Exhibit 99.1
NEWS
logo.jpg

CONTACT:     Roger Deacon
UNIVEST CORPORATION OF PENNSYLVANIA
Chief Financial Officer
215-721-2455, DeaconR@univest.net                     

FOR IMMEDIATE RELEASE

UNIVEST CORPORATION OF PENNSYLVANIA REPORTS THIRD QUARTER RESULTS

SOUDERTON, Pa., October 24, 2018 - 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 third quarter ended September 30, 2018. Univest reported net income of $15.0 million, or $0.51 diluted earnings per share, for the quarter ended September 30, 2018, compared to net income of $11.2 million, or $0.42 diluted earnings per share, for the quarter ended September 30, 2017. Net income for the nine months ended September 30, 2018 was $32.2 million, or $1.09 diluted earnings per share, compared to net income of $33.8 million, or $1.27 diluted earnings per share, for the nine months ended September 30, 2017.

The financial results for the nine months ended September 30, 2018 included a pre-tax charge to the provision for loan and lease losses of $12.7 million (after-tax charge of $10.1 million) in the second quarter of 2018, which represented $0.34 diluted earnings per share, related to alleged fraudulent activities perpetrated by one or more employees of a borrower. In addition, the financial results for the nine months ended September 30, 2018 included tax-free bank owned life insurance ("BOLI") death benefit claims of $446 thousand during the second quarter of 2018, which represented $0.02 diluted earnings per share, as well as restructuring costs related to financial center closures of $451 thousand, net of tax, or $0.02 of diluted earnings per share, recognized in the first quarter of 2018. There were no restructuring costs during the nine months ended September 30, 2017.

The financial results for the nine months ended September 30, 2017 included a tax-free BOLI death benefit claim of $889 thousand recognized in the second quarter of 2017, which represented $0.03 diluted earnings per share.






The financial results for the three and nine months ended September 30, 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 $47.8 million, or 5.0% (annualized), from June 30, 2018 and increased $246.1 million, or 9.1% (annualized), from December 31, 2017. Additionally, loans increased $379.0 million, or 10.9%, from September 30, 2017. The growth in loans during 2018 and compared to September 30, 2017 was primarily in commercial real estate, commercial business and residential real estate loans.

Deposits
Total deposits increased $199.3 million, or 22.0% (annualized), from June 30, 2018 primarily due to a seasonal increase in public funds deposits of $207.3 million. Total deposits increased $265.1 million, or 9.9% (annualized), from December 31, 2017 and increased $301.5 million, or 8.6%, from September 30, 2017 primarily due to increases in commercial, public funds and consumer time deposits.

Net Interest Income and Margin
Net interest income of $116.7 million for the nine months ended September 30, 2018 increased $10.2 million, or 9.6%, from the nine months ended September 30, 2017. The increase in net interest income for the nine months ended September 30, 2018 compared to the same period in 2017 was primarily due to the previously described increase in loans.

Net interest margin, on a tax-equivalent basis, was 3.71% for the third quarter of 2018, compared to 3.73% for the second quarter of 2018 and 3.80% for the third quarter of 2017. The favorable impact of purchase accounting accretion was 3 basis points ($343 thousand) for the quarter ended September 30, 2018 compared to 3 basis points ($349 thousand) for the quarter ended June 30, 2018 and 11 basis points ($1.1 million) for the quarter ended September 30, 2017. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.68% for the quarter ended September 30, 2018 compared to 3.70% for the quarter ended June 30, 2018 and 3.69% for the quarter ended September 30, 2017.

Net interest margin, on a tax-equivalent basis, in 2017 was calculated using a 35% federal tax rate as compared to a 21% federal tax rate for 2018. Assuming a 21% federal tax rate and excluding purchase accounting, net interest margin was 3.62% for the quarter ended September 30, 2017.








