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8-K - FORM 8-K - UNIVEST FINANCIAL Corp | d474545d8k.htm |
Exhibit 99.1
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CONTACT: | Mike Keim | |
UNIVEST CORPORATION OF PENNSYLVANIA | ||
Chief Financial Officer | ||
215-721-2511, keimm@univest.net |
FOR IMMEDIATE RELEASE
UNIVEST CORPORATION OF PENNSYLVANIA UNIVEST
BANK AND TRUST CO. REPORTS FOURTH QUARTER AND YEAR END EARNINGS
SOUDERTON, Pa., January 23, 2013 Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter and year ended December 31, 2012. Univest reported net income of $5.1 million or $0.30 diluted earnings per share for the quarter ended December 31, 2012, a 3% decrease in net income compared to $5.3 million or $0.32 diluted earnings per share for the quarter ended December 31, 2011. For the year ended December 31, 2012, Univest reported net income of $20.9 million or $1.24 diluted earnings per share, compared to $18.9 million or $1.13 diluted earnings per share for the same period in the prior year. The increase in net income of $2.0 million during 2012 represents an increase of 11% over the prior year.
Loans
Gross loans and leases increased $12.4 million from September 30, 2012 and $35.5 million from December 31, 2011. The growth in loans from the prior year-end occurred primarily in the commercial and residential mortgage categories. While the Corporation continued to see increased loan activity during 2012, overall credit demand and utilization of lines by businesses and consumers remained light as a result of the slow and uncertain economic recovery.
Deposits
Total deposits increased $87.4 million from September 30, 2012 and $116.1 million from December 31, 2011. Deposits, excluding public funds, grew $87.1 million from September 30, 2012 and $120.2 million from December 31, 2011, primarily due to new customers choosing Univest and an overall increase in demand deposits.
Net Interest Income and Margin
Net interest income decreased $184 thousand or 1% to $18.2 million in the fourth quarter of 2012 compared to the fourth quarter of 2011. The net interest margin on a tax-equivalent basis for the fourth quarter of 2012 was 3.80%, compared to 3.84% during the third quarter of 2012, and down from 3.96% in the fourth quarter of 2011. Net interest income decreased $2.3 million or 3% to $72.5 million for the year ended December 31, 2012 compared to the same period in 2011. The net interest margin on a tax-equivalent basis for the year ended December 31, 2012 was 3.89% compared to 4.15% for the year ended December 31, 2011.
The declines in net interest income and net interest margin were primarily due to the re-investment of maturing and called investment securities into lower yielding investments as a result of the lower interest rate environment and lower rates on commercial loans due to re-pricing and competitive pressures. The declines in net interest income and net interest margin were partially offset by re-pricing of certificates of deposit and savings account products.
Non-Interest Income
Non-interest income for the quarter ended December 31, 2012 was $10.4 million, an increase of $1.4 million or 16% from the comparable period in the prior year. The net gain on mortgage banking activities increased $919 thousand during the fourth quarter of 2012 over the same period in 2011 as refinance volume continues to be strong. Insurance commission and fee income was up $404 thousand mainly due to the Javers Group acquisition on May 31, 2012. In addition, trust fee income increased $433 thousand primarily due to growth in trust assets and estate fees. Partially offsetting this favorable variance was a decline in investment advisory commission and fee income of $371 thousand, primarily a result of timing and customer product selection.
Non-interest income for the year ended December 31, 2012 was $40.3 million, an increase of $5.9 million or 17% compared to the same period in the prior year. The increase was primarily attributable to an increase in the net gain on mortgage banking activities of $4.2 million due to stronger mortgage demand from increased refinance activity, a $1.3 million gain on the sale of a former operations building and proceeds from bank owned life insurance death benefits of $989 thousand. In addition, insurance commission and fee income was up $798 thousand mostly due to the Javers Group acquisition. These favorable variances were partially offset by an increase in the net loss on sales and write-downs of other real estate owned of $1.1 million. In addition, the net gain on sales of securities was $305 thousand for the year ended December 31, 2012 compared to $1.4 million for the same period in 2011.
