SOUDERTON, PA--(Marketwired - Apr 24, 2013) - Univest Corporation of Pennsylvania ("Univest") (
Loans Gross loans and leases increased $5.5 million from December 31, 2012 and $27.5 million from March 31, 2012. The growth in loans from the previous consecutive quarter occurred primarily in commercial loans, while the growth from the comparable quarter in the prior year occurred mainly in residential mortgages and equipment financing. While Univest continued to see increased loan activity during 2013, overall credit demand and utilization of lines by businesses and consumers remained light as a result of the sluggish economy.
Deposits Total deposits grew $84.6 million from March 31, 2012, primarily due to an increase in demand deposits and new customers choosing Univest. Total deposits declined $50.7 million from December 31, 2012, mainly due to a decrease in public fund deposits of $38.9 million.
Net Interest Income and Margin Net interest income decreased $221 thousand or 1% to $17.9 million in the first quarter of 2013 compared to the first quarter of 2012. The net interest margin on a tax-equivalent basis for the first quarter of 2013 was 3.83%, compared to 3.80% during the fourth quarter of 2012 and 3.95% in the first quarter of 2012.
The declines in net interest income and net interest margin during the first quarter of 2013 from the comparable period in the prior year were primarily due to the re-investment of maturing and called investment securities into lower yielding investments as a result of the lower interest rate environment and lower rates on commercial and residential real estate loans due to re-pricing and competitive pressures. The declines in net interest income and net interest margin were partially offset by favorable re-pricing of savings accounts and certificates of deposit.
Non-Interest Income Non-interest income for the quarter ended March 31, 2013 was $11.5 million, an increase of $454 thousand or 4% from the comparable period in the prior year. Insurance commission and fee income was up $451 thousand, primarily a result of the acquisition of Javers Group on May 31, 2012. Investment advisory commission and fee income was up $445 thousand, primarily due to a 16.3% increase in assets under supervision. The net gain on mortgage banking activities increased $424 thousand during the first quarter of 2013 over the same period in 2012 as refinance volume continues to be strong. Partially offsetting these favorable variances were proceeds from bank owned life insurance death benefits of $989 thousand recognized during the first quarter of 2012.
Non-Interest Expense Non-interest expense for the first quarter of 2013 was $20.2 million, an increase of $1.4 million or 7% compared to the first quarter of 2012. Commission expense increased $693 thousand in the first quarter of 2013 compared to the same period in the prior year mainly related to increased production activity and revenues generated in our mortgage banking, equipment finance, investment and insurance businesses. During the first quarter of 2013, Univest implemented a company-wide restructuring plan which reduced staffing levels by 3.4% and included the announced closure and consolidation of our Silverdale financial service center, effective May 2013, into our Hilltown and Perkasie locations. As a result, Univest recorded severance and fixed asset retirement expenses of $437 thousand and $102 thousand, respectively. The restructuring involved strategic changes to ensure we are effectively managing costs, improving efficiencies and evolving the business to meet the needs of all of our stakeholders.
Asset Quality and Provision for Loan and Lease Losses Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $28.9 million at March 31, 2013 from $32.1 million at December 31, 2012 and $36.3 million at March 31, 2012. The decrease in non-accrual loans from December 31, 2012 was mainly due to the foreclosure of commercial loans for two borrower relationships totaling $1.7 million and loan charge-offs. Net loan and lease charge-offs were $1.6 million during the first quarter of 2013, down from $3.4 million for the first quarter of 2012.
Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 1.94% at March 31, 2013, compared to 2.17% at December 31, 2012 and 2.48% at March 31, 2012. Other real estate owned was $3.6 million at March 31, 2013, compared to $1.6 million at December 31, 2012 and $5.0 million at March 31, 2012. The year-to-date increase was primarily due to the addition of commercial properties for $1.7 million, as previously discussed. Of the other real estate owned properties held at March 31, 2013, two locations with an associated carrying balance of $2.0 million are currently under agreements of sale.
