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Univest Corporation of Pennsylvania Reports First Quarter Results

Company Release - 4/25/2018 4:30 PM ET

SOUDERTON, Pa., April 25, 2018 (GLOBE NEWSWIRE) -- Univest Corporation of Pennsylvania (“Univest” or the “Corporation”) (NASDAQ:UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced financial results for the first quarter ended March 31, 2018. Univest reported net income of $12.9 million, or $0.44 diluted earnings per share for the quarter ended March 31, 2018, compared to net income of $10.9 million, or $0.41 diluted earnings per share, for the quarter ended March 31, 2017.

The financial results for the quarter ended March 31, 2018 included restructuring costs related to financial center closures of $451 thousand, net of tax, or $0.01 of diluted earnings per share. There were no restructuring costs during the quarter ended March 31, 2017. The financial results for the quarter ended March 31, 2018 also included a reduction in the Corporation's statutory federal income tax rate from 35% to 21% effective January 1, 2018 in accordance with the Tax Cuts and Jobs Act of 2017 (“TCJA”).

Loans
Gross loans and leases increased $69.8 million, or 7.7% (annualized), from December 31, 2017 and $348.0 million, or 10.4%, from March 31, 2017. The growth in loans from December 31, 2017 and March 31, 2017 was primarily in commercial real estate, commercial business and residential real estate loans.

Deposits
Total deposits decreased $57.6 million, or 6.5% (annualized), from December 31, 2017 and increased $131.3 million, or 3.9%, from March 31, 2017. The growth in deposits compared to March 31, 2017 was primarily due to increases in commercial and public funds deposits.

Net Interest Income and Margin
Net interest income of $37.3 million for the first quarter of 2018 increased $566 thousand, or 1.5%, from the fourth quarter of 2017 and $3.0 million, or 8.7%, from the first quarter of 2017. The increase in net interest income for the first quarter of 2018 as compared to the first quarter of 2017 was primarily due to the growth in loans during the last year.

Net interest margin, on a tax-equivalent basis, was 3.72% for the first quarter of 2018, compared to 3.76% for the fourth quarter of 2017 and 3.80% for the first quarter of 2017. The favorable impact of purchase accounting accretion was 2 basis points ($146 thousand) for the quarter ended March 31, 2018 compared to 4 basis points ($449 thousand) for the quarter ended December 31, 2017 and 8 basis points ($764 thousand) for the quarter ended March 31, 2017. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.70% for the quarter ended March 31, 2018 compared to 3.72% for both the quarters ended December 31, 2017 and March 31, 2017.

Net interest margin, on a tax-equivalent basis, for all periods in 2017 was calculated using a 35% federal tax rate as compared to a 21% federal tax rate for the first quarter of 2018. Assuming a 21% federal tax rate and excluding purchase accounting, net interest margin was 3.64% for both the quarters ended December 31, 2017 and March 31, 2017.

Noninterest Income
Noninterest income for the quarter ended March 31, 2018 was $15.6 million, an increase of $612 thousand, or 4.1%, from the first quarter of 2017. Investment advisory commission and fee income increased $502 thousand, or 15.8%, for the quarter ended March 31, 2018 primarily due to new customer relationships and favorable market performance during 2017. Insurance commission and fee income increased $478 thousand, or 10.8%, for the quarter ended March 31, 2018, primarily due to an increase in contingent commission income of $422 thousand, which was $1.4 million for the quarter ended March 31, 2018 compared to $963 thousand for the quarter ended March 31, 2017. These increases were partially offset by a decrease in the net gain on mortgage banking of $397 thousand, or 35.7%, for the quarter ended March 31, 2018, primarily due to a decrease in mortgage volume due to a shortage of housing supply and the extended winter weather in March 2018. In addition, BOLI income decreased $114 thousand, or 14.6% for the quarter ended March 31, 2018, primarily due to a decrease in value of our non-qualified annuity portfolio, which is subject to equity market volatility.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2018 was $35.1 million, an increase of $3.1 million, or 9.7%, compared to the first quarter of 2017. Restructuring costs related to financial center closures and staffing rationalization were $571 thousand for the quarter. There were no restructuring costs during the quarter ended March 31, 2017.

