Attached files
| file | filename |
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| 8-K - 8-K - UNIVEST FINANCIAL Corp | uvsp8kearningsrelease093016.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 THIRD QUARTER RESULTS
SOUDERTON, Pa., October 26, 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 third quarter ended September 30, 2016. Univest reported net income of $58 thousand or $0.00 diluted earnings per share for the three months ended September 30, 2016, compared to net income of $7.5 million or $0.39 diluted earnings per share for the three months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $12.6 million or $0.57 diluted earnings per share, compared to net income of $20.1 million or $1.02 diluted earnings per share for the comparable period in the prior year.
The financial results for the three and nine months ended September 30, 2016 included $9.2 million and $10.6 million, net of tax, respectively, of acquisition and integration related costs associated with the acquisition of Fox Chase Bancorp "Fox Chase" or a total of $0.35 and $0.48, respectively, of diluted earnings per share. The nine months ended September 30, 2015 included $2.4 million, net of tax, of integration and acquisition-related costs and restructuring charges incurred during the first and second quarters, or $0.12 of diluted earnings per share. The current quarter is the first reporting period reflecting financial results inclusive of Fox Chase which Univest acquired on July 1, 2016. On September 12, 2016, Univest completed the Fox Chase system conversion, moving all operations to Univest and providing all Univest and Fox Chase customers with access to an expanded financial center and ATM network.
Loans
Gross loans and leases increased $1.0 billion from December 31, 2015 and $1.1 billion from September 30, 2015, including $776.3 million of loans acquired from Fox Chase Bank. Organic loan growth, which excludes the loans acquired from Fox Chase at June 30, 2016 was $69.1 million, or 2.2% (not annualized), for the three months ended September 30, 2016. The growth in loans was primarily in commercial business, commercial real estate and residential real estate loans. Loan growth in 2016 resulted from new and existing customer relationships, and Univest’s strategic move to expand its presence and hire a lending team in Lancaster County to seize opportunities as a result of market disruption caused by other bank acquisitions. Loan growth also resulted from opportunities brought by Univest’s new lending talent in its core market and through the acquisition of Fox Chase.
Deposits
Total deposits increased $784.1 million from December 31, 2015 and $805.6 million from September 30, 2015, primarily due to $738.3 million of deposits acquired from Fox Chase. Organic deposit growth which excludes the Fox Chase deposits at June 30, 2016, was $63.2 million, or 2.0% (not annualized) for the three months ended September 30, 2016 which is primarily due to an increase in public funds deposits.
Borrowings
Total borrowings increased $324.8 million from December 31, 2015 and $327.8 million from September 30, 2015, primarily due to long-term borrowings acquired from Fox Chase which consisted of $90.0 million principal amount of Federal Home Loan bank borrowings and borrowed funds obtained from other commercial banks, the issuance by the Corporation of $45.0 million in subordinated notes on July 1, 2016 and an increase of $187.2 million in short-term borrowings.
Net Interest Income and Margin
Net interest income increased $9.4 million to $32.9 million for the third quarter of 2016 from the same period in 2015. Net interest income increased $9.6 million for the nine months ended September 30, 2016 from the same period in the prior year. The net interest margin on a tax-equivalent basis for the third quarter of 2016 was 3.68%, compared to 3.93% for the second quarter of 2016 and 3.89% for the third quarter of 2015. The increase in net interest income and decrease in net interest margin during the third quarter of 2016 was mainly due to the impact of the Fox Chase acquisition, which included a full quarter of average net interest-earning assets acquired. The favorable impact of acquisition accounting fair value adjustments was 7 basis points for the quarter ended September 30, 2016 compared to 8 basis points for the quarter ended September 30, 2015. A detailed analysis comparing net interest margin and net interest income for the quarter ended September 30, 2016 and the quarter ended June 30, 2106 is included in the attached exhibits.
Noninterest Income
Noninterest income for the quarter ended September 30, 2016 was $14.1 million, an increase of $1.4 million or 11.0% from the third quarter of 2015. Noninterest income for the nine months ended September 30, 2016 was $42.0 million, an increase of $2.7 million or 7.0% from the comparable period in the prior year. Service charges on deposits increased $275 thousand or 25.7% for the quarter and $227 thousand or 7.2% for the nine months ended September 30, 2016 mostly due to fees on deposit accounts acquired from Fox Chase. Insurance commission and fee income increased $516 thousand or 4.8% for the nine months ended September 30, 2016, primarily due to an increase in contingent commission income and growth in the group life and health and commercial product lines premiums. Bank owned life insurance (BOLI) income increased $405 thousand for the quarter and $846 thousand for the nine months ended September 30, 2016 mainly due to $26.1 million of policies acquired from Fox Chase which generated $208 thousand of income during the third quarter of 2016, the purchase of policies totaling $8.0 million during the third quarter of 2015, and the transfer of policies totaling $9.8 million during the second and fourth quarters of 2015 to a higher yielding account structure. The net gain on mortgage banking activities increased $883 thousand for the quarter and $1.2 million for the nine months ended September 30, 2016, mainly due to increases in mortgage volume during the second and third quarters of 2016. Mortgage volume closings increased $32.8 million or 65.5%, for the three months ended September 30, 2016 and $33.4 million, or 21.7% for the nine months ended September 30, 2016, compared to the same periods in 2015.