The provision for loan and lease losses was $2.1 million for the first quarter of 2013, compared to $4.1 million for the quarter ended March 31, 2012. The decrease in the year-to-date provision was primarily the result of migration and resolution of loans through the loan workout process and a decrease in loss factors for commercial real estate loans. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.70% at March 31, 2013, compared to 1.67% at December 31, 2012 and 2.10% at March 31, 2012. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 87.31% at March 31, 2013, compared to 77.01% at December 31, 2012 and 84.36% at March 31, 2012.
Capital Univest continues to remain well-capitalized at March 31, 2013. Total risk-based capital at March 31, 2013 was 15.37%, well in excess of the regulatory minimum for well capitalized status of 10%.
During the quarter, Univest repurchased 61 thousand shares of common stock at a cost of $1.0 million under our Board approved stock repurchase program. Shares available for future repurchases under the plan totaled 481 thousand at March 31, 2013. Total shares outstanding at March 31, 2013 were 16,762,695.
Dividend On February 27, 2013, Univest declared a quarterly cash dividend of $0.20 per share, payable on April 1, 2013. This represented a 4.70% annualized yield based on the closing price of Univest's stock on the date the dividend was paid.
About Univest Corporation of Pennsylvania Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania ( www.univest.net ) and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, Montgomery and Lehigh counties . For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visit www.univest.net .
This press release of Univest Corporation 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 banking 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 | |||||||||||||||
| March 31, 2013 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||
| Balance Sheet (Period End) | 03/31/13 | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | ||||||||||
| Assets | $ | 2,263,036 | $ | 2,304,841 | $ | 2,232,081 | $ | 2,188,727 | $ | 2,192,164 | |||||
| Investment securities | 508,751 | 499,579 | 515,256 | 439,092 | 451,433 | ||||||||||
| Loans held for sale | 3,606 | 4,530 | 6,146 | 1,333 | 2,535 | ||||||||||
| Loans and leases held for investment, gross | 1,487,375 | 1,481,862 | 1,469,511 | 1,465,449 | 1,459,830 | ||||||||||
| Allowance for loan and lease losses | 25,222 | 24,746 | 27,096 | 30,502 | 30,597 | ||||||||||
| Loans and leases held for investment, net | 1,462,153 | 1,457,116 | 1,442,415 | 1,434,947 | 1,429,233 | ||||||||||
| Total deposits | 1,814,610 | 1,865,333 | 1,777,930 | 1,743,922 | 1,730,030 | ||||||||||
| Noninterest-bearing deposits | 380,447 | 368,948 | 334,856 | 334,828 | 307,769 | ||||||||||
| NOW, money market and savings | 1,127,643 | 1,164,874 | 1,101,147 | 1,052,217 | 1,029,145 | ||||||||||
| Time deposits | 306,520 | 331,511 | 341,927 | 356,877 | 393,116 | ||||||||||
| Borrowings | 124,895 | 117,276 | 132,920 | 121,878 | 144,208 | ||||||||||
| Shareholders' equity | 284,784 | 284,277 | 281,589 | 277,316 | 275,525 | ||||||||||
| Balance Sheet (Average) | For the three months ended, | ||||||||||||||
| 03/31/13 | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | |||||||||||
| Assets | $ | 2,233,147 | $ | 2,264,863 | $ | 2,214,283 | $ | 2,173,698 | $ | 2,180,451 | |||||
| Investment securities | 497,032 | 499,017 | 474,523 | 450,482 | 457,511 | ||||||||||
