Attached files
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| 8-K - 8-K - UNIVEST FINANCIAL Corp | uvsp8kearningsrelease123118.htm |
Exhibit 99.1
NEWS |  |
CONTACT: Roger Deacon
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2455, DeaconR@univest.net
FOR IMMEDIATE RELEASE
UNIVEST FINANCIAL CORPORATION
REPORTS YEAR END AND FOURTH QUARTER RESULTS
(Loan Growth for 2018 of 10.7%)
SOUDERTON, Pa., January 23, 2019 - Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced net income of $50.5 million, or $1.72 diluted earnings per share, for the year ended December 31, 2018, compared to net income of $44.1 million, or $1.64 diluted earnings per share, for the year ended December 31, 2017. Net income for the quarter ended December 31, 2018 was $18.4 million, or $0.63 diluted earnings per share, compared to net income of $10.3 million, or $0.37 diluted earnings per share, for the quarter ended December 31, 2017.
The financial results for the quarter ended December 31, 2018 included a loan recovery of $1.8 million (after-tax recovery of $1.5 million), which represented $0.05 diluted earnings per share. This recovery relates to a loan the Corporation previously charged-off in the amount of $12.7 million (after-tax charge of $10.1 million), or $0.34 diluted earnings per share, in the second quarter of 2018 related to fraudulent activities by employees of the borrower. Total impact of this loss for the year ended December 31, 2018 was $10.9 million (after-tax charge of $8.6 million), or $0.29 diluted earnings per share.
In addition, the financial results for the year ended December 31, 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, offset by 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 year ended December 31, 2017. The financial results for the quarter and year ended December 31, 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").
The financial results for the quarter and year ended December 31, 2017 included a revaluation of the Corporation’s net deferred tax asset associated with the passage of the TCJA. The revaluation, which was recorded as additional income tax expense, was $1.1 million, or $0.04 of diluted earnings per share for the quarter and year ended December 31, 2017. The financial results for the year ended December 31, 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.
Loans
Gross loans and leases increased $386.5 million, or 10.7%, from December 31, 2017 and $140.4 million, or 14.5% (annualized), from September 30, 2018. The growth in loans in the fourth quarter and year ended 2018 was primarily in commercial real estate, commercial business and residential real estate loans.
Deposits
Total deposits increased $331.0 million, or 9.3%, from December 31, 2017 primarily due to increases in commercial, public funds and consumer time deposits. Total deposits increased $65.9 million, or 6.9%, from September 30, 2018 primarily due to increases in commercial and consumer deposits partially offset by a seasonal decrease in public funds deposits.
Net Interest Income and Margin
Net interest income of $158.1 million for the year ended December 31, 2018 increased $14.9 million, or 10.4%, from the prior year. The increase in net interest income for the year ended December 31, 2018 compared to the prior year was primarily due to the previously described increase in loans. Net interest margin, on a tax-equivalent basis, was 3.72% for the year ended December 31, 2018 compared to 3.78% for the year ended December 31, 2017. The favorable impact of purchase accounting accretion was 2 basis points ($1.0 million) for the year ended December 31, 2018 compared to 8 basis points ($3.0 million) for the year ended December 31, 2017. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.70% for both the years ended December 31, 2018 and 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, on a tax-equivalent basis, was 3.63% for the year ended December 31, 2017.
Net interest margin, on a tax-equivalent basis, was 3.72% for the fourth quarter of 2018, compared to 3.71% for the third quarter of 2018 and 3.76% for the fourth quarter of 2017. The favorable impact of purchase accounting accretion was 1 basis point ($200 thousand) for the quarter ended December 31, 2018 compared
to 3 basis points ($343 thousand) for the quarter ended September 30, 2018 and 4 basis points ($449 thousand) for the quarter ended December 31, 2017. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.71% for the quarter ended December 31, 2018 compared to 3.68% for the quarter ended September 30, 2018 and 3.72% for the quarter ended December 31, 2017. Net interest margin, on a tax-equivalent basis, assuming a 21% federal tax rate and excluding purchase accounting, was 3.64% for the quarter ended December 31, 2017.
Noninterest Income
Noninterest income for the year ended December 31, 2018 was $60.2 million, an increase of $933 thousand, or 1.6%, from the prior year. Noninterest income for the quarter ended December 31, 2018 was $14.4 million, an increase of $264 thousand, or 1.9%, from the fourth quarter of 2017.
Investment advisory commission and fee income increased $1.6 million, or 12.2%, for the year ended December 31, 2018, primarily due to new customer relationships and favorable market performance for the majority of 2018. Insurance commission and fee income increased $870 thousand, or 5.9%, for the year ended December 31, 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 $676 thousand, or 7.8%, for the year ended December 31, 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 $150 thousand, or 2.7%, for the year ended December 31, 2018, primarily due to increased fee income on cash management accounts.
