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

Univest Corporation (UVSP) logo

SOUDERTON, Pa., Oct. 23, 2013 (GLOBE NEWSWIRE) -- Univest Corporation of Pennsylvania ("Univest") (Nasdaq:UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter ended September 30, 2013. Univest reported net income of $6.0 million or $0.36 diluted earnings per share for the quarter ended September 30, 2013, a 5% increase over the reported net income of $5.8 million or $0.34 diluted earnings per share for the quarter ended September 30, 2012. Net income for the nine months ended September 30, 2013 was $16.3 million or $0.97 diluted earnings per share, a 3% increase in net income compared to $15.8 million or $0.94 diluted earnings per share for the comparable period in the prior year.

Loans

Gross loans and leases increased $44.4 million or 3% from December 31, 2012 and $56.7 million or 4% from September 30, 2012. The growth in loans from the prior year-end and comparable quarter in 2012 occurred in commercial and residential real estate loans and equipment financing. While the longer-term economic outlook remains positive, short-term uncertainty over the direction of fiscal and monetary policy is restraining overall credit demand and the utilization of available credit lines by both businesses and consumers.

Deposits

Total deposits were up $23.7 million from December 31, 2012, mainly due to a product change for existing business and municipal customers which resulted in approximately $68.1 million of customer repurchase agreements, classified as borrowings, being transferred to interest-bearing demand deposits. This transfer was partially offset by a decrease in time deposits of $41.7 million. Total deposits grew $111.1 million from September 30, 2012, primarily due to an increase in demand deposits.

Net Interest Income and Margin

Net interest income increased $300 thousand or 2% to $18.3 million in the third quarter of 2013 compared to the third quarter of 2012. The net interest margin on a tax-equivalent basis for the third quarter of 2013 was 3.84%, consistent with the second quarter of 2013 and the third quarter of 2012. While the tax-equivalent yield on average interest-earning assets declined 16 basis points for the third quarter of 2013 compared to the same period in the prior year, the rate on interest-bearing liabilities was also down 20 basis points compared to the same period. The decline in rate on interest-bearing liabilities was attributable to Univest's decision to redeem its trust preferred securities and terminate the related interest rate swap and an overall decline in rates paid on time and interest bearing deposits.

Net interest income of $54.4 million for the nine months ended September 30, 2013 was consistent with the same period in 2012. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2013 was 3.84% compared to 3.92% for the nine months ended September 30, 2012. The decline in the year-to-date net interest margin from the comparable period in the prior year was primarily due to the re-investment of maturing and called investment securities into lower yielding investments. In addition, lower rates on commercial and residential real estate loans due to re-pricing and the competitive environment contributed to the decline. Favorable re-pricing of savings accounts, customer repurchase agreements and certificates of deposit – along with maturities of higher yielding certificates of deposit – partially offset the decline in the year-to-date net interest margin.

Non-Interest Income

Non-interest income for the quarter ended September 30, 2013 was $13.2 million, an increase of $2.3 million or 22% from the comparable period in the prior year. Non-interest income for the nine months ended September 30, 2013 was $35.7 million, an increase of $5.8 million or 19% from the comparable period in the prior year. Insurance commission and fee income increased $384 thousand for the quarter and $1.4 million for the nine months ended September 30, 2013, primarily a result of the acquisitions of the John T. Fretz Insurance Agency, Inc. on May 1, 2013 and Javers Group on May 31, 2012. Investment advisory commission and fee income increased $186 thousand for the quarter and $1.1 million for the nine months ended September 30, 2013 as assets under supervision increased 16% over September 2012. The net gain on sales of securities increased $1.4 million for the quarter and $2.7 million for the nine months ended September, 30 2013. The net gain on sales of other real estate owned was $198 thousand for the quarter and $450 thousand for the nine months ended September 30, 2013. This compares favorably to a net loss on sales and write-downs of $621 thousand and $1.7 million, respectively, for the comparable periods in the prior year. Excess proceeds from bank owned life insurance death benefits of $1.1 million were recognized during the third quarter of 2013. On a year-to-date basis, $1.1 million in excess proceeds from bank owned life insurance death benefits were recognized in 2013 compared to $989 thousand for the same period in the prior year.

