CORRESP 1 filename1.htm Correspondence
September 9, 2009
William Friar, Senior Financial Analyst
United States Securities and Exchange Commission
Division of Corporation Finance
Washington, D.C. 20549
Via EDGAR upload
Re:  
Univest Corp of Pennsylvania
Form 10-K for Fiscal Year Ended December 31, 2008
File No. 0-7617
Dear Mr. Friar:
Thank you for your most recent review and comment letter, dated August 31, 2009, on our Form 10-K for the year ended December 31, 2008 including Schedule 14A. We have reviewed your comments; each is specifically addressed below in response to your numbered comments as presented in your letter. The Registrant recognizes the importance of gaining clear explanation of all aspects of Form 10-K and Schedule 14A reporting. As a result of the detailed clarification herein presented, be assured that these areas will be addressed in a clear and concise manner similar in presentation to these responses for all future Form 10-K and Schedule14A reporting.
Form 10-K for the Fiscal Year ended December 31, 2008
Signatures, Page 95
SEC Comment 1:  
Please note that the person serving in the capacity of principal accounting officer must be identified. See Instruction D to Form 10-K.
Response:  
The Registrant’s principal accounting officer is Jeffrey M. Schweitzer, Executive Vice President and Chief Financial Officer. In future filings we will clearly designate this as follows on the Signatures Page:
SIGNATURES
Pursuant to the requirement of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  UNIVEST CORPORATION OF PENNSYLVANIA
(Registrant)
 		  
  By:   /s/ Jeffrey M. Schweitzer    
    Jeffrey M. Schweitzer   
    Executive Vice President and
Chief Financial Officer
(Principal Accounting Officer) 		  
 
Univest Plaza • 14 N. Main Street • P.O. Box 64197 • Souderton, Pennsylvania 18964-0197 • (215) 721-2400
www.univest-corp.com

 

 

 

William Friar, Senior Financial Analyst
United States Securities and Exchange Commission
September 9, 2009
Page 2
Schedule 14A
Election of Directors and Alternate Directors, page 2
     
SEC Comment 2:
  In future proxy statements, please explain what are the functions and responsibilities of alternate directors, and how those functions and responsibilities differ from the functions and responsibilities of directors.
Response:
  We have noted the staff’s comment and in future filings will explain the functions and responsibilities of alternate directors, and how those functions and responsibilities differ from the functions and responsibilities of directors.
Executive Compensation, page 10
     
SEC Comment 3:
  In future filings please revise to explain in specific terms how your compensation methodology resulted in the actual compensation earned in the prior year, including between cash, stock or other form of payment for each area of compensation. Note that this applies for any level of compensation. Please refer to Item 402(b)(1)(v) of Regulation S-K.
Response:
  We have noted the staff’s comment and in future filings will explain how our compensation methodology resulted in the actual compensation earned in the prior year, including between cash, stock or other form of payment for each area and all levels of compensation as required under Item 402(b)(1)(v) of Regulation S-K.
SEC Comment 4:
  It appears that you are using targets to award compensation. In future filings please provide the actual targets and the company’s performance, even if no compensation was awarded. If you believe that disclosure of the historical targets is not required because it would result in competitive harm such that the targets could be excluded under Instruction 4 to Item 402(b) of regulations S-K, please provide a detailed supplemental analysis supporting you conclusion. In particular, you competitive harm analysis should clearly explain the nexus between disclosure of the performance objectives and the competitive harm that is likely to result from disclosure. Refer to Item 402(b)(2)(v) of Regulation S-K and Regulation S-K Compliance and Disclosure Interpretation 118.04.
Response:
  We have noted the staff’s comment and in future filings will either:
 
  1) provide the actual targets and the company’s performance, even if no compensation was awarded; or
 
  2) provide, upon a conclusion that we believe the disclosure of the historical targets is not required because it would result in competitive harm such that the targets could be excluded under Instruction 4 to Item 402(b) of Regulations S-K, a detailed supplemental analysis supporting our conclusion, including a competitive harm analysis clearly explaining the nexus between disclosure of the performance objectives and the competitive harm that is likely to result from disclosure.

 

 

 

William Friar, Senior Financial Analyst
United States Securities and Exchange Commission
September 9, 2009
Page 3
Summary Compensation Table, page 17
     
SEC Comment 5:
  If not otherwise clear, please expand your footnote disclosure to explain the values presented. For example, if some of the prior year compensation relates to compensation two years past, this should be explained with quantification.
Response:
  We have expanded the footnote disclosures in the Summary Compensation Table to explain the values presented. These expanded disclosures are underlined in the following.
SUMMARY COMPENSATION TABLE
                                                                         
