EX-99.1 2 c23681exv99w1.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
BANK AND TRUST CO. — REPORTS THIRD QUARTER EARNINGS
SOUDERTON, Pa., October 26, 2011 — Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest Bank and Trust Co., a full-service financial institution with 135 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 $5.2 million or $0.31 diluted earnings per share for the quarter ended September 30, 2011, compared to $4.1 million or $0.25 diluted earnings per share for the comparable period in the prior year. Net income for the nine months ended September 30, 2011 was $13.6 million or $0.81 diluted earnings per share, compared to $10.8 million or $0.65 diluted earnings per share for the comparable period in the prior year.
Deposits
Total deposits increased $103.8 million from June 30, 2011 and $38.8 million from December 31, 2010. The increase was primarily a result of an increase in public fund balances due to anticipated seasonal tax deposits as well as larger balances being maintained by existing public fund customers. Total public fund balances increased $103.2 million for the quarter and $53.9 million for the first nine months of 2011.
Loans
Gross loans and leases decreased $2.3 million from June 30, 2011 and $34.8 million from December 31, 2010, primarily due to continued light credit demand and utilization of lines by businesses and consumers as a result of the prolonged challenging economic environment.
Net Interest Income and Margin
Net interest income decreased $337 thousand or 1.78% to $18.6 million in the third quarter of 2011 compared to the third quarter of 2010. The net interest margin on a tax-equivalent basis for the third quarter of 2011 was 4.15% compared to 4.24% during the second quarter of 2011 and remained level with 4.15% in the third quarter 2010. The decrease in the net interest margin during the third quarter was due to the inflow of public fund deposits, which were primarily invested in overnight fed funds during the quarter, as the Corporation’s cash position increased by $90.1 million from June 30, 2011 to September 30, 2011.

 

 

 

Net interest income of $56.4 million for the nine months ended September 30, 2011 increased $2.1 million or 3.81% compared to the nine months ended September 30, 2010. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2011 increased 13 basis points to 4.21% from 4.08% for the nine months ended September 30, 2010.
The year-to-date increases in the net interest income and the net interest margin were a result of declines in the cost of interest-bearing liabilities, primarily time deposits. The increases were also attributed to declines in the volume of Federal Home Loan Bank (FHLB) borrowings, exceeding the declines in yields on total interest-earning assets. The Corporation repaid its maturing FHLB advances in 2010 reducing average year-to-date FHLB advances from $58.1 million for the nine months ended September 30, 2010 to $5.0 million for the nine months ended September 30, 2011. FHLB advances at September 30, 2011 remained at $5.0 million.
Non-Interest Income
Non-interest income for the quarter ended September 30, 2011 was $9.0 million, a slight increase of $90 thousand from the comparable period in the prior year. Non-interest income for the quarter included a net gain on sales of securities of $848 thousand, an increase of $509 thousand from the third quarter of 2010. These net securities gains were offset by a mortgage servicing right impairment of $672 thousand during the quarter primarily due to the decline in interest rates which increased the projected speeds of prepayment. This impairment is reflected in other income and is an increase of $260 thousand compared to the third quarter of 2010. Non-interest income also included increases in trust fee income of $175 thousand and bank owned life insurance income of $228 thousand. Additionally, the third quarter of 2010 was impacted by a fair value write-down on the ineffective portion of a fair value swap of $246 thousand, which was terminated in August, 2010. These favorable variances were offset by a $415 thousand decline in service charges on deposit accounts, primarily due to the amendments to Regulation E which were implemented on August 15, 2010; a $333 thousand decrease in the net gain on mortgage banking activities as a result of lower volume and net gains on sales; and a $150 thousand negative valuation adjustment on one real estate owned property.