Noninterest Income
Noninterest income for the quarter ended September 30, 2018 was $14.9 million, an increase of $752 thousand, or 5.3%, from the third quarter of 2017. Noninterest income for the nine months ended September 30, 2018 was $45.8 million, an increase of $669 thousand, or 1.5%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $330 thousand, or 9.6%, for the quarter and $1.3 million, or 12.8%, for the nine months ended September 30, 2018, primarily due to new customer relationships and continued favorable market performance. Insurance commission and fee income increased $151 thousand, or 4.3%, for the quarter and $713 thousand, or 6.2%, for the nine months ended September 30, 2018, primarily due to an increase in group life and health premiums and an increase in contingent commission income of $374 thousand, which is largely recognized in the first quarter of the year. Other service fee income increased $161 thousand, or 7.6%, for the quarter and $529 thousand, or 8.3%, for the nine months ended September 30, 2018, primarily due to increases in debit card interchange income, mortgage servicing fees and human resource and payroll consulting services within the insurance line of business. Service charges on deposit accounts increased $83 thousand, or 6.1%, for the quarter and $189 thousand, or 4.8%, for the nine months ended September 30, 2018, primarily due to increased fee income on cash management accounts.

BOLI income decreased $403 thousand for the nine months ended September 30, 2018 primarily due to proceeds from the previously mentioned BOLI death benefits of $446 thousand in the second quarter of 2018 as compared to $889 thousand in the second quarter of 2017. The net gain on mortgage banking decreased $154 thousand, or 17.0%, for the quarter and $1.1 million, or 32.2%, for the nine months ended September 30, 2018, primarily due to a decrease in refinance mortgage volume, a shortage of housing supply and the Bank retaining, on balance-sheet, a higher percentage of its mortgage originations. Such on balance-sheet loans are predominantly hybrid adjustable rate mortgages. Other income decreased $610 thousand, or 85.7%, for the nine months ended September 30, 2018. The decrease in the nine months ended September 30, 2018 is primarily due to a net loss of $325 thousand related to valuations and sales of other real estate owned and sales of closed branches as compared to a net gain of $245 thousand of such assets in the nine months ended September 30, 2017.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2018 was $34.4 million, an increase of $1.7 million, or 5.1%, compared to the third quarter of 2017. Noninterest expense for the nine months ended September 30, 2018 was $103.8 million, an increase of $6.6 million, or 6.8%, from the comparable period in the prior year.






Salaries, benefits and commissions increased $1.1 million, or 5.9%, for the quarter and $4.4 million, or 7.7%, for the nine months ended September 30, 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 annual merit increases. Data processing expense increased $221 thousand for the quarter and $405 thousand for the nine months ended September 30, 2018 primarily due to increased investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Marketing and advertising expense increased $190 thousand for the quarter and $243 thousand for the nine months ended September 30, 2018 primarily related to deposit product campaigns. Other expense increased $267 thousand for the quarter and $911 thousand for the nine months ended September 30, 2018 primarily due to increases in Bank shares tax, loan processing expenses and increased corporate development expenses. Restructuring costs related to financial center closures and staffing rationalization were $571 thousand during the first quarter of 2018. There were no restructuring costs during the nine months ended September 30, 2017. Excluding restructuring costs, noninterest expense for the nine months increased $6.0 million, or 6.2%, from the comparable period in 2017.

Asset Quality and Provision for Loan and Lease Losses
Nonperforming assets were $31.0 million at September 30, 2018, compared to $32.8 million at June 30, 2018 and $28.6 million at December 31, 2017. The modest increase in nonperforming assets during 2018 is primarily due to one commercial real estate loan in the amount of $12.3 million being placed on non-accrual status during the first quarter of 2018 partially offset by $10.3 million in troubled debt restructured commercial real estate loans for another borrower being 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 $1.0 million during the third quarter of 2018. The provision for loan and lease losses was $2.7 million for the third quarter of 2018. The year-to-date September 2018 net loan and lease charge-offs of $14.4 million and the provision for loan and lease losses of $20.2 million include the previously discussed $12.7 million commercial loan charge-off during the second 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 0.79% at September 30, 2018, compared to 0.70% at December 31, 2017 and 0.71% at September 30, 2017.









Tax Provision
The effective income tax rate was 17.6% for the quarter ended September 30, 2018 compared to an effective income tax rate of 28.3% for the quarter ended September 30, 2017. The effective income tax rate was 16.2% for the nine months ended September 30, 2018 compared to an effective income tax rate of 27.1% for the nine months ended September 30, 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 nine months ended September 30, 2018 was favorably impacted by discrete tax benefits and proceeds from BOLI death benefits. Excluding these items, the effective tax rate was 18.3% for the nine months ended September 30, 2018.
  