Non-Interest Expense
Non-interest expense for the fourth quarter of 2012 was $19.7 million, an increase of $2.1 million or 12% compared to the fourth quarter of 2011. Salaries and benefits expense increased $1.4 million primarily due to higher commissions related to increased mortgage banking activities, annual performance increases and additional staff hired to expand our existing business lines and welcomed through the Javers acquisition. Additionally, non-interest expense increased due to higher equipment expenses and employment services used to identify top sales personnel.
Non-interest expense for the year ended December 31, 2012 was $76.3 million, an increase of $8.3 million or 12% compared to same period in the prior year. Salaries and benefits expense increased $6.1 million primarily due to higher commissions related to increased mortgage banking activities, annual performance increases and additional staff hired primarily to support revenue generation. Additionally, non-interest expense increased due to higher loan workout, legal, employment services and equipment expenses. The year-to-date increases were partially offset by a decline in deposit insurance premiums of $350 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.
Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $32.1 million at December 31, 2012 from $38.2 million at December 31, 2011. Non-accrual loans and leases were $30.5 million at September 30, 2012. The decrease in non-accrual loans from December 31, 2011 was mainly due to loan charge-offs, pay-downs and sales, and one large non-accrual troubled debt restructured credit for $6.2 million which was returned to accruing troubled debt restructured status as the borrower made six consecutive principal and interest payments; these collectively exceeded the additions to non-accrual loans. Net loan and lease charge-offs were $4.7 million during the fourth quarter of 2012 compared to $4.3 million for the fourth quarter of 2011. For the year ended December 31, 2012, net loan and lease charge-offs were $15.2 million compared to $18.5 million for the year ended December 31, 2011.
Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 2.17% at December 31, 2012, compared to 2.07% at September 30, 2012 and 2.64% at December 31, 2011. Other real estate owned decreased to $1.6 million, consisting of two properties at December 31, 2012, compared to $3.3 million at September 30, 2012 and $6.6 million at December 31, 2011. The year-to-date decrease was primarily due to write-downs on properties of $2.0 million to their updated appraised values, and the sale of three commercial properties for $3.0 million which had a total carrying value of $2.9 million, resulting in a gain on sale of $97 thousand.
The provision for loan and lease losses was $2.4 million for the fourth quarter of 2012, compared to $2.2 million for the quarter ended September 30, 2012 and $3.1 million for the quarter ended December 31, 2011. The provision for loan and lease losses for the year ended December 31, 2012 was $10.0 million, a reduction of $7.5 million compared to $17.5 million for the year ended December 31, 2011. The decrease in the year-to-date provision was primarily the result of migration and resolution of loans through the loan workout process and a decrease in loss factors for commercial real estate loans. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.67% at December 31, 2012, compared to 1.84% at September 30, 2012 and 2.07% at December 31, 2011. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 77.01% at December 31, 2012, compared to 97.03% at September 30, 2012 and 78.18% at December 31, 2011.
Capital
Univest continues to remain well-capitalized at December 31, 2012. Univests total risk-based capital at December 31, 2012 was 15.62%, well in excess of the regulatory minimum for well capitalized status of 10%.
