Pennsylvania | 0-7617 | 23-1886144 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |
Emerging growth company | ¨ |
If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description of Document | |
99.1 |
Univest Corporation of Pennsylvania | ||
By: | /s/ Roger S. Deacon | |
Name: | Roger S. Deacon | |
Title: | Senior Executive Vice President, | |
Chief Financial Officer |
Exhibit No. | Description of Document | |
99.1 |
NEWS |
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Balance Sheet (Period End) | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | ||||||||||||||||||||||
Assets | $ | 4,417,363 | $ | 4,453,527 | $ | 4,273,931 | $ | 4,230,528 | $ | 4,140,444 | |||||||||||||||||
Investment securities | 443,822 | 469,307 | 464,639 | 468,518 | 484,213 | ||||||||||||||||||||||
Loans held for sale | 2,228 | 2,259 | 1,110 | 5,890 | 3,844 | ||||||||||||||||||||||
Loans and leases held for investment, gross | 3,487,164 | 3,510,170 | 3,341,916 | 3,285,886 | 3,190,361 | ||||||||||||||||||||||
Allowance for loan and lease losses | 20,543 | 20,910 | 19,528 | 17,499 | 16,899 | ||||||||||||||||||||||
Loans and leases held for investment, net | 3,466,621 | 3,489,260 | 3,322,388 | 3,268,387 | 3,173,462 | ||||||||||||||||||||||
Total deposits | 3,518,590 | 3,348,080 | 3,365,951 | 3,257,567 | 3,178,509 | ||||||||||||||||||||||
Noninterest-bearing deposits | 987,881 | 963,790 | 947,495 | 918,337 | 874,581 | ||||||||||||||||||||||
NOW, money market and savings | 1,959,549 | 1,837,452 | 1,865,280 | 1,713,041 | 1,652,696 | ||||||||||||||||||||||
Time deposits | 571,160 | 546,838 | 553,176 | 626,189 | 651,232 | ||||||||||||||||||||||
Borrowings | 332,529 | 542,545 | 355,580 | 417,780 | 398,341 | ||||||||||||||||||||||
Shareholders' equity | 528,798 | 521,306 | 511,880 | 505,209 | 509,249 | ||||||||||||||||||||||
Balance Sheet (Average) | For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | 9/30/2017 | 9/30/2016 | |||||||||||||||||||||
Assets | $ | 4,416,332 | $ | 4,333,689 | $ | 4,230,428 | $ | 4,134,976 | $ | 4,147,468 | $ | 4,327,490 | $ | 3,281,469 | |||||||||||||
Investment securities | 459,862 | 468,601 | 470,300 | 473,890 | 503,790 | 466,216 | 383,275 | ||||||||||||||||||||
Loans and leases, gross | 3,467,235 | 3,401,325 | 3,306,877 | 3,208,171 | 3,164,273 | 3,392,400 | 2,529,339 | ||||||||||||||||||||
Deposits | 3,480,318 | 3,346,409 | 3,290,285 | 3,237,778 | 3,177,060 | 3,373,033 | 2,625,299 | ||||||||||||||||||||
Shareholders' equity | 527,032 | 517,697 | 509,055 | 507,832 | 506,464 | 517,994 | 413,348 | ||||||||||||||||||||
Asset Quality Data (Period End) | |||||||||||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | |||||||||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases | $ | 15,949 | $ | 20,174 | $ | 19,856 | $ | 17,916 | $ | 15,050 | |||||||||||||||||
Accruing loans and leases 90 days or more past due | 1,595 | 572 | 919 | 987 | 1,128 | ||||||||||||||||||||||
Accruing troubled debt restructured loans and leases | 11,468 | 11,470 | 2,818 | 3,252 | 3,286 | ||||||||||||||||||||||
Total nonperforming loans | 29,012 | 32,216 | 23,593 | 22,155 | 19,464 | ||||||||||||||||||||||
Other real estate owned | 1,763 | 2,202 | 3,712 | 4,969 | 6,041 | ||||||||||||||||||||||
Total nonperforming assets | 30,775 | 34,418 | 27,305 | 27,124 | 25,505 | ||||||||||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment | 0.46 | % | 0.57 | % | 0.59 | % | 0.55 | % | 0.47 | % | |||||||||||||||||