These favorable increases were partially offset by a $1.9 million loss on the termination of an interest rate swap during the second quarter of 2013, which was used as a hedge of trust preferred securities. In addition, the net gain on mortgage banking activities decreased $1.2 million for the quarter and $470 thousand for the nine months ended September 30, 2013. The increase in interest rates during the second quarter of 2013 contributed to a significant decline in refinance activity, reduced demand for new home purchases and lowered gain on sale margins. Mortgage banking originations declined 39% in the third quarter of 2013 from the second quarter of 2013 and the third quarter of 2012.

Non-Interest Expense

Non-interest expense for the third quarter of 2013 was $20.0 million, an increase of $930 thousand or 5% compared to the third quarter of 2012. Salaries and benefits expense increased $817 thousand primarily attributable to the Fretz acquisition and performance-based salary and incentive increases. Commission expense increased $142 thousand mainly due to increased production activity and revenues generated in our equipment finance, investment and insurance businesses partially offset by a decline in mortgage banking commissions.

Non-interest expense for the nine months ended September 30, 2013 was $59.5 million, an increase of $3.0 million or 5% from the comparable period in the prior year. Salaries and benefits expense increased $795 thousand primarily attributable to the Fretz and Javers acquisitions and performance-based salary and incentive increases. Commission expense increased $1.6 million mainly due to increased production activity and revenues generated in our equipment finance, investment and insurance businesses. Additionally, non-interest expense increased due to restructuring charges of $539 thousand recognized during the first quarter of 2013.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $24.0 million at September 30, 2013, from $32.1 million at December 31, 2012 and $30.5 million at September 30, 2012. The decrease in non-accrual loans from December 31, 2012 was mainly due to charge-offs, foreclosures and pay-downs exceeding additions to non-accrual loans. Net loan and lease charge-offs were $4.0 million during the third quarter of 2013, down from $5.6 million for the third quarter of 2012.

Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 1.57% at September 30, 2013, compared to 2.17% at December 31, 2012 and 2.07% at September 30, 2012.

The provision for loan and lease losses was $4.1 million for the third quarter of 2013, compared to $2.2 million for the quarter ended September 30, 2012. The provision for loan and lease losses was $9.6 million for the nine months ended September 30, 2013, compared to $7.7 million for the same period in the prior year. The increase in the loan and lease provision for both the third quarter of 2013 and nine months ended September 30, 2013 was primarily attributable to the intra-dependency of collateral and updated assessments of residential building lots securing loans to a common borrower. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.63% at September 30, 2013, compared to 1.67% at December 31, 2012 and 1.84% at September 30, 2012. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 103.59% at September 30, 2013, compared to 77.01% at December 31, 2012 and 97.03% at September 30, 2012.

Capital

Univest continues to remain well-capitalized at September 30, 2013. Total risk-based capital at September 30, 2013 was 13.73%, well in excess of the regulatory minimum for well capitalized status of 10%.

Share Repurchase Plans

During the quarter, Univest repurchased 395,000 shares of common stock at a cost of $7.4 million under its 2007 Board approved share repurchase program. At September 30, 2013, this share repurchase plan was substantially completed. Total shares outstanding at September 30, 2013 were 16,288,597.

On October 23, 2013, Univest's Board of Directors approved a new share repurchase program for the repurchase of up to 800,000 shares, or approximately 5% of the shares outstanding.

Dividend

On August 16, 2013, Univest declared a quarterly cash dividend of $0.20 per share, payable on October 1, 2013. 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

Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania (UVSP) and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester and Montgomery counties and the Lehigh Valley. For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visit 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 banking 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, 2013
(Dollars in thousands)
Balance Sheet (Period End) 09/30/13 06/30/13 03/31/13 12/31/12 09/30/12
Assets $ 2,252,996 $ 2,255,601 $ 2,263,036 $ 2,304,841 $ 2,232,081
Investment securities 462,573 485,460 508,751 499,579 515,256
Loans held for sale 3,489 3,609 3,606 4,530 6,146
Loans and leases held for investment, gross 1,526,241 1,499,993 1,487,375 1,481,862 1,469,511
Allowance for loan and lease losses 24,835 24,718 25,222 24,746 27,096
Loans and leases held for investment, net 1,501,406 1,475,275 1,462,153 1,457,116 1,442,415
Total deposits 1,889,046 1,873,051 1,814,610 1,865,333 1,777,930
Noninterest-bearing deposits 394,983 398,906 380,447 368,948 334,856
NOW, money market and savings 1,204,281 1,175,129 1,127,643 1,164,874 1,101,147
Time deposits 289,782 299,016 306,520 331,511 341,927
Borrowings 46,733 66,007 124,895 117,276 132,920
Shareholders' equity 274,754 279,588 284,784 284,277 281,589
Balance Sheet (Average) For the three months ended, For the nine months ended,
09/30/13 06/30/13 03/31/13 12/31/12 09/30/12 09/30/13 09/30/12
Assets $ 2,233,124 $ 2,251,298 $ 2,233,147 $ 2,264,863 $ 2,214,283 $ 2,238,914 $ 2,189,591
Investment securities 479,442 495,154 497,032 499,017 474,523 490,479 460,889
Loans and leases, gross 1,506,850 1,478,309 1,484,043 1,478,156 1,465,897 1,489,818 1,461,182
Deposits 1,875,578 1,812,100 1,790,108 1,823,707 1,771,454 1,825,491 1,740,847
Shareholders' equity 280,245 284,491 285,558 286,980 280,172 283,412 277,630
Asset Quality Data (Period End)
09/30/13 06/30/13 03/31/13 12/31/12 09/30/12
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale $ 23,974 $ 25,207 $ 28,887 $ 32,132 $ 30,525
Accruing loans and leases 90 days or more past due 1,954 521 366 441 690
Accruing troubled debt restructured loans and leases 14,106 13,696 13,037 13,457 13,383
Other real estate owned 1,650 1,650 3,616 1,607 3,301
Nonperforming assets 41,684 41,074 45,906 47,637 47,899
Allowance for loan and lease losses 24,835 24,718 25,222 24,746 27,096
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale 1.57% 1.68% 1.94% 2.17% 2.07%
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale 2.62% 2.63% 2.84% 3.11% 3.03%
Allowance for loan and lease losses / Loans and leases held for investment 1.63% 1.65% 1.70% 1.67% 1.84%
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment 103.59% 98.06% 87.31% 77.01% 97.03%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment 62.03% 62.70% 59.64% 53.76% 64.52%
For the three months ended, For the nine months ended,
09/30/13 06/30/13 03/31/13 12/31/12 09/30/12 09/30/13 09/30/12
Net loan and lease charge-offs $ 3,977 $ 3,950 $ 1,598 $ 4,732 $ 5,616 $ 9,525 $ 10,427
Net loan and lease charge-offs (annualized)/Average loans and leases 1.05% 1.07% 0.44% 1.27% 1.52% 0.85% 0.95%
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2013
(Dollars in thousands, except per share data)
For the three months ended, For the nine months ended,
For the period: 09/30/13 06/30/13 03/31/13 12/31/12 09/30/12 09/30/13 09/30/12
Interest income $ 19,457 $ 19,461 $ 19,489 $ 19,988 $ 19,977 $ 58,407 $ 60,666
Interest expense 1,138 1,353 1,546 1,838 1,958 4,037 6,336
Net interest income 18,319 18,108 17,943 18,150 18,019 54,370 54,330
Provision for loan and lease losses 4,094 3,446 2,074 2,382 2,210 9,614 7,653
Net interest income after provision 14,225 14,662 15,869 15,768 15,809 44,756 46,677
Noninterest income:
Trust fee income 1,736 1,779 1,734 1,902 1,625 5,249 4,875
Service charges on deposit accounts 1,149 1,098 1,086 1,128 1,122 3,333 3,301
Investment advisory commission and fee income 1,536 1,811 1,701 1,407 1,350 5,048 3,956
Insurance commission and fee income 2,513 2,598 2,718 2,078 2,129 7,829 6,453
Bank owned life insurance income 1,555 413 504 365 463 2,472 2,305