Dividend
On August 27, 2018, Univest declared a quarterly cash dividend of $0.20 per share, payable on October 1, 2018. This represented a 3.06% 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 third quarter 2018 results on Thursday, October 25, 2018 at 9:00 a.m. EDT. Participants may preregister at http://dpregister.com/10124769. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through November 25, 2018 by dialing 1-877-344-7529; using Conference ID: 10124769.

About Univest Corporation of Pennsylvania
Univest Corporation of Pennsylvania (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $4.8 billion in assets and $3.6 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 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)
September 30, 2018
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet (Period End)
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
 
 
 
Assets
$
4,801,998

 
$
4,749,181

 
$
4,613,959

 
$
4,554,862

 
$
4,417,363

 
 
 
 
Investment securities
447,337

 
446,933

 
462,252

 
454,082

 
443,822

 
 
 
 
Loans held for sale
106

 
1,778

 
687

 
1,642

 
2,228

 
 
 
 
Loans and leases held for investment, gross
3,866,169

 
3,818,398

 
3,689,888

 
3,620,067

 
3,487,164

 
 
 
 
Allowance for loan and lease losses
27,371

 
25,652

 
23,410

 
21,555

 
20,543

 
 
 
 
Loans and leases held for investment, net
3,838,798

 
3,792,746

 
3,666,478

 
3,598,512

 
3,466,621

 
 
 
 
Total deposits
3,820,048

 
3,620,786

 
3,497,293

 
3,554,919

 
3,518,590

 
 
 
 
Noninterest-bearing deposits
1,047,081

 
1,055,479

 
1,002,021

 
1,040,026

 
987,881

 
 
 
 
NOW, money market and savings
2,101,484

 
1,970,912

 
1,974,769

 
1,940,144

 
1,959,549

 
 
 
 
Time deposits
671,483

 
594,395

 
520,503

 
574,749

 
571,160

 
 
 
 
Borrowings
326,709

 
481,862

 
466,510

 
355,590

 
332,529

 
 
 
 
Shareholders' equity
614,242

 
605,294

 
606,719

 
603,374

 
528,798

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance Sheet (Average)
For the three months ended,
 
For the nine months ended,
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
9/30/2018
 
9/30/2017
Assets
$
4,817,321

 
$
4,682,827

 
$
4,555,977

 
$
4,442,743

 
$
4,416,332

 
$
4,686,296

 
$
4,327,490

Investment securities
453,422

 
450,375

 
457,926

 
456,045

 
459,862

 
453,892

 
466,216

Loans and leases, gross
3,832,295

 
3,743,195

 
3,634,510

 
3,505,260

 
3,467,235

 
3,737,391

 
3,392,400

Deposits
3,792,627

 
3,563,956

 
3,484,044

 
3,508,676

 
3,480,318

 
3,614,673

 
3,373,033

Shareholders' equity
611,803

 
611,667

 
605,973

 
554,071

 
527,032

 
609,836

 
517,994

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Data (Period End)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
 
 
 
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases
$
27,559

 
$
30,148

 
$
27,694

 
$
14,517

 
$
15,949

 
 
 
 
Accruing loans and leases 90 days or more past due
1,224

 
150

 
2,295

 
761

 
1,595

 
 
 
 
Accruing troubled debt restructured loans and leases
766

 
790

 
1,032

 
11,435

 
11,468

 
 
 
 
Total nonperforming loans
29,549

 
31,088

 
31,021

 
26,713

 
29,012

 
 
 
 
Other real estate owned
1,433

 
1,742

 
1,843

 
1,843

 
1,763

 
 
 
 
Total nonperforming assets
$
30,982

 
$
32,830

 
$
32,864

 
$
28,556

 
$
30,775

 
 
 
 
Nonaccrual loans and leases / Loans and leases held for investment
0.71
%
 
0.79
%
 
0.75
%
 
0.40
%
 
0.46
%
 
 
 
 
Nonperforming loans and leases / Loans and leases held for investment
0.76
%
 
0.81
%
 
0.84
%
 
0.74
%
 
0.83
%
 
 
 
 
Nonperforming assets / Total assets
0.65
%
 
0.69
%
 
0.71
%
 
0.63
%
 
0.70
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
27,371

 
$
25,652

 
$
23,410

 
$
21,555

 
$
20,543

 
 
