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

Univest Corporation (UVSP) logo

SOUDERTON, Pa., July 23, 2014 (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 June 30, 2014. Univest reported net income of $5.1 million or $0.31 diluted earnings per share for the quarter ended June 30, 2014, a 5% increase from reported net income of $4.8 million or $0.29 diluted earnings per share for the quarter ended June 30, 2013. The second quarter of 2014 results include $516 thousand in acquisition-related costs or $0.02 diluted earnings per share on a tax affected basis. Net income for the six months ended June 30, 2014 was $10.8 million or $0.66 diluted earnings per share, a 6% increase in net income compared to $10.2 million or $0.61 diluted earnings per share for the comparable period in the prior year.

Loans

Gross loans and leases increased $45.5 million or 3% from December 31, 2013 ($27.0 million of the increase occurred in the second quarter, an annualized growth rate of 7%) and $87.0 million or 6% from June 30, 2013. The growth in loans from December 31, 2013 and June 30, 2013 was primarily in business loans, commercial real estate loans and residential real estate loans as economic conditions have slowly improved. While we are beginning to see increases in lending activity, household income and spending levels remain sluggish.

Deposits

Total deposits declined $12.3 million or 1% from December 31, 2013, primarily due to a decrease in public funds which was partially offset by an increase in non-interest bearing demand deposits. Total deposits decreased $40.8 million or 2% from June 30, 2013 mainly due to a decrease in money market deposits in trust customer funds being held which were invested in third party funds. In addition, maturities of time deposits were offset by an increase in noninterest-bearing deposits.

Net Interest Income and Margin

Net interest income declined $364 thousand or 2% to $17.7 million for the second quarter of 2014 compared to the second quarter of 2013. Net interest income declined $359 thousand or 1% to $35.7 million for the six months ended June 30, 2014 compared to the same period in the prior year. The decline in net interest income from the prior year was primarily attributable to a reduction in lower yielding investment securities. This decline was partially offset by the redemption of Univest's trust preferred securities and the termination of the related interest rate swap during the second quarter of 2013, maturities of higher yielding time deposits and a decline in the rate paid on time deposits. The net interest margin on a tax-equivalent basis for the second quarter of 2014 was 3.86%, compared to 3.96% for the first quarter of 2014 and 3.78% for the second quarter of 2013.

Non-Interest Income

Non-interest income for the quarter ended June 30, 2014 was $11.9 million, an increase of $933 thousand or 8% from the comparable period in the prior year. Non-interest income for the six months ended June 30, 2014 was $24.1 million, an increase of $1.6 million or 7% from the comparable period in the prior year. Investment advisory commission and fee income increased $991 thousand for the quarter and $2.1 million for the six months ended June 30, 2014, primarily due to the acquisition of Girard Partners ("Girard") effective January 1, 2014. Insurance commission and fee income increased $852 thousand for the six months ended June 30, 2014, primarily due to an increase in contingency revenues during the first quarter of 2014 and the acquisition of the John T. Fretz Insurance Agency on May 1, 2013. These favorable increases were partially offset by a decrease in the net gain on mortgage banking activities of $897 thousand for the quarter and $2.2 million for the six months ended June 30, 2014. In 2014, higher interest rates have reduced refinance activity and purchase activity remains sluggish. This lead to a 72% decline in funded first mortgage volume for the second quarter of 2014 and a 75% decline for the six months ended June 30, 2014, from the comparable periods in 2013. The net gain on sales of securities decreased $924 thousand for the quarter and $967 thousand for the six months ended June 30, 2014 from the comparable periods in 2013.In addition, the three and six months ended June 30, 2013 included a $1.9 million loss on the termination of an interest rate swap which was used as a hedge of trust preferred securities.