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2016 was $47.1 million, an increase of $21.8 million or 86.5%, compared to the third quarter of 2015. Noninterest expense for the nine months ended September 30, 2016 was $103.6 million, an increase of $24.1 million or 30.3% from the comparable period in the prior year. Acquisition and integration costs related to the Fox Chase merger were $14.1 million for the three months ended September 30, 2016 and $15.6 million for the nine months ended September 30, 2016. Acquisition, integration and restructuring costs related to the Valley Green merger were $3.6 million for the nine months ended September 30, 2015. Salaries and benefit expense increased $4.7 million for the quarter and $7.7 million for the nine months ended September 30, 2016, primarily attributable to higher staffing levels resulting from the Fox Chase acquisition, additional staff hired to support revenue generation across all business lines and the expansion into Lancaster County. Commission expense increased $311 thousand for the quarter and $600 thousand for the nine months ended September 30, 2016, mostly due to commissions paid on increased mortgage banking and insurance revenue. Premises and equipment expenses increased $545 thousand for the quarter and $365 thousand for the nine months ended September 30, 2016, primarily due to higher premises expense related to Fox Chase locations. Data processing expense increased $954 thousand for the quarter and $1.6 million for the nine months ended September 30, 2016 due to increased investments in computer software as well as a full quarter of Fox Chase processing expense.
Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, were $15.1 million at September 30, 2016, compared to $14.2 million at December 31, 2015 and $20.8 million at September 30, 2015. Net loan and lease charge-offs were $1.7 million during the third quarter of 2016 and $3.3 million for the nine months ended September 30, 2016. The provision for loan and lease losses was $1.4 million for the third quarter of 2016 and $2.6 million for the nine months ended September 30, 2016.
The allowance for loan and lease losses as a percentage of loans and leases held for investment was 0.53% at September 30, 2016, compared to 0.81% at December 31, 2015 and 0.89% at September 30, 2015. The allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding loans acquired in the Fox Chase and Valley Green Bank acquisitions which were recorded at fair value as of the acquisition date, was 0.77% at September 30, 2016, compared to 0.94% at December 31, 2015.
Dividend
On August 19, 2016, Univest declared a quarterly cash dividend of $0.20 per share, payable on October 3, 2016. This represented a 3.45% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.
Conference Call
Univest will host a conference call to discuss second quarter results on Thursday, October 27, 2016 at 9:00 a.m. EST. Participants may preregister at http://dpregister.com/10094672. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through November 27, 2016 by dialing 1-877-344-7529; using Conference ID: 10094672.
About Univest Corporation of Pennsylvania
Univest Corporation of Pennsylvania (UVSP), including its wholly-owned subsidiary, Univest Bank and Trust Co., has approximately $4.1 billion in assets and $3.0 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, as well as 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 | |||||||||||||||||||||||||||
September 30, 2016 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Balance Sheet (Period End) | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | ||||||||||||||||||||||
Assets | $ | 4,140,444 | $ | 3,107,617 | $ | 2,824,777 | $ | 2,879,451 | $ | 2,851,568 | |||||||||||||||||
Investment securities | 484,213 | 286,980 | 329,357 | 370,760 | 374,558 | ||||||||||||||||||||||
Loans held for sale | 3,844 | 4,657 | 3,818 | 4,680 | 9,151 | ||||||||||||||||||||||
