Univest Corporation of Pennsylvania -- Univest Bank and Trust Co. -- Reports Fourth Quarter and Year End Earnings

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| Source: Univest Corporation of Pennsylvania

SOUDERTON, Pa., Jan. 22, 2014 (GLOBE NEWSWIRE) -- Univest Corporation of Pennsylvania ("Univest") (Nasdaq:UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced financial results for the quarter and year ended December 31, 2013. Univest reported net income of $4.9 million or $0.30 diluted earnings per share for the quarter ended December 31, 2013, a 3% decrease from reported net income of $5.1 million or $0.30 diluted earnings per share for the quarter ended December 31, 2012. Net income for the year ended December 31, 2013 was $21.2 million or $1.27 diluted earnings per share, a 2% increase in net income compared to $20.9 million or $1.24 diluted earnings per share for the comparable period in the prior year.

Loans

Gross loans and leases increased $15.2 million or 1% from September 30, 2013 and $59.6 million or 4% from December 31, 2012. The growth in loans from September 30, 2013 and the prior year-end occurred in commercial and residential real estate loans and equipment financing. While the longer-term economic outlook remains positive, household income and spending levels continue to remain stagnant. In the short-term, we anticipate that this will restrain overall credit demand and the utilization of available credit lines by both businesses and consumers.

Deposits

Total deposits declined $44.5 million from September 30, 2013 primarily due to a decrease in public funds and deposits holding trust customer funds that were invested by Univest's trust department in third party funds. Total deposits declined $20.8 million from December 31, 2012, primarily due to a $60.7 million decrease in time deposits and a $52.8 million decrease in interest-bearing deposits holding trust customer funds which were invested in third party funds. These declines were partially offset by a $42.8 million increase in noninterest-bearing demand deposits and a product change for existing business and municipal customers which resulted in $68.1 million of customer repurchase agreements, classified as borrowings, being transferred to interest-bearing demand deposits.

Net Interest Income and Margin

Net interest income of $18.1 million for the fourth quarter of 2013 was consistent with the fourth quarter of 2012. The net interest margin on a tax-equivalent basis for the fourth quarter of 2013 was 3.82%, compared to 3.83% for the third quarter of 2013 and 3.80% for the fourth quarter of 2012. While the tax-equivalent yield on average interest-earning assets declined 13 basis points for the fourth quarter of 2013 compared to the same period in the prior year, the rate on interest-bearing liabilities for the same comparable period was down 17 basis points. The decline in rate on interest-bearing liabilities is attributable to Univest's decision in the second quarter of 2013 to redeem its trust preferred securities and terminate the related interest rate swap and an overall decline in rates paid on time and interest bearing deposits.

Net interest income of $72.5 million for the year ended December 31, 2013 was consistent with the same period in 2012. The net interest margin on a tax-equivalent basis for the year ended December 31, 2013 was 3.81% compared to 3.89% for the year ended December 31, 2012. The decline in the year-to-date net interest margin from the prior year was primarily due to the re-investment of maturing and called investment securities into lower yielding investments. In addition, lower rates on commercial and residential real estate loans, due to re-pricing and the competitive environment, contributed to the decline. Favorable re-pricing of savings accounts and certificates of deposit, along with maturities of higher yielding certificates of deposit and the redemption of the trust preferred securities and termination of the related interest rate swap partially offset the decline in the year-to-date net interest margin.

Non-Interest Income

Non-interest income for the quarter ended December 31, 2013 was $11.1 million, an increase of $738 thousand or 7% from the comparable period in the prior year. Non-interest income for the year ended December 31, 2013 was $46.8 million, an increase of $6.5 million or 16% from the comparable period in the prior year. Insurance commission and fee income increased $313 thousand for the quarter and $1.7 million for the year ended December 31, 2013, primarily a result of the acquisitions of the John T. Fretz Insurance Agency, Inc. on May 1, 2013 and Javers Group on May 31, 2012. Investment advisory commission and fee income increased $362 thousand for the quarter and $1.5 million for the year ended December 31, 2013 as assets under supervision increased 22%, predominately market driven, over December 31, 2012. The net gain on sales of securities increased $425 thousand for the quarter and $3.1 million for the year ended December 31, 2013. The net gain on sales of other real estate owned was $176 thousand for the quarter resulting from an update to the usability of the property and $626 thousand for the year ended December 31, 2013. This compares favorably to a net loss on sales and write-downs of other real estate owned of $181 thousand and $1.9 million, respectively, for the comparable periods in the prior year.

