United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For The Period Ended June 30, 1996.
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 For the Transition Period From ___ to ___.
Commission File Number 0-7617
UNIVEST CORPORATION OF PENNSYLVANIA
(Exact name of registrant as specified in its charter)
Pennsylvania 23-1886144
_______________________________ ________________________
(State or other jurisdiction of (IRS Employer I.D. No.)
incorporation of organization)
10 West Broad Street, Souderton, Pennsylvania 18964
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code (215) 721-2400
Not applicable
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days. Yes X No .
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
Common Stock, $5 par value 3,912,481
______________________________ ____________________________
(Title of Class) (Number of shares outstanding
at 6/30/96)
UNIVEST CORPORATION OF PENNSYLVANIA AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Financial Information
The consolidated financial statements include the accounts of Univest
Corporation of Pennsylvania (Univest) and its wholly owned subsidiaries,
including Union National Bank and Trust Company (Union) and Pennview
Savings Bank (Pennview), collectively referred to herein as the "Banks".
The condensed consolidated financial statements included herein have
been prepared without audit pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. The
accompanying condensed consolidated financial statements reflect all
adjustments which are, in the opinion of management, necessary to
present a fair statement of the results and condition for the interim
periods presented. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and the
notes thereto included in the registrant's Annual Report on Form 10-K
for the year ended December 31, 1995, which has been filed with the
Securities and Exchange Commission.
2. Per Share Data
The following average shares were used for the computation of earnings
per share:
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Average Shares 3,916,548 3,920,830.6 3,918,689.3 3,920,830.6
</TABLE>
UNIVEST CORPORATION OF PENNSYLVANIA AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(UNAUDITED) (SEE NOTE)<F1>
JUNE 30, 1996 DECEMBER 31, 1995
<S> <C> <C>
ASSETS
CASH AND DUE FROM BANKS $39,288 $30,901
INVESTMENT SECURITIES HELD-TO-MATURITY 182,124 168,895
(MARKET VALUE $181,501 AT 6/30/96
AND $170,665 AT 12/31/95)
INVESTMENT SECURITIES AVAILABLE-FOR-SALE 61,288 56,080
FEDERAL FUNDS SOLD AND OTHER
SHORT TERM INVESTMENTS 219 16,527
LOANS HELD FOR SALE 1,022 -
LOANS 595,502 585,971
LESS: RESERVE FOR POSSIBLE LOAN LOSSES (9,668) (8,854)
NET LOANS 585,834 577,117
OTHER ASSETS 34,333 32,368
TOTAL ASSETS $904,108 $881,888
LIABILITIES
DEMAND DEPOSITS, NON INTEREST BEARING $114,135 $100,300
DEMAND DEPOSITS, INTEREST BEARING 138,454 154,642
REGULAR SAVINGS DEPOSITS 129,635 122,683
TIME DEPOSITS 354,974 347,402
TOTAL DEPOSITS 737,198 725,027
SHORT-TERM BORROWINGS 48,225 46,812
OTHER LIABILITIES 18,175 16,628
LONG-TERM DEBT 7,075 4,085
TOTAL LIABILITIES 810,673 792,552
SHAREHOLDERS' EQUITY
COMMON STOCK 19,636 19,638
ADDITIONAL PAID-IN CAPITAL 34,542 34,559
RETAINED EARNINGS 39,806 35,028
NET UNREALIZED SECURITIES GAINS (LOSSES) (142) 261
TREASURY STOCK (407) (150)
TOTAL SHAREHOLDERS' EQUITY 93,435 89,336
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $904,108 $881,888
<FN>
<F1>NOTE: THE BALANCE SHEET AT DECEMBER 31, 1995 HAS BEEN DERIVED FROM
THE AUDITED FINANCIAL STATEMENTS AT THAT DATE BUT DOES NOT INCLUDE ALL
OF THE INFORMATION AND FOOTNOTES REQUIRED BY GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES FOR COMPLETE FINANCIAL STATEMENTS.