Salaries, benefits and commissions increased $1.9 million for the quarter ended March 31, 2018, primarily attributable to additional staff hired to support revenue generation across all business lines, expansion of our financial center footprint in Lancaster County and the Lehigh Valley and annual merit increases. Data processing expense increased $174 thousand for the quarter ended March 31, 2018 primarily due to increased investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Other expense increased $358 thousand for the quarter ended March 31, 2018 primarily due to increases in deferred director stock expense and loan processing expense.

Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, were $27.7 million at March 31, 2018, compared to $14.5 million at December 31, 2017 and $19.9 million at March 31, 2017. Nonperforming assets were $32.9 million at March 31, 2018, compared to $28.6 million at December 31, 2017 and $27.3 million at March 31, 2017. The increase in non-accrual loans and leases at March 31, 2018 is primarily due to one commercial real estate loan in the amount of $12.3 million which was placed on non-accrual status during the first quarter of 2018. This was partially offset by troubled debt restructured commercial real estate loans for another borrower totaling $10.3 million which were returned to performing status during the first quarter of 2018 as the borrower was in compliance with the modified terms of the restructuring for the required time period.

Net loan and lease charge-offs were $198 thousand during the first quarter of 2018. The provision for loan and lease losses was $2.1 million for the first quarter of 2018.

The allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding covered loans acquired in the Fox Chase and Valley Green Bank acquisitions, which were recorded at fair value as of the acquisition date, was 0.73% at March 31, 2018, compared to 0.70% at December 31, 2017 and 0.74% at March 31, 2017.

Tax Provision
The effective income tax rate was 18.0% for the quarter ended March 31, 2018 compared to an effective income tax rate of 26.5% for the quarter ended March 31, 2017. As previously discussed, the Corporation's statutory federal tax rate was reduced to 21% effective January 1, 2018 in accordance with the TCJA. The Corporation's effective income tax rate for the quarter ended March 31, 2018 was favorably impacted by discrete tax benefits totaling $118 thousand. Excluding these discrete items, the effective tax rate was 18.8% for the quarter ended March 31, 2018.

Dividend
On February 28, 2018, Univest declared a quarterly cash dividend of $0.20 per share, payable on April 2, 2018. This represented a 2.90% 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 first quarter 2018 results on Thursday, April 26, 2018 at 9:00 a.m. EDT. Participants may preregister at http://dpregister.com/10119368. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through May 26, 2018 by dialing 1-877-344-7529; using Conference ID: 10119368.

About Univest Corporation of Pennsylvania
Univest Corporation of Pennsylvania (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., has approximately $4.6 billion in assets and $3.4 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2018. 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) competitive pressures among financial institutions; (2) changes in the interest rate environment; (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 that 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 (Unaudited)
March 31, 2018
(Dollars in thousands)           
            
Balance Sheet (Period End) 03/31/18 12/31/17 09/30/17 06/30/17 03/31/17 
Assets $4,613,959 $4,554,862 $4,417,363 $4,453,527 $4,273,931 
Investment securities 462,252 454,082 443,822 469,307 464,639 
Loans held for sale 687 1,642 2,228 2,259 1,110 
Loans and leases held for investment, gross 3,689,888 3,620,067 3,487,164 3,510,170 3,341,916 
Allowance for loan and lease losses 23,410 21,555 20,543 20,910 19,528 
Loans and leases held for investment, net 3,666,478 3,598,512 3,466,621 3,489,260 3,322,388 
Total deposits 3,497,293 3,554,919 3,518,590 3,348,080 3,365,951 
Noninterest-bearing deposits 1,002,021 1,040,026 987,881 963,790 947,495 
NOW, money market and savings 1,974,769 1,940,144 1,959,549 1,837,452 1,865,280 
Time deposits 520,503 574,749 571,160 546,838 553,176 
Borrowings 466,510 355,590 332,529 542,545 355,580 
Shareholders' equity 606,719 603,374 528,798 521,306 511,880 
            