Non-Interest Expense

Non-interest expense for the quarter ended June 30, 2014 was $21.8 million, an increase of $2.5 million or 13% compared to the second quarter of 2013. Non-interest expense for the six months ended June 30, 2013 was $42.7 million, an increase of $3.2 million or 8% from the comparable period in the prior year. Salaries and benefit expense increased $883 thousand for the quarter and $1.7 million for the six months ended June 30, 2014, primarily attributable to the Girard acquisition and lower deferred loan origination costs. Intangible expenses increased by $1.3 million for the quarter and $1.9 million for the six months ended June 30, 2014, mainly due to the Girard acquisition and the reduction to the contingent consideration liability related to the Javers acquisition which resulted in a reduction of expense of $959 thousand during the second quarter of 2013. Premises and equipment expenses increased $477 thousand for the quarter and $984 thousand for the six months ended June 30, 2014 mainly due to increased costs related to computer equipment and software, snow removal, a new leased office location in the Lehigh Valley and the Girard acquisition. Acquisition-related costs for the second quarter of 2014 totaling $516 thousand were attributable to the pending Valley Green Bank acquisition and the Sterner Insurance acquisition. These unfavorable variances were partially offset by a decrease in commission expense of $593 thousand for the quarter and $1.1 million for the six months ended June 30, 2014 mainly due to the decline in mortgage banking activity. In addition, non-interest expense during the first quarter of 2013 included restructuring charges of $539 thousand.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $17.7 million at June 30, 2014, from $23.2 million at December 31, 2013 and $25.2 million at June 30, 2013. The $5.5 million decrease in non-accrual loans from December 31, 2013 was mainly due to the sale of a commercial real estate loan for $2.5 million, the payoff of another commercial real estate loan for $1.3 million and the partial charge-off of two related commercial real estate loans. Net loan and lease charge-offs were $1.7 million during the second quarter of 2014, down from $4.0 million for the second quarter of 2013. Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 1.12% at June 30, 2014, compared to 1.51% at December 31, 2013 and 1.68% at June 30, 2013.

Accruing troubled debt restructured loans decreased to $6.3 million at June 30, 2014 from $7.9 million at December 31, 2013 and $13.7 million at June 30, 2013. The decrease of $7.4 million from June 30, 2013 was primarily due to the payoff, in December 2013, of a large shared national commercial real estate credit with an outstanding principal balance of $5.8 million.

The provision for loan and lease losses was $1.3 million for the second quarter of 2014, down $2.2 million from the second quarter of 2013. The provision for loan and lease losses was $2.7 million for the six months ended June 30, 2014, down $2.8 million from the same period in the prior year. The decreases in the loan and lease provision were mainly due to a decline in collateral value in the second quarter of 2013 for a commercial real estate borrower. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.52% at June 30, 2014, compared to 1.59% at December 31, 2013 and 1.65% at June 30, 2013. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 140.00% at June 30, 2014, compared to 105.42% at December 31, 2013 and 98.06% at June 30, 2013.

Capital

Univest continues to remain well-capitalized at June 30, 2014. Total risk-based capital at June 30, 2014 was 13.26%, well in excess of the regulatory minimum for well-capitalized status of 10%.

