SOUDERTON, Pa., Oct. 28, 2015 (GLOBE NEWSWIRE) -- Univest Corporation of Pennsylvania (“Univest” or “Corporation”) (NASDAQ:UVSP), parent company of Univest Bank and Trust Co. ("Bank") and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter ended September 30, 2015. Univest reported net income of $7.5 million or $0.39 diluted earnings per share for the quarter ended September 30, 2015, a 21% increase from reported net income of $6.2 million or $0.38 diluted earnings per share for the quarter ended September 30, 2014. Net income for the nine months ended September 30, 2015 was $20.1 million or $1.02 diluted earnings per share, an 18% increase in net income compared to $17.0 million or $1.04 diluted earnings per share for the comparable period in the prior year. The quarter and year-to-date financial results include the Valley Green Bank acquisition which Univest completed on January 1, 2015 and now operates as Valley Green Bank, a Division of the Bank (“Valley Green Bank”). The results for the nine months ended September 30, 2015 included $2.0 million of integration and acquisition-related costs associated with Valley Green Bank, incurred during the first and second quarters, or $0.07 diluted earnings per share on a year-to-date tax affected basis. The results for the nine months ended September 30, 2015 also included $1.6 million of restructuring charges, incurred in the second quarter, related to the consolidation of six financial centers in September 2015 under the Bank's optimization plan or $0.05 diluted earnings per share on a tax affected basis. Excluding these costs, net income for the nine months ended September 30, 2015 would have been $22.5 million or $1.14 diluted earnings per share.
Loans
Gross loans and leases increased $471.2 million from December 31, 2014 and $500.1 million from September 30, 2014, including $380.9 million of loans acquired from Valley Green Bank. Organic loan growth was 6% (8% annualized) from December 31, 2014 and 7% from September 30, 2014. The growth in loans from December 31, 2014 and September 30, 2014 was primarily in commercial real estate loans and residential real estate loans.
Deposits
Total deposits increased $511.5 million from December 31, 2014 and $512.7 million from September 30, 2014, primarily due to $385.9 million of deposits acquired from Valley Green Bank and an increase in public funds mostly due to seasonal tax deposits.
Borrowings
Borrowings at September 30, 2015 included $50 million in aggregate principal amount fixed-to-floating rate subordinated notes issued in a private placement transaction to institutional accredited investors completed on March 30, 2015. The subordinated notes have a five-year, fixed rate of 5.10% and thereafter a rate of three-month LIBOR plus 3.544%, until the maturity date of March 30, 2025 or any early redemption date.
Net Interest Income and Margin
Net interest income increased $5.1 million to $23.4 million for the third quarter of 2015 from the same period in 2014. Net interest income increased $16.1 million for the nine months ended September 30, 2015 from the same period in the prior year. The net interest margin on a tax-equivalent basis for the third quarter of 2015 was 3.89%, compared to 4.03% for the second quarter of 2015 and 3.88% for the third quarter of 2014. The increase in net interest income during 2015 was mainly due to the impact of the Valley Green Bank acquisition, which included the average net interest-earning assets acquired and the net accretion of acquisition accounting fair value adjustments (the impact of the acquisition accounting adjustments was 8 basis points for the third quarter of 2015 and 10 basis points for the nine months ended September 30, 2015). The subordinated debt issuance increased funding costs by 14 basis points in the third quarter of 2015 and 9 basis points for the nine months ended September 30, 2015 from the comparable periods in the prior year.
Non-Interest Income
Non-interest income for the quarter ended September 30, 2015 was $12.9 million, an increase of $345 thousand or 3% from the third quarter of 2014. Non-interest income for the nine months ended September 30, 2015 was $39.6 million, an increase of $3.1 million or 8% from the comparable period in the prior year. Insurance commission and fee income increased $2.2 million for the nine months ended September 30, 2015, primarily due to the acquisition of Sterner Insurance on July 1, 2014. The net gain on mortgage banking activities increased $507 thousand for the quarter and $2.3 million for the nine months ended September 30, 2015, mainly due to an increase in purchase volume. Funded first mortgage volume for the quarter increased $7.3 million or 17%, and $67.7 million or 78% for the nine months ended September 30, 2015, compared to the same periods in 2014. These favorable increases were partially offset by a decline in investment advisory commission and fee income of $399 thousand for the quarter and $954 thousand for the nine months ended September 30, 2015. The decline in investment advisory commission and fee income was related to the fourth quarter of 2014 divestiture of approximately $375 million in marginally profitable assets under the supervision of independent consultants.
