Attached files
| file | filename |
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| 8-K - 8-K - UNIVEST FINANCIAL Corp | uvsp8kearningsrelease063016.htm |
Exhibit 99.1
NEWS |  |
CONTACT: Roger Deacon
UNIVEST CORPORATION OF PENNSYLVANIA
Chief Financial Officer
215-721-2455, DeaconR@univest.net
FOR IMMEDIATE RELEASE
UNIVEST CORPORATION OF PENNSYLVANIA - UNIVEST
BANK AND TRUST CO. - REPORTS SECOND QUARTER EARNINGS
SOUDERTON, Pa., July 27, 2016 - Univest Corporation of Pennsylvania (“Univest” or "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. ("Bank") and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter ended June 30, 2016. Univest reported net income of $5.2 million or $0.27 diluted earnings per share for the quarter ended June 30, 2016, compared to net income of $6.5 million or $0.33 diluted earnings per share for the quarter ended June 30, 2015. Net income for the six months ended June 30, 2016 was $12.5 million or $0.64 diluted earnings per share, consistent with net income of $12.6 million or $0.64 diluted earnings per share for the comparable period in the prior year. The financial results for the quarter and six months ended June 30, 2016 included $1.2 million and $1.4 million, net of tax, respectively, of acquisition-related and integration costs associated with the merger with Fox Chase Bancorp (Fox Chase), or $0.06 and $0.07, respectively, of diluted earnings per share. The quarter and six months ended June 30, 2015 included $1.2 million and $2.4 million, net of tax, respectively, of integration and acquisition-related costs and restructuring charges, or $0.05 and $0.12, respectively, of diluted earnings per share. The second quarter and year-to-date financial results do not include the financial results of Fox Chase, which Univest acquired on July 1, 2016.
Loans
Gross loans and leases grew $166.0 million or 7.6% from December 31, 2015 and $237.2 million or 11.3% from June 30, 2015. Gross loans and leases also grew $161.8 million or 7.4% from March 31, 2016. The growth in loans was primarily in commercial business, commercial real estate and residential real estate loans. Loan growth in the quarter resulted from new and existing customer relationships and the addition of new lenders due to continued market disruption created by other bank acquisitions. Additionally, during
the second quarter we hired a lending team from Lancaster County and during the third quarter we will integrate the Fox Chase Bank lending team.
Deposits
Total deposits declined $17.3 million or 0.7% from December 31, 2015. Declines in public fund time deposits were partially offset by growth in savings deposits and non-interest bearing demand deposits. Deposits grew $114.1 million or 5.0% from June 30, 2015, primarily due to growth in both non-interest bearing and interest-bearing demand deposits and savings deposits, partially offset by a decrease in time deposits. During the quarter, interest-bearing consumer demand deposits of approximately $92.4 million were transferred to noninterest-bearing deposits due to a product consolidation for existing customers.
Net Interest Income and Margin
Net interest income of $23.5 million for the second quarter of 2016 and $46.9 million for the six months ended June 30, 2016 remained consistent with the same periods in 2015. The net interest margin on a tax-equivalent basis for the second quarter of 2016 was 3.92%, compared to 3.90% for the first quarter of 2016 and 4.03% for the second quarter of 2015. Increases in net interest income from the comparable periods in the prior year, due to loan growth, were partially offset by reductions in loan rates and a decrease in the net accretion of acquisition accounting fair value adjustments related to the Valley Green Bank acquisition (the favorable impact of the acquisition accounting adjustments was three basis points for both the three and six months ended June 30, 2016 compared to 13 basis points for both the three and six months ended June 30, 2015). Also, included in interest expense are $289 thousand of amortized bridge loan fees and interest expense related to the Fox Chase merger incurred in the second quarter of 2016. The bridge loan was paid off on July 1, 2016 in conjunction with the closing of the merger.
