EX-99.1 2 c99841exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(UNIVEST LOGO)
CONTACT:  
Jeff Schweitzer
UNIVEST CORPORATION OF PENNSYLVANIA
Chief Financial Officer
215-721-2458, schweitzerj@univest.net
FOR IMMEDIATE RELEASE
UNIVEST CORPORATION OF PENNSYLVANIA — UNIVEST NATIONAL
BANK AND TRUST CO. — REPORTS FIRST QUARTER EARNINGS
SOUDERTON, Pa., April 28, 2010 — Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest National Bank and Trust Co. of Souderton, Pa., today announced financial results for the first quarter. Univest reported net income of $3.0 million or $0.18 diluted earnings per share for the quarter ended March 31, 2010, compared to $1.5 million or $0.09 diluted earnings per share in the previous quarter ended December 31, 2009 and $3.8 million or $0.30 diluted earnings per share for the comparable period in the prior year.
Deposits
Total non-time deposits increased $28.0 million during the quarter. The increase consisted of an increase of $4.2 million in non-interest bearing deposits and $23.8 million in NOW, money market and savings accounts. These increases were offset by a decline in time deposits of $19.6 million.
Loans
Gross loans and leases increased slightly by $1.8 million during the quarter primarily due to less credit demand and utilization of lines by businesses responding to the current economic environment.
Net Interest Income and Margin
Net interest income of $17.1 million in the first quarter of 2010 increased $760 thousand, or 4.65%, over the first quarter of 2009. The net interest margin on a tax-equivalent basis for the first quarter of 2010 increased 30 basis points to 3.99% from 3.69% for the fourth quarter ended December 31, 2009 and 23 basis points compared to 3.76% for the first quarter of 2009. The increase in the net interest income and the net interest margin can be attributed to declines in the cost of interest-bearing liabilities, primarily time deposits and Federal Home Loan Bank (FHLB) borrowings, exceeding the declines in yields on total interest-earning assets. The Corporation has continued to experience core deposit growth which has allowed the Corporation to continue to repay its maturing FHLB advances reducing FHLB advances from $92 million at December 31, 2009 to $64 million at March 31, 2010.

 

 

 

Non-Interest Income
Total non-interest income, excluding the impact of other-than-temporary impairments on the Corporation’s bank equity portfolio, increased 11.71% for the quarter ended March 31, 2010 compared to the quarter ended March 31, 2009. For the quarter ended March 31, 2010, Univest reported total non-interest income of $8.2 million compared to $6.2 million for the comparable period in the prior year. This is attributed to increased fee income across each revenue source and reduced costs related to other-than-temporary impairment charges. Univest recorded other-than-temporary impairment charges on certain bank equity securities in the first quarter of 2010 of $5 thousand compared to charges of $1.2 million in the first quarter of 2009.
Non-Interest Expense
Non-interest expense for the first quarter of 2010 compared to the first quarter of 2009 increased $1.6 million or 10.17%, primarily due to increases in salaries and benefits expenses of $379 thousand due to investments in personnel to grow the Corporation’s mortgage banking and commercial lending capabilities and increases of $521 thousand in marketing and advertising expenses to support a major brand campaign to position the Corporation to take advantage of the disruption in its markets. Other increases occurred as a result of increased audit expenses and legal fees for nonperforming loan activity.
Asset Quality and Provision for Loan and Lease Losses
Nonaccrual loans and leases were $34.9 million at March 31, 2010 compared to $33.5 million at December 31, 2009 and $3.7 million at March 31, 2009. Nonperforming loans and leases as a percentage of total loans and leases equaled 2.58% at March 31, 2010 compared to 2.65% at December 31, 2009 and 0.45% at March 31, 2009. The provision for loan and lease losses was $4.9 million for the first quarter of 2010 compared to $7.4 million for the quarter ended December 31, 2009 and $2.2 million for the quarter ended March 31, 2009. As a result of the increased provision year-over-year, the allowance for loan and lease losses as a percentage of total loans and leases increased to 1.90% at March 31, 2010 from 1.74% at December 31, 2009 and 1.01% at March 31, 2009. The allowance for loan and lease losses to nonperforming loans and leases equaled 73.45% at March 31, 2010 which increased from 65.54% at December 31, 2009. The allowance for loan and lease losses to nonperforming loans and leases was 225.39% at March 31, 2009.
Capital
Univest continues to remain well-capitalized at March 31, 2010. Univest’s total risk-based capital at December 31, 2009 was 15.78%, well in excess of the regulatory minimum for well capitalized status of 10% for total risk-based capital.