| Loans and leases, gross | 1,484,043 | 1,478,156 | 1,465,897 | 1,460,275 | 1,457,320 | ||||||||||
| Deposits | 1,790,108 | 1,823,707 | 1,771,454 | 1,726,441 | 1,724,310 | ||||||||||
| Shareholders' equity | 285,558 | 286,980 | 280,172 | 277,621 | 275,071 | ||||||||||
| Asset Quality Data (Period End) | |||||||||||||||
| 03/31/13 | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | |||||||||||
| Nonaccrual loans and leases, including nonaccrual troubled debt restructured | |||||||||||||||
| loans and leases and nonaccrual loans held for sale | $ | 28,887 | $ | 32,132 | $ | 30,525 | $ | 36,762 | $ | 36,270 | |||||
| Accruing loans and leases 90 days or more past due | 366 | 441 | 690 | 384 | 523 | ||||||||||
| Accruing troubled debt restructured loans and leases | 13,037 | 13,457 | 13,383 | 7,591 | 7,301 | ||||||||||
| Other real estate owned | 3,616 | 1,607 | 3,301 | 3,922 | 4,993 | ||||||||||
| Nonperforming assets | 45,906 | 47,637 | 47,899 | 48,659 | 49,087 | ||||||||||
| Allowance for loan and lease losses | 25,222 | 24,746 | 27,096 | 30,502 | 30,597 | ||||||||||
| Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 1.94% | 2.17% | 2.07% | 2.51% | 2.48% | ||||||||||
| Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 2.84% | 3.11% | 3.03% | 3.05% | 3.02% | ||||||||||
| Allowance for loan and lease losses / Loans and leases held for investment | 1.70% | 1.67% | 1.84% | 2.08% | 2.10% | ||||||||||
| Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 87.31% | 77.01% | 97.03% | 82.97% | 84.36% | ||||||||||
| Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 59.64% | 53.76% | 64.52% | 68.18% | 69.39% | ||||||||||
| For the three months ended, | |||||||||||||||
| 03/31/13 | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | |||||||||||
| Net loan and lease charge-offs | $ | 1,598 | $ | 4,732 | $ | 5,616 | $ | 1,438 | $ | 3,373 | |||||
| Net loan and lease charge-offs (annualized)/Average loans and leases | 0.44% | 1.27% | 1.52% | 0.40% | 0.93% | ||||||||||
| Univest Corporation of Pennsylvania | ||||||||||||||||
| Consolidated Selected Financial Data | ||||||||||||||||
| March 31, 2013 | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| For the three months ended, | ||||||||||||||||
| For the period: | 03/31/13 | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | |||||||||||
| Interest income | $ | 19,489 | $ | 19,988 | $ | 19,977 | $ | 20,258 | $ | 20,431 | ||||||
| Interest expense | 1,546 | 1,838 | 1,958 | 2,111 | 2,267 | |||||||||||
| Net interest income | 17,943 | 18,150 | 18,019 | 18,147 | 18,164 | |||||||||||
| Provision for loan and lease losses | 2,074 | 2,382 | 2,210 | 1,343 | 4,100 | |||||||||||
| Net interest income after provision | 15,869 | 15,768 | 15,809 | 16,804 | 14,064 | |||||||||||
| Noninterest income: | ||||||||||||||||
| Trust fee income | 1,734 | 1,902 | 1,625 | 1,625 | 1,625 | |||||||||||
| Service charges on deposit accounts | 1,086 | 1,128 | 1,122 | 1,079 | 1,100 | |||||||||||
| Investment advisory commission and fee income | 1,701 | 1,407 | 1,350 | 1,350 | 1,256 | |||||||||||
| Insurance commission and fee income | 2,718 | 2,078 | 2,129 | 2,057 | 2,267 | |||||||||||
| Bank owned life insurance income | 504 | 365 | 463 | 336 | 1,506 | |||||||||||
| Other-than-temporary impairment | - | - | (4) | (6) | (3) | |||||||||||
| Net gain on sales of investment securities | 185 | 14 | 9 | 24 | 258 | |||||||||||
| Net gain on mortgage banking activities | 1,696 | 1,571 | 2,171 | 1,074 | 1,272 | |||||||||||
