| CONTACT: | William S. Aichele |
| | UNIVEST CORPORATION OF PENNSYLVANIA |
| | Chairman, President and CEO |
| | 215-721-2460 |
FOR IMMEDIATE RELEASE
| | UNIVEST CORPORATION OF PENNSYLVANIA – UNIVEST NATIONAL |
| | BANK AND TRUST CO. – REPORTS SECOND QUARTER EARNINGS |
SOUDERTON, Pa., July 23, 2008 – Univest Corporation of Pennsylvania (NASDAQ: UVSP), parent company of Univest National Bank and Trust Co. of Souderton, Pa., has reported net income of $5,874,000 or $0.46 basic net income per share for the second quarter ended June 30, 2008, compared to $6,075,000 or $0.47 basic net income per share for the second quarter ended June 30, 2007. Diluted earnings per share were $0.46 for the second quarter ended June 30, 2008, compared to $0.47 per share for the second quarter ended June 30, 2007.
For the six months ended June 30, 2008, Univest reported net income of $12,595,000 or $0.98 basic net income per share, compared to $12,322,000 or $0.95 basic net income per share reported for the six months ended June 30, 2007. This net income change represents an increase of 2.2%. Diluted earnings per share were $0.98 and $0.95 for the six months ended June 30, 2008 and 2007 respectively.
On July 1, 2008, Univest Corporation paid a quarterly cash dividend of $0.20 per share.
As of June 30, 2008, assets totaled $2,012,659,000 compared to $1,978,272,000 at June 30, 2007. This is an increase of 1.7%. Total shareholders’ equity increased 8.3% year-over-year with $203,138,000 reported as of June 30, 2008, compared to $187,653,000 as of June 30, 2007.
About Univest Corporation
Headquartered in Souderton, Pa., Univest Corporation of Pennsylvania and its subsidiaries serve the financial needs of residents, businesses, and nonprofit organizations in Bucks, Chester, and Montgomery counties. Univest National Bank and Trust Co. offers customers 33 financial service centers, 12 retirement financial services centers, and 38 ATM locations throughout the region, and is the parent company of Univest Capital, Inc. (doing business as Vanguard Leasing, Inc.), a small ticket commercial leasing business; Univest Insurance, Inc., an independent insurance agency headquartered in Lansdale, Pa., which serves commercial and personal customers; and Univest Investments, Inc., a full-service broker-dealer and investment advisory firm. For more information on Univest Corporation of Pennsylvania and its subsidiaries, please visit www.univest.net.
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This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission.
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2008
(Dollars in thousands)
Balance Sheet (Period End) | | 06/30/08 | | 03/31/08 | | 12/31/07 | | 09/30/07 | | 06/30/07 | |
| Assets | | $ | 2,012,659 | | $ | 2,059,572 | | $ | 1,972,505 | | $ | 1,952,375 | | $ | 1,978,272 | |
| Securities | | | 429,844 | | | 471,962 | | | 423,448 | | | 395,027 | | | 397,464 | |
| Loans and leases, gross | | | 1,398,269 | | | 1,357,887 | | | 1,355,442 | | | 1,371,374 | | | 1,380,736 | |
| Allowance for loan and lease losses | | | 13,713 | | | 12,997 | | | 13,086 | | | 13,872 | | | 13,793 | |
| Loans and leases, net | | | 1,384,556 | | | 1,344,890 | | | 1,342,356 | | | 1,357,502 | | | 1,366,943 | |
| Total Deposits | | | 1,504,007 | | | 1,616,843 | | | 1,532,603 | | | 1,518,163 | | | 1,556,701 | |
| Non-interest bearing deposits | | | 233,436 | | | 230,531 | | | 226,513 | | | 228,908 | | | 238,141 | |
| NOW, Money Market and Savings | | | 788,177 | | | 925,613 | | | 816,294 | | | 748,896 | | | 743,524 | |
| Time deposits | | | 482,394 | | | 460,699 | | | 489,796 | | | 540,359 | | | 575,036 | |