Nonperforming loans and leases / Loans and leases held for investment | 0.83 | % | 0.92 | % | 0.71 | % | 0.67 | % | 0.61 | % | |||||||||||||||||
Nonperforming assets / Total assets | 0.70 | % | 0.77 | % | 0.64 | % | 0.64 | % | 0.62 | % | |||||||||||||||||
Allowance for loan and lease losses | 20,543 | 20,910 | 19,528 | 17,499 | 16,899 | ||||||||||||||||||||||
Allowance for loan and lease losses / Loans and leases held for investment | 0.59 | % | 0.60 | % | 0.58 | % | 0.53 | % | 0.53 | % | |||||||||||||||||
Allowance for loan and lease losses / Loans and leases held for investment (excluding acquired loans at period-end) | 0.71 | % | 0.73 | % | 0.74 | % | 0.73 | % | 0.77 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 128.80 | % | 103.65 | % | 98.35 | % | 97.67 | % | 112.29 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 70.81 | % | 64.91 | % | 82.77 | % | 78.98 | % | 86.82 | % | |||||||||||||||||
Acquired credit impaired loans | $ | 1,622 | $ | 6,485 | $ | 6,616 | $ | 7,352 | $ | 14,575 | |||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | 9/30/2017 | 9/30/2016 | |||||||||||||||||||||
Net loan and lease charge-offs | $ | 3,056 | $ | 1,384 | $ | 416 | $ | 1,650 | $ | 1,669 | $ | 4,856 | $ | 3,300 | |||||||||||||
Net loan and lease charge-offs (annualized)/Average loans and leases | 0.35 | % | 0.16 | % | 0.05 | % | 0.20 | % | 0.21 | % | 0.19 | % | 0.17 | % |
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
For the period: | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | 9/30/2017 | 9/30/2016 | ||||||||||||||||||||
Interest income | $ | 42,172 | $ | 40,030 | $ | 38,396 | $ | 38,056 | $ | 36,705 | $ | 120,598 | $ | 88,551 | |||||||||||||
Interest expense | 5,285 | 4,730 | 4,113 | 3,884 | 3,836 | 14,128 | 8,498 | ||||||||||||||||||||
Net interest income | 36,887 | 35,300 | 34,283 | 34,172 | 32,869 | 106,470 | 80,053 | ||||||||||||||||||||
Provision for loan and lease losses | 2,689 | 2,766 | 2,445 | 2,250 | 1,415 | 7,900 | 2,571 | ||||||||||||||||||||
Net interest income after provision | 34,198 | 32,534 | 31,838 | 31,922 | 31,454 | 98,570 | 77,482 | ||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||
Trust fee income | 1,924 | 2,016 | 1,907 | 1,921 | 1,958 | 5,847 | 5,820 | ||||||||||||||||||||
Service charges on deposit accounts | 1,371 | 1,313 | 1,243 | 1,293 | 1,344 | 3,927 | 3,398 | ||||||||||||||||||||
Investment advisory commission and fee income | 3,455 | 3,333 | 3,181 | 3,072 | 2,905 | 9,969 | 8,352 | ||||||||||||||||||||
Insurance commission and fee income | 3,492 | 3,628 | 4,410 | 3,275 | 3,267 | 11,530 | 11,328 | ||||||||||||||||||||
Bank owned life insurance income | 742 | 1,622 | 783 | 1,215 | 711 | 3,147 | 1,716 | ||||||||||||||||||||
Net gain on sales of investment securities | 7 | 21 | 15 | 31 | 30 | 43 | 487 | ||||||||||||||||||||
Net gain on mortgage banking activities | 908 | 1,537 | 1,113 | 1,092 | 2,006 | 3,558 | 4,935 | ||||||||||||||||||||
Other income | 2,210 | 2,539 | 2,318 | 2,095 | 1,916 | 7,067 | 5,933 | ||||||||||||||||||||
Total noninterest income | 14,109 | 16,009 | 14,970 | 13,994 | 14,137 | 45,088 | 41,969 | ||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||
Salaries and benefits | 16,909 | 16,353 | 16,657 | 16,546 | 16,710 | 49,919 | 44,972 | ||||||||||||||||||||
Commissions | 2,244 | 2,374 | 2,050 | 2,618 | 2,485 | 6,668 | 6,743 | ||||||||||||||||||||