 
 
Allowance for loan and lease losses / Loans and leases held for investment
0.71
%
 
0.67
%
 
0.63
%
 
0.60
%
 
0.59
%
 
 
 
 
Allowance for loan and lease losses / Loans and leases held for investment (excluding acquired loans at period-end)
0.79
%
 
0.76
%
 
0.73
%
 
0.70
%
 
0.71
%
 
 
 
 
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment
99.32
%
 
85.09
%
 
84.53
%
 
148.48
%
 
128.80
%
 
 
 
 
Allowance for loan and lease losses / Nonperforming loans and leases held for investment
92.63
%
 
82.51
%
 
75.47
%
 
80.69
%
 
70.81
%
 
 
 
 
Acquired credit impaired loans
$
900

 
$
998

 
$
1,525

 
$
1,583

 
$
1,622

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended,
 
For the nine months ended,
 
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
9/30/2018
 
9/30/2017
Net loan and lease charge-offs
$
1,026

 
$
13,167

 
$
198

 
$
980

 
$
3,056

 
$
14,391

 
$
4,856

Net loan and lease charge-offs (annualized)/Average loans and leases
0.11
%
 
1.41
%
 
0.02
%
 
0.11
%
 
0.35
%
 
0.51
%
 
0.19
%




Univest Corporation of Pennsylvania
Consolidated Selected Financial Data (Unaudited)
September 30, 2018
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended,
 
For the nine months ended,
For the period:
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
9/30/2018
 
9/30/2017
Interest income
$
49,255

 
$
46,460

 
$
43,534

 
$
42,417

 
$
42,172

 
$
139,249

 
$
120,598

Interest expense
8,832

 
7,470

 
6,262

 
5,711

 
5,285

 
22,564

 
14,128

Net interest income
40,423

 
38,990

 
37,272

 
36,706

 
36,887

 
116,685

 
106,470

Provision for loan and lease losses
2,745

 
15,409

 
2,053

 
1,992

 
2,689

 
20,207

 
7,900

Net interest income after provision
37,678

 
23,581

 
35,219

 
34,714

 
34,198

 
96,478

 
98,570

Noninterest income:
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust fee income
1,960

 
2,044

 
1,996

 
2,208

 
1,924

 
6,000

 
5,847

Service charges on deposit accounts
1,454

 
1,335

 
1,327

 
1,555

 
1,371

 
4,116

 
3,927

Investment advisory commission and fee income
3,785

 
3,778

 
3,683

 
3,485

 
3,455

 
11,246

 
9,969

Insurance commission and fee income
3,643

 
3,712

 
4,888

 
3,258

 
3,492

 
12,243

 
11,530

Other service fee income
2,284

 
2,431

 
2,169

 
2,301

 
2,123

 
6,884

 
6,355

Bank owned life insurance income
865

 
1,210

 
669

 
841

 
742

 
2,744

 
3,147

Net gain on sales of investment securities

 

 
10

 
5

 
7

 
10

 
43

Net gain on mortgage banking activities
754

 
942

 
716

 
465

 
908

 
2,412

 
3,558

Other income (loss)
116

 
(138
)
 
124

 
34

 
87

 
102

 
712

Total noninterest income
14,861

 
15,314

 
15,582

 
14,152

 
14,109

 
45,757

 
45,088

Noninterest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries, benefits and commissions
20,321

 
20,065

 
20,647

 
19,340

 
19,185

 
61,033

 
56,652

Premises and equipment
3,557

 
3,600

 
3,780

 
3,636

 
3,542

 
10,937

 
10,915

Data processing
2,339

 
2,091

 
2,232

 
2,243

 
2,118

 
6,662

 
6,257

Professional fees
1,370

 
1,331

 
1,355

 
1,391

 
1,447

 
4,056

 
3,934

Marketing and advertising
461

 
526

 
381

 
360

 
271

 
1,368

 
1,125

Deposit insurance premiums
544

 
452

 
391

 
374

 
409

 
1,387

 
1,262

Intangible expense
479

 
594

 
612

 
687

 
690

 
1,685

 
1,895

Restructuring charges

 

 
571

 

 

 
571

 

