8-K
UNIVEST FINANCIAL Corp (UVSP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________
FORM 8-K
_______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 2024
_______________________
UNIVEST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
| Pennsylvania | 0-7617 | 23-1886144 |
|---|---|---|
| (State or other jurisdiction | (Commission | (I.R.S. Employer |
| of incorporation) | File Number) | Identification No.) |
14 North Main Street, Souderton, Pennsylvania 18964
(Address of principal executive office)(Zip Code)
Registrant’s telephone number, including area code (215) 721-2400
Not applicable
(Former name or former address, if changed since last report)
_______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Securities registered pursuant to Section 12(b) of the Act:Title of classTrading SymbolName of exchange on which registeredCommon Stock, $5 par valueUVSPThe NASDAQ Stock Market
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |
|---|---|
| Emerging growth company | ☐ |
| If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
| Item 2.02 | Results of Operations and Financial Condition |
| --- | --- |
On January 24, 2024, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2023 fourth quarter and full year earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
| Item 9.01 | Financial Statements and Exhibits |
|---|
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
| Exhibit No. | Description of Document |
|---|---|
| 99.1 | Press release issued by Univest Financial Corporation onJanuary24, 2024 |
| 104 | The cover page from the Corporation's Form 8-K, formatted in Inline XBRL |
SIGNATURE
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 hereunto duly authorized.
| Univest Financial Corporation | |
|---|---|
| By: | /s/ Brian J. Richardson |
| Name: | Brian J. Richardson |
| Title: | Senior Executive Vice President, |
| Chief Financial Officer |
January 25, 2024
EXHIBIT INDEX
| Exhibit No. | Description of Document |
|---|---|
| 99.1 | Press release issued by Univest Financial Corporation onJanuary 24, 2024 |
| 104 | The cover page from the Corporation's Form 8-K, formatted in Inline XBRL |
Document
Exhibit 99.1
| NEWS |
|---|
CONTACT: Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net
FOR IMMEDIATE RELEASE
UNIVEST FINANCIAL CORPORATION
REPORTS FOURTH QUARTER and 2023 RESULTS
SOUDERTON, Pa., January 24, 2024 - Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the "Bank") and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended December 31, 2023 was $16.3 million, or $0.55 diluted earnings per share, compared to net income of $23.8 million, or $0.81 diluted earnings per share, for the quarter ended December 31, 2022.
Loans
Gross loans and leases decreased $7.7 million, or 0.1% (0.5% annualized), from September 30, 2023, primarily due to decreases in commercial and construction loans. Gross loans and leases increased $444.0 million, or 7.3%, from December 31, 2022, primarily due to increases in commercial real estate, residential mortgage loans and lease financings.
Deposits and Liquidity
Total deposits decreased $63.4 million, or 1.0% (3.9% annualized), from September 30, 2023, due to decreases in commercial, public funds and brokered deposits, partially offset by an increase in consumer deposits. Total deposits increased $462.3 million, or 7.8%, from December 31, 2022, primarily due to increases in public funds and brokered deposits partially, offset by decreases in commercial and consumer deposits. Noninterest-bearing deposits represented 23.0% of total deposits at December 31, 2023, up from 22.2% at September 30, 2023. At December 31, 2023, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 23.3% of total deposits, up from 20.8% at September 30, 2023.
As of December 31, 2023, the Corporation had cash and cash equivalents totaling $249.8 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.4 billion at December 31, 2023, of which $1.9 billion was available. The Corporation and its subsidiaries also maintained unused uncommitted funding sources from correspondent banks of $369.0 million at December 31, 2023. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.
Net Interest Income and Margin
Net interest income of $52.8 million for the three months ended December 31, 2023 decreased $830 thousand, or 1.5%, from the three months ended September 30, 2023, and $9.2 million, or 14.8%, from the three months ended December 31, 2022. The decrease in net interest income was due to increases in the cost of funds and the average balance of interest-bearing liabilities, partially offset by an increase in the yield and average balance of interest-earning assets.
Net interest margin, on a tax-equivalent basis, was 2.84% for the fourth quarter of 2023, compared to 2.96% for the third quarter of 2023 and 3.76% for the fourth quarter of 2022. Excess liquidity reduced net interest margin by approximately ten basis points for the quarter ended December 31, 2023 compared to approximately four basis points for the quarter ended September 30, 2023 and approximately one basis point