Univest Corporation of Pennsylvania – Univest Bank and Trust Co. – Reports Third Quarter Earnings

SOUDERTON, Pa., Oct. 28, 2015 (GLOBE NEWSWIRE) — Univest Corporation of Pennsylvania (“Univest” or “Corporation”) (NASDAQ:UVSP), parent company of Univest Bank and Trust Co. (“Bank”) and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter ended September 30, 2015. Univest reported net income of $7.5 million or $0.39 diluted earnings per share for the quarter ended September 30, 2015, a 21% increase from reported net income of $6.2 million or $0.38 diluted earnings per share for the quarter ended September 30, 2014. Net income for the nine months ended September 30, 2015 was $20.1 million or $1.02 diluted earnings per share, an 18% increase in net income compared to $17.0 million or $1.04 diluted earnings per share for the comparable period in the prior year. The quarter and year-to-date financial results include the Valley Green Bank acquisition which Univest completed on January 1, 2015 and now operates as Valley Green Bank, a Division of the Bank (“Valley Green Bank”). The results for the nine months ended September 30, 2015 included $2.0 million of integration and acquisition-related costs associated with Valley Green Bank, incurred during the first and second quarters, or $0.07 diluted earnings per share on a year-to-date tax affected basis. The results for the nine months ended September 30, 2015 also included $1.6 million of restructuring charges, incurred in the second quarter, related to the consolidation of six financial centers in September 2015 under the Bank’s optimization plan or $0.05 diluted earnings per share on a tax affected basis. Excluding these costs, net income for the nine months ended September 30, 2015 would have been $22.5 million or $1.14 diluted earnings per share. 

Loans

Gross loans and leases increased $471.2 million from December 31, 2014 and $500.1 million from September 30, 2014, including $380.9 million of loans acquired from Valley Green Bank. Organic loan growth was 6% (8% annualized) from December 31, 2014 and 7% from September 30, 2014. The growth in loans from December 31, 2014 and September 30, 2014 was primarily in commercial real estate loans and residential real estate loans. 

Deposits

Total deposits increased $511.5 million from December 31, 2014 and $512.7 million from September 30, 2014, primarily due to $385.9 million of deposits acquired from Valley Green Bank and an increase in public funds mostly due to seasonal tax deposits. 

Borrowings

Borrowings at September 30, 2015 included $50 million in aggregate principal amount fixed-to-floating rate subordinated notes issued in a private placement transaction to institutional accredited investors completed on March 30, 2015. The subordinated notes have a five-year, fixed rate of 5.10% and thereafter a rate of three-month LIBOR plus 3.544%, until the maturity date of March 30, 2025 or any early redemption date.

Net Interest Income and Margin

Net interest income increased $5.1 million to $23.4 million for the third quarter of 2015 from the same period in 2014. Net interest income increased $16.1 million for the nine months ended September 30, 2015 from the same period in the prior year. The net interest margin on a tax-equivalent basis for the third quarter of 2015 was 3.89%, compared to 4.03% for the second quarter of 2015 and 3.88% for the third quarter of 2014. The increase in net interest income during 2015 was mainly due to the impact of the Valley Green Bank acquisition, which included the average net interest-earning assets acquired and the net accretion of acquisition accounting fair value adjustments (the impact of the acquisition accounting adjustments was 8 basis points for the third quarter of 2015 and 10 basis points for the nine months ended September 30, 2015). The subordinated debt issuance increased funding costs by 14 basis points in the third quarter of 2015 and 9 basis points for the nine months ended September 30, 2015 from the comparable periods in the prior year.

Non-Interest Income

Non-interest income for the quarter ended September 30, 2015 was $12.9 million, an increase of $345 thousand or 3% from the third quarter of 2014. Non-interest income for the nine months ended September 30, 2015 was $39.6 million, an increase of $3.1 million or 8% from the comparable period in the prior year. Insurance commission and fee income increased $2.2 million for the nine months ended September 30, 2015, primarily due to the acquisition of Sterner Insurance on July 1, 2014. The net gain on mortgage banking activities increased $507 thousand for the quarter and $2.3 million for the nine months ended September 30, 2015, mainly due to an increase in purchase volume. Funded first mortgage volume for the quarter increased $7.3 million or 17%, and $67.7 million or 78% for the nine months ended September 30, 2015, compared to the same periods in 2014. These favorable increases were partially offset by a decline in investment advisory commission and fee income of $399 thousand for the quarter and $954 thousand for the nine months ended September 30, 2015. The decline in investment advisory commission and fee income was related to the fourth quarter of 2014 divestiture of approximately $375 million in marginally profitable assets under the supervision of independent consultants.

