SOUDERTON, Pa., April 22, 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 March 31, 2015. Univest reported net income of $6.1 million or $0.31 diluted earnings per share for the quarter ended March 31, 2015, a 7% increase from reported net income of $5.7 million or $0.35 diluted earnings per share for the quarter ended March 31, 2014. The results for the quarter ended March 31, 2015 included $1.8 million of integration and acquisition-related costs associated with Valley Green Bank, a Division of the Bank ("Valley Green Bank") or $0.06 diluted earnings per share on a tax affected basis. Excluding these costs, net income for the quarter ended March 31, 2015 would have been $7.3 million or $0.37 diluted earnings per share. The current quarter is the first reporting period reflecting financial results inclusive of the Valley Green Bank acquisition which Univest completed on January 1, 2015. On April 13, 2015, Univest completed the Valley Green Bank system conversion, moving all operations to Univest and providing all Univest and Valley Green Bank customers with access to our expanded branch and ATM network.
Loans
Gross loans and leases increased $417.2 million from December 31, 2014 and $483.4 million from March 31, 2014, which included $381.7 million of loans acquired from Valley Green Bank. Organic loan growth was 2% (8% annualized) from December 31, 2014 and 7% from March 31, 2014. The growth in loans from December 31, 2014 was primarily in commercial real estate loans and residential real estate loans. The growth in loans from March 31, 2014 was mainly due to growth in commercial real estate loans, municipal loans and leases and residential real estate loans as economic conditions continued to improve.
Deposits
Total deposits increased $393.5 million from December 31, 2014 and $415.1 million from March 31, 2014, primarily due to $385.9 million of deposits acquired from Valley Green Bank.
Borrowings
On March 30, 2015, the Corporation completed the issuance of $50 million in aggregate principal amount fixed-to-floating rate subordinated notes in a private placement transaction to institutional accredited investors. 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. The net proceeds of the offering, which approximated $49 million, increased regulatory capital and will be used for general corporate purposes and to support both organic growth as well as acquisitions, should such opportunities arise. In conjunction with the issuance, the Corporation requested that Kroll Bond Rating Agency ("KBRA") assign a senior unsecured debt rating, a subordinated debt rating and a short-term rating to the Corporation and a deposit rating and short-term rating to the Bank. As such, KBRA assigned the Corporation a senior unsecured debt rating of BBB+, a subordinated debt rating of BBB and a short-term rating of K2. In addition, KBRA assigned a deposit rating of A- and a short-term rating of K2 to the Bank. The outlook on all ratings is stable.
Net Interest Income and Margin
Net interest income increased $5.4 million to $23.3 million for the first quarter of 2015 from the same period in 2014. The net interest margin on a tax-equivalent basis for the first quarter of 2015 was 4.12%, compared to 3.78% for the fourth quarter of 2014 and 3.96% for the first quarter of 2014. The increases in the first quarter net interest income and net interest margin were mainly due to the impact of the Valley Green Bank acquisition which includes a full quarter of 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).
Non-Interest Income
Non-interest income for the quarter ended March 31, 2015 was $13.4 million, an increase of $1.3 million or 11% from the first quarter of 2014. Insurance commission and fee income increased $814 thousand for the quarter, primarily due to the acquisition of Sterner Insurance on July 1, 2014. The net gain on mortgage banking activities increased $909 thousand for the quarter mainly due to an increase in purchase volume. Funded first mortgage volume for the quarter ended March 31, 2015 increased $30.1 million or 174% compared to 2014. These favorable increases were partially offset by a $286 thousand decline in investment advisory commission and fee income 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 March 31, 2015 was $27.4 million, an increase of $6.5 million or 31% compared to the first quarter of 2014. Non-interest expense for the first quarter of 2015 was impacted by the Valley Green Bank acquisition which included integration and acquisition-related costs totaling $1.8 million and additional expenses related to staffing, branch offices and operations. Salaries and benefit expense increased $2.6 million primarily attributable to the Valley Green Bank and Sterner Insurance acquisitions. Premises and equipment expenses increased $959 thousand mainly due to the Valley Green Bank acquisition and increased investments in computer equipment and software. Commission expense increased $224 thousand mostly due to the increase in mortgage banking volume.
