-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F5bq9HtdpQPuim6z1/fNK6AoG5DZ+uf/Vtjx0mCK/9SswVCR5JGL6QsJdd08GKGP XiZFZ1ObsqezOVUUiY7/bA== 0000950123-10-069114.txt : 20100728 0000950123-10-069114.hdr.sgml : 20100728 20100728170239 ACCESSION NUMBER: 0000950123-10-069114 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100728 DATE AS OF CHANGE: 20100728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNIVEST CORP OF PENNSYLVANIA CENTRAL INDEX KEY: 0000102212 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 231886144 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07617 FILM NUMBER: 10974918 BUSINESS ADDRESS: STREET 1: 14 NORTH MAIN STREET STREET 2: P. O. BOX 64197 CITY: SOUDERTON STATE: PA ZIP: 18964 BUSINESS PHONE: 2157212400 MAIL ADDRESS: STREET 1: 14 NORTH MAIN STREET STREET 2: P. O. BOX 64197 CITY: SOUDERTON STATE: PA ZIP: 18964 8-K 1 c03948e8vk.htm FORM 8-K Form 8-K
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 28, 2010
UNIVEST CORPORATION OF PENNSYLVANIA
(Exact name of registrant as specified in its charter)
         
Pennsylvania   0-7617   23-1886144
         
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer Identification No.)
     

14 North Main Street, Souderton, Pennsylvania 		   
18964
     
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: (215) 721-2400
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

Item 2.02 Results of Operations and Financial Condition
The information in this Item 2.02 of this Current Report shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subjected to the liabilities of that Section. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
On July 28, 2010, Univest Corporation of Pennsylvania (the “Corporation”), parent company of Univest National Bank and Trust Co., issued a press release reporting 2010 second quarter earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
         
Exhibit No.   Description of Document
  99.1    
Press release issued by Univest Corporation of Pennsylvania on July 28, 2010.

 

 

 

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  Univest Corporation of Pennsylvania
 		  
  By:   /s/ Jeffrey M. Schweitzer    
    Name:   Jeffrey M. Schweitzer   
    Title:   Executive Vice President and
Chief Financial Officer 		  
July 28, 2010

 

 

 

EXHIBIT INDEX
         
Exhibit No.   Description of Document
       
 
  99.1    
Press release issued by Univest Corporation of Pennsylvania on July 28, 2010.

 

 

EX-99.1 2 c03948exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
         
(COMPANY LOGO)
  CONTACT:   Jeff Schweitzer
UNIVEST CORPORATION
OF PENNSYLVANIA
Chief Financial Officer
215-721-2458,
schweitzerj@univest.net
FOR IMMEDIATE RELEASE
UNIVEST CORPORATION OF PENNSYLVANIA — UNIVEST NATIONAL
BANK AND TRUST CO. — REPORTS SECOND QUARTER EARNINGS
SOUDERTON, Pa., July 28, 2010 — Univest Corporation of Pennsylvania (NASDAQ: UVSP), a locally-owned, full-service financial institution with 134 years of experience in delivering financial solutions including personal and business banking, online banking, residential mortgages, insurance products, investment and wealth advisory solutions today announced financial results for the second quarter. Univest reported net income of $3.7 million or $0.23 diluted earnings per share for the quarter ended June 30, 2010, compared to $3.0 million or $0.18 diluted earnings per share in the previous quarter ended March 31, 2010 and $2.7 million or $0.21 diluted earnings per share for the comparable period in the prior year. Net income for the six months ended June 30, 2010 was $6.7 million or $0.40 diluted earnings per share, compared to $6.5 million or $0.50 diluted earnings per share for the comparable period in the prior year.
Deposits
Total non-time deposits increased $38.4 million during the quarter and have increased $66.4 million year to date. The increase during the second quarter consisted of increases of $9.0 million in non-interest bearing deposits and $29.4 million in NOW, money market and savings accounts. Time deposits remained relatively flat, declining slightly by $1.3 million during the second quarter.
Loans
Gross loans and leases increased by $21.3 million during the quarter. While overall loan demand remains light primarily due to less credit demand and utilization of lines by businesses responding to the current economic environment, there continues to be opportunities due to disruption in Univest’s local markets.