            
Balance Sheet (Average) For the three months ended, 
  03/31/18 12/31/17 09/30/17 06/30/17 03/31/17 
Assets $4,555,977 $4,442,743 $4,416,332 $4,333,689 $4,230,428 
Investment securities  457,926 456,045 459,862 468,601 470,300 
Loans and leases, gross 3,634,510 3,505,260 3,467,235 3,401,325 3,306,877 
Deposits 3,484,044 3,508,676 3,480,318 3,346,409 3,290,285 
Shareholders' equity 605,973 554,071 527,032 517,697 509,055 
            
            
Asset Quality Data (Period End)            
  03/31/18 12/31/17 09/30/17 06/30/17 03/31/17 
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases $27,694 $14,517 $15,949 $20,174 $19,856 
Accruing loans and leases 90 days or more past due 2,295 761 1,595 572 919 
Accruing troubled debt restructured loans and leases 1,032 11,435 11,468 11,470 2,818 
Total nonperforming loans and leases 31,021 26,713 29,012 32,216 23,593 
Other real estate owned 1,843 1,843 1,763 2,202 3,712 
Total nonperforming assets 32,864 28,556 30,775 34,418 27,305 
Nonaccrual loans and leases / Loans and leases held for investment 0.75%0.40%0.46%0.57%0.59%
Nonperforming loans and leases / Loans and leases held for investment 0.84%0.74%0.83%0.92%0.71%
Nonperforming assets / Total assets 0.71%0.63%0.70%0.77%0.64%
            
Allowance for loan and lease losses 23,410 21,555 20,543 20,910 19,528 
Allowance for loan and lease losses / Loans and leases held for investment  0.63%0.60%0.59%0.60%0.58%
Allowance for loan and lease losses / Loans and leases held for investment (excluding acquired loans at period-end) 0.73%0.70%0.71%0.73%0.74%
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment 84.53%148.48%128.80%103.65%98.35%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment75.47%80.69%70.81%64.91%82.77%
Acquired credit impaired loans $1,525 $1,583 $1,622 $6,485 $6,616 
            
  For the three months ended, 
  03/31/18 12/31/17 09/30/17 06/30/17 03/31/17 
Net loan and lease charge-offs $198 $980 $3,056 $1,384 $416 
Net loan and lease charge-offs (annualized)/Average loans and leases 0.02%0.11%0.35%0.16%0.05%