BOLI income decreased $814 thousand for the year ended December 31, 2018 primarily due to proceeds from the previously mentioned BOLI death benefits of $446 thousand in 2018 as compared to $889 thousand in 2017 and a decrease in value of our non-qualified annuity portfolio of $109 thousand in 2018 compared to an increase of $343 thousand in 2017. The value of the non-qualified annuity portfolio declined $287 thousand in the fourth quarter of 2018. The net gain on mortgage banking decreased $898 thousand, or 22.3%, for the year ended December 31, 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 $484 thousand, or 64.9%, for the year ended December 31, 2018, which was primarily due to a net loss of $355 thousand related to valuations and sales of other real estate owned and sales of closed branches as compared to a net loss of $31 thousand of such assets in the prior year.
Noninterest Expense
Noninterest expense for the year ended December 31, 2018 was $137.2 million, an increase of $6.5 million, or 5.0%, from the prior year. Noninterest expense for the quarter ended December 31, 2018 was $33.4 million, a decrease of $44 thousand, or 0.1%, compared to the fourth quarter of 2017.
Salaries, benefits and commissions increased $4.6 million, or 6.1%, for the year ended December 31, 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. Salaries, benefits and commissions increased only $236 thousand, or 1.2%, for the quarter ended December 31, 2018 as the fourth quarter included a $496 thousand reduction related to vesting of performance based restricted stock and executive bonus as certain performance metrics were not achieved for the measurement period. Data processing expense increased $514 thousand, or 6.0%, for the year ended December 31, 2018 primarily due to increased investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Marketing and advertising expense increased $315 thousand for the year ended December 31, 2018 primarily related to deposit product campaigns and expenses related to rebranding our wealth management division during the fourth quarter of 2018. Other expense increased $804 thousand for the year ended December 31, 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 year ended December 31, 2017. Excluding restructuring costs, noninterest expense for the year increased $6.0 million, or 4.6%, from the comparable period in 2017.
Asset Quality and Provision for Loan and Lease Losses
Nonperforming assets were $28.1 million at December 31, 2018, compared to $31.0 million at September 30, 2018 and $28.6 million at December 31, 2017. During 2018, one commercial real estate loan in the amount of $12.3 million was placed on non-accrual status during the first quarter of 2018; the loan has a principal balance of $11.5 million as of December 31, 2018 due to paydowns during 2018. This increase was 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 recoveries were $1.9 million during the fourth quarter of 2018, which includes a $1.8 million recovery related to the previously discussed commercial loan charge-off. The provision for loan and lease losses was $103 thousand for the fourth quarter of 2018. For the year ended December 31, 2018, net loan and lease charge-offs of $12.5 million and the provision for loan and lease losses of $20.3 million include the previously discussed $10.9 million commercial loan net charge-off.
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 0.81% at December 31, 2018, compared to 0.79% at September 30, 2018 and 0.70% at December 31, 2017.
Tax Provision
The effective income tax rate was 16.7% for the year and 17.6% for the quarter ended December 31, 2018, respectively. The effective income tax rate was 28.7% for the year and 33.5% for the quarter ended December 31, 2017, respectively. 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 year ended December 31, 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 year ended December 31, 2018.
Dividend
On December 3, 2018, Univest declared a quarterly cash dividend of $0.20 per share, payable on January 2, 2019. This represented a 3.65% 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 fourth quarter and year end 2018 results on Thursday, January 24, 2019 at 9:00 a.m. EST. Participants may preregister at http://dpregister.com/10127550. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through February 24, 2019 by dialing 1-877-344-7529; using Conference ID: 10127550.
About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $5.0 billion in assets and $3.3 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 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 Financial Corporation and the reports Univest Financial Corporation 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 Financial Corporation. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest Financial Corporation’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 Financial Corporation is engaged; (6) technological issues that may adversely affect Univest Financial Corporation’s financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest Financial
Corporation files with the Securities and Exchange Commission. Univest Financial Corporation undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.