Non-Interest Expense
Non-interest expense for the quarter ended September 30, 2015 was $25.2 million, an increase of $3.2 million or 15%, compared to the third quarter of 2014. Non-interest expense for the nine months ended September 30, 2015 was $79.5 million, an increase of $14.8 million or 23% from the comparable period in the prior year. Non-interest expense was impacted by the Valley Green Bank acquisition which included integration and acquisition-related costs totaling $2.0 million for the nine months ended September 30, 2015. Salaries and benefit expense increased $935 thousand for the quarter and $5.3 million for the nine months ended September 30, 2015, primarily attributable to the Valley Green Bank acquisition and increased pension plan expense. The Sterner Insurance acquisition also impacted year-to-date salaries and benefits expense. This increase was partially offset by higher deferred loan origination costs. Commission expense increased $558 thousand for the nine months ended September 30, 2015, mostly due to the increase in mortgage banking volume. Premises and equipment expenses increased $809 thousand for the quarter and $2.4 million for the nine months ended September 30, 2015, mainly due to the Valley Green Bank acquisition and increased investments in computer equipment and software.
In addition, non-interest expense for the nine months ended September 30, 2015 included restructuring charges of $1.6 million recognized during the second quarter related to the consolidation of six financial centers in September 2015 under the Bank's optimization plan. The projected annualized savings from these consolidations is $1.9 million.
Asset Quality and Provision for Loan and Lease Losses
Non-accrual loans and leases, including non-accrual troubled debt restructured loans, were $20.8 million at September 30, 2015 compared to $17.3 million at December 31, 2014 and $18.8 million at September 30, 2014. Net loan and lease charge-offs were $1.7 million during the third quarter of 2015 compared to $2.6 million for the third quarter of 2014. Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 0.99% at September 30, 2015 compared to 1.07% at December 31, 2014 and 1.18% at September 30, 2014. The provision for loan and lease losses was $670 thousand for the third quarter of 2015, compared to $233 thousand for the third quarter of 2014.
The allowance for loan and lease losses as a percentage of loans and leases held for investment was 0.89% at September 30, 2015, compared to 1.27% at December 31, 2014 and 1.36% at September 30, 2014. 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 Valley Green Bank acquisition which were recorded at fair value as of the acquisition date, was 1.06%. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 110.58% at September 30, 2015, compared to 119.18% at December 31, 2014 and 115.67% at September 30, 2014.
Capital
Univest continues to remain well-capitalized at September 30, 2015. Univest adopted the new Basel III regulatory capital rules during the first quarter of 2015 under the transition rules. Total risk-based capital at September 30, 2015 under Basel III was 13.67%, well in excess of the regulatory minimum for well-capitalized status of 10%.
During the quarter, Univest repurchased 86,650 shares of common stock at a cost of $1.8 million under the share repurchase program. Shares available for future repurchases under the plan totaled 1,080,246 at September 30, 2015. Total shares outstanding at September 30, 2015 were 19,502,613.
Dividend
On August 21, 2015, Univest declared a quarterly cash dividend of $0.20 per share, payable on October 1, 2015. This represented a 4.21% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.
