Acquisition (Tables)

12 Months Ended

Dec. 31, 2016

The following table summarized the consideration paid for Fox Chase 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:
Fox Chase common shares outstanding	11,754,852
Fox Chase common shares settled for stock	7,047,096
Exchange ratio	0.9731
Univest shares issued	6,857,529
Univest closing stock price at June 30, 2016	$	21.02
Purchase price assigned to Fox Chase common shares exchanged for Univest stock			$	144,146
Fox Chase common shares settled for cash	4,707,756
Purchase price for shares exchanged for cash	$	21.00
Purchase price assigned to Fox Chase common shares exchanged for cash			98,863
Purchase price assigned to cash in lieu of fractional shares			11
Purchase price assigned to Fox Chase options settled for cash			4,255
Purchase price consideration - ESOP and Equity Incentive Plan			(5,041		)
Total purchase price			$	242,234

Fair value of assets acquired:
Cash and due from banks	$	3,253
Interest-earning deposits with other banks	15,629
Investment securities available-for-sale	230,682
Loans held for investment	776,214
Premises and equipment, net	13,146
Other real estate owned	2,510
Core deposit intangible *	5,268
Bank owned life insurance	26,119
Accrued interest receivable and other assets	20,827
Total identifiable assets			$	1,093,648
Fair value of liabilities assumed:
Deposits - noninterest bearing	$	35,285
Deposits - interest bearing	702,978
Short-term borrowings	48,500
Long-term debt	123,448
Accrued interest payable and other liabilities	1,105
Total liabilities			$	911,316
Identifiable net assets			182,332
Goodwill resulting from merger *			$	59,902

* 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 July 1, 2016 resulting from the acquisition with Fox Chase:



(Dollars in thousands)

Contractually required principal and interest payments	$	25,141
Contractual cash flows not expected to be collected (nonaccretable difference)	(11,120		)
Cash flows expected to be collected	14,021
Interest component of expected cash flows (accretable discount)	(283		)
Fair value of loans acquired with a deterioration of credit quality	$	13,738

The outstanding principal balance and carrying amount for acquired credit impaired loans at December 31, 2016 and 2015 were as follows:



(Dollars in thousands)	At December 31, 2016		At December 31, 2015
Outstanding principal balance	$	8,993	$	3,551
Carrying amount	7,352		1,253
Allowance for loan losses	—		8

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



	For the Years Ended December 31,
(Dollars in thousands)	2016			2015
Beginning of period	$	144		$	—
Acquisition of credit impaired loans	283			305
Reclassification from nonaccretable discount	1,329			574
Accretable yield amortized to interest income	(1,672		)	(717		)
Disposals	(34		)	(18		)
End of period	$	50		$	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 a reserve for credit losses and the amounts for which there is a reserve for credit losses at December 31, 2016 and 2015. The impaired loans exclude loans acquired with deteriorated credit quality.



	At December 31,
	2016						2015
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Reserve		Recorded Investment		Unpaid Principal Balance		Related Reserve
Impaired loans with no related reserve recorded:
Commercial, financial and agricultural	$	10,911	$	12,561			$	10,337	$	13,318
Real estate—commercial real estate	24,469		25,342				30,088		30,996
Real estate—residential secured for business purpose	5,704		6,253				4,597		4,717
Real estate—residential secured for personal purpose	560		594				545		554
Real estate—home equity secured for personal purpose	525		528				170		170
Total impaired loans with no related reserve recorded	$	42,169	$	45,278			$	45,737	$	49,755

Impaired loans with a reserve recorded:
Commercial, financial and agricultural	$	166	$	166	$	19	$	2,544	$	2,544	$	208
Real estate—commercial real estate	597		597		25		—		—		—
Real estate—residential secured for business purpose	983		1,105		191		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 a reserve recorded	$	1,746	$	1,868	$	235	$	3,196	$	3,196	$	322

Total impaired loans:
Commercial, financial and agricultural	$	11,077	$	12,727	$	19	$	12,881	$	15,862	$	208
Real estate—commercial real estate	25,066		25,939		25		30,088		30,996		—
Real estate—residential secured for business purpose	6,687		7,358		191		4,892		5,012		45
Real estate—residential secured for personal purpose	560		594		—		797		806		16
Real estate—home equity secured for personal purpose	525		528		—		275		275		53
Total impaired loans	$	43,915	$	47,146	$	235	$	48,933	$	52,951	$	322

Schedule of Pro Forma Information



	Pro Forma
	For the Years Ended December 31,
(Dollars in thousands, except share data)	2016		2015
Net interest income	$	132,581	$	130,452
Noninterest income	58,189		55,158
Noninterest expense*	168,170		132,600
Net income*	11,933		38,767
Earnings per share:*
Basic	0.45		1.46
Diluted	0.45		1.46