Loans and leases held for investment, gross | 3,190,361 | 2,345,037 | 2,183,256 | 2,179,013 | 2,097,807 | ||||||||||||||||||||||
Allowance for loan and lease losses | 16,899 | 17,153 | 16,452 | 17,628 | 18,620 | ||||||||||||||||||||||
Loans and leases held for investment, net | 3,173,462 | 2,327,884 | 2,166,804 | 2,161,385 | 2,079,187 | ||||||||||||||||||||||
Total deposits | 3,178,509 | 2,377,084 | 2,334,361 | 2,394,360 | 2,372,865 | ||||||||||||||||||||||
Noninterest-bearing deposits | 874,581 | 689,916 | 559,827 | 541,460 | 519,767 | ||||||||||||||||||||||
NOW, money market and savings | 1,652,696 | 1,326,976 | 1,391,626 | 1,398,494 | 1,361,827 | ||||||||||||||||||||||
Time deposits | 651,232 | 360,192 | 382,908 | 454,406 | 491,271 | ||||||||||||||||||||||
Borrowings | 398,341 | 309,666 | 75,265 | 73,588 | 70,531 | ||||||||||||||||||||||
Shareholders' equity | 509,249 | 369,160 | 367,003 | 361,574 | 359,109 | ||||||||||||||||||||||
Balance Sheet (Average) | For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 9/30/2016 | 9/30/2015 | |||||||||||||||||||||
Assets | $ | 4,147,468 | $ | 2,854,561 | $ | 2,834,557 | $ | 2,866,848 | $ | 2,804,578 | $ | 3,281,469 | $ | 2,745,767 | |||||||||||||
Investment securities | 503,790 | 302,492 | 342,218 | 370,163 | 368,837 | 383,275 | 375,200 | ||||||||||||||||||||
Loans and leases, gross | 3,164,273 | 2,239,674 | 2,177,091 | 2,132,922 | 2,098,007 | 2,529,339 | 2,063,259 | ||||||||||||||||||||
Deposits | 3,177,060 | 2,340,959 | 2,351,816 | 2,393,655 | 2,325,049 | 2,625,299 | 2,268,685 | ||||||||||||||||||||
Shareholders' equity | 506,464 | 368,466 | 364,092 | 360,521 | 357,150 | 413,348 | 359,457 | ||||||||||||||||||||
Asset Quality Data (Period End) | |||||||||||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | |||||||||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale | $ | 15,050 | $ | 13,265 | $ | 13,482 | $ | 14,183 | $ | 20,838 | |||||||||||||||||
Accruing loans and leases 90 days or more past due | 1,128 | 748 | 693 | 379 | 428 | ||||||||||||||||||||||
Accruing troubled debt restructured loans and leases | 3,286 | 4,413 | 4,279 | 5,245 | 4,789 | ||||||||||||||||||||||
Other real estate owned | 6,041 | 3,131 | 3,073 | 1,276 | 955 | ||||||||||||||||||||||
Nonperforming assets | 25,505 | 21,557 | 21,527 | 21,083 | 27,010 | ||||||||||||||||||||||
Allowance for loan and lease losses | 16,899 | 17,153 | 16,452 | 17,628 | 18,620 | ||||||||||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 0.47 | % | 0.57 | % | 0.62 | % | 0.65 | % | 0.99 | % | |||||||||||||||||
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 0.61 | % | 0.79 | % | 0.85 | % | 0.91 | % | 1.24 | % | |||||||||||||||||
Allowance for loan and lease losses / Loans and leases held for investment | 0.53 | % | 0.73 | % | 0.75 | % | 0.81 | % | 0.89 | % | |||||||||||||||||
Allowance for loan and lease losses/Loans and leases held for investment (excluding acquired loans at period-end) | 0.77 | % | 0.82 | % | 0.86 | % | 0.94 | % | 1.06 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 112.29 | % | 129.31 | % | 122.03 | % | 124.29 | % | 110.58 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 86.82 | % | 93.09 | % | 89.15 | % | 89.00 | % | 84.43 | % | |||||||||||||||||
Acquired credit impaired loans | $ | 14,575 | $ | 942 | $ | 1,267 | $ | 1,253 | $ | 1,379 | |||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 9/30/2016 | 9/30/2015 | |||||||||||||||||||||
Net loan and lease charge-offs | $ | 1,669 | $ | 129 | $ | 1,502 | $ | 1,909 | $ | 1,652 | $ | 3,300 | $ | 4,927 | |||||||||||||
Net loan and lease charge-offs (annualized)/Average loans and leases | 0.21 | % | 0.02 | % | 0.28 | % | 0.36 | % | 0.31 | % | 0.17 | % | 0.32 | % | |||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data | |||||||||||||||||||||||||||
September 30, 2016 | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
For the period: | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 9/30/2016 | 9/30/2015 | ||||||||||||||||||||