These favorable increases were partially offset by a $1.9 million loss on the termination of an interest rate swap during the second quarter of 2013, which was used as a hedge of trust preferred securities. In addition, the net gain on mortgage banking activities decreased $1.1 million for the quarter and $1.6 million for the year ended December 31, 2013. The increase in interest rates beginning in the second quarter of 2013 contributed to a significant decline in refinance activity and lowered gain on sale margins. Mortgage banking funded loan volume declined 69% in the fourth quarter of 2013 and 18% for the year ended December 31, 2013, from the comparable periods in 2012.

Non-Interest Expense

Non-interest expense for the fourth quarter of 2013 was $21.6 million, an increase of $1.9 million or 10% compared to the fourth quarter of 2012. Salaries and benefits expense increased $1.4 million primarily attributable to the Fretz acquisition, higher health insurance costs, performance-based salary and incentive increases and lower deferred loan origination costs. Other expenses increased primarily due to increased professional fees.

Non-interest expense for the year ended December 31, 2013 was $81.1 million, an increase of $4.9 million or 6% from the comparable period in the prior year. Salaries and benefits expense increased $2.2 million primarily attributable to the Fretz and Javers acquisitions, higher health insurance costs and performance-based salary and incentive increases. Commission expense increased $1.5 million mainly due to increased production activity and revenues generated in our equipment finance, investment and insurance businesses. Additionally, non-interest expense increased due to restructuring charges of $534 thousand recognized during the first quarter of 2013.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $23.2 million at December 31, 2013, from $24.0 million at September 30, 2013 and $32.1 million at December 31, 2012. The $8.9 million decrease in non-accrual loans from December 31, 2012 was mainly due to charge-offs, foreclosures and pay-downs exceeding additions to non-accrual loans. Net loan and lease charge-offs were $2.0 million during the fourth quarter of 2013, down from $4.7 million for the fourth quarter of 2012. Non-accrual loans and leases as a percentage of total loans and leases held for investment were 1.51% at December 31, 2013 compared to 1.57% at September 30, 2013 and 2.17% at December 31, 2012.

Accruing troubled debt restructured loans decreased to $7.9 million at December 31, 2013 from $14.1 million at September 31, 2013 and $13.5 million at December 31, 2012. The decreases of $6.2 million and $5.6 million in accruing troubled debt restructured loans for the periods noted was primarily due to the payoff in December 2013 of a large shared national commercial real estate credit with an outstanding principal balance of $5.8 million.

The provision for loan and lease losses was $1.6 million for the fourth quarter of 2013, compared to $2.4 million for the fourth quarter of 2012. The provision for loan and lease losses was $11.2 million for the year ended December 31, 2013, compared to $10.0 million for the same period in the prior year. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.59% at December 31, 2013 compared to 1.63% at September 30, 2013 and 1.67% at December 31, 2012. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 105.42% at December 31, 2013 compared to 103.59% at September 30, 2013 and 77.01% at December 31, 2012.

Capital

Univest continues to remain well-capitalized at December 31, 2013. Total risk-based capital at December 31, 2013 was 13.90%, well in excess of the regulatory minimum for well capitalized status of 10%.