Noninterest Income
Noninterest income for the quarter ended June 30, 2016 was $14.1 million, an increase of $768 thousand or 5.8% from the second quarter of 2015. Noninterest income for the six months ended June 30, 2016 was $28.1 million, an increase of $1.3 million or 4.8% from the comparable period in the prior year. Insurance commission and fee income increased $481 thousand or 6.3% for the six months ended June 30, 2016, primarily due to an increase in contingent commission income and commercial premiums received in the first quarter of 2016. Bank owned life insurance (BOLI) income increased $324 thousand for the quarter and $441 thousand for the six months ended June 30, 2016 mainly due to the purchase of policies totaling $8.0 million during the third quarter of 2015 and the transfer of policies totaling $9.8 million during 2015 to a higher yielding account structure. The net gain on mortgage banking activities increased $344 thousand for the quarter and $304 thousand for the six months ended June 30, 2016, mainly due to an increase in mortgage volume during the second quarter of 2016. Funded first mortgage volume for the quarter increased $7.4 million or 13.0% compared to the same period in 2015.
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2016 was $29.5 million, an increase of $2.7 million or 10.1%, compared to the second quarter of 2015. Noninterest expense for the six months ended June 30, 2016 was $56.5 million, an increase of $2.2 million or 4.1% from the comparable period in the prior year. Salaries and benefit expense increased $2.1 million for the quarter and $3.0 million for the six months ended June 30, 2016, primarily attributable to additional staff hired to support revenue generation across all business lines including the expansion into Lancaster County. Premises and equipment expenses increased $464 thousand for the quarter and $401 thousand for the six months ended June 30, 2016, mainly due to increased investments in computer equipment and software. Noninterest expense for the quarter and six months ended June 30, 2016 included $1.2 million and $1.4 million, respectively, of acquisition-related and integration costs associated with the merger with Fox Chase. Noninterest expense for the quarter and six months ended June 30, 2015 included $1.8 million and $3.6 million, respectively, of integration and acquisition-related costs and restructuring charges.
Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, were $13.3 million at June 30, 2016, compared to $14.2 million at December 31, 2015 and $17.7 million at June 30, 2015. Net loan and lease charge-offs were $129 thousand during the second quarter of 2016, compared to $2.5 million for the second quarter of 2015. Non-accrual loans and leases as a percentage of total loans and leases held for investment was 0.57% at June 30, 2016, compared to 0.65% at December 31, 2015 and 0.84% at June 30, 2015. The provision for loan and lease losses was $830 thousand for the second quarter of 2016, compared to $1.1 million for the second quarter of 2015.
The allowance for loan and lease losses as a percentage of loans and leases held for investment was 0.73% at June 30, 2016, compared to 0.81% at December 31, 2015 and 0.93% at June 30, 2015. The allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding loans acquired in the Valley Green Bank acquisition which were recorded at fair value as of the acquisition date, was 0.82% at June 30, 2016, compared to 0.94% at December 31, 2015 and 1.12% at June 30, 2015. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 129.3% at June 30, 2016, compared to 124.3% at December 31, 2015 and 143.1% at June 30, 2015.
Capital
Univest remains well-capitalized at June 30, 2016. Total risk-based capital at June 30, 2016 was 12.32%, well in excess of the regulatory minimum for well-capitalized status of 10%.
Dividend
On May 25, 2016, Univest declared a quarterly cash dividend of $0.20 per share, payable on July 1, 2016. This represented a 3.80% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.
Merger with Fox Chase Bancorp
On July 1, 2016, Univest completed its previously announced merger with Fox Chase, complementing and expanding the Corporation's presence in Bucks, Chester, Philadelphia and Montgomery counties in Pennsylvania and into Atlantic and Cape May counties in New Jersey.
Conference Call
Univest will host a conference call to discuss second quarter results on Thursday, July 28, 2016 at 9:00 a.m. EST. Participants may preregister at http://dpregister.com/10089539. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through August 28, 2016 by dialing 1-877-344-7529; using Conference ID: 10089539.
About Univest Corporation of Pennsylvania
Subsequent to the merger with Fox Chase Bancorp, Inc., Univest Corporation of Pennsylvania (UVSP), including its wholly-owned subsidiary, Univest Bank and Trust Co., has approximately $4.0 billion in assets and $3.2 billion in assets under management and supervision through its Wealth Management lines of business. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices in southeastern Pennsylvania extending to the Lehigh Valley and Lancaster - in New Jersey and Maryland and online at www.univest.net.