 

 

 

Dividend
On April 1, 2010, Univest Corporation paid a quarterly cash dividend of $0.20 per share, which represented a 4.36% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.
About Univest Corporation
Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania (www.univest.net) and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, Montgomery and Lehigh counties.  Univest National Bank and Trust Co., member FDIC and Equal Housing Lender, offers customers 32 financial service centers, 12 retirement financial services centers, and 38 ATM locations throughout the region, and is the parent company of Univest Capital, Inc., a small ticket commercial finance business;  Univest Insurance, Inc., an independent insurance agency headquartered in Lansdale, Pa., which serves commercial and personal customers; and  Univest Investments, Inc., Member FINRA and SIPC, a full-service broker-dealer and investment advisory firm. For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visit www.univest.net.
# # #
This press release of Univest Corporation and the reports Univest Corporation files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Univest Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation’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 is engaged; (6) technological issues which may adversely affect Univest Corporation’s financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation files with the Securities and Exchange Commission. Univest Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
March 31, 2010
(Dollars in thousands)
Balance Sheet (Period End)
                                         
    03/31/10     12/31/09     09/30/09     06/30/09     03/31/09  
Assets
   $ 2,064,822     $ 2,085,421     $ 2,117,849     $ 2,086,821     $ 2,065,901  
Securities
     436,368       420,045       472,491       425,774       410,357  
Loans held for sale
     1,165       1,693       1,439       1,119       5,072  
Loans and leases, gross
     1,427,805       1,425,980       1,451,128       1,464,886       1,450,420  
Allowance for loan and lease losses
     27,065       24,798       21,945       18,824       14,720  
Loans and leases, net
     1,400,740       1,401,182       1,429,183       1,446,062       1,435,700  
Total deposits
     1,572,681       1,564,257       1,536,903       1,565,076       1,573,052  
Non-interest bearing deposits
     246,909       242,691       226,395       222,877       218,148  
NOW, Money Market and Savings
     894,799       871,024       812,122       833,825       819,659  
Time deposits
     430,973       450,542       498,386       508,374       535,245  
Borrowings
     187,637       214,063       267,821       265,457       245,962  
Shareholders’ equity
     267,850       267,807       268,052       208,358       206,238  
Balance Sheet (Average)
                                         
    For the three months ended,  
    03/31/10     12/31/09     09/30/09     06/30/09     03/31/09  
Assets
   $ 2,038,739     $ 2,096,945     $ 2,098,964     $ 2,077,565     $ 2,059,965  
Securities
     409,188       454,096       447,925       413,142       419,995  
Loans and leases, gross
     1,420,830       1,438,880       1,456,446       1,471,243       1,446,157  
Deposits
     1,537,676       1,553,308       1,547,436       1,560,317       1,555,964  
Shareholders’ equity
     269,030       267,645       240,267       208,321       204,544  
Asset Quality Data (Period End)
                                         
    03/31/10     12/31/09     09/30/09     06/30/09     03/31/09  
Nonaccrual loans and leases
   $ 34,856     $ 33,498     $ 33,116     $ 5,762     $ 3,675  
Accruing loans and leases 90 days or more past due
     303       726       644       1,839       2,109  
Troubled debt restructured
     1,691       3,611       3,216       3,324       747  
Other real estate owned
     2,453       3,428       3,330       2,812       2,824  
Nonperforming assets
     39,303       41,263       40,306       13,737       9,355  
Allowance for loan and lease losses
     27,065       24,798       21,945       18,824       14,720  
Nonperforming loans and leases / Loans and leases
     2.58 %     2.65 %     2.55 %     0.75 %     0.45 %
Allowance for loan and lease losses / Loans and leases
     1.90 %     1.74 %     1.51 %     1.29 %     1.01 %
Allowance for loan and lease losses / Nonperforming loans
     73.45 %     65.54 %     59.35 %     172.30 %     225.39 %
                                         
