×

Univest Corporation of Pennsylvania - Univest Bank and Trust Co. - Reports Fourth Quarter and Year End Earnings

SOUDERTON, Pa., Jan. 27, 2016 (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 and year ended December 31, 2015. Univest reported net income of $7.2 million or $0.37 diluted earnings per share for the quarter ended December 31, 2015, a 38% increase from reported net income of $5.2 million or $0.32 diluted earnings per share for the quarter ended December 31, 2014. Net income for the year ended December 31, 2015 was $27.3 million or $1.39 diluted earnings per share, a 23% increase in net income compared to $22.2 million or $1.37 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 year ended December 31, 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 fourth quarter and year-to-date results also include $540 thousand of acquisition-related costs associated with the pending acquisition of Fox Chase Bancorp, or $0.03 diluted earnings per share on a tax affected basis. Lastly, the results for the year ended December 31, 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 year ended December 31, 2015, would have been $30.1 million or $1.54 diluted earnings per share.

Loans

Gross loans and leases increased $552.4 million from December 31, 2014, including $380.9 million of loans acquired from Valley Green Bank. Organic loan growth was 11% from December 31, 2014. The growth in loans was primarily in commercial real estate loans and residential real estate loans. Gross loans and leases increased $81.2 million from September 30, 2015 mainly due to growth in commercial business loans, commercial real estate loans and residential real estate loans. Organic loan growth was 4% (15% annualized) from September 30, 2015. The growth in loans during the year resulted from new and existing customer relationships as economic conditions continue to improve while interest rates remain at historical lows, lending team additions and market disruption created by other bank acquisitions.

Deposits

Total deposits increased $533.0 million from December 31, 2014, primarily due to $385.9 million of deposits acquired from Valley Green Bank and an increase in public funds.

Borrowings

Borrowings at December 31, 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 $5.4 million to $23.3 million for the fourth quarter of 2015 from the same period in 2014. Net interest income increased $21.5 million for the year ended December 31, 2015 from the prior year. The net interest margin on a tax-equivalent basis for the fourth quarter of 2015 was 3.80%, compared to 3.89% for the third quarter of 2015 and 3.78% for the fourth quarter of 2014. The net interest margin in the fourth quarter was impacted by excess cash (3 basis points) as the Bank grew deposits in advance of anticipated loan growth. For the year, the net interest margin on a tax-equivalent basis was 3.96% compared to 3.87% in 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 four basis points for the fourth quarter of 2015 and nine basis points for the year ended December 31, 2015). The subordinated debt issuance increased funding costs by 14 basis points in the fourth quarter of 2015 and 10 basis points for the year ended December 31, 2015 from the comparable periods in the prior year.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2015 was $13.3 million, an increase of $1.2 million or 10% from the fourth quarter of 2014. Non-interest income for the year ended December 31, 2015 was $52.9 million, an increase of $4.3 million or 9% from the prior year. Insurance commission and fee income increased $2.3 million for the year ended December 31, 2015, primarily due to the acquisition of Sterner Insurance on July 1, 2014. The net gain on mortgage banking activities increased $392 thousand for the quarter and $2.7 million for the year ended December 31, 2015, mainly due to an increase in purchase volume. Funded first mortgage volume for the quarter increased $4.8 million or 11%, and $72.5 million or 55% for the year ended December 31, 2015, compared to the same periods in 2014. In addition, the net gain on sales of investment securities increased $619 thousand for the quarter and $630 thousand for the year ended December 31, 2015. The increase in net gains on sales of investment securities is attributable to the Corporation’s disciplined approach to evaluating market conditions for potential sales and timing of reinvestment. These favorable increases were partially offset by a decline in investment advisory commission and fee income of $1.1 million for the year ended December 31, 2015, primarily 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 December 31, 2015 was $26.0 million, an increase of $3.5 million or 15%, compared to the fourth quarter of 2014. Non-interest expense for the year ended December 31, 2015 was $105.5 million, an increase of $18.3 million or 21% from 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 year ended December 31, 2015 and $540 thousand in acquisition-related charges associated with the pending acquisition of Fox Chase Bancorp. Salaries and benefit expense increased $2.5 million for the quarter and $7.8 million for the year ended December 31, 2015, primarily attributable to the Valley Green Bank acquisition, additional staff hired to support revenue generation, increased pension plan expense and bonus accruals. The Sterner Insurance acquisition also impacted year-to-date salaries and benefits expense. This increase was partially offset by higher deferred loan origination costs. Premises and equipment expenses increased $529 thousand for the quarter and $2.9 million for the year ended December 31, 2015, mainly due to the Valley Green Bank acquisition and increased investments in computer equipment and software.