</TABLE>
UNIVEST CORPORATION OF PENNSYLVANIA AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE QUARTER FOR THE SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
1996 1995 1996 1995
(In thousands, except per share data)
<S> <C> <C> <C> <C>
INTEREST INCOME
INTEREST AND FEES ON LOANS
TAXABLE INTEREST AND FEES ON LOANS $12,419 $12,214 $24,746 $24,296
EXEMPT FROM FEDERAL INCOME TAXES 488 465 985 980
-------- -------- -------- -------
TOTAL INTEREST AND FEES ON LOANS 12,907 12,679 25,731 25,276
INTEREST AND DIVIDENDS ON
INVESTMENT SECURITIES 3,559 2,753 6,949 5,575
OTHER INTEREST INCOME 60 255 168 293
-------- -------- -------- -------
TOTAL INTEREST INCOME 16,526 15,687 32,848 31,144
-------- -------- -------- -------
INTEREST EXPENSE
INTEREST ON DEPOSITS 6,356 6,007 12,679 11,546
OTHER INTEREST EXPENSE 477 517 947 1,032
-------- -------- -------- -------
TOTAL INTEREST EXPENSE 6,833 6,524 13,626 12,578
-------- -------- -------- -------
NET INTEREST INCOME 9,693 9,163 19,222 18,566
PROVISION FOR LOAN LOSSES 215 423 530 845
-------- -------- -------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 9,478 8,740 18,692 17,721
-------- ------- -------- -------
OTHER INCOME 1,500 1,638 3,119 3,112
GAINS (LOSSES) ON SALES OF SECURITIES - - 10 (1)
-------- ------- -------- --------
TOTAL OTHER INCOME 1,500 1,638 3,129 3,111
OTHER EXPENSES
SALARIES AND BENEFITS 3,594 3,291 7,043 6,662
OTHER EXPENSES 2,978 3,003 6,061 6,061
-------- ------- -------- -------
TOTAL OTHER EXPENSES 6,572 6,294 13,104 12,723
-------- ------- -------- -------
INCOME BEFORE INCOME TAXES 4,406 4,084 8,717 8,109
APPLICABLE INCOME TAXES 1,359 1,267 2,686 2,499
-------- ------- ------- -------
NET INCOME $3,047 $2,817 $6,031 $5,610
======== ======= ======= =======
PER COMMON SHARE DATA (1):<F1>
NET INCOME $0.78 $0.72 $1.54 $1.43
CASH DIVIDENDS DECLARED $0.16 $0.136 $0.32 $0.272
<FN>
<F1>(1) PER SHARE DATA HAS BEEN RESTATED TO GIVE EFFECT TO A TWENTY-FIVE
PERCENT STOCK DIVIDEND DECLARED ON NOVEMBER 22, 1995 TO SHAREHOLDERS OF
RECORD AS OF FEBRUARY 15, 1996, AND WAS PAID ON MARCH 1, 1996.
</TABLE>
Univest Corporation of Pennsylvania
Consolidated Statement of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
For the six months ended,
June 30,1996 June 30, 1995
<S> <C> <C>
Cash flows from operating activitites
Net income $6,031 $5,610
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses in excess of net charge-offs 814 164
Depreciation of premises and equipment 1,085 830
Discount accretion on investment securities (294) (144)
Deferred income tax (benefit) 18 (183)
Realized (gains) losses on investment securities (10) 1
Realized losses (gains) on sales of mortgages 10 (37)
Decrease in net deferred loan fees (24) (158)
(Increase) decrease in interest receivable and other assets (1,701) 87
Increase (decrease) in accrued expenses and other liabilities 2,317 (627)
------ -----
Net cash provided by operating activities 8,246 5,543
Cash flows from investing activities
Proceeds from maturing time deposits 67 122
Proceeds from sales of securities available for sale 3,019 3,002
Proceeds from maturing securities held to maturity 16,586 24,118
Proceeds from maturing securities available for sale 2,298 3,388
Purchases of investment securities held to maturity (29,622) (5,708)
Purchases of investment securities available for sale (11,105) -
Net decrease (increase) in federal funds sold and other short-term investments 16,308 (19,886)
Net increase in loans held for sale (1,022) -
Proceeds from sales of mortgages 5,741 2,847
Net increase in loans (15,258) (6,683)
Capital expenditures (1,349) (1,226)
------- ------
Net cash used in investing activities (14,337) (26)
Cash flows from financing activities
Net increase in deposits 12,171 9,408
Net increase (decrease) increase in short-term borrowings 1,413 (9,152)
Proceeds from long-term debt 7,000 -
Net purchase of treasury stock (271) -
Proceeds from exercise of stock option 11 -
Cash dividends (1,836) (1,474)
Repayments of long-term debt (4,010) (353)
------ ------
Net cash (used in) provided by financing activities 14,478 (1,571)
Net increase in cash and due from banks 8,387 3,946
Cash and due from banks at beginning of period 30,901 35,177
------ ------
Cash and due from banks at end of period $39,288 $39,123
====== ======
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $13,369 $11,260
Income taxes $2,600 $2,340
</TABLE>
Management's Discussion and Analysis
of Financial Condition and
Results of Operations
Total assets increased from $881.9 million at December 31, 1995
to $904.1 million at June 30, 1996. An increase of $22.2 million or
2.5%. Investment securities held to maturity increased $13.2 million
and loans increased $9.5 million. Cash and due from banks and
investment securities held for sale increased by $8.4 million and $5.2
million respectively. Total deposits increased by $12.1 million
mainly in the area of time deposits.