    For the three months ended,  
    03/31/10     12/31/09     09/30/09     06/30/09     03/31/09  
Net loan and lease charge-offs
   $ 2,628     $ 4,595     $ 2,807     $ 1,249     $ 554  
Net loan and lease charge-offs (annualized)/Average loans and leases
     0.75 %     1.27 %     0.76 %     0.34 %     0.16 %

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
March 31, 2010
(Dollars in thousands, except per share data)
                                         
    For the three months ended,  
For the period:   03/31/10     12/31/09     09/30/09     06/30/09     03/31/09  
Interest income
   $ 22,485     $ 23,184     $ 24,244     $ 24,529     $ 24,402  
Interest expense
     5,380       6,409       6,901       7,356       8,057  
 
                              
Net interest income
     17,105       16,775       17,343       17,173       16,345  
Provision for loan and lease losses
     4,895       7,449       5,928       5,353       2,156  
 
                              
Net interest income after provision
     12,210       9,326       11,415       11,820       14,189  
Noninterest income:
                                        
Trust fee income
     1,500       1,461       1,325       1,325       1,425  
Service charges on deposit accounts
     1,782       1,986       1,745       1,692       1,613  
Investment advisory commission and fee income
     1,056       1,025       876       766       760  
Insurance commissions and fee income
     2,243       1,514       1,470       1,964       2,133  
Bank owned life insurance income
     332       351       405       408       157  
Other-than-temporary impairment
     (5 )     (761 )     (47 )     (223 )     (1,177 )
Net gain (loss) on sales of securities
     49       1,023       112       (22 )     37  
Gain on sales of loans held for sale
     360       891       401       669       261  
Other income
     890       1,329       811       1,247       965  
 
                              
Total noninterest income
     8,207       8,819       7,098       7,826       6,174  
Noninterest expense
                                        
Salaries and benefits
     9,811       9,755       8,818       9,417       9,432  
Premises and equipment
     2,292       2,138       2,216       2,125       2,233  
Deposit insurance premiums
     597       599       526       1,477       583  
Other expense
     4,379       4,976       4,003       3,771       3,255  
 
                              
Total noninterest expense
     17,079       17,468       15,563       16,790       15,503  
 
                              
Income before taxes
     3,338       677       2,950       2,856       4,860  
Applicable income taxes
     368       (845 )     197       187       1,024  
 
                              
Net income
   $ 2,970     $ 1,522     $ 2,753     $ 2,669     $ 3,836  
 
                              
 
                                        
Per Common Share Data:
                                        
Book value per share
   $ 16.17     $ 16.27     $ 16.30     $ 16.00     $ 15.87  
Net income per share:
                                        
Basic
   $ 0.18     $ 0.09     $ 0.19     $ 0.21     $ 0.30  
Diluted
   $ 0.18     $ 0.09     $ 0.19     $ 0.21     $ 0.30  
Dividends per share
   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
Weighted average shares outstanding
     16,535,461       16,464,824       13,635,961       13,023,148       12,977,369  
Period end shares outstanding
     16,561,807       16,465,083       16,442,021       13,023,704       12,996,291  

 

 

 

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
March 31, 2010
                                         
    For the three months ended,  
    03/31/10     12/31/09     09/30/09     06/30/09     03/31/09  
Profitability Ratios (annualized)
                                        
 
  
Return on average assets
     0.59 %     0.29 %     0.52 %     0.52 %     0.76 %
Return on average shareholders’ equity
     4.48 %     2.26 %     4.55 %     5.14 %     7.61 %
Net interest margin (FTE)
     3.99 %     3.69 %     3.82 %     3.87 %     3.76 %
Efficiency ratio (1)
     64.33 %     65.36 %     60.58 %     63.96 %     65.70 %
 
                                        
Capitalization Ratios
                                        
 
                                        
Dividends paid to net income
     111.55 %     216.43 %     119.47 %     97.60 %     67.75 %
Shareholders’ equity to assets (Period End)
     12.97 %     12.84 %     12.66 %     9.98 %     9.98 %
Tangible common equity to tangible assets
     10.55 %     10.44 %     10.28 %     7.49 %     7.47 %
 
                                        
Regulatory Capital Ratios (Period End)
                                        
 
  
Tier 1 leverage ratio
     11.82 %     11.46 %     11.51 %     8.86 %     8.89 %
Tier 1 risk-based capital ratio
     14.44 %     14.41 %     14.12 %     10.65 %     10.72 %
Total risk-based capital ratio
     15.78 %     15.76 %     15.47 %     11.89 %     11.74 %
     