# # #
This press release of Univest Corporation of Pennsylvania and the reports Univest Corporation of Pennsylvania files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the financial services industry and, specifically, the financial operations, markets and products of Univest Corporation of Pennsylvania. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation of Pennsylvania’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 of Pennsylvania is engaged; (6) technological issues which may adversely affect Univest Corporation of Pennsylvania’s financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation of Pennsylvania files with the Securities and Exchange Commission. Univest Corporation of Pennsylvania undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data | |||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Balance Sheet (Period End) | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | ||||||||||||||||||||||
Assets | $ | 3,107,617 | $ | 2,824,777 | $ | 2,879,451 | $ | 2,851,568 | $ | 2,780,578 | |||||||||||||||||
Investment securities | 286,980 | 329,357 | 370,760 | 374,558 | 374,711 | ||||||||||||||||||||||
Loans held for sale | 4,657 | 3,818 | 4,680 | 9,151 | 8,831 | ||||||||||||||||||||||
Loans and leases held for investment, gross | 2,345,037 | 2,183,256 | 2,179,013 | 2,097,807 | 2,107,857 | ||||||||||||||||||||||
Allowance for loan and lease losses | 17,153 | 16,452 | 17,628 | 18,620 | 19,602 | ||||||||||||||||||||||
Loans and leases held for investment, net | 2,327,884 | 2,166,804 | 2,161,385 | 2,079,187 | 2,088,255 | ||||||||||||||||||||||
Total deposits | 2,377,084 | 2,334,361 | 2,394,360 | 2,372,865 | 2,263,025 | ||||||||||||||||||||||
Noninterest-bearing deposits | 689,916 | 559,827 | 541,460 | 519,767 | 519,026 | ||||||||||||||||||||||
NOW, money market and savings | 1,326,976 | 1,391,626 | 1,398,494 | 1,361,827 | 1,288,318 | ||||||||||||||||||||||
Time deposits | 360,192 | 382,908 | 454,406 | 491,271 | 455,681 | ||||||||||||||||||||||
Borrowings | 309,666 | 75,265 | 73,588 | 70,531 | 110,480 | ||||||||||||||||||||||
Shareholders' equity | 369,160 | 367,003 | 361,574 | 359,109 | 356,186 | ||||||||||||||||||||||
Balance Sheet (Average) | For the three months ended, | For the six months ended, | |||||||||||||||||||||||||
6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||||||||||
Assets | $ | 2,854,561 | $ | 2,834,557 | $ | 2,866,848 | $ | 2,804,578 | $ | 2,739,968 | $ | 2,844,277 | $ | 2,715,874 | |||||||||||||
Investment securities | 302,492 | 342,218 | 370,163 | 368,837 | 375,887 | 322,355 | 378,433 | ||||||||||||||||||||
Loans and leases, gross | 2,239,674 | 2,177,091 | 2,132,922 | 2,098,007 | 2,067,120 | 2,208,382 | 2,045,598 | ||||||||||||||||||||
Deposits | 2,340,959 | 2,351,816 | 2,393,655 | 2,325,049 | 2,242,217 | 2,346,387 | 2,240,035 | ||||||||||||||||||||
Shareholders' equity | 368,466 | 364,092 | 360,521 | 357,150 | 359,154 | 366,280 | 360,631 | ||||||||||||||||||||
Asset Quality Data (Period End) | |||||||||||||||||||||||||||
6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | |||||||||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale | $ | 13,265 | $ | 13,482 | $ | 14,183 | $ | 20,838 | $ | 17,697 | |||||||||||||||||
Accruing loans and leases 90 days or more past due | 748 | 693 | 379 | 428 | 287 | ||||||||||||||||||||||
Accruing troubled debt restructured loans and leases | 4,413 | 4,279 | 5,245 | 4,789 | 6,099 | ||||||||||||||||||||||
Other real estate owned | 3,131 | 3,073 | 1,276 | 955 | 955 | ||||||||||||||||||||||
Nonperforming assets | 21,557 | 21,527 | 21,083 | 27,010 | 25,038 | ||||||||||||||||||||||