Non-Interest Expense

Non-interest expense for the quarter ended September 30, 2015 was $25.2 million, an increase of $3.2 million or 15%, compared to the third quarter of 2014. Non-interest expense for the nine months ended September 30, 2015 was $79.5 million, an increase of $14.8 million or 23% from the comparable period in the prior year. Non-interest expense was impacted by the Valley Green Bank acquisition which included integration and acquisition-related costs totaling $2.0 million for the nine months ended September 30, 2015. Salaries and benefit expense increased $935 thousand for the quarter and $5.3 million for the nine months ended September 30, 2015, primarily attributable to the Valley Green Bank acquisition and increased pension plan expense. The Sterner Insurance acquisition also impacted year-to-date salaries and benefits expense. This increase was partially offset by higher deferred loan origination costs. Commission expense increased $558 thousand for the nine months ended September 30, 2015, mostly due to the increase in mortgage banking volume. Premises and equipment expenses increased $809 thousand for the quarter and $2.4 million for the nine months ended September 30, 2015, mainly due to the Valley Green Bank acquisition and increased investments in computer equipment and software.

In addition, non-interest expense for the nine months ended September 30, 2015 included restructuring charges of $1.6 million recognized during the second quarter related to the consolidation of six financial centers in September 2015 under the Bank’s optimization plan. The projected annualized savings from these consolidations is $1.9 million.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, were $20.8 million at September 30, 2015 compared to $17.3 million at December 31, 2014 and $18.8 million at September 30, 2014. Net loan and lease charge-offs were $1.7 million during the third quarter of 2015 compared to $2.6 million for the third quarter of 2014. Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 0.99% at September 30, 2015 compared to 1.07% at December 31, 2014 and 1.18% at September 30, 2014. The provision for loan and lease losses was $670 thousand for the third quarter of 2015, compared to $233 thousand for the third quarter of 2014.

The allowance for loan and lease losses as a percentage of loans and leases held for investment was 0.89% at September 30, 2015, compared to 1.27% at December 31, 2014 and 1.36% at September 30, 2014. At September 30, 2015, the allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding loans acquired in the Valley Green Bank acquisition which were recorded at fair value as of the acquisition date, was 1.06%. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 110.58% at September 30, 2015, compared to 119.18% at December 31, 2014 and 115.67% at September 30, 2014.  

Capital

Univest continues to remain well-capitalized at September 30, 2015. Univest adopted the new Basel III regulatory capital rules during the first quarter of 2015 under the transition rules. Total risk-based capital at September 30, 2015 under Basel III was 13.67%, well in excess of the regulatory minimum for well-capitalized status of 10%.

During the quarter, Univest repurchased 86,650 shares of common stock at a cost of $1.8 million under the share repurchase program. Shares available for future repurchases under the plan totaled 1,080,246 at September 30, 2015. Total shares outstanding at September 30, 2015 were 19,502,613.

Dividend

On August 21, 2015, Univest declared a quarterly cash dividend of $0.20 per share, payable on October 1, 2015. This represented a 4.21% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.

About Univest Corporation of Pennsylvania

Univest Corporation of Pennsylvania (UVSP), including its wholly-owned subsidiary, Univest Bank and Trust Co., has $2.9 billion in assets and $3.0 billion in assets under management and supervision through its Wealth Management lines of business. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices in southeastern Pennsylvania extending to the Lehigh Valley, Maryland and online at www.univest.net

This press release of Univest Corporation of Pennsylvania and the reports Univest Corporation of Pennsylvania files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the financial services industry and, specifically, the financial operations, markets and products of Univest Corporation of Pennsylvania. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation of Pennsylvania’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest Corporation of Pennsylvania is engaged; (6) technological issues which may adversely affect Univest Corporation of Pennsylvania’s financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation of Pennsylvania files with the Securities and Exchange Commission. Univest Corporation of Pennsylvania undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2015
(Dollars in thousands)                            
                             