Other expense
5,300

 
5,688

 
5,156

 
5,409

 
5,033

 
16,144

 
15,233

Total noninterest expense
34,371

 
34,347

 
35,125

 
33,440

 
32,695

 
103,843

 
97,273

Income before taxes
18,168

 
4,548

 
15,676

 
15,426

 
15,612

 
38,392

 
46,385

Income tax expense
3,204

 
191

 
2,826

 
5,162

 
4,416

 
6,221

 
12,555

Net income
$
14,964

 
$
4,357

 
$
12,850

 
$
10,264

 
$
11,196

 
$
32,171

 
$
33,830

Per common share data:
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per share
$
20.89

 
$
20.58

 
$
20.64

 
$
20.57

 
$
19.83

 
$
20.89

 
$
19.83

Net income per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.51

 
$
0.15

 
$
0.44

 
$
0.37

 
$
0.42

 
$
1.10

 
$
1.27

Diluted
$
0.51

 
$
0.15

 
$
0.44

 
$
0.37

 
$
0.42

 
$
1.09

 
$
1.27

Dividends declared per share
$
0.20

 
$
0.20

 
$
0.20

 
$
0.20

 
$
0.20

 
$
0.60

 
$
0.60

Weighted average shares outstanding
29,402,405

 
29,403,946

 
29,354,887

 
27,481,309

 
26,666,460

 
29,387,253

 
26,653,111

Period end shares outstanding
29,407,076

 
29,406,450

 
29,391,934

 
29,334,859

 
26,671,336

 
29,407,076

 
26,671,336







Univest Corporation of Pennsylvania
Consolidated Selected Financial Data (Unaudited)
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended,
 
For the nine months ended,
Profitability Ratios (annualized)
9/30/2018
 
6/30/2018
 
3/31/2018
 
12/31/2017
 
9/30/2017
 
9/30/2018
 
9/30/2017
Return on average assets
1.23
%
 
0.37
%
 
1.14
%
 
0.92
%
 
1.01
%
 
0.92
%
 
1.05
%
Return on average assets, excluding restructuring charges (1), (2)
1.23
%
 
0.37
%
 
1.18
%
 
0.92
%
 
1.01
%
 
0.93
%
 
1.05
%
Return on average shareholders' equity
9.70
%
 
2.86
%
 
8.60
%
 
7.35
%
 
8.43
%
 
7.05
%
 
8.73
%
Return on average shareholder's equity, excluding restructuring charges (1), (2)
9.70
%
 
2.86
%
 
8.90
%
 
7.35
%
 
8.43
%
 
7.15
%
 
8.73
%
Return on average tangible common equity, excluding restructuring charges (1), (2), (5)
13.70
%
 
4.04
%
 
12.65
%
 
10.89
%
 
12.83
%
 
10.12
%
 
13.45
%
Net interest margin (FTE)
3.71
%
 
3.73
%
 
3.72
%
 
3.76
%
 
3.80
%
 
3.72
%
 
3.78
%
Efficiency ratio (3)
61.2
%
 
62.1
%
 
65.4
%
 
63.4
%
 
61.9
%
 
62.9
%
 
61.8
%
Efficiency ratio, excluding restructuring charges (1), (3), (4)
61.2
%
 
62.1
%
 
64.3
%
 
63.4
%
 
61.9
%
 
62.5
%
 
61.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared to net income
39.3
%
 
135.0
%
 
45.7
%
 
57.1
%
 
47.6
%
 
54.8
%
 
47.3
%
Shareholders' equity to assets (Period End)
12.79
%
 
12.75
%
 
13.15
%
 
13.25
%
 
11.97
%
 
12.79
%
 
11.97
%
Tangible common equity to tangible assets (5)
9.43
%
 
9.33
%
 
9.64
%
 
9.68
%
 
8.22
%
 
9.43
%
 
8.22
%
Tangible book value per share (5)
$
14.83

 
$
14.51

 
$
14.54

 
$
14.44

 
$
13.06

 
$
14.83

 
$
13.06

Tangible book value per share - Core (5), (6)
$
15.26

 
$
14.91

 
$
14.90

 
$
14.57

 
$
13.14

 
$
15.26

 
$
13.14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory Capital Ratios (Period End)
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
10.07
%
 