 

 

 

Non-interest income for the nine months ended September 30, 2011 was $25.4 million, an increase of $279 thousand or 1.11% compared to $25.2 million for the nine months ended September 30, 2010. Non-interest income for the first nine months of 2011 included increases from trust fees of $425 thousand, investment advisory commissions and fees of $160 thousand, insurance commissions and fees of $105 thousand, bank owned life insurance income of $306 thousand, other service fee income of $260 thousand primarily related to interchange fees, and an increase in the net gain on sales of securities of $991 thousand. Additionally, the nine months ended September 30, 2010 was impacted by fair value write-downs on the ineffective portion of a fair value swap of $1.1 million, which was terminated in August 2010. These favorable variances were partially offset by a decline of $1.3 million in service charges on deposit accounts, mainly due to the amendments to Regulatory E which were implemented on August 15, 2010 and a decline of $965 thousand in the net gain on mortgage banking activities due to weaker mortgage demand in the first six months of the year. During the third quarter of 2011, mortgage demand has shown significant improvement due to re-financings. In addition, fair value write-downs on other real estate owned properties increased by $390 thousand and the first quarter of 2010 included a litigation settlement.
Non-Interest Expense
Non-interest expense for the third quarter of 2011 was $17.3 million, a slight increase of $124 thousand compared to the third quarter of 2010. Salaries and benefits expense increased by $113 thousand, due to increased incentive plan expenses, and other expenses increased $315 thousand primarily due to loan workout and legal expenses. The increases for the quarter were partially offset by a decline in deposit insurance premiums of $256 thousand mainly due to the amended assessment calculation requirement through the FDIC rule implemented April 1, 2011. The payment was formerly based on deposits whereas the rule change now bases the payment on the average consolidated total assets less average tangible equity.
For the nine months ended September 30, 2011, non-interest expense was $50.4 million, a decrease of $712 thousand or 1.39% compared to the same period in the prior year. This was attributed to a decline of $550 thousand in salaries and benefits as a result of higher deferred loan origination costs partially offset by higher commissions expense, restricted stock expense, employee incentive expense and salaries and benefits expense to grow the mortgage banking business. The Corporation implemented higher deferred loan origination costs commencing during the fourth quarter of 2010 based upon an in-depth study performed which incorporated management’s additional review time in connection with the loan approval process in the current environment. Additionally, the decrease was a result of a decline of $679 thousand in marketing and advertising expenses and a decline of $376 thousand in deposit insurance premiums. These decreases were partially offset by increases in premises and equipment and loan workout expenses.

 

 

 

Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $38.2 million at September 30, 2011 from $43.5 million at June 30, 2011 and $45.2 million at December 31, 2010. The decrease in non-accrual loans was mainly due to the partial charge-off and foreclosure on two commercial real estate loans for two borrowers. These loans represented $4.7 million in the aggregate, of which $1.7 million was charged-off during the quarter and the remaining $3.0 million was transferred to other real estate owned at September 30, 2011. Net loan and lease charge-offs were $5.2 million during the third quarter of 2011 compared to $5.8 million for both the second quarter of 2011 and the third quarter of 2010. For the nine months ended September 30, 2011, net loan and lease charge-offs were $14.2 million or 1.31% of average loans and leases compared to $11.2 million or 1.04% for the nine months ended September 30, 2010.
Nonperforming loans and leases as a percentage of total loans and leases equaled 2.96% at September 30, 2011 compared to 3.42% at June 30, 2011 and 2.37% at September 30, 2010. Other real estate owned increased from $5.0 million at June 30, 2011 to $7.7 million at September 30, 2011 primarily due to the addition of two commercial properties during the quarter as previously discussed. As of September 30, 2011, a total of seven properties remain in other real estate owned with three properties totaling $993 thousand under agreements of sale.
The provision for loan and lease losses declined to $3.6 million for the third quarter of 2011 compared to $5.6 million for the quarter ended June 30, 2011 and $5.5 million for the quarter ended September 30, 2010. The allowance for loan and lease losses as a percentage of total loans and leases was 2.16% at September 30, 2011 compared to 2.27% at June 30, 2011 and 1.97% at September 30, 2010. The allowance for loan and lease losses to nonperforming loans and leases equaled 72.85% at September 30, 2011, which increased from 66.26% at June 30, 2011. The allowance for loan and lease losses to nonperforming loans and leases was 83.10% at September 30, 2010.
Capital
Univest continues to remain well-capitalized at September 30, 2011. Univest’s total risk-based capital at September 30, 2011 was 16.00%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.
During the quarter, Univest deployed $742 thousand of capital to repurchase 56,408 shares of common stock through the stock repurchase program. Maximum shares available for future repurchases through the plan at September 30, 2011 was 587,374. Total shares outstanding at September 30, 2011 were 16,727,099.