Balance Sheet (Period End)   09/30/15   06/30/15   03/31/15   12/31/14   09/30/14        
Assets   $ 2,851,568     $ 2,780,578     $ 2,757,495     $ 2,235,321     $ 2,222,196          
Investment securities     374,558       374,711       380,484       368,630       360,778          
Loans held for sale     9,151       8,831       5,479       3,302       2,156          
Loans and leases held for investment, gross     2,097,807       2,107,857       2,043,840       1,626,625       1,597,736          
Allowance for loan and lease losses     18,620       19,602       20,934       20,662       21,762          
Loans and leases held for investment, net     2,079,187       2,088,255       2,022,906       1,605,963       1,575,974          
Total deposits     2,372,865       2,263,025       2,254,834       1,861,341       1,860,143          
Noninterest-bearing deposits     519,767       519,026       509,183       449,339       436,189          
NOW, money market and savings     1,361,827       1,288,318       1,293,165       1,159,409       1,162,778          
Time deposits     491,271       455,681       452,486       252,593       261,176          
Borrowings     70,531       110,480       91,423       41,974       38,005          
Shareholders’ equity     359,109       356,186       360,394       284,554       289,814          
                             
                             
Balance Sheet (Average)   For the three months ended,   For the nine months ended,
    09/30/15   06/30/15   03/31/15   12/31/14   09/30/14   09/30/15   09/30/14
Assets   $ 2,804,578     $ 2,739,968     $ 2,691,513     $ 2,239,015     $ 2,217,474     $ 2,745,767     $ 2,189,858  
Investment securities     368,837       375,887       381,008       363,567       360,274       375,200       375,847  
Loans and leases, gross     2,098,007       2,067,120       2,023,835       1,607,918       1,597,965       2,063,259       1,571,709  
Deposits     2,325,049       2,242,217       2,237,830       1,875,938       1,860,138       2,268,685       1,834,558  
Shareholders’ equity     357,150       359,154       362,125       291,547       288,429       359,457       285,518  
                             
                             
Asset Quality Data (Period End)                            
    09/30/15   06/30/15   03/31/15   12/31/14   09/30/14        
Nonaccrual loans and leases, including nonaccrual troubled debt restructured                            
loans and leases and nonaccrual loans held for sale   $ 20,838     $ 17,697     $ 18,604     $ 17,337     $ 18,814          
Accruing loans and leases 90 days or more past due     428       287       1,063       451       344          
Accruing troubled debt restructured loans and leases     4,789       6,099       5,341       5,469       5,463          
Other real estate owned     955       955       955       955       955          
Nonperforming assets     27,010       25,038       25,963       24,212       25,576          
Allowance for loan and lease losses     18,620       19,602       20,934       20,662       21,762          
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual     0.99 %     0.84 %     0.91 %     1.07 %     1.18 %        
loans held for sale                            
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual     1.24 %     1.14 %     1.22 %     1.43 %     1.54 %        
loans held for sale                            
Allowance for loan and lease losses / Loans and leases held for investment     0.89 %     0.93 %     1.02 %     1.27 %     1.36 %        
Allowance for loan and lease losses / Loans and leases held for investment     1.06 %     1.12 %     1.26 %     1.27 %     1.36 %        
(excluding acquired loans at period-end)                            
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment     110.58 %     143.11 %     112.52 %     119.18 %     115.67 %        
Allowance for loan and lease losses / Nonperforming loans and leases held for investment   84.43 %     97.60 %     83.71 %     88.84 %     88.39 %        
Acquired credit impaired loans     1,379       1,876       1,631                      
                             
                             
    For the three months ended,   For the nine months ended,
    09/30/15   06/30/15   03/31/15   12/31/14   09/30/14   09/30/15   09/30/14
Net loan and lease charge-offs   $ 1,652     $ 2,473     $ 802     $ 1,748     $ 2,565     $ 4,927     $ 5,691  
Net loan and lease charge-offs (annualized)/Average loans and leases     0.31 %     0.48 %     0.16 %     0.43 %     0.64 %     0.32 %     0.48 %
                             

 