About Univest Corporation of Pennsylvania
Univest Corporation of Pennsylvania (UVSP), including its wholly-owned subsidiary, Univest Bank and Trust Co., has $2.9 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, 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, 2015 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| Balance Sheet (Period End) | 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | 09/30/14 | |||||||||||||||||||||||
| Assets | $ | 2,851,568 | $ | 2,780,578 | $ | 2,757,495 | $ | 2,235,321 | $ | 2,222,196 | ||||||||||||||||||
| Investment securities | 374,558 | 374,711 | 380,484 | 368,630 | 360,778 | |||||||||||||||||||||||
| Loans held for sale | 9,151 | 8,831 | 5,479 | 3,302 | 2,156 | |||||||||||||||||||||||
| Loans and leases held for investment, gross | 2,097,807 | 2,107,857 | 2,043,840 | 1,626,625 | 1,597,736 | |||||||||||||||||||||||
| Allowance for loan and lease losses | 18,620 | 19,602 | 20,934 | 20,662 | 21,762 | |||||||||||||||||||||||
| Loans and leases held for investment, net | 2,079,187 | 2,088,255 | 2,022,906 | 1,605,963 | 1,575,974 | |||||||||||||||||||||||
| Total deposits | 2,372,865 | 2,263,025 | 2,254,834 | 1,861,341 | 1,860,143 | |||||||||||||||||||||||
| Noninterest-bearing deposits | 519,767 | 519,026 | 509,183 | 449,339 | 436,189 | |||||||||||||||||||||||
| NOW, money market and savings | 1,361,827 | 1,288,318 | 1,293,165 | 1,159,409 | 1,162,778 | |||||||||||||||||||||||
| Time deposits | 491,271 | 455,681 | 452,486 | 252,593 | 261,176 | |||||||||||||||||||||||
| Borrowings | 70,531 | 110,480 | 91,423 | 41,974 | 38,005 | |||||||||||||||||||||||
| Shareholders' equity | 359,109 | 356,186 | 360,394 | 284,554 | 289,814 | |||||||||||||||||||||||
| Balance Sheet (Average) | For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||
| 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | 09/30/14 | 09/30/15 | 09/30/14 | ||||||||||||||||||||||
| Assets | $ | 2,804,578 | $ | 2,739,968 | $ | 2,691,513 | $ | 2,239,015 | $ | 2,217,474 | $ | 2,745,767 | $ | 2,189,858 | ||||||||||||||
| Investment securities | 368,837 | 375,887 | 381,008 | 363,567 | 360,274 | 375,200 | 375,847 | |||||||||||||||||||||
| Loans and leases, gross | 2,098,007 | 2,067,120 | 2,023,835 | 1,607,918 | 1,597,965 | 2,063,259 | 1,571,709 | |||||||||||||||||||||
| Deposits | 2,325,049 | 2,242,217 | 2,237,830 | 1,875,938 | 1,860,138 | 2,268,685 | 1,834,558 | |||||||||||||||||||||
| Shareholders' equity | 357,150 | 359,154 | 362,125 | 291,547 | 288,429 | 359,457 | 285,518 | |||||||||||||||||||||
| Asset Quality Data (Period End) | ||||||||||||||||||||||||||||
| 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | 09/30/14 | ||||||||||||||||||||||||
| Nonaccrual loans and leases, including nonaccrual troubled debt restructured | ||||||||||||||||||||||||||||
| loans and leases and nonaccrual loans held for sale | $ | 20,838 | $ | 17,697 | $ | 18,604 | $ | 17,337 | $ | 18,814 | ||||||||||||||||||
| Accruing loans and leases 90 days or more past due | 428 | 287 | 1,063 | 451 | 344 | |||||||||||||||||||||||
| Accruing troubled debt restructured loans and leases | 4,789 | 6,099 | 5,341 | 5,469 | 5,463 | |||||||||||||||||||||||
| Other real estate owned | 955 | 955 | 955 | 955 | 955 | |||||||||||||||||||||||
| Nonperforming assets | 27,010 | 25,038 | 25,963 | 24,212 | 25,576 | |||||||||||||||||||||||
| Allowance for loan and lease losses | 18,620 | 19,602 | 20,934 | 20,662 | 21,762 | |||||||||||||||||||||||
| Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual | 0.99 | % | 0.84 | % | 0.91 | % | 1.07 | % | 1.18 | % | ||||||||||||||||||