 

 

 

Dividend
On October 3, 2011, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 6.17% 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. 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, 2011
(Dollars in thousands)
                                         
Balance Sheet (Period End)   09/30/11     06/30/11     03/31/11     12/31/10     09/30/10  
Assets
   $ 2,174,127     $ 2,058,377     $ 2,108,579     $ 2,133,893     $ 2,114,204  
Securities
     412,340       418,020       445,798       467,024       420,998  
Loans held for sale
     1,724       2,102       1,451       4,178       3,801  
Loans and leases, gross
     1,436,411       1,438,707       1,442,137       1,471,186       1,467,382  
Allowance for loan and lease losses
     31,002       32,601       32,804       30,898       28,883  
Loans and leases, net
     1,405,409       1,406,106       1,409,333       1,440,288       1,438,499  
Total deposits
     1,725,063       1,621,294       1,665,225       1,686,270       1,677,641  
Non-interest bearing deposits
     275,930       277,515       280,337       271,125       272,805  
NOW, Money Market and Savings
     1,016,651       967,554       974,158       997,395       969,254  
Time deposits
     432,482       376,225       410,730       417,750       435,582  
Borrowings
     135,490       127,689       125,545       143,865       128,905  
Shareholders’ equity
     275,099       273,022       268,673       266,224       270,773  
                                                         
    For the three months ended,     For the nine months ended,  
Balance Sheet (Average)   09/30/11     06/30/11     03/31/11     12/31/10     09/30/10     09/30/11     09/30/10  
Assets
   $ 2,113,446     $ 2,096,173     $ 2,106,276     $ 2,125,112     $ 2,117,708     $ 2,105,242     $ 2,082,742  
Securities
     409,376       439,606       444,662       449,031       431,193       431,085       427,842  
Loans and leases, gross
     1,445,344       1,451,076       1,461,037       1,461,766       1,459,820       1,452,428       1,435,451  
Deposits
     1,672,452       1,655,812       1,670,062       1,689,701       1,642,613       1,666,118       1,596,021  
Shareholders’ equity
     275,502       272,952       268,343       271,945       271,045       272,293       270,000  
                                         
Asset Quality Data (Period End)    09/30/11     06/30/11     03/31/11     12/31/10     09/30/10  
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases
   $ 38,180     $ 43,513     $ 38,631     $ 45,232     $ 33,043  
Accruing loans and leases 90 days or more past due
     449       659       516       696       899  
Accruing troubled debt restructured loans and leases
     3,925       5,028       5,111       550       813  
Other real estate owned
     7,711       4,952       6,135       2,438       1,557  
Nonperforming assets
     50,265       54,152       50,393       48,916       36,312  
Allowance for loan and lease losses
     31,002       32,601       32,804       30,898       28,883  
Nonperforming loans and leases / Loans and leases
     2.96 %     3.42 %     3.07 %     3.16 %     2.37 %
Allowance for loan and lease losses / Loans and leases
     2.16 %     2.27 %     2.27 %     2.10 %     1.97 %
Allowance for loan and lease losses / Nonperforming loans
     72.85 %     66.26 %     74.12 %     66.48 %     83.10 %
                                                         
    For the three months ended,     For the nine months ended,  
    09/30/11     06/30/11     03/31/11     12/31/10     09/30/10     09/30/11     09/30/10  
Net loan and lease charge-offs
   $ 5,248     $ 5,759     $ 3,228     $ 4,261     $ 5,755     $ 14,235     $ 11,204  
Net loan and lease charge-offs (annualized)/Average loans and leases
     1.44 %     1.59 %     0.90 %     1.16 %     1.56 %     1.31 %     1.04 %

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2011
(Dollars in thousands, except per share data)
                                                         
    For the three months ended,     For the nine months ended,  
For the period:   09/30/11     06/30/11     03/31/11     12/31/10     09/30/10     09/30/11     09/30/10  
Interest income
   $ 21,237     $ 21,704     $ 21,706     $ 22,580     $ 23,060     $ 64,647     $ 68,423  
Interest expense
     2,621       2,723       2,897       3,380       4,107       8,241       14,089  
 