Shareholders' equity increased $4.1 million or 4.6% from $89.3
million at December 31, 1995 to $93.4 million at June 30, 1996. Cash
dividends increased $0.024 per share from $0.136 for the three months
ended June 30, 1995 to $0.16 at June 30, 1996. Cash dividends also
increased to $0.32 per share for the six months ended June 30, 1996 as
compared to $0.272 for the same period in 1995.
Net income for the three months ended June 30, 1996 increased
8.2% or $0.2 million from $2.8 million for the three months ended June
30, 1995 to $3.0 million for the three months ended June 30, 1996.
Net income also increased $0.4 million or 7.5% from $5.6 million for
the six months ended June 30, 1995 to $6.0 million for the six months
ended June 30, 1996. The increases in both periods were mainly due to
increased net interest income and decreased provision for loan losses
because of improved asset quality and substantial recoveries of
previously charged-off loans, partially offset by increased other
expenses.
Interest and fees on loans increased $0.2 million from $12.7
million for the three months ended June 30, 1995 to $12.9 million for
the three months ended June 30, 1996. For the six months ended June
30, 1996 interest and fees on loans increased $0.4 million from $25.3
million at June 30, 1995 to $25.7 million at June 30, 1996. The
increase in both periods was mainly due to increased loan volume
offset partially by a slight decrease in interest rates. The prime
rate decreased from 9.0% at June 30, 1995 to 8.25% at June 30, 1996.
Interest on investment securities increased $0.8 million or 29.6%
from $2.8 million for the three month period ended June 30, 1995 to
$3.6 million for the three month period ended June 30, 1996. For the
six months ended June 30, 1996 interest on investments increased by
$1.3 million or 23.2% from $5.6 million for the six months ended June
30, 1995 to $6.9 million for the same period in 1996. The increase in
both periods is attributed to increased volume.
The asset/liability management process continues with its goal of
providing stable reliable earnings through varying interest rate
environments. Net interest income is the amount by which interest
income on earning assets exceeds interest paid on interest bearing
liabilities. The amount of net interest income is affected by changes
in interest rates, account balances or volume, and the mix of earning
assets and interest bearing liabilities. Six months ended June 30,
1996 shows net interest income of $19.2 million which is a $0.6
million increase over the $18.6 million recorded for the six months
ended June 30, 1995. Increases in net interest income were generated
more by volume rather than rate because the net interest spread for
the six months ended June 30, 1996 decreased by 22 basis points and
the net interest margin decreased by 8 basis points versus six months
ended June 30, 1995.