Univest Financial Corporation | |||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Balance Sheet (Period End) | 12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | ||||||||||||||||||||||
Assets | $ | 4,984,347 | $ | 4,801,998 | $ | 4,749,181 | $ | 4,613,959 | $ | 4,554,862 | |||||||||||||||||
Investment securities | 473,306 | 447,337 | 446,933 | 462,252 | 454,082 | ||||||||||||||||||||||
Loans held for sale | 1,754 | 106 | 1,778 | 687 | 1,642 | ||||||||||||||||||||||
Loans and leases held for investment, gross | 4,006,574 | 3,866,169 | 3,818,398 | 3,689,888 | 3,620,067 | ||||||||||||||||||||||
Allowance for loan and lease losses | 29,364 | 27,371 | 25,652 | 23,410 | 21,555 | ||||||||||||||||||||||
Loans and leases held for investment, net | 3,977,210 | 3,838,798 | 3,792,746 | 3,666,478 | 3,598,512 | ||||||||||||||||||||||
Total deposits | 3,885,933 | 3,820,048 | 3,620,786 | 3,497,293 | 3,554,919 | ||||||||||||||||||||||
Noninterest-bearing deposits | 1,055,919 | 1,047,081 | 1,055,479 | 1,002,021 | 1,040,026 | ||||||||||||||||||||||
NOW, money market and savings | 2,159,937 | 2,101,484 | 1,970,912 | 1,974,769 | 1,940,144 | ||||||||||||||||||||||
Time deposits | 670,077 | 671,483 | 594,395 | 520,503 | 574,749 | ||||||||||||||||||||||
Borrowings | 429,672 | 326,709 | 481,862 | 466,510 | 355,590 | ||||||||||||||||||||||
Shareholders' equity | 624,133 | 614,242 | 605,294 | 606,719 | 603,374 | ||||||||||||||||||||||
Balance Sheet (Average) | For the three months ended, | For the twelve months ended, | |||||||||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||||||||||||||
Assets | $ | 4,890,519 | $ | 4,817,321 | $ | 4,682,827 | $ | 4,555,977 | $ | 4,442,743 | $ | 4,737,772 | $ | 4,356,540 | |||||||||||||
Investment securities | 464,684 | 453,422 | 450,375 | 457,926 | 456,045 | 456,612 | 463,652 | ||||||||||||||||||||
Loans and leases, gross | 3,894,298 | 3,832,295 | 3,743,195 | 3,634,510 | 3,505,260 | 3,776,940 | 3,420,847 | ||||||||||||||||||||
Deposits | 3,938,378 | 3,792,627 | 3,563,956 | 3,484,044 | 3,508,676 | 3,696,264 | 3,407,223 | ||||||||||||||||||||
Shareholders' equity | 619,204 | 611,803 | 611,667 | 605,973 | 554,071 | 612,197 | 527,087 | ||||||||||||||||||||
Asset Quality Data (Period End) | |||||||||||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | |||||||||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases | $ | 26,208 | $ | 27,559 | $ | 30,148 | $ | 27,694 | $ | 14,517 | |||||||||||||||||
Accruing loans and leases 90 days or more past due | 192 | 1,224 | 150 | 2,295 | 761 | ||||||||||||||||||||||
Accruing troubled debt restructured loans and leases | 542 | 766 | 790 | 1,032 | 11,435 | ||||||||||||||||||||||
Total nonperforming loans | 26,942 | 29,549 | 31,088 | 31,021 | 26,713 | ||||||||||||||||||||||
Other real estate owned | 1,187 | 1,433 | 1,742 | 1,843 | 1,843 | ||||||||||||||||||||||
Total nonperforming assets | $ | 28,129 | $ | 30,982 | $ | 32,830 | $ | 32,864 | $ | 28,556 | |||||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment | 0.65 | % | 0.71 | % | 0.79 | % | 0.75 | % | 0.40 | % | |||||||||||||||||
Nonperforming loans and leases / Loans and leases held for investment | 0.67 | % | 0.76 | % | 0.81 | % | 0.84 | % | 0.74 | % | |||||||||||||||||
Nonperforming assets / Total assets | 0.56 | % | 0.65 | % | 0.69 | % | 0.71 | % | 0.63 | % | |||||||||||||||||
Allowance for loan and lease losses | $ | 29,364 | $ | 27,371 | $ | 25,652 | $ | 23,410 | $ | 21,555 | |||||||||||||||||
Allowance for loan and lease losses / Loans and leases held for investment | 0.73 | % | 0.71 | % | 0.67 | % | 0.63 | % | 0.60 | % | |||||||||||||||||
Allowance for loan and lease losses / Loans and leases held for investment (excluding acquired loans at period-end) | 0.81 | % | 0.79 | % | 0.76 | % | 0.73 | % | 0.70 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 112.04 | % | 99.32 | % | 85.09 | % | 84.53 | % | 148.48 | % | |||||||||||||||||
Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 108.99 | % | 92.63 | % | 82.51 | % | 75.47 | % | 80.69 | % | |||||||||||||||||