Premises and equipment | 3,542 | 3,715 | 3,658 | 3,929 | 3,476 | 10,915 | 9,198 | ||||||||||||||||||||
Data processing | 2,118 | 2,081 | 2,058 | 2,001 | 2,169 | 6,257 | 4,980 | ||||||||||||||||||||
Professional fees | 1,447 | 1,248 | 1,239 | 1,258 | 1,322 | 3,934 | 3,289 | ||||||||||||||||||||
Marketing and advertising | 271 | 475 | 379 | 619 | 345 | 1,125 | 1,396 | ||||||||||||||||||||
Deposit insurance premiums | 409 | 451 | 402 | 521 | 327 | 1,262 | 1,192 | ||||||||||||||||||||
Intangible expense | 690 | 446 | 759 | 2,917 | 854 | 1,895 | 2,611 | ||||||||||||||||||||
Acquisition-related costs | — | — | — | 101 | 8,784 | — | 10,156 | ||||||||||||||||||||
Integration costs | — | — | — | 269 | 5,365 | — | 5,398 | ||||||||||||||||||||
Restructuring charges (recoveries) | — | — | — | 1,816 | (85 | ) | — | (85 | ) | ||||||||||||||||||
Other expense | 5,065 | 5,405 | 4,828 | 5,835 | 5,314 | 15,298 | 13,701 | ||||||||||||||||||||
Total noninterest expense | 32,695 | 32,548 | 32,030 | 38,430 | 47,066 | 97,273 | 103,551 | ||||||||||||||||||||
Income (loss) before taxes | 15,612 | 15,995 | 14,778 | 7,486 | (1,475 | ) | 46,385 | 15,900 | |||||||||||||||||||
Income tax expense (benefit) | 4,416 | 4,217 | 3,922 | 568 | (1,533 | ) | 12,555 | 3,313 | |||||||||||||||||||
Net income | $ | 11,196 | $ | 11,778 | $ | 10,856 | $ | 6,918 | $ | 58 | $ | 33,830 | $ | 12,587 | |||||||||||||
Per common share data: | |||||||||||||||||||||||||||
Book value per share | $ | 19.83 | $ | 19.55 | $ | 19.21 | $ | 19.00 | $ | 19.17 | $ | 19.83 | $ | 19.17 | |||||||||||||
Net income per share: | |||||||||||||||||||||||||||
Basic | $ | 0.42 | $ | 0.44 | $ | 0.41 | $ | 0.26 | $ | — | $ | 1.27 | $ | 0.58 | |||||||||||||
Diluted | $ | 0.42 | $ | 0.44 | $ | 0.41 | $ | 0.26 | $ | — | $ | 1.27 | $ | 0.57 | |||||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | |||||||||||||
Weighted average shares outstanding | 26,666,460 | 26,661,784 | 26,630,698 | 26,577,948 | 26,554,626 | 26,653,111 | 21,929,403 | ||||||||||||||||||||
Period end shares outstanding | 26,671,336 | 26,667,991 | 26,645,520 | 26,589,353 | 26,558,412 | 26,671,336 | 26,558,412 |
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
Profitability Ratios (annualized) | 9/30/2017 | 6/30/2017 | 3/31/2017 | 12/31/2016 | 9/30/2016 | 9/30/2017 | 9/30/2016 | ||||||||||||||||||||
Return on average assets | 1.01 | % | 1.09 | % | 1.04 | % | 0.67 | % | 0.01 | % | 1.05 | % | 0.51 | % | |||||||||||||
Return on average assets, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 1.01 | % | 1.09 | % | 1.04 | % | 0.78 | % | 0.88 | % | 1.05 | % | 0.94 | % | |||||||||||||
Return on average shareholders' equity | 8.43 | % | 9.13 | % | 8.65 | % | 5.42 | % | 0.05 | % | 8.73 | % | 4.07 | % | |||||||||||||
Return on average shareholder's equity, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 8.43 | % | 9.13 | % | 8.65 | % | 6.37 | % | 7.24 | % | 8.73 | % | 7.47 | % | |||||||||||||
Return on average tangible common equity, excluding integration and acquisition-related costs and restructuring charges (1), (2), (5) | 12.83 | % | 14.06 | % | 13.48 | % | 9.95 | % | 11.32 | % | 13.45 | % | 11.31 | % | |||||||||||||
Net interest margin (FTE) | 3.80 | % | 3.76 | % | 3.80 | % | 3.81 | % | 3.68 | % | 3.78 | % | 3.82 | % | |||||||||||||
Efficiency ratio (3) | 61.94 | % | 60.74 | % | 62.70 | % | 76.48 | % | 96.45 | % | 61.78 | % | 81.54 | % | |||||||||||||