 

 

 

Net Interest Income and Margin
Net interest income increased $1.1 million or 6.42% to $18.3 million in the second quarter of 2010 compared to the second quarter of 2009. The net interest margin on a tax-equivalent basis for the second quarter of 2010 increased 12 basis points to 4.11% from 3.99% for the first quarter ended March 31, 2010, and 24 basis points compared to 3.87% for the second quarter of 2009.
Net interest income of $35.4 million increased $1.9 million or 5.56% compared to the six months ended June 30, 2009. The net interest margin on a tax-equivalent basis for the six months ended June 30, 2010 increased 23 basis points to 4.05% from 3.82% for the six months ended June 30, 2009.
The increase in the net interest income and the net interest margin for the quarter and year to date can be attributed to declines in the cost of interest-bearing liabilities, primarily time deposits and Federal Home Loan Bank (FHLB) borrowings, exceeding the declines in yields on total interest-earning assets. The Corporation has continued to experience core deposit growth which has allowed the Corporation to continue to repay its maturing FHLB advances reducing FHLB advances from $92 million at December 31, 2009 to $54 million at June 30, 2010. All but $5 million of the Corporation’s FHLB advances are scheduled to mature in 2010.
Non-Interest Income
Total non-interest income increased 2.98% for the quarter ended June 30, 2010 compared to the quarter ended June 30, 2009. For the quarter ended June 30, 2010, Univest reported total non-interest income of $8.1 million compared to $7.8 million for the comparable period in the prior year. Non-interest income during the quarter ended June 30, 2010 was negatively impacted by $516 thousand related to a fair value write-down on the ineffective portion of a fair value swap, due to the decline in interest rates during the quarter, compared to income of $285 thousand in the second quarter of 2009 related to the swap. Additionally, the second quarter of 2009 was impacted by $223 thousand of other than temporary impairments on the Corporation’s bank equity portfolio. For the quarter ended June 30, 2010, other than temporary impairments declined to $42 thousand. Excluding these non-cash items, total non-interest income increased 10.99% or $853 thousand compared to the second quarter ended June 30, 2009. This is attributed to increased trust fee income, service charges on deposits due to the growth in deposits and strong investment advisory commission and fee income.
Total non-interest income for the six months ended June 30, 2010 increased $2.3 million compared to the six months ended June 30, 2009, due to increased income from trust fees, service charges on deposit accounts, investment advisory commissions and fees and insurance commissions and fees offset by fair value write-downs on the ineffective portion of a fair value swap for the six months ended June 30, 2010 of $826 thousand compared to income related to this swap of $281 thousand recorded in the comparable period in the prior year. Additionally, the six months ended June 30, 2009 was impacted by $1.4 million of other than temporary impairments on bank equity securities compared to $47 thousand of other than temporary impairments recorded in the six months ended June 30, 2010. Excluding these non-cash write-downs and impairments, non-interest income increased $2.0 million or 13.36% for the six months ended June 30, 2010 compared to 2009.

 

 

 