Allowance for loan and lease losses | 17,153 | 16,452 | 17,628 | 18,620 | 19,602 | ||||||||||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 0.57 | % | 0.62 | % | 0.65 | % | 0.99 | % | 0.84 | % | |||||||||||||||||
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 0.79 | % | 0.85 | % | 0.91 | % | 1.24 | % | 1.14 | % | |||||||||||||||||
Allowance for loan and lease losses / Loans and leases held for investment | 0.73 | % | 0.75 | % | 0.81 | % | 0.89 | % | 0.93 | % | |||||||||||||||||
Allowance for loan and lease losses/Loans and leases held for investment (excluding acquired loans at period-end) | 0.82 | % | 0.86 | % | 0.94 | % | 1.06 | % | 1.12 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 129.31 | % | 122.03 | % | 124.29 | % | 110.58 | % | 143.11 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 93.09 | % | 89.15 | % | 89.00 | % | 84.43 | % | 97.60 | % | |||||||||||||||||
Acquired credit impaired loans | $ | 942 | $ | 1,267 | $ | 1,253 | $ | 1,379 | $ | 1,876 | |||||||||||||||||
For the three months ended, | For the six months ended, | ||||||||||||||||||||||||||
6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||||||||||
Net loan and lease charge-offs | $ | 129 | $ | 1,502 | $ | 1,909 | $ | 1,652 | $ | 2,473 | $ | 1,631 | $ | 3,275 | |||||||||||||
Net loan and lease charge-offs (annualized)/Average loans and leases | 0.02 | % | 0.28 | % | 0.36 | % | 0.31 | % | 0.48 | % | 0.15 | % | 0.32 | % | |||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data | |||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
For the three months ended, | For the six months ended, | ||||||||||||||||||||||||||
For the period: | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 6/30/2016 | 6/30/2015 | ||||||||||||||||||||
Interest income | $ | 25,994 | $ | 25,609 | $ | 25,623 | $ | 25,585 | $ | 25,513 | $ | 51,603 | $ | 50,251 | |||||||||||||
Interest expense | 2,451 | 2,211 | 2,278 | 2,220 | 2,133 | 4,662 | 3,567 | ||||||||||||||||||||
Net interest income | 23,543 | 23,398 | 23,345 | 23,365 | 23,380 | 46,941 | 46,684 | ||||||||||||||||||||
Provision for loan and lease losses | 830 | 326 | 917 | 670 | 1,141 | 1,156 | 2,215 | ||||||||||||||||||||
Net interest income after provision | 22,713 | 23,072 | 22,428 | 22,695 | 22,239 | 45,785 | 44,469 | ||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||
Trust fee income | 1,997 | 1,865 | 2,030 | 1,904 | 2,154 | 3,862 | 3,974 | ||||||||||||||||||||
Service charges on deposit accounts | 1,056 | 998 | 1,059 | 1,069 | 1,039 | 2,054 | 2,102 | ||||||||||||||||||||
Investment advisory commission and fee income | 2,759 | 2,669 | 2,583 | 2,687 | 2,740 | 5,428 | 5,503 | ||||||||||||||||||||
Insurance commission and fee income | 3,503 | 4,558 | 3,073 | 3,232 | 3,434 | 8,061 | 7,580 | ||||||||||||||||||||
Bank owned life insurance income | 535 | 470 | 425 | 306 | 211 | 1,005 | 564 | ||||||||||||||||||||
Net gain on sales of investment securities | 413 | 44 | 697 | 296 | 181 | 457 | 272 | ||||||||||||||||||||
Net gain on mortgage banking activities | 1,711 | 1,218 | 1,090 | 1,123 | 1,367 | 2,929 | 2,625 | ||||||||||||||||||||
Other income | 2,145 | 2,134 | 2,355 | 2,238 | 2,225 | 4,279 | 4,162 | ||||||||||||||||||||
Total noninterest income | 14,119 | 13,956 | 13,312 | 12,855 | 13,351 | 28,075 | 26,782 | ||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||
Salaries and benefits | 14,080 | 14,182 | 12,828 | 11,970 | 11,957 | 28,262 | 25,271 | ||||||||||||||||||||
Commissions | 2,363 | 1,895 | 1,894 | 2,174 | 2,155 | 4,258 | 3,969 | ||||||||||||||||||||