Interest income | $ | 36,705 | $ | 26,112 | $ | 25,734 | $ | 25,747 | $ | 25,704 | $ | 88,551 | $ | 76,236 | |||||||||||||
Interest expense | 3,836 | 2,451 | 2,211 | 2,278 | 2,220 | 8,498 | 5,787 | ||||||||||||||||||||
Net interest income | 32,869 | 23,661 | 23,523 | 23,469 | 23,484 | 80,053 | 70,449 | ||||||||||||||||||||
Provision for loan and lease losses | 1,415 | 830 | 326 | 917 | 670 | 2,571 | 2,885 | ||||||||||||||||||||
Net interest income after provision | 31,454 | 22,831 | 23,197 | 22,552 | 22,814 | 77,482 | 67,564 | ||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||
Trust fee income | 1,958 | 1,997 | 1,865 | 2,030 | 1,904 | 5,820 | 5,878 | ||||||||||||||||||||
Service charges on deposit accounts | 1,344 | 1,056 | 998 | 1,059 | 1,069 | 3,398 | 3,171 | ||||||||||||||||||||
Investment advisory commission and fee income | 2,864 | 2,759 | 2,669 | 2,583 | 2,687 | 8,292 | 8,190 | ||||||||||||||||||||
Insurance commission and fee income | 3,267 | 3,503 | 4,558 | 3,073 | 3,232 | 11,328 | 10,812 | ||||||||||||||||||||
Bank owned life insurance income | 711 | 535 | 470 | 425 | 306 | 1,716 | 870 | ||||||||||||||||||||
Net gain on sales of investment securities | 30 | 413 | 44 | 697 | 296 | 487 | 568 | ||||||||||||||||||||
Net gain on mortgage banking activities | 2,006 | 1,711 | 1,218 | 1,090 | 1,123 | 4,935 | 3,748 | ||||||||||||||||||||
Other income | 1,957 | 2,027 | 2,009 | 2,231 | 2,119 | 5,993 | 6,000 | ||||||||||||||||||||
Total noninterest income | 14,137 | 14,001 | 13,831 | 13,188 | 12,736 | 41,969 | 39,237 | ||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||
Salaries and benefits | 16,710 | 14,080 | 14,182 | 12,828 | 11,970 | 44,972 | 37,241 | ||||||||||||||||||||
Commissions | 2,485 | 2,363 | 1,895 | 1,894 | 2,174 | 6,743 | 6,143 | ||||||||||||||||||||
Premises and equipment | 3,424 | 2,841 | 2,872 | 2,817 | 2,879 | 9,137 | 8,772 | ||||||||||||||||||||
Data processing | 2,169 | 1,530 | 1,281 | 1,244 | 1,215 | 4,980 | 3,416 | ||||||||||||||||||||
Professional fees | 1,322 | 947 | 1,020 | 870 | 1,096 | 3,289 | 2,969 | ||||||||||||||||||||
Intangible expense | 906 | 996 | 770 | 178 | 710 | 2,672 | 2,389 | ||||||||||||||||||||
Acquisition-related costs | 8,784 | 1,158 | 214 | 540 | — | 10,156 | 507 | ||||||||||||||||||||
Integration costs | 5,365 | 27 | 6 | 6 | — | 5,398 | 1,484 | ||||||||||||||||||||
Restructuring charges | (85 | ) | — | — | — | — | (85 | ) | 1,642 | ||||||||||||||||||
Other expense | 5,986 | 5,604 | 4,699 | 5,652 | 5,199 | 16,289 | 14,923 | ||||||||||||||||||||
Total noninterest expense | 47,066 | 29,546 | 26,939 | 26,029 | 25,243 | 103,551 | 79,486 | ||||||||||||||||||||
Income before taxes | (1,475 | ) | 7,286 | 10,089 | 9,711 | 10,307 | 15,900 | 27,315 | |||||||||||||||||||
Income taxes | (1,533 | ) | 2,046 | 2,800 | 2,553 | 2,779 | 3,313 | 7,205 | |||||||||||||||||||
Net income | $ | 58 | $ | 5,240 | $ | 7,289 | $ | 7,158 | $ | 7,528 | $ | 12,587 | $ | 20,110 | |||||||||||||
Per common share data: | |||||||||||||||||||||||||||
Book value per share | $ | 19.17 | $ | 18.88 | $ | 18.73 | $ | 18.51 | $ | 18.41 | $ | 19.17 | $ | 18.41 | |||||||||||||
Net income per share: | |||||||||||||||||||||||||||
Basic | $ | — | $ | 0.27 | $ | 0.37 | $ | 0.37 | $ | 0.39 | $ | 0.58 | $ | 1.02 | |||||||||||||
Diluted | $ | — | $ | 0.27 | $ | 0.37 | $ | 0.37 | $ | 0.39 | $ | 0.57 | $ | 1.02 | |||||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | |||||||||||||
Weighted average shares outstanding | 26,555,626 | 19,603,310 | 19,578,438 | 19,525,701 | 19,506,609 | 21,929,403 | 19,709,322 | ||||||||||||||||||||
Period end shares outstanding | 26,558,412 | 19,557,958 | 19,592,798 | 19,530,930 | 19,502,613 | 26,558,412 | 19,502,613 | ||||||||||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||
Consolidated Selected Financial Data | |||||||||||||||||||||||||||
September 30, 2016 | |||||||||||||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
Profitability Ratios (annualized) | 9/30/2016 | 6/30/2016 | 3/31/2016 | 12/31/2015 | 9/30/2015 | 9/30/2016 | 9/30/2015 | ||||||||||||||||||||
