EX-99.1 2 c07350exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
     
NEWS   (UNIVEST 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 THIRD QUARTER EARNINGS
SOUDERTON, Pa., October 27, 2010 — Univest Corporation of Pennsylvania (NASDAQ: UVSP), a 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 third quarter. Univest reported net income of $4.1 million or $0.25 diluted earnings per share for the quarter ended September 30, 2010, compared to $3.7 million or $0.23 diluted earnings per share in the previous quarter ended June 30, 2010 and $2.8 million or $0.19 diluted earnings per share for the comparable period in the prior year. Net income for the nine months ended September 30, 2010 was $10.8 million or $0.65 diluted earnings per share, compared to $9.3 million or $0.68 diluted earnings per share for the comparable period in the prior year.
Deposits
Total deposits increased $67.8 million during the quarter and have increased $113.4 million year to date. The increase during the third quarter, which was driven by increases in municipal deposits due to the continued disruption in the Corporation’s local markets, consisted of increases of $16.9 million in non-interest bearing deposits, $45.0 million in NOW, money market and savings accounts and $5.9 million in time deposits.
Loans
Gross loans and leases increased by $18.2 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, Univest continues to secure new loan opportunities due to disruption in its local markets.
Net Interest Income and Margin
Net interest income increased $1.6 million or 9.28% to $19 million in the third quarter of 2010 compared to the third quarter of 2009. The net interest margin on a tax-equivalent basis for the third quarter of 2010 increased four basis points to 4.15% from 4.11% for the second quarter ended June 30, 2010, and 33 basis points compared to 3.82% for the third quarter of 2009.

 

 

 

Net interest income of $54.3 million increased $3.5 million or 6.83% compared to the nine months ended September 30, 2009. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2010 increased 26 basis points to 4.08% from 3.82% for the nine months ended September 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 maturities of 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 $14 million at September 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 by $1.8 million or 25.16% to $8.9 million for the quarter ended September 30, 2010, compared to $7.1 million for the quarter ended September 30, 2009. The increase was due to increased investment advisory commission and fee income of $351 thousand; increased insurance commission and fee income of $345 thousand and higher gains on mortgage banking activities of $860 thousand, which was slightly offset by mortgage servicing rights impairment of $412 thousand which is reflected in other income. In addition, there was a loss of $246 thousand related to a fair value write-down on an interest rate swap for a commercial real estate loan, due to the decline in interest rates during the quarter. The swap was terminated during August 2010 due to the forecasted low interest rate environment.
Non-interest income was negatively impacted during the third quarter of 2010 as a result of the challenging economic climate and increased regulatory requirements. The implementation on August 15, 2010 of Regulation E, which requires customers to opt-in for overdraft protection on debit card and point of sale transactions led to a decline in Univest’s service charges on deposit accounts. Since August 15, Univest has experienced nearly a 20% decline in weekly insufficient fund fee income as a result of this new industry requirement. For the quarter ended September 30, 2010, service charges on deposit accounts declined $112 thousand from the comparable quarter ended September 30, 2009, primarily due to Regulation E.
Total non-interest income for the nine months ended September 30, 2010 increased $4.1 million or 19.21% compared to the nine months ended September 30, 2009, due to increased income from trust fees, investment advisory commissions and fees, insurance commissions and fees, mortgage banking activities, higher gains on sales of securities and other income which was primarily due to increases in interchange fee income. These increases were partially offset by mortgage servicing rights impairments of $418 thousand for the nine months ended September 30, 2010 and a loss of $1.1 million related to a fair value adjustment on an interest rate

 

 