Dividend
On November 28, 2012, Univest Corporation declared a quarterly cash dividend of $0.20 per share, payable on December 28, 2012. This represented a 4.82% annualized yield based on the closing price of Univests 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 Corporations 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 Corporations 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
December 31, 2012
(Dollars in thousands)
Balance Sheet (Period End) |
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | |||||||||||||||
Assets |
$ | 2,304,841 | $ | 2,232,081 | $ | 2,188,727 | $ | 2,192,164 | $ | 2,206,839 | ||||||||||
Securities |
499,579 | 515,256 | 439,092 | 451,433 | 471,165 | |||||||||||||||
Loans held for sale |
4,530 | 6,146 | 1,333 | 2,535 | 3,157 | |||||||||||||||
Loans and leases held for investment, gross |
1,481,862 | 1,469,511 | 1,465,449 | 1,459,830 | 1,446,406 | |||||||||||||||
Allowance for loan and lease losses |
24,746 | 27,096 | 30,502 | 30,597 | 29,870 | |||||||||||||||
Loans and leases held for investment, net |
1,457,116 | 1,442,415 | 1,434,947 | 1,429,233 | 1,416,536 | |||||||||||||||
Total deposits |
1,865,333 | 1,777,930 | 1,743,922 | 1,730,030 | 1,749,232 | |||||||||||||||
Non-interest bearing deposits |
368,948 | 334,856 | 334,828 | 307,769 | 304,006 | |||||||||||||||
NOW, money market and savings |
1,164,874 | 1,101,147 | 1,052,217 | 1,029,145 | 1,036,726 | |||||||||||||||
Time deposits |
331,511 | 341,927 | 356,877 | 393,116 | 408,500 | |||||||||||||||
Borrowings |
117,276 | 132,920 | 121,878 | 144,208 | 137,234 | |||||||||||||||
Shareholders equity |
284,277 | 281,589 | 277,316 | 275,525 | 272,979 |
Balance Sheet (Average) |
For the three months ended, | For the twelve months ended, | ||||||||||||||||||||||||||
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | ||||||||||||||||||||||
Assets |
$ | 2,264,863 | $ | 2,214,283 | $ | 2,173,698 | $ | 2,180,451 | $ | 2,174,857 | $ | 2,208,493 | $ | 2,122,788 | ||||||||||||||
Securities |
499,017 | 474,523 | 450,482 | 457,511 | 423,657 | 470,473 | 429,213 | |||||||||||||||||||||
Loans and leases, gross |
1,478,156 | 1,465,897 | 1,460,275 | 1,457,320 | 1,435,173 | 1,465,448 | 1,448,079 | |||||||||||||||||||||
Deposits |
1,823,707 | 1,771,454 | 1,726,441 | 1,724,310 | 1,727,861 | 1,761,676 | 1,681,681 | |||||||||||||||||||||
Shareholders equity |
286,980 | 280,172 | 277,621 | 275,071 | 276,114 | 282,286 | 273,255 |
Asset Quality Data (Period End) | ||||||||||||||||||||
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | ||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale |
$ | 32,132 | $ | 30,525 | $ | 36,762 | $ | 36,270 | $ | 38,207 | ||||||||||
Accruing loans and leases 90 days or more past due |
441 | 690 | 384 | 523 | 365 | |||||||||||||||
Accruing troubled debt restructured loans and leases |
13,457 | 13,383 | 7,591 | 7,301 | 3,893 | |||||||||||||||
Other real estate owned |
1,601 | 3,301 | 3,922 | 4,993 | 6,600 | |||||||||||||||
Nonperforming assets |
47,631 | 47,899 | 48,659 | 49,087 | 49,065 | |||||||||||||||
Allowance for loan and lease losses |
24,746 | 27,096 | 30,502 | 30,597 | 29,870 | |||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale |
2.17 | % | 2.07 | % | 2.51 | % | 2.48 | % | 2.64 | % | ||||||||||
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale |
3.11 | % | 3.03 | % | 3.05 | % | 3.02 | % | 2.94 | % | ||||||||||
Allowance for loan and lease losses / Loans and leases held for investment |
1.67 | % | 1.84 | % | 2.08 | % | 2.10 | % | 2.07 | % | ||||||||||
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment |
77.01 | % | 97.03 | % | 82.97 | % | 84.36 | % | 78.18 | % | ||||||||||
Allowance for loan and lease losses / Nonperforming loans and leases held for investment |
53.76 | % | 64.52 | % | 68.18 | % | 69.39 | % | 70.34 | % |
For the three months ended, | For the twelve months ended, | |||||||||||||||||||||||||||