Return on average assets | 0.01 | % | 0.74 | % | 1.03 | % | 0.99 | % | 1.06 | % | 0.51 | % | 0.98 | % | |||||||||||||
Return on average assets, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 0.88 | % | 0.90 | % | 1.07 | % | 1.06 | % | 1.06 | % | 0.94 | % | 1.09 | % | |||||||||||||
Return on average shareholders' equity | 0.05 | % | 5.72 | % | 8.05 | % | 7.88 | % | 8.36 | % | 4.07 | % | 7.48 | % | |||||||||||||
Return on average shareholder's equity, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 7.24 | % | 6.99 | % | 8.29 | % | 8.42 | % | 8.36 | % | 7.47 | % | 8.36 | % | |||||||||||||
Return on average tangible common equity, excluding integration and acquisition-related costs and restructuring charges (1), (2) | 11.54 | % | 10.56 | % | 12.63 | % | 12.92 | % | 12.91 | % | 11.57 | % | 12.84 | % | |||||||||||||
Net interest margin (FTE) | 3.68 | % | 3.93 | % | 3.91 | % | 3.80 | % | 3.89 | % | 3.82 | % | 4.02 | % | |||||||||||||
Efficiency ratio (3) | 96.45 | % | 75.22 | % | 69.23 | % | 68.10 | % | 66.96 | % | 81.54 | % | 69.66 | % | |||||||||||||
Efficiency ratio, excluding integration and acquisition-related costs and restructuring charges (1), (3), (4) | 67.63 | % | 72.20 | % | 68.67 | % | 66.67 | % | 66.96 | % | 69.36 | % | 66.47 | % | |||||||||||||
Capitalization Ratios | |||||||||||||||||||||||||||
Dividends declared to net income | N/M | 74.64 | % | 53.62 | % | 54.08 | % | 51.79 | % | 104.27 | % | 58.68 | % | ||||||||||||||
Shareholders' equity to assets (Period End) | 12.30 | % | 11.88 | % | 12.99 | % | 12.56 | % | 12.59 | % | 12.30 | % | 12.59 | % | |||||||||||||
Tangible common equity to tangible assets | 8.10 | % | 8.21 | % | 8.97 | % | 8.58 | % | 8.56 | % | 8.10 | % | 8.56 | % | |||||||||||||
Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||
Tier 1 leverage ratio | 8.80 | % | 9.90 | % | 9.93 | % | 9.69 | % | 9.75 | % | 8.80 | % | 9.75 | % | |||||||||||||
Common equity tier 1 risk-based capital ratio | 9.58 | % | 10.24 | % | 10.81 | % | 10.65 | % | 10.85 | % | 9.58 | % | 10.85 | % | |||||||||||||
Tier 1 risk-based capital ratio | 9.58 | % | 10.24 | % | 10.81 | % | 10.65 | % | 10.85 | % | 9.58 | % | 10.85 | % | |||||||||||||
Total risk-based capital ratio | 12.64 | % | 12.77 | % | 13.47 | % | 13.35 | % | 13.69 | % | 12.64 | % | 13.69 | % | |||||||||||||
(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 | $ | 14,064 | $ | 1,185 | $ | 220 | $ | 546 | $ | — | $ | 15,469 | $ | 3,633 | |||||||||||||
Tax effect on integration and acquisition-related cost and restructuring charges | 4,910 | 22 | 2 | 49 | — | 4,934 | 1,270 | ||||||||||||||||||||
(b) Integration and acquisition-related costs and restructuring charges, net of tax | $ | 9,154 | $ | 1,163 | $ | 218 | $ | 497 | $ | — | $ | 10,535 | $ | 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. | |||||||||||||||||||||||||||
N/M Not Meaningful | |||||||||||||||||||||||||||
Univest Corporation of Pennsylvania | |||||||||||||||||||||||
Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
Tax Equivalent Basis | September 30, 2016 | June 30, 2016 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 16,248 | $ | 14 | 0.34 | % | $ | 7,654 | $ | 9 | 0.47 | % | |||||||||||
U.S. government obligations | 43,622 | 125 | 1.14 | 57,776 | 176 | 1.23 | |||||||||||||||||
Obligations of state and political subdivisions | 96,581 | 1,030 | 4.24 | 101,241 | 1,092 | 4.34 | |||||||||||||||||
Other debt and equity securities | 363,587 | 1,358 | 1.49 | 143,475 | 1,012 | 2.84 | |||||||||||||||||
Federal funds sold and other earning assets (1) | 18,987 | 321 | 6.73 | 11,018 | 121 | 4.42 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 539,025 | 2,848 | 2.10 | 321,164 | 2,410 | 3.02 | |||||||||||||||||
Commercial, financial, and agricultural loans | 674,569 | 6,571 | 3.88 | 436,189 | 4,132 | 3.81 | |||||||||||||||||
Real estate—commercial and construction loans | 1,382,947 | 15,816 | 4.55 | 898,494 | 10,106 | 4.52 | |||||||||||||||||