Univest Corporation of Pennsylvania
Consolidated Selected Financial Data (Unaudited)
March 31, 2018
(Dollars in thousands, except per share data)           
  For the three months ended, 
For the period: 03/31/18 12/31/17 09/30/17 06/30/17 03/31/17 
Interest income $43,534 $42,417 $42,172 $40,030 $38,396 
Interest expense 6,262 5,711 5,285 4,730 4,113 
Net interest income 37,272 36,706 36,887 35,300 34,283 
Provision for loan and lease losses 2,053 1,992 2,689 2,766 2,445 
Net interest income after provision  35,219 34,714 34,198 32,534 31,838 
Noninterest income:           
Trust fee income 1,996 2,208 1,924 2,016 1,907 
Service charges on deposit accounts 1,327 1,555 1,371 1,313 1,243 
Investment advisory commission and fee income 3,683 3,485 3,455 3,333 3,181 
Insurance commission and fee income 4,888 3,258 3,492 3,628 4,410 
Bank owned life insurance income 669 841 742 1,622 783 
Net gain on sales of investment securities 10 5 7 21 15 
Net gain on mortgage banking activities 716 465 908 1,537 1,113 
Other income 2,293 2,335 2,210 2,539 2,318 
Total noninterest income 15,582 14,152 14,109 16,009 14,970 
Noninterest expense:           
Salaries, benefits and commissions 20,647 19,340 19,185 18,730 18,737 
Premises and equipment 3,780 3,636 3,542 3,715 3,658 
Data processing 2,232 2,243 2,118 2,081 2,058 
Professional fees 1,355 1,391 1,447 1,248 1,239 
Marketing and advertising 381 360 271 475 379 
Deposit insurance premiums 391 374 409 451 402 
Intangible expenses 612 687 690 446 759 
Restructuring charges 571     
Other expense 5,156 5,409 5,033 5,402 4,798 
Total noninterest expense 35,125 33,440 32,695 32,548 32,030 
Income before taxes 15,676 15,426 15,612 15,995 14,778 
Income tax expense  2,826 5,162 4,416 4,217 3,922 
Net income $12,850 $10,264 $11,196 $11,778 $10,856 
Per common share data:           
Book value per share $20.68 $20.57 $19.83 $19.55 $19.21 
Net income per share:           
Basic $0.44 $0.37 $0.42 $0.44 $0.41 
Diluted $0.44 $0.37 $0.42 $0.44 $0.41 
Dividends declared per share $0.20 $0.20 $0.20 $0.20 $0.20 
Weighted average shares outstanding 29,354,887 27,481,309 26,666,460 26,661,784 26,630,698 
Period end shares outstanding 29,391,934 29,334,859 26,671,336 26,667,991 26,645,520 


Univest Corporation of Pennsylvania
Consolidated Selected Financial Data (Unaudited)
March 31, 2018
               
               
               
     For the three months ended, 
Profitability Ratios (annualized)  03/31/18 12/31/17 09/30/17 06/30/17 03/31/17 
               
Return on average assets  1.14%0.92%1.01%1.09%1.04%
Return on average assets, excluding restructuring charges (1), (2)1.18%0.92%1.01%1.09%1.04%
Return on average shareholders' equity 8.60%7.35%8.43%9.13%8.65%
Return on average shareholders' equity, excluding restructuring charges (1), (2)8.90%7.35%8.43%9.13%8.65%
Return on average tangible common equity, excluding restructuring charges (1), (2), (5)12.65%10.89%12.83%14.06%13.48%
Net interest margin (FTE)  3.72%3.76%3.80%3.76%3.80%
Efficiency ratio (3)   65.41%63.43%61.94%60.74%62.70%
Efficiency ratio, excluding restructuring charges (1), (3), (4)64.35%63.43%61.94%60.74%62.70%
               
Capitalization Ratios             
               
Dividends declared to net income  45.7%57.1%47.6%45.3%49.0%
Shareholders' equity to assets (Period End) 13.15%13.25%11.97%11.71%11.98%
Tangible common equity to tangible assets (5) 9.64%9.68%8.22%7.96%8.06%
Tangible book value per share (5)  $14.54 $14.44 $13.06 $12.75 $12.38 
Tangible book value per share - Core (5), (6) $14.90 $14.57 $13.14 $12.87 $12.56 
               
Regulatory Capital Ratios (Period End)            
Tier 1 leverage ratio   10.47%10.48%8.74%8.74%8.75%
Common equity tier 1 risk-based capital ratio 11.16%11.11%9.51%9.21%9.41%
Tier 1 risk-based capital ratio  11.16%11.11%9.51%9.21%9.41%
Total risk-based capital ratio  14.04%14.00%12.47%12.15%12.44%
               
               
(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) Restructuring charges$571 $ $ $ $ 
 Tax effect on restructuring charges120   -    -    -    -  
 (b) Restructuring charges, net of tax $451 $ $ $ $ 
            