| loans held for sale | ||||||||||||||||||||||||||||
| Nonperforming loans and leases / Loans and leases held for investment and nonaccrual | 1.24 | % | 1.14 | % | 1.22 | % | 1.43 | % | 1.54 | % | ||||||||||||||||||
| loans held for sale | ||||||||||||||||||||||||||||
| Allowance for loan and lease losses / Loans and leases held for investment | 0.89 | % | 0.93 | % | 1.02 | % | 1.27 | % | 1.36 | % | ||||||||||||||||||
| Allowance for loan and lease losses / Loans and leases held for investment | 1.06 | % | 1.12 | % | 1.26 | % | 1.27 | % | 1.36 | % | ||||||||||||||||||
| (excluding acquired loans at period-end) | ||||||||||||||||||||||||||||
| Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 110.58 | % | 143.11 | % | 112.52 | % | 119.18 | % | 115.67 | % | ||||||||||||||||||
| Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 84.43 | % | 97.60 | % | 83.71 | % | 88.84 | % | 88.39 | % | ||||||||||||||||||
| Acquired credit impaired loans | 1,379 | 1,876 | 1,631 | - | - | |||||||||||||||||||||||
| For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
| 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | 09/30/14 | 09/30/15 | 09/30/14 | ||||||||||||||||||||||
| Net loan and lease charge-offs | $ | 1,652 | $ | 2,473 | $ | 802 | $ | 1,748 | $ | 2,565 | $ | 4,927 | $ | 5,691 | ||||||||||||||
| Net loan and lease charge-offs (annualized)/Average loans and leases | 0.31 | % | 0.48 | % | 0.16 | % | 0.43 | % | 0.64 | % | 0.32 | % | 0.48 | % | ||||||||||||||
| Univest Corporation of Pennsylvania | |||||||||||||||||||||||||||||
| Consolidated Selected Financial Data | |||||||||||||||||||||||||||||
| September 30, 2015 | |||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
| For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||||
| For the period: | 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | 09/30/14 | 09/30/15 | 09/30/14 | ||||||||||||||||||||||
| Interest income | $ | 25,585 | $ | 25,513 | $ | 24,738 | $ | 18,995 | $ | 19,219 | $ | 75,836 | $ | 56,890 | |||||||||||||||
| Interest expense | 2,220 | 2,133 | 1,434 | 1,039 | 978 | 5,787 | 2,957 | ||||||||||||||||||||||
| Net interest income | 23,365 | 23,380 | 23,304 | 17,956 | 18,241 | 70,049 | 53,933 | ||||||||||||||||||||||
| Provision for loan and lease losses | 670 | 1,141 | 1,074 | 648 | 233 | 2,885 | 2,959 | ||||||||||||||||||||||
| Net interest income after provision | 22,695 | 22,239 | 22,230 | 17,308 | 18,008 | 67,164 | 50,974 | ||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Trust fee income | 1,904 | 2,154 | 1,820 | 2,143 | 1,862 | 5,878 | 5,692 | ||||||||||||||||||||||
| Service charges on deposit accounts | 1,069 | 1,039 | 1,063 | 1,096 | 1,073 | 3,171 | 3,134 | ||||||||||||||||||||||
| Investment advisory commission and fee income | 2,687 | 2,740 | 2,763 | 2,760 | 3,086 | 8,190 | 9,144 | ||||||||||||||||||||||
| Insurance commission and fee income | 3,232 | 3,434 | 4,146 | 2,896 | 2,881 | 10,812 | 8,647 | ||||||||||||||||||||||
| Bank owned life insurance income | 306 | 211 | 353 | 461 | 346 | 870 | 1,167 | ||||||||||||||||||||||
| Net gain on sales of investment securities | 296 | 181 | 91 | 78 | - | 568 | 557 | ||||||||||||||||||||||
| Net gain on mortgage banking activities | 1,123 | 1,367 | 1,258 | 698 | 616 | 3,748 | 1,484 | ||||||||||||||||||||||
| Net gain on sales of other real estate owned | 14 | - | - | - | 195 | 14 | 195 | ||||||||||||||||||||||
| Other income | 2,224 | 2,225 | 1,937 | 1,944 | 2,451 | 6,386 | 6,555 | ||||||||||||||||||||||
| Total noninterest income | 12,855 | 13,351 | 13,431 | 12,076 | 12,510 | 39,637 | 36,575 | ||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Salaries and benefits | 11,970 | 11,957 | 13,314 | 10,297 | 11,035 | 37,241 | 31,948 | ||||||||||||||||||||||