Dividend

On May 28, 2014, Univest declared a quarterly cash dividend of $0.20 per share, payable on July 1, 2014. This represented a 3.76% 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 $2.2 billion in assets and over $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 40 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
June 30, 2014
(Dollars in thousands)
Balance Sheet (Period End) 06/30/14 03/31/14 12/31/13 09/30/13 06/30/13
Assets $ 2,197,252 $ 2,201,194 $ 2,191,559 $ 2,252,996 $ 2,255,601
Investment securities 358,460 381,724 402,284 462,573 485,460
Loans held for sale 9,811 1,856 2,267 3,489 3,609
Loans and leases held for investment, gross 1,586,994 1,560,446 1,541,484 1,526,241 1,499,993
Allowance for loan and lease losses 24,094 24,567 24,494 24,835 24,718
Loans and leases held for investment, net 1,562,900 1,535,879 1,516,990 1,501,406 1,475,275
Total deposits 1,832,234 1,839,760 1,844,498 1,889,046 1,873,051
Noninterest-bearing deposits 432,399 426,430 411,714 394,983 398,906
NOW, money market and savings 1,131,605 1,145,994 1,161,995 1,204,281 1,175,129
Time deposits 268,230 267,336 270,789 289,782 299,016
Borrowings 41,066 41,486 37,256 46,733 66,007
Shareholders' equity 286,787 283,296 280,506 274,754 279,588
Balance Sheet (Average) For the three months ended, For the six months ended,
06/30/14 03/31/14 12/31/13 09/30/13 06/30/13 06/30/14 06/30/13
Assets $ 2,179,057 $ 2,172,551 $ 2,208,995 $ 2,233,124 $ 2,251,298 $ 2,175,822 $ 2,242,272
Investment securities 376,970 390,630 447,672 479,442 495,154 383,762 496,088
Loans and leases, gross 1,566,293 1,550,346 1,527,330 1,506,850 1,478,309 1,558,364 1,481,160
Deposits 1,819,546 1,823,589 1,858,905 1,875,578 1,812,100 1,821,556 1,801,165
Shareholders' equity 285,489 282,574 275,983 280,245 284,491 284,039 285,021
Asset Quality Data (Period End)
06/30/14 03/31/14 12/31/13 09/30/13 06/30/13
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale $ 17,742 $ 19,287 $ 23,235 $ 23,974 $ 25,207
Accruing loans and leases 90 days or more past due 524 581 413 1,954 521
Accruing troubled debt restructured loans and leases 6,340 7,036 7,943 14,106 13,696
Other real estate owned 1,650 1,650 1,650 1,650 1,650
Nonperforming assets 26,256 28,554 33,241 41,684 41,074
Allowance for loan and lease losses 24,094 24,567 24,494 24,835 24,718
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale 1.12% 1.24% 1.51% 1.57% 1.68%
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale 1.55% 1.72% 2.05% 2.62% 2.63%
Allowance for loan and lease losses / Loans and leases held for investment 1.52% 1.57% 1.59% 1.63% 1.65%
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment 140.00% 127.38% 105.42% 103.59% 98.06%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment 100.08% 91.31% 77.53% 62.03% 62.70%
For the three months ended, For the six months ended,
06/30/14 03/31/14 12/31/13 09/30/13 06/30/13 06/30/14 06/30/13
Net loan and lease charge-offs $ 1,724 $ 1,402 $ 1,955 $ 3,977 $ 3,950 $ 3,126 $ 5,548
Net loan and lease charge-offs (annualized)/Average loans and leases 0.44% 0.37% 0.51% 1.05% 1.07% 0.40% 0.76%
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2014
(Dollars in thousands, except per share data)
For the three months ended, For the six months ended,
For the period: 06/30/14 03/31/14 12/31/13 09/30/13 06/30/13 06/30/14 06/30/13
Interest income $ 18,725 $ 18,946 $ 19,172 $ 19,457 $ 19,461 $ 37,671 $ 38,950
Interest expense 981 998 1,080 1,138 1,353 1,979 2,899
Net interest income 17,744 17,948 18,092 18,319 18,108 35,692 36,051
Provision for loan and lease losses 1,251 1,475 1,614 4,094 3,446 2,726 5,520
Net interest income after provision 16,493 16,473 16,478 14,225 14,662 32,966 30,531
Noninterest income:
Trust fee income 1,931 1,899 2,054 1,736 1,779 3,830 3,513
Service charges on deposit accounts 1,047 1,014 1,118 1,149 1,098 2,061 2,184
Investment advisory commission and fee income 3,009 3,049 1,988 1,740 2,018 6,058 3,914
Insurance commission and fee income 2,434 3,332 2,172 2,309 2,391 5,766 4,914