Premises and equipment | 4,207 | 3,984 | 3,897 | 3,924 | 3,743 | 8,191 | 7,790 | ||||||||||||||||||||
Professional fees | 947 | 1,020 | 870 | 1,096 | 1,066 | 1,967 | 1,873 | ||||||||||||||||||||
Intangible expense | 996 | 770 | 178 | 710 | 893 | 1,766 | 1,679 | ||||||||||||||||||||
Acquisition-related costs | 1,158 | 214 | 540 | — | 41 | 1,372 | 507 | ||||||||||||||||||||
Integration costs | 27 | 6 | 6 | — | 110 | 33 | 1,484 | ||||||||||||||||||||
Restructuring charges | — | — | — | — | 1,642 | — | 1,642 | ||||||||||||||||||||
Other expense | 5,768 | 4,868 | 5,816 | 5,369 | 5,225 | 10,636 | 10,028 | ||||||||||||||||||||
Total noninterest expense | 29,546 | 26,939 | 26,029 | 25,243 | 26,832 | 56,485 | 54,243 | ||||||||||||||||||||
Income before taxes | 7,286 | 10,089 | 9,711 | 10,307 | 8,758 | 17,375 | 17,008 | ||||||||||||||||||||
Income taxes | 2,046 | 2,800 | 2,553 | 2,779 | 2,292 | 4,846 | 4,426 | ||||||||||||||||||||
Net income | $ | 5,240 | $ | 7,289 | $ | 7,158 | $ | 7,528 | $ | 6,466 | $ | 12,529 | $ | 12,582 | |||||||||||||
Per common share data: | |||||||||||||||||||||||||||
Book value per share | $ | 18.88 | $ | 18.73 | $ | 18.51 | $ | 18.41 | $ | 18.21 | $ | 18.88 | $ | 18.21 | |||||||||||||
Net income per share: | |||||||||||||||||||||||||||
Basic | $ | 0.27 | $ | 0.37 | $ | 0.37 | $ | 0.39 | $ | 0.33 | $ | 0.64 | $ | 0.64 | |||||||||||||
Diluted | $ | 0.27 | $ | 0.37 | $ | 0.37 | $ | 0.39 | $ | 0.33 | $ | 0.64 | $ | 0.64 | |||||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.40 | |||||||||||||
Weighted average shares outstanding | 19,603,310 | 19,578,438 | 19,525,701 | 19,506,609 | 19,675,002 | 19,590,873 | 19,812,359 | ||||||||||||||||||||
Period end shares outstanding | 19,557,958 | 19,592,798 | 19,530,930 | 19,502,613 | 19,559,941 | 19,557,958 | 19,559,941 | ||||||||||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data | |||||||||||||||||||||||||||
June 30, 2016 | |||||||||||||||||||||||||||
For the three months ended, | For the six months ended, | ||||||||||||||||||||||||||
Profitability Ratios (annualized) | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 6/30/2015 | 6/30/2016 | 6/30/2015 | ||||||||||||||||||||
Return on average assets | 0.74 | % | 1.03 | % | 0.99 | % | 1.06 | % | 0.95 | % | 0.89 | % | 0.93 | % | |||||||||||||
Return on average assets, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 0.90 | % | 1.07 | % | 1.06 | % | 1.06 | % | 1.12 | % | 0.98 | % | 1.11 | % | |||||||||||||
Return on average shareholders' equity | 5.72 | % | 8.05 | % | 7.88 | % | 8.36 | % | 7.22 | % | 6.88 | % | 7.04 | % | |||||||||||||
Return on average shareholder's equity, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 6.99 | % | 8.29 | % | 8.42 | % | 8.36 | % | 8.52 | % | 7.64 | % | 8.36 | % | |||||||||||||
Return on average tangible common equity, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 10.56 | % | 12.63 | % | 12.92 | % | 12.91 | % | 13.12 | % | 11.58 | % | 12.80 | % | |||||||||||||
Net interest margin (FTE) | 3.92 | % | 3.90 | % | 3.80 | % | 3.89 | % | 4.03 | % | 3.91 | % | 4.07 | % | |||||||||||||
Efficiency ratio (3) | 75.22 | % | 69.23 | % | 68.10 | % | 66.96 | % | 70.29 | % | 72.24 | % | 70.99 | % | |||||||||||||
Efficiency ratio, excluding integration and acquisition-related costs and restructuring charges (1), (3), (4) | 72.20 | % | 68.67 | % | 66.67 | % | 66.96 | % | 65.60 | % | 70.44 | % | 66.23 | % | |||||||||||||
Capitalization Ratios | |||||||||||||||||||||||||||
Dividends declared to net income | 74.64 | % | 53.62 | % | 54.08 | % | 51.79 | % | 60.49 | % | 62.41 | % | 62.80 | % | |||||||||||||