Real estate—residential loans | 710,814 | 7,887 | 4.41 | 557,733 | 6,141 | 4.43 | |||||||||||||||||
Loans to individuals | 31,416 | 415 | 5.26 | 30,301 | 408 | 5.42 | |||||||||||||||||
Municipal loans and leases | 288,391 | 3,030 | 4.18 | 241,507 | 2,723 | 4.53 | |||||||||||||||||
Lease financings | 76,136 | 1,547 | 8.08 | 75,450 | 1,524 | 8.12 | |||||||||||||||||
Gross loans and leases | 3,164,273 | 35,266 | 4.43 | 2,239,674 | 25,034 | 4.50 | |||||||||||||||||
Total interest-earning assets | 3,703,298 | 38,114 | 4.09 | 2,560,838 | 27,444 | 4.31 | |||||||||||||||||
Cash and due from banks | 40,835 | 32,647 | |||||||||||||||||||||
Reserve for loan and lease losses | (17,110 | ) | (16,789 | ) | |||||||||||||||||||
Premises and equipment, net | 61,361 | 43,990 | |||||||||||||||||||||
Other assets | 359,084 | 233,875 | |||||||||||||||||||||
Total assets | $ | 4,147,468 | $ | 2,854,561 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 389,079 | $ | 114 | 0.12 | $ | 351,011 | $ | 75 | 0.09 | |||||||||||||
Money market savings | 483,579 | 428 | 0.35 | 337,250 | 322 | 0.38 | |||||||||||||||||
Regular savings | 793,644 | 352 | 0.18 | 644,199 | 199 | 0.12 | |||||||||||||||||
Time deposits | 606,561 | 1,187 | 0.78 | 374,936 | 862 | 0.92 | |||||||||||||||||
Total time and interest-bearing deposits | 2,272,863 | 2,081 | 0.36 | 1,707,396 | 1,458 | 0.34 | |||||||||||||||||
Short-term borrowings | 229,282 | 276 | 0.48 | 53,874 | 320 | 2.39 | |||||||||||||||||
Long-term debt (2) | 93,188 | 218 | 0.93 | — | — | — | |||||||||||||||||
Subordinated notes (3) | 94,035 | 1,261 | 5.33 | 49,431 | 673 | 5.48 | |||||||||||||||||
Total borrowings | 416,505 | 1,755 | 1.68 | 103,305 | 993 | 3.87 | |||||||||||||||||
Total interest-bearing liabilities | 2,689,368 | 3,836 | 0.57 | 1,810,701 | 2,451 | 0.54 | |||||||||||||||||
Noninterest-bearing deposits | 904,197 | 633,563 | |||||||||||||||||||||
Accrued expenses and other liabilities | 47,439 | 41,831 | |||||||||||||||||||||
Total liabilities | 3,641,004 | 2,486,095 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 144,559 | 110,271 | |||||||||||||||||||||
Additional paid-in capital | 229,319 | 121,070 | |||||||||||||||||||||
Retained earnings and other equity | 132,586 | 137,125 | |||||||||||||||||||||
Total shareholders' equity | 506,464 | 368,466 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,147,468 | $ | 2,854,561 | |||||||||||||||||||
Net interest income | $ | 34,278 | $ | 24,993 | |||||||||||||||||||
Net interest spread | 3.52 | 3.77 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.16 | 0.16 | |||||||||||||||||||||
Net interest margin | 3.68 | % | 3.93 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 137.70 | % | 141.43 | % | |||||||||||||||||||
(1) Other earning assets include Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost. | |||||||||||||||||||||||
(2) The average interest rate on long-term debt includes the net accretion of acquisition accounting fair value adjustments. | |||||||||||||||||||||||
(3) The interest rate on subordinated notes is calculated on a 30/360 day basis with a weighted average note rate of 5.05% and 5.10% for the three months ended September 30, 2016 and June 30, 2016, respectively. 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 September 30, 2016 and June 30, 2016 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 Three Months Ended September 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 | $ | 16,248 | $ | 14 | 0.34 | % | $ | 50,514 | $ | 21 | 0.16 | % | |||||||||||
U.S. government obligations | 43,622 | 125 | 1.14 | 119,712 | 345 | 1.14 | |||||||||||||||||
Obligations of state and political subdivisions | 96,581 | 1,030 | 4.24 | 109,300 | 1,335 | 4.85 | |||||||||||||||||
Other debt and equity securities | 363,587 | 1,358 | 1.49 | 139,825 | 859 | 2.44 | |||||||||||||||||
Federal funds sold and other earning assets (1) | 18,987 | 321 | 6.73 | 8,998 | 119 | 5.25 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 539,025 | 2,848 | 2.10 | 428,349 | 2,679 | 2.48 | |||||||||||||||||