Non-Interest Expense
Non-interest expense for the second quarter of 2010 increased slightly compared to the second quarter of 2009 by $119 thousand. The second quarter of 2009 was impacted by the FDIC special assessment which impacted all banks and cost Univest $947 thousand. Excluding this charge, non-interest expense increased $1.1 million or 6.73% compared to the second quarter in the prior year primarily due to increased FDIC insurance expense of $133 thousand and increased advertising and marketing expenses of $600 thousand to support a major brand campaign to position the Corporation to take advantage of the disruption in its local markets.
For the six months ended June 30, 2010, non-interest expenses increased $1.7 million or 5.25% compared to the same period in the prior year. Excluding the FDIC special assessment discussed previously, non-interest expenses for the six months ended June 30, 2010 increased $2.6 million or 8.43% primarily due to increased FDIC insurance expense of $147 thousand, increased advertising and marketing expenses of $1.1 million for the brand campaign discussed earlier, and increased salaries and benefits expenses of $431 thousand due to investments in personnel to grow the Corporation’s mortgage banking and commercial lending capabilities. Other increases occurred as a result of increased audit expense and legal fees for nonperforming loan activity.
Asset Quality and Provision for Loan and Lease Losses
Nonaccrual loans and leases decreased $5.3 million during the second quarter and were $29.5 million at June 30, 2010 compared to $34.9 million at March 31, 2010 and $5.8 million at June 30, 2009. Nonperforming loans and leases as a percentage of total loans and leases equaled 2.23% at June 30, 2010 down from 2.58% at March 31, 2010. The provision for loan and lease losses was $4.9 million for both the second and first quarters of 2010 compared to $5.4 million for the quarter ended June 30, 2009. The allowance for loan and lease losses as a percentage of total loans and leases increased to 2.01% at June 30, 2010 from 1.90% at March 31, 2010 as the provision for loan and lease losses exceeded net-charge-offs by $2.0 million. The allowance for loan and lease losses was 1.29% at June 30, 2009. The allowance for loan and lease losses to nonperforming loans and leases equaled 90.08% at June 30, 2010, which increased from 73.45% at March 31, 2010, due to the decrease in nonperforming loans and leases. The allowance for loan and lease losses to nonperforming loans and leases was 172.30% at June 30, 2009.

 

 

 

Capital
Univest continues to remain well-capitalized at June 30, 2010. Univest’s total risk-based capital at June 30, 2010 was 15.58%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.
Dividend
On July 1, 2010, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.66% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.
About Univest Corporation
Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania (www.univest.net) and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, Montgomery and Lehigh counties. Univest National Bank and Trust Co., member FDIC and Equal Housing Lender, offers customers 32 financial service centers, 12 retirement financial services centers, and 39 ATM locations throughout the region, and is the parent company of Univest Capital, Inc., a small ticket commercial finance business; Univest Insurance, Inc., an independent insurance agency headquartered in Lansdale, Pa., which serves commercial and personal customers; and Univest Investments, Inc., Member FINRA and SIPC, a full-service broker-dealer and investment advisory firm. For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visit www.univest.net.
# # #
This press release of Univest Corporation and the reports Univest Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Univest Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest Corporation is engaged; (6) technological issues which may adversely affect Univest Corporation’s financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation files with the Securities and Exchange Commission. Univest Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2010
(Dollars in thousands)
                                                         
Balance Sheet (Period End)   06/30/10     03/31/10     12/31/09     09/30/09     06/30/09          
Assets
   $ 2,088,572     $ 2,064,822     $ 2,085,421     $ 2,117,849     $ 2,086,821                  
Securities
     434,677       436,368       420,045       472,491       425,774                  
Loans held for sale
     2,485       1,165       1,693       1,439       1,119                  
Loans and leases, gross
     1,449,147       1,427,805       1,425,980       1,451,128       1,464,886                  
Allowance for loan and lease losses
     29,109       27,065       24,798       21,945       18,824                  
Loans and leases, net
     1,420,038       1,400,740       1,401,182       1,429,183       1,446,062                  
Total deposits
     1,609,772       1,572,681       1,564,257       1,536,903       1,565,076                  
Non-interest bearing deposits
     255,880       246,909       242,691       226,395       222,877                  
NOW, Money Market and Savings
     924,242       894,799       871,024       812,122       833,825                  
Time deposits
     429,650       430,973       450,542       498,386       508,374                  
Borrowings
     171,824       187,637       214,063       267,821       265,457                  
Shareholders’ equity
     269,524       267,850       267,807       268,052       208,358                  
 