| Other income | 1,851 | 1,913 | 1,996 | 461 | 1,740 | |||||||||||
| Total noninterest income | 11,475 | 10,378 | 10,861 | 8,000 | 11,021 | |||||||||||
| Noninterest expense | ||||||||||||||||
| Salaries and benefits | 9,860 | 9,121 | 8,944 | 9,100 | 10,141 | |||||||||||
| Commissions | 2,115 | 2,042 | 1,884 | 1,633 | 1,422 | |||||||||||
| Premises and equipment | 2,581 | 2,664 | 2,597 | 2,513 | 2,428 | |||||||||||
| Deposit insurance premiums | 392 | 410 | 406 | 429 | 444 | |||||||||||
| Restructuring charges | 539 | - | - | - | - | |||||||||||
| Other expense | 4,749 | 5,475 | 5,227 | 4,961 | 4,441 | |||||||||||
| Total noninterest expense | 20,236 | 19,712 | 19,058 | 18,636 | 18,876 | |||||||||||
| Income before taxes | 7,108 | 6,434 | 7,612 | 6,168 | 6,209 | |||||||||||
| Income taxes | 1,710 | 1,358 | 1,842 | 1,405 | 946 | |||||||||||
| Net income | $ | 5,398 | $ | 5,076 | $ | 5,770 | $ | 4,763 | $ | 5,263 | ||||||
| Per Common Share Data: | ||||||||||||||||
| Book value per share | $ | 16.99 | $ | 16.95 | $ | 16.80 | $ | 16.55 | $ | 16.42 | ||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.32 | $ | 0.30 | $ | 0.34 | $ | 0.28 | $ | 0.31 | ||||||
| Diluted | $ | 0.32 | $ | 0.30 | $ | 0.34 | $ | 0.28 | $ | 0.31 | ||||||
| Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||
| Weighted average shares outstanding | 16,788,152 | 16,765,199 | 16,760,080 | 16,770,290 | 16,749,134 | |||||||||||
| Period end shares outstanding | 16,762,695 | 16,770,232 | 16,765,126 | 16,759,893 | 16,780,416 | |||||||||||
| Univest Corporation of Pennsylvania | ||||||||||
| Consolidated Selected Financial Data | ||||||||||
| March 31, 2013 | ||||||||||
| For the three months ended, | ||||||||||
| Profitability Ratios (annualized) | 03/31/13 | 12/31/12 | 09/30/12 | 06/30/12 | 03/31/12 | |||||
| Return on average assets | 0.98% | 0.89% | 1.04% | 0.88% | 0.97% | |||||
| Return on average shareholders' equity | 7.67% | 7.04% | 8.19% | 6.90% | 7.70% | |||||
| Net interest margin (FTE) | 3.83% | 3.80% | 3.84% | 3.97% | 3.95% | |||||
| Efficiency ratio (1) | 65.61% | 65.93% | 62.84% | 67.59% | 60.46% | |||||
| Capitalization Ratios | ||||||||||
| Dividends declared to net income | 62.21% | 66.06% | 58.09% | 70.48% | 63.63% | |||||
| Shareholders' equity to assets (Period End) | 12.58% | 12.33% | 12.62% | 12.67% | 12.57% | |||||
| Tangible common equity to tangible assets | 10.08% | 9.88% | 10.12% | 10.11% | 10.18% | |||||
| Regulatory Capital Ratios (Period End) | ||||||||||
| Tier 1 leverage ratio | 11.71% | 11.47% | 11.48% | 11.57% | 11.64% | |||||
| Tier 1 risk-based capital ratio | 14.10% | 14.35% | 14.07% | 14.38% | 14.50% | |||||
| Total risk-based capital ratio | 15.37% | 15.62% | 15.34% | 15.64% | 15.76% | |||||
| (1) | Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income. | |
| Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | ||||||||||||||||||||||
| For the Three Months Ended March 31, | ||||||||||||||||||||||
| Tax Equivalent Basis | 2013 | 2012 | ||||||||||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Interest-earning deposits with other banks | $ | 40,552 | $ | 35 | 0.35 | % | $ | 59,453 | $ | 38 | 0.26 | % | ||||||||||
| U.S. Government obligations | 174,408 | 477 | 1.11 | 147,146 | 519 | 1.42 | ||||||||||||||||
| Obligations of state and political subdivisions | 121,686 | 1,579 | 5.26 | 116,918 | 1,708 | 5.88 | ||||||||||||||||
| Other debt and equity securities | 200,938 | 895 | 1.81 | 193,447 | 1,234 | 2.57 | ||||||||||||||||