10.19
%
 
10.47
%
 
10.48
%
 
8.74
%
 
10.07
%
 
8.74
%
Common equity tier 1 risk-based capital ratio
10.99
%
 
10.89
%
 
11.16
%
 
11.11
%
 
9.51
%
 
10.99
%
 
9.51
%
Tier 1 risk-based capital ratio
10.99
%
 
10.89
%
 
11.16
%
 
11.11
%
 
9.51
%
 
10.99
%
 
9.51
%
Total risk-based capital ratio
13.87
%
 
13.76
%
 
14.04
%
 
14.00
%
 
12.47
%
 
13.87
%
 
12.47
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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

 
$

 
$

 
$
571

 
$

Tax effect on restructuring charges

 

 
120

 

 

 
120

 

(b) Restructuring charges, net of tax
$

 
$

 
$
451

 
$

 
$

 
$
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 $6,715 at September 30, 2018, $6,650 at June 30, 2018, $6,605 at March 31, 2018, $6,573 at December 31, 2017 and $6,556 at September 30, 2017.
(6) Tangible equity as defined in (5), excluding the impact of accumulated other comprehensive (loss) income on available-for-sale investment securities, net (($12,873) at September 30, 2018, ($11,987) at June 30, 2018, ($10,477) at March 31, 2018, ($4,061) at December 31, 2017 and ($2,364) at September 30, 2017), divided by total shares outstanding.






Univest Corporation of Pennsylvania
Average Balances and Interest Rates (Unaudited)
 
For the Three Months Ended
 
Tax Equivalent Basis
September 30, 2018
 
 
June 30, 2018
 
 
Average
 
Income/
 
Average
 
 
Average
 
Income/
 
Average
 
(Dollars in thousands)
Balance
 
Expense
 
Rate
 
 
Balance
 
Expense
 
Rate
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning deposits with other banks
$
80,678

 
$
398

 
1.96

%
 
$
37,254

 
$
148

 
1.59

%
U.S. government obligations
22,331

 
90

 
1.60

 
 
23,183

 
91

 
1.57

 
Obligations of state and political subdivisions
68,703

 
581

 
3.36

 
 
71,092

 
603

 
3.40

 
Other debt and equity securities
362,388

 
2,258

 
2.47

 
 
356,100

 
2,177

 
2.45

 
Federal funds sold and other earning assets
31,107

 
484

 
6.17

 
 
32,788

 
509

 
6.23

 
Total interest-earning deposits, investments, federal funds sold and other earning assets
565,207

 
3,811

 
2.68

 
 
520,417

 
3,528

 
2.72

 
Commercial, financial, and agricultural loans
796,593

 
10,184

 
5.07

 
 
810,610

 
9,750

 
4.82

 
Real estate—commercial and construction loans
1,729,538

 
20,527

 
4.71

 
 
1,661,198

 
19,044

 
4.60

 
Real estate—residential loans
880,589

 
10,447

 
4.71

 
 
853,769

 
10,046

 
4.72

 
Loans to individuals
32,057

 
499

 
6.18

 
 
28,985

 
444

 
6.14

 
Municipal loans and leases
316,149

 
3,037

 
3.81

 
 
313,181

 
2,961

 
3.79

 
Lease financings
77,369

 
1,409

 
7.23

 
 
75,452

 
1,353

 
7.19

 
     Gross loans and leases
3,832,295

 
46,103

 
4.77

 
 
3,743,195

 
43,598

 
4.67

 
          Total interest-earning assets
4,397,502

 
49,914

 
4.50

 
 
4,263,612

 
47,126

 
4.43

 
Cash and due from banks
48,737

 
 
 
 
 
 
45,158

 
 
 
 
 
Reserve for loan and lease losses
(26,099
)
 
 
 
 
 
 
(23,914
)
 
 
 
 
 
Premises and equipment, net
60,622

 
 
 
 
 
 
61,234

 
 
 
 
 
Other assets
336,559

 
 
 
 
 
 
336,737

 
 
 
 
 
      Total assets
$
4,817,321

 
 
 
 
 
 
$
4,682,827

 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking deposits
$
465,992

 
$
541

 
0.46

%
 
$
463,156

 
$
383

 
0.33

%
Money market savings
813,769

 
2,664

 
1.30

 
 