               
(2) Net income in this ratio excludes 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 restructuring charges. See (1)(a) above.  
(5) Tangible equity represents total shareholders' equity less goodwill and other intangible assets, but includes servicing rights which were $6,605 at March 31, 2018, $6,573 at December 31, 2017, $6,556 at September 30, 2017, $6,548 at June 30, 2017 and $6,502 at March 31, 2017. 
(6) Tangible equity as defined in (5), excluding the impact of accumulated other comprehensive (loss) income on available-for-sale investment securities, net ($10,477) at March 31, 2018, ($4,061) at December 31, 2017, ($2,364) at September 30, 2017, ($3,028) at June 30, 2017 and ($4,726) at March 31, 2017), divided by total shares outstanding.
N/MNot meaningful  


Univest Corporation of Pennsylvania 
Average Balances and Interest Rates (Unaudited) 
  For the Three Months Ended,   
Tax Equivalent BasisMarch 31, 2018 December 31, 2017 
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$ 19,184 $ 761.61% $ 33,557 $ 921.09%
U.S. government obligations23,921941.59 24,039941.55 
Obligations of state and political subdivisions74,5545933.23 79,7088444.20 
Other debt and equity securities359,4512,0952.36 352,2981,8732.11 
Federal funds sold and other earning assets29,0575047.03 27,7193715.31 
Total interest-earning deposits, investments, federal funds sold and other earning assets506,1673,3622.69 517,3213,2742.51 
         
Commercial, financial, and agricultural loans782,2008,9004.61 752,7508,6084.54 
Real estate—commercial and construction loans1,600,39417,6184.46 1,566,94417,7984.51 
Real estate—residential loans837,4959,6754.69 802,0139,0974.50 
Loans to individuals27,9604135.99 27,2994146.02 
Municipal loans and leases311,7522,8923.76 285,8213,3434.64 
Lease financings74,7091,3447.30 70,4331,3037.34 
Gross loans and leases3,634,51040,8424.56 3,505,26040,5634.59 
Total interest-earning assets4,140,67744,2044.33 4,022,58143,8374.32 
Cash and due from banks42,506   44,922   
Reserve for loan and lease losses(22,022)   (20,734)   
Premises and equipment, net61,738   63,119   
Other assets333,078   332,855   
Total assets$4,555,977    $4,442,743   
         
Liabilities:        
Interest-bearing checking deposits$ 425,027 $ 2920.28  $ 439,397 $ 1720.16 
Money market savings658,3671,3430.83 649,8611,2130.74 
Regular savings834,3755570.27 841,2236480.31 
Time deposits541,4781,4991.12 567,9821,5241.06 
Total time and interest-bearing deposits2,459,2473,6910.61 2,498,4633,5570.56 
         
Short-term borrowings175,8246451.49 61,5241480.95 
Long-term debt155,7656651.73 188,4667451.57 
Subordinated notes94,3591,2615.42 94,2981,2615.31 
Total borrowings425,9482,5712.45 344,2882,1542.48 
Total interest-bearing liabilities2,885,1956,2620.88 2,842,7515,7110.80 
Noninterest-bearing deposits1,024,797   1,010,213   
Accrued expenses and other liabilities40,012   35,708   
Total liabilities3,950,004   3,888,672   
         
Shareholders' Equity:        
Common stock157,784   148,546   
Additional paid-in capital290,209   249,778   
Retained earnings and other equity157,980   155,747   
Total shareholders' equity605,973   554,071   
Total liabilities and shareholders' equity$4,555,977    $4,442,743   
Net interest income  $37,942    $38,126  
         
Net interest spread  3.45   3.52 
Effect of net interest-free funding sources  0.27   0.24 
Net interest margin  3.72% 3.76%
Ratio of average interest-earning assets to average interest-bearing liabilities 143.51%   141.50%   


Note 1:                         In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures determined by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered a substitute for GAAP basis financial information and measures. Management believes the presentation of the non-GAAP financial information and measures provide useful information that is essential to a proper understanding of the financial results of the Corporation.
  
Note 2:                         For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and 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 March 31, 2018 and December 31, 2017 have been calculated using the Corporation’s federal applicable rate of 21.0% and 35.0%, respectively.

