Univest Financial (UVSP) 8-K Bank and Trust Co. – Reports Fourth Quarter and Year End Earnings

Exhibit 99.1

NEWS

CONTACT:	Mike Keim
	UNIVEST CORPORATION OF PENNSYLVANIA
	Chief Financial Officer
	215-721-2511,keimm@univest.net

FOR IMMEDIATE RELEASE

UNIVEST CORPORATION OF PENNSYLVANIA – UNIVEST

BANK AND TRUST CO. – REPORTS FOURTH QUARTER AND YEAR END EARNINGS

SOUDERTON, Pa., January 22, 2014 – 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 atwww.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%.