Acquired credit impaired loans | $ | 695 | $ | 900 | $ | 998 | $ | 1,525 | $ | 1,583 | |||||||||||||||||
For the three months ended, | For the twelve months ended, | ||||||||||||||||||||||||||
12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | |||||||||||||||||||||
Net loan and lease (recoveries) charge-offs | $ | (1,890 | ) | $ | 1,026 | $ | 13,167 | $ | 198 | $ | 980 | $ | 12,501 | $ | 5,836 | ||||||||||||
Net loan and lease (recoveries) charge-offs (annualized)/Average loans and leases | (0.19 | )% | 0.11 | % | 1.41 | % | 0.02 | % | 0.11 | % | 0.33 | % | 0.17 | % | |||||||||||||
Univest Financial Corporation | |||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||
For the three months ended, | For the twelve months ended, | ||||||||||||||||||||||||||
For the period: | 12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||||||||
Interest income | $ | 51,239 | $ | 49,255 | $ | 46,460 | $ | 43,534 | $ | 42,417 | $ | 190,488 | $ | 163,015 | |||||||||||||
Interest expense | 9,862 | 8,832 | 7,470 | 6,262 | 5,711 | 32,426 | 19,839 | ||||||||||||||||||||
Net interest income | 41,377 | 40,423 | 38,990 | 37,272 | 36,706 | 158,062 | 143,176 | ||||||||||||||||||||
Provision for loan and lease losses | 103 | 2,745 | 15,409 | 2,053 | 1,992 | 20,310 | 9,892 | ||||||||||||||||||||
Net interest income after provision | 41,274 | 37,678 | 23,581 | 35,219 | 34,714 | 137,752 | 133,284 | ||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||
Trust fee income | 1,882 | 1,960 | 2,044 | 1,996 | 2,208 | 7,882 | 8,055 | ||||||||||||||||||||
Service charges on deposit accounts | 1,516 | 1,454 | 1,335 | 1,327 | 1,555 | 5,632 | 5,482 | ||||||||||||||||||||
Investment advisory commission and fee income | 3,852 | 3,785 | 3,778 | 3,683 | 3,485 | 15,098 | 13,454 | ||||||||||||||||||||
Insurance commission and fee income | 3,415 | 3,643 | 3,712 | 4,888 | 3,258 | 15,658 | 14,788 | ||||||||||||||||||||
Other service fee income | 2,448 | 2,284 | 2,431 | 2,169 | 2,301 | 9,332 | 8,656 | ||||||||||||||||||||
Bank owned life insurance income | 430 | 865 | 1,210 | 669 | 841 | 3,174 | 3,988 | ||||||||||||||||||||
Net gain on sales of investment securities | — | — | — | 10 | 5 | 10 | 48 | ||||||||||||||||||||
Net gain on mortgage banking activities | 713 | 754 | 942 | 716 | 465 | 3,125 | 4,023 | ||||||||||||||||||||
Other income (loss) | 160 | 116 | (138 | ) | 124 | 34 | 262 | 746 | |||||||||||||||||||
Total noninterest income | 14,416 | 14,861 | 15,314 | 15,582 | 14,152 | 60,173 | 59,240 | ||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||
Salaries, benefits and commissions | 19,576 | 20,321 | 20,065 | 20,647 | 19,340 | 80,609 | 75,992 | ||||||||||||||||||||
Premises and equipment | 3,469 | 3,557 | 3,600 | 3,780 | 3,636 | 14,406 | 14,551 | ||||||||||||||||||||
Data processing | 2,352 | 2,339 | 2,091 | 2,232 | 2,243 | 9,014 | 8,500 | ||||||||||||||||||||
Professional fees | 1,335 | 1,370 | 1,331 | 1,355 | 1,391 | 5,391 | 5,325 | ||||||||||||||||||||
Marketing and advertising | 432 | 461 | 526 | 381 | 360 | 1,800 | 1,485 | ||||||||||||||||||||
Deposit insurance premiums | 449 | 544 | 452 | 391 | 374 | 1,836 | 1,636 | ||||||||||||||||||||
Intangible expense | 481 | 479 | 594 | 612 | 687 | 2,166 | 2,582 | ||||||||||||||||||||
Restructuring charges | — | — | — | 571 | — | 571 | — | ||||||||||||||||||||
Other expense | 5,302 | 5,300 | 5,688 | 5,156 | 5,409 | 21,446 | 20,642 | ||||||||||||||||||||
Total noninterest expense | 33,396 | 34,371 | 34,347 | 35,125 | 33,440 | 137,239 | 130,713 | ||||||||||||||||||||
Income before taxes | 22,294 | 18,168 | 4,548 | 15,676 | 15,426 | 60,686 | 61,811 | ||||||||||||||||||||
Income tax expense | 3,922 | 3,204 | 191 | 2,826 | 5,162 | 10,143 | 17,717 | ||||||||||||||||||||
Net income | $ | 18,372 | $ | 14,964 | $ | 4,357 | $ | 12,850 | $ | 10,264 | $ | 50,543 | $ | 44,094 | |||||||||||||
Per common share data: | |||||||||||||||||||||||||||
Book value per share | $ | 21.32 | $ | 20.89 | $ | 20.58 | $ | 20.64 | $ | 20.57 | $ | 21.32 | $ | 20.57 | |||||||||||||
Net income per share: | |||||||||||||||||||||||||||