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | ||||||||||||||||||||||
Net loan and lease charge-offs |
$ | 4,732 | $ | 5,616 | $ | 1,438 | $ | 3,373 | $ | 4,272 | $ | 15,159 | $ | 18,507 | ||||||||||||||
Net loan and lease charge-offs (annualized)/Average loans and leases |
1.27 | % | 1.52 | % | 0.40 | % | 0.93 | % | 1.18 | % | 1.03 | % | 1.28 | % |
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2012
(Dollars in thousands, except per share data)
For the three months ended, | For the twelve months ended, | |||||||||||||||||||||||||||
For the period: | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |||||||||||||||||||||
Interest income |
$ | 19,988 | $ | 19,977 | $ | 20,258 | $ | 20,431 | $ | 20,821 | $ | 80,654 | $ | 85,468 | ||||||||||||||
Interest expense |
1,838 | 1,958 | 2,111 | 2,267 | 2,487 | 8,174 | 10,728 | |||||||||||||||||||||
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Net interest income |
18,150 | 18,019 | 18,147 | 18,164 | 18,334 | 72,480 | 74,740 | |||||||||||||||||||||
Provision for loan and lease losses |
2,382 | 2,210 | 1,343 | 4,100 | 3,140 | 10,035 | 17,479 | |||||||||||||||||||||
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Net interest income after provision |
15,768 | 15,809 | 16,804 | 14,064 | 15,194 | 62,445 | 57,261 | |||||||||||||||||||||
Noninterest income: |
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Trust fee income |
1,902 | 1,625 | 1,625 | 1,625 | 1,469 | 6,777 | 6,344 | |||||||||||||||||||||
Service charges on deposit accounts |
1,128 | 1,122 | 1,079 | 1,100 | 1,147 | 4,429 | 5,057 | |||||||||||||||||||||
Investment advisory commission and fee income |
1,407 | 1,350 | 1,350 | 1,256 | 1,778 | 5,363 | 5,373 | |||||||||||||||||||||
Insurance commission and fee income |
2,078 | 2,129 | 2,057 | 2,267 | 1,674 | 8,531 | 7,733 | |||||||||||||||||||||
Bank owned life insurance income |
365 | 463 | 336 | 1,506 | 502 | 2,670 | 1,668 | |||||||||||||||||||||
Other-than-temporary impairment |
| (4 | ) | (6 | ) | (3 | ) | (5 | ) | (13 | ) | (16 | ) | |||||||||||||||
Net gain on sales of securities |
14 | 9 | 24 | 258 | | 305 | 1,417 | |||||||||||||||||||||
Net gain on mortgage banking activities |
1,571 | 2,171 | 1,074 | 1,272 | 652 | 6,088 | 1,868 | |||||||||||||||||||||
Other income |
1,913 | 1,996 | 461 | 1,740 | 1,761 | 6,110 | 4,963 | |||||||||||||||||||||
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Total noninterest income |
10,378 | 10,861 | 8,000 | 11,021 | 8,978 | 40,260 | 34,407 | |||||||||||||||||||||
Noninterest expense |
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Salaries and benefits |
11,163 | 10,828 | 10,733 | 11,563 | 9,725 | 44,287 | 38,230 | |||||||||||||||||||||
Premises and equipment |
2,664 | 2,597 | 2,513 | 2,428 | 2,544 | 10,202 | 9,784 | |||||||||||||||||||||
Deposit insurance premiums |
410 | 406 | 429 | 444 | 457 | 1,689 | 2,039 | |||||||||||||||||||||
Other expense |
5,475 | 5,227 | 4,961 | 4,441 | 4,837 | 20,104 | 17,957 | |||||||||||||||||||||
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Total noninterest expense |
19,712 | 19,058 | 18,636 | 18,876 | 17,563 | 76,282 | 68,010 | |||||||||||||||||||||
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Income before taxes |
6,434 | 7,612 | 6,168 | 6,209 | 6,609 | 26,423 | 23,658 | |||||||||||||||||||||
Applicable income taxes |
1,358 | 1,842 | 1,405 | 946 | 1,349 | 5,551 | 4,776 | |||||||||||||||||||||
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Net income |
$ | 5,076 | $ | 5,770 | $ | 4,763 | $ | 5,263 | $ | 5,260 | $ | 20,872 | $ | 18,882 | ||||||||||||||
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Per Common Share Data: |
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Book value per share |
$ | 16.95 | $ | 16.80 | $ | 16.55 | $ | 16.42 | $ | 16.34 | $ | 16.95 | $ | 16.34 | ||||||||||||||
Net income per share: |
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Basic |