Efficiency ratio, excluding integration and acquisition-related costs and restructuring charges (1), (3), (4) | 61.94 | % | 60.74 | % | 62.70 | % | 72.13 | % | 67.63 | % | 61.78 | % | 69.36 | % | |||||||||||||
Capitalization Ratios | |||||||||||||||||||||||||||
Dividends declared to net income | 47.62 | % | 45.25 | % | 49.02 | % | 76.76 | % | N/M | 47.25 | % | 104.27 | % | ||||||||||||||
Shareholders' equity to assets (Period End) | 11.97 | % | 11.71 | % | 11.98 | % | 11.94 | % | 12.30 | % | 11.97 | % | 12.30 | % | |||||||||||||
Tangible common equity to tangible assets (5) | 8.22 | % | 7.96 | % | 8.06 | % | 7.97 | % | 8.24 | % | 8.22 | % | 8.24 | % | |||||||||||||
Tangible book value per share (5) | $ | 13.06 | $ | 12.75 | $ | 12.38 | $ | 12.13 | $ | 12.28 | $ | 13.06 | $ | 12.28 | |||||||||||||
Tangible book value per share - Core (5), (6) | $ | 13.14 | $ | 12.87 | $ | 12.56 | $ | 12.32 | $ | 12.21 | $ | 13.14 | $ | 12.21 | |||||||||||||
Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||
Tier 1 leverage ratio | 8.74 | % | 8.74 | % | 8.75 | % | 8.84 | % | 8.80 | % | 8.74 | % | 8.80 | % | |||||||||||||
Common equity tier 1 risk-based capital ratio | 9.50 | % | 9.21 | % | 9.41 | % | 9.42 | % | 9.58 | % | 9.50 | % | 9.58 | % | |||||||||||||
Tier 1 risk-based capital ratio | 9.50 | % | 9.21 | % | 9.41 | % | 9.42 | % | 9.58 | % | 9.50 | % | 9.58 | % | |||||||||||||
Total risk-based capital ratio | 12.46 | % | 12.15 | % | 12.44 | % | 12.44 | % | 12.64 | % | 12.46 | % | 12.64 | % | |||||||||||||
(1) This consolidated selected financial data schedule contains supplemental financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The management of Univest Corporation of Pennsylvania uses these non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See below table for additional information. | |||||||||||||||||||||||||||
(a) Integration and acquisition-related costs and restructuring charges | $ | — | $ | — | $ | — | $ | 2,186 | $ | 14,064 | $ | — | $ | 15,469 | |||||||||||||
Tax effect on integration and acquisition-related cost and restructuring charges | — | — | — | 969 | 4,910 | — | 4,934 | ||||||||||||||||||||
(b) Integration and acquisition-related costs and restructuring charges, net of tax | $ | — | $ | — | $ | — | $ | 1,217 | $ | 9,154 | $ | — | $ | 10,535 | |||||||||||||
(2) Net income in this ratio excludes integration and acquisition-related costs and restructuring charges, net of tax. See (1)(b) above. | |||||||||||||||||||||||||||
(3) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income. | |||||||||||||||||||||||||||
(4) Noninterest expense in this ratio excludes integration and acquisition-related costs and restructuring charges. See (1)(a) above. | |||||||||||||||||||||||||||
(5) Tangible equity represents total shareholders' equity less goodwill and other intangible assets, but includes servicing rights which were $6,556 at September 30, 2017, $6,548 at June 30, 2017, $6,502 at March 31, 2017, $6,485 at December 31, 2016 and $6,167 at September 30, 2016. | |||||||||||||||||||||||||||
(6) Tangible equity as defined in (5), excluding the impact of accumulated other comprehensive (loss) income on available-for-sale investment securities, net (($2,364 at September 30, 2017, ($3,028) at June 30, 2017, ($4,726) at March 31, 2017, ($4,989) at December 31, 2016 and $1,789 at September 30, 2016), divided by total shares outstanding. | |||||||||||||||||||||||||||
N/M Not Meaningful |