Basic | $ | 0.63 | $ | 0.51 | $ | 0.15 | $ | 0.44 | $ | 0.37 | $ | 1.72 | $ | 1.64 | |||||||||||||
Diluted | $ | 0.63 | $ | 0.51 | $ | 0.15 | $ | 0.44 | $ | 0.37 | $ | 1.72 | $ | 1.64 | |||||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.80 | $ | 0.80 | |||||||||||||
Weighted average shares outstanding | 29,319,664 | 29,402,405 | 29,403,946 | 29,354,887 | 27,481,309 | 29,370,217 | 26,861,863 | ||||||||||||||||||||
Period end shares outstanding | 29,270,852 | 29,407,076 | 29,406,450 | 29,391,934 | 29,334,859 | 29,270,852 | 29,334,859 | ||||||||||||||||||||
Univest Financial Corporation | |||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
For the three months ended, | For the twelve months ended, | ||||||||||||||||||||||||||
Profitability Ratios (annualized) | 12/31/2018 | 9/30/2018 | 6/30/2018 | 3/31/2018 | 12/31/2017 | 12/31/2018 | 12/31/2017 | ||||||||||||||||||||
Return on average assets | 1.49 | % | 1.23 | % | 0.37 | % | 1.14 | % | 0.92 | % | 1.07 | % | 1.01 | % | |||||||||||||
Return on average assets, excluding restructuring charges (1), (2) | 1.49 | % | 1.23 | % | 0.37 | % | 1.18 | % | 0.92 | % | 1.08 | % | 1.01 | % | |||||||||||||
Return on average shareholders' equity | 11.77 | % | 9.70 | % | 2.86 | % | 8.60 | % | 7.35 | % | 8.26 | % | 8.37 | % | |||||||||||||
Return on average shareholder's equity, excluding restructuring charges (1), (2) | 11.77 | % | 9.70 | % | 2.86 | % | 8.90 | % | 7.35 | % | 8.33 | % | 8.37 | % | |||||||||||||
Return on average tangible common equity, excluding restructuring charges (1), (2), (5) | 16.52 | % | 13.70 | % | 4.04 | % | 12.65 | % | 10.89 | % | 11.77 | % | 12.75 | % | |||||||||||||
Net interest margin (FTE) | 3.72 | % | 3.71 | % | 3.73 | % | 3.72 | % | 3.76 | % | 3.72 | % | 3.78 | % | |||||||||||||
Efficiency ratio (3) | 59.0 | % | 61.2 | % | 62.1 | % | 65.4 | % | 63.4 | % | 61.9 | % | 62.2 | % | |||||||||||||
Efficiency ratio, excluding restructuring charges (1), (3), (4) | 59.0 | % | 61.2 | % | 62.1 | % | 64.3 | % | 63.4 | % | 61.6 | % | 62.2 | % | |||||||||||||
Capitalization Ratios | |||||||||||||||||||||||||||
Dividends declared to net income | 31.9 | % | 39.3 | % | 135.0 | % | 45.7 | % | 57.1 | % | 46.5 | % | 49.6 | % | |||||||||||||
Shareholders' equity to assets (Period End) | 12.52 | % | 12.79 | % | 12.75 | % | 13.15 | % | 13.25 | % | 12.52 | % | 13.25 | % | |||||||||||||
Tangible common equity to tangible assets (5) | 9.29 | % | 9.43 | % | 9.33 | % | 9.64 | % | 9.68 | % | 9.29 | % | 9.68 | % | |||||||||||||
Tangible book value per share (5) | $ | 15.25 | $ | 14.83 | $ | 14.51 | $ | 14.54 | $ | 14.44 | $ | 15.25 | $ | 14.44 | |||||||||||||
Tangible book value per share - Core (5), (6) | $ | 15.63 | $ | 15.26 | $ | 14.91 | $ | 14.90 | $ | 14.57 | $ | 15.63 | $ | 14.57 | |||||||||||||
Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||
Tier 1 leverage ratio | 10.13 | % | 10.07 | % | 10.19 | % | 10.47 | % | 10.48 | % | 10.13 | % | 10.48 | % | |||||||||||||
Common equity tier 1 risk-based capital ratio | 10.88 | % | 10.99 | % | 10.89 | % | 11.16 | % | 11.11 | % | 10.88 | % | 11.11 | % | |||||||||||||
Tier 1 risk-based capital ratio | 10.88 | % | 10.99 | % | 10.89 | % | 11.16 | % | 11.11 | % | 10.88 | % | 11.11 | % | |||||||||||||
Total risk-based capital ratio | 13.70 | % | 13.87 | % | 13.76 | % | 14.04 | % | 14.00 | % | 13.70 | % | 14.00 | % | |||||||||||||
(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 Financial Corporation 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 $6,768 at December 31, 2018, $6,715 at September 30, 2018, $6,650 at June 30, 2018, $6,605 at March 31, 2018 and $6,573 at December 31, 2017. | |||||||||||||||||||||||||||
(6) Tangible equity as defined in (5), excluding the impact of accumulated other comprehensive (loss) income on available-for-sale investment securities, net (($11,221) at December 31, 2018, ($12,873) at September 30, 2018, ($11,987) at June 30, 2018, ($10,477) at March 31, 2018 and ($4,061) at December 31, 2017), divided by total shares outstanding. | |||||||||||||||||||||||||||