 

swap for a commercial real estate loan, due to the decline in interest rates during 2010 up to the termination date of this swap. The Corporation recorded a gain of $194 thousand related to this swap for the nine months ended September 30, 2009. Additionally, the nine months ended September 30, 2009 was impacted by $1.4 million of other than temporary impairments on bank equity securities compared to $59 thousand of other than temporary impairments recorded in the nine months ended September 30, 2010. Excluding these non-cash write-downs and impairments, non-interest income increased $4.3 million or 19.01% for the nine months ended September 30, 2010 compared to 2009.
Non-Interest Expense
Non-interest expense for the third quarter of 2010 increased $1.6 million or 10.33% compared to the third quarter of 2009. Salaries and benefit expense increased $957 thousand during the three months ended September 30, 2010 compared to the same period in 2009, mainly due to additional personnel to grow the commercial lending and mortgage banking businesses and higher restricted stock expense, partially offset by reduced pension plan expenses as a result of the Corporation’s conversion to a cash balance plan effective December 31, 2009. Deposit insurance premiums increased $172 thousand for the three months ended September 30, 2010 mainly due to the growth in deposits. Other expenses increased primarily due to increased legal fees resulting from non-performing loan activity and increased audit expenses. The Corporation continues to prudently manage expenses while making investments in its lines of business as evidenced by the decline in the Corporation’s efficiency ratio to 58.88% for the third quarter of 2010.
For the nine months ended September 30, 2010, non-interest expenses increased $3.3 million or 6.90% compared to the same period in the prior year. Salaries and benefits increased $1.4 million for the nine months ended September 30, 2010 compared to the same period in 2009 primarily due to additional personnel to grow the commercial lending and mortgage banking businesses and higher restricted stock expense partially offset by reduced pension plan expenses. Deposit insurance premiums for the nine-month period ended September 30, 2010 decreased $628 thousand primarily due to the FDIC special assessment which affected all banks and resulted in an additional charge of $947 thousand to the Corporation in the second quarter of 2009 partially offset by higher deposit insurance premiums in 2010 as a result of the deposit growth. Other expenses increased primarily due to increased legal fees resulting from non-performing loan activity and increased audit expenses. Marketing and advertising expenses increased $1.1 million during the nine months ended September 30, 2010 primarily to support a major brand campaign to position the Corporation to take advantage of the disruption in its markets.
Asset Quality and Provision for Loan and Lease Losses
Nonaccrual loans and leases increased $3.5 million during the third quarter to $33.0 million compared to $29.5 million at June 30, 2010, but decreased by $73 thousand year over year. Nonperforming loans and leases as a percentage of total loans and leases equaled 2.37% at September 30, 2010 slightly up from 2.23% at June 30, 2010. While the provision for loan and lease losses increased during the quarter $664 thousand and $1.9 million for the nine months ended September 30, 2010 from the comparable period in 2009 due to the migration of loans to higher risk ratings as a result of deterioration of underlying collateral and economic factors, the quarterly provision has declined compared to the same period in 2009 by $399 thousand.

 

 

 

The allowance for loan and lease losses as a percentage of total loans and leases decreased to 1.97% at September 30, 2010 from 2.01% at June 30, 2010 as a result of charge-offs that occurred during the quarter. The increase in net charge-offs were due to the prolonged down economic cycle and were not concentrated in any one loan type. The allowance for loan and lease losses to nonperforming loans and leases was 83.10% at September 30, 2010, which decreased from 90.08% at June 30, 2010, due to the increase in nonperforming loans and leases. The allowance for loan and lease losses to nonperforming loans and leases was 59.35% at September 30, 2009.
Capital
Univest continues to remain well-capitalized at September 30, 2010. Univest’s total risk-based capital at September 30, 2010 was 15.45%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.
Dividend
On October 1, 2010, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.56% 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 38 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
September 30, 2010
(Dollars in thousands)
                                         
