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Acquisition (Tables)
3 Months Ended
Mar. 31, 2015
Business Combinations [Abstract]  
Schedule of Acquisition
The following table summarized the consideration paid for Valley Green Bank and the fair value of assets acquired and liabilities assumed at the acquisition date:
(Dollars in thousands, except share data)
 
 
 
 
 
Purchase price consideration in common stock:
 
 
Valley Green common shares outstanding
2,797,454

 
Exchange ratio
1.3541

 
Univest shares issued
3,787,866

 
Univest closing stock price at December 31, 2014
$
20.24

 
Purchase price assigned to Valley Green common shares exchanged for Univest stock
 
$
76,667

Purchase price assigned to cash in lieu of fractional shares
 
3

Purchase price assigned to Valley Green options settled for cash
 
2,236

Total purchase price
 
$
78,906

 
 
 
Fair value of assets acquired:
 
 
Cash and due from banks
$
4,919

 
Federal funds sold
17,442

 
Investment securities available-for-sale
12,766

 
Loans held for investment
381,720

 
Premises and equipment, net
3,102

 
Core deposit intangible *
1,520

 
Accrued interest receivable and other assets
4,365

 
Total identifiable assets
 
425,834

Fair value of liabilities assumed:
 
 
Deposits - noninterest bearing
$
49,826

 
Deposits - interest bearing
336,086

 
Change in control accrued payments
2,070

 
Accrued interest payable and other liabilities
1,925

 
Total liabilities
 
389,907

Net identifiable net assets
 
35,927

Goodwill resulting from merger *
 
$
42,979

* - Goodwill is not expected to be deductible for federal income tax purposes. The goodwill and core deposit intangible are allocated to
the Banking business segment.
Schedule of Impaired Loans
The following is a summary of the acquired impaired loans at January 1, 2015 resulting from the acquisition with Valley Green:
(Dollars in thousands)
 
 
 
Contractually required principal and interest payments
$
6,361

Contractual cash flows not expected to be collected (nonaccretable difference)
(4,412
)
Cash flows expected to be collected
1,949

Interest component of expected cash flows (accretable difference)
(322
)
Fair value of loans acquired with a deterioration of credit quality
$
1,627

The outstanding principal balance and carrying amount for acquired credit impaired loans at March 31, 2015 were as follows:
(Dollars in thousands)
March 31, 2015
Outstanding principal balance
$
5,738

Carrying amount
1,631

Allowance for loan losses


The following table presents the changes in accretable yield on acquired credit impaired loans:
(Dollars in thousands)
Three Months Ended 
 March 31, 2015
Beginning of period
$

Acquisition of credit impaired loans
322

Accretable yield amortized to interest income
(35
)
End of period
$
287

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans , the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at March 31, 2015 and December 31, 2014. The impaired loans exclude loans acquired with deteriorated credit quality.
 
At March 31, 2015
 
At December 31, 2014
(Dollars in thousands)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
Impaired loans with no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
11,112

 
$
11,778

 
 
 
$
12,628

 
$
13,050

 
 
Real estate—commercial real estate
28,720

 
29,782

 
 
 
29,779

 
30,810

 
 
Real estate—construction
5,660

 
6,006

 
 
 
5,931

 
6,474

 
 
Real estate—residential secured for business purpose
3,239

 
3,295

 
 
 
3,008

 
3,044

 
 
Real estate—residential secured for personal purpose
802

 
839

 
 
 
512

 
547

 
 
Real estate—home equity secured for personal purpose
107

 
107

 
 
 
184

 
184

 
 
Total impaired loans with no allowance recorded
$
49,640

 
$
51,807

 
 
 
$
52,042

 
$
54,109

 
 
Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
4,012

 
$
4,017

 
$
1,004

 
$
3,933

 
$
3,935

 
$
920

Real estate—commercial real estate

 

 

 
216

 
216

 
78

Total impaired loans with an allowance recorded
$
4,012

 
$
4,017

 
$
1,004

 
$
4,149

 
$
4,151

 
$
998


 
At March 31, 2015
 
At December 31, 2014
(Dollars in thousands)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
Total impaired loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
15,124

 
$
15,795

 
$
1,004

 
$
16,561

 
$
16,985

 
$
920

Real estate—commercial real estate
28,720

 
29,782

 

 
29,995

 
31,026

 
78

Real estate—construction
5,660

 
6,006

 

 
5,931

 
6,474

 

Real estate—residential secured for business purpose
3,239

 
3,295

 

 
3,008

 
3,044

 

Real estate—residential secured for personal purpose
802

 
839

 

 
512

 
547

 

Real estate—home equity secured for personal purpose
107

 
107

 

 
184

 
184

 

Total impaired loans
$
53,652

 
$
55,824

 
$
1,004

 
$
56,191

 
$
58,260

 
$
998

Schedule of Pro Forma Information
The unaudited pro forma data presented below is based on, and should be read together with, the historical financial information of the Corporation included in this Form 10-Q for the indicated periods and the historical information of Valley Green Bank included in the Corporation's Current Report on Form 8-K filed with the SEC on January 7, 2015.
 
Pro Forma For the Three Months Ended March 31,
(Dollars in thousands, except share data)
2015*
 
2014
Net interest income
$
23,304

 
$
22,906

Noninterest income
13,431

 
12,297

Noninterest expense
27,411

 
23,397

Net income
6,116

 
7,414

Earnings per share
 
 
 
Basic
0.31

 
0.37

Diluted
0.31

 
0.37