                                                    Change in              
                                                    Pension Value              
                                                    and Non-              
                                                    qualified              
                                            Non-Equity     Deferred              
                            Stock     Option     Incentive Plan     Compensation     All Other        
Name and Principal Position   Year     Salary     Bonus     Awards     Awards     Compensation     Earnings     Compensation     Total  
(a)   (b)     (c)     (d)     (e)     (f)     (g)     (h)     (i)     (j)  
William S. Aichele,
     2008     $ 430,000     $ -0-     $ 52,078     $ -0-     $ 112,501     $ 135,654     $ 45,062     $ 775,295  
Chairman, President, and CEO
     2007       395,000       -0-       105,550       95,183       104,181       245,126       32,134       977,174  
of the Corporation and
     2006       382,000       -0-       -0-       -0-       -0-       212,424       32,163       626,587  
Chairman of the Bank
                                                                        
 
                                                                        
K. Leon Moyer,
     2008       271,300       -0-       22,698       -0-       56,794       191,131       34,578       576,501  
Vice Chairman of the
    2007       246,000       -0-       52,775       47,592       45,418       203,389       19,938       615,112  
Corporation and President
    2006       235,000       -0-       -0-       -0-       -0-       204,210       18,446       457,656  
and CEO of the Bank
                                                                        
 
                                                                        
Jeffrey M. Schweitzer, CPA,
    2008       200,000       -0-       3,276       -0-       26,163       -0-       18,810       248,249  
Executive Vice President and
     2007       46,154       -0-       21,110       27,242       6,594       -0-       800       101,900  
CFO of the Corporation and
     2006       N/A       N/A       N/A       N/A       N/A       N/A       N/A       N/A  
of the Bank (k)
                                                                        
 
                                                                        
Kenneth D. Hochstetler,
    2008       166,250       -0-       9,880       -0-       30,465       12,707       23,345       242,647  
Senior Executive Vice
     2007       150,000       -0-       21,110       27,242       19,782       21,381       12,268       251,783  
President of the Corporation;
     2006       124,800       -0-       -0-       -0-       -0-       17,351       9,748       151,899  
President of Univest Investments; and President of Univest Insurance                                                                        
 
                                                                        
Duane J. Brobst,
    2008       164,166       -0-       9,230       -0-       21,484       20,183       27,428       242,491  
Executive Vice President
    2007       140,000       -0-       21,110       27,242       18,463       40,586       27,161       274,562  
and Chief Risk Officer of
    2006       120,000       -0-       -0-       -0-       -0-       25,339       24,937       144,934  
the Corporation and of the Bank                                                                        
     
(e)  
Represents the fair value of restricted stock granted during 2008, 2007 and 2006, respectively. There were no restricted stock grants in 2006. The 2008 grants were the Corporation’s matches as discussed under “Annual Incentives” to those executive officers who choose to receive a percentage of their 2007 performance based annual incentive bonus in stock instead of cash. The 2007 grants were based on 2007 performance.
 
(f)  
Represents the fair value for all stock options granted during 2008, 2007 and 2006, respectively, in accordance with Statement of Financial Accounting Standards No. 123R (SFAS 123R.) Assumptions used in calculating the SFAS 123R fair value on these stock options are set forth in Note 10 to the Financial Statements included in Univest’s Form 10-K for the year ended December 31, 2008. The 2007 grants were based on 2007 performance; there were no grants during 2008 or 2006.
 
(g)  
Includes cash payments under the Annual Incentive Program paid in 2008, 2007 and 2006, respectively. There were no Annual Incentive Plan payouts for 2006 based on 2006 performance. Amounts for 2008 were based on 2008 performance and amounts for 2007 were based on 2007 performance.

 

 

 

William Friar, Senior Financial Analyst
United States Securities and Exchange Commission
September 9, 2009
Page 4
     
(i)  
Includes Deferred Salary Savings Plan (401(k)) company matching contributions, life insurance premiums, imputed income on split dollar life insurance plans, car allowance, expense allowance, personal tax preparation services, and country club membership dues.
 
(k)  
Mr. Schweitzer joined Univest in October 2007; amounts in the table for 2007 are not reflective of an entire twelve-month period.
In connection with responding to your comments, I, Jeffrey M. Schweitzer, Executive Vice President and Chief Financial Officer of Univest Corporation of Pennsylvania, (the “Registrant”), acknowledge the following:
  •  
the Registrant is responsible for the adequacy and accuracy of the disclosure in the filing;
  •  
staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and
  •  
the Registrant many not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.
If you have any further questions, please feel free to contact me at 215-721-2458.
         
  Sincerely,
 		  
  /s/ Jeffrey M. Schweitzer
 		  
  Jeffrey M. Schweitzer   
  Executive Vice President and
Chief Financial Officer 		  
 
Cc:  
William S. Aichele, Chairman, President and CEO
Mary Beth Liddle, Senior Vice President and Controller
Jane G. Davis, Esquire, Shumaker Williams P.C.
Allen L. Shubin, Partner, KPMG LLP