 

Univest Corporation of Pennsylvania 
Average Balances and Interest Rates (Unaudited) 
  For the Three Months Ended March 31,   
Tax Equivalent Basis 2018   2017  
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$  19,184 $  76  1.61% $  8,592 $  16  0.76%
U.S. government obligations  23,921  94  1.59   34,038  106  1.26 
Obligations of state and political subdivisions  74,554  593  3.23   85,854  922  4.36 
Other debt and equity securities  359,451  2,095  2.36   350,408  1,582  1.83 
Federal funds sold and other earning assets  29,057  504  7.03   25,909  358  5.60 
Total interest-earning deposits, investments, federal funds sold and other earning assets  506,167  3,362  2.69   504,801  2,984  2.40 
         
Commercial, financial, and agricultural loans  782,200  8,900  4.61   721,050  7,841  4.41 
Real estate—commercial and construction loans  1,600,394  17,618  4.46   1,460,029  15,740  4.37 
Real estate—residential loans  837,495  9,675  4.69   738,211  8,236  4.52 
Loans to individuals  27,960  413  5.99   29,575  400  5.49 
Municipal loans and leases  311,752  2,892  3.76   279,379  3,120  4.53 
Lease financings  74,709  1,344  7.30   78,633  1,483  7.65 
Gross loans and leases  3,634,510  40,842  4.56   3,306,877  36,820  4.52 
Total interest-earning assets  4,140,677  44,204  4.33   3,811,678  39,804  4.24 
Cash and due from banks  42,506     41,942   
Reserve for loan and lease losses  (22,022)     (18,200)   
Premises and equipment, net  61,738     64,507   
Other assets  333,078     330,501   
Total assets$ 4,555,977    $ 4,230,428   
         
Liabilities:        
Interest-bearing checking deposits$  425,027 $  292  0.28 $  426,373 $  105  0.10%
Money market savings  658,367  1,343  0.83   531,658  563  0.43 
Regular savings  834,375  557  0.27   807,802  349  0.18 
Time deposits  541,478  1,499  1.12   591,813  1,174  0.80 
Total time and interest-bearing deposits  2,459,247  3,691  0.61   2,357,646  2,191  0.38 
         
Short-term borrowings  175,824  645  1.49   150,155  262  0.71 
Long-term debt  155,765  665  1.73   148,031  399  1.09 
Subordinated notes  94,359  1,261  5.42   94,116  1,261  5.43 
Total borrowings  425,948  2,571  2.45   392,302  1,922  1.99 
Total interest-bearing liabilities  2,885,195  6,262  0.88   2,749,948  4,113  0.61 
Noninterest-bearing deposits  1,024,797     932,639   
Accrued expenses and other liabilities  40,012     38,786   
Total liabilities  3,950,004     3,721,373   
         
Shareholders' Equity:        
Common stock  157,784     144,559   
Additional paid-in capital  290,209     230,104   
Retained earnings and other equity  157,980     134,392   
Total shareholders' equity  605,973     509,055   
Total liabilities and shareholders' equity$4,555,977    $4,230,428   
Net interest income  $37,942    $35,691  
         
Net interest spread    3.45     3.63 
Effect of net interest-free funding sources    0.27     0.17 
Net interest margin    3.72%   3.80%
Ratio of average interest-earning assets to average interest-bearing liabilities 143.51%   138.61%   


Note 1:                         In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures determined by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered a substitute for GAAP basis financial information and measures. Management believes the presentation of the non-GAAP financial information and measures provide useful information that is essential to a proper understanding of the financial results of the Corporation.
  
Note 2: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and 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 March 31, 2018 and 2017 have been calculated using the Corporation’s federal applicable rate of 21.0% and 35.0%, respectively.
CONTACT:
Roger Deacon
UNIVEST CORPORATION OF PENNSYLVANIA
Chief Financial Officer
215-721-2455
DeaconR@univest.net

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Source: Univest Corporation of Pennsylvania
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