Univest Corporation of Pennsylvania | |||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
Tax Equivalent Basis | September 30, 2017 | June 30, 2017 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 43,941 | $ | 133 | 1.20 | % | $ | 17,951 | $ | 39 | 0.87 | % | |||||||||||
U.S. government obligations | 31,126 | 110 | 1.40 | 33,453 | 113 | 1.35 | |||||||||||||||||
Obligations of state and political subdivisions | 81,114 | 846 | 4.14 | 83,356 | 886 | 4.26 | |||||||||||||||||
Other debt and equity securities | 347,622 | 1,745 | 1.99 | 351,792 | 1,720 | 1.96 | |||||||||||||||||
Federal funds sold and other earning assets | 28,063 | 375 | 5.30 | 29,860 | 396 | 5.32 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 531,866 | 3,209 | 2.39 | 516,412 | 3,154 | 2.45 | |||||||||||||||||
Commercial, financial, and agricultural loans | 762,418 | 8,656 | 4.50 | 761,544 | 8,172 | 4.30 | |||||||||||||||||
Real estate—commercial and construction loans | 1,549,799 | 17,999 | 4.61 | 1,501,258 | 16,629 | 4.44 | |||||||||||||||||
Real estate—residential loans | 770,839 | 8,751 | 4.50 | 750,149 | 8,479 | 4.53 | |||||||||||||||||
Loans to individuals | 27,509 | 416 | 6.00 | 27,850 | 406 | 5.85 | |||||||||||||||||
Municipal loans and leases | 281,509 | 3,208 | 4.52 | 283,129 | 3,185 | 4.51 | |||||||||||||||||
Lease financings | 75,161 | 1,331 | 7.03 | 77,395 | 1,416 | 7.34 | |||||||||||||||||
Gross loans and leases | 3,467,235 | 40,361 | 4.62 | 3,401,325 | 38,287 | 4.51 | |||||||||||||||||
Total interest-earning assets | 3,999,101 | 43,570 | 4.32 | 3,917,737 | 41,441 | 4.24 | |||||||||||||||||
Cash and due from banks | 46,969 | 43,804 | |||||||||||||||||||||
Reserve for loan and lease losses | (21,425 | ) | (20,474 | ) | |||||||||||||||||||
Premises and equipment, net | 65,025 | 65,690 | |||||||||||||||||||||
Other assets | 326,662 | 326,932 | |||||||||||||||||||||
Total assets | $ | 4,416,332 | $ | 4,333,689 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 438,956 | $ | 132 | 0.12 | $ | 445,830 | $ | 118 | 0.11 | |||||||||||||
Money market savings | 587,590 | 919 | 0.62 | 560,350 | 694 | 0.50 | |||||||||||||||||
Regular savings | 904,528 | 646 | 0.28 | 835,495 | 446 | 0.21 | |||||||||||||||||
Time deposits | 557,757 | 1,371 | 0.98 | 547,115 | 1,203 | 0.88 | |||||||||||||||||
Total time and interest-bearing deposits | 2,488,831 | 3,068 | 0.49 | 2,388,790 | 2,461 | 0.41 | |||||||||||||||||
Short-term borrowings | 72,719 | 169 | 0.92 | 139,146 | 325 | 0.94 | |||||||||||||||||
Long-term debt | 207,057 | 794 | 1.52 | 200,207 | 683 | 1.37 | |||||||||||||||||
Subordinated notes | 94,238 | 1,254 | 5.28 | 94,176 | 1,261 | 5.37 | |||||||||||||||||
Total borrowings | 374,014 | 2,217 | 2.35 | 433,529 | 2,269 | 2.10 | |||||||||||||||||
Total interest-bearing liabilities | 2,862,845 | 5,285 | 0.73 | 2,822,319 | 4,730 | 0.67 | |||||||||||||||||
Noninterest-bearing deposits | 991,487 | 957,619 | |||||||||||||||||||||
Accrued expenses and other liabilities | 34,968 | 36,054 | |||||||||||||||||||||
Total liabilities | 3,889,300 | 3,815,992 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 144,559 | 144,559 | |||||||||||||||||||||
Additional paid-in capital | 231,575 | 230,683 | |||||||||||||||||||||
Retained earnings and other equity | 150,898 | 142,455 | |||||||||||||||||||||
Total shareholders' equity | 527,032 | 517,697 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,416,332 | $ | 4,333,689 | |||||||||||||||||||