Dividend

On November 27, 2013, Univest declared a quarterly cash dividend of $0.20 per share, payable on January 2, 2014. This represented a 3.88% 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 $2.2 billion in assets and $2.6 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 40 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 banking industry and, specifically, the financial operations, markets and products of Univest Corporation of Pennsylvania. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Corporation of Pennsylvania's future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce net interest margins; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest Corporation of Pennsylvania is engaged; (6) technological issues which may adversely affect Univest Corporation of Pennsylvania's financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Corporation of Pennsylvania files with the Securities and Exchange Commission. Univest Corporation of Pennsylvania undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2013
(Dollars in thousands)
               
Balance Sheet (Period End) 12/31/13 09/30/13 06/30/13 03/31/13 12/31/12    
Assets  $ 2,191,559  $ 2,252,996  $ 2,255,601  $ 2,263,036  $ 2,304,841    
Investment securities  402,284  462,573  485,460  508,751  499,579    
Loans held for sale  2,267  3,489  3,609  3,606  4,530    
Loans and leases held for investment, gross  1,541,484  1,526,241  1,499,993  1,487,375  1,481,862    
Allowance for loan and lease losses  24,494  24,835  24,718  25,222  24,746    
Loans and leases held for investment, net  1,516,990  1,501,406  1,475,275  1,462,153  1,457,116    
Total deposits  1,844,498  1,889,046  1,873,051  1,814,610  1,865,333    
Noninterest-bearing deposits  411,714  394,983  398,906  380,447  368,948    
NOW, money market and savings  1,161,995  1,204,281  1,175,129  1,127,643  1,164,874    
Time deposits  270,789  289,782  299,016  306,520  331,511    
Borrowings  37,256  46,733  66,007  124,895  117,276    
Shareholders' equity  280,506  274,754  279,588  284,784  284,277    
               
               
Balance Sheet (Average) For the
three months ended,
For the
twelve months ended,
  12/31/13 09/30/13 06/30/13 03/31/13 12/31/12 12/31/13 12/31/12
Assets  $ 2,208,995  $ 2,233,124  $ 2,251,298  $ 2,233,147  $ 2,264,863  $ 2,231,333  $ 2,208,493
Investment securities  447,672  479,442  495,154  497,032  499,017  479,689  470,473
Loans and leases, gross  1,527,330  1,506,850  1,478,309  1,484,043  1,478,156  1,499,351  1,465,448
Deposits  1,858,905  1,875,578  1,812,100  1,790,108  1,823,707  1,833,358  1,761,676
Shareholders' equity  275,983  280,245  284,491  285,558  286,980  281,539  282,286
               
               
Asset Quality Data (Period End)              
  12/31/13 09/30/13 06/30/13 03/31/13 12/31/12    
               
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases  $ 23,235  $ 23,974  $ 25,207  $ 28,887  $ 32,132    
Accruing loans and leases 90 days or more past due  413  1,954  521  366  441    
Accruing troubled debt restructured loans and leases  7,943  14,106  13,696  13,037  13,457    
Other real estate owned  1,650  1,650  1,650  3,616  1,607    
Nonperforming assets  33,241  41,684  41,074  45,906  47,637    
Allowance for loan and lease losses  24,494  24,835  24,718  25,222  24,746    
Nonaccrual loans and leases / Loans and leases held for investment 1.51% 1.57% 1.68% 1.94% 2.17%    
Nonperforming loans and leases / Loans and leases held for investment 2.05% 2.62% 2.63% 2.84% 3.11%    
Allowance for loan and lease losses / Loans and leases held for investment 1.59% 1.63% 1.65% 1.70% 1.67%    
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment 105.42% 103.59% 98.06% 87.31% 77.01%    
Allowance for loan and lease losses / Nonperforming loans and leases held for investment 77.53% 62.03% 62.70% 59.64% 53.76%    
               
               
  For the
three months ended,
For the
twelve months ended,
  12/31/13 09/30/13 06/30/13 03/31/13 12/31/12 12/31/13 12/31/12
Net loan and lease charge-offs  $ 1,955  $ 3,977  $ 3,950  $ 1,598  $ 4,732  $ 11,480  $ 15,159
Net loan and lease charge-offs (annualized)/Average loans and leases 0.51% 1.05% 1.07% 0.44% 1.27% 0.77% 1.03%
               