Shareholders' equity to assets (Period End) | 11.88 | % | 12.99 | % | 12.56 | % | 12.59 | % | 12.81 | % | 11.88 | % | 12.81 | % | |||||||||||||
Tangible common equity to tangible assets | 8.21 | % | 8.97 | % | 8.58 | % | 8.56 | % | 8.67 | % | 8.21 | % | 8.67 | % | |||||||||||||
Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||
Tier 1 leverage ratio | 9.90 | % | 9.93 | % | 9.69 | % | 9.75 | % | 9.89 | % | 9.90 | % | 9.89 | % | |||||||||||||
Common equity tier 1 risk-based capital ratio | 9.87 | % | 10.81 | % | 10.65 | % | 10.85 | % | 10.77 | % | 9.87 | % | 10.77 | % | |||||||||||||
Tier 1 risk-based capital ratio | 9.87 | % | 10.81 | % | 10.65 | % | 10.85 | % | 10.77 | % | 9.87 | % | 10.77 | % | |||||||||||||
Total risk-based capital ratio | 12.32 | % | 13.47 | % | 13.35 | % | 13.69 | % | 13.65 | % | 12.32 | % | 13.65 | % | |||||||||||||
(1) This consolidated selected financial data schedule contains supplemental financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The management of Univest Corporation of Pennsylvania uses these non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See below table for additional information. | |||||||||||||||||||||||||||
(a) Integration and acquisition-related costs and restructuring charges | $ | 1,185 | $ | 220 | $ | 546 | $ | — | $ | 1,793 | $ | 1,405 | $ | 3,633 | |||||||||||||
Tax effect on integration and acquisition-related cost and restructuring charges | 22 | 2 | 49 | — | 628 | 24 | 1,270 | ||||||||||||||||||||
(b) Integration and acquisition-related costs and restructuring charges, net of tax | $ | 1,163 | $ | 218 | $ | 497 | $ | — | $ | 1,165 | $ | 1,381 | $ | 2,363 | |||||||||||||
(2) Net income in this ratio excludes integration and acquisition-related costs and restructuring charges, net of tax. See (1)(b) above. | |||||||||||||||||||||||||||
(3) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income. | |||||||||||||||||||||||||||
(4) Noninterest expense in this ratio excludes integration and acquisition-related costs and restructuring charges. See (1)(a) above. | |||||||||||||||||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||
Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | |||||||||||||||||||||||
For the Three Months Ended June 30, | |||||||||||||||||||||||
Tax Equivalent Basis | 2016 | 2015 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 7,654 | $ | 9 | 0.47 | % | $ | 17,767 | $ | 11 | 0.25 | % | |||||||||||
U.S. government obligations | 57,776 | 176 | 1.23 | 129,482 | 351 | 1.09 | |||||||||||||||||
Obligations of state and political subdivisions | 101,241 | 1,092 | 4.34 | 109,449 | 1,354 | 4.96 | |||||||||||||||||
Other debt and equity securities | 143,475 | 1,012 | 2.84 | 136,956 | 753 | 2.21 | |||||||||||||||||
Federal funds sold | 973 | 2 | 0.83 | 825 | — | — | |||||||||||||||||
Total interest-earning deposits, investments and federal funds sold | 311,119 | 2,291 | 2.96 | 394,479 | 2,469 | 2.51 | |||||||||||||||||
Commercial, financial, and agricultural loans | 436,189 | 4,132 | 3.81 | 434,251 | 4,483 | 4.14 | |||||||||||||||||
Real estate—commercial and construction loans | 898,494 | 10,106 | 4.52 | 846,318 | 9,913 | 4.70 | |||||||||||||||||
Real estate—residential loans | 557,733 | 6,141 | 4.43 | 482,796 | 5,619 | 4.67 | |||||||||||||||||
Loans to individuals | 30,301 | 408 | 5.42 | 29,149 | 389 | 5.35 | |||||||||||||||||
Municipal loans and leases | 241,507 | 2,723 | 4.53 | 204,931 | 2,431 | 4.76 | |||||||||||||||||
Lease financings | 75,450 | 1,524 | 8.12 | 69,675 | 1,535 | 8.84 | |||||||||||||||||
Gross loans and leases | 2,239,674 | 25,034 | 4.50 | 2,067,120 | 24,370 | 4.73 | |||||||||||||||||