Univest Financial Corporation | |||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
Tax Equivalent Basis | December 31, 2018 | September 30, 2018 | |||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 89,784 | $ | 480 | 2.12 | % | $ | 80,678 | $ | 398 | 1.96 | % | |||||||||||
U.S. government obligations | 22,307 | 89 | 1.58 | 22,331 | 90 | 1.60 | |||||||||||||||||
Obligations of state and political subdivisions | 65,134 | 553 | 3.37 | 68,703 | 581 | 3.36 | |||||||||||||||||
Other debt and equity securities | 377,243 | 2,494 | 2.62 | 362,388 | 2,258 | 2.47 | |||||||||||||||||
Federal funds sold and other earning assets | 30,175 | 468 | 6.15 | 31,107 | 484 | 6.17 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 584,643 | 4,084 | 2.77 | 565,207 | 3,811 | 2.68 | |||||||||||||||||
Commercial, financial, and agricultural loans | 782,666 | 10,322 | 5.23 | 796,593 | 10,184 | 5.07 | |||||||||||||||||
Real estate—commercial and construction loans | 1,766,543 | 21,309 | 4.79 | 1,729,538 | 20,527 | 4.71 | |||||||||||||||||
Real estate—residential loans | 910,620 | 11,102 | 4.84 | 880,589 | 10,447 | 4.71 | |||||||||||||||||
Loans to individuals | 31,902 | 511 | 6.35 | 32,057 | 499 | 6.18 | |||||||||||||||||
Municipal loans and leases | 323,904 | 3,160 | 3.87 | 316,149 | 3,037 | 3.81 | |||||||||||||||||
Lease financings | 78,663 | 1,407 | 7.10 | 77,369 | 1,409 | 7.23 | |||||||||||||||||
Gross loans and leases | 3,894,298 | 47,811 | 4.87 | 3,832,295 | 46,103 | 4.77 | |||||||||||||||||
Total interest-earning assets | 4,478,941 | 51,895 | 4.60 | 4,397,502 | 49,914 | 4.50 | |||||||||||||||||
Cash and due from banks | 47,429 | 48,737 | |||||||||||||||||||||
Reserve for loan and lease losses | (28,499 | ) | (26,099 | ) | |||||||||||||||||||
Premises and equipment, net | 60,448 | 60,622 | |||||||||||||||||||||
Other assets | 332,200 | 336,559 | |||||||||||||||||||||
Total assets | $ | 4,890,519 | $ | 4,817,321 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 491,749 | $ | 708 | 0.57 | % | $ | 465,992 | $ | 541 | 0.46 | % | |||||||||||
Money market savings | 889,165 | 3,372 | 1.50 | 813,769 | 2,664 | 1.30 | |||||||||||||||||
Regular savings | 768,825 | 637 | 0.33 | 787,383 | 581 | 0.29 | |||||||||||||||||
Time deposits | 676,256 | 2,958 | 1.74 | 633,552 | 2,492 | 1.56 | |||||||||||||||||
Total time and interest-bearing deposits | 2,825,995 | 7,675 | 1.08 | 2,700,696 | 6,278 | 0.92 | |||||||||||||||||
Short-term borrowings | 56,215 | 233 | 1.64 | 129,365 | 584 | 1.79 | |||||||||||||||||
Long-term debt | 140,597 | 694 | 1.96 | 148,323 | 709 | 1.90 | |||||||||||||||||
Subordinated notes | 94,542 | 1,260 | 5.29 | 94,480 | 1,261 | 5.30 | |||||||||||||||||
Total borrowings | 291,354 | 2,187 | 2.98 | 372,168 | 2,554 | 2.72 | |||||||||||||||||
Total interest-bearing liabilities | 3,117,349 | 9,862 | 1.26 | 3,072,864 | 8,832 | 1.14 | |||||||||||||||||
Noninterest-bearing deposits | 1,112,383 | 1,091,931 | |||||||||||||||||||||
Accrued expenses and other liabilities | 41,583 | 40,723 | |||||||||||||||||||||
Total liabilities | 4,271,315 | 4,205,518 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 157,784 | 157,784 | |||||||||||||||||||||
Additional paid-in capital | 292,342 | 291,499 | |||||||||||||||||||||
Retained earnings and other equity | 169,078 | 162,520 | |||||||||||||||||||||
Total shareholders' equity | 619,204 | 611,803 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,890,519 | $ | 4,817,321 | |||||||||||||||||||
Net interest income | $ | 42,033 | $ | 41,082 | |||||||||||||||||||
Net interest spread | 3.34 | 3.36 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.38 | 0.35 | |||||||||||||||||||||
Net interest margin | 3.72 | % | 3.71 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 143.68 | % | 143.11 | % | |||||||||||||||||||
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 December 31, 2018 and September 30, 2018 have been calculated using the Corporation’s federal applicable rate of 21.0%. | |||||||||||||||||||||||
Univest Financial Corporation | |||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||
