Univest Financial (UVSP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

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 SECOND QUARTER EARNINGS

SOUDERTON, Pa., July 23, 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 ended June 30, 2014. Univest reported net income of $5.1 million or $0.31 diluted earnings per share for the quarter ended June 30, 2014, a 5% increase from reported net income of $4.8 million or $0.29 diluted earnings per share for the quarter ended June 30, 2013. The second quarter of 2014 results include $516 thousand in acquisition-related costs or $0.02 diluted earnings per share on a tax affected basis. Net income for the six months ended June 30, 2014 was $10.8 million or $0.66 diluted earnings per share, a 6% increase in net income compared to $10.2 million or $0.61 diluted earnings per share for the comparable period in the prior year.

Loans

Gross loans and leases increased $45.5 million or 3% from December 31, 2013 ($27.0 million of the increase occurred in the second quarter, an annualized growth rate of 7%) and $87.0 million or 6% from June 30, 2013. The growth in loans from December 31, 2013 and June 30, 2013 was primarily in business loans, commercial real estate loans and residential real estate loans as economic conditions have slowly improved. While we are beginning to see increases in lending activity, household income and spending levels remain sluggish.

Deposits

Total deposits declined $12.3 million or 1% from December 31, 2013, primarily due to a decrease in public funds which was partially offset by an increase in non-interest bearing demand deposits. Total deposits decreased $40.8 million or 2% from June 30, 2013 mainly due to a decrease in money market deposits in trust customer funds being held which were invested in third party funds. In addition, maturities of time deposits were offset by an increase in noninterest-bearing deposits.

Net Interest Income and Margin

Net interest income declined $364 thousand or 2% to $17.7 million for the second quarter of 2014 compared to the second quarter of 2013. Net interest income declined $359 thousand or 1% to $35.7 million for the six months ended June 30, 2014 compared to the same period in the prior year. The decline in net interest income from the prior year was primarily attributable to a reduction in lower yielding investment securities. This decline was partially offset by the redemption of Univest’s trust preferred securities and the termination of the related interest rate swap during the second quarter of 2013, maturities of higher yielding time deposits and a decline in the rate paid on time deposits. The net interest margin on a tax-equivalent basis for the second quarter of 2014 was 3.86%, compared to 3.96% for the first quarter of 2014 and 3.78% for the second quarter of 2013.

Non-Interest Income

Non-interest income for the quarter ended June 30, 2014 was $11.9 million, an increase of $933 thousand or 8% from the comparable period in the prior year. Non-interest income for the six months ended June 30, 2014 was $24.1 million, an increase of $1.6 million or 7% from the comparable period in the prior year. Investment advisory commission and fee income increased $991 thousand for the quarter and $2.1 million for the six months ended June 30, 2014, primarily due to the acquisition of Girard Partners (“Girard”) effective January 1, 2014. Insurance commission and fee income increased $852 thousand for the six months ended June 30, 2014, primarily due to an increase in contingency revenues during the first quarter of 2014 and the acquisition of the John T. Fretz Insurance Agency on May 1, 2013. These favorable increases were partially offset by a decrease in the net gain on mortgage banking activities of $897 thousand for the quarter and $2.2 million for the six months ended June 30, 2014. In 2014, higher interest rates have reduced refinance activity and purchase activity remains sluggish. This lead to a 72% decline in funded first mortgage volume for the second quarter of 2014 and a 75% decline for the six months ended June 30, 2014, from the comparable periods in 2013. The net gain on sales of securities decreased $924 thousand for the quarter and $967 thousand for the six months ended June 30, 2014 from the comparable periods in 2013. In addition, the three and six months ended June 30, 2013 included a $1.9 million loss on the termination of an interest rate swap which was used as a hedge of trust preferred securities.

Non-Interest Expense

Non-interest expense for the quarter ended June 30, 2014 was $21.8 million, an increase of $2.5 million or 13% compared to the second quarter of 2013. Non-interest expense for the six months ended June 30, 2013 was $42.7 million, an increase of $3.2 million or 8% from the comparable period in the prior year. Salaries and benefit expense increased $883 thousand for the quarter and $1.7 million for the six months ended June 30, 2014, primarily attributable to the Girard acquisition and lower deferred loan