The following demonstrates the aforementioned effects:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
6/30/96 6/30/95
AVG. BALANCE RATE AVG. BALANCE RATE
<S> <C> <C> <C> <C>
Interest Earning Assets $818,483 7.61% $777,529 8.01%
Interest Bearing Liabilities $671,555 3.75% $639,841 3.93%
Net Interest Income $ 19,222 $ 18,566
Net Interest Spread 3.86% 4.08%
Net Interest Margin 4.70% 4.78%
</TABLE>
The Corporation is permitted to use interest-rate swap agreements
which convert a portion of its floating rate commercial loans to a
fixed rate basis, thus reducing the impact of interest changes on
future income. In these swaps, the Corporation agrees to exchange, at
specified intervals, the difference between fixed and floating-
interest amounts calculated on an agreed upon notional principal
amount. Because the Corporation's interest-earning assets tend to be
short-term floating rate instruments while the Corporation's interest-
bearing liabilities tend to be longer-term fixed rate instruments,
interest rate swaps in which the Corporation pays a floating rate and
receives a fixed rate are used to reduce the impact of changes in
interest rates on the Corporation's net interest income.
During the third quarter of 1995 and first quarter of 1996 $30
million of "Pay Floating Receive Floating" swaps were entered into by
the Corporation. The net payable or receivable from interest-rate
swap agreements is accrued as an adjustment to interest income. No
interest rate swaps were outstanding at June 30, 1995 and $10.0
million in notional principal amount were outstanding at December 31,
1995. The contracts entered into by the Corporation in 1995 and first
quarter of 1996 expire as follows: $10 million in notional principal
amount in August 1997 and $20 million in notional principal amount in
March 1998. The impact of the interest rate swaps on net interest
income during the first six months ended June 30, 1996 was not
material.
The Corporation's current credit exposure on swaps is limited to
the value of interest-rate swaps that have become favorable to the
Corporation. As of June 30, 1996, the market value of interest-rate
swaps in a favorable value position was $2 thousand, while the market
value of interest-rate swaps in an unfavorable position totaled $220
thousand. Credit risk also exists when the counterparty to a
derivative contract with an unrealized gain fails to perform according
to the terms of the agreement.
ASSET QUALITY
Management believes the allowance for loan losses is maintained
at a level which is adequate to absorb potential losses in the loan
portfolio. Management's methodology to determine the adequacy of and
the provisions to the allowance considers specific credit reviews,
past loan loss experience, current economic conditions and trends, and
the volume, growth and composition of the loan portfolio.
The allowance for loan losses is determined through a quarterly
evaluation of reserve adequacy which takes into consideration the
growth of the loan portfolio, the status of past-due loans, current
economic conditions, various types of lending activity, policies, real
estate and other loan commitments, and significant change in the
charge-off activity. Loans are also reviewed for impairment based on
discounted cash flows using the loans initial effective interest rate
or the fair value of the collateral for certain collateral dependent
loans as provided for under FAS 114, which was adopted by the
Corporation effective January 1, 1995. Any of the above criteria may
cause the provision to fluctuate. For the quarter ended June 30, 1996,
the provision was $215 thousand and for the quarter ended June 30,
1995 the provision was $423 thousand. This decrease was due to
improved asset quality and substantial recoveries of previously
charged-off loans.
Effective January 1, 1995, the Corporation adopted Financial
Accounting Standards Board Statement No. 114, "Accounting by Creditors
for Impairment of a Loan." Under the new standard, the allowance for
credit losses related to loans that are identified for evaluation in
accordance with Statement 114 is based on discounted cash flows using
the loan's initial effective interest rate or the fair value of
collateral for certain collateral dependent loans. At June 30, 1996
the recorded investment in loans that are considered to be impaired
under Statement 114 was $1.8 million (all of which were on a
nonaccrual basis); the related allowance for credit losses for those
loans is $717 thousand. For the six months ended June 30, 1996 the
Corporation did not recognize any interest income on those impaired
loans. At June 30, 1995, the recorded investment in loans considered
to be impaired was $4.0 million and the related allowance for credit
losses for these loans was $1.0 million.
Generally, a loan (including a loan impaired under Statement 114)
is classified as nonaccrual and the accrual of interest on such loan
is discontinued when the contractual payment of principal or interest
has become 90 days due or management has serious doubts about the
further collectibility of principal or interest, even though the loan
is currently performing. A loan may remain on accrual status if it is
in the process of collection and is either guaranteed or well secured.