| Commissions | 2,174 | 2,155 | 1,814 | 2,052 | 2,200 | 6,143 | 5,585 | ||||||||||||||||||||||
| Premises and equipment | 3,924 | 3,743 | 4,047 | 3,368 | 3,115 | 11,714 | 9,300 | ||||||||||||||||||||||
| Professional fees | 1,096 | 1,066 | 807 | 765 | 744 | 2,969 | 2,399 | ||||||||||||||||||||||
| Intangible expenses | 710 | 893 | 786 | 405 | 352 | 2,389 | 1,762 | ||||||||||||||||||||||
| Acquisition-related costs | - | 41 | 466 | 531 | 180 | 507 | 739 | ||||||||||||||||||||||
| Integration costs | - | 110 | 1,374 | - | 8 | 1,484 | 8 | ||||||||||||||||||||||
| Restructuring charges | - | 1,642 | - | - | - | 1,642 | - | ||||||||||||||||||||||
| Other expense | 5,369 | 5,225 | 4,803 | 5,144 | 4,385 | 15,397 | 12,951 | ||||||||||||||||||||||
| Total noninterest expense | 25,243 | 26,832 | 27,411 | 22,562 | 22,019 | 79,486 | 64,692 | ||||||||||||||||||||||
| Income before taxes | 10,307 | 8,758 | 8,250 | 6,822 | 8,499 | 27,315 | 22,857 | ||||||||||||||||||||||
| Income taxes | 2,779 | 2,292 | 2,134 | 1,632 | 2,264 | 7,205 | 5,816 | ||||||||||||||||||||||
| Net income | $ | 7,528 | $ | 6,466 | $ | 6,116 | $ | 5,190 | $ | 6,235 | $ | 20,110 | $ | 17,041 | |||||||||||||||
| Per common share data: | |||||||||||||||||||||||||||||
| Book value per share | $ | 18.41 | $ | 18.21 | $ | 18.18 | $ | 17.54 | $ | 17.87 | $ | 18.41 | $ | 17.87 | |||||||||||||||
| Net income per share: | |||||||||||||||||||||||||||||
| Basic | $ | 0.39 | $ | 0.33 | $ | 0.31 | $ | 0.32 | $ | 0.38 | $ | 1.02 | $ | 1.05 | |||||||||||||||
| Diluted | $ | 0.39 | $ | 0.33 | $ | 0.31 | $ | 0.32 | $ | 0.38 | $ | 1.02 | $ | 1.04 | |||||||||||||||
| Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | |||||||||||||||
| Weighted average shares outstanding | 19,506,609 | 19,675,002 | 19,951,242 | 16,215,580 | 16,225,596 | 19,709,322 | 16,241,490 | ||||||||||||||||||||||
| Period end shares outstanding | 19,502,613 | 19,559,941 | 19,820,824 | 16,221,607 | 16,220,249 | 19,502,613 | 16,220,249 | ||||||||||||||||||||||
| Univest Corporation of Pennsylvania | ||||||||||||||||||||||||||||||||
| Consolidated Selected Financial Data | ||||||||||||||||||||||||||||||||
| September 30, 2015 | ||||||||||||||||||||||||||||||||
| For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||||||
| Profitability Ratios (annualized) | 09/30/15 | 06/30/15 | 03/31/15 | 12/31/14 | 09/30/14 | 09/30/15 | 09/30/14 | |||||||||||||||||||||||||
| Return on average assets | 1.06 | % | 0.95 | % | 0.92 | % | 0.92 | % | 1.12 | % | 0.98 | % | 1.04 | % | ||||||||||||||||||
| Return on average assets, excluding integration | 1.06 | % | 1.12 | % | 1.10 | % | 1.01 | % | 1.14 | % | 1.09 | % | 1.07 | % | ||||||||||||||||||
| and acquisition-related costs and restructuring charges | ||||||||||||||||||||||||||||||||
| Return on average shareholders' equity | 8.36 | % | 7.22 | % | 6.85 | % | 7.06 | % | 8.58 | % | 7.48 | % | 7.98 | % | ||||||||||||||||||
| Return on average shareholders' equity, excluding | 8.36 | % | 8.52 | % | 8.19 | % | 7.78 | % | 8.80 | % | 8.36 | % | 8.23 | % | ||||||||||||||||||
| integration and acquisition-related costs and | ||||||||||||||||||||||||||||||||
| restructuring charges | ||||||||||||||||||||||||||||||||
| Return on average tangible common equity, excluding | 12.91 | % | 13.12 | % | 12.48 | % | 10.73 | % | 12.21 | % | 12.84 | % | 11.25 | % | ||||||||||||||||||
| integration and acquisition-related costs and | ||||||||||||||||||||||||||||||||
| restructuring charges | ||||||||||||||||||||||||||||||||
