Union National Financial Corporation announced unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported interest and fees on loans and leases was $5,597,000 compared to $6,158,000 for the same period last year. Net interest income was $3,361,000 compared to $3,840,000 for the same period last year. Net income was $147,000 or $0.05 basic and diluted per share as compared to net income of $626,000 or $0.23 basic and diluted earnings per common share for the third quarter of 2008. Return on average stockholders' equity was 1.88% compared to 8.27% for the same period last year. For the nine months, the company reported interest and fees on loans and leases was $16,478,000 compared to $18,665,000 for the same period last year. Net interest income was $9,284,000 compared to $10,965,000 for the same period last year. Net loss was $257,000 or $0.09 basic and diluted per share compared to net income of $1,343,000 or $0.51 basic and diluted earnings per common share for the first nine months of 2008. Negative return on average stockholders' equity was 1.098% compared to positive return on average stockholders' equity of 6.06% for the same period last year. As on September 30, 2009 the company's book value per share was $11.27 compared to $11.42 per share on September 30, 2008. As on September 30, 2009 the company's dilutive book value per share was $10.83 compared to $11.42 per share on September 30, 2008.

On October 1, 2009, Union National Financial Corporation was notified that the audit practice of Beard Miller Company LLP, an independent registered public accounting firm, was combined with ParenteBeard LLC in a transaction pursuant to which Beard combined its operations with ParenteBeard. On October 1, 2009, Beard resigned as the auditors of the company and with the approval of the Audit Committee of the company's Board of Directors, ParenteBeard was engaged as its independent registered public accounting firm.

On September 15, 2009, Union National Financial Corporation filed with the Pennsylvania Department of State two Statements with Respect to Shares which, effective upon filing, designated two series of preferred stock as '5% Non-Cumulative Non-Voting Convertible Perpetual Preferred Stock, Series A', and '6% Non-Cumulative Non-Voting Non-Convertible Perpetual Preferred Stock, Series B', and set forth the voting and other powers, designations, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions of the Series A Preferred Stock and Series B Preferred Stock.