Univest Corporation of Pennsylvania  
Consolidated Selected Financial Data  
September 30, 2015  
(Dollars in thousands, except per share data)                              
    For the three months ended,   For the nine months ended,  
For the period:   09/30/15   06/30/15   03/31/15   12/31/14   09/30/14   09/30/15   09/30/14  
Interest income   $ 25,585     $ 25,513     $ 24,738     $ 18,995     $ 19,219     $ 75,836     $ 56,890    
Interest expense     2,220       2,133       1,434       1,039       978       5,787       2,957    
Net interest income     23,365       23,380       23,304       17,956       18,241       70,049       53,933    
Provision for loan and lease losses     670       1,141       1,074       648       233       2,885       2,959    
Net interest income after provision     22,695       22,239       22,230       17,308       18,008       67,164       50,974    
Noninterest income:                              
Trust fee income     1,904       2,154       1,820       2,143       1,862       5,878       5,692    
Service charges on deposit accounts     1,069       1,039       1,063       1,096       1,073       3,171       3,134    
Investment advisory commission and fee income     2,687       2,740       2,763       2,760       3,086       8,190       9,144    
Insurance commission and fee income     3,232       3,434       4,146       2,896       2,881       10,812       8,647    
Bank owned life insurance income     306       211       353       461       346       870       1,167    
Net gain on sales of investment securities     296       181       91       78             568       557    
Net gain on mortgage banking activities     1,123       1,367       1,258       698       616       3,748       1,484    
Net gain on sales of other real estate owned     14                         195       14       195    
Other income     2,224       2,225       1,937       1,944       2,451       6,386       6,555    
Total noninterest income     12,855       13,351       13,431       12,076       12,510       39,637       36,575    
Noninterest expense:                              
Salaries and benefits     11,970       11,957       13,314       10,297       11,035       37,241       31,948    
Commissions     2,174       2,155       1,814       2,052       2,200       6,143       5,585    
Premises and equipment     3,924       3,743       4,047       3,368       3,115       11,714       9,300    
Professional fees     1,096       1,066       807       765       744       2,969       2,399    
Intangible expenses     710       893       786       405       352       2,389       1,762    
Acquisition-related costs           41       466       531       180       507       739    
Integration costs           110       1,374             8       1,484       8    
Restructuring charges           1,642                         1,642          
Other expense     5,369       5,225       4,803       5,144       4,385       15,397       12,951    
Total noninterest expense     25,243       26,832       27,411       22,562       22,019       79,486       64,692    
Income before taxes     10,307       8,758       8,250       6,822       8,499       27,315       22,857    
Income taxes     2,779       2,292       2,134       1,632       2,264       7,205       5,816    
Net income   $ 7,528     $ 6,466     $ 6,116     $ 5,190     $ 6,235     $ 20,110     $ 17,041    
                               
Per common share data:                              
Book value per share   $ 18.41     $ 18.21     $ 18.18     $ 17.54     $ 17.87     $ 18.41     $ 17.87    
Net income per share:                              
Basic   $ 0.39     $ 0.33     $ 0.31     $ 0.32     $ 0.38     $ 1.02     $ 1.05    
Diluted   $ 0.39     $ 0.33     $ 0.31     $ 0.32     $ 0.38     $ 1.02     $ 1.04    
Dividends declared per share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.60     $ 0.60    
Weighted average shares outstanding     19,506,609       19,675,002       19,951,242       16,215,580       16,225,596       19,709,322       16,241,490    
Period end shares outstanding     19,502,613       19,559,941       19,820,824       16,221,607       16,220,249       19,502,613       16,220,249    
                               

 

Univest Corporation of Pennsylvania  
Consolidated Selected Financial Data  
September 30, 2015  
                                     
                                     
                                     
          For the three months ended,   For the nine months ended,  
Profitability Ratios (annualized)     09/30/15   06/30/15   03/31/15   12/31/14   09/30/14   09/30/15   09/30/14  
                                     
Return on average assets       1.06 %     0.95 %     0.92 %     0.92 %     1.12 %     0.98 %     1.04 %  
Return on average assets, excluding integration     1.06 %     1.12 %     1.10 %     1.01 %     1.14 %     1.09 %     1.07 %  
and acquisition-related costs and restructuring charges                            
Return on average shareholders’ equity     8.36 %     7.22 %     6.85 %     7.06 %     8.58 %     7.48 %     7.98 %  
Return on average shareholders’ equity, excluding   8.36 %     8.52 %     8.19 %     7.78 %     8.80 %     8.36 %     8.23 %  
integration and acquisition-related costs and                              
restructuring charges                                  
Return on average tangible common equity, excluding   12.91 %     13.12 %     12.48 %     10.73 %     12.21 %     12.84 %     11.25 %  
integration and acquisition-related costs and                              
restructuring charges                                  
Net interest margin (FTE)       3.89 %     4.03 %     4.12 %     3.78 %     3.88 %     4.01 %     3.90 %  
Efficiency ratio (1)         66.96 %     70.29 %     71.68 %     71.46 %     68.39 %     69.66 %     68.19 %  
Efficiency ratio (1), excluding integration and     66.96 %     65.60 %     66.87 %     69.78 %     67.81 %     66.47 %     67.40 %  
acquisition-related costs and restructuring charges                            
                                     