In addition, non-interest expense for the year ended December 31, 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 $14.2 million at December 31, 2015 compared to $20.8 million at September 30, 2015 and $17.3 million at December 31, 2014. During the fourth quarter of 2015, two non-accrual construction loans in loans held for sale were sold at their carrying amounts for $4.0 million in accordance with the agreement entered into during the second quarter of 2015. Net loan and lease charge-offs were $1.9 million during the fourth quarter of 2015 compared to $1.7 million for the fourth quarter of 2014. Net loan and lease charge-offs were $6.8 million for the year ended December 31, 2015 compared to $7.4 million in the prior year. Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 0.65% at December 31, 2015 compared to 0.99% at September 30, 2015 and 1.07% at December 31, 2014. The provision for loan and lease losses was $917 thousand for the fourth quarter of 2015, compared to $648 thousand for the fourth quarter of 2014. The provision for loan and leases losses was $3.8 million for the year ended December 31, 2015, compared to $3.6 million in the prior year.

The allowance for loan and lease losses as a percentage of loans and leases held for investment was 0.81% at December 31, 2015, compared to 0.89% at September 30, 2015 and 1.27% at December 31, 2014. At December 31, 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 0.94%. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 124.29% at December 31, 2015, compared to 110.58% at September 30, 2015 and 119.18% at December 31, 2014.

Capital

Univest continues to remain well-capitalized at December 31, 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 December 31, 2015 under Basel III was 13.32%, well in excess of the regulatory minimum for well-capitalized status of 10%.

Dividend

On November 25, 2015, Univest declared a quarterly cash dividend of $0.20 per share, payable on January 4, 2016. This represented a 3.91% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.

Conference Call

Univest will host a conference call to discuss fourth quarter and full year 2015 results on Thursday, January 28, 2016 at 9:00 am EST. The general public can access the call by dialing 1-888-317-6016. A replay of the conference call will be available through February 28, 2016 by dialing 1-877-344-7529; using Conference ID: 10079280. Participants may preregister at http://dpregister.com/10079280.

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
December 31, 2015
(Dollars in thousands)
Balance Sheet (Period End) 12/31/15 09/30/15 06/30/15 03/31/15 12/31/14
Assets $2,879,451 $2,851,568 $2,780,578 $2,757,495 $2,235,321
Investment securities 370,760 374,558 374,711 380,484 368,630
Loans held for sale 4,680 9,151 8,831 5,479 3,302
Loans and leases held for investment, gross 2,179,013 2,097,807 2,107,857 2,043,840 1,626,625
Allowance for loan and lease losses 17,628 18,620 19,602 20,934 20,662
Loans and leases held for investment, net 2,161,385 2,079,187 2,088,255 2,022,906 1,605,963
Total deposits 2,394,360 2,372,865 2,263,025 2,254,834 1,861,341
Noninterest-bearing deposits 541,460 519,767 519,026 509,183 449,339
NOW, money market and savings 1,398,494 1,361,827 1,288,318 1,293,165 1,159,409
Time deposits 454,406 491,271 455,681 452,486 252,593
Borrowings 73,588 70,531 110,480 91,423 41,974
Shareholders' equity 361,574 359,109 356,186 360,394 284,554
Balance Sheet (Average) For the three months ended, For the twelve months ended,
12/31/15 09/30/15 06/30/15 03/31/15 12/31/14 12/31/15 12/31/14
Assets $2,866,848 $2,804,578 $2,739,968 $2,691,513 $2,239,015 $2,776,283 $2,202,247
Investment securities 370,163 368,837 375,887 381,008 363,567 373,930 372,752
Loans and leases, gross 2,132,922 2,098,007 2,067,120 2,023,835 1,607,918 2,080,817 1,580,835
Deposits 2,393,655 2,325,049 2,242,217 2,237,830 1,875,938 2,300,184 1,844,988
Shareholders' equity 360,521 357,150 359,154 362,125 291,547 359,725 287,038
Asset Quality Data (Period End)
12/31/15 09/30/15 06/30/15 03/31/15 12/31/14
Nonaccrual loans and leases, including nonaccrual troubled debt restructured
loans and leases and nonaccrual loans held for sale $14,183 $20,838 $17,697 $18,604 $17,337
Accruing loans and leases 90 days or more past due 379 428 287 1,063 451
Accruing troubled debt restructured loans and leases 5,245 4,789 6,099 5,341 5,469
Other real estate owned 1,276 955 955 955 955
Nonperforming assets 21,083 27,010 25,038 25,963 24,212
Allowance for loan and lease losses 17,628 18,620 19,602 20,934 20,662
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual 0.65% 0.99% 0.84% 0.91% 1.07%
loans held for sale
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual 0.91% 1.24% 1.14% 1.22% 1.43%
loans held for sale
Allowance for loan and lease losses / Loans and leases held for investment 0.81% 0.89% 0.93% 1.02% 1.27%
Allowance for loan and lease losses / Loans and leases held for investment 0.94% 1.06% 1.12% 1.26% 1.27%
(excluding acquired loans at period-end)
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment 124.29% 110.58% 143.11% 112.52% 119.18%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment 89.00% 84.43% 97.60% 83.71% 88.84%
Acquired credit impaired loans $1,253 $1,379 $1,876 $1,631 $-
For the three months ended, For the twelve months ended,
12/31/15 09/30/15 06/30/15 03/31/15 12/31/14 12/31/15 12/31/14
Net loan and lease charge-offs $1,909 $1,652 $2,473 $802 $1,748 $6,836 $7,439
Net loan and lease charge-offs (annualized)/Average loans and leases 0.36% 0.31% 0.48% 0.16% 0.43% 0.33% 0.47%