694,734

 
1,758

 
1.01

 
Regular savings
787,383

 
581

 
0.29

 
 
803,586

 
582

 
0.29

 
Time deposits
633,552

 
2,492

 
1.56

 
 
553,579

 
1,819

 
1.32

 
     Total time and interest-bearing deposits
2,700,696

 
6,278

 
0.92

 
 
2,515,055

 
4,542

 
0.72

 
Short-term borrowings
129,365

 
584

 
1.79

 
 
217,327

 
958

 
1.77

 
Long-term debt
148,323

 
709

 
1.90

 
 
155,628

 
709

 
1.83

 
Subordinated notes
94,480

 
1,261

 
5.30

 
 
94,420

 
1,261

 
5.36

 
     Total borrowings
372,168

 
2,554

 
2.72

 
 
467,375

 
2,928

 
2.51

 
     Total interest-bearing liabilities
3,072,864

 
8,832

 
1.14

 
 
2,982,430

 
7,470

 
1.00

 
Noninterest-bearing deposits
1,091,931

 
 
 
 
 
 
1,048,901

 
 
 
 
 
Accrued expenses and other liabilities
40,723

 
 
 
 
 
 
39,829

 
 
 
 
 
     Total liabilities
4,205,518

 
 
 
 
 
 
4,071,160

 
 
 
 
 
Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
157,784

 
 
 
 
 
 
157,784

 
 
 
 
 
Additional paid-in capital
291,499

 
 
 
 
 
 
290,517

 
 
 
 
 
Retained earnings and other equity
162,520

 
 
 
 
 
 
163,366

 
 
 
 
 
     Total shareholders' equity
611,803

 
 
 
 
 
 
611,667

 
 
 
 
 
     Total liabilities and shareholders' equity
$
4,817,321

 
 
 
 
 
 
$
4,682,827

 
 
 
 
 
Net interest income
 
 
$
41,082

 
 
 
 
 
 
$
39,656

 
 
 
Net interest spread
 
 
 
 
3.36

 
 
 
 
 
 
3.43

 
Effect of net interest-free funding sources
 
 
 
 
0.35

 
 
 
 
 
 
0.30

 
Net interest margin
 
 
 
 
3.71

%
 
 
 
 
 
3.73

%
Ratio of average interest-earning assets to average interest-bearing liabilities
143.11

 
%
 
 
 
 
142.96

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 provides 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 September 30, 2018 and June 30, 2018 have been calculated using the Corporation’s federal applicable rate of 21.0%.





Univest Corporation of Pennsylvania
Average Balances and Interest Rates (Unaudited)
 
For the Three Months Ended September 30,
 
Tax Equivalent Basis
2018
 
 
2017
 
 
Average
 
Income/
 
Average
 
 
Average
 
Income/
 
Average
 
(Dollars in thousands)
Balance
 
Expense
 
Rate
 
 
Balance
 
Expense
 
Rate
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning deposits with other banks
$
80,678

 
$
398

 
1.96

%
 
$
43,941

 
$
133

 
1.20

%
U.S. government obligations
22,331

 
90

 
1.60

 
 
31,126

 
110

 
1.40

 
Obligations of state and political subdivisions
68,703

 
581

 
3.36

 
 
81,114

 
846

 
4.14

 
Other debt and equity securities
362,388

 
2,258

 
2.47

 
 
347,622

 
1,745

 
1.99

 
Federal funds sold and other earning assets
31,107

 
484

 
6.17

 
 
28,063

 
375

 
5.30

 
Total interest-earning deposits, investments, federal funds sold and other earning assets
565,207

 
3,811

 
2.68

 
 
531,866

 
3,209

 
2.39

 
Commercial, financial, and agricultural loans
796,593

 
10,184

 
5.07

 
 
762,418

 
8,656

 
4.50

 
Real estate—commercial and construction loans
1,729,538

 
20,527

 
4.71

 
 
1,549,799

 
17,999

 
4.61

 
Real estate—residential loans
880,589

 
10,447

 
4.71

 
 
770,839

 
8,751

 
4.50

 
Loans to individuals
32,057

 
499

 
6.18

 
 
27,509

 
416

 
6.00

 
Municipal loans and leases
316,149

 
3,037

 
3.81

 
 