For the Three Months Ended December 31, | |||||||||||||||||||||||
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 | $ | 89,784 | $ | 480 | 2.12 | % | $ | 33,557 | $ | 92 | 1.09 | % | |||||||||||
U.S. government obligations | 22,307 | 89 | 1.58 | 24,039 | 94 | 1.55 | |||||||||||||||||
Obligations of state and political subdivisions | 65,134 | 553 | 3.37 | 79,708 | 844 | 4.20 | |||||||||||||||||
Other debt and equity securities | 377,243 | 2,494 | 2.62 | 352,298 | 1,873 | 2.11 | |||||||||||||||||
Federal funds sold and other earning assets | 30,175 | 468 | 6.15 | 27,719 | 371 | 5.31 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 584,643 | 4,084 | 2.77 | 517,321 | 3,274 | 2.51 | |||||||||||||||||
Commercial, financial, and agricultural loans | 782,666 | 10,322 | 5.23 | 752,750 | 8,608 | 4.54 | |||||||||||||||||
Real estate—commercial and construction loans | 1,766,543 | 21,309 | 4.79 | 1,566,944 | 17,798 | 4.51 | |||||||||||||||||
Real estate—residential loans | 910,620 | 11,102 | 4.84 | 802,013 | 9,097 | 4.50 | |||||||||||||||||
Loans to individuals | 31,902 | 511 | 6.35 | 27,299 | 414 | 6.02 | |||||||||||||||||
Municipal loans and leases | 323,904 | 3,160 | 3.87 | 285,821 | 3,343 | 4.64 | |||||||||||||||||
Lease financings | 78,663 | 1,407 | 7.10 | 70,433 | 1,303 | 7.34 | |||||||||||||||||
Gross loans and leases | 3,894,298 | 47,811 | 4.87 | 3,505,260 | 40,563 | 4.59 | |||||||||||||||||
Total interest-earning assets | 4,478,941 | 51,895 | 4.60 | 4,022,581 | 43,837 | 4.32 | |||||||||||||||||
Cash and due from banks | 47,429 | 44,922 | |||||||||||||||||||||
Reserve for loan and lease losses | (28,499 | ) | (20,734 | ) | |||||||||||||||||||
Premises and equipment, net | 60,448 | 63,119 | |||||||||||||||||||||
Other assets | 332,200 | 332,855 | |||||||||||||||||||||
Total assets | $ | 4,890,519 | $ | 4,442,743 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 491,749 | $ | 708 | 0.57 | % | $ | 439,397 | $ | 172 | 0.16 | % | |||||||||||
Money market savings | 889,165 | 3,372 | 1.50 | 649,861 | 1,213 | 0.74 | |||||||||||||||||
Regular savings | 768,825 | 637 | 0.33 | 841,223 | 648 | 0.31 | |||||||||||||||||
Time deposits | 676,256 | 2,958 | 1.74 | 567,982 | 1,524 | 1.06 | |||||||||||||||||
Total time and interest-bearing deposits | 2,825,995 | 7,675 | 1.08 | 2,498,463 | 3,557 | 0.56 | |||||||||||||||||
Short-term borrowings | 56,215 | 233 | 1.64 | 61,524 | 148 | 0.95 | |||||||||||||||||
Long-term debt | 140,597 | 694 | 1.96 | 188,466 | 745 | 1.57 | |||||||||||||||||
Subordinated notes | 94,542 | 1,260 | 5.29 | 94,298 | 1,261 | 5.31 | |||||||||||||||||
Total borrowings | 291,354 | 2,187 | 2.98 | 344,288 | 2,154 | 2.48 | |||||||||||||||||
Total interest-bearing liabilities | 3,117,349 | 9,862 | 1.26 | 2,842,751 | 5,711 | 0.80 | |||||||||||||||||
Noninterest-bearing deposits | 1,112,383 | 1,010,213 | |||||||||||||||||||||
Accrued expenses and other liabilities | 41,583 | 35,708 | |||||||||||||||||||||
Total liabilities | 4,271,315 | 3,888,672 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 157,784 | 148,546 | |||||||||||||||||||||
Additional paid-in capital | 292,342 | 249,778 | |||||||||||||||||||||
Retained earnings and other equity | 169,078 | 155,747 | |||||||||||||||||||||
Total shareholders' equity | 619,204 | 554,071 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,890,519 | $ | 4,442,743 | |||||||||||||||||||
Net interest income | $ | 42,033 | $ | 38,126 | |||||||||||||||||||
Net interest spread | 3.34 | 3.52 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.38 | 0.24 | |||||||||||||||||||||
Net interest margin | 3.72 | % | 3.76 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 143.68 | % | 141.50 | % | |||||||||||||||||||
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 December 31, 2018 and 2017 have been calculated using the Corporation’s federal applicable rate of 21.0% and 35.0%, respectively. | |||||||||||||||||||||||
Univest Financial Corporation | |||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||||||||||||