Net interest income | $ | 38,285 | $ | 36,711 | |||||||||||||||||||
Net interest spread | 3.59 | 3.57 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.21 | 0.19 | |||||||||||||||||||||
Net interest margin | 3.80 | % | 3.76 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 139.69 | % | 138.81 | % | |||||||||||||||||||
Note 1: In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures determined | |||||||||||||||||||||||
by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered a substitute for GAAP basis | |||||||||||||||||||||||
financial information and measures. Management believes the presentation of the non-GAAP financial information and measures provides useful | |||||||||||||||||||||||
information that is essential to a proper understanding of the financial results of the Corporation. | |||||||||||||||||||||||
Note 2: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and | |||||||||||||||||||||||
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 September 30, 2017 and June 30, 2017 have been calculated using the Corporation’s federal applicable rate of 35.0%. |
Univest Corporation of Pennsylvania | |||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||||||||
Tax Equivalent Basis | 2017 | 2016 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 43,941 | $ | 133 | 1.20 | % | $ | 16,248 | $ | 14 | 0.34 | % | |||||||||||
U.S. government obligations | 31,126 | 110 | 1.40 | 43,622 | 125 | 1.14 | |||||||||||||||||
Obligations of state and political subdivisions | 81,114 | 846 | 4.14 | 96,581 | 1,030 | 4.24 | |||||||||||||||||
Other debt and equity securities | 347,622 | 1,745 | 1.99 | 363,587 | 1,358 | 1.49 | |||||||||||||||||
Federal funds sold and other earning assets | 28,063 | 375 | 5.30 | 18,987 | 321 | 6.73 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 531,866 | 3,209 | 2.39 | 539,025 | 2,848 | 2.10 | |||||||||||||||||
Commercial, financial, and agricultural loans | 762,418 | 8,656 | 4.50 | 674,569 | 6,571 | 3.88 | |||||||||||||||||
Real estate—commercial and construction loans | 1,549,799 | 17,999 | 4.61 | 1,382,947 | 15,816 | 4.55 | |||||||||||||||||
Real estate—residential loans | 770,839 | 8,751 | 4.50 | 710,814 | 7,887 | 4.41 | |||||||||||||||||
Loans to individuals | 27,509 | 416 | 6.00 | 31,416 | 415 | 5.26 | |||||||||||||||||
Municipal loans and leases | 281,509 | 3,208 | 4.52 | 288,391 | 3,030 | 4.18 | |||||||||||||||||
Lease financings | 75,161 | 1,331 | 7.03 | 76,136 | 1,547 | 8.08 | |||||||||||||||||
Gross loans and leases | 3,467,235 | 40,361 | 4.62 | 3,164,273 | 35,266 | 4.43 | |||||||||||||||||
Total interest-earning assets | 3,999,101 | 43,570 | 4.32 | 3,703,298 | 38,114 | 4.09 | |||||||||||||||||
Cash and due from banks | 46,969 | 40,835 | |||||||||||||||||||||
Reserve for loan and lease losses | (21,425 | ) | (17,110 | ) | |||||||||||||||||||
Premises and equipment, net | 65,025 | 61,361 | |||||||||||||||||||||
Other assets | 326,662 | 359,084 | |||||||||||||||||||||
Total assets | $ | 4,416,332 | $ | 4,147,468 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 438,956 | $ | 132 | 0.12 | $ | 389,079 | $ | 114 | 0.12 | |||||||||||||
Money market savings | 587,590 | 919 | 0.62 | 483,579 | 428 | 0.35 | |||||||||||||||||
Regular savings | 904,528 | 646 | 0.28 | 793,644 | 352 | 0.18 | |||||||||||||||||
Time deposits | 557,757 | 1,371 | 0.98 | 606,561 | 1,187 | 0.78 | |||||||||||||||||