    For the three months ended,     For the six months ended,  
Balance Sheet (Average)   06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     06/30/10     06/30/09  
Assets
   $ 2,090,930     $ 2,038,739     $ 2,096,945     $ 2,098,964     $ 2,077,565     $ 2,064,970     $ 2,068,700  
Securities
     442,902       409,188       454,096       447,925       413,142       426,138       416,550  
Loans and leases, gross
     1,425,278       1,420,830       1,438,880       1,456,446       1,471,243       1,423,066       1,458,768  
Deposits
     1,606,621       1,537,676       1,553,308       1,547,436       1,560,317       1,572,338       1,558,152  
Shareholders’ equity
     269,902       269,030       267,645       240,267       208,321       269,469       206,443  
                                                         
Asset Quality Data (Period End)   06/30/10     03/31/10     12/31/09     09/30/09     06/30/09          
Nonaccrual loans and leases
   $ 29,541     $ 34,856     $ 33,498     $ 33,116     $ 5,762          
Accruing loans and leases 90 days or more past due
     1,276       303       726       644       1,839                  
Troubled debt restructured
     1,499       1,691       3,611       3,216       3,324                  
Other real estate owned
     1,827       2,453       3,428       3,330       2,812                  
Nonperforming assets
     34,143       39,303       41,263       40,306       13,737                  
Allowance for loan and lease losses
     29,109       27,065       24,798       21,945       18,824                  
Nonperforming loans and leases / Loans and leases
     2.23 %     2.58 %     2.65 %     2.55 %     0.75 %                
Allowance for loan and lease losses / Loans and leases
     2.01 %     1.90 %     1.74 %     1.51 %     1.29 %                
Allowance for loan and lease losses / Nonperforming loans
     90.08 %     73.45 %     65.54 %     59.35 %     172.30 %                
                                                         
    For the three months ended,     For the six months ended,  
    06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     06/30/10     06/30/09  
Net loan and lease charge-offs
   $ 2,821     $ 2,628     $ 4,595     $ 2,807     $ 1,249     $ 5,449     $ 1,802  
Net loan and lease charge-offs (annualized)/Average loans and leases
     0.79 %     0.75 %     1.27 %     0.76 %     0.34 %     0.77 %     0.25 %

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2010
(Dollars in thousands, except per share data)
                                                         
    For the three months ended,     For the six months ended,  
For the period:   06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     06/30/10     06/30/09  
Interest income
   $ 22,878     $ 22,485     $ 23,184     $ 24,244     $ 24,529     $ 45,363     $ 48,931  
Interest expense
     4,602       5,380       6,409       6,901       7,356       9,982       15,413  
 
                                          
Net interest income
     18,276       17,105       16,775       17,343       17,173       35,381       33,518  
Provision for loan and lease losses
     4,865       4,895       7,449       5,928       5,353       9,760       7,509  
 
                                          
Net interest income after provision
     13,411       12,210       9,326       11,415       11,820       25,621       26,009  
Noninterest income:
                                                        
Trust fee income
     1,500       1,500       1,461       1,325       1,325       3,000       2,750  
Service charges on deposit accounts
     1,812       1,782       1,986       1,745       1,692       3,594       3,305  
Investment advisory commission and fee income
     1,152       1,056       1,025       876       766       2,208       1,526  
Insurance commissions and fee income
     1,896       2,243       1,514       1,470       1,964       4,139       4,097  
Bank owned life insurance income
     202       332       351       405       408       534       565  
Other-than-temporary impairment
     (42 )     (5 )     (761 )     (47 )     (223 )     (47 )     (1,400 )
Net gain (loss) on sales of securities
     38       49       1,023       112       (22 )     87       15  
Gain on sales of loans held for sale
     278       360       891       401       669       638       930  
Other income
     1,223       890       1,329       811       1,247       2,113       2,212  
 