                                          
Net interest income
     18,616       18,981       18,809       19,200       18,953       56,406       54,334  
Provision for loan and lease losses
     3,649       5,556       5,134       6,276       5,529       14,339       15,289  
 
                                          
Net interest income after provision
     14,967       13,425       13,675       12,924       13,424       42,067       39,045  
Noninterest income:
                                                        
Trust fee income
     1,625       1,625       1,625       1,630       1,450       4,875       4,450  
Service charges on deposit accounts
     1,218       1,356       1,336       1,466       1,633       3,910       5,227  
Investment advisory commission and fee income
     1,239       1,194       1,162       1,191       1,227       3,595       3,435  
Insurance commissions and fee income
     1,787       2,072       2,200       1,740       1,815       6,059       5,954  
Bank owned life insurance income
     554       268       344       410       326       1,166       860  
Other-than-temporary impairment
     (1 )     (3 )     (7 )     (3 )     (12 )     (11 )     (59 )
Net gain on sales of securities
     848       569       —       6       339       1,417       426  
Net gain (loss) on mortgage banking activities
     913       328       (25 )     779       1,246       1,216       2,181  
Net loss on interest rate swap
     —       —       —       —       (246 )     —       (1,072 )
Other income
     791       1,287       1,124       2,049       1,106       3,202       3,748  
 
                                          
Total noninterest income
     8,974       8,696       7,759       9,268       8,884       25,429       25,150  
Noninterest expense
                                                        
Salaries and benefits
     9,888       9,634       8,983       8,979       9,775       28,505       29,055  
Premises and equipment
     2,387       2,326       2,527       2,351       2,435       7,240       6,936  
Deposit insurance premiums
     442       427       713       712       698       1,582       1,958  
Other expense
     4,578       4,019       4,523       4,148       4,263       13,120       13,210  
 
                                          
Total noninterest expense
     17,295       16,406       16,746       16,190       17,171       50,447       51,159  
 
                                          
Income before taxes
     6,646       5,715       4,688       6,002       5,137       17,049       13,036  
Applicable income taxes
     1,402       1,199       826       1,093       990       3,427       2,189  
 
                                          
Net income
   $ 5,244     $ 4,516     $ 3,862     $ 4,909     $ 4,147     $ 13,622     $ 10,847  
 
                                          
 
                                                        
Per Common Share Data:
                                                        
Book value per share
   $ 16.45     $ 16.27     $ 16.04     $ 15.99     $ 16.29     $ 16.45     $ 16.29  
Net income per share:
                                                        
Basic
   $ 0.31     $ 0.27     $ 0.23     $ 0.30     $ 0.25     $ 0.81     $ 0.65  
Diluted
   $ 0.31     $ 0.27     $ 0.23     $ 0.30     $ 0.25     $ 0.81     $ 0.65  
Dividends per share
   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.60     $ 0.60  
Weighted average shares outstanding
     16,770,741       16,771,969       16,712,282       16,645,115       16,621,291       16,751,949       16,582,493  
Period end shares outstanding
     16,727,099       16,777,379       16,745,935       16,648,303       16,626,900       16,727,099       16,626,900  

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
September 30, 2011
                                                         
    For the three months ended,     For the nine months ended,  
Profitability Ratios (annualized)   09/30/11     06/30/11     03/31/11     12/31/10     09/30/10     09/30/11     09/30/10  
 
                                                        
Return on average assets
     0.98 %     0.86 %     0.74 %     0.92 %     0.78 %     0.87 %     0.70 %
Return on average shareholders’ equity
     7.55 %     6.64 %     5.84 %     7.16 %     6.07 %     6.69 %     5.37 %
Net interest margin (FTE)
     4.15 %     4.24 %     4.24 %     4.18 %     4.15 %     4.21 %     4.08 %
Efficiency ratio (1)
     59.35 %     56.47 %     59.90 %     54.20 %     58.88 %     58.56 %     61.42 %
 
                                                        
Capitalization Ratios
                                                        
 
                                                        
Dividends paid to net income
     64.00 %     74.27 %     86.30 %     67.85 %     80.15 %     73.73 %     91.78 %
Shareholders’ equity to assets (Period End)
     12.65 %     13.26 %     12.74 %     12.48 %     12.81 %     12.65 %     12.81 %
Tangible common equity to tangible assets
     10.34 %     10.80 %     10.32 %     10.08 %     10.46 %     10.34 %     10.46 %
 