When a loan is placed on nonaccrual status, unpaid interest credited
to income in the current year is reversed and unpaid interest accrued
in prior years is charged against "other expense." Interest received
on nonaccrual loans generally is either applied against principal or
reported as interest income, according to management's judgment as to
the collectibility of principal. Generally, loans are restored to
accrual status when the obligation is brought current, has performed
in accordance with the contractual terms for a reasonable periods of
time and the ultimate collectibility of the total contractual
principal and interest is no longer in doubt. Total cash basis,
nonaccrual and restructured loans at June 30, 1996 were $3.0 million
and consist mainly of real estate related commercial loans which have
slowed in performance due to local economic conditions. Cash basis,
nonaccrual and restructured loans at June 30, 1995 totaled $5.6
million. For the quarter ended June 30, 1996 nonaccrual loans
resulted in lost interest income of $65 thousand as compared to $200
thousand for the quarter ended June 30, 1995. For the six months
ended June 30, 1996 lost interest income totaled $145 thousand as
compared to $326 thousand for the same period in 1995. At June 30,
1996 the Corporation had no material commitments to lend additional
funds with respect to nonperforming loans. In management's evaluation
of the loan portfolio risks, any significant future increases in
nonperforming loans are dependent to a large extent on the economic
environment.
At June 30, 1996 the reserve for loan losses is 1.62% of total
loans as compared to 1.51% at December 31, 1995.
As of June 30, 1996 the Corporation has approximately $0.4
million of Other Real Estate Owned ("OREO") consisting of one
commercial property. This amount is recorded in "Other Assets" at the
lower of cost or fair market value in the accompanying consolidated
balance sheets. Included in other operating expenses for the six
months ended June 30, 1996 were adjustments of $150 thousand to the
carrying value of the OREO property to approximate net realizable
value. Adjustment to OREO carrying values for the six months ended
June 30, 1995 amounted to $300 thousand.
OTHER
Effective January 1, 1996 the corporation adopted Statement of
Financial Accounting Standard ("SFAS") No. 122, "Accounting for
Mortgage Servicing Rights." SFAS No. 122 requires capitalization of
the cost of mortgage servicing rights when the company intends to
retain the servicing rights and sell the related loans or when the
company purchases servicing rights but not the related loans. SFAS
No. 122 also addresses how servicing assets should be evaluated for
impairment. The adoption of SFAS No. 122 did not have a material
impact on the Corporation's financial position and results of
operations for the quarter or six months ended June 30, 1996 and is
not expected to have a material impact in the future.
All thirty year fixed rate first residential mortgage loans that
are classified as "Held for Sale" and recorded at the lower of cost or
market on the accompanying statement of condition.
Other income which is non-interest related consists mainly of
general fee income, trust department fees, and other miscellaneous non-
recurring types of income. For the quarter ended June 30, 1996, other
income totaled $1.5 million as compared to $1.6 million for the
quarter ended June 30, 1995. The decrease was mainly due to a
decrease of miscellaneous non-recurring income in loss recovery of
prior years income on charged-off loans. For the six months ended
June 30, 1996 compared to the six months ended June 30, 1995, other
income remained constant at $3.1 million.
Debt securities that the Corporation has both the positive intent
and ability to hold to maturity are carried at amortized cost. All
other debt securities and all marketable equity securities are
classified as available-for-sale or trading and carried at fair value.
Unrealized holding gains and losses on securities classified as
available-for-sale are carried as a separate component of
shareholders' equity. Unrealized holding gains and losses on
securities classified as trading are reported in earnings. The total
debt and equity securities held in the available-for-sale account as
of June 30, 1996 is $61.3 million as compared to $56.0 million at
December 31, 1995. At June 30, 1996 a net unrealized loss of $142
thousand was recorded, compared to a net unrealized loss of $261
thousand at December 31, 1995. This change was due to the increase in
short-term interest rates during the period.
