial Consultant Former CFO of Moyer Packing Company Marvin A. Anders *† Retired Chairman, Univest Corporation of Pennsylvania and Retired Chairman, Univest National Bank and Trust Co. Douglas C. Clemens ° President, Clemens Food Group Vice Chairman, Univest Corporation of Pennsylvania and President & Chief Executive Officer, Univest National K. Leon Moyer °† Bank and Trust Co. ve. Principal, R.L. Delp & Company H. Ray Mininger * R. Lee Delp * Vice President/Secretary, H. Mininger & Son, Inc. 2 0 0 9 A N N U A L R E P O R T Charles H. Hoeflich *† Chairman Emeritus, Univest Corporation of Pennsylvania Mark A. Schlosser * Secretary/Treasurer, Schlosser Steel, Inc. and President, Schlosser Steel Building, Inc. Paul Gregory Shelly *† President, Shelly Enterprises, Inc. Thomas K. Leidy *† Vice President, ALL Holdings Former President & CEO Leidy's, Inc. John U. Young * Retired President & CEO Alderfer Bologna Co., Inc. H. Paul Lewis * Vice President/Sales Agent Bucks County Commercial Realty, Inc. Retired Executive Vice President, Univest National Bank and Trust Co. Margaret K. Zook ° Retired Executive Director Souderton Mennonite Homes * Director of Univest Corporation of Pennsylvania † Director of Univest National Bank and Trust Co. o Alternate Director of Univest Corporation of Pennsylvania William S. Aichele and Univest Corporation were honored by Penn Foundation with the 2009 Adventures in Excellence Award. Univest employees and representatives of the Board of Directors celebrated this achievement. 13 UNIVEST CORPORATION OFFICE LOCATIONS Quakertown Supermarket 215.538.3407 GIANT Food Stores 1465-7 W. Broad Street Quakertown, PA 18951 Sellersville 215.257.8060 835 Lawn Avenue Sellersville, PA 18960 Silverdale 215.257.9600 103 Baringer Avenue Silverdale, PA 18962 Solebury 215.862.3750 Logan Square Shopping Center 6542D York Road New Hope, PA 18938 Telford Supermarket 215.721.0973 Landis Market 2685 County Line Road Telford, PA 18969 Warminster 215.956.1611 601 Louis Drive Warminster, PA 18974 BUCKS COUNTY Bucks County Regional Center 267.898.0520 1980 South Easton Road Suite 150 Doylestown, PA 18901 Univest Capital, Inc. 866.604.8161 3325 Street Road, Suite 125 Bensalem, PA 19020 BUCKS COUNTY FINANCIAL SERVICE CENTERS Bensalem 215.244.9200 2645 Street Road Bensalem, PA 19020 Buckingham 215.794.5916 Hunt Acres Center 5006 York Road Holicong, PA 18928 Chalfont 215.996.1633 195 E. Butler Avenue Chalfont, PA 18914 Doylestown 215.348.7966 191 W. State Street Doylestown, PA 18901 Doylestown Cross Keys 215.348.8620 842 North Easton Road Doylestown, PA 18902 Feasterville 215.354.0330 40 E. Street Road Feasterville, PA 19053 Hilltown 215.721.2471 Routes 113 & 309 Souderton, PA 18964 Milford 215.536.4204 1950 John Fries Highway Milford Square, PA 18935 Newtown 215.504.2828 3 Friends Lane Newtown, PA 18940 Perkasie 215.257.6607 545 Constitution Avenue Perkasie, PA 18944 Plumsteadville 215.766.3701 5829 Easton Road Plumsteadville, PA 18949 Doylestown, Bucks County Souderton, Montgomery County 14 WE Believe. CHESTER COUNTY MONTGOMERY COUNTY Lansdale Area Chester County Corporate Group 888.225.6371 Glenloch Corporate Campus 1473 Dunwoody Drive West Chester, PA 19380 Univest Insurance, Inc. West Chester 888.225.6371 Glenloch Corporate Campus 1473 Dunwoody Drive West Chester, PA 19380 LEHIGH COUNTY Lehigh Valley Corporate Group 484.224.3029 Suite 100 1275 Glenlivet Drive Allentown, PA 18106 Trollinger Consulting Group 800.501.0045 1132 Hamilton Street Suite 212 Allentown, PA 18101 MARYLAND Univest Insurance, Inc. Upper Marlboro 301.952.0046 14757 Main Street, Suite 106 Upper Marlboro, MD 20772 215.362.8835 Route 63 & Forty Foot Road Lansdale, PA 19446 Line Lexington 215.822.3314 Route 309 & Line