Commercial, financial, and agricultural loans | 674,569 | 6,571 | 3.88 | 423,912 | 4,219 | 3.95 | |||||||||||||||||
Real estate—commercial and construction loans | 1,382,947 | 15,816 | 4.55 | 857,181 | 9,942 | 4.60 | |||||||||||||||||
Real estate—residential loans | 710,814 | 7,887 | 4.41 | 509,599 | 5,786 | 4.50 | |||||||||||||||||
Loans to individuals | 31,416 | 415 | 5.26 | 28,957 | 388 | 5.32 | |||||||||||||||||
Municipal loans and leases | 288,391 | 3,030 | 4.18 | 205,302 | 2,450 | 4.73 | |||||||||||||||||
Lease financings | 76,136 | 1,547 | 8.08 | 73,056 | 1,555 | 8.44 | |||||||||||||||||
Gross loans and leases | 3,164,273 | 35,266 | 4.43 | 2,098,007 | 24,340 | 4.60 | |||||||||||||||||
Total interest-earning assets | 3,703,298 | 38,114 | 4.09 | 2,526,356 | 27,019 | 4.24 | |||||||||||||||||
Cash and due from banks | 40,835 | 35,419 | |||||||||||||||||||||
Reserve for loan and lease losses | (17,110 | ) | (20,494 | ) | |||||||||||||||||||
Premises and equipment, net | 61,361 | 40,852 | |||||||||||||||||||||
Other assets | 359,084 | 222,445 | |||||||||||||||||||||
Total assets | $ | 4,147,468 | $ | 2,804,578 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 389,079 | $ | 114 | 0.12 | $ | 375,362 | $ | 77 | 0.08 | |||||||||||||
Money market savings | 483,579 | 428 | 0.35 | 361,530 | 318 | 0.35 | |||||||||||||||||
Regular savings | 793,644 | 352 | 0.18 | 590,331 | 134 | 0.09 | |||||||||||||||||
Time deposits | 606,561 | 1,187 | 0.78 | 463,524 | 1,014 | 0.87 | |||||||||||||||||
Total time and interest-bearing deposits | 2,272,863 | 2,081 | 0.36 | 1,790,747 | 1,543 | 0.34 | |||||||||||||||||
Short-term borrowings | 229,282 | 276 | 0.48 | 30,520 | 10 | 0.13 | |||||||||||||||||
Long-term debt (2) | 93,188 | 218 | 0.93 | — | — | — | |||||||||||||||||
Subordinated notes (3) | 94,035 | 1,261 | 5.33 | 49,321 | 667 | 5.37 | |||||||||||||||||
Total borrowings | 416,505 | 1,755 | 1.68 | 79,841 | 677 | 3.36 | |||||||||||||||||
Total interest-bearing liabilities | 2,689,368 | 3,836 | 0.57 | 1,870,588 | 2,220 | 0.47 | |||||||||||||||||
Noninterest-bearing deposits | 904,197 | 534,302 | |||||||||||||||||||||
Accrued expenses and other liabilities | 47,439 | 42,538 | |||||||||||||||||||||
Total liabilities | 3,641,004 | 2,447,428 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 144,559 | 110,271 | |||||||||||||||||||||
Additional paid-in capital | 229,319 | 120,770 | |||||||||||||||||||||
Retained earnings and other equity | 132,586 | 126,109 | |||||||||||||||||||||
Total shareholders' equity | 506,464 | 357,150 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,147,468 | $ | 2,804,578 | |||||||||||||||||||
Net interest income | $ | 34,278 | $ | 24,799 | |||||||||||||||||||
Net interest spread | 3.52 | 3.77 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.16 | 0.12 | |||||||||||||||||||||
Net interest margin | 3.68 | % | 3.89 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 137.70 | % | 135.06 | % | |||||||||||||||||||
(1) Other earning assets include Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost. | |||||||||||||||||||||||
(2) The average interest rate on long-term debt includes the net accretion of acquisition accounting fair value adjustments. | |||||||||||||||||||||||
(3) The interest rate on subordinated notes is calculated on a 30/360 day basis with a weighted average note rate of 5.05% and 5.10% for the three months ended September 30, 2016 and 2015, respectively. 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 September 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 Nine Months Ended September 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 | $ | 14,514 | $ | 51 | 0.47 | % | $ | 25,957 | $ | 37 | 0.19 | % | |||||||||||
U.S. government obligations | 61,231 | 551 | 1.20 | 129,646 | 1,075 | 1.11 | |||||||||||||||||
Obligations of state and political subdivisions | 99,617 | 3,251 | 4.36 | 107,807 | 4,011 | 4.97 | |||||||||||||||||