Other expenses make up the operating costs of the Corporation,
including but not limited to salaries and benefits, equipment, data-
processing and occupancy costs. This category is usually referred to
as noninterest expense and receives ongoing management attention in an
attempt to contain and minimize the growth of the various expense
categories, while encouraging technological innovation in conjunction
with the expansion of the Corporation. The quarter ended June 30,
1996 totals $6.6 million as compared to $6.3 million for the quarter
ended June 30, 1995, or an increase of $300 thousand. For the six
months ended June 30, 1996 other expenses increased $400 thousand from
$12.7 million for the three months ended June 30, 1995 to $13.1
million for the three months ended June 30, 1996. Increases in both
periods were due mainly to increases in salaries and benefits
resulting from normal salary and staff increases. These increases
amounted to $300 thousand and $400 thousand respectively for the three
and six months ended June 30 1996. For both the three and six month
periods ended June 30, 1996 increases were also noted in occupancy and
equipment costs which increased for the six month period by a total of
approximately $400 thousand due to the opening of four additional
offices, the expansion to larger facilities of two locations and
equipment and software for the conversion to a new computer system for
the Corporation. These increases were offset by a reduction of $150
thousand in adjustments to the carrying value of OREO and further
offset by a reduction of approximately $640 thousand due to the
reduction of Federal Deposit Insurance Corporation (FDIC) premiums
paid by Union National Bank. Due to the Bank Insurance Fund (BIF)
reaching it's 1.25% reserve requirement, members of the BIF such as
Union National Bank, which qualify as well capitalized institutions
began paying a minimum annual premium of $2 thousand in the first
quarter 1996. Union paid 23 basis points in the second quarter 1995.
During 1995, Congress considered legislation that would
recapitalize the Savings Association Insurance Fund ("SAIF"), of which
Pennview Savings Bank is a member, by requiring financial institutions
to pay a one-time assessment, estimated to be $.85 per $100 of SAIF-
insured deposits. The impact on the Corporation if such legislation
were enacted would be a one time fee of approximately $1.1 million,
before any tax effect. It is contemplated that once SAIF is
recapitalized, continuing premiums would be reduced substantially from
present levels of .23% of deposits to as low as .04%. No assurance
can be given, however as to whether a recapitalization plan will be
implemented or what the final provisions will be.
An income tax provision of $1.4 million is shown for the quarter
ended June 30, 1996 and $1.3 million for the quarter ended June 30,
1995 with effective tax rates of 31.0% for both periods. For the six
months ended June 30, 1996 the provision was $2.7 million as compared
to $2.5 million for the six months ended June 30, 1995. The effective
tax rate for both periods was also 31.0%.
Part II. OTHER INFORMATION
Item 1. Legal Proceedings--None
Item 2. Changes in Securities--None
Item 3. Defaults upon Senior Securities--None
Item 4. Submission of Matters to a Vote of Security Holders--Not
applicable
Item 5. Other Information--None
Item 6. Exhibits and Reports on Form 8-K --None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Univest Corporation of Pennsylvania
Registrant
Date: 7/23/96 Merrill S. Moyer, Chairman
Date: 7/23/96 Wallace H. Bieler, Senior Vice President
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 39,288
<INT-BEARING-DEPOSITS> 389
<FED-FUNDS-SOLD> 219
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 61,288
<INVESTMENTS-CARRYING> 182,124
<INVESTMENTS-MARKET> 181,501
<LOANS> 595,502
<ALLOWANCE> 9,668
<TOTAL-ASSETS> 904,108
<DEPOSITS> 737,198
<SHORT-TERM> 48,225
<LIABILITIES-OTHER> 18,175
<LONG-TERM> 7,075
<COMMON> 19,636
0
0
<OTHER-SE> 73,799
<TOTAL-LIABILITIES-AND-EQUITY> 904,108
<INTEREST-LOAN> 25,731
<INTEREST-INVEST> 6,949
<INTEREST-OTHER> 168
<INTEREST-TOTAL> 32,848
<INTEREST-DEPOSIT> 12,679
<INTEREST-EXPENSE> 13,626
<INTEREST-INCOME-NET> 19,222
<LOAN-LOSSES> 530
<SECURITIES-GAINS> 10
<EXPENSE-OTHER> 13,104
<INCOME-PRETAX> 8,717
<INCOME-PRE-EXTRAORDINARY> 8,717
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,031
<EPS-PRIMARY> 1.54
<EPS-DILUTED> 1.54
<YIELD-ACTUAL> 4.85
<LOANS-NON> 3,402
<LOANS-PAST> 1,086
<LOANS-TROUBLED> 317
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 8,854
<CHARGE-OFFS> 502
<RECOVERIES> 786
<ALLOWANCE-CLOSE> 9,668
<ALLOWANCE-DOMESTIC> 9,668
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 4,234
</TABLE>