| Net interest margin (FTE) | 3.89 | % | 4.03 | % | 4.12 | % | 3.78 | % | 3.88 | % | 4.01 | % | 3.90 | % | ||||||||||||||||||
| Efficiency ratio (1) | 66.96 | % | 70.29 | % | 71.68 | % | 71.46 | % | 68.39 | % | 69.66 | % | 68.19 | % | ||||||||||||||||||
| Efficiency ratio (1), excluding integration and | 66.96 | % | 65.60 | % | 66.87 | % | 69.78 | % | 67.81 | % | 66.47 | % | 67.40 | % | ||||||||||||||||||
| acquisition-related costs and restructuring charges | ||||||||||||||||||||||||||||||||
| Capitalization Ratios | ||||||||||||||||||||||||||||||||
| Dividends declared to net income | 51.79 | % | 60.49 | % | 65.26 | % | 62.49 | % | 52.01 | % | 58.68 | % | 57.16 | % | ||||||||||||||||||
| Shareholders' equity to assets (Period End) | 12.59 | % | 12.81 | % | 13.07 | % | 12.73 | % | 13.04 | % | 12.59 | % | 13.04 | % | ||||||||||||||||||
| Tangible common equity to tangible assets | 8.56 | % | 8.67 | % | 8.91 | % | 9.49 | % | 9.78 | % | 8.56 | % | 9.78 | % | ||||||||||||||||||
| Regulatory Capital Ratios (Period End) (2) | ||||||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 9.75 | % | 9.89 | % | 10.16 | % | 10.55 | % | 10.50 | % | 9.75 | % | 10.50 | % | ||||||||||||||||||
| Common equity tier 1 risk-based capital ratio | 10.84 | % | 10.77 | % | 11.09 | % | - | - | 10.84 | % | - | |||||||||||||||||||||
| Tier 1 risk-based capital ratio | 10.84 | % | 10.77 | % | 11.09 | % | 11.79 | % | 11.98 | % | 10.84 | % | 11.98 | % | ||||||||||||||||||
| Total risk-based capital ratio | 13.67 | % | 13.65 | % | 14.09 | % | 12.91 | % | 13.18 | % | 13.67 | % | 13.18 | % | ||||||||||||||||||
| (1) Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income. | ||||||||||||||||||||||||||||||||
| (2) Ratios for 2015 are reported under BASEL III regulatory capital rules. On January 1, 2015, the BASEL III rules became effective, subject to transition provisions primarily relating to regulatory deductions and adjustments impacting common equity tier 1 capital and tier 1 capital, to be phased in over a three-year period beginning January 1, 2015. Ratios for 2014 are reported under BASEL I. | ||||||||||||||||||||||||||||||||
| Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | |||||||||||||||||
| For the Three Months Ended September 30, | |||||||||||||||||
| Tax Equivalent Basis | 2015 | 2014 | |||||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | ||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||
| Assets: | |||||||||||||||||
| Interest-earning deposits with other banks | $ | 50,514 | $ | 21 | 0.16 | % | $ | 34,701 | $ | 18 | 0.21 | % | |||||
| U.S. government obligations | 119,712 | 345 | 1.14 | 127,505 | 320 | 1.00 | |||||||||||
| Obligations of state and political subdivisions | 109,300 | 1,335 | 4.85 | 107,039 | 1,360 | 5.04 | |||||||||||
| Other debt and equity securities | 139,825 | 859 | 2.44 | 125,730 | 643 | 2.03 | |||||||||||
| Federal funds sold | - | - | - | - | - | - | |||||||||||
| Total interest-earning deposits and investments | 419,351 | 2,560 | 2.42 | 394,975 | 2,341 | 2.35 | |||||||||||
| Commercial, financial, and agricultural loans | 423,912 | 4,219 | 3.95 | 394,297 | 4,054 | 4.08 | |||||||||||
| Real estate—commercial and construction loans | 857,181 | 9,942 | 4.60 | 622,249 | 6,722 | 4.29 | |||||||||||
| Real estate—residential loans | 509,599 | 5,786 | 4.50 | 298,530 | 3,067 | 4.08 | |||||||||||
| Loans to individuals | 28,957 | 388 | 5.32 | 30,616 | 492 | 6.38 | |||||||||||
| Municipal loans and leases | 205,302 | 2,450 | 4.73 | 181,170 | 2,214 | 4.85 | |||||||||||
| Lease financings | 73,056 | 1,555 | 8.44 | 71,103 | 1,586 | 8.85 | |||||||||||