Net gain on sales of investment securities 1,426 1,339 185 14 9 2,950 291
Net gain on mortgage banking activities 935 1,416 1,696 1,571 2,171 4,047 4,517
Net gain (loss) on sales and write downs of other real estate owned 198 252 -- (181) (621) 450 (1,723)
Loss on termination of interest rate swap -- (1,866) -- -- -- (1,866) --
Other income 2,154 2,151 1,851 2,094 2,613 6,156 5,907
Total noninterest income 13,202 10,991 11,475 10,378 10,861 35,668 29,882
Noninterest expense:
Salaries and benefits 9,761 9,359 9,860 9,121 8,944 28,980 28,185
Commissions 2,026 2,388 2,115 2,042 1,884 6,529 4,939
Premises and equipment 2,697 2,620 2,581 2,664 2,597 7,898 7,538
Deposit insurance premiums 381 400 392 410 406 1,173 1,279
Restructuring charges (5) -- 539 -- -- 534 --
Other expense 5,128 4,519 4,749 5,475 5,227 14,396 14,629
Total noninterest expense 19,988 19,286 20,236 19,712 19,058 59,510 56,570
Income before taxes 7,439 6,367 7,108 6,434 7,612 20,914 19,989
Income taxes 1,400 1,537 1,710 1,358 1,842 4,647 4,193
Net income $ 6,039 $ 4,830 $ 5,398 $ 5,076 $ 5,770 $ 16,267 $ 15,796
Per common share data:
Book value per share $ 16.87 $ 16.76 $ 16.99 $ 16.95 $ 16.80 $ 16.87 $ 16.80
Net income per share:
Basic $ 0.36 $ 0.29 $ 0.32 $ 0.30 $ 0.34 $ 0.97 $ 0.94
Diluted $ 0.36 $ 0.29 $ 0.32 $ 0.30 $ 0.34 $ 0.97 $ 0.94
Dividends declared per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.60 $ 0.60
Weighted average shares outstanding 16,657,916 16,696,362 16,788,152 16,765,199 16,760,080 16,713,666 16,759,836
Period end shares outstanding 16,288,597 16,683,009 16,762,695 16,770,232 16,765,126 16,288,597 16,765,126
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2013
For the three months ended, For the nine months ended,
Profitability Ratios (annualized) 09/30/13 06/30/13 03/31/13 12/31/12 09/30/12 09/30/13 09/30/12
Return on average assets 1.07% 0.86% 0.98% 0.89% 1.04% 0.97% 0.96%
Return on average shareholders' equity 8.55% 6.81% 7.67% 7.04% 8.19% 7.67% 7.60%
Net interest margin (FTE) 3.84% 3.84% 3.83% 3.80% 3.84% 3.84% 3.92%
Efficiency ratio (1) 59.53% 63.24% 65.61% 65.93% 62.84% 62.70% 63.48%
Capitalization Ratios
Dividends declared to net income 55.24% 69.05% 62.21% 66.06% 58.09% 61.65% 63.67%
Shareholders' equity to assets (Period End) 12.20% 12.40% 12.58% 12.33% 12.62% 12.20% 12.62%
Tangible common equity to tangible assets 9.55% 9.76% 10.08% 9.88% 10.12% 9.55% 10.12%
Regulatory Capital Ratios (Period End) (2)
Tier 1 leverage ratio 10.63% 10.61% 11.71% 11.47% 11.48% 10.63% 11.48%
Tier 1 risk-based capital ratio 12.47% 12.67% 14.10% 14.35% 14.07% 12.47% 14.07%
Total risk-based capital ratio 13.73% 13.95% 15.37% 15.62% 15.34% 13.73% 15.34%
(1) Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income.
(2) In accordance with regulatory guidance, the trust preferred securities were removed from Tier 1 Capital at June 30, 2013.
Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential
For the Three Months Ended September 30,
Tax Equivalent Basis 2013 2012
Average Income/ Average Average Income/ Average
Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 30,842 $ 25 0.32% $ 52,214 $ 45 0.34%
U.S. Government obligations 175,753 484 1.09 156,885 508 1.29
Obligations of state and political subdivisions 117,166 1,589 5.38 121,612 1,696 5.55
Other debt and equity securities 186,523 907 1.93 196,026 846 1.72
Total interest-earning deposits and investments 510,284 3,005 2.34 526,737 3,095 2.34
Commercial, financial, and agricultural loans 395,251 4,062 4.08 452,531 4,895 4.30
Real estate—commercial and construction loans 590,967 7,071 4.75 525,143 6,804 5.15
Real estate—residential loans 261,586 2,463 3.74 256,297 2,616 4.06
Loans to individuals 42,483 587 5.48 42,991 602 5.57
Municipal loans and leases 147,505 1,875 5.04 129,651 1,748 5.36
Lease financings 69,058 1,610 9.25 59,284 1,415 9.50
Gross loans and leases 1,506,850 17,668 4.65 1,465,897 18,080 4.91
Total interest-earning assets 2,017,134 20,673 4.07 1,992,634 21,175 4.23
Cash and due from banks 39,988 50,875
Reserve for loan and lease losses (25,404) (31,365)
Premises and equipment, net 33,157 34,002