Total interest-earning assets | 2,550,793 | 27,325 | 4.31 | 2,461,599 | 26,839 | 4.37 | |||||||||||||||||
Cash and due from banks | 32,647 | 32,624 | |||||||||||||||||||||
Reserve for loan and lease losses | (16,789 | ) | (21,373 | ) | |||||||||||||||||||
Premises and equipment, net | 43,990 | 40,433 | |||||||||||||||||||||
Other assets | 243,920 | 226,685 | |||||||||||||||||||||
Total assets | $ | 2,854,561 | $ | 2,739,968 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 351,011 | $ | 75 | 0.09 | $ | 370,449 | $ | 67 | 0.07 | |||||||||||||
Money market savings | 337,250 | 322 | 0.38 | 344,523 | 259 | 0.30 | |||||||||||||||||
Regular savings | 644,199 | 199 | 0.12 | 581,765 | 136 | 0.09 | |||||||||||||||||
Time deposits | 374,936 | 862 | 0.92 | 445,255 | 983 | 0.89 | |||||||||||||||||
Total time and interest-bearing deposits | 1,707,396 | 1,458 | 0.34 | 1,741,992 | 1,445 | 0.33 | |||||||||||||||||
Short-term borrowings | 53,874 | 320 | 2.39 | 45,525 | 13 | 0.11 | |||||||||||||||||
Subordinated notes (1) | 49,431 | 673 | 5.48 | 49,286 | 675 | 5.49 | |||||||||||||||||
Total borrowings | 103,305 | 993 | 3.87 | 94,811 | 688 | 2.91 | |||||||||||||||||
Total interest-bearing liabilities | 1,810,701 | 2,451 | 0.54 | 1,836,803 | 2,133 | 0.47 | |||||||||||||||||
Noninterest-bearing deposits | 633,563 | 500,225 | |||||||||||||||||||||
Accrued expenses and other liabilities | 41,831 | 43,786 | |||||||||||||||||||||
Total liabilities | 2,486,095 | 2,380,814 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 110,271 | 110,271 | |||||||||||||||||||||
Additional paid-in capital | 121,070 | 120,294 | |||||||||||||||||||||
Retained earnings and other equity | 137,125 | 128,589 | |||||||||||||||||||||
Total shareholders' equity | 368,466 | 359,154 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,854,561 | $ | 2,739,968 | |||||||||||||||||||
Net interest income | $ | 24,874 | $ | 24,706 | |||||||||||||||||||
Net interest spread | 3.77 | 3.90 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.15 | 0.13 | |||||||||||||||||||||
Net interest margin | 3.92 | % | 4.03 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 140.87 | % | 134.02 | % | |||||||||||||||||||
(1) The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense. | |||||||||||||||||||||||
Notes: For rate calculation purposes, average loan and lease categories include unearned discount. | |||||||||||||||||||||||
Nonaccrual loans and leases have been included in the average loan and lease balances. | |||||||||||||||||||||||
Loans held for sale have been included in the average loan balances. | |||||||||||||||||||||||
Tax-equivalent amounts for the three months ended June 30, 2016 and 2015 have been calculated using the Corporation’s federal applicable rate of 35.0%. | |||||||||||||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||
Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | |||||||||||||||||||||||
For the Six Months Ended June 30, | |||||||||||||||||||||||
Tax Equivalent Basis | 2016 | 2015 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 13,637 | $ | 37 | 0.55 | % | $ | 13,474 | $ | 16 | 0.24 | % | |||||||||||
U.S. government obligations | 70,132 | 426 | 1.22 | 134,694 | 730 | 1.09 | |||||||||||||||||
Obligations of state and political subdivisions | 101,151 | 2,221 | 4.42 | 107,048 | 2,676 | 5.04 | |||||||||||||||||
Other debt and equity securities | 151,072 | 2,036 | 2.71 | 136,691 | 1,408 | 2.08 | |||||||||||||||||
Federal funds sold | 3,456 | 9 | 0.52 | 3,692 | 2 | 0.11 | |||||||||||||||||