| Gross loans and leases | 2,098,007 | 24,340 | 4.60 | 1,597,965 | 18,135 | 4.50 | |||||||||||
| Total interest-earning assets | 2,517,358 | 26,900 | 4.24 | 1,992,940 | 20,476 | 4.08 | |||||||||||
| Cash and due from banks | 35,419 | 36,600 | |||||||||||||||
| Reserve for loan and lease losses | (20,494 | ) | (24,450 | ) | |||||||||||||
| Premises and equipment, net | 40,852 | 35,580 | |||||||||||||||
| Other assets | 231,443 | 176,804 | |||||||||||||||
| Total assets | $ | 2,804,578 | $ | 2,217,474 | |||||||||||||
| Liabilities: | |||||||||||||||||
| Interest-bearing checking deposits | $ | 375,362 | $ | 77 | 0.08 | $ | 316,923 | $ | 44 | 0.06 | |||||||
| Money market savings | 361,530 | 318 | 0.35 | 290,194 | 79 | 0.11 | |||||||||||
| Regular savings | 590,331 | 134 | 0.09 | 537,175 | 80 | 0.06 | |||||||||||
| Time deposits | 463,524 | 1,014 | 0.87 | 265,293 | 768 | 1.15 | |||||||||||
| Total time and interest-bearing deposits | 1,790,747 | 1,543 | 0.34 | 1,409,585 | 971 | 0.27 | |||||||||||
| Short-term borrowings | 30,520 | 10 | 0.13 | 38,763 | 7 | 0.07 | |||||||||||
| Subordinated notes (1) | 49,321 | 667 | 5.37 | - | - | - | |||||||||||
| Total borrowings | 79,841 | 677 | 3.36 | 38,763 | 7 | 0.07 | |||||||||||
| Total interest-bearing liabilities | 1,870,588 | 2,220 | 0.47 | 1,448,348 | 978 | 0.27 | |||||||||||
| Noninterest-bearing deposits | 534,302 | 450,553 | |||||||||||||||
| Accrued expenses and other liabilities | 42,538 | 30,144 | |||||||||||||||
| Total liabilities | 2,447,428 | 1,929,045 | |||||||||||||||
| Shareholders' Equity: | |||||||||||||||||
| Common stock | 110,271 | 91,332 | |||||||||||||||
| Additional paid-in capital | 120,770 | 62,268 | |||||||||||||||
| Retained earnings and other equity | 126,109 | 134,829 | |||||||||||||||
| Total shareholders' equity | 357,150 | 288,429 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,804,578 | $ | 2,217,474 | |||||||||||||
| Net interest income | $ | 24,680 | $ | 19,498 | |||||||||||||
| Net interest spread | 3.77 | 3.81 | |||||||||||||||
| Effect of net interest-free funding sources | 0.12 | 0.07 | |||||||||||||||
| Net interest margin | 3.89 | % | 3.88 | % | |||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 134.58 | % | 137.60 | % | |||||||||||||
| (1) The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense. | |||||||||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include unearned discount. | |||||||||||||||||
| Nonaccrual loans and leases have been included in the average loan and lease balances. | |||||||||||||||||
| Loans held for sale have been included in the average loan balances. | |||||||||||||||||
| Tax-equivalent amounts for the three months ended September 30, 2015 and 2014 have been calculated using the Corporation’s federal applicable rate of 35.0%. | |||||||||||||||||
| Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | |||||||||||||||||
| For the Nine Months Ended September 30, | |||||||||||||||||
| Tax Equivalent Basis | 2015 | 2014 | |||||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | ||||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||
| Assets: | |||||||||||||||||
| Interest-earning deposits with other banks | $ | 25,957 | $ | 37 | 0.19 | % | $ | 28,457 | $ | 49 | 0.23 | % | |||||
| U.S. government obligations | 129,646 | 1,075 | 1.11 | 128,799 | 967 | 1.00 | |||||||||||
| Obligations of state and political subdivisions | 107,807 | 4,011 | 4.97 | 107,269 | 4,189 | 5.22 | |||||||||||
| Other debt and equity securities | 137,747 | 2,267 | 2.20 | 139,779 | 2,058 | 1.97 | |||||||||||
| Federal funds sold | 2,448 | 2 | 0.11 | - | - | - | |||||||||||