origination costs. Intangible expenses increased by $1.3 million for the quarter and $1.9 million for the six months ended June 30, 2014, mainly due to the Girard acquisition and the reduction to the contingent consideration liability related to the Javers acquisition which resulted in a reduction of expense of $959 thousand during the second quarter of 2013. Premises and equipment expenses increased $477 thousand for the quarter and $984 thousand for the six months ended June 30, 2014 mainly due to increased costs related to computer equipment and software, snow removal, a new leased office location in the Lehigh Valley and the Girard acquisition. Acquisition-related costs for the second quarter of 2014 totaling $516 thousand were attributable to the pending Valley Green Bank acquisition and the Sterner Insurance acquisition. These unfavorable variances were partially offset by a decrease in commission expense of $593 thousand for the quarter and $1.1 million for the six months ended June 30, 2014 mainly due to the decline in mortgage banking activity. In addition, non-interest expense during the first quarter of 2013 included restructuring charges of $539 thousand.

Asset Quality and Provision for Loan and Lease Losses

Non-accrual loans and leases, including non-accrual troubled debt restructured loans, decreased to $17.7 million at June 30, 2014, from $23.2 million at December 31, 2013 and $25.2 million at June 30, 2013. The $5.5 million decrease in non-accrual loans from December 31, 2013 was mainly due to the sale of a commercial real estate loan for $2.5 million, the payoff of another commercial real estate loan for $1.3 million and the partial charge-off of two related commercial real estate loans. Net loan and lease charge-offs were $1.7 million during the second quarter of 2014, down from $4.0 million for the second quarter of 2013. Non-accrual loans and leases as a percentage of total loans and leases (held for investment and nonaccrual loans held for sale) were 1.12% at June 30, 2014, compared to 1.51% at December 31, 2013 and 1.68% at June 30, 2013.

Accruing troubled debt restructured loans decreased to $6.3 million at June 30, 2014 from $7.9 million at December 31, 2013 and $13.7 million at June 30, 2013. The decrease of $7.4 million from June 30, 2013 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 $1.3 million for the second quarter of 2014, down $2.2 million from the second quarter of 2013. The provision for loan and lease losses was $2.7 million for the six months ended June 30, 2014, down $2.8 million from the same period in the prior year. The decreases in the loan and lease provision were mainly due to a decline in collateral value in the second quarter of 2013 for a commercial real estate borrower. The allowance for loan and lease losses as a percentage of loans and leases held for investment was 1.52% at June 30, 2014, compared to 1.59% at December 31, 2013 and 1.65% at June 30, 2013. The allowance for loan and lease losses to nonaccrual loans and leases held for investment equaled 140.00% at June 30, 2014, compared to 105.42% at December 31, 2013 and 98.06% at June 30, 2013.

Capital

Univest continues to remain well-capitalized at June 30, 2014. Total risk-based capital at June 30, 2014 was 13.26%, well in excess of the regulatory minimum for well-capitalized status of 10%.

Dividend

On May 28, 2014, Univest declared a quarterly cash dividend of $0.20 per share, payable on July 1, 2014. This represented a 3.76% 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 over $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 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 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