$ | 0.30 | $ | 0.34 | $ | 0.28 | $ | 0.31 | $ | 0.32 | $ | 1.25 | $ | 1.13 | ||||||||||||||
Diluted |
$ | 0.30 | $ | 0.34 | $ | 0.28 | $ | 0.31 | $ | 0.32 | $ | 1.24 | $ | 1.13 | ||||||||||||||
Dividends per share |
$ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | ||||||||||||||
Weighted average shares outstanding |
16,765,199 | 16,760,080 | 16,770,290 | 16,749,134 | 16,716,160 | 16,761,184 | 16,742,898 | |||||||||||||||||||||
Period end shares outstanding |
16,770,232 | 16,765,126 | 16,759,893 | 16,780,416 | 16,702,376 | 16,770,232 | 16,702,376 |
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2012
For the three months ended, | For the twelve months ended, | |||||||||||||||||||||||||||
Profitability Ratios (annualized) |
12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | 12/31/11 | 12/31/12 | 12/31/11 | |||||||||||||||||||||
Return on average assets |
0.89 | % | 1.04 | % | 0.88 | % | 0.97 | % | 0.96 | % | 0.95 | % | 0.89 | % | ||||||||||||||
Return on average shareholders equity |
7.04 | % | 8.19 | % | 6.90 | % | 7.70 | % | 7.56 | % | 7.39 | % | 6.91 | % | ||||||||||||||
Net interest margin (FTE) |
3.80 | % | 3.84 | % | 3.97 | % | 3.95 | % | 3.96 | % | 3.89 | % | 4.15 | % | ||||||||||||||
Efficiency ratio (1) |
65.93 | % | 62.84 | % | 67.59 | % | 60.46 | % | 60.87 | % | 64.09 | % | 59.14 | % | ||||||||||||||
Capitalization Ratios |
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Dividends declared to net income |
66.06 | % | 58.09 | % | 70.48 | % | 63.63 | % | 63.48 | % | 64.25 | % | 70.87 | % | ||||||||||||||
Shareholders equity to assets (Period End) |
12.33 | % | 12.62 | % | 12.67 | % | 12.57 | % | 12.37 | % | 12.33 | % | 12.37 | % | ||||||||||||||
Tangible common equity to tangible assets |
9.88 | % | 10.12 | % | 10.11 | % | 10.18 | % | 10.00 | % | 9.88 | % | 10.00 | % | ||||||||||||||
Regulatory Capital Ratios (Period End) |
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Tier 1 leverage ratio |
11.47 | % | 11.48 | % | 11.57 | % | 11.64 | % | 11.53 | % | 11.47 | % | 11.53 | % | ||||||||||||||
Tier 1 risk-based capital ratio |
14.35 | % | 14.07 | % | 14.38 | % | 14.50 | % | 14.29 | % | 14.35 | % | 14.29 | % | ||||||||||||||
Total risk-based capital ratio |
15.62 | % | 15.34 | % | 15.64 | % | 15.76 | % | 15.56 | % | 15.62 | % | 15.56 | % |
(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 December 31, | ||||||||||||||||||||||||
Tax Equivalent Basis |
2012 | 2011 | ||||||||||||||||||||||
Average Balance |
Income/ Expense |
Average Rate |
Average Balance |
Income/ Expense |
Average Rate |
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Assets: |
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Interest-earning deposits with other banks |
$ | 43,538 | $ | 43 | 0.39 | % | $ | 105,886 | $ | 76 | 0.28 | % | ||||||||||||
U.S. Government obligations |
173,458 | 519 | 1.19 | 128,491 | 501 | 1.55 | ||||||||||||||||||
Obligations of state and political subdivisions |
121,062 | 1,577 | 5.18 | 114,664 | 1,722 | 5.96 | ||||||||||||||||||
Other debt and equity securities |
204,497 | 844 | 1.64 | 180,502 | 1,294 | 2.84 | ||||||||||||||||||
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Total interest-earning deposits and investments |
542,555 | 2,983 | 2.19 | 529,543 | 3,593 | 2.69 | ||||||||||||||||||
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Commercial, financial, and agricultural loans |
447,619 | 4,944 | 4.39 | 417,063 | 4,673 | 4.45 | ||||||||||||||||||
Real estatecommercial and construction loans |
533,178 | 6,809 | 5.08 | 535,571 | 7,194 | 5.33 | ||||||||||||||||||
Real estateresidential loans |
260,787 | 2,555 | 3.90 | 246,736 | 2,658 | 4.27 | ||||||||||||||||||
Loans to individuals |
42,844 | 624 | 5.79 | 43,745 | 616 | 5.59 | ||||||||||||||||||
Municipal loans and leases |
132,187 | 1,781 | 5.36 | 134,861 | 1,943 | 5.72 | ||||||||||||||||||
Lease financings |
61,541 | 1,465 | 9.47 | 57,197 | 1,413 | 9.80 | ||||||||||||||||||