(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,  
    2010     2009  
    Average     Income/     Average     Average     Income/     Average  
Tax Equivalent Basis   Balance     Expense     Rate     Balance     Expense     Rate  
Assets:
                                                
Interest-earning deposits with other banks
   $ 14,293     $ 11       0.31 %   $ 3,333     $ 3       0.37 %
U.S. Government obligations
     114,164       742       2.64       94,844       982       4.20  
Obligations of state and political subdivisions
     106,634       1,739       6.61       100,450       1,712       6.91  
Other debt and equity securities
     188,390       2,019       4.36       224,701       2,834       5.11  
Federal funds sold
     —       —       —       233       —       —  
 
                                    
 
                                                
Total interest-earning deposits, investments and federal funds sold
     423,481       4,511       4.32       423,561       5,531       5.30  
 
                                        
 
                                                
Commercial, financial, and agricultural loans
     409,663       4,666       4.62       396,127       4,567       4.68  
Real estate—commercial and construction loans
     524,084       7,561       5.85       502,111       7,278       5.88  
Real estate—residential loans
     260,959       2,858       4.44       310,926       3,718       4.85  
Loans to individuals
     47,509       798       6.81       53,275       941       7.16  
Municipal loans and leases
     97,448       1,425       5.93       85,899       1,315       6.21  
Lease financings
     81,167       1,723       8.61       97,819       2,044       8.47  
 
                                        
Gross loans and leases
     1,420,830       19,031       5.43       1,446,157       19,863       5.57  
 
                                        
Total interest-earning assets
     1,844,311       23,542       5.18       1,869,718       25,394       5.51  
 
                                        
Cash and due from banks
     31,621                       31,184                  
Reserve for loan losses
     (26,579 )                     (13,669 )                
Premise and equipment, net
     34,859                       32,495                  
Other assets
     154,527                       140,237                  
 
                                            
Total assets
   $ 2,038,739                     $ 2,059,965                  
 
                                            
 
                                                
Liabilities:
                                                
Interest-bearing checking deposits
   $ 171,978     $ 57       0.13     $ 155,147     $ 87       0.23  
Money market savings
     279,912       317       0.46       327,777       644       0.80  
Regular savings
     415,934       781       0.76       319,497       779       0.99  
Time deposits
     434,166       3,065       2.86       541,795       4,902       3.67  
 
                                        
Total time and interest-bearing deposits
     1,301,990       4,220       1.31       1,344,216       6,412       1.93  
 
                                        
 
                                                
Securities sold under agreements to repurchase
     95,841       117       0.50       75,513       118       0.63  
Other short-term borrowings
     71,266       685       3.90       74,762       361       1.96  
Long-term debt
     5,746       47       3.32       83,967       838       4.05  
Subordinated notes and capital securities
     25,494       311       4.95       26,998       328       4.93  
 
                                        
Total borrowings
     198,347       1,160       2.37       261,240       1,645       2.55  
 
                                        
Total interest-bearing liabilities
     1,500,337       5,380       1.45       1,605,456       8,057       2.04  
 
                                        
Demand deposits, non-interest bearing
     235,686                       211,748                  
Accrued expenses and other liabilities
     33,686                       38,217                  
 
                                            
Total liabilities
     1,769,709                       1,855,421                  
 
                                            
 
                                                
Shareholders’ Equity
                                                
Common stock
     91,332                       74,370                  
Capital surplus
     61,420                       22,793                  
Retained earnings and other equity
     116,278                       107,381                  
 
                                            
Total shareholders’ equity
     269,030                       204,544                  
 
                                            
Total liabilities and shareholders’ equity
   $ 2,038,739                     $ 2,059,965                  
 
                                            
 
  
Net interest income
           $ 18,162                     $ 17,337          
 
                                            
Net interest spread
                     3.73                       3.47  
Effect of net interest-free funding sources
                     0.26                       0.29  
 
                                            
Net interest margin
                     3.99 %                     3.76 %
 
                                            
 
  
Ratio of average interest-earning assets to average interest-bearing liabilities equity
     122.93 %                     116.46 %                
 
                                            
     
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, 2010 and 2009 have been calculated using the Corporation’s federal applicable rate of 35.0%.