Total interest-earning deposits, investments and federal funds sold | 339,448 | 4,729 | 2.80 | 395,599 | 4,832 | 2.46 | |||||||||||||||||
Commercial, financial, and agricultural loans | 424,094 | 8,146 | 3.86 | 428,566 | 8,732 | 4.11 | |||||||||||||||||
Real estate—commercial and construction loans | 892,806 | 20,025 | 4.51 | 834,178 | 19,544 | 4.72 | |||||||||||||||||
Real estate—residential loans | 549,855 | 12,117 | 4.43 | 477,996 | 11,003 | 4.64 | |||||||||||||||||
Loans to individuals | 29,889 | 807 | 5.43 | 29,881 | 796 | 5.37 | |||||||||||||||||
Municipal loans and leases | 236,503 | 5,348 | 4.55 | 204,468 | 4,868 | 4.80 | |||||||||||||||||
Lease financings | 75,235 | 3,066 | 8.20 | 70,509 | 3,118 | 8.92 | |||||||||||||||||
Gross loans and leases | 2,208,382 | 49,509 | 4.51 | 2,045,598 | 48,061 | 4.74 | |||||||||||||||||
Total interest-earning assets | 2,547,830 | 54,238 | 4.28 | 2,441,197 | 52,893 | 4.37 | |||||||||||||||||
Cash and due from banks | 32,156 | 31,420 | |||||||||||||||||||||
Reserve for loan and lease losses | (17,280 | ) | (21,231 | ) | |||||||||||||||||||
Premises and equipment, net | 43,431 | 40,500 | |||||||||||||||||||||
Other assets | 238,140 | 223,988 | |||||||||||||||||||||
Total assets | $ | 2,844,277 | $ | 2,715,874 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 376,586 | $ | 159 | 0.08 | $ | 358,234 | $ | 114 | 0.06 | |||||||||||||
Money market savings | 349,519 | 662 | 0.38 | 359,936 | 538 | 0.30 | |||||||||||||||||
Regular savings | 635,546 | 373 | 0.12 | 572,453 | 258 | 0.09 | |||||||||||||||||
Time deposits | 396,741 | 1,797 | 0.91 | 453,270 | 1,952 | 0.87 | |||||||||||||||||
Total time and interest-bearing deposits | 1,758,392 | 2,991 | 0.34 | 1,743,893 | 2,862 | 0.33 | |||||||||||||||||
Short-term borrowings | 40,631 | 323 | 1.60 | 46,178 | 23 | 0.10 | |||||||||||||||||
Subordinated notes (1) | 49,412 | 1,348 | 5.49 | 25,324 | 682 | 5.43 | |||||||||||||||||
Total borrowings | 90,043 | 1,671 | 3.73 | 71,502 | 705 | 1.99 | |||||||||||||||||
Total interest-bearing liabilities | 1,848,435 | 4,662 | 0.51 | 1,815,395 | 3,567 | 0.40 | |||||||||||||||||
Noninterest-bearing deposits | 587,995 | 496,142 | |||||||||||||||||||||
Accrued expenses and other liabilities | 41,567 | 43,706 | |||||||||||||||||||||
Total liabilities | 2,477,997 | 2,355,243 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 110,271 | 110,271 | |||||||||||||||||||||
Additional paid-in capital | 120,947 | 120,227 | |||||||||||||||||||||
Retained earnings and other equity | 135,062 | 130,133 | |||||||||||||||||||||
Total shareholders' equity | 366,280 | 360,631 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,844,277 | $ | 2,715,874 | |||||||||||||||||||
Net interest income | $ | 49,576 | $ | 49,326 | |||||||||||||||||||
Net interest spread | 3.77 | 3.97 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.14 | 0.10 | |||||||||||||||||||||
Net interest margin | 3.91 | % | 4.07 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 137.84 | % | 134.47 | % | |||||||||||||||||||
(1) The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense. | |||||||||||||||||||||||
Notes: For rate calculation purposes, average loan and lease categories include unearned discount. | |||||||||||||||||||||||
Nonaccrual loans and leases have been included in the average loan and lease balances. | |||||||||||||||||||||||
Loans held for sale have been included in the average loan balances. | |||||||||||||||||||||||
Tax-equivalent amounts for the six months ended June 30, 2016 and 2015 have been calculated using the Corporation’s federal applicable rate of 35.0%. | |||||||||||||||||||||||