Acquisition (Tables)

6 Months Ended

Jun. 30, 2015

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	381,106
Premises and equipment, net	2,973
Core deposit intangible *	1,520
Accrued interest receivable and other assets	4,585
Total identifiable assets			425,311
Fair value of liabilities assumed:
Deposits - noninterest bearing	$	49,102
Deposits - interest bearing	336,810
Change in control accrued payments	2,070
Accrued interest payable and other liabilities	1,800
Total liabilities			389,782
Identifiable net assets			35,529
Goodwill resulting from merger *			$	43,377

* - 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	$	7,429
Contractual cash flows not expected to be collected (nonaccretable difference)	(5,166		)
Cash flows expected to be collected	2,263
Interest component of expected cash flows (accretable difference)	(352		)
Fair value of loans acquired with a deterioration of credit quality	$	1,911

The outstanding principal balance and carrying amount for acquired credit impaired loans at June 30, 2015 were as follows:



(Dollars in thousands)	At June 30, 2015
Outstanding principal balance	$	6,235
Carrying amount	1,876
Allowance for loan losses	—

The following table presents the changes in accretable yield on acquired credit impaired loans:



(Dollars in thousands)	Six Months Ended June 30, 2015
Beginning of period	$	—
Acquisition of credit impaired loans	352
Accretable yield amortized to interest income	(82		)
End of period	$	270

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 June 30, 2015 and December 31, 2014. The impaired loans exclude loans acquired with deteriorated credit quality.



	At June 30, 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:
Loans held for sale	$	4,000	$	5,229			$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	$	12,542	$	13,518			$	12,628	$	13,050
Real estate—commercial real estate	18,093		19,189				29,779		30,810
Real estate—construction	863		952				5,931		6,474
Real estate—residential secured for business purpose	3,633		3,657				3,008		3,044
Real estate—residential secured for personal purpose	789		833				512		547
Real estate—home equity secured for personal purpose	160		160				184		184
Total impaired loans with no allowance recorded	$	40,080	$	43,538			$	52,042	$	54,109
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	2,867	$	2,870	$	444	$	3,933	$	3,935	$	920
Real estate—commercial real estate	—		—		—		216		216		78
Total impaired loans with an allowance recorded	$	2,867	$	2,870	$	444	$	4,149	$	4,151	$	998



	At June 30, 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:
Loans held for sale	$	4,000	$	5,229	$	—	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural	$	15,409	$	16,388	$	444	$	16,561	$	16,985	$	920
Real estate—commercial real estate	18,093		19,189		—		29,995		31,026		78
Real estate—construction	863		952		—		5,931		6,474		—
Real estate—residential secured for business purpose	3,633		3,657		—		3,008		3,044		—
Real estate—residential secured for personal purpose	789		833		—		512		547		—
Real estate—home equity secured for personal purpose	160		160		—		184		184		—
Total impaired loans	$	42,947	$	46,408	$	444	$	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				Pro Forma
	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(Dollars in thousands, except share data)	2015		2014		2015		2014
Net interest income	$	23,380	$	22,733	$	46,684	$	45,645
Noninterest income	13,351		12,068		26,782		24,365
Noninterest expense	26,832		24,164		54,243		47,561
Net income	6,466		6,485		12,582		13,903
Earnings per share
Basic	0.33		0.32		0.64		0.69
Diluted	0.33		0.32		0.63		0.69