Balance Sheet (Period End)   09/30/10     06/30/10     03/31/10     12/31/09     09/30/09  
Assets
   $ 2,114,204     $ 2,088,572     $ 2,064,822     $ 2,085,421     $ 2,117,849  
Securities
     420,998       434,677       436,368       420,045       472,491  
Loans held for sale
     3,801       2,485       1,165       1,693       1,439  
Loans and leases, gross
     1,467,382       1,449,147       1,427,805       1,425,980       1,451,128  
Allowance for loan and lease losses
     28,883       29,109       27,065       24,798       21,945  
Loans and leases, net
     1,438,499       1,420,038       1,400,740       1,401,182       1,429,183  
Total deposits
     1,677,641       1,609,772       1,572,681       1,564,257       1,536,903  
Non-interest bearing deposits
     272,805       255,880       246,909       242,691       226,395  
NOW, Money Market and Savings
     969,254       924,242       894,799       871,024       812,122  
Time deposits
     435,582       429,650       430,973       450,542       498,386  
Borrowings
     128,905       171,824       187,637       214,063       267,821  
Shareholders’ equity
     270,773       269,524       267,850       267,807       268,052  
                                                         
    For the three months ended,     For the nine months ended,  
Balance Sheet (Average)   09/30/10     06/30/10     03/31/10     12/31/09     09/30/09     09/30/10     09/30/09  
Assets
   $ 2,117,708     $ 2,090,930     $ 2,038,739     $ 2,096,945     $ 2,098,964     $ 2,082,742     $ 2,078,899  
Securities
     431,193       442,902       409,188       454,096       447,925       427,842       427,123  
Loans and leases, gross
     1,459,820       1,425,278       1,420,830       1,438,880       1,456,462       1,435,451       1,457,991  
Deposits
     1,642,613       1,606,621       1,537,676       1,553,308       1,547,436       1,596,021       1,554,542  
Shareholders’ equity
     271,045       269,902       269,030       267,645       240,267       270,000       217,841  
                                         
Asset Quality Data (Period End)   09/30/10     06/30/10     03/31/10     12/31/09     09/30/09  
Nonaccrual loans and leases
   $ 33,043     $ 29,541     $ 34,856     $ 33,498     $ 33,116  
Accruing loans and leases 90 days or more past due
     899       1,276       303       726       644  
Troubled debt restructured
     813       1,499       1,691       3,611       3,216  
Other real estate owned
     1,557       1,827       2,453       3,428       3,330  
Nonperforming assets
     36,312       34,143       39,303       41,263       40,306  
Allowance for loan and lease losses
     28,883       29,109       27,065       24,798       21,945  
Nonperforming loans and leases / Loans and leases
     2.37 %     2.23 %     2.58 %     2.65 %     2.55 %
Allowance for loan and lease losses / Loans and leases
     1.97 %     2.01 %     1.90 %     1.74 %     1.51 %
Allowance for loan and lease losses / Nonperforming loans
     83.10 %     90.08 %     73.45 %     65.54 %     59.35 %
                                                         
    For the three months ended,     For the nine months ended,  
    09/30/10     06/30/10     03/31/10     12/31/09     09/30/09     09/30/10     09/30/09  
Net loan and lease charge-offs
   $ 5,755     $ 2,821     $ 2,628     $ 4,595     $ 2,807     $ 11,204     $ 4,610  
Net loan and lease charge-offs (annualized)/Average loans and leases
     1.56 %     0.79 %     0.75 %     1.27 %     0.76 %     1.04 %     0.42 %

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2010
(Dollars in thousands, except per share data)
                                                         
    For the three months ended,     For the nine months ended,  
For the period:   09/30/10     06/30/10     03/31/10     12/31/09     09/30/09     09/30/10     09/30/09  
Interest income
   $ 23,060     $ 22,878     $ 22,485     $ 23,184     $ 24,244     $ 68,423     $ 73,175  
Interest expense
     4,107       4,602       5,380       6,409       6,901       14,089       22,314  
 
                                          
Net interest income
     18,953       18,276       17,105       16,775       17,343       54,334       50,861  
Provision for loan and lease losses
     5,529       4,865       4,895       7,449       5,928       15,289       13,437  
 
                                          
Net interest income after provision
     13,424       13,411       12,210       9,326       11,415       39,045       37,424  
Noninterest income:
                                                        