| Borrowings | | | 275,345 | | | 202,073 | | | 208,729 | | | 209,921 | | | 202,786 | |
| Shareholders' equity | | | 203,138 | | | 203,263 | | | 198,726 | | | 191,947 | | | 187,653 | |
| | | For the three months ended | | For the six months ended | |
Balance Sheet (Average) | | 06/30/08 | | 03/31/08 | | 12/31/07 | | 09/30/07 | | 06/30/07 | | 06/30/08 | | 06/30/07 | |
| Assets | | $ | 2,044,987 | | $ | 2,005,682 | | $ | 1,951,233 | | $ | 1,944,906 | | $ | 1,930,277 | | $ | 2,025,337 | | $ | 1,916,195 | |
| Securities | | | 459,469 | | | 449,828 | | | 407,461 | | | 392,277 | | | 383,078 | | | 454,649 | | | 383,476 | |
| Loans and leases, gross | | | 1,392,177 | | | 1,354,584 | | | 1,356,625 | | | 1,373,172 | | | 1,382,398 | | | 1,373,380 | | | 1,369,170 | |
| Deposits | | | 1,560,015 | | | 1,565,693 | | | 1,522,238 | | | 1,520,998 | | | 1,498,085 | | | 1,562,853 | | | 1,475,557 | |
| Shareholders' equity | | | 205,464 | | | 200,439 | | | 194,505 | | | 189,420 | | | 189,417 | | | 202,954 | | | 188,439 | |
| | | 06/30/08 | | 03/31/08 | | 12/31/07 | | 09/30/07 | | 06/30/07 | |
| Nonaccrual loans and leases | | $ | 6,992 | | $ | 6,165 | | $ | 6,878 | | $ | 7,380 | | $ | 7,878 | |
| Troubled debt restructured | | | 423 | | | - | | | - | | | - | | | - | |
| Other real estate owned | | | - | | | - | | | - | | | - | | | 333 | |
| Nonperforming assets | | | 10,422 | | | 9,680 | | | 8,795 | | | 9,033 | | | 9,575 | |
| Allowance for loan and lease losses | | | 13,713 | | | 12,997 | | | 13,086 | | | 13,872 | | | 13,793 | |
| Nonperforming loans and leases / Loans and leases | | | 0.75 | % | | 0.71 | % | | 0.65 | % | | 0.66 | % | | 0.67 | % |
| Allowance for loan and lease losses / Loans and leases | | | 0.98 | % | | 0.96 | % | | 0.97 | % | | 1.01 | % | | 1.00 | % |
| Allowance for loan and lease losses / Nonperforming loans | | | 131.58 | % | | 134.27 | % | | 148.79 | % | | 153.57 | % | | 149.24 | % |
| | | For the three months ended | | For the six months ended | |
| | | 06/30/08 | | 03/31/08 | | 12/31/07 | | 09/30/07 | | 06/30/07 | | 06/30/08 | | 06/30/07 | |
| Net loan and lease charge-offs | | $ | 1,582 | | $ | 1,088 | | $ | 1,219 | | $ | 377 | | $ | 274 | | $ | 2,670 | | $ | 767 | |
| Net loan and lease charge-offs (annualized) / Average loans and leases | | | 0.46 | % | | 0.32 | % | | 0.36 | % | | 0.11 | % | | 0.08 | % | | 0.39 | % | | 0.11 | % |
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2008
(Dollars in thousands, except per share data)
| | | For the three months ended | | For the six months ended | |
For the period: | | | 06/30/08 | | | 03/31/08 | | | 12/31/07 | | | 09/30/07 | | | 06/30/07 | | | 06/30/08 | | | 06/30/07 | |
| Interest income | | $ | 27,010 | | $ | 28,093 | | $ | 29,245 | | $ | 29,782 | | $ | 29,206 | | $ | 55,103 | | $ | 57,506 | |
| Interest expense | | | 10,370 | | | 12,162 | | | 13,715 | | | 13,989 | | | 13,568 | | | 22,532 | | | 26,423 | |
| Net interest income | | | 16,640 | | | 15,931 | | | 15,530 | | | 15,793 | | | 15,638 | | | 32,571 | | | 31,083 | |
| Provision for loan and lease losses | | | 2,297 | | | 999 | | | 433 | | | 456 | | | 653 | | | 3,296 | | | 1,277 | |
| Net interest income after provision | | | 14,343 | | | 14,932 | | | 15,097 | | | 15,337 | | | 14,985 | | | 29,275 | | | 29,806 | |
| Noninterest income | | | | | | | | | | | | | | | | | | | | | | |
| Trust fee income | | | 1,628 | | | 1,627 | | | 1,428 | | | 1,525 | | | 1,481 | | | 3,255 | | | 2,968 | |
| Service charges on deposit accounts | | | 1,708 | | | 1,658 | | | 1,764 | | | 1,706 | | | 1,702 | | | 3,366 | | | 3,352 | |
| Investment advisory commission and fee income | | | 642 | | | 615 | | | 668 | | | 647 | | | 686 | | | 1,257 | | | 1,365 | |
