Univest Corporation of Pennsylvania Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Tax Rate Guidance for the Year 2018
October 26, 2017 at 01:45 am IST
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Univest Corporation of Pennsylvania announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported net interest income of $36.887 million against $32.869 million a year ago. Interest income was $42.172 million against $36.705 million a year ago. Income before taxes was $15.612 million against loss of $1.475 million a year ago. Net income was $11.196 million or $0.42 basic and diluted earnings per share, compared to $58,000 or $0.00 diluted earnings per share, for the three months ended September 30, 2016. Return on average assets was 1.01% compared to 0.01% a year ago. Return on average shareholders' equity was 8.43% against 0.05% a year ago. Core net interest income, which excludes the impact of purchase accounting adjustments, was $35.8 million for the quarter and represents a $1.2 million increase as compared to core net interest income of $34.6 million for the second quarter. This increase was primarily driven by an increase in average loans of $66 million during the quarter as core net interest margin, again excluding purchase accounting adjustments, was relatively flat at 3.69% compared to a 3.68% for the second quarter of this year. The increase the company received in the yield on the loan portfolio of 5 basis points was almost totally offset by an increase in the cost of funds on deposits and borrowings.
For the nine months, the company reported net interest income of $106.470 million against $80.053 million a year ago. Interest income was $120.598 million against $88.551 million a year ago. Income before taxes was $46.385 million against $15.900 million a year ago. Net income was $33.830 million or $1.27 diluted earnings per share compared to $12.587 million or $0.57 diluted earnings per share a year ago. Return on average assets was 1.05% compared to 0.51% a year ago. Return on average shareholders' equity was 8.73% against 4.07% a year ago. Book value per share was $19.83 against $19.17 a year ago.
Next year 2018 the company would guide to a 29% effective tax rate.
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 Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2017; Provides Tax Rate Guidance for the Year 2018