Capitalization Ratios                                  
                                     
Dividends declared to net income       51.79 %     60.49 %     65.26 %     62.49 %     52.01 %     58.68 %     57.16 %  
Shareholders’ equity to assets (Period End)     12.59 %     12.81 %     13.07 %     12.73 %     13.04 %     12.59 %     13.04 %  
Tangible common equity to tangible assets     8.56 %     8.67 %     8.91 %     9.49 %     9.78 %     8.56 %     9.78 %  
                                     
                                     
Regulatory Capital Ratios  (Period End) (2)                              
Tier 1 leverage ratio         9.75 %     9.89 %     10.16 %     10.55 %     10.50 %     9.75 %     10.50 %  
Common equity tier 1 risk-based capital ratio     10.84 %     10.77 %     11.09 %                 10.84 %        
Tier 1 risk-based capital ratio       10.84 %     10.77 %     11.09 %     11.79 %     11.98 %     10.84 %     11.98 %  
Total risk-based capital ratio       13.67 %     13.65 %     14.09 %     12.91 %     13.18 %     13.67 %     13.18 %  
                                     
                                     
                                     
(1) Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income.  
(2) Ratios for 2015 are reported under BASEL III regulatory capital rules. On January 1, 2015, the BASEL III rules became effective, subject to transition provisions primarily relating to regulatory deductions and adjustments impacting common equity tier 1 capital and tier 1 capital, to be phased in over a three-year period beginning January 1, 2015. Ratios for 2014 are reported under BASEL I.  
                                     

 

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential    
    For the Three Months Ended September 30,        
Tax Equivalent Basis     2015           2014        
  Average Income/ Average   Average Income/ Average    
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate    
Assets:                  
Interest-earning deposits with other banks $   50,514   $   21     0.16 % $   34,701   $   18     0.21 %  
U.S. government obligations     119,712       345     1.14       127,505       320     1.00    
Obligations of state and political subdivisions     109,300       1,335     4.85       107,039       1,360     5.04    
Other debt and equity securities     139,825       859     2.44       125,730       643     2.03    
Federal funds sold     –       –     –       –       –     –    
Total interest-earning deposits and investments     419,351       2,560     2.42       394,975       2,341     2.35    
                   
Commercial, financial, and agricultural loans     423,912       4,219     3.95       394,297       4,054     4.08    
Real estate—commercial and construction loans     857,181       9,942     4.60       622,249       6,722     4.29    
Real estate—residential loans     509,599       5,786     4.50       298,530       3,067     4.08    
Loans to individuals     28,957       388     5.32       30,616       492     6.38    
Municipal loans and leases     205,302       2,450     4.73       181,170       2,214     4.85    
Lease financings     73,056       1,555     8.44       71,103       1,586     8.85    
Gross loans and leases     2,098,007       24,340     4.60       1,597,965       18,135     4.50    
Total interest-earning assets     2,517,358       26,900     4.24       1,992,940       20,476     4.08    
Cash and due from banks     35,419             36,600          
Reserve for loan and lease losses     (20,494 )           (24,450 )        
Premises and equipment, net     40,852             35,580          
Other assets     231,443             176,804          
Total assets $   2,804,578         $   2,217,474          
                   
Liabilities:                  
Interest-bearing checking deposits $   375,362   $   77     0.08   $   316,923   $   44     0.06    
Money market savings     361,530       318     0.35       290,194       79     0.11    
Regular savings     590,331       134     0.09       537,175       80     0.06    
Time deposits     463,524       1,014     0.87       265,293       768     1.15    
Total time and interest-bearing deposits     1,790,747       1,543     0.34       1,409,585       971     0.27    
                   
Short-term borrowings     30,520       10     0.13       38,763       7     0.07    
Subordinated notes (1)     49,321       667     5.37       –       –     –    
Total borrowings     79,841       677     3.36       38,763       7     0.07    
Total interest-bearing liabilities     1,870,588       2,220     0.47       1,448,348       978     0.27    
Noninterest-bearing deposits     534,302             450,553          
Accrued expenses and other liabilities     42,538             30,144          
Total liabilities     2,447,428             1,929,045          
                   
Shareholders’ Equity:                  
Common stock     110,271             91,332          
Additional paid-in capital     120,770             62,268          
Retained earnings and other equity     126,109             134,829          
Total shareholders’ equity     357,150             288,429          
Total liabilities and shareholders’ equity $   2,804,578         $   2,217,474          
Net interest income   $   24,680         $   19,498        
                   
Net interest spread       3.77         3.81    
Effect of net interest-free funding sources       0.12         0.07    
Net interest margin       3.89 %       3.88 %  
                           
Ratio of average interest-earning assets to average interest-bearing liabilities   134.58 %         137.60 %        
                   
(1)  The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense.  
                   