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2015
(Dollars in thousands, except per share data)
For the three months ended, For the twelve months ended,
For the period: 12/31/15 09/30/15 06/30/15 03/31/15 12/31/14 12/31/15 12/31/14
Interest income $25,623 $25,585 $25,513 $24,738 $18,995 $101,459 $75,885
Interest expense 2,278 2,220 2,133 1,434 1,039 8,065 3,996
Net interest income 23,345 23,365 23,380 23,304 17,956 93,394 71,889
Provision for loan and lease losses 917 670 1,141 1,074 648 3,802 3,607
Net interest income after provision 22,428 22,695 22,239 22,230 17,308 89,592 68,282
Noninterest income:
Trust fee income 2,030 1,904 2,154 1,820 2,143 7,908 7,835
Service charges on deposit accounts 1,059 1,069 1,039 1,063 1,096 4,230 4,230
Investment advisory commission and fee income 2,583 2,687 2,740 2,763 2,760 10,773 11,904
Insurance commission and fee income 3,073 3,232 3,434 4,146 2,896 13,885 11,543
Bank owned life insurance income 425 306 211 353 461 1,295 1,628
Net gain on sales of investment securities 697 296 181 91 78 1,265 635
Net gain on mortgage banking activities 1,090 1,123 1,367 1,258 698 4,838 2,182
Net gain on sales of other real estate owned - 14 - - - 14 195
Other income 2,355 2,224 2,225 1,937 1,944 8,741 8,499
Total noninterest income 13,312 12,855 13,351 13,431 12,076 52,949 48,651
Noninterest expense:
Salaries and benefits 12,828 11,970 11,957 13,314 10,297 50,069 42,245
Commissions 1,894 2,174 2,155 1,814 2,052 8,037 7,637
Premises and equipment 3,897 3,924 3,743 4,047 3,368 15,611 12,668
Professional fees 870 1,096 1,066 807 765 3,839 3,164
Intangible expenses 178 710 893 786 405 2,567 2,167
Acquisition-related costs 540 50 41 466 531 1,047 1,270
Integration costs 6 - 110 1,374 - 1,490 8
Restructuring charges - - 1,642 - - 1,642 -
Other expense 5,816 5,369 5,225 4,803 5,144 21,213 18,095
Total noninterest expense 26,029 25,243 26,832 27,411 22,562 105,515 87,254
Income before taxes 9,711 10,307 8,758 8,250 6,822 37,026 29,679
Income taxes 2,553 2,779 2,292 2,134 1,632 9,758 7,448
Net income $7,158 $7,528 $6,466 $6,116 $5,190 $27,268 $22,231
Per common share data:
Book value per share $18.51 $18.41 $18.21 $18.18 $17.54 $18.51 $17.54
Net income per share:
Basic $0.37 $0.39 $0.33 $0.31 $0.32 $1.39 $1.37
Diluted $0.37 $0.39 $0.33 $0.31 $0.32 $1.39 $1.37
Dividends declared per share $0.20 $0.20 $0.20 $0.20 $0.20 $0.80 $0.80
Weighted average shares outstanding 19,525,701 19,506,609 19,675,002 19,951,242 16,215,580 19,663,039 16,234,959
Period end shares outstanding 19,530,930 19,502,613 19,559,941 19,820,824 16,221,607 19,530,930 16,221,607