June 30, 2014

(Dollars in thousands)
Balance Sheet (Period End)	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13
Assets	$	2,197,252		$	2,201,194		$	2,191,559		$	2,252,996		$	2,255,601
Investment securities		358,460			381,724			402,284			462,573			485,460
Loans held for sale		9,811			1,856			2,267			3,489			3,609
Loans and leases held for investment, gross		1,586,994			1,560,446			1,541,484			1,526,241			1,499,993
Allowance for loan and lease losses		24,094			24,567			24,494			24,835			24,718
Loans and leases held for investment, net		1,562,900			1,535,879			1,516,990			1,501,406			1,475,275
Total deposits		1,832,234			1,839,760			1,844,498			1,889,046			1,873,051
Noninterest-bearing deposits		432,399			426,430			411,714			394,983			398,906
NOW, money market and savings		1,131,605			1,145,994			1,161,995			1,204,281			1,175,129
Time deposits		268,230			267,336			270,789			289,782			299,016
Borrowings		41,066			41,486			37,256			46,733			66,007
Shareholders’ equity		286,787			283,296			280,506			274,754			279,588
Balance Sheet (Average)	For the three months ended,															For the six months ended,
	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13			06/30/14			06/30/13
Assets	$	2,179,057		$	2,172,551		$	2,208,995		$	2,233,124		$	2,251,298		$	2,175,822		$	2,242,272
Investment securities		376,970			390,630			447,672			479,442			495,154			383,762			496,088
Loans and leases, gross		1,566,293			1,550,346			1,527,330			1,506,850			1,478,309			1,558,364			1,481,160
Deposits		1,819,546			1,823,589			1,858,905			1,875,578			1,812,100			1,821,556			1,801,165
Shareholders’ equity		285,489			282,574			275,983			280,245			284,491			284,039			285,021
Asset Quality Data (Period End)
	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale	$	17,742		$	19,287		$	23,235		$	23,974		$	25,207
Accruing loans and leases 90 days or more past due		524			581			413			1,954			521
Accruing troubled debt restructured loans and leases		6,340			7,036			7,943			14,106			13,696
Other real estate owned		1,650			1,650			1,650			1,650			1,650
Nonperforming assets		26,256			28,554			33,241			41,684			41,074
Allowance for loan and lease losses		24,094			24,567			24,494			24,835			24,718
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale		1.12	%		1.24	%		1.51	%		1.57	%		1.68	%
Nonperforming loans and leases / Loans and leases held for investment and nonaccrual loans held for sale		1.55	%		1.72	%		2.05	%		2.62	%		2.63	%
Allowance for loan and lease losses / Loans and leases held for investment		1.52	%		1.57	%		1.59	%		1.63	%		1.65	%
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment		140.00	%		127.38	%		105.42	%		103.59	%		98.06	%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment		100.08	%		91.31	%		77.53	%		62.03	%		62.70	%
	For the three months ended,															For the six months ended,
	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13			06/30/14			06/30/13
Net loan and lease charge-offs	$	1,724		$	1,402		$	1,955		$	3,977		$	3,950		$	3,126		$	5,548
Net loan and lease charge-offs (annualized)/Average loans and leases		0.44	%		0.37	%		0.51	%		1.05	%		1.07	%		0.40	%		0.76	%

Univest Corporation of Pennsylvania

Consolidated Selected Financial Data

June 30, 2014

(Dollars in thousands, except per share data)
	For the three months ended,												For the six months ended,
For the period:	06/30/14		03/31/14		12/31/13		09/30/13			06/30/13			06/30/14		06/30/13
Interest income	$	18,725	$	18,946	$	19,172	$	19,457		$	19,461		$	37,671	$	38,950
Interest expense		981		998		1,080		1,138			1,353			1,979		2,899
Net interest income		17,744		17,948		18,092		18,319			18,108			35,692		36,051
Provision for loan and lease losses		1,251		1,475		1,614		4,094			3,446			2,726		5,520
Net interest income after provision		16,493		16,473		16,478		14,225			14,662			32,966		30,531
Noninterest income:
Trust fee income		1,931		1,899		2,054		1,736			1,779			3,830		3,513
Service charges on deposit accounts		1,047		1,014		1,118		1,149			1,098			2,061		2,184
Investment advisory commission and fee income		3,009		3,049		1,988		1,740			2,018			6,058		3,914
Insurance commission and fee income		2,434		3,332		2,172		2,309			2,391			5,766		4,914
Bank owned life insurance income		443		378		496		1,555			413			821		917
Net gain on sales of investment securities		415		142		439		1,426			1,339			557		1,524
Net gain on mortgage banking activities		519		349		476		935			1,416			868		3,112
Net gain on sales of other real estate owned		—		—		176		198			252			—		252
Loss on termination of interest rate swap		—		—		—		—			(1,866	)		—		(1,866	)
Other income		2,126		1,978		2,197		2,154			2,151			4,104		4,002
Total noninterest income		11,924		12,141		11,116		13,202			10,991			24,065		22,466
Noninterest expense:
Salaries and benefits		10,242		10,671		10,542		9,761			9,359			20,913		19,219
Commissions		1,795		1,590		1,983		2,026			2,388			3,385		4,503
Premises and equipment		3,097		3,088		2,836		2,697			2,620			6,185		5,201
Professional fees		846		809		1,131		764			809			1,655		1,576
Acquisition-related costs		516		43		53		7			27			559		27
Intangible expenses		650		760		356		275			(683	)		1,410		(474	)
Restructuring charges		—		—		—		(5	)		—			—		539
Other expense		4,644		3,922		4,722		4,463			4,766			8,566		8,931
Total noninterest expense		21,790		20,883		21,623		19,988			19,286			42,673		39,522
Income before taxes		6,627		7,731		5,971		7,439			6,367			14,358		13,475
Income taxes		1,547		2,005		1,049		1,400			1,537			3,552		3,247
Net income	$	5,080	$	5,726	$	4,922	$	6,039		$	4,830		$	10,806	$	10,228
Per common share data:
Book value per share	$	17.65	$	17.43	$	17.22	$	16.87		$	16.76		$	17.65	$	16.76
Net income per share:
Basic	$	0.31	$	0.35	$	0.30	$	0.36		$	0.29		$	0.67	$	0.61
Diluted	$	0.31	$	0.35	$	0.30	$	0.36		$	0.29		$	0.66	$	0.61
Dividends declared per share	$	0.20	$	0.20	$	0.20	$	0.20		$	0.20		$	0.40	$	0.40
Weighted average shares outstanding		16,243,161		16,256,047		16,283,466		16,657,916			16,696,362			16,249,568		16,742,004
Period end shares outstanding		16,248,495		16,249,152		16,287,812		16,288,597			16,683,009			16,248,495		16,683,009