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 | $ | 56,984 | $ | 1,101 | 1.93 | % | $ | 26,128 | $ | 280 | 1.07 | % | |||||||||||
U.S. government obligations | 22,930 | 364 | 1.59 | 30,638 | 423 | 1.38 | |||||||||||||||||
Obligations of state and political subdivisions | 69,842 | 2,330 | 3.34 | 82,487 | 3,498 | 4.24 | |||||||||||||||||
Other debt and equity securities | 363,840 | 9,024 | 2.48 | 350,527 | 6,920 | 1.97 | |||||||||||||||||
Federal funds sold and other earning assets | 30,786 | 1,965 | 6.38 | 27,893 | 1,500 | 5.38 | |||||||||||||||||
Total interest-earning deposits, investments, federal funds sold and other earning assets | 544,382 | 14,784 | 2.72 | 517,673 | 12,621 | 2.44 | |||||||||||||||||
Commercial, financial, and agricultural loans | 793,028 | 39,156 | 4.94 | 749,563 | 33,278 | 4.44 | |||||||||||||||||
Real estate—commercial and construction loans | 1,689,983 | 78,498 | 4.64 | 1,519,883 | 68,166 | 4.48 | |||||||||||||||||
Real estate—residential loans | 870,846 | 41,270 | 4.74 | 765,493 | 34,563 | 4.52 | |||||||||||||||||
Loans to individuals | 30,242 | 1,866 | 6.17 | 28,050 | 1,636 | 5.83 | |||||||||||||||||
Municipal loans and leases | 316,280 | 12,049 | 3.81 | 282,475 | 12,856 | 4.55 | |||||||||||||||||
Lease financings | 76,561 | 5,514 | 7.20 | 75,383 | 5,533 | 7.34 | |||||||||||||||||
Gross loans and leases | 3,776,940 | 178,353 | 4.72 | 3,420,847 | 156,032 | 4.56 | |||||||||||||||||
Total interest-earning assets | 4,321,322 | 193,137 | 4.47 | 3,938,520 | 168,653 | 4.28 | |||||||||||||||||
Cash and due from banks | 45,979 | 44,424 | |||||||||||||||||||||
Reserve for loan and lease losses | (25,154 | ) | (20,219 | ) | |||||||||||||||||||
Premises and equipment, net | 61,006 | 64,583 | |||||||||||||||||||||
Other assets | 334,619 | 329,232 | |||||||||||||||||||||
Total assets | $ | 4,737,772 | $ | 4,356,540 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Interest-bearing checking deposits | $ | 461,676 | $ | 1,924 | 0.42 | % | $ | 437,678 | $ | 527 | 0.12 | % | |||||||||||
Money market savings | 764,777 | 9,137 | 1.19 | 582,703 | 3,390 | 0.58 | |||||||||||||||||
Regular savings | 798,332 | 2,357 | 0.30 | 847,510 | 2,089 | 0.25 | |||||||||||||||||
Time deposits | 601,674 | 8,768 | 1.46 | 566,079 | 5,271 | 0.93 | |||||||||||||||||
Total time and interest-bearing deposits | 2,626,459 | 22,186 | 0.84 | 2,433,970 | 11,277 | 0.46 | |||||||||||||||||
Short-term borrowings | 144,312 | 2,420 | 1.68 | 105,552 | 904 | 0.86 | |||||||||||||||||
Long-term debt | 150,032 | 2,777 | 1.85 | 186,109 | 2,621 | 1.41 | |||||||||||||||||
Subordinated notes | 94,451 | 5,043 | 5.34 | 94,208 | 5,037 | 5.35 | |||||||||||||||||
Total borrowings | 388,795 | 10,240 | 2.63 | 385,869 | 8,562 | 2.22 | |||||||||||||||||
Total interest-bearing liabilities | 3,015,254 | 32,426 | 1.08 | 2,819,839 | 19,839 | 0.70 | |||||||||||||||||
Noninterest-bearing deposits | 1,069,805 | 973,253 | |||||||||||||||||||||
Accrued expenses and other liabilities | 40,516 | 36,361 | |||||||||||||||||||||
Total liabilities | 4,125,575 | 3,829,453 | |||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||
Common stock | 157,784 | 145,564 | |||||||||||||||||||||
Additional paid-in capital | 291,148 | 235,578 | |||||||||||||||||||||
Retained earnings and other equity | 163,265 | 145,945 | |||||||||||||||||||||
Total shareholders' equity | 612,197 | 527,087 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 4,737,772 | $ | 4,356,540 | |||||||||||||||||||
Net interest income | $ | 160,711 | $ | 148,814 | |||||||||||||||||||
Net interest spread | 3.39 | 3.58 | |||||||||||||||||||||
Effect of net interest-free funding sources | 0.33 | 0.20 | |||||||||||||||||||||
Net interest margin | 3.72 | % | 3.78 | % | |||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 143.32 | % | 139.67 | % | |||||||||||||||||||
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 twelve months ended December 31, 2018 and 2017 have been calculated using the Corporation’s federal applicable rate of 21.0% and 35.0%, respectively. | |||||||||||||||||||||||