                                          
Total noninterest income
     8,059       8,207       8,819       7,098       7,826       16,266       14,000  
Noninterest expense
                                                        
Salaries and benefits
     9,469       9,811       9,755       8,818       9,417       19,280       18,849  
Premises and equipment
     2,209       2,292       2,138       2,216       2,125       4,501       4,358  
Deposit insurance premiums
     663       597       599       526       1,477       1,260       2,060  
Other expense
     4,568       4,379       4,976       4,003       3,771       8,947       7,026  
 
                                          
Total noninterest expense
     16,909       17,079       17,468       15,563       16,790       33,988       32,293  
 
                                          
Income before taxes
     4,561       3,338       677       2,950       2,856       7,899       7,716  
Applicable income taxes
     831       368       (845 )     197       187       1,199       1,211  
 
                                          
Net income
   $ 3,730     $ 2,970     $ 1,522     $ 2,753     $ 2,669     $ 6,700     $ 6,505  
 
                                          
 
                                                        
Per Common Share Data:
                                                        
Book value per share
   $ 16.25     $ 16.17     $ 16.27     $ 16.30     $ 16.00     $ 16.25     $ 16.00  
Net income per share:
                                                        
Basic
   $ 0.23     $ 0.18     $ 0.09     $ 0.19     $ 0.21     $ 0.40     $ 0.50  
Diluted
   $ 0.23     $ 0.18     $ 0.09     $ 0.19     $ 0.21     $ 0.40     $ 0.50  
Dividends per share
   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.40     $ 0.40  
Weighted average shares outstanding
     16,589,657       16,535,461       16,464,824       13,635,961       13,023,148       16,562,712       13,000,406  
Period end shares outstanding
     16,590,710       16,561,807       16,465,083       16,442,021       13,023,704       16,590,710       13,023,704  

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2010
                                                         
    For the three months ended,     For the six months ended,  
    06/30/10     03/31/10     12/31/09     09/30/09     06/30/09     06/30/10     06/30/09  
Profitability Ratios (annualized)
                                                        
Return on average assets
     0.72 %     0.59 %     0.29 %     0.52 %     0.52 %     0.65 %     0.63 %
Return on average shareholders’ equity
     5.54 %     4.48 %     2.26 %     4.55 %     5.14 %     5.01 %     6.35 %
Net interest margin (FTE)
     4.11 %     3.99 %     3.69 %     3.82 %     3.87 %     4.05 %     3.82 %
Efficiency ratio (1)
     61.32 %     64.33 %     65.36 %     60.58 %     63.96 %     62.80 %     64.78 %
 
                                                        
Capitalization Ratios
                                                        
 
                                                        
Dividends paid to net income
     88.95 %     111.55 %     216.43 %     119.47 %     97.60 %     98.97 %     80.00 %
Shareholders’ equity to assets (Period End)
     12.90 %     12.97 %     12.84 %     12.66 %     9.98 %     12.90 %     9.98 %
Tangible common equity to tangible assets
     10.51 %     10.55 %     10.44 %     10.28 %     7.49 %     10.51 %     7.49 %
 
                                                        
Regulatory Capital Ratios (Period End)
                                                        
Tier 1 leverage ratio
     11.57 %     11.82 %     11.46 %     11.51 %     8.86 %     11.57 %     8.86 %
Tier 1 risk-based capital ratio
     14.25 %     14.44 %     14.41 %     14.12 %     10.65 %     14.25 %     10.65 %
Total risk-based capital ratio
     15.58 %     15.78 %     15.76 %     15.47 %     11.89 %     15.58 %     11.89 %
     
(1)   Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income.