Other assets 168,249 168,137
Total assets $ 2,233,124 $ 2,214,283
Liabilities:
Interest-bearing checking deposits $ 323,165 $ 46 0.06 $ 230,462 $ 40 0.07
Money market savings 306,937 73 0.09 331,425 121 0.15
Regular savings 545,134 80 0.06 514,205 187 0.14
Time deposits 294,844 920 1.24 348,675 1,276 1.46
Total time and interest-bearing deposits 1,470,080 1,119 0.30 1,424,767 1,624 0.45
Short-term borrowings 44,516 8 0.07 104,110 33 0.13
Subordinated notes and capital securities 1,569 11 2.78 21,732 301 5.51
Total borrowings 46,085 19 0.16 125,842 334 1.06
Total interest-bearing liabilities 1,516,165 1,138 0.30 1,550,609 1,958 0.50
Demand deposits, non-interest bearing 405,498 346,687
Accrued expenses and other liabilities 31,216 36,815
Total liabilities 1,952,879 1,934,111
Shareholders' Equity:
Common stock 91,332 91,332
Additional paid-in capital 64,866 61,327
Retained earnings and other equity 124,047 127,513
Total shareholders' equity 280,245 280,172
Total liabilities and shareholders' equity $ 2,233,124 $ 2,214,283
Net interest income $ 19,535 $ 19,217
Net interest spread 3.77 3.73
Effect of net interest-free funding sources 0.07 0.11
Net interest margin 3.84% 3.84%
Ratio of average interest-earning assets to average interest-bearing liabilities 133.04% 128.51%
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, 2013 and 2012 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 2013 2012
Average Income/ Average Average Income/ Average
Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 37,730 $ 106 0.38% $ 55,358 $ 121 0.29%
U.S. Government obligations 176,095 1,449 1.10 148,422 1,519 1.37
Obligations of state and political subdivisions 120,435 4,774 5.30 119,634 5,092 5.69
Other debt and equity securities 193,949 2,746 1.89 192,833 3,069 2.13
Total interest-earning deposits and investments 528,209 9,075 2.30 516,247 9,801 2.54
Commercial, financial, and agricultural loans 412,233 13,093 4.25 445,301 14,423 4.33
Real estate—commercial and construction loans 570,209 20,575 4.82 529,778 20,741 5.23
Real estate—residential loans 257,170 7,354 3.82 251,035 7,818 4.16
Loans to individuals 42,519 1,784 5.61 43,803 1,856 5.66
Municipal loans and leases 139,827 5,334 5.10 133,557 5,450 5.45
Lease financings 67,860 4,738 9.33 57,708 4,244 9.82
Gross loans and leases 1,489,818 52,878 4.75 1,461,182 54,532 4.99
Total interest-earning assets 2,018,027 61,953 4.10 1,977,429 64,333 4.35
Cash and due from banks 47,242 41,152
Reserve for loan and lease losses (25,627) (31,706)
Premises and equipment, net 32,938 34,231
Other assets 166,334 168,485
Total assets $ 2,238,914 $ 2,189,591
Liabilities:
Interest-bearing checking deposits $ 277,673 $ 119 0.06 $ 227,775 $ 138 0.08
Money market savings 318,406 231 0.10 317,390 391 0.16
Regular savings 538,764 234 0.06 505,451 634 0.17
Time deposits 307,134 2,930 1.28 371,056 3,968 1.43
Total time and interest-bearing deposits 1,441,977 3,514 0.33 1,421,672 5,131 0.48
Short-term borrowings 82,318 40 0.06 110,177 295 0.36
Long-term debt -- -- -- 146 4 3.66
Subordinated notes and capital securities 14,319 483 4.51 22,108 906 5.47
Total borrowings 96,637 523 0.72 132,431 1,205 1.22
Total interest-bearing liabilities 1,538,614 4,037 0.35 1,554,103 6,336 0.54
Demand deposits, non-interest bearing 383,514 319,176
Accrued expenses and other liabilities 33,374 38,682
Total liabilities 1,955,502 1,911,961
Shareholders' Equity:
Common stock 91,332 91,332
Additional paid-in capital 64,756 61,352
Retained earnings and other equity 127,324 124,946
Total shareholders' equity 283,412 277,630
Total liabilities and shareholders' equity $ 2,238,914 $ 2,189,591
Net interest income $ 57,916 $ 57,997
Net interest spread 3.75 3.81
Effect of net interest-free funding sources 0.09 0.11%
Net interest margin 3.84% 3.92
Ratio of average interest-earning assets to average interest-bearing liabilities 131.16% 127.24%
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, 2013 and 2012 have been calculated using the Corporation's federal applicable rate of 35.0%.

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

Source:Univest Corporation of Pennsylvania