                                                        
Regulatory Capital Ratios (Period End)
                                                        
Tier 1 leverage ratio
     11.84 %     11.87 %     11.72 %     11.54 %     11.51 %     11.84 %     11.51 %
Tier 1 risk-based capital ratio
     14.73 %     14.96 %     14.59 %     14.17 %     14.14 %     14.73 %     14.14 %
Total risk-based capital ratio
     16.00 %     16.25 %     15.89 %     15.47 %     15.45 %     16.00 %     15.45 %
     
(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,
                                                 
    2011     2010  
    Average     Income/     Average     Average     Income/     Average  
Tax Equivalent Basis   Balance     Expense     Rate     Balance     Expense     Rate  
Assets:
                                                
Interest-earning deposits with other banks
   $ 46,109     $ 25       0.22 %   $ 32,983     $ 20       0.24 %
U.S. Government obligations
     129,263       509       1.56       156,579       669       1.70  
Obligations of state and political subdivisions
     112,935       1,720       6.04       109,376       1,746       6.33  
Other debt and equity securities
     167,178       1,347       3.20       165,238       1,687       4.05  
 
                                        
Total interest-earning deposits and investments
     455,485       3,601       3.14       464,176       4,122       3.52  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     435,805       4,930       4.49       435,823       5,428       4.94  
Real estate—commercial and construction loans
     528,936       7,308       5.48       538,288       7,871       5.80  
Real estate—residential loans
     247,332       2,684       4.31       255,715       2,800       4.34  
Loans to individuals
     42,358       594       5.56       44,250       657       5.89  
Municipal loans and leases
     132,147       1,741       5.23       110,650       1,662       5.96  
Lease financings
     58,766       1,634       11.03       75,094       1,671       8.83  
 
                                        
Gross loans and leases
     1,445,344       18,891       5.19       1,459,820       20,089       5.46  
 
                                        
Total interest-earning assets
     1,900,829       22,492       4.69       1,923,996       24,211       4.99  
 
                                        
Cash and due from banks
     57,572                       38,924                  
Reserve for loan and lease losses
     (34,104 )                     (29,853 )                
Premises and equipment, net
     34,257                       34,862                  
Other assets
     154,892                       149,779                  
 
                                          
Total assets
   $ 2,113,446                     $ 2,117,708                  
 
                                          
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 210,499     $ 57       0.11     $ 179,117     $ 61       0.14  
Money market savings
     291,830       167       0.23       301,674       239       0.31  
Regular savings
     483,341       349       0.29       454,358       578       0.50  
Time deposits
     394,509       1,597       1.61       432,881       2,339       2.14  
 
                                        
Total time and interest-bearing deposits
     1,380,179       2,170       0.62       1,368,030       3,217       0.93  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     104,458       78       0.30       99,855       90       0.36  
Other short-term borrowings
     11       18       N/M       40,277       437       4.30  
Long-term debt
     5,000       48       3.81       5,000       48       3.81  
Subordinated notes and capital securities
     23,240       307       5.24       24,744       315       5.05  
 
                                        
Total borrowings
     132,709       451       1.35       169,876       890       2.08  
 
                                        
Total interest-bearing liabilities
     1,512,888       2,621       0.69       1,537,906       4,107       1.06  
 
                                        
Demand deposits, non-interest bearing
     292,273                       274,583                  
Accrued expenses and other liabilities
     32,783                       34,174                  
 
                                          
Total liabilities
     1,837,944                       1,846,663                  
 
                                          
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       91,332                  
Additional paid-in capital
     61,473                       61,420                  
Retained earnings and other equity
     122,697                       118,293                  
 
                                          
Total shareholders’ equity
     275,502                       271,045                  
 
                                          
Total liabilities and shareholders’ equity
   $ 2,113,446                     $ 2,117,708                  
 
                                          
Net interest income
           $ 19,871                     $ 20,104          
 
                                          
 
                                                
Net interest spread
                     4.00                       3.93  
Effect of net interest-free funding sources
                     0.15                       0.22  
 
                                            
Net interest margin
                     4.15 %                     4.15 %
 
                                            
   
Ratio of average interest-earning assets to average interest-bearing liabilities
     125.64 %                     125.10 %              
 
                                          
     
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, 2011 and 2010 have been calculated using the Corporation’s federal applicable rate of 35.0%.
   