 

 

 

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential
                                                 
    For the Three Months Ended June 30,  
    2010     2009  
    Average     Income/     Average     Average     Income/     Average  
Tax Equivalent Basis   Balance     Expense     Rate     Balance     Expense     Rate  
Assets:
                                                
Interest-earning deposits with other banks
   $ 26,700     $ 19       0.29 %   $ 3,399     $ 2       0.24 %
U.S. Government obligations
     158,505       922       2.33       98,532       782       3.18  
Obligations of state and political subdivisions
     108,820       1,804       6.65       104,606       1,760       6.75  
Other debt and equity securities
     175,577       1,932       4.41       210,004       2,640       5.04  
Federal funds sold
     —       —       —       —       —       —  
 
                                    
 
                                                
Total interest-earning deposits, investments and federal funds sold
     469,602       4,677       3.99       416,541       5,184       4.99  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     415,943       4,892       4.72       414,482       4,652       4.50  
Real estate—commercial and construction loans
     523,306       7,752       5.94       525,984       8,039       6.13  
Real estate—residential loans
     256,296       2,785       4.36       298,370       3,472       4.67  
Loans to individuals
     46,185       599       5.20       50,950       851       6.70  
Municipal loans and leases
     104,720       1,564       5.99       88,916       1,379       6.22  
Lease financings
     78,828       1,742       8.86       92,541       1,987       8.61  
 
                                    
Gross loans and leases
     1,425,278       19,334       5.44       1,471,243       20,380       5.56  
 
                                        
Total interest-earning assets
     1,894,880       24,011       5.08       1,887,784       25,564       5.43  
 
                                        
Cash and due from banks
     37,510                       30,633                  
Reserve for loan losses
     (28,864 )                     (15,897 )                
Premise and equipment, net
     35,002                       33,254                  
Other assets
     152,402                       141,791                  
 
                                            
Total assets
   $ 2,090,930                     $ 2,077,565                  
 
                                            
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 182,156     $ 62       0.14     $ 165,642     $ 55       0.13  
Money market savings
     293,697       277       0.38       314,554       403       0.51  
Regular savings
     445,781       661       0.59       343,838       718       0.84  
Time deposits
     435,969       2,588       2.38       514,667       4,530       3.53  
 
                                    
Total time and interest-bearing deposits
     1,357,603       3,588       1.06       1,338,701       5,706       1.71  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     98,802       111       0.45       85,919       143       0.67  
Other short-term borrowings
     51,936       542       4.19       99,968       681       2.73  
Long-term debt
     5,717       48       3.37       57,350       501       3.50  
Subordinated notes and capital securities
     25,119       313       5.00       26,619       325       4.90  
 
                                    
Total borrowings
     181,574       1,014       2.24       269,856       1,650       2.45  
 
                                        
Total interest-bearing liabilities
     1,539,177       4,602       1.20       1,608,557       7,356       1.83  
 
                                        
Demand deposits, non-interest bearing
     249,018                       221,616                  
Accrued expenses and other liabilities
     32,833                       39,071                  
 
                                            
Total liabilities
     1,821,028                       1,869,244                  
 
                                            
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       74,370                  
Capital surplus
     61,420                       22,784                  
Retained earnings and other equity
     117,150                       111,167                  
 
                                            
Total shareholders’ equity
     269,902                       208,321                  
 
                                            
Total liabilities and shareholders’ equity
   $ 2,090,930                     $ 2,077,565                  
 
                                            
Net interest income
           $ 19,409                     $ 18,208          
 
                                            
 
                                                
Net interest spread
                     3.88                       3.60  
Effect of net interest-free funding sources
                     0.23                       0.27  
 
                                            
Net interest margin
                     4.11 %                     3.87 %
 
                                            
 
                                                
Ratio of average interest-earning assets to average interest-bearing liabilities equity
     123.11 %                     117.36 %                
 
                                            
     
Notes:   For rate calculation purposes, average loan and lease categories include 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 June 30, 2010 and 2009 have been calculated using the Corporation’s federal applicable rate of 35.0%.

