XML 50 R35.htm IDEA: XBRL DOCUMENT v3.3.1.900
Acquisition (Tables)
 12 Months Ended
Dec. 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
380,924

 
Premises and equipment, net
2,973

 
Core deposit intangible *
1,520

 
Accrued interest receivable and other assets
4,641

 
Total identifiable assets
 
$
425,185

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
1,813

 
Total liabilities
 
$
389,795

Identifiable net assets
 
35,390

Goodwill resulting from merger *
 
$
43,516

* Goodwill is not 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
$
7,377

Contractual cash flows not expected to be collected (nonaccretable difference)
(5,344
)
Cash flows expected to be collected
2,033

Interest component of expected cash flows (accretable difference)
(305
)
Fair value of loans acquired with a deterioration of credit quality
$
1,728

The outstanding principal balance and carrying amount for acquired credit impaired loans at December 31, 2015 were as follows:
(Dollars in thousands)
At December 31, 2015
Outstanding principal balance
$
3,551

Carrying amount
1,253

Allowance for loan losses
8


The following table presents the changes in accretable yield on acquired credit impaired loans:
(Dollars in thousands)
For the Year Ended December 31, 2015
Beginning of period
$
—

Acquisition of credit impaired loans
305

Reclassification from nonaccretable difference
574

Accretable yield amortized to interest income
(717
)
Disposals
(18
)
End of period
$
144

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 December 31, 2015 and 2014. The impaired loans exclude loans acquired with deteriorated credit quality.
 
At December 31,
 
2015
 
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
$
10,337

 
$
13,318

 
 
 
$
12,628

 
$
13,050

 
 
Real estate—commercial real estate
30,088

 
30,996

 
 
 
29,779

 
30,810

 
 
Real estate—construction
—

 
—

 
 
 
5,931

 
6,474

 
 
Real estate—residential secured for business purpose
4,597

 
4,717

 
 
 
3,008

 
3,044

 
 
Real estate—residential secured for personal purpose
545

 
554

 
 
 
512

 
547

 
 
Real estate—home equity secured for personal purpose
170

 
170

 
 
 
184

 
184

 
 
Total impaired loans with no related allowance recorded
$
45,737

 
$
49,755

 
 
 
$
52,042

 
$
54,109

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans with an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
2,544

 
$
2,544

 
$
208

 
$
3,933

 
$
3,935

 
$
920

Real estate—commercial real estate
—

 
—

 
—

 
216

 
216

 
78

Real estate—residential secured for business purpose
295

 
295

 
45

 
—

 
—

 
—

Real estate—residential secured for personal purpose
252

 
252

 
16

 
—

 
—

 
—

Real estate—home equity secured for personal purpose
105

 
105

 
53

 
—

 
—

 
—

Total impaired loans with an allowance recorded
$
3,196

 
$
3,196

 
$
322

 
$
4,149

 
$
4,151

 
$
998

 
 
 
 
 
 
 
 
 
 
 
 
Total impaired loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
12,881

 
$
15,862

 
$
208

 
$
16,561

 
$
16,985

 
$
920

Real estate—commercial real estate
30,088

 
30,996

 
—

 
29,995

 
31,026

 
78

Real estate—construction
—

 
—

 
—

 
5,931

 
6,474

 
—

Real estate—residential secured for business purpose
4,892

 
5,012

 
45

 
3,008

 
3,044

 
—

Real estate—residential secured for personal purpose
797

 
806

 
16

 
512

 
547

 
—

Real estate—home equity secured for personal purpose
275

 
275

 
53

 
184

 
184

 
—

Total impaired loans
$
48,933

 
$
52,951

 
$
322

 
$
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-K 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 Years Ended December 31,
(Dollars in thousands, except share data)
2015
 
2014
Net interest income
$
93,394

 
$
92,240

Noninterest income
52,949

 
49,325

Noninterest expense
105,515

 
98,729

Net income
27,268

 
27,468

Earnings per share
 
 
 
Basic
1.39

 
1.37

Diluted
1.39

 
1.37