   
N/M - not meaningful

 

 

 

Distribution of Assets, Liabilities and Shareholders’ Equity: Interest Rates and Interest Differential
For the Nine Months Ended September 30,
                                                 
    2011     2010  
    Average     Income/     Average     Average     Income/     Average  
Tax Equivalent Basis   Balance     Expense     Rate     Balance     Expense     Rate  
Assets:
                                                
Interest-earning deposits with other banks
   $ 24,076     $ 40       0.22 %   $ 24,727     $ 50       0.27 %
U.S. Government obligations
     150,902       1,865       1.65       143,238       2,332       2.18  
Obligations of state and political subdivisions
     110,730       5,153       6.22       108,287       5,289       6.53  
Other debt and equity securities
     169,453       4,403       3.47       176,317       5,640       4.28  
 
                                        
Total interest-earning deposits and investments
     455,161       11,461       3.37       452,569       13,311       3.93  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     431,983       15,048       4.66       420,572       14,985       4.76  
Real estate—commercial and construction loans
     542,926       21,958       5.41       528,611       23,185       5.86  
Real estate—residential loans
     245,889       8,082       4.39       257,637       8,443       4.38  
Loans to individuals
     42,428       1,817       5.73       45,969       2,054       5.97  
Municipal loans and leases
     127,843       5,152       5.39       104,321       4,651       5.96  
Lease financings
     61,359       4,819       10.50       78,341       5,136       8.77  
 
                                        
Gross loans and leases
     1,452,428       56,876       5.24       1,435,451       58,454       5.44  
 
                                        
Total interest-earning assets
     1,907,589       68,337       4.79       1,888,020       71,765       5.08  
 
                                        
Cash and due from banks
     41,205                       36,045                  
Reserve for loan and lease losses
     (33,506 )                     (28,444 )                
Premises and equipment, net
     34,393                       34,908                  
Other assets
     155,561                       152,213                  
 
                                          
Total assets
   $ 2,105,242                     $ 2,082,742                  
 
                                          
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 204,619     $ 180       0.12     $ 177,776     $ 180       0.14  
Money market savings
     292,620       542       0.25       291,841       832       0.38  
Regular savings
     482,026       1,186       0.33       438,832       2,020       0.62  
Time deposits
     403,729       5,018       1.66       434,334       7,993       2.46  
 
                                        
Total time and interest-bearing deposits
     1,382,994       6,926       0.67       1,342,783       11,025       1.10  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     100,695       227       0.30       98,181       318       0.43  
Other short-term borrowings
     4,555       29       0.85       54,379       1,664       4.09  
Long-term debt
     5,000       142       3.80       5,485       142       3.46  
Subordinated notes and capital securities
     23,615       917       5.19       25,116       940       5.00  
 
                                        
Total borrowings
     133,865       1,315       1.31       183,161       3,064       2.24  
 
                                        
Total interest-bearing liabilities
     1,516,859       8,241       0.73       1,525,944       14,089       1.23  
 
                                        
Demand deposits, non-interest bearing
     283,124                       253,238                  
Accrued expenses and other liabilities
     32,966                       33,560                  
 
                                          
Total liabilities
     1,832,949                       1,812,742                  
 
                                          
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       91,332                  
Additional paid-in capital
     61,452                       61,420                  
Retained earnings and other equity
     119,509                       117,248                  
 
                                          
Total shareholders’ equity
     272,293                       270,000                  
 
                                          
Total liabilities and shareholders’ equity
   $ 2,105,242                     $ 2,082,742                  
 
                                          
Net interest income
           $ 60,096                     $ 57,676          
 
                                          
 
                                                
Net interest spread
                     4.06                       3.85  
Effect of net interest-free funding sources
                     0.15                       0.23 %
 
                                            
Net interest margin
                     4.21 %                     4.08  
 
                                            
   
Ratio of average interest-earning assets to average interest-bearing liabilities
     125.76 %                     123.73 %              
 
                                          
     
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 nine months ended September 30, 2011 and 2010 have been calculated using the Corporation’s federal applicable rate of 35.0%.