Bank owned life insurance income 443 378 496 1,555 413 821 917
Net gain on sales of investment securities 415 142 439 1,426 1,339 557 1,524
Net gain on mortgage banking activities 519 349 476 935 1,416 868 3,112
Net gain on sales of other real estate owned -- -- 176 198 252 -- 252
Loss on termination of interest rate swap -- -- -- -- (1,866) -- (1,866)
Other income 2,126 1,978 2,197 2,154 2,151 4,104 4,002
Total noninterest income 11,924 12,141 11,116 13,202 10,991 24,065 22,466
Noninterest expense:
Salaries and benefits 10,242 10,671 10,542 9,761 9,359 20,913 19,219
Commissions 1,795 1,590 1,983 2,026 2,388 3,385 4,503
Premises and equipment 3,097 3,088 2,836 2,697 2,620 6,185 5,201
Professional fees 846 809 1,131 764 809 1,655 1,576
Acquisition-related costs 516 43 53 7 27 559 27
Intangible expenses 650 760 356 275 (683) 1,410 (474)
Restructuring charges -- -- -- (5) -- -- 539
Other expense 4,644 3,922 4,722 4,463 4,766 8,566 8,931
Total noninterest expense 21,790 20,883 21,623 19,988 19,286 42,673 39,522
Income before taxes 6,627 7,731 5,971 7,439 6,367 14,358 13,475
Income taxes 1,547 2,005 1,049 1,400 1,537 3,552 3,247
Net income $ 5,080 $ 5,726 $ 4,922 $ 6,039 $ 4,830 $ 10,806 $ 10,228
Per common share data:
Book value per share $ 17.65 $ 17.43 $ 17.22 $ 16.87 $ 16.76 $ 17.65 $ 16.76
Net income per share:
Basic $ 0.31 $ 0.35 $ 0.30 $ 0.36 $ 0.29 $ 0.67 $ 0.61
Diluted $ 0.31 $ 0.35 $ 0.30 $ 0.36 $ 0.29 $ 0.66 $ 0.61
Dividends declared per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.40 $ 0.40
Weighted average shares outstanding 16,243,161 16,256,047 16,283,466 16,657,916 16,696,362 16,249,568 16,742,004
Period end shares outstanding 16,248,495 16,249,152 16,287,812 16,288,597 16,683,009 16,248,495 16,683,009
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2014
For the three months ended, For the six months ended,
Profitability Ratios (annualized) 06/30/14 03/31/14 12/31/13 09/30/13 06/30/13 06/30/14 06/30/13
Return on average assets 0.94% 1.07% 0.88% 1.07% 0.86% 1.00% 0.92%
Return on average shareholders' equity 7.14% 8.22% 7.08% 8.55% 6.81% 7.67% 7.24%
Net interest margin (FTE) 3.86% 3.96% 3.82% 3.83% 3.78% 3.91% 3.80%
Efficiency ratio (1) 70.00% 66.19% 70.43% 59.53% 63.24% 68.08% 64.43%
Efficiency ratio (1), excluding acquisition-related 68.34% 66.06% 70.25% 59.53% 63.15% 67.19% 63.51%
costs and restructuring charges
Capitalization Ratios
Dividends declared to net income 63.96% 56.72% 66.17% 55.24% 69.05% 60.12% 65.44%
Shareholders' equity to assets (Period End) 13.05% 12.87% 12.80% 12.20% 12.40% 13.05% 12.40%
Tangible common equity to tangible assets 9.94% 9.74% 10.10% 9.55% 9.76% 9.94% 9.76%
Regulatory Capital Ratios (Period End) (2)
Tier 1 leverage ratio 10.72% 10.64% 10.85% 10.63% 10.61% 10.72% 10.61%
Tier 1 risk-based capital ratio 12.00% 12.00% 12.63% 12.47% 12.67% 12.00% 12.67%
Total risk-based capital ratio 13.26% 13.27% 13.90% 13.73% 13.95% 13.26% 13.94%
(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 June 30,
Tax Equivalent Basis 2014 2013
Average Income/ Average Average Income/ Average
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 25,164 $ 17 0.27% $ 71,290 $ 46 0.26%
U.S. Government obligations 127,631 316 0.99 178,110 488 1.10
Obligations of state and political subdivisions 107,021 1,373 5.15 122,503 1,606 5.26
Other debt and equity securities 142,318 695 1.96 194,541 944 1.95
Total interest-earning deposits and investments 402,134 2,401 2.39 566,444 3,084 2.18
Commercial, financial, and agricultural loans 404,252 3,973 3.94 403,490 4,355 4.33
Real estate—commercial and construction loans 594,929 6,798 4.58 574,288 6,846 4.78
Real estate—residential loans 284,931 2,524 3.55 252,443 2,436 3.87
Loans to individuals 35,770 551 6.18 42,295 601 5.70
Municipal loans and leases 175,952 2,112 4.81 137,382 1,743 5.09
Lease financings 70,459 1,589 9.05 68,411 1,571 9.21
Gross loans and leases 1,566,293 17,547 4.49 1,478,309 17,552 4.76
Total interest-earning assets 1,968,427 19,948 4.06 2,044,753 20,636 4.05
Cash and due from banks 31,071 32,282
Reserve for loan and lease losses (25,086) (26,229)