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Gross loans and leases |
1,478,156 | 18,178 | 4.89 | 1,435,173 | 18,497 | 5.11 | ||||||||||||||||||
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Total interest-earning assets |
2,020,711 | 21,161 | 4.17 | 1,964,716 | 22,090 | 4.46 | ||||||||||||||||||
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Cash and due from banks |
73,812 | 40,503 | ||||||||||||||||||||||
Reserve for loan and lease losses |
(27,988 | ) | (32,099 | ) | ||||||||||||||||||||
Premises and equipment, net |
33,625 | 34,323 | ||||||||||||||||||||||
Other assets |
164,703 | 167,414 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets |
$ | 2,264,863 | $ | 2,174,857 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Interest-bearing checking deposits |
$ | 236,752 | $ | 39 | 0.07 | $ | 213,389 | $ | 58 | 0.11 | ||||||||||||||
Money market savings |
370,894 | 118 | 0.13 | 319,117 | 159 | 0.20 | ||||||||||||||||||
Regular savings |
523,569 | 156 | 0.12 | 482,177 | 282 | 0.23 | ||||||||||||||||||
Time deposits |
339,901 | 1,194 | 1.40 | 423,206 | 1,558 | 1.46 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total time and interest-bearing deposits |
1,471,116 | 1,507 | 0.41 | 1,437,889 | 2,057 | 0.57 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Short-term borrowings |
101,607 | 31 | 0.12 | 109,336 | 76 | 0.28 | ||||||||||||||||||
Long-term debt |
| | | 5,000 | 48 | 3.81 | ||||||||||||||||||
Subordinated notes and capital securities |
21,365 | 300 | 5.59 | 22,861 | 306 | 5.31 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total borrowings |
122,972 | 331 | 1.07 | 137,197 | 430 | 1.24 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities |
1,594,088 | 1,838 | 0.46 | 1,575,086 | 2,487 | 0.63 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Demand deposits, non-interest bearing |
352,591 | 289,972 | ||||||||||||||||||||||
Accrued expenses and other liabilities |
31,204 | 33,685 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities |
1,977,883 | 1,898,743 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Shareholders Equity |
||||||||||||||||||||||||
Common stock |
91,332 | 91,332 | ||||||||||||||||||||||
Additional paid-in capital |
64,769 | 61,474 | ||||||||||||||||||||||
Retained earnings and other equity |
130,879 | 123,308 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total shareholders equity |
286,980 | 276,114 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 2,264,863 | $ | 2,174,857 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest income |
$ | 19,323 | $ | 19,603 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest spread |
3.71 | 3.83 | ||||||||||||||||||||||
Effect of net interest-free funding sources |
0.09 | 0.13 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest margin |
3.80 | % | 3.96 | % | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
126.76 | % | 124.74 | % | ||||||||||||||||||||
|
|
|
|
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 December 31, 2012 and 2011 have been calculated using the Corporations federal applicable rate of 35.0%. |
Distribution of Assets, Liabilities and Shareholders Equity: Interest Rates and Interest Differential | ||||||||||||||||||||||||
For the Twelve Months Ended December 31, | ||||||||||||||||||||||||
Tax Equivalent Basis |
2012 | 2011 | ||||||||||||||||||||||
Average Balance |
Income/ Expense |
Average Rate |
Average Balance |
Income/ Expense |
Average Rate |
|||||||||||||||||||
Assets: |
||||||||||||||||||||||||
Interest-earning deposits with other banks |
$ | 52,387 | $ | 164 | 0.31 | % | $ | 44,696 | $ | 116 | 0.26 | % | ||||||||||||
U.S. Government obligations |
154,715 | 2,038 | 1.32 | 145,253 | 2,366 | 1.63 | ||||||||||||||||||
Obligations of state and political subdivisions |
119,993 | 6,669 | 5.56 | 111,722 | 6,875 | 6.15 | ||||||||||||||||||
Other debt and equity securities |