281,509

 
3,208

 
4.52

 
Lease financings
77,369

 
1,409

 
7.23

 
 
75,161

 
1,331

 
7.03

 
     Gross loans and leases
3,832,295

 
46,103

 
4.77

 
 
3,467,235

 
40,361

 
4.62

 
          Total interest-earning assets
4,397,502

 
49,914

 
4.50

 
 
3,999,101

 
43,570

 
4.32

 
Cash and due from banks
48,737

 
 
 
 
 
 
46,969

 
 
 
 
 
Reserve for loan and lease losses
(26,099
)
 
 
 
 
 
 
(21,425
)
 
 
 
 
 
Premises and equipment, net
60,622

 
 
 
 
 
 
65,025

 
 
 
 
 
Other assets
336,559

 
 
 
 
 
 
326,662

 
 
 
 
 
      Total assets
$
4,817,321

 
 
 
 
 
 
$
4,416,332

 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing checking deposits
$
465,992

 
$
541

 
0.46

%
 
$
438,956

 
$
132

 
0.12

%
Money market savings
813,769

 
2,664

 
1.30

 
 
587,590

 
919

 
0.62

 
Regular savings
787,383

 
581

 
0.29

 
 
904,528

 
646

 
0.28

 
Time deposits
633,552

 
2,492

 
1.56

 
 
557,757

 
1,371

 
0.98

 
     Total time and interest-bearing deposits
2,700,696

 
6,278

 
0.92

 
 
2,488,831

 
3,068

 
0.49

 
Short-term borrowings
129,365

 
584

 
1.79

 
 
72,719

 
169

 
0.92

 
Long-term debt
148,323

 
709

 
1.90

 
 
207,057

 
794

 
1.52

 
Subordinated notes
94,480

 
1,261

 
5.30

 
 
94,238

 
1,254

 
5.28

 
     Total borrowings
372,168

 
2,554

 
2.72

 
 
374,014

 
2,217

 
2.35

 
     Total interest-bearing liabilities
3,072,864

 
8,832

 
1.14

 
 
2,862,845

 
5,285

 
0.73

 
Noninterest-bearing deposits
1,091,931

 
 
 
 
 
 
991,487

 
 
 
 
 
Accrued expenses and other liabilities
40,723

 
 
 
 
 
 
34,968

 
 
 
 
 
     Total liabilities
4,205,518

 
 
 
 
 
 
3,889,300

 
 
 
 
 
Shareholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
157,784

 
 
 
 
 
 
144,559

 
 
 
 
 
Additional paid-in capital
291,499

 
 
 
 
 
 
231,575

 
 
 
 
 
Retained earnings and other equity
162,520

 
 
 
 
 
 
150,898

 
 
 
 
 
     Total shareholders' equity
611,803

 
 
 
 
 
 
527,032

 
 
 
 
 
     Total liabilities and shareholders' equity
$
4,817,321

 
 
 
 
 
 
$
4,416,332

 
 
 
 
 
Net interest income
 
 
$
41,082

 
 
 
 
 
 
$
38,285

 
 
 
Net interest spread
 
 
 
 
3.36

 
 
 
 
 
 
3.59

 
Effect of net interest-free funding sources
 
 
 
 
0.35

 
 
 
 
 
 
0.21

 
Net interest margin
 
 
 
 
3.71

%
 
 
 
 
 
3.80

%
Ratio of average interest-earning assets to average interest-bearing liabilities
143.11

 
%
 
 
 
 
139.69

 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 provides 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 September 30, 2018 and 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 Nine Months Ended September 30,
 
Tax Equivalent Basis
2018
 
 
2017
 
 
Average
 
Income/
 
Average
 
 
Average
 
Income/
 
Average
 
(Dollars in thousands)
Balance
 
Expense
 
Rate
 
 
Balance
 
Expense
 
Rate
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning deposits with other banks
$
45,931

 
$
622

 
1.81

%
 
$
23,624

 
$
188

 
1.06

%
U.S. government obligations
23,139

 
275

 
1.59

 
 
32,862

 
329

 
1.34

 
Obligations of state and political subdivisions
71,429

 
1,777

 
3.33

 
 
83,424

 
2,654

 
4.25

 
Other debt and equity securities
359,324

 
6,530

 
2.43

 
 
349,930

 
5,047