Financial Centers
Costs associated with maintaining the Bank's Financial Center (FC) network have increased while transaction volumes, consistent with the industry, are on the decline as a result of new technology-based solutions bringing added convenience services to both individuals and businesses. These technology solutions have greatly reduced the need for customers to visit FCs for routine transactions while the demand for consultative services and solutions related to Univest's integrated financial solution platform has increased. As such, over the last two years Univest conducted a market research study to determine the optimal locations for its FCs and developed a new FC model, which is smaller in size, combines enhanced technology with personal service and provides consultative services and solutions delivered by personal bankers. Combined, these efforts have led to the development of a comprehensive FC optimization plan which includes opening new Univest FCs in growth markets while closing FCs which operate in close proximity to other centers. The first of Univest's new FCs was opened in Newtown during the first quarter of 2015, and we are targeting the opening of additional FCs in Collegeville and the Fairmount section of Philadelphia during the third quarter of 2015. In conjunction with an action plan finalized and approved in April, Univest will also close six FCs in the third quarter of 2015 and transition customers to FCs located within a few miles of the closed FC. These closures will require Univest to record a restructuring charge of $1.3 million in the second quarter of 2015. The projected annualized savings from these closures 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 $18.6 million at March 31, 2015 compared to $17.3 million at December 31, 2014 and $19.3 million at March 31, 2014. Net loan and lease charge-offs were $802 thousand during the first quarter of 2015 compared to $1.4 million for the first quarter of 2014. Non-accrual loans and leases as a percentage of total loans and leases held for investment were 0.91% at March 31, 2015 compared to 1.07% at December 31, 2014 and 1.24% at March 31, 2014. The provision for loan and lease losses was $1.1 million for the first quarter of 2015, compared to $1.5 million for the first quarter of 2014.
The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.02% at March 31, 2015, compared to 1.27% at December 31, 2014 and 1.57% at March 31, 2014. At March 31, 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 1.26%. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 112.52% at March 31, 2015, compared to 119.18% at December 31, 2014 and 127.38% at March 31, 2014.
Capital
Univest continues to remain well-capitalized at March 31, 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 March 31, 2015 under Basel III and inclusive of the Valley Green Bank acquisition was 13.26%, well in excess of the regulatory minimum for well-capitalized status of 10%.
During the quarter, Univest repurchased 238,046 shares of common stock at a cost of $4.6 million under its Board approved share repurchase program. Shares available for future repurchases under the plan totaled 561,954 at March 31, 2015. Total shares outstanding at March 31, 2015 were 19,820,824.
Dividend
On February 25, 2015, Univest declared a quarterly cash dividend of $0.20 per share, payable on April 1, 2015. This represented a 4.01% 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 $2.8 billion in assets and more than $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 | |||||
| March 31, 2015 | |||||
| (Dollars in thousands) | |||||
| Balance Sheet (Period End) | 03/31/15 | 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 |
| Assets | $ 2,757,495 | $ 2,235,321 | $ 2,222,196 | $ 2,197,252 | $ 2,201,194 |