Total time and interest-bearing deposits | 2,488,831 | 3,068 | 0.49 | 2,272,863 | 2,081 | 0.36 | |||||||||||||||||
Short-term borrowings | 72,719 | 169 | 0.92 | 229,282 | 276 | 0.48 | |||||||||||||||||
Long-term debt | 207,057 | 794 | 1.52 | 93,188 | 218 | 0.93 | |||||||||||||||||
Subordinated notes | 94,238 | 1,254 | 5.28 | 94,035 | 1,261 | 5.33 | |||||||||||||||||
Total borrowings | 374,014 | 2,217 | 2.35 | 416,505 | 1,755 | 1.68 | |||||||||||||||||
Total interest-bearing liabilities | 2,862,845 | 5,285 | 0.73 | 2,689,368 | 3,836 | 0.57 | |||||||||||||||||
Noninterest-bearing deposits | 991,487 | 904,197 | |||||||||||||||||||||
Accrued expenses and other liabilities | 34,968 | 47,439 | |||||||||||||||||||||
Total liabilities | 3,889,300 | 3,641,004 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 144,559 | 144,559 | |||||||||||||||||||||
Additional paid-in capital | 231,575 | 229,319 | |||||||||||||||||||||
Retained earnings and other equity | 150,898 | 132,586 | |||||||||||||||||||||
Total shareholders' equity | 527,032 | 506,464 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,416,332 | $ | 4,147,468 | |||||||||||||||||||
Net interest income | $ | 38,285 | $ | 34,278 | |||||||||||||||||||
Net interest spread | 3.59 | 3.52 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.21 | 0.16 | |||||||||||||||||||||
Net interest margin | 3.80 | % | 3.68 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 139.69 | % | 137.70 | % | |||||||||||||||||||
Note 1: In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures determined | |||||||||||||||||||||||
by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered a substitute for GAAP basis | |||||||||||||||||||||||
financial information and measures. Management believes the presentation of the non-GAAP financial information and measures provides useful | |||||||||||||||||||||||
information that is essential to a proper understanding of the financial results of the Corporation. | |||||||||||||||||||||||
Note 2: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and | |||||||||||||||||||||||
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 September 30, 2017 and 2016 have been calculated using the Corporation’s federal applicable rate of 35.0%. |
Univest Corporation of Pennsylvania | |||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
Tax Equivalent Basis | 2017 | 2016 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 23,624 | $ | 188 | 1.06 | % | $ | 14,514 | $ | 51 | 0.47 | % | |||||||||||
U.S. government obligations | 32,862 | 329 | 1.34 | 61,231 | 551 | 1.20 | |||||||||||||||||
Obligations of state and political subdivisions | 83,424 | 2,654 | 4.25 | 99,617 | 3,251 | 4.36 | |||||||||||||||||
Other debt and equity securities | 349,930 | 5,047 | 1.93 | 222,427 | 3,394 | 2.04 | |||||||||||||||||
Federal funds sold and other earning assets | 27,952 | 1,129 | 5.40 | 14,956 | 573 | 5.12 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 517,792 | 9,347 | 2.41 | 412,745 | 7,820 | 2.53 | |||||||||||||||||
Commercial, financial, and agricultural loans | 748,489 | 24,669 | 4.41 | 508,195 | 14,717 | 3.87 | |||||||||||||||||
Real estate—commercial and construction loans | 1,504,024 | 50,368 | 4.48 | 1,057,379 | 35,841 | 4.53 | |||||||||||||||||
Real estate—residential loans | 753,186 | 25,466 | 4.52 | 603,900 | 20,004 | 4.42 | |||||||||||||||||
Loans to individuals | 28,304 | 1,222 | 5.77 | 30,402 | 1,222 | 5.37 | |||||||||||||||||