| Total interest-earning deposits and investments | 537,584 | 2,986 | 2.25 | 516,964 | 3,499 | 2.72 | ||||||||||||||||
| Commercial, financial, and agricultural loans | 438,434 | 4,676 | 4.33 | 440,906 | 4,742 | 4.33 | ||||||||||||||||
| Real estate-commercial and construction loans | 544,865 | 6,658 | 4.96 | 534,079 | 6,988 | 5.26 | ||||||||||||||||
| Real estate-residential loans | 257,435 | 2,455 | 3.87 | 247,295 | 2,605 | 4.24 | ||||||||||||||||
| Loans to individuals | 42,781 | 596 | 5.65 | 44,497 | 630 | 5.69 | ||||||||||||||||
| Municipal loans and leases | 134,450 | 1,716 | 5.18 | 133,896 | 1,821 | 5.47 | ||||||||||||||||
| Lease financings | 66,078 | 1,557 | 9.56 | 56,647 | 1,372 | 9.74 | ||||||||||||||||
| Gross loans and leases | 1,484,043 | 17,658 | 4.83 | 1,457,320 | 18,158 | 5.01 | ||||||||||||||||
| Total interest-earning assets | 2,021,627 | 20,644 | 4.14 | 1,974,284 | 21,657 | 4.41 | ||||||||||||||||
| Cash and due from banks | 40,070 | 34,956 | ||||||||||||||||||||
| Reserve for loan and lease losses | (25,245 | ) | (31,908 | ) | ||||||||||||||||||
| Premises and equipment, net | 33,046 | 34,299 | ||||||||||||||||||||
| Other assets | 163,649 | 168,820 | ||||||||||||||||||||
| Total assets | $ | 2,233,147 | $ | 2,180,451 | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||
| Interest-bearing checking deposits | $ | 244,089 | $ | 36 | 0.06 | $ | 220,360 | $ | 57 | 0.10 | ||||||||||||
| Money market savings | 325,677 | 80 | 0.10 | 310,878 | 148 | 0.19 | ||||||||||||||||
| Regular savings | 534,701 | 76 | 0.06 | 498,572 | 264 | 0.21 | ||||||||||||||||
| Time deposits | 323,982 | 1,048 | 1.31 | 400,433 | 1,384 | 1.39 | ||||||||||||||||
| Total time and interest-bearing deposits | 1,428,449 | 1,240 | 0.35 | 1,430,243 | 1,853 | 0.52 | ||||||||||||||||
| Short-term borrowings | 102,444 | 17 | 0.07 | 118,255 | 106 | 0.36 | ||||||||||||||||
| Long-term debt | - | - | - | 440 | 4 | 3.66 | ||||||||||||||||
| Subordinated notes and capital securities | 20,982 | 289 | 5.59 | 22,486 | 304 | 5.44 | ||||||||||||||||
| Total borrowings | 123,426 | 306 | 1.01 | 141,181 | 414 | 1.18 | ||||||||||||||||
| Total interest-bearing liabilities | 1,551,875 | 1,546 | 0.40 | 1,571,424 | 2,267 | 0.58 | ||||||||||||||||
| Demand deposits, non-interest bearing | 361,659 | 294,067 | ||||||||||||||||||||
| Accrued expenses and other liabilities | 34,055 | 39,889 | ||||||||||||||||||||
| Total liabilities | 1,947,589 | 1,905,380 | ||||||||||||||||||||
| Shareholders' Equity | ||||||||||||||||||||||
| Common stock | 91,332 | 91,332 | ||||||||||||||||||||
| Additional paid-in capital | 64,721 | 61,402 | ||||||||||||||||||||
| Retained earnings and other equity | 129,505 | 122,337 | ||||||||||||||||||||
| Total shareholders' equity | 285,558 | 275,071 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,233,147 | $ | 2,180,451 | ||||||||||||||||||
| Net interest income | $ | 19,098 | $ | 19,390 | ||||||||||||||||||
| Net interest spread | 3.74 | 3.83 | ||||||||||||||||||||
| Effect of net interest-free funding sources | 0.09 | 0.12 | % | |||||||||||||||||||
| Net interest margin | 3.83 | % | 3.95 | |||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 130.27 | % | 125.64 | % | ||||||||||||||||||
| 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 March 31, 2013 and 2012 have been calculated using the Corporation's federal applicable rate of 35.0%. | ||
CONTACT: Mike Keim UNIVEST CORPORATION OF PENNSYLVANIA Chief Financial Officer 215-721-2511 keimm@univest.net
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