Trust fee income
     1,450       1,500       1,500       1,461       1,325       4,450       4,075  
Service charges on deposit accounts
     1,633       1,812       1,782       1,986       1,745       5,227       5,050  
Investment advisory commission and fee income
     1,227       1,152       1,056       1,025       876       3,435       2,402  
Insurance commissions and fee income
     1,815       1,896       2,243       1,514       1,470       5,954       5,567  
Bank owned life insurance income
     326       202       332       351       405       860       970  
Other-than-temporary impairment
     (12 )     (42 )     (5 )     (761 )     (47 )     (59 )     (1,447 )
Net gain (loss) on sales of securities
     339       38       49       1,023       112       426       127  
Net gain on mortgage banking activities
     1,246       475       460       847       386       2,181       1,531  
Net (loss) gain on interest rate swap
     (246 )     (516 )     (310 )     447       (87 )     (1,072 )     194  
Other income
     1,106       1,542       1,100       926       913       3,748       2,629  
 
                                          
Total noninterest income
     8,884       8,059       8,207       8,819       7,098       25,150       21,098  
Noninterest expense
                                                        
Salaries and benefits
     9,775       9,469       9,811       9,755       8,818       29,055       27,667  
Premises and equipment
     2,435       2,209       2,292       2,138       2,216       6,936       6,574  
Deposit insurance premiums
     698       663       597       599       526       1,958       2,586  
Other expense
     4,263       4,568       4,379       4,976       4,003       13,210       11,029  
 
                                          
Total noninterest expense
     17,171       16,909       17,079       17,468       15,563       51,159       47,856  
 
                                          
Income before taxes
     5,137       4,561       3,338       677       2,950       13,036       10,666  
Applicable income taxes
     990       831       368       (845 )     197       2,189       1,408  
 
                                          
Net income
   $ 4,147     $ 3,730     $ 2,970     $ 1,522     $ 2,753     $ 10,847     $ 9,258  
 
                                          
 
                                                        
Per Common Share Data:
                                                        
Book value per share
   $ 16.29     $ 16.25     $ 16.17     $ 16.27     $ 16.30     $ 16.29     $ 16.30  
Net income per share:
                                                        
Basic
   $ 0.25     $ 0.23     $ 0.18     $ 0.09     $ 0.19     $ 0.65     $ 0.68  
Diluted
   $ 0.25     $ 0.23     $ 0.18     $ 0.09     $ 0.19     $ 0.65     $ 0.68  
Dividends per share
   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.60     $ 0.60  
Weighted average shares outstanding
     16,621,291       16,589,657       16,535,461       16,464,824       14,873,152       16,582,493       13,635,961  
Period end shares outstanding
     16,626,900       16,590,710       16,561,807       16,465,083       16,442,021       16,626,900       16,442,021  

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2010
                                                         
    For the three months ended,     For the nine months ended,  
    09/30/10     06/30/10     03/31/10     12/31/09     09/30/09     09/30/10     09/30/09  
Profitability Ratios (annualized)
                                                        
 
                                                        
Return on average assets
     0.78 %     0.72 %     0.59 %     0.29 %     0.52 %     0.70 %     0.60 %
Return on average shareholders’ equity
     6.07 %     5.54 %     4.48 %     2.26 %     4.55 %     5.37 %     5.68 %
Net interest margin (FTE)
     4.15 %     4.11 %     3.99 %     3.69 %     3.82 %     4.08 %     3.82 %
Efficiency ratio (1)
     58.88 %     61.32 %     64.33 %     65.35 %     60.58 %     61.42 %     63.35 %
 
                                                        
Capitalization Ratios
                                                        
 
                                                        
Dividends paid to net income
     80.15 %     88.95 %     111.55 %     216.43 %     119.47 %     91.78 %     91.74 %
Shareholders’ equity to assets (Period End)
     12.81 %     12.90 %     12.97 %     12.84 %     12.66 %     12.81 %     12.66 %
Tangible common equity to tangible assets
     10.46 %     10.51 %     10.55 %     10.44 %     10.28 %     10.46 %     10.28 %
 