| Investment securities | 380,484 | 368,630 | 360,778 | 358,460 | 381,724 |
| Loans held for sale | 5,479 | 3,302 | 2,156 | 9,811 | 1,856 |
| Loans and leases held for investment, gross | 2,043,840 | 1,626,625 | 1,597,736 | 1,586,994 | 1,560,446 |
| Allowance for loan and lease losses | 20,934 | 20,662 | 21,762 | 24,094 | 24,567 |
| Loans and leases held for investment, net | 2,022,906 | 1,605,963 | 1,575,974 | 1,562,900 | 1,535,879 |
| Total deposits | 2,254,834 | 1,861,341 | 1,860,143 | 1,832,234 | 1,839,760 |
| Noninterest-bearing deposits | 509,183 | 449,339 | 436,189 | 432,399 | 426,430 |
| NOW, money market and savings | 1,293,165 | 1,159,409 | 1,162,778 | 1,131,605 | 1,145,994 |
| Time deposits | 452,486 | 252,593 | 261,176 | 268,230 | 267,336 |
| Borrowings | 91,423 | 41,974 | 38,005 | 45,066 | 41,486 |
| Shareholders' equity | 360,394 | 284,554 | 289,814 | 286,787 | 283,296 |
| Balance Sheet (Average) | For the three months ended, | ||||
| 03/31/15 | 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 | |
| Assets | $ 2,691,513 | $ 2,239,015 | $ 2,217,474 | $ 2,179,057 | $ 2,172,551 |
| Investment securities | 381,008 | 363,567 | 360,274 | 376,970 | 390,630 |
| Loans and leases, gross | 2,023,835 | 1,607,918 | 1,597,965 | 1,566,293 | 1,550,346 |
| Deposits | 2,237,830 | 1,875,938 | 1,860,138 | 1,819,546 | 1,823,589 |
| Shareholders' equity | 362,125 | 291,547 | 288,429 | 285,489 | 282,574 |
| Asset Quality Data (Period End) | |||||
| 03/31/15 | 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 | |
| Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale | $ 18,604 | $ 17,337 | $ 18,814 | $ 17,742 | $ 19,287 |
| Accruing loans and leases 90 days or more past due | 1,063 | 451 | 344 | 524 | 581 |
| Accruing troubled debt restructured loans and leases | 5,341 | 5,469 | 5,463 | 6,340 | 7,036 |
| Other real estate owned | 955 | 955 | 955 | 1,650 | 1,650 |
| Nonperforming assets | 25,963 | 24,212 | 25,576 | 26,256 | 28,554 |
| Allowance for loan and lease losses | 20,934 | 20,662 | 21,762 | 24,094 | 24,567 |
| Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 0.91% | 1.07% | 1.18% | 1.12% | 1.24% |
| Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 1.22% | 1.43% | 1.54% | 1.55% | 1.72% |
| Allowance for loan and lease losses / Loans and leases held for investment | 1.02% | 1.27% | 1.36% | 1.52% | 1.57% |
| Allowance for loan and lease losses / Loans and leases held for investment (excluding acquired loans at period-end) | 1.26% | 1.27% | 1.36% | 1.52% | 1.57% |
| Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 112.52% | 119.18% | 115.67% | 140.00% | 127.38% |
| Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 83.71% | 88.84% | 88.39% | 100.08% | 91.31% |
| Acquired credit impaired loans | 1,627 | -- | -- | -- | -- |
| For the three months ended, | |||||
| 03/31/15 | 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 | |
| Net loan and lease charge-offs | $ 802 | $ 1,748 | $ 2,565 | $ 1,724 | $ 1,402 |
| Net loan and lease charge-offs (annualized)/Average loans and leases | 0.16% | 0.43% | 0.64% | 0.44% | 0.37% |
| Univest Corporation of Pennsylvania | |||||
| Consolidated Selected Financial Data | |||||
| March 31, 2015 | |||||
| (Dollars in thousands, except per share data) | |||||
| For the three months ended, | |||||
| For the period: | 03/31/15 | 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 |
| Interest income | $ 24,738 | $ 18,995 | $ 19,219 | $ 18,725 | $ 18,946 |
| Interest expense | 1,434 | 1,039 | 978 | 981 | 998 |
| Net interest income | 23,304 | 17,956 | 18,241 | 17,744 | 17,948 |
| Provision for loan and lease losses | 1,074 | 648 | 233 | 1,251 | 1,475 |
| Net interest income after provision | 22,230 | 17,308 | 18,008 | 16,493 | 16,473 |
| Noninterest income: | |||||
| Trust fee income | 1,820 | 2,143 | 1,862 | 1,931 | 1,899 |
