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

SOUDERTON, Pa., Oct. 22, 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 September 30, 2014. Univest reported net income of $6.2 million or $0.38 diluted earnings per share for the quarter ended September 30, 2014, a 3% increase from reported net income of $6.0 million or $0.36 diluted earnings per share for the quarter ended September 30, 2013. Net income for the nine months ended September 30, 2014 was $17.0 million or $1.04 diluted earnings per share, a 5% increase in net income compared to $16.3 million or $0.97 diluted earnings per share for the comparable period in the prior year. The year-to-date 2014 results include $739 thousand in acquisition-related costs or $0.03 diluted earnings per share on a tax affected basis.

Loans

Gross loans and leases increased $56.3 million or 4% from December 31, 2013 and $71.5 million or 5% from September 30, 2013. The growth in loans from December 31, 2013 and September 30, 2013 was primarily in municipal loans and leases, 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, consumer demand for loans remains sluggish. During the third quarter of 2014, the Corporation sold its credit card loan portfolio with a principal balance of $8.5 million for a pre-tax gain of $479 thousand. The sale of the credit card loan portfolio was completed due to our lack of scale necessary to justify the increased expense and focus associated with the increasing complexity of the risk management and compliance environment related to credit cards.

Deposits

Total deposits increased $15.6 million or 1% from December 31, 2013, primarily due to increases in non-interest bearing demand deposits and public funds which were partially offset by decreases in savings and time deposits. Total deposits decreased $28.9 million or 2% from September 30, 2013 mainly due to decreases in interest bearing deposit products partially offset by an increase in non-interest bearing deposits.

Net Interest Income and Margin

The net interest margin on a tax-equivalent basis for the third quarter of 2014 was 3.88%, compared to 3.86% for the second quarter of 2014 and 3.83% for the third quarter of 2013. Net interest income of $18.2 million for the third quarter of 2014 was consistent with the third quarter of 2013. Net interest income declined $437 thousand, or less than 1%, to $53.9 million for the nine months ended September 30, 2014, compared to the same period in the prior year. The decline in year-to-date net interest income from the prior year was primarily attributable to a reduction in 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.

Non-Interest Income

Non-interest income for the quarter ended September 30, 2014 was $12.5 million, a decrease of $692 thousand or 5% from the comparable period in the prior year. Non-interest income for the nine months ended September 30, 2014 was $36.6 million, an increase of $907 thousand or 3% from the comparable period in the prior year. Investment advisory commission and fee income increased $1.3 million for the quarter and $3.5 million for the nine months ended September 30, 2014, primarily due to the acquisition of Girard Partners ("Girard") effective January 1, 2014. Insurance commission and fee income increased $572 thousand for the quarter primarily due to the acquisition of Sterner Insurance ("Sterner") on July 1, 2014. Insurance commission and fee income increased $1.4 million for the nine months ended September 30, 2014, primarily due to the acquisition of Sterner, an increase in contingent income during the first quarter of 2014 and the acquisition of the John T. Fretz Insurance Agency on May 1, 2013. Other non-interest income included a gain on the sale of the credit card portfolio of $479 thousand. These favorable increases were offset in the third quarter and partially offset for the nine months ended September 30, 2014 by the following. The net gain on mortgage banking activities decreased $319 thousand for the quarter and $2.6 million for the nine months ended September 30, 2014. In 2014, higher interest rates have led to a continued decline in refinance activity while new home purchase activity remains sluggish. These factors led to a 25% decline in funded first mortgage volume for the third quarter of 2014 and a 63% decline for the nine months ended September 30, 2014, from the comparable periods in 2013. However, funded first mortgage volume during the third quarter of 2014 was up from the first and second quarters of 2014 due to an increase in purchase volume. The net gain on sales of securities decreased $1.4 million for the quarter and $2.4 million for the nine months ended September 30, 2014 from the comparable periods in 2013. Excess proceeds from bank owned life insurance death benefits of $1.1 million were recognized during the third quarter of 2013. In addition, the nine months ended September 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 September 30, 2014 was $22.0 million, an increase of $2.0 million or 10% compared to the third quarter of 2013. Non-interest expense for the nine months ended September 30, 2014 was $64.7 million, an increase of $5.2 million or 9% from the comparable period in the prior year. Salaries and benefit expense increased $1.3 million for the quarter and $3.0 million for the nine months ended September 30, 2014, primarily attributable to the Girard and Sterner acquisitions and lower deferred loan origination costs. Intangible expenses increased by $2.0 million for the nine months ended September 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 $418 thousand for the quarter and $1.4 million for the nine months ended September 30, 2014, mainly due to increased costs related to computer equipment and software, our new leased office location in the Lehigh Valley which opened in December 2013 and the Girard acquisition. Acquisition-related costs for the nine months ended September 30, 2014 totaling $739 thousand were attributable to the pending Valley Green Bank acquisition and the completed acquisitions of Sterner and Girard. These unfavorable variances were partially offset by a decrease in commission expense of $944 thousand for the nine months ended September 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 $18.8 million at September 30, 2014, from $23.2 million at December 31, 2013 and $24.0 million at September 30, 2013. The $4.4 million decrease in non-accrual loans from December 31, 2013 was mainly due to sales, charge-offs, and pay-downs exceeding additions to non-accrual loans. Net loan and lease charge-offs were $2.6 million during the third quarter of 2014, down from $4.0 million for the third quarter of 2013. Non-accrual loans and leases as a percentage of total loans and leases held for investment were 1.18% at September 30, 2014, compared to 1.51% at December 31, 2013 and 1.57% at September 30, 2013.