| Total interest-earning deposits, investments and federal funds sold | 403,605 | 7,392 | 2.45 | 404,304 | 7,263 | 2.40 | |||||||||||
| Commercial, financial, and agricultural loans | 426,997 | 12,951 | 4.06 | 396,915 | 11,925 | 4.02 | |||||||||||
| Real estate—commercial and construction loans | 841,930 | 29,486 | 4.68 | 602,862 | 19,692 | 4.37 | |||||||||||
| Real estate—residential loans | 488,646 | 16,789 | 4.59 | 288,548 | 8,865 | 4.11 | |||||||||||
| Loans to individuals | 29,570 | 1,184 | 5.35 | 34,981 | 1,627 | 6.22 | |||||||||||
| Municipal loans and leases | 204,748 | 7,318 | 4.78 | 177,446 | 6,447 | 4.86 | |||||||||||
| Lease financings | 71,368 | 4,673 | 8.75 | 70,957 | 4,807 | 9.06 | |||||||||||
| Gross loans and leases | 2,063,259 | 72,401 | 4.69 | 1,571,709 | 53,363 | 4.54 | |||||||||||
| Total interest-earning assets | 2,466,864 | 79,793 | 4.32 | 1,976,013 | 60,626 | 4.10 | |||||||||||
| Cash and due from banks | 32,768 | 32,564 | |||||||||||||||
| Reserve for loan and lease losses | (20,983 | ) | (24,951 | ) | |||||||||||||
| Premises and equipment, net | 40,618 | 34,733 | |||||||||||||||
| Other assets | 226,500 | 171,499 | |||||||||||||||
| Total assets | $ | 2,745,767 | $ | 2,189,858 | |||||||||||||
| Liabilities: | |||||||||||||||||
| Interest-bearing checking deposits | $ | 364,006 | $ | 190 | 0.07 | $ | 314,095 | $ | 129 | 0.05 | |||||||
| Money market savings | 360,473 | 857 | 0.32 | 286,667 | 214 | 0.10 | |||||||||||
| Regular savings | 578,478 | 392 | 0.09 | 539,248 | 238 | 0.06 | |||||||||||
| Time deposits | 456,726 | 2,966 | 0.87 | 267,271 | 2,351 | 1.18 | |||||||||||
| Total time and interest-bearing deposits | 1,759,683 | 4,405 | 0.33 | 1,407,281 | 2,932 | 0.28 | |||||||||||
| Short-term borrowings | 40,902 | 33 | 0.11 | 41,271 | 25 | 0.08 | |||||||||||
| Subordinated notes (1) | 33,411 | 1,349 | 5.40 | - | - | - | |||||||||||
| Total borrowings | 74,313 | 1,382 | 2.49 | 41,271 | 25 | 0.08 | |||||||||||
| Total interest-bearing liabilities | 1,833,996 | 5,787 | 0.42 | 1,448,552 | 2,957 | 0.27 | |||||||||||
| Noninterest-bearing deposits | 509,002 | 427,277 | |||||||||||||||
| Accrued expenses and other liabilities | 43,312 | 28,511 | |||||||||||||||
| Total liabilities | 2,386,310 | 1,904,340 | |||||||||||||||
| Shareholders' Equity: | |||||||||||||||||
| Common stock | 110,271 | 91,332 | |||||||||||||||
| Additional paid-in capital | 120,409 | 61,967 | |||||||||||||||
| Retained earnings and other equity | 128,777 | 132,219 | |||||||||||||||
| Total shareholders' equity | 359,457 | 285,518 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,745,767 | $ | 2,189,858 | |||||||||||||
| Net interest income | $ | 74,006 | $ | 57,669 | |||||||||||||
| Net interest spread | 3.90 | 3.83 | |||||||||||||||
| Effect of net interest-free funding sources | 0.11 | 0.07 | |||||||||||||||
| Net interest margin | 4.01 | % | 3.90 | % | |||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 134.51 | % | 136.41 | % | |||||||||||||
| (1) The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. The balance is net of debt issuance costs which are amortized to interest expense. | |||||||||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include unearned discount. | |||||||||||||||||
| Nonaccrual loans and leases have been included in the average loan and lease balances. | |||||||||||||||||
| Loans held for sale have been included in the average loan balances. | |||||||||||||||||
| Tax-equivalent amounts for the nine months ended September 30, 2015 and 2014 have been calculated using the Corporation’s federal applicable rate of 35.0%. | |||||||||||||||||