| Insurance commissions and fee income | | | 1,271 | | | 2,058 | | | 1,151 | | | 1,385 | | | 1,316 | | | 3,329 | | | 3,191 | |
| BOLI income | | | 1,734 | | | 791 | | | 379 | | | 390 | | | 413 | | | 2,525 | | | 734 | |
| Net gain (loss) on sales of securities | | | (213 | ) | | 56 | | | 125 | | | 259 | | | 51 | | | (157 | ) | | 51 | |
| Other income | | | 1,134 | | | 852 | | | 972 | | | 1,000 | | | 915 | | | 1,986 | | | 1,819 | |
| Total noninterest income | | | 7,904 | | | 7,657 | | | 6,487 | | | 6,912 | | | 6,564 | | | 15,561 | | | 13,480 | |
Noninterest expense | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and benefits | | | 8,019 | | | 8,168 | | | 7,518 | | | 7,659 | | | 7,840 | | | 16,187 | | | 15,634 | |
| Premises and equipment | | | 2,085 | | | 2,057 | | | 1,859 | | | 1,981 | | | 2,014 | | | 4,142 | | | 4,040 | |
| Other expense | | | 4,981 | | | 3,383 | | | 3,259 | | | 3,442 | | | 3,477 | | | 8,364 | | | 6,819 | |
| Total noninterest expense | | | 15,085 | | | 13,608 | | | 12,636 | | | 13,082 | | | 13,331 | | | 28,693 | | | 26,493 | |
| Income before taxes | | | 7,162 | | | 8,981 | | | 8,948 | | | 9,167 | | | 8,218 | | | 16,143 | | | 16,793 | |
| Applicable income taxes | | | 1,288 | | | 2,260 | | | 2,401 | | | 2,479 | | | 2,143 | | | 3,548 | | | 4,471 | |
| Net income | | $ | 5,874 | | $ | 6,721 | | $ | 6,547 | | $ | 6,688 | | $ | 6,075 | | $ | 12,595 | | $ | 12,322 | |
| Per Common Share Data: | | | | | | | | | | | | | | | | | | | | | | |
| Book value per share | | $ | 15.80 | | $ | 15.83 | | $ | 15.49 | | $ | 15.02 | | $ | 14.57 | | $ | 15.80 | | $ | 14.57 | |
| Net income per share: | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.46 | | $ | 0.52 | | $ | 0.51 | | $ | 0.52 | | $ | 0.47 | | $ | 0.98 | | $ | 0.95 | |
| Diluted | | $ | 0.46 | | $ | 0.52 | | $ | 0.51 | | $ | 0.52 | | $ | 0.47 | | $ | 0.98 | | $ | 0.95 | |
| Dividends per share | | $ | 0.20 | | $ | 0.20 | | $ | 0.20 | | $ | 0.20 | | $ | 0.20 | | $ | 0.40 | | $ | 0.40 | |
| Weighted Average Shares Outstanding | | | 12,855,379 | | | 12,839,040 | | | 12,789,263 | | | 12,811,495 | | | 12,936,462 | | | 12,847,230 | | | 12,970,027 | |
| Period End Shares Outstanding | | | 12,858,376 | | | 12,843,507 | | | 12,830,609 | | | 12,782,232 | | | 12,875,642 | | | 12,858,376 | | | 12,875,642 | |
Univest Corporation of Pennsylvania
Consolidated Selected Financial Data
June 30, 2008
| | | For the three months ended | | Year to date | |
Profitability Ratios (annualized) | | 06/30/08 | | 03/31/08 | | 12/31/07 | | 09/30/07 | | 06/30/07 | | 06/30/08 | | 06/30/07 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.16 | % | | 1.35 | % | | 1.33 | % | | 1.36 | % | | 1.26 | % | | 1.25 | % | | 1.30 | % |
| Return on average shareholders' equity | | | 11.50 | % | | 13.49 | % | | 13.35 | % | | 14.01 | % | | 12.86 | % | | 12.48 | % | | 13.19 | % |
| Net interest margin (FTE) | | | 3.74 | % | | 3.66 | % | | 3.71 | % | | 3.71 | % | | 3.71 | % | | 3.71 | % | | 3.74 | % |
| Efficiency ratio (1) | | | 57.35 | % | | 54.77 | % | | 54.45 | % | | 55.05 | % | | 57.99 | % | | 56.10 | % | | 56.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Capitalization Ratios | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Dividends Paid to Net Income | | | 43.77 | % | | 38.22 | % | | 39.10 | % | | 38.68 | % | | 42.83 | % | | 40.81 | % | | 42.18 | % |
| Shareholders' Equity to Assets (Period End) | | | 10.09 | % | | 9.87 | % | | 10.07 | % | | 9.83 | % | | 9.49 | % | | 10.09 | % | | 9.49 | % |
| (1) | Total operating expenses to net interest income before loan loss provision plus non-interest income adjusted for tax equivalent income. |