Accruing troubled debt restructured loans decreased to $5.5 million at September 30, 2014 from $7.9 million at December 31, 2013 and $14.1 million at September 30, 2013. The decrease of $8.6 million from September 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 $233 thousand for the third quarter of 2014, down $3.9 million from the third quarter of 2013. The provision for loan and lease losses was $3.0 million for the nine months ended September 30, 2014, down $6.7 million from the same period in the prior year. The decreases in the loan and lease provision were mainly due to improvements in historical loss factors utilized to calculate the allowance for loan and lease loss requirement, a decline in collateral value for a commercial real estate borrower in the second quarter of 2013 and updated assessments of residential building lots for a commercial real estate developer in the third quarter of 2013.

The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.36% at September 30, 2014, compared to 1.59% at December 31, 2013 and 1.63% at September 30, 2013. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 115.67% at September 30, 2014, compared to 105.42% at December 31, 2013 and 103.59% at September 30, 2013.

Capital

Univest continues to remain well-capitalized at September 30, 2014. Total risk-based capital at September 30, 2014 was 13.19%, well in excess of the regulatory minimum for well-capitalized status of 10%.

Dividend

On August 15, 2014, Univest declared a quarterly cash dividend of $0.20 per share, payable on October 1, 2014. This represented a 4.26% 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 more than $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
September 30, 2014
(Dollars in thousands)
Balance Sheet (Period End) 09/30/14 06/30/14 03/31/14 12/31/13 09/30/13
Assets $ 2,222,196 $ 2,197,252 $ 2,201,194 $ 2,191,559 $ 2,252,996
Investment securities 360,778 358,460 381,724 402,284 462,573
Loans held for sale 2,156 9,811 1,856 2,267 3,489
Loans and leases held for investment, gross 1,597,736 1,586,994 1,560,446 1,541,484 1,526,241
Allowance for loan and lease losses 21,762 24,094 24,567 24,494 24,835
Loans and leases held for investment, net 1,575,974 1,562,900 1,535,879 1,516,990 1,501,406
Total deposits 1,860,143 1,832,234 1,839,760 1,844,498 1,889,046
Noninterest-bearing deposits 436,189 432,399 426,430 411,714 394,983
NOW, money market and savings 1,162,778 1,131,605 1,145,994 1,161,995 1,204,281
Time deposits 261,176 268,230 267,336 270,789 289,782
Borrowings 38,005 45,066 41,486 37,256 46,733
Shareholders' equity 289,814 286,787 283,296 280,506 274,754
Balance Sheet (Average) For the three months ended, For the nine months ended,
09/30/14 06/30/14 03/31/14 12/31/13 09/30/13 09/30/14 09/30/13
Assets $ 2,217,474 $ 2,179,057 $ 2,172,551 $ 2,208,995 $ 2,233,124 $ 2,189,858 $ 2,238,914
Investment securities 360,274 376,970 390,630 447,672 479,442 375,847 490,479
Loans and leases, gross 1,597,965 1,566,293 1,550,346 1,527,330 1,506,850 1,571,709 1,489,818
Deposits 1,860,138 1,819,546 1,823,589 1,858,905 1,875,578 1,834,558 1,825,491
Shareholders' equity 288,429 285,489 282,574 275,983 280,245 285,518 283,412
Asset Quality Data (Period End)
09/30/14 06/30/14 03/31/14 12/31/13 09/30/13
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale $ 18,814 $ 17,742 $ 19,287 $ 23,235 $ 23,974
