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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
AverageIncome/Average AverageIncome/Average
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate
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
AverageIncome/Average AverageIncome/Average
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate
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: Mike Keim UNIVEST CORPORATION OF PENNSYLVANIA Chief Financial Officer 215-721-2511, keimm@univest.net

Source:Univest Corporation of Pennsylvania