               
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2013
(Dollars in thousands, except per share data)
  For the
three months ended,
For the
twelve months ended,
For the period: 12/31/13 09/30/13 06/30/13 03/31/13 12/31/12 12/31/13 12/31/12
Interest income  $ 19,172  $ 19,457  $ 19,461  $ 19,489  $ 19,988  $ 77,579  $ 80,654
Interest expense  1,080  1,138  1,353  1,546  1,838  5,117  8,174
Net interest income  18,092  18,319  18,108  17,943  18,150  72,462  72,480
Provision for loan and lease losses  1,614  4,094  3,446  2,074  2,382  11,228  10,035
Net interest income after provision  16,478  14,225  14,662  15,869  15,768  61,234  62,445
Noninterest income:              
Trust fee income  2,054  1,736  1,779  1,734  1,902  7,303  6,777
Service charges on deposit accounts  1,118  1,149  1,098  1,086  1,128  4,451  4,429
Investment advisory commission and fee income  1,769  1,536  1,811  1,701  1,407  6,817  5,363
Insurance commission and fee income  2,391  2,513  2,598  2,718  2,078  10,220  8,531
Bank owned life insurance income  496  1,555  413  504  365  2,968  2,670
Net gain on sales of investment securities  439  1,426  1,339  185  14  3,389  292
Net gain on mortgage banking activities  476  935  1,416  1,696  1,571  4,523  6,088
Net gain (loss) on sales and write downs of other real estate owned  176  198  252  --   (181)  626  (1,904)
Loss on termination of interest rate swap  --   --   (1,866)  --   --   (1,866)  -- 
Other income  2,197  2,154  2,151  1,851  2,094  8,353  8,014
Total noninterest income  11,116  13,202  10,991  11,475  10,378  46,784  40,260
Noninterest expense:              
Salaries and benefits  10,542  9,761  9,359  9,860  9,121  39,522  37,306
Commissions  1,983  2,026  2,388  2,115  2,042  8,512  6,981
Premises and equipment  2,836  2,697  2,620  2,581  2,664  10,734  10,202
Deposit insurance premiums  380  381  400  392  410  1,553  1,689
Restructuring charges  --   (5)  --   539  --   534  -- 
Other expense  5,882  5,128  4,519  4,749  5,475  20,278  20,104
Total noninterest expense  21,623  19,988  19,286  20,236  19,712  81,133  76,282
Income before taxes  5,971  7,439  6,367  7,108  6,434  26,885  26,423
Income taxes  1,049  1,400  1,537  1,710  1,358  5,696  5,551
Net income  $ 4,922  $ 6,039  $ 4,830  $ 5,398  $ 5,076  $ 21,189  $ 20,872
               
Per common share data:              
Book value per share  $ 17.22  $ 16.87  $ 16.76  $ 16.99  $ 16.95  $ 17.22  $ 16.95
Net income per share:              
Basic  $ 0.30  $ 0.36  $ 0.29  $ 0.32  $ 0.30  $ 1.28  $ 1.25
Diluted  $ 0.30  $ 0.36  $ 0.29  $ 0.32  $ 0.30  $ 1.27  $ 1.24
Dividends declared per share  $ 0.20  $ 0.20  $ 0.20  $ 0.20  $ 0.20  $ 0.80  $ 0.80
Weighted average shares outstanding  16,283,466  16,657,916  16,696,362  16,788,152  16,765,199  16,605,232  16,761,184
Period end shares outstanding  16,287,812  16,288,597  16,683,009  16,762,695  16,770,232  16,287,812  16,770,232
               
               
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
December 31, 2013
               
  For the
three months ended,
For the
twelve months ended,
Profitability Ratios (annualized) 12/31/13 09/30/13 06/30/13 03/31/13 12/31/12 12/31/13 12/31/12
               