Accruing loans and leases 90 days or more past due 344 524 581 413 1,954
Accruing troubled debt restructured loans and leases 5,463 6,340 7,036 7,943 14,106
Other real estate owned 955 1,650 1,650 1,650 1,650
Nonperforming assets 25,576 26,256 28,554 33,241 41,684
Allowance for loan and lease losses 21,762 24,094 24,567 24,494 24,835
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale 1.18% 1.12% 1.24% 1.51% 1.57%
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale 1.54% 1.55% 1.72% 2.05% 2.62%
Allowance for loan and lease losses / Loans and leases held for investment 1.36% 1.52% 1.57% 1.59% 1.63%
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment 115.67% 140.00% 127.38% 105.42% 103.59%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment 88.39% 100.08% 91.31% 77.53% 62.03%
For the three months ended, For the nine months ended,
09/30/14 06/30/14 03/31/14 12/31/13 09/30/13 09/30/14 09/30/13
Net loan and lease charge-offs $ 2,565 $ 1,724 $ 1,402 $ 1,955 $ 3,977 $ 5,691 $ 9,525
Net loan and lease charge-offs (annualized)/Average loans and leases 0.64% 0.44% 0.37% 0.51% 1.05% 0.48% 0.85%
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2014
(Dollars in thousands, except per share data)
For the three months ended, For the nine months ended,
For the period: 09/30/14 06/30/14 03/31/14 12/31/13 09/30/13 09/30/14 09/30/13
Interest income $ 19,219 $ 18,725 $ 18,946 $ 19,172 $ 19,457 $ 56,890 $ 58,407
Interest expense 978 981 998 1,080 1,138 2,957 4,037
Net interest income 18,241 17,744 17,948 18,092 18,319 53,933 54,370
Provision for loan and lease losses 233 1,251 1,475 1,614 4,094 2,959 9,614
Net interest income after provision 18,008 16,493 16,473 16,478 14,225 50,974 44,756
Noninterest income:
Trust fee income 1,862 1,931 1,899 2,054 1,736 5,692 5,249
Service charges on deposit accounts 1,073 1,047 1,014 1,118 1,149 3,134 3,333
Investment advisory commission and fee income 3,086 3,009 3,049 1,988 1,740 9,144 5,654
Insurance commission and fee income 2,881 2,434 3,332 2,172 2,309 8,647 7,223
Bank owned life insurance income 346 443 378 496 1,555 1,167 2,472
Net gain on sales of investment securities -- 415 142 439 1,426 557 2,950
Net gain on mortgage banking activities 616 519 349 476 935 1,484 4,047
Net gain on sales of other real estate owned 195 -- -- 176 198 195 450
Loss on termination of interest rate swap -- -- -- -- -- -- (1,866)
Other income 2,451 2,126 1,978 2,197 2,154 6,555 6,156
Total noninterest income 12,510 11,924 12,141 11,116 13,202 36,575 35,668
Noninterest expense:
Salaries and benefits 11,035 10,242 10,671 10,542 9,761 31,948 28,980
Commissions 2,200 1,795 1,590 1,983 2,026 5,585 6,529
Premises and equipment 3,115 3,097 3,088 2,836 2,697 9,300 7,898
Professional fees 744 846 809 1,131 764 2,399 2,340
Acquisition-related costs 180 516 43 53 7 739 34
Intangible expenses 352 650 760 356 275 1,762 (199)
Restructuring charges 8 -- -- -- (5) 8 534
Other expense 4,385 4,644 3,922 4,722 4,463 12,951 13,394
Total noninterest expense 22,019 21,790 20,883 21,623 19,988 64,692 59,510
Income before taxes 8,499 6,627 7,731 5,971 7,439 22,857 20,914
Income taxes 2,264 1,547 2,005 1,049 1,400 5,816 4,647
Net income $ 6,235 $ 5,080 $ 5,726 $ 4,922 $ 6,039 $ 17,041 $ 16,267
Per common share data:
Book value per share $ 17.87 $ 17.65 $ 17.43 $ 17.22 $ 16.87 $ 17.87 $ 16.87