Municipal loans and leases | 281,347 | 9,513 | 4.52 | 253,925 | 8,378 | 4.41 | |||||||||||||||||
Lease financings | 77,050 | 4,230 | 7.34 | 75,538 | 4,613 | 8.16 | |||||||||||||||||
Gross loans and leases | 3,392,400 | 115,468 | 4.55 | 2,529,339 | 84,775 | 4.48 | |||||||||||||||||
Total interest-earning assets | 3,910,192 | 124,815 | 4.27 | 2,942,084 | 92,595 | 4.20 | |||||||||||||||||
Cash and due from banks | 44,257 | 35,070 | |||||||||||||||||||||
Reserve for loan and lease losses | (20,045 | ) | (17,223 | ) | |||||||||||||||||||
Premises and equipment, net | 65,076 | 49,451 | |||||||||||||||||||||
Other assets | 328,010 | 272,087 | |||||||||||||||||||||
Total assets | $ | 4,327,490 | $ | 3,281,469 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 437,099 | $ | 355 | 0.11 | $ | 380,780 | $ | 273 | 0.10 | |||||||||||||
Money market savings | 560,071 | 2,177 | 0.52 | 394,532 | 1,090 | 0.37 | |||||||||||||||||
Regular savings | 849,629 | 1,441 | 0.23 | 688,630 | 725 | 0.14 | |||||||||||||||||
Time deposits | 565,437 | 3,747 | 0.89 | 467,192 | 2,984 | 0.85 | |||||||||||||||||
Total time and interest-bearing deposits | 2,412,236 | 7,720 | 0.43 | 1,931,134 | 5,072 | 0.35 | |||||||||||||||||
Short-term borrowings | 120,390 | 756 | 0.84 | 103,974 | 599 | 0.77 | |||||||||||||||||
Long-term debt | 185,315 | 1,876 | 1.35 | 31,290 | 218 | 0.93 | |||||||||||||||||
Subordinated notes | 94,177 | 3,776 | 5.36 | 64,395 | 2,609 | 5.41 | |||||||||||||||||
Total borrowings | 399,882 | 6,408 | 2.14 | 199,659 | 3,426 | 2.29 | |||||||||||||||||
Total interest-bearing liabilities | 2,812,118 | 14,128 | 0.67 | 2,130,793 | 8,498 | 0.53 | |||||||||||||||||
Noninterest-bearing deposits | 960,797 | 694,165 | |||||||||||||||||||||
Accrued expenses and other liabilities | 36,581 | 43,163 | |||||||||||||||||||||
Total liabilities | 3,809,496 | 2,868,121 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 144,559 | 121,784 | |||||||||||||||||||||
Additional paid-in capital | 230,793 | 157,334 | |||||||||||||||||||||
Retained earnings and other equity | 142,642 | 134,230 | |||||||||||||||||||||
Total shareholders' equity | 517,994 | 413,348 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,327,490 | $ | 3,281,469 | |||||||||||||||||||
Net interest income | $ | 110,687 | $ | 84,097 | |||||||||||||||||||
Net interest spread | 3.60 | 3.67 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.18 | 0.15 | |||||||||||||||||||||
Net interest margin | 3.78 | % | 3.82 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 139.05 | % | 138.07 | % | |||||||||||||||||||
Note 1: In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures determined | |||||||||||||||||||||||
by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered a substitute for GAAP basis | |||||||||||||||||||||||
financial information and measures. Management believes the presentation of the non-GAAP financial information and measures provides useful | |||||||||||||||||||||||
information that is essential to a proper understanding of the financial results of the Corporation. | |||||||||||||||||||||||
Note 2: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and | |||||||||||||||||||||||
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 nine months ended September 30, 2017 and 2016 have been calculated using the Corporation’s federal applicable rate of 35.0%. |
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