Return on average assets 0.88% 1.07% 0.86% 0.98% 0.89% 0.95% 0.95%
Return on average shareholders' equity 7.08% 8.55% 6.81% 7.67% 7.04% 7.53% 7.39%
Net interest margin (FTE) 3.82% 3.83% 3.78% 3.82% 3.80% 3.81% 3.89%
Efficiency ratio (1) 70.43% 59.53% 63.24% 65.61% 65.93% 64.59% 64.09%
               
Capitalization Ratios              
               
Dividends declared to net income 66.17% 55.24% 69.05% 62.21% 66.06% 62.70% 64.25%
Shareholders' equity to assets (Period End) 12.80% 12.20% 12.40% 12.58% 12.33% 12.80% 12.33%
Tangible common equity to tangible assets 10.10% 9.55% 9.76% 10.08% 9.88% 10.10% 9.88%
               
               
Regulatory Capital Ratios (Period End)  (2)              
Tier 1 leverage ratio 10.85% 10.63% 10.61% 11.71% 11.47% 10.85% 11.47%
Tier 1 risk-based capital ratio 12.63% 12.47% 12.67% 14.10% 14.35% 12.63% 14.35%
Total risk-based capital ratio 13.90% 13.73% 13.95% 15.37% 15.62% 13.90% 15.62%
               
(1)  Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income.
               
(2)  In accordance with regulatory guidance, the trust preferred securities were removed from Tier 1 Capital at June 30, 2013.
 
 
Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential
  For the Three Months Ended December 31,
Tax Equivalent Basis 2013 2012
  Average
Balance
Income/
Expense
Average
Rate
Average
Balance
Income/
Expense
Average
Rate
Assets:            
Interest-earning deposits with other banks  $ 30,412  $ 20  0.26%  $ 43,538  $ 43  0.39%
U.S. Government obligations  161,491  421  1.03  173,458  519  1.19
Obligations of state and political subdivisions  111,705  1,489  5.29  121,062  1,577  5.18
Other debt and equity securities  174,476  816  1.86  204,497  844  1.64
Total interest-earning deposits and investments  478,084  2,746  2.28  542,555  2,983  2.19
             
Commercial, financial, and agricultural loans  379,539  3,865  4.04  447,619  4,944  4.39
Real estate—commercial and construction loans  598,065  6,971  4.62  533,178  6,809  5.08
Real estate—residential loans  275,158  2,542  3.67  260,787  2,555  3.90
Loans to individuals  41,496  608  5.81  42,844  624  5.79
Municipal loans and leases  162,187  2,026  4.96  132,187  1,781  5.36
Lease financings  70,885  1,643  9.20  61,541  1,465  9.47
Gross loans and leases  1,527,330  17,655  4.59  1,478,156  18,178  4.89
Total interest-earning assets  2,005,414  20,401  4.04  2,020,711  21,161  4.17
Cash and due from banks  32,149      73,812    
Reserve for loan and lease losses  (25,198)      (27,988)    
Premises and equipment, net  33,965      33,625    
Other assets  162,665      164,703    
Total assets  $ 2,208,995      $ 2,264,863    
             
Liabilities:            
Interest-bearing checking deposits  $ 312,641  $ 45  0.06  $ 236,752  $ 39  0.07
Money market savings  324,564  83  0.10  370,894  118  0.13
Regular savings  534,114  79  0.06  523,569  156  0.12
Time deposits  278,005  865  1.23  339,901  1,194  1.40
Total time and interest-bearing deposits  1,449,324  1,072  0.29  1,471,116  1,507  0.41
             
Short-term borrowings  42,220  8  0.08  101,607  31  0.12
Subordinated notes and capital securities  --   --   --   21,365  300  5.59
Total borrowings  42,220  8  0.08  122,972  331  1.07
Total interest-bearing liabilities  1,491,544  1,080  0.29  1,594,088  1,838  0.46
Demand deposits, non-interest bearing  409,581      352,591    
Accrued expenses and other liabilities  31,887      31,204    
Total liabilities  1,933,012      1,977,883    
             