Net income per share:
Basic $ 0.38 $ 0.31 $ 0.35 $ 0.30 $ 0.36 $ 1.05 $ 0.97
Diluted $ 0.38 $ 0.31 $ 0.35 $ 0.30 $ 0.36 $ 1.04 $ 0.97
Dividends declared per share $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.60 $ 0.60
Weighted average shares outstanding 16,225,596 16,243,161 16,256,047 16,283,466 16,657,916 16,241,490 16,713,666
Period end shares outstanding 16,220,249 16,248,495 16,249,152 16,287,812 16,288,597 16,220,249 16,288,597
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2014
For the three months ended, For the nine months ended,
Profitability Ratios (annualized) 09/30/14 06/30/14 03/31/14 12/31/13 09/30/13 09/30/14 09/30/13
Return on average assets 1.12% 0.94% 1.07% 0.88% 1.07% 1.04% 0.97%
Return on average shareholders' equity 8.58% 7.14% 8.22% 7.08% 8.55% 7.98% 7.67%
Net interest margin (FTE) 3.88% 3.86% 3.96% 3.82% 3.83% 3.90% 3.81%
Efficiency ratio (1) 68.39% 70.00% 66.19% 70.43% 59.53% 68.19% 62.70%
Efficiency ratio (1), excluding acquisition-related costs and restructuring charges 67.81% 68.34% 66.06% 70.25% 59.53% 67.40% 62.10%
Capitalization Ratios
Dividends declared to net income 52.01% 63.96% 56.72% 66.17% 55.24% 57.16% 61.65%
Shareholders' equity to assets (Period End) 13.04% 13.05% 12.87% 12.80% 12.20% 13.04% 12.20%
Tangible common equity to tangible assets 9.78% 9.94% 9.74% 10.10% 9.55% 9.78% 9.55%
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio 10.50% 10.72% 10.64% 10.85% 10.63% 10.50% 10.63%
Tier 1 risk-based capital ratio 11.99% 12.00% 12.00% 12.63% 12.47% 11.99% 12.47%
Total risk-based capital ratio 13.19% 13.26% 13.27% 13.90% 13.73% 13.19% 13.73%
(1) Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income.
Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential
For the Three Months Ended September 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 $ 34,701 $ 18 0.21% $ 36,137 $ 25 0.27%
U.S. government obligations 127,505 320 1.00 175,753 484 1.09
Obligations of state and political subdivisions 107,039 1,360 5.04 117,166 1,589 5.38
Other debt and equity securities 125,730 643 2.03 186,523 907 1.93
Total interest-earning deposits and investments 394,975 2,341 2.35 515,579 3,005 2.31
Commercial, financial, and agricultural loans 394,297 4,054 4.08 395,251 4,062 4.08
Real estate—commercial and construction loans 622,249 7,105 4.53 590,967 7,071 4.75
Real estate—residential loans 298,530 2,684 3.57 261,586 2,463 3.74
Loans to individuals 30,616 492 6.38 42,483 587 5.48
Municipal loans and leases 181,170 2,214 4.85 147,505 1,875 5.04
Lease financings 71,103 1,586 8.85 69,058 1,610 9.25
Gross loans and leases 1,597,965 18,135 4.50 1,506,850 17,668 4.65
Total interest-earning assets 1,992,940 20,476 4.08 2,022,429 20,673 4.06
Cash and due from banks 36,600 34,693
Reserve for loan and lease losses (24,450) (25,404)
Premises and equipment, net 35,580 33,157
Other assets 176,804 168,249
Total assets $ 2,217,474 $ 2,233,124
Liabilities:
Interest-bearing checking deposits $ 316,923 $ 44 0.06 $ 323,165 $ 46 0.06
Money market savings 290,194 79 0.11 306,937 73 0.09
Regular savings 537,175 80 0.06 545,134 80 0.06
Time deposits 265,293 768 1.15 294,844 920 1.24
Total time and interest-bearing deposits 1,409,585 971 0.27 1,470,080 1,119 0.30
Short-term borrowings 38,763 7 0.07 44,516 8 0.07
Subordinated notes and capital securities -- -- -- 1,569 11 2.78