Lexington Road Line Lexington, PA 18932 Montgomery 215.699.3525 Route 309 & Stump Road Montgomeryville, PA 18936 Royersford 484.931.2600 328 North Lewis Road Royersford, PA 19468 Schwenksville 610.287.7811 415 Main Street Schwenksville, PA 19473 Skippack 610.222.3923 Township Line Road & Route 113 Skippack, PA 19473 Souderton 215.721.2464 10 W. Broad Street Souderton, PA 18964 Univest Corporate Headquarters Univest Plaza 877.723.5571 14 North Main Street P.O. Box 64197 Souderton, PA 18964 Univest Insurance, Inc. Lansdale 800.220.3077 521 Main Street P.O. Box 391 Lansdale, PA 19446 MONTGOMERY COUNTY FINANCIAL SERVICE CENTERS Blue Bell 610.279.3901 694 DeKalb Pike Blue Bell, PA 19422 East Greenville 215.679.7928 321 Main Street East Greenville, PA 18041 Franconia 215.721.0707 Route 113 & Allentown Road Franconia, PA 18924 Green Lane 215.234.4511 101 Walnut Street Green Lane, PA 18054 Kulpsville 215.368.1666 1715 Sumneytown Pike Kulpsville, PA 19443 West Chester, Chester County Telford 215.723.4515 50 Penn Avenue Telford, PA 18969 Trappe 610.454.0883 595 W. Main Street Trappe, PA 19426 Vernfield 215.256.9413 2870 Shelly Road Harleysville, PA 19438 Univest National Bank and Trust Co. offers 12 retirement community financial service centers throughout Bucks and Montgomery counties. For a complete listing, please visit www.univest.net. 2 0 0 9 A N N U A L R E P O R T 15 SHAREHOLDER INFORMATION Shareholders' Meeting The Annual Shareholders' Meeting will take place at 10:45 a.m., Tuesday, April 20, 2010, in the Board Room at Univest Plaza, 14 North Main Street, Souderton, PA Stock Transfer Agent For more information on Univest Corporation of Pennsylvania common stock, please call StockTrans, Inc., at 610.649.7300 or contact them at 44 West Lancaster Avenue, Ardmore, PA 19003. You may also click on our investor relations link at www.univest.net. Rated #7 by our employees Most Charitable Givers #1 Large Company Shareholder Information Hotline For more information on Univest Corporation of Pennsylvania, please call 877.723.5571 or 215.721.2434 2009 Lifetime Achievement Award in Business Common Stock Information Traded on the NASDAQ National Market, Symbol: UVSP 2009 Adventures in Excellence Award Market Makers for Univest Corporation of Pennsylvania Common Stock Boenning & Scattergood, Inc. Goldman, Sachs & Co. Keefe Bruyette & Woods, Inc. Knight Equity Markets, L.P. Morgan Stanley & Co., Inc. UBS Securities, LLC 16 WE Believe. Photo Contributors: Central Bucks Chamber of Commerce Greater West Chester Chamber of Commerce Lowell Swartley, Lowell Swartley Photography Souderton-Telford Main Streets Todd White, Scenic Bucks County Upper Bucks Chamber of Commerce Upper Perkiomen Valley Chamber of Commerce WEBelieve. UNIVEST 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 is provided for both the Corporation and our shareholders. UNIVEST CORE VALUES Tradition • Integrity • Excellence • Community • Spirituality 2 0 0 9 A N N U A L R E P O R T 17 www.univest.net 877.723.5571 Souderton,PA18964 P.O.Box64197 14NorthMainStreet UnivestPlaza WEBelieve. T R O P E R L A U N N A 2009 Univest Plaza 14 North Main Street P.O. Box 64197 Souderton, PA 18964 877.723.5571 www.univest.net 17 T R O P E R L A U N N A 2009 Tradition•Integrity•Excellence•Community•Spirituality UNIVESTCOREVALUES Corporationandourshareholders. employeessothatafairprofitisprovidedforboththe andbuildloyalrelationshipswithourcustomersand organizations;maintainanactiveroleinourcommunities; financialsolutionstoindividuals,businessesandnonprofit leaderinthemarketswechoosetoserve.Wewillprovide Ourpurposeandphilosophyistobeastrong,influential UNIVESTMISSIONSTATEMENT WEBelieve. 

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