Shareholders' Equity:            
Common stock  91,332      91,332    
Additional paid-in capital  65,224      64,769    
Retained earnings and other equity  119,427      130,879    
Total shareholders' equity  275,983      286,980    
Total liabilities and shareholders' equity  $ 2,208,995      $ 2,264,863    
Net interest income    $ 19,321      $ 19,323  
             
Net interest spread      3.75      3.71
Effect of net interest-free funding sources      0.07      0.09
Net interest margin      3.82%      3.80%
Ratio of average interest-earning assets to average interest-bearing liabilities 134.45%     126.76%    
             
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 December 31, 2013 and 2012 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 Twelve Months Ended December 31,
Tax Equivalent Basis 2013 2012
  Average
Balance
Income/
Expense
Average
Rate
Average
Balance
Income/
Expense
Average
Rate
Assets:            
Interest-earning deposits with other banks  $ 46,469  $ 126  0.27%  $ 52,387  $ 164  0.31%
U.S. Government obligations  172,414  1,870  1.08  154,715  2,038  1.32
Obligations of state and political subdivisions  118,235  6,263  5.30  119,993  6,669  5.56
Other debt and equity securities  189,040  3,562  1.88  195,765  3,913  2.00
Total interest-earning deposits and investments  526,158  11,821  2.25  522,860  12,784  2.45
             
Commercial, financial, and agricultural loans  403,993  16,958  4.20  445,883  19,367  4.34
Real estate—commercial and construction loans  577,230  27,546  4.77  530,633  27,550  5.19
Real estate—residential loans  261,704  9,896  3.78  253,486  10,373  4.09
Loans to individuals  42,339  2,392  5.65  43,562  2,480  5.69
Municipal loans and leases  145,463  7,360  5.06  133,212  7,231  5.43
Lease financings  68,622  6,381  9.30  58,672  5,709  9.73
Gross loans and leases  1,499,351  70,533  4.70  1,465,448  72,710  4.96
Total interest-earning assets  2,025,509  82,354  4.07  1,988,308  85,494  4.30
Cash and due from banks  32,854      49,362    
Reserve for loan and lease losses  (25,519)      (30,771)    
Premises and equipment, net  33,197      34,079    
Other assets  165,292      167,515    
Total assets  $ 2,231,333      $ 2,208,493    
             
Liabilities:            
Interest-bearing checking deposits  $ 286,487  $ 164  0.06  $ 230,031  $ 177  0.08
Money market savings  319,958  314  0.10  330,839  509  0.15
Regular savings  536,701  313  0.06  510,005  790  0.15
Time deposits  299,792  3,795  1.27  363,225  5,162  1.42
Total time and interest-bearing deposits  1,442,938  4,586  0.32  1,434,100  6,638  0.46
             
Short-term borrowings  72,211  48  0.07  108,023  326  0.30
Long-term debt  --   --   --   109  4  3.67
Subordinated notes and capital securities  10,710  483  4.51  21,921  1,206  5.50
Total borrowings  82,921  531  0.64  130,053  1,536  1.18
Total interest-bearing liabilities  1,525,859  5,117  0.34  1,564,153  8,174  0.52
Demand deposits, non-interest bearing  390,420      327,576    
Accrued expenses and other liabilities  33,515      34,478    
Total liabilities  1,949,794      1,926,207    
             
Shareholders' Equity:            
Common stock  91,332      91,332    
Additional paid-in capital  64,874      64,517    
Retained earnings and other equity  125,333      126,437    
Total shareholders' equity  281,539      282,286    
Total liabilities and shareholders' equity  $ 2,231,333      $ 2,208,493    
Net interest income    $ 77,237      $ 77,320  
             
Net interest spread      3.73      3.78
Effect of net interest-free funding sources      0.08      0.11
Net interest margin      3.81%      3.89%
Ratio of average interest-earning assets to average interest-bearing liabilities 132.75%     127.12%    
             
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 twelve months ended December 31, 2013 and 2012 have been calculated using the Corporation's federal
   applicable rate of 35.0%.
Mike Keim
UNIVEST CORPORATION OF PENNSYLVANIA
Chief Financial Officer
215-721-2511,