Univest Corporation of Pennsylvania

Consolidated Selected Financial Data

June 30, 2014

	For the three months ended,															For the six months ended,
Profitability Ratios (annualized)	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13			06/30/14			06/30/13
Return on average assets		0.94	%		1.07	%		0.88	%		1.07	%		0.86	%		1.00	%		0.92	%
Return on average shareholders’ equity		7.14	%		8.22	%		7.08	%		8.55	%		6.81	%		7.67	%		7.24	%
Net interest margin (FTE)		3.86	%		3.96	%		3.82	%		3.83	%		3.78	%		3.91	%		3.80	%
Efficiency ratio (1)		70.00	%		66.19	%		70.43	%		59.53	%		63.24	%		68.08	%		64.43	%
Efficiency ratio (1), excluding acquisition-related costs and restructuring charges		68.34	%		66.06	%		70.25	%		59.53	%		63.15	%		67.19	%		63.51	%
Capitalization Ratios
Dividends declared to net income		63.96	%		56.72	%		66.17	%		55.24	%		69.05	%		60.12	%		65.44	%
Shareholders’ equity to assets (Period End)		13.05	%		12.87	%		12.80	%		12.20	%		12.40	%		13.05	%		12.40	%
Tangible common equity to tangible assets		9.94	%		9.74	%		10.10	%		9.55	%		9.76	%		9.94	%		9.76	%
Regulatory Capital Ratios (Period End)(2)
Tier 1 leverage ratio		10.72	%		10.64	%		10.85	%		10.63	%		10.61	%		10.72	%		10.61	%
Tier 1 risk-based capital ratio		12.00	%		12.00	%		12.63	%		12.47	%		12.67	%		12.00	%		12.67	%
Total risk-based capital ratio		13.26	%		13.27	%		13.90	%		13.73	%		13.95	%		13.26	%		13.94	%

(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 June 30,
Tax Equivalent Basis	2014								2013
	Average			Income/		Average			Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	25,164		$	17		0.27	%	$	71,290		$	46		0.26	%
U.S. Government obligations		127,631			316		0.99			178,110			488		1.10
Obligations of state and political subdivisions		107,021			1,373		5.15			122,503			1,606		5.26
Other debt and equity securities		142,318			695		1.96			194,541			944		1.95
Total interest-earning deposits and investments		402,134			2,401		2.39			566,444			3,084		2.18
Commercial, financial, and agricultural loans		404,252			3,973		3.94			403,490			4,355		4.33
Real estate—commercial and construction loans		594,929			6,798		4.58			574,288			6,846		4.78
Real estate—residential loans		284,931			2,524		3.55			252,443			2,436		3.87
Loans to individuals		35,770			551		6.18			42,295			601		5.70
Municipal loans and leases		175,952			2,112		4.81			137,382			1,743		5.09
Lease financings		70,459			1,589		9.05			68,411			1,571		9.21
Gross loans and leases		1,566,293			17,547		4.49			1,478,309			17,552		4.76
Total interest-earning assets		1,968,427			19,948		4.06			2,044,753			20,636		4.05
Cash and due from banks		31,071								32,282
Reserve for loan and lease losses		(25,086	)							(26,229	)
Premises and equipment, net		34,355								32,611
Other assets		170,290								167,881
Total assets	$	2,179,057							$	2,251,298
Liabilities:
Interest-bearing checking deposits	$	311,660		$	42		0.05		$	264,897		$	37		0.06
Money market savings		280,693			68		0.10			322,808			78		0.10
Regular savings		537,526			79		0.06			537,410			78		0.06
Time deposits		267,610			780		1.17			302,896			962		1.27
Total time and interest-bearing deposits		1,397,489			969		0.28			1,428,011			1,155		0.32
Short-term borrowings		45,429			12		0.11			100,632			15		0.06
Subordinated notes and capital securities		—			—		—			20,619			183		3.56
Total borrowings		45,429			12		0.11			121,251			198		0.65
Total interest-bearing liabilities		1,442,918			981		0.27			1,549,262			1,353		0.35
Noninterest-bearing deposits		422,057								384,089
Accrued expenses and other liabilities		28,593								33,456
Total liabilities		1,893,568								1,966,807
Shareholders’ Equity:
Common stock		91,332								91,332
Additional paid-in capital		65,367								64,680
Retained earnings and other equity		128,790								128,479
Total shareholders’ equity		285,489								284,491
Total liabilities and shareholders’ equity	$	2,179,057							$	2,251,298
Net interest income				$	18,967							$	19,283
Net interest spread							3.79								3.70
Effect of net interest-free funding sources							0.07								0.08
Net interest margin							3.86	%							3.78	%
Ratio of average interest-earning assets to average interest-bearing liabilities		136.42	%							131.98	%