| Service charges on deposit accounts | 1,063 | 1,096 | 1,073 | 1,047 | 1,014 |
| Investment advisory commission and fee income | 2,763 | 2,760 | 3,086 | 3,009 | 3,049 |
| Insurance commission and fee income | 4,146 | 2,896 | 2,881 | 2,434 | 3,332 |
| Bank owned life insurance income | 353 | 461 | 346 | 443 | 378 |
| Net gain on sales of investment securities | 91 | 78 | -- | 415 | 142 |
| Net gain on mortgage banking activities | 1,258 | 698 | 616 | 519 | 349 |
| Net gain on sales of other real estate owned | -- | -- | 195 | -- | -- |
| Other income | 1,937 | 1,944 | 2,451 | 2,126 | 1,978 |
| Total noninterest income | 13,431 | 12,076 | 12,510 | 11,924 | 12,141 |
| Noninterest expense: | |||||
| Salaries and benefits | 13,314 | 10,297 | 11,035 | 10,242 | 10,671 |
| Commissions | 1,814 | 2,052 | 2,200 | 1,795 | 1,590 |
| Premises and equipment | 4,047 | 3,368 | 3,115 | 3,097 | 3,088 |
| Professional fees | 807 | 765 | 744 | 846 | 809 |
| Intangible expenses | 786 | 405 | 352 | 650 | 760 |
| Acquisition-related costs | 466 | 531 | 180 | 516 | 43 |
| Integration costs | 1,374 | -- | 8 | -- | -- |
| Other expense | 4,803 | 5,144 | 4,385 | 4,644 | 3,922 |
| Total noninterest expense | 27,411 | 22,562 | 22,019 | 21,790 | 20,883 |
| Income before taxes | 8,250 | 6,822 | 8,499 | 6,627 | 7,731 |
| Income taxes | 2,134 | 1,632 | 2,264 | 1,547 | 2,005 |
| Net income | $ 6,116 | $ 5,190 | $ 6,235 | $ 5,080 | $ 5,726 |
| Per common share data: | |||||
| Book value per share | $ 18.18 | $ 17.54 | $ 17.87 | $ 17.65 | $ 17.43 |
| Net income per share: | |||||
| Basic | $ 0.31 | $ 0.32 | $ 0.38 | $ 0.31 | $ 0.35 |
| Diluted | $ 0.31 | $ 0.32 | $ 0.38 | $ 0.31 | $ 0.35 |
| Dividends declared per share | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 |
| Weighted average shares outstanding | 19,951,242 | 16,215,580 | 16,225,596 | 16,243,161 | 16,256,047 |
| Period end shares outstanding | 19,820,824 | 16,221,607 | 16,220,249 | 16,248,495 | 16,249,152 |
| Univest Corporation of Pennsylvania | |||||
| Consolidated Selected Financial Data | |||||
| March 31, 2015 | |||||
| For the three months ended, | |||||
| Profitability Ratios (annualized) | 03/31/15 | 12/31/14 | 09/30/14 | 06/30/14 | 03/31/14 |
| Return on average assets | 0.92% | 0.92% | 1.12% | 0.94% | 1.07% |
| Return on average assets, excluding integration and acquisition-related costs | 1.10% | 1.01% | 1.14% | 1.00% | 1.07% |
| Return on average shareholders' equity | 6.85% | 7.06% | 8.58% | 7.14% | 8.22% |
| Return on average shareholders' equity, excluding integration and acquisition-related costs | 8.19% | 7.78% | 8.80% | 7.61% | 8.26% |
| Return on average tangible common equity, excluding integration and acquisition-related costs | 12.48% | 10.73% | 12.21% | 10.37% | 11.16% |
| Net interest margin (FTE) | 4.12% | 3.78% | 3.88% | 3.86% | 3.96% |
| Efficiency ratio (1) | 71.68% | 71.46% | 68.39% | 70.00% | 66.19% |
| Efficiency ratio (1), excluding acquisition-related costs and integration charges | 66.87% | 69.78% | 67.81% | 68.34% | 66.06% |
| Capitalization Ratios | |||||
| Dividends declared to net income | 65.26% | 62.49% | 52.01% | 63.96% | 56.72% |
| Shareholders' equity to assets (Period End) | 13.07% | 12.73% | 13.04% | 13.05% | 12.87% |
| Tangible common equity to tangible assets | 8.91% | 9.49% | 9.78% | 9.94% | 9.74% |
| Regulatory Capital Ratios (Period End) (2) | |||||
| Tier 1 leverage ratio | 9.43% | 10.55% | 10.50% | 10.72% | 10.64% |
| Common equity tier 1 risk-based capital ratio | 10.27% | -- | -- | -- | -- |
| Tier 1 risk-based capital ratio | 10.27% | 11.79% | 11.98% | 12.00% | 12.00% |
| Total risk-based capital ratio | 13.26% | 12.91% | 13.18% | 13.26% | 13.27% |
| (1) Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income. | |||||