Total borrowings 38,763 7 0.07 46,085 19 0.16
Total interest-bearing liabilities 1,448,348 978 0.27 1,516,165 1,138 0.30
Noninterest-bearing deposits 450,553 405,498
Accrued expenses and other liabilities 30,144 31,216
Total liabilities 1,929,045 1,952,879
Shareholders' Equity:
Common stock 91,332 91,332
Additional paid-in capital 65,459 64,866
Retained earnings and other equity 131,638 124,047
Total shareholders' equity 288,429 280,245
Total liabilities and shareholders' equity $ 2,217,474 $ 2,233,124
Net interest income $ 19,498 $ 19,535
Net interest spread 3.81 3.76
Effect of net interest-free funding sources 0.07 0.07
Net interest margin 3.88% 3.83%
Ratio of average interest-earning assets to average interest-bearing liabilities 137.60% 133.39%
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, 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 Nine Months Ended September 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 $ 28,457 $ 49 0.23% $ 51,880 $ 106 0.27%
U.S. government obligations 128,799 967 1.00 176,095 1,449 1.10
Obligations of state and political subdivisions 107,269 4,189 5.22 120,435 4,774 5.30
Other debt and equity securities 139,779 2,058 1.97 193,949 2,746 1.89
Total interest-earning deposits and investments 404,304 7,263 2.40 542,359 9,075 2.24
Commercial, financial, and agricultural loans 396,915 11,925 4.02 412,233 13,093 4.25
Real estate—commercial and construction loans 602,862 20,791 4.61 570,209 20,575 4.82
Real estate—residential loans 288,548 7,766 3.60 257,170 7,354 3.82
Loans to individuals 34,981 1,627 6.22 42,519 1,784 5.61
Municipal loans and leases 177,446 6,447 4.86 139,827 5,334 5.10
Lease financings 70,957 4,807 9.06 67,860 4,738 9.33
Gross loans and leases 1,571,709 53,363 4.54 1,489,818 52,878 4.75
Total interest-earning assets 1,976,013 60,626 4.10 2,032,177 61,953 4.08
Cash and due from banks 32,564 33,092
Reserve for loan and lease losses (24,951) (25,627)
Premises and equipment, net 34,733 32,938
Other assets 171,499 166,334
Total assets $ 2,189,858 $ 2,238,914
Liabilities:
Interest-bearing checking deposits $ 314,095 $ 129 0.05 $ 277,673 $ 119 0.06
Money market savings 286,667 214 0.10 318,406 231 0.10
Regular savings 539,248 238 0.06 538,764 234 0.06
Time deposits 267,271 2,351 1.18 307,134 2,930 1.28
Total time and interest-bearing deposits 1,407,281 2,932 0.28 1,441,977 3,514 0.33
Short-term borrowings 41,271 25 0.08 82,318 40 0.06
Subordinated notes and capital securities -- -- -- 14,319 483 4.51
Total borrowings 41,271 25 0.08 96,637 523 0.72
Total interest-bearing liabilities 1,448,552 2,957 0.27 1,538,614 4,037 0.35
Noninterest-bearing deposits 427,277 383,514
Accrued expenses and other liabilities 28,511 33,374
Total liabilities 1,904,340 1,955,502
Shareholders' Equity:
Common stock 91,332 91,332
Additional paid-in capital 65,366 64,756
Retained earnings and other equity 128,820 127,324
Total shareholders' equity 285,518 283,412
Total liabilities and shareholders' equity $ 2,189,858 $ 2,238,914
Net interest income $ 57,669 $ 57,916
Net interest spread 3.83 3.73
Effect of net interest-free funding sources 0.07 0.08
Net interest margin 3.90% 3.81%
Ratio of average interest-earning assets to average interest-bearing liabilities 136.41% 132.08%
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, 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