                                                        
Regulatory Capital Ratios (Period End)
                                                        
 
                                                        
Tier 1 leverage ratio
     11.51 %     11.57 %     11.82 %     11.46 %     11.51 %     11.51 %     11.51 %
Tier 1 risk-based capital ratio
     14.14 %     14.25 %     14.44 %     14.41 %     14.12 %     14.14 %     14.12 %
Total risk-based capital ratio
     15.45 %     15.58 %     15.78 %     15.76 %     15.47 %     15.45 %     15.47 %
 
     
(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 September 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
   $ 32,983     $ 20       0.24 %   $ 4,067     $ 3       0.29 %
U.S. Government obligations
     156,579       669       1.70       123,008       979       3.16  
Obligations of state and political subdivisions
     109,376       1,746       6.33       105,060       1,734       6.55  
Other debt and equity securities
     165,238       1,687       4.05       219,857       2,531       4.57  
 
                                        
Total interest-earning deposits and investments
     464,176       4,122       3.52       451,992       5,247       4.61  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     435,823       5,428       4.94       417,694       4,802       4.56  
Real estate—commercial and construction loans
     538,288       7,871       5.80       528,104       7,972       5.99  
Real estate—residential loans
     255,715       2,800       4.34       282,758       3,242       4.55  
Loans to individuals
     44,250       657       5.89       48,110       829       6.84  
Municipal loans and leases
     110,650       1,662       5.96       91,674       1,388       6.01  
Lease financings
     75,094       1,671       8.83       88,122       1,796       8.09  
 
                                        
Gross loans and leases
     1,459,820       20,089       5.46       1,456,462       20,029       5.46  
 
                                        
Total interest-earning assets
     1,923,996       24,211       4.99       1,908,454       25,276       5.25  
 
                                        
Cash and due from banks
     38,924                       32,637                  
Reserve for loan and lease losses
     (29,853 )                     (19,445 )                
Premises and equipment, net
     34,862                       33,274                  
Other assets
     149,779                       144,044                  
 
                                            
Total assets
   $ 2,117,708                     $ 2,098,964                  
 
                                            
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 179,117     $ 61       0.14     $ 162,764     $ 57       0.14  
Money market savings
     301,674       239       0.31       296,676       342       0.46  
Regular savings
     454,358       578       0.50       367,825       714       0.77  
Time deposits
     432,881       2,339       2.14       491,356       4,171       3.37  
 
                                        
Total time and interest-bearing deposits
     1,368,030       3,217       0.93       1,318,621       5,284       1.59  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     99,855       90       0.36       102,582       155       0.60  
Other short-term borrowings
     40,277       437       4.30       95,008       825       3.45  
Long-term debt
     5,000       48       3.81       44,810       315       2.79  
Subordinated notes and capital securities
     24,744       315       5.05       26,244       322       4.87  
 
                                        
Total borrowings
     169,876       890       2.08       268,644       1,617       2.39  
 
                                        
Total interest-bearing liabilities
     1,537,906       4,107       1.06       1,587,265       6,901       1.72  
 
                                        
Demand deposits, non-interest bearing
     274,583                       228,815                  
Accrued expenses and other liabilities
     34,174                       42,617                  
 
                                            
Total liabilities
     1,846,663                       1,858,697                  
 
                                            
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       83,588                  
Additional paid-in capital
     61,420                       43,882                  
Retained earnings and other equity
     118,293                       112,797                  
 
                                            
Total shareholders’ equity
     271,045                       240,267                  
 
                                            
Total liabilities and shareholders’ equity
   $ 2,117,708                     $ 2,098,964                  
 
                                            
Net interest income
           $ 20,104                     $ 18,375          
 
                                            
 
                                                
Net interest spread
                     3.93                       3.53  
Effect of net interest-free funding sources
                     0.22                       0.29  
 
                                            
Net interest margin
                     4.15 %                     3.82 %
 
                                            
 
