Borrowings

12 Months Ended

Dec. 31, 2012

Borrowings [Abstract]

Borrowings

Note 13. Borrowings

At December 31, 2012 and 2011, long-term borrowings consisted of the following:

	Balance				Interest Rate
(Dollars in thousands)	2012		2011		2012			2011			Maturity
Federal Home Loan Bank Advances*	$	—	$	5,000		—	%		3.75	%		—
Subordinated Term Loan Note		125		625		1.62	%		1.68	%		April 2013
Subordinated Term Loan Note		250		1,250		1.62	%		1.68	%		May 2013
Junior subordinated debt owed to unconsolidated subsidiary trust		20,619		20,619		3.39	%		3.45	%		October 2033
	$	20,994	$	27,494

* In May 2012, the Corporation elected to pay-off the $5.0 million FHLB advance prior to its scheduled maturity date of January 2013. The prepayment penalty incurred was $97 thousand.

The contractual maturities of long-term borrowings at December 31, 2012 are as follows:

(Dollars in thousands)
Due in 2013	$	375
Due in 2014		—
Due in 2015		—
Due in 2016		—
Due in 2017		—
Thereafter		20,619
	$	20,994

Advances from the FHLB are collateralized by a blanket floating lien on all first mortgage loans of the Bank, FHLB capital stock owned by the Bank and any funds on deposit with the FHLB. The Corporation, through the Bank, has short-term and long-term credit facilities with the FHLB with a maximum borrowing capacity of approximately $398.1 million. At December 31, 2012, there were no outstanding borrowings with the FHLB. At December 31, 2011, the Bank’s outstanding short-term borrowings under the FHLB credit facilities totaled $5.0 million. At December 31, 2012 and 2011, the Bank had outstanding short-term letters of credit with the FHLB totaling $32.0 million and $55.0 million, respectively, which were utilized to collateralize seasonal public funds deposits. The maximum borrowing capacity changes as a function of the Bank’s qualifying collateral assets as well as the FHLB’s internal credit rating of the bank and the amount of funds received may be reduced by additional required purchases of FHLB stock.

The Corporation secured two subordinated term loan notes during the second quarter of 2003. The notes were issued in the amounts of $5.0 million and $10.0 million. The notes have a floating rate based upon the one-month U.S. London Interbank Borrowing Rate (LIBOR) plus 1.40% per annum. Quarterly principal and interest payments are made on these notes.

On August 27, 2003, the Corporation issued $20.0 million of Capital Securities of Univest Capital Trust I, a Delaware statutory trust formed by the Corporation. This issuance constitutes Trust Preferred Securities, which were completed through a placement in junior subordinated debentures of the Corporation. The deconsolidation of Univest Capital Trust I increased the carrying amount of the Trust Preferred Securities by $619 thousand. The 30-year term securities were issued on a variable rate based upon three-month LIBOR plus 3.05% per annum. The securities are callable by the Corporation at par in whole or in part after five years. Quarterly interest payments are made on this note. At December 31, 2012, $20.0 million of the Trust Preferred Securities qualified as Tier 1 capital under capital guidelines of the Federal Reserve. The proceeds from the Trust Preferred Securities were used to support the future growth of the Corporation and its banking subsidiary, the Bank.

The Bank maintains federal fund credit lines with several correspondent banks totaling $82.0 million at December 31, 2012 and 2011. There was no outstanding balance at December 31, 2012 or 2011. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.

The Corporation, through the Bank, has an available line of credit at the Federal Reserve Bank of Philadelphia, the amount of which is dependent upon the balance of loans and securities pledged as collateral. At December 31, 2012 and 2011, the Corporation had no outstanding borrowings from this line.

The following table details key information pertaining to customer repurchase agreements on an overnight basis for the periods indicated:

(Dollars in thousands)	2012			2011			2010
Balance at December 31	$	96,282		$	109,740		$	90,271
Weighted average interest rate at year end		0.07	%		0.20	%		0.30	%
Maximum amount outstanding at any month’s end	$	117,291		$	111,724		$	109,712
Average amount outstanding during the year	$	106,206		$	102,873		$	97,667
Weighted average interest rate during the year		0.13	%		0.28	%		0.40	%