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2015
For the three months ended, For the twelve months ended,
Profitability Ratios (annualized) 12/31/15 09/30/15 06/30/15 03/31/15 12/31/14 12/31/15 12/31/14
Return on average assets 0.99% 1.06% 0.95% 0.92% 0.92% 0.98% 1.01%
Return on average assets, excluding integration 1.06% 1.06% 1.12% 1.10% 1.01% 1.09% 1.06%
and acquisition-related costs and restructuring charges
Return on average shareholders' equity 7.88% 8.36% 7.22% 6.85% 7.06% 7.58% 7.74%
Return on average shareholders' equity, excluding 8.42% 8.36% 8.52% 8.19% 7.78% 8.38% 8.11%
integration and acquisition-related costs and
restructuring charges
Return on average tangible common equity, excluding 12.92% 12.91% 13.12% 12.48% 10.73% 12.86% 11.12%
integration and acquisition-related costs and
restructuring charges
Net interest margin (FTE) 3.80% 3.89% 4.03% 4.12% 3.78% 3.96% 3.87%
Efficiency ratio (1) 68.10% 66.96% 70.29% 71.68% 71.46% 69.27% 69.01%
Efficiency ratio (1), excluding integration and 66.67% 66.96% 65.60% 66.87% 69.78% 66.52% 68.00%
acquisition-related costs and restructuring charges
Capitalization Ratios
Dividends declared to net income 54.08% 51.79% 60.49% 65.26% 62.49% 57.35% 58.40%
Shareholders' equity to assets (Period End) 12.56% 12.59% 12.81% 13.07% 12.73% 12.56% 12.73%
Tangible common equity to tangible assets 8.58% 8.56% 8.67% 8.91% 9.49% 8.58% 9.49%
Regulatory Capital Ratios (Period End) (2)
Tier 1 leverage ratio 9.69% 9.75% 9.89% 10.16% 10.55% 9.69% 10.55%
Common equity tier 1 risk-based capital ratio 10.63% 10.85% 10.77% 11.09% - 10.63% -
Tier 1 risk-based capital ratio 10.63% 10.85% 10.77% 11.09% 11.79% 10.63% 11.79%
Total risk-based capital ratio 13.32% 13.69% 13.65% 14.09% 12.91% 13.32% 12.91%
(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 December 31,
Tax Equivalent Basis 2015 2014
AverageIncome/Average AverageIncome/Average
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate
Assets:
Interest-earning deposits with other banks$75,782 $58 0.30%$48,393 $32 0.26%
U.S. government obligations 105,635 300 1.13 127,561 320 1.00
Obligations of state and political subdivisions 105,415 1,292 4.86 103,682 1,365 5.22
Other debt and equity securities 159,113 1,029 2.57 132,324 644 1.93
Total interest-earning deposits and investments 445,945 2,679 2.38 411,960 2,361 2.27
Commercial, financial, and agricultural loans 409,184 3,950 3.83 380,379 3,711 3.87
Real estate—commercial and construction loans 870,620 9,822 4.48 625,636 6,773 4.30
Real estate—residential loans 530,550 5,967 4.46 308,630 3,111 4.00
Loans to individuals 29,900 403 5.35 29,801 413 5.50
Municipal loans and leases 218,585 2,572 4.67 191,206 2,320 4.81
Lease financings 74,083 1,567 8.39 72,266 1,597 8.77
Gross loans and leases 2,132,922 24,281 4.52 1,607,918 17,925 4.42
Total interest-earning assets 2,578,867 26,960 4.15 2,019,878 20,286 3.98
Cash and due from banks 33,787 33,140
Reserve for loan and lease losses (18,858) (22,315)
Premises and equipment, net 41,699 36,186
Other assets 231,353 172,126
Total assets$2,866,848 $2,239,015
Liabilities:
Interest-bearing checking deposits$386,243 $79 0.08 $316,827 $43 0.05
Money market savings 391,891 348 0.35 320,559 159 0.20
Regular savings 595,019 141 0.09 523,768 79 0.06
Time deposits 477,524 1,034 0.86 256,637 751 1.16
Total time and interest-bearing deposits 1,850,677 1,602 0.34 1,417,791 1,032 0.29
Short-term borrowings 21,189 2 0.04 41,048 7 0.07
Subordinated notes (1) 49,358 674 5.42 - - -
Total borrowings 70,547 676 3.80 41,048 7 0.07
Total interest-bearing liabilities 1,921,224 2,278 0.47 1,458,839 1,039 0.28
Noninterest-bearing deposits 542,978 458,147
