102212--3/5/2010--UNIVEST_CORP_OF

related topics

{loan, real, estate}

{acquisition, growth, future}

{stock, price, share}

{regulation, change, law}

{competitive, industry, competition}

{financial, litigation, operation}

{condition, economic, financial}

{tax, income, asset}

{capital, credit, financial}

{loss, insurance, financial}

{product, market, service}

{interest, director, officer}

{system, service, information}

{control, financial, internal}

{personnel, key, retain}

{operation, natural, condition}

We cannot predict the effect of recent legislative and regulatory initiatives. Regulatory initiatives by the government could increase our costs of doing business and adversely affect our results of operations and financial condition. We borrow from the Federal Home Loan Bank and the Federal Reserve, and there can be no assurance these programs will continue in their current manner. Our results of operations may be adversely affected by other-than-temporary impairment charges relating to our investment portfolio. We may need to raise additional capital in the future and such capital may not be available when needed or at all. Risks Related to Our Market and Business The Corporation s profitability is affected by economic conditions in the Commonwealth of Pennsylvania. The Corporation operates in a highly competitive industry and market area. The Corporation s controls and procedures may fail or be circumvented. Potential acquisitions may disrupt the Corporation s business and dilute shareholder value. The Corporation may not be able to attract and retain skilled people. If we lost a significant portion of our low-cost deposits, it would negatively impact our liquidity and profitability. The Corporation s information systems may experience an interruption or breach in security. The Corporation continually encounters technological change. The Corporation is subject to claims and litigation. External events could impact the Corporation. The Corporation depends on the accuracy and completeness of information about customers and counterparties Risks Related to the Banking Industry The Corporation is subject to interest rate risk. The Corporation is subject to lending risk. The Corporation s allowance for possible loan and lease losses may be insufficient and an increase in the allowance would reduce earnings. Changes in economic conditions and the composition of our loan portfolio could lead to higher loan charge-offs or an increase in our provision for loan losses and may reduce our net income. The Corporation is subject to environmental liability risk associated with lending activities. The Corporation is subject to extensive government regulation and supervision. Consumers may decide not to use banks to complete their financial transactions. Risks Related to Our Common Stock and Common Stock Offerings An investment in the Corporation s common stock is not an insured deposit. The Corporation has broad discretion in applying the net proceeds from offerings. The Corporation s stock price can be volatile.

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102212--3/5/2010--UNIVEST_CORP_OF_PENNSYLVANIA