Other debt and equity securities | 222,427 | 3,394 | 2.04 | 137,747 | 2,267 | 2.20 | |||||||||||||||||
Federal funds sold and other earning assets (1) | 14,956 | 573 | 5.12 | 10,256 | 402 | 5.24 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 412,745 | 7,820 | 2.53 | 411,413 | 7,792 | 2.53 | |||||||||||||||||
Commercial, financial, and agricultural loans | 508,195 | 14,717 | 3.87 | 426,997 | 12,951 | 4.06 | |||||||||||||||||
Real estate—commercial and construction loans | 1,057,379 | 35,841 | 4.53 | 841,930 | 29,486 | 4.68 | |||||||||||||||||
Real estate—residential loans | 603,900 | 20,004 | 4.42 | 488,646 | 16,789 | 4.59 | |||||||||||||||||
Loans to individuals | 30,402 | 1,222 | 5.37 | 29,570 | 1,184 | 5.35 | |||||||||||||||||
Municipal loans and leases | 253,925 | 8,378 | 4.41 | 204,748 | 7,318 | 4.78 | |||||||||||||||||
Lease financings | 75,538 | 4,613 | 8.16 | 71,368 | 4,673 | 8.75 | |||||||||||||||||
Gross loans and leases | 2,529,339 | 84,775 | 4.48 | 2,063,259 | 72,401 | 4.69 | |||||||||||||||||
Total interest-earning assets | 2,942,084 | 92,595 | 4.20 | 2,474,672 | 80,193 | 4.33 | |||||||||||||||||
Cash and due from banks | 35,070 | 32,768 | |||||||||||||||||||||
Reserve for loan and lease losses | (17,223 | ) | (20,983 | ) | |||||||||||||||||||
Premises and equipment, net | 49,451 | 40,618 | |||||||||||||||||||||
Other assets | 272,087 | 218,692 | |||||||||||||||||||||
Total assets | $ | 3,281,469 | $ | 2,745,767 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 380,780 | $ | 273 | 0.10 | $ | 364,006 | $ | 190 | 0.07 | |||||||||||||
Money market savings | 394,532 | 1,090 | 0.37 | 360,473 | 857 | 0.32 | |||||||||||||||||
Regular savings | 688,630 | 725 | 0.14 | 578,478 | 392 | 0.09 | |||||||||||||||||
Time deposits | 467,192 | 2,984 | 0.85 | 456,726 | 2,966 | 0.87 | |||||||||||||||||
Total time and interest-bearing deposits | 1,931,134 | 5,072 | 0.35 | 1,759,683 | 4,405 | 0.33 | |||||||||||||||||
Short-term borrowings | 103,974 | 599 | 0.77 | 40,902 | 33 | 0.11 | |||||||||||||||||
Long-term debt (2) | 31,290 | 218 | 0.93 | — | — | — | |||||||||||||||||
Subordinated notes (3) | 64,395 | 2,609 | 5.41 | 33,411 | 1,349 | 5.40 | |||||||||||||||||
Total borrowings | 199,659 | 3,426 | 2.29 | 74,313 | 1,382 | 2.49 | |||||||||||||||||
Total interest-bearing liabilities | 2,130,793 | 8,498 | 0.53 | 1,833,996 | 5,787 | 0.42 | |||||||||||||||||
Noninterest-bearing deposits | 694,165 | 509,002 | |||||||||||||||||||||
Accrued expenses and other liabilities | 43,163 | 43,312 | |||||||||||||||||||||
Total liabilities | 2,868,121 | 2,386,310 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 121,784 | 110,271 | |||||||||||||||||||||
Additional paid-in capital | 157,334 | 120,409 | |||||||||||||||||||||
Retained earnings and other equity | 134,230 | 128,777 | |||||||||||||||||||||
Total shareholders' equity | 413,348 | 359,457 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 3,281,469 | $ | 2,745,767 | |||||||||||||||||||
Net interest income | $ | 84,097 | $ | 74,406 | |||||||||||||||||||
Net interest spread | 3.67 | 3.91 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.15 | 0.11 | |||||||||||||||||||||
Net interest margin | 3.82 | % | 4.02 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 138.07 | % | 134.93 | % | |||||||||||||||||||
(1) Other earning assets include Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost. | |||||||||||||||||||||||
(2) The average interest rate on long-term debt includes the net accretion of acquisition accounting fair value adjustments. | |||||||||||||||||||||||
(3) The interest rate on subordinated notes is calculated on a 30/360 day basis with a weighted average note rate of 5.08% and 5.10% for the nine months ended September 30, 2016 and 2015, respectively. 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 nine months ended September 30, 2016 and 2015 have been calculated using the Corporation’s federal applicable rate of 35.0%. | |||||||||||||||||||||||