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 June 30, 2014 and 2013 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 Six Months Ended June 30,
Tax Equivalent Basis	2014								2013
	Average			Income/		Average			Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate			Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	25,283		$	31		0.25	%	$	59,882		$	81		0.27	%
U.S. Government obligations		129,457			647		1.01			176,269			965		1.10
Obligations of state and political subdivisions		107,386			2,829		5.31			122,097			3,185		5.26
Other debt and equity securities		146,919			1,415		1.94			197,722			1,839		1.88
Total interest-earning deposits and investments		409,045			4,922		2.43			555,970			6,070		2.20
Commercial, financial, and agricultural loans		398,246			7,871		3.99			420,865			9,031		4.33
Real estate—commercial and construction loans		593,007			13,686		4.65			559,657			13,504		4.87
Real estate—residential loans		283,475			5,082		3.62			254,926			4,891		3.87
Loans to individuals		37,200			1,135		6.15			42,537			1,197		5.67
Municipal loans and leases		175,553			4,233		4.86			135,924			3,459		5.13
Lease financings		70,883			3,221		9.16			67,251			3,128		9.38
Gross loans and leases		1,558,364			35,228		4.56			1,481,160			35,210		4.79
Total interest-earning assets		1,967,409			40,150		4.12			2,037,130			41,280		4.09
Cash and due from banks		30,513								32,278
Reserve for loan and lease losses		(25,206	)							(25,740	)
Premises and equipment, net		34,303								32,827
Other assets		168,803								165,777
Total assets	$	2,175,822							$	2,242,272
Liabilities:
Interest-bearing checking deposits	$	312,658		$	85		0.05		$	254,550		$	73		0.06
Money market savings		284,874			135		0.10			324,235			158		0.10
Regular savings		540,301			158		0.06			536,063			154		0.06
Time deposits		268,277			1,583		1.19			313,381			2,010		1.29
Total time and interest-bearing deposits		1,406,110			1,961		0.28			1,428,229			2,395		0.34
Short-term borrowings		42,546			18		0.09			101,533			32		0.06
Subordinated notes and capital securities		—			—		—			20,799			472		4.58
Total borrowings		42,546			18		0.09			122,332			504		0.83
Total interest-bearing liabilities		1,448,656			1,979		0.28			1,550,561			2,899		0.38
Noninterest-bearing deposits		415,446								372,936
Accrued expenses and other liabilities		27,681								33,754
Total liabilities		1,891,783								1,957,251
Shareholders’ Equity:
Common stock		91,332								91,332
Additional paid-in capital		65,319								64,700
Retained earnings and other equity		127,388								128,989
Total shareholders’ equity		284,039								285,021
Total liabilities and shareholders’ equity	$	2,175,822							$	2,242,272
Net interest income				$	38,171							$	38,381
Net interest spread							3.84								3.71
Effect of net interest-free funding sources							0.07								0.09
Net interest margin							3.91	%							3.80	%
Ratio of average interest-earning assets to average interest-bearing liabilities		135.81	%							131.38	%

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 six months ended June 30, 2014 and 2013 have been calculated using the Corporation’s federal applicable rate of 35.0%.