Accrued expenses and other liabilities 42,125 30,482
Total liabilities 2,506,327 1,947,468
Shareholders' Equity:
Common stock 110,271 91,332
Additional paid-in capital 121,028 62,743
Retained earnings and other equity 129,222 137,472
Total shareholders' equity 360,521 291,547
Total liabilities and shareholders' equity$2,866,848 $2,239,015
Net interest income $24,682 $19,247
Net interest spread 3.68 3.70
Effect of net interest-free funding sources 0.12 0.08
Net interest margin 3.80% 3.78%
Ratio of average interest-earning assets to average interest-bearing liabilities 134.23% 138.46%
(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 December 31, 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 Twelve Months Ended December 31,
Tax Equivalent Basis 2015 2014
AverageIncome/Average AverageIncome/Average
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate
Assets:
Interest-earning deposits with other banks$38,515 $95 0.25%$33,482 $81 0.24%
U.S. government obligations 123,593 1,375 1.11 128,487 1,287 1.00
Obligations of state and political subdivisions 107,204 5,303 4.95 106,365 5,554 5.22
Other debt and equity securities 143,133 3,296 2.30 137,900 2,702 1.96
Federal funds sold 1,831 2 0.11 - - -
Total interest-earning deposits, investments and federal funds sold 414,276 10,071 2.43 406,234 9,624 2.37
Commercial, financial, and agricultural loans 422,507 16,901 4.00 392,747 15,636 3.98
Real estate—commercial and construction loans 849,161 39,275 4.63 608,602 26,454 4.35
Real estate—residential loans 499,208 22,789 4.57 293,610 11,987 4.08
Loans to individuals 29,653 1,587 5.35 33,675 2,040 6.06
Municipal loans and leases 208,236 9,890 4.75 180,914 8,767 4.85
Lease financings 72,052 6,240 8.66 71,287 6,404 8.98
Gross loans and leases 2,080,817 96,682 4.65 1,580,835 71,288 4.51
Total interest-earning assets 2,495,093 106,753 4.28 1,987,069 80,912 4.07
Cash and due from banks 33,025 32,710
Reserve for loan and lease losses (20,447) (24,287)
Premises and equipment, net 40,891 35,099
Other assets 227,721 171,656
Total assets$2,776,283 $2,202,247
Liabilities:
Interest-bearing checking deposits$369,611 $269 0.07 $314,784 $172 0.05
Money market savings 368,392 1,205 0.33 295,209 373 0.13
Regular savings 582,647 533 0.09 535,346 317 0.06
Time deposits 461,968 4,000 0.87 264,591 3,102 1.17
Total time and interest-bearing deposits 1,782,618 6,007 0.34 1,409,930 3,964 0.28
Short-term borrowings 35,932 35 0.10 41,215 32 0.08
Subordinated notes (1) 37,431 2,023 5.40 - - -
Total borrowings 73,363 2,058 2.81 41,215 32 0.08
Total interest-bearing liabilities 1,855,981 8,065 0.43 1,451,145 3,996 0.28
Noninterest-bearing deposits 517,566 435,058
Accrued expenses and other liabilities 43,011 29,006
Total liabilities 2,416,558 1,915,209
Shareholders' Equity:
Common stock 110,271 91,332
Additional paid-in capital 120,565 62,163
Retained earnings and other equity 128,889 133,543
Total shareholders' equity 359,725 287,038
Total liabilities and shareholders' equity$2,776,283 $2,202,247
Net interest income $98,688 $76,916
Net interest spread 3.85 3.79
Effect of net interest-free funding sources 0.11 0.08
Net interest margin 3.96% 3.87%
Ratio of average interest-earning assets to average interest-bearing liabilities 134.44% 136.93%
(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 twelve months ended December 31, 2015 and 2014 have been calculated using the Corporation’s federal applicable rate of 35.0%.


CONTACT: Mike Keim President, Univest Bank and Trust Co. Chief Financial Officer, Univest Corporation of Pennsylvania 215-721-2511, keimm@univest.net

Source:Univest Corporation of Pennsylvania