                   
Notes: For rate calculation purposes, average loan and lease categories include unearned discount.  
Nonaccrual loans and leases have been included in the average loan and lease balances.  
Loans held for sale have been included in the average loan balances.  
Tax-equivalent amounts for the three months ended September 30, 2015 and 2014 have been calculated using the Corporation’s federal applicable rate of 35.0%.  
                   

 

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential    
    For the Nine Months Ended September 30,        
Tax Equivalent Basis     2015           2014        
  Average Income/ Average   Average Income/ Average    
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate    
Assets:                  
Interest-earning deposits with other banks $   25,957   $   37     0.19 % $   28,457   $   49     0.23 %  
U.S. government obligations     129,646       1,075     1.11       128,799       967     1.00    
Obligations of state and political subdivisions     107,807       4,011     4.97       107,269       4,189     5.22    
Other debt and equity securities     137,747       2,267     2.20       139,779       2,058     1.97    
Federal funds sold     2,448       2     0.11       –       –     –    
Total interest-earning deposits, investments and federal funds sold     403,605       7,392     2.45       404,304       7,263     2.40    
                   
Commercial, financial, and agricultural loans     426,997       12,951     4.06       396,915       11,925     4.02    
Real estate—commercial and construction loans     841,930       29,486     4.68       602,862       19,692     4.37    
Real estate—residential loans     488,646       16,789     4.59       288,548       8,865     4.11    
Loans to individuals     29,570       1,184     5.35       34,981       1,627     6.22    
Municipal loans and leases     204,748       7,318     4.78       177,446       6,447     4.86    
Lease financings     71,368       4,673     8.75       70,957       4,807     9.06    
Gross loans and leases     2,063,259       72,401     4.69       1,571,709       53,363     4.54    
Total interest-earning assets     2,466,864       79,793     4.32       1,976,013       60,626     4.10    
Cash and due from banks     32,768             32,564          
Reserve for loan and lease losses     (20,983 )           (24,951 )        
Premises and equipment, net     40,618             34,733          
Other assets     226,500             171,499          
Total assets $   2,745,767         $   2,189,858          
                   
Liabilities:                  
Interest-bearing checking deposits $   364,006   $   190     0.07   $   314,095   $   129     0.05    
Money market savings     360,473       857     0.32       286,667       214     0.10    
Regular savings     578,478       392     0.09       539,248       238     0.06    
Time deposits     456,726       2,966     0.87       267,271       2,351     1.18    
Total time and interest-bearing deposits     1,759,683       4,405     0.33       1,407,281       2,932     0.28    
                   
Short-term borrowings     40,902       33     0.11       41,271       25     0.08    
Subordinated notes (1)     33,411       1,349     5.40       –       –     –    
Total borrowings     74,313       1,382     2.49       41,271       25     0.08    
Total interest-bearing liabilities     1,833,996       5,787     0.42       1,448,552       2,957     0.27    
Noninterest-bearing deposits     509,002             427,277          
Accrued expenses and other liabilities     43,312             28,511          
Total liabilities     2,386,310             1,904,340          
                   
Shareholders’ Equity:                  
Common stock     110,271             91,332          
Additional paid-in capital     120,409             61,967          
Retained earnings and other equity     128,777             132,219          
Total shareholders’ equity     359,457             285,518          
Total liabilities and shareholders’ equity $   2,745,767         $   2,189,858          
Net interest income   $   74,006         $   57,669        
                   
Net interest spread       3.90         3.83    
Effect of net interest-free funding sources       0.11         0.07    
Net interest margin       4.01 %     3.90 %  
                           
Ratio of average interest-earning assets to average interest-bearing liabilities   134.51 %         136.41 %        
                   
(1)  The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense.    
                   
Notes: For rate calculation purposes, average loan and lease categories include unearned discount.  
Nonaccrual loans and leases have been included in the average loan and lease balances.  
Loans held for sale have been included in the average loan balances.  
Tax-equivalent amounts for the nine months ended September 30, 2015 and 2014 have been calculated using the Corporation’s federal applicable rate of 35.0%.  
                   

 

 

CONTACT: CONTACT: Mike Keim
UNIVEST CORPORATION OF PENNSYLVANIA			
Chief Financial Officer							
215-721-2511, keimm@univest.net 	

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