| (2) Ratios at March 31, 2015 are 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. Prior period capital ratios are reported under BASEL I. | |||||
| Distribution of Assets, Liabilities and Shareholders' Equity: Interest Rates and Interest Differential | ||||||
| For the Three Months Ended March 31, | ||||||
| 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 | $ 9,135 | $ 5 | 0.22% | $ 25,403 | $ 14 | 0.22% |
| U.S. government obligations | 139,965 | 379 | 1.10 | 131,302 | 331 | 1.02 |
| Obligations of state and political subdivisions | 104,620 | 1,322 | 5.12 | 107,756 | 1,456 | 5.48 |
| Other debt and equity securities | 136,423 | 655 | 1.95 | 151,572 | 720 | 1.93 |
| Federal funds sold | 6,591 | 2 | 0.12 | -- | -- | -- |
| Total interest-earning deposits, investments and federal funds sold | 396,734 | 2,363 | 2.42 | 416,033 | 2,521 | 2.46 |
| Commercial, financial, and agricultural loans | 422,817 | 4,249 | 4.08 | 392,173 | 3,898 | 4.03 |
| Real estate—commercial and construction loans | 821,902 | 9,631 | 4.75 | 591,064 | 6,505 | 4.46 |
| Real estate—residential loans | 473,142 | 5,384 | 4.61 | 282,002 | 2,941 | 4.23 |
| Loans to individuals | 30,622 | 407 | 5.39 | 38,646 | 584 | 6.13 |
| Municipal loans and leases | 203,999 | 2,437 | 4.84 | 175,149 | 2,121 | 4.91 |
| Lease financings | 71,353 | 1,583 | 9.00 | 71,312 | 1,632 | 9.28 |
| Gross loans and leases | 2,023,835 | 23,691 | 4.75 | 1,550,346 | 17,681 | 4.63 |
| Total interest-earning assets | 2,420,569 | 26,054 | 4.37 | 1,966,379 | 20,202 | 4.17 |
| Cash and due from banks | 30,203 | 29,949 | ||||
| Reserve for loan and lease losses | (21,088) | (25,326) | ||||
| Premises and equipment, net | 40,568 | 34,250 | ||||
| Other assets | 221,261 | 167,299 | ||||
| Total assets | $ 2,691,513 | $ 2,172,551 | ||||
| Liabilities: | ||||||
| Interest-bearing checking deposits | $ 345,884 | $ 46 | 0.05 | $ 313,666 | $ 43 | 0.06 |
| Money market savings | 375,521 | 280 | 0.30 | 289,101 | 67 | 0.09 |
| Regular savings | 563,037 | 122 | 0.09 | 543,107 | 79 | 0.06 |
| Time deposits | 461,374 | 969 | 0.85 | 268,952 | 803 | 1.21 |
| Total time and interest-bearing deposits | 1,745,816 | 1,417 | 0.33 | 1,414,826 | 992 | 0.28 |
| Short-term borrowings | 46,837 | 10 | 0.09 | 39,631 | 6 | 0.06 |
| Subordinated notes (1) | 1,096 | 7 | 2.59 | -- | -- | -- |
| Total borrowings | 47,933 | 17 | 0.14 | 39,631 | 6 | 0.06 |
| Total interest-bearing liabilities | 1,793,749 | 1,434 | 0.32 | 1,454,457 | 998 | 0.28 |
| Noninterest-bearing deposits | 492,014 | 408,763 | ||||
| Accrued expenses and other liabilities | 43,625 | 26,757 | ||||
| Total liabilities | 2,329,388 | 1,889,977 | ||||
| Shareholders' Equity: | ||||||
| Common stock | 110,271 | 91,332 | ||||
| Additional paid-in capital | 120,159 | 61,774 | ||||
| Retained earnings and other equity | 131,695 | 129,468 | ||||
| Total shareholders' equity | 362,125 | 282,574 | ||||
| Total liabilities and shareholders' equity | $ 2,691,513 | $ 2,172,551 | ||||
| Net interest income | $ 24,620 | $ 19,204 | ||||
| Net interest spread | 4.05 | 3.89 | ||||
| Effect of net interest-free funding sources | 0.07 | 0.07 | ||||
| Net interest margin | 4.12% | 3.96% | ||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 134.94% | 135.20% | ||||
| (1) The interest rate on subordinated notes is calculated on a 30/360 day basis at a rate of 5.10%. | ||||||
| Notes: For rate calculation purposes, average loan and lease categories include unearned discount. | ||||||
| Nonaccrual loans and leases have been included in the average loan and lease balances. | ||||||
| Loans held for sale have been included in the average loan balances. | ||||||
| Tax-equivalent amounts for the three months ended March 31, 2015 and 2014 have been calculated using the Corporation's federal applicable rate of 35.0%. | ||||||