Univest Corporation of Pennsylvania Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Announces Net Loan and Lease Charge-Offs for the Fourth Quarter of 2016
January 25, 2017 at 04:33 pm EST
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Univest Corporation of Pennsylvania reported consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported net income of $6.9 million or $0.26 diluted earnings per share for the three months ended December 31, 2016, compared to net income of $7.2 million or $0.37 diluted earnings per share for the three months ended December 31, 2015. Net interest income increased $10.7 million to $34.2 million for the fourth quarter of 2016 from the same period in 2015. Net interest income after provision was $31.9 million compared to $22.5 million a year ago. Income before taxes was $7.5 million compared to $9.7 million a year ago. Return on average assets was 0.67% compared to 0.99% a year ago. Return on average shareholders' equity was 5.42% compared to 7.88% a year ago.
Net income for the year ended December 31, 2016 was $19.5 million or $0.84 diluted earnings per share, compared to net income of $27.3 million or $1.39 diluted earnings per share for the prior year. The financial results for the fourth quarter and year ended December 31, 2016 included acquisition and integration costs related to the Fox Chase acquisition plus restructuring costs related to facility closures and staffing rationalization of $1.2 million and $11.8 million, net of tax, or $0.05 and $0.51, of diluted earnings per share, respectively. The results for the fourth quarter and year ended December 31, 2016 also included $1.2 million, net of tax, or $0.05 and $0.05, of diluted earnings per share, respectively, related to the Corporation's agreement to settle its future obligations related to its acquisition of Girard Partners Inc. Net interest income increased $20.3 million to $114.2 million for the year ended December 31, 2016 from the prior year. The increase in net interest income during the fourth quarter and year of 2016 was mainly due to the impact of the Fox Chase acquisition, which occurred on July 1, 2016. Net interest income after provision was $109.4 million compared to $90.1 million a year ago. Income before taxes was $23.4 million compared to $37.03 million a year ago. As on December 31, 2016, book value per share was $19. Return on average assets was 0.56% compared to 0.98% a year ago. Return on average shareholders' equity was 4.46% compared to 7.58% a year ago.
Net loan and lease charge-offs were $1.7 million during the fourth quarter of 2016 and $5.0 million for the year ended December 31, 2016.
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.
Univest Corporation of Pennsylvania Reports Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Announces Net Loan and Lease Charge-Offs for the Fourth Quarter of 2016