                                                
Ratio of average interest-earning assets to average interest-bearing liabilities
     125.10 %                     120.24 %                
 
                                            
     
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 September 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 Nine Months Ended September 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
   $ 24,727     $ 50       0.27 %   $ 3,602     $ 8       0.30 %
U.S. Government obligations
     143,238       2,332       2.18       105,565       2,743       3.47  
Obligations of state and political subdivisions
     108,287       5,289       6.53       103,389       5,206       6.73  
Other debt and equity securities
     176,317       5,640       4.28       218,169       8,005       4.91  
Federal funds sold
     —       —       —       77       —       —  
 
                                        
 
                                                
Total interest-earning deposits, investments and federal funds sold
     452,569       13,311       3.93       430,802       15,962       4.95  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     420,572       14,985       4.76       409,513       14,021       4.58  
Real estate—commercial and construction loans
     528,611       23,185       5.86       518,828       23,289       6.00  
Real estate—residential loans
     257,637       8,443       4.38       297,248       10,432       4.69  
Loans to individuals
     45,969       2,054       5.97       50,759       2,621       6.90  
Municipal loans and leases
     104,321       4,651       5.96       88,851       4,082       6.14  
Lease financings
     78,341       5,136       8.77       92,792       5,827       8.40  
 
                                        
Gross loans and leases
     1,435,451       58,454       5.44       1,457,991       60,272       5.53  
 
                                        
Total interest-earning assets
     1,888,020       71,765       5.08       1,888,793       76,234       5.40  
 
                                        
Cash and due from banks
     36,045                       31,490                  
Reserve for loan and lease losses
     (28,444 )                     (16,358 )                
Premises and equipment, net
     34,908                       33,011                  
Other assets
     152,213                       141,963                  
 
                                            
Total assets
   $ 2,082,742                     $ 2,078,899                  
 
                                            
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 177,776     $ 180       0.14     $ 161,213     $ 199       0.17  
Money market savings
     291,841       832       0.38       312,888       1,389       0.59  
Regular savings
     438,832       2,020       0.62       343,897       2,211       0.86  
Time deposits
     434,334       7,993       2.46       515,755       13,603       3.53  
 
                                        
Total time and interest-bearing deposits
     1,342,783       11,025       1.10       1,333,753       17,402       1.74  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     98,181       318       0.43       88,104       416       0.63  
Other short-term borrowings
     54,379       1,664       4.09       89,987       1,867       2.77  
Long-term debt
     5,485       142       3.46       61,899       1,654       3.57  
Subordinated notes and capital securities
     25,116       940       5.00       26,617       975       4.90  
 
                                        
Total borrowings
     183,161       3,064       2.24       266,607       4,912       2.46  
 
                                        
Total interest-bearing liabilities
     1,525,944       14,089       1.23       1,600,360       22,314       1.86  
 
                                        
Demand deposits, non-interest bearing
     253,238                       220,789                  
Accrued expenses and other liabilities
     33,560                       39,909                  
 
                                            
Total liabilities
     1,812,742                       1,861,058                  
 
                                            
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       77,476                  
Additional paid-in capital
     61,420                       29,897                  
Retained earnings and other equity
     117,248                       110,468                  
 
                                            
Total shareholders’ equity
     270,000                       217,841                  
 
                                            
Total liabilities and shareholders’ equity
   $ 2,082,742                     $ 2,078,899                  
 
                                            
Net interest income
           $ 57,676                     $ 53,920          
 
                                            
 
                                                
Net interest spread
                     3.85                       3.54  
Effect of net interest-free funding sources
                     0.23                       0.28  
 
                                            
Net interest margin
                     4.08 %                     3.82 %
 
                                            
 
                                                
Ratio of average interest-earning assets to average interest-bearing liabilities
     123.73 %                     118.02 %                
 
                                            
     
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 September 30, 2010 and 2009 have been calculated using the Corporation’s federal applicable rate of 35.0%.