Univest Corporation of Pennsylvania Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015
January 27, 2016 at 05:33 pm
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Univest Corporation of Pennsylvania reported consolidated earnings results for the fourth quarter and year ended December 31, 2015. For the quarter, the company reported net income of $7.2 million or $0.37 basic and diluted earnings per share for the quarter ended December 31, 2015, a 38% increase from reported net income of $5.2 million or $0.32 basic and diluted earnings per share for the quarter ended December 31, 2014. Net interest income increased $5.4 million to $23.3 million for the fourth quarter of 2015 from the same period in 2014. Net interest income after provision was $22.4 million compared to $17.96 million a year ago. Income before taxes was $9.7 million compared to $6.8 million a year ago. Return on average assets was 0.99% compared to 0.92% a year ago. Return on average shareholders' equity was 7.88% compared to 7.06% a year ago.
Net income for the year ended December 31, 2015 was $27.3 million or $1.39 basic and diluted earnings per share, a 23% increase in net income compared to $22.2 million or $1.37 basic and diluted earnings per share for the comparable period in the prior year. The quarter and year-to-date financial results include the Valley Green Bank acquisition which Univest completed on January 1, 2015 and now operates as Valley Green Bank, a Division of the Bank (Valley Green Bank). The results for the year ended December 31, 2015 included $2.0 million of integration and acquisition-related costs associated with Valley Green Bank, incurred during the first and second quarters, or $0.07 diluted earnings per share on a year-to-date tax affected basis. The fourth quarter and year-to-date results also include $540,000 of acquisition-related costs associated with the pending acquisition of Fox Chase Bancorp, or $0.03 diluted earnings per share on a tax affected basis. Lastly, the results for the year ended December 31, 2015 also included $1.6 million of restructuring charges incurred in the second quarter, related to the consolidation of six financial centers in September 2015 under the Bank's optimization plan or $0.05 diluted earnings per share on a tax affected basis. Excluding these costs, net income for the year ended December 31, 2015, would have been $30.1 million or $1.54 diluted earnings per share. Net interest income increased $21.5 million to $93.4 million for the year ended December 31, 2015 from the prior year. Net interest income after provision was $89.6 million compared to $68.3 million a year ago. Income before taxes was $37.03 million compared to $29.7 million a year ago. As on December 31, 2015, book value per share was $18.51. Return on average assets was 0.98% compared to 1.01% a year ago. Return on average shareholders' equity was 7.58% compared to 7.74% a year ago.
Univest Financial Corporation is a bank holding company for Univest Bank and Trust Co. (the Bank). The Bank is a state-chartered bank and trust company. The Company has three segments: Banking, Wealth Management and Insurance. Banking segment provides financial services to individuals, businesses, municipalities and non-profit organizations. These services include a full range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services, and equipment lease financing. Wealth Management segment offers investment advisory, financial planning, trust and brokerage services. The segment serves a diverse client base of private families and individuals, municipal pension plans, retirement plans, trusts and guardianships. Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resources consulting.