Premises and equipment, net 34,355 32,611
Other assets 170,290 167,881
Total assets $ 2,179,057 $ 2,251,298
Liabilities:
Interest-bearing checking deposits $ 311,660 $ 42 0.05 $ 264,897 $ 37 0.06
Money market savings 280,693 68 0.10 322,808 78 0.10
Regular savings 537,526 79 0.06 537,410 78 0.06
Time deposits 267,610 780 1.17 302,896 962 1.27
Total time and interest-bearing deposits 1,397,489 969 0.28 1,428,011 1,155 0.32
Short-term borrowings 45,429 12 0.11 100,632 15 0.06
Subordinated notes and capital securities -- -- -- 20,619 183 3.56
Total borrowings 45,429 12 0.11 121,251 198 0.65
Total interest-bearing liabilities 1,442,918 981 0.27 1,549,262 1,353 0.35
Noninterest-bearing deposits 422,057 384,089
Accrued expenses and other liabilities 28,593 33,456
Total liabilities 1,893,568 1,966,807
Shareholders' Equity:
Common stock 91,332 91,332
Additional paid-in capital 65,367 64,680
Retained earnings and other equity 128,790 128,479
Total shareholders' equity 285,489 284,491
Total liabilities and shareholders' equity $ 2,179,057 $ 2,251,298
Net interest income $ 18,967 $ 19,283
Net interest spread 3.79 3.70
Effect of net interest-free funding sources 0.07 0.08
Net interest margin 3.86% 3.78%
Ratio of average interest-earning assets to average interest-bearing liabilities 136.42% 131.98%
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 June 30, 2014 and 2013 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 Six Months Ended June 30,
Tax Equivalent Basis 2014 2013
Average Income/ Average Average Income/ Average
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 25,283 $ 31 0.25% $ 59,882 $ 81 0.27%
U.S. Government obligations 129,457 647 1.01 176,269 965 1.10
Obligations of state and political subdivisions 107,386 2,829 5.31 122,097 3,185 5.26
Other debt and equity securities 146,919 1,415 1.94 197,722 1,839 1.88
Total interest-earning deposits and investments 409,045 4,922 2.43 555,970 6,070 2.20
Commercial, financial, and agricultural loans 398,246 7,871 3.99 420,865 9,031 4.33
Real estate—commercial and construction loans 593,007 13,686 4.65 559,657 13,504 4.87
Real estate—residential loans 283,475 5,082 3.62 254,926 4,891 3.87
Loans to individuals 37,200 1,135 6.15 42,537 1,197 5.67
Municipal loans and leases 175,553 4,233 4.86 135,924 3,459 5.13
Lease financings 70,883 3,221 9.16 67,251 3,128 9.38
Gross loans and leases 1,558,364 35,228 4.56 1,481,160 35,210 4.79
Total interest-earning assets 1,967,409 40,150 4.12 2,037,130 41,280 4.09
Cash and due from banks 30,513 32,278
Reserve for loan and lease losses (25,206) (25,740)
Premises and equipment, net 34,303 32,827
Other assets 168,803 165,777
Total assets $ 2,175,822 $ 2,242,272
Liabilities:
Interest-bearing checking deposits $ 312,658 $ 85 0.05 $ 254,550 $ 73 0.06
Money market savings 284,874 135 0.10 324,235 158 0.10
Regular savings 540,301 158 0.06 536,063 154 0.06
Time deposits 268,277 1,583 1.19 313,381 2,010 1.29
Total time and interest-bearing deposits 1,406,110 1,961 0.28 1,428,229 2,395 0.34
Short-term borrowings 42,546 18 0.09 101,533 32 0.06
Subordinated notes and capital securities -- -- -- 20,799 472 4.58
Total borrowings 42,546 18 0.09 122,332 504 0.83
Total interest-bearing liabilities 1,448,656 1,979 0.28 1,550,561 2,899 0.38
Noninterest-bearing deposits 415,446 372,936
Accrued expenses and other liabilities 27,681 33,754
Total liabilities 1,891,783 1,957,251
Shareholders' Equity:
Common stock 91,332 91,332
Additional paid-in capital 65,319 64,700
Retained earnings and other equity 127,388 128,989
Total shareholders' equity 284,039 285,021
Total liabilities and shareholders' equity $ 2,175,822 $ 2,242,272
Net interest income $ 38,171 $ 38,381
Net interest spread 3.84 3.71
Effect of net interest-free funding sources 0.07 0.09
Net interest margin 3.91% 3.80%
Ratio of average interest-earning assets to average interest-bearing liabilities 135.81% 131.38%
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 six months ended June 30, 2014 and 2013 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