195,765 | 3,913 | 2.00 | 172,238 | 5,697 | 3.31 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-earning deposits and investments |
522,860 | 12,784 | 2.45 | 473,909 | 15,054 | 3.18 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Commercial, financial, and agricultural loans |
445,883 | 19,367 | 4.34 | 428,222 | 19,721 | 4.61 | ||||||||||||||||||
Real estatecommercial and construction loans |
530,633 | 27,550 | 5.19 | 541,073 | 29,152 | 5.39 | ||||||||||||||||||
Real estateresidential loans |
253,486 | 10,373 | 4.09 | 246,102 | 10,740 | 4.36 | ||||||||||||||||||
Loans to individuals |
43,562 | 2,480 | 5.69 | 42,760 | 2,433 | 5.69 | ||||||||||||||||||
Municipal loans and leases |
133,212 | 7,231 | 5.43 | 129,880 | 7,471 | 5.75 | ||||||||||||||||||
Lease financings |
58,672 | 5,709 | 9.73 | 60,042 | 5,856 | 9.75 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross loans and leases |
1,465,448 | 72,710 | 4.96 | 1,448,079 | 75,373 | 5.21 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-earning assets |
1,988,308 | 85,494 | 4.30 | 1,921,988 | 90,427 | 4.70 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash and due from banks |
49,362 | 41,028 | ||||||||||||||||||||||
Reserve for loan and lease losses |
(30,771 | ) | (33,152 | ) | ||||||||||||||||||||
Premises and equipment, net |
34,079 | 34,376 | ||||||||||||||||||||||
Other assets |
167,515 | 158,548 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets |
$ | 2,208,493 | $ | 2,122,788 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Liabilities: |
||||||||||||||||||||||||
Interest-bearing checking deposits |
$ | 230,031 | $ | 177 | 0.08 | $ | 206,830 | $ | 238 | 0.12 | ||||||||||||||
Money market savings |
330,839 | 509 | 0.15 | 299,299 | 701 | 0.23 | ||||||||||||||||||
Regular savings |
510,005 | 790 | 0.15 | 482,064 | 1,468 | 0.30 | ||||||||||||||||||
Time deposits |
363,225 | 5,162 | 1.42 | 408,638 | 6,576 | 1.61 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total time and interest-bearing deposits |
1,434,100 | 6,638 | 0.46 | 1,396,831 | 8,983 | 0.64 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Short-term borrowings |
108,023 | 326 | 0.30 | 106,280 | 332 | 0.31 | ||||||||||||||||||
Long-term debt |
109 | 4 | 3.67 | 5,000 | 190 | 3.80 | ||||||||||||||||||
Subordinated notes and capital securities |
21,921 | 1,206 | 5.50 | 23,425 | 1,223 | 5.22 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total borrowings |
130,053 | 1,536 | 1.18 | 134,705 | 1,745 | 1.30 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities |
1,564,153 | 8,174 | 0.52 | 1,531,536 | 10,728 | 0.70 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Demand deposits, non-interest bearing |
327,576 | 284,850 | ||||||||||||||||||||||
Accrued expenses and other liabilities |
34,478 | 33,147 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities |
1,926,207 | 1,849,533 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Shareholders Equity |
||||||||||||||||||||||||
Common stock |
91,332 | 91,332 | ||||||||||||||||||||||
Additional paid-in capital |
64,517 | 61,457 | ||||||||||||||||||||||
Retained earnings and other equity |
126,437 | 120,466 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total shareholders equity |
282,286 | 273,255 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 2,208,493 | $ | 2,122,788 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest income |
$ | 77,320 | $ | 79,699 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest spread |
3.78 | 4.00 | ||||||||||||||||||||||
Effect of net interest-free funding sources |
0.11 | 0.15 | % | |||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest margin |
3.89 | % | 4.15 | |||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities |
127.12 | % | 125.49 | % | ||||||||||||||||||||
|
|
|
|
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 twelve months ended December 31, 2012 and 2011 have been calculated |
using the Corporations federal applicable rate of 35.0%. |