 

 

 

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential
                                                 
    For the Six Months Ended June 30,  
    2010     2009  
    Average     Income/     Average     Average     Income/     Average  
Tax Equivalent Basis   Balance     Expense     Rate     Balance     Expense     Rate  
Assets:
                                                
Interest-earning deposits with other banks
   $ 20,531     $ 30       0.29 %   $ 3,366     $ 5       0.30 %
U.S. Government obligations
     136,457       1,664       2.46       96,698       1,764       3.68  
Obligations of state and political subdivisions
     107,733       3,542       6.63       102,540       3,472       6.83  
Other debt and equity securities
     181,948       3,953       4.38       217,312       5,474       5.08  
Federal funds sold
     —       —       —       116       —       —  
 
                                        
 
                                                
Total interest-earning deposits, investments and federal funds sold
     446,669       9,189       4.15       420,032       10,715       5.14  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     412,820       9,557       4.67       405,355       9,219       4.59  
Real estate—commercial and construction loans
     523,693       15,313       5.90       514,113       15,317       6.01  
Real estate—residential loans
     258,615       5,643       4.40       304,613       7,190       4.76  
Loans to individuals
     46,843       1,397       6.01       52,106       1,792       6.94  
Municipal loans and leases
     101,104       2,990       5.96       87,416       2,693       6.21  
Lease financings
     79,991       3,465       8.74       95,165       4,031       8.54  
 
                                    
Gross loans and leases
     1,423,066       38,365       5.44       1,458,768       40,242       5.56  
 
                                        
Total interest-earning assets
     1,869,735       47,554       5.13       1,878,800       50,957       5.47  
 
                                        
Cash and due from banks
     34,582                       30,907                  
Reserve for loan losses
     (27,728 )                     (14,789 )                
Premise and equipment, net
     34,931                       32,877                  
Other assets
     153,450                       140,905                  
 
                                            
Total assets
   $ 2,064,970                     $ 2,068,700                  
 
                                            
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 177,095     $ 119       0.14     $ 160,424     $ 142       0.18  
Money market savings
     286,843       593       0.42       321,129       1,047       0.66  
Regular savings
     430,940       1,442       0.67       331,734       1,497       0.91  
Time deposits
     435,072       5,654       2.62       528,156       9,432       3.60  
 
                                    
Total time and interest-bearing deposits
     1,329,950       7,808       1.18       1,341,443       12,118       1.82  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     97,330       228       0.47       80,745       261       0.65  
Other short-term borrowings
     61,547       1,227       4.02       87,435       1,042       2.40  
Long-term debt
     5,732       94       3.31       70,585       1,339       3.83  
Subordinated notes and capital securities
     25,305       625       4.98       26,808       653       4.91  
 
                                    
Total borrowings
     189,914       2,174       2.31       265,573       3,295       2.50  
 
                                        
Total interest-bearing liabilities
     1,519,864       9,982       1.32       1,607,016       15,413       1.93  
 
                                        
Demand deposits, non-interest bearing
     242,388                       216,709                  
Accrued expenses and other liabilities
     33,249                       38,532                  
 
                                            
Total liabilities
     1,795,501                       1,862,257                  
 
                                            
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       74,370                  
Capital surplus
     61,420                       22,789                  
Retained earnings and other equity
     116,717                       109,284                  
 
                                            
Total shareholders’ equity
     269,469                       206,443                  
 
                                            
Total liabilities and shareholders’ equity
   $ 2,064,970                     $ 2,068,700                  
 
                                            
Net interest income
           $ 37,572                     $ 35,544          
 
                                            
 
                                                
Net interest spread
                     3.81                       3.54  
Effect of net interest-free funding sources
                     0.24                       0.28  
 
                                    
 
                                              
Net interest margin
                     4.05 %                     3.82 %
 
                                            
 
                                                
Ratio of average interest-earning assets to average interest-bearing liabilities equity
     123.02 %                     116.91 %                
 
                                            
     
Notes:   For rate calculation purposes, average loan and lease categories include 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 six months ended June 30, 2010 and 2009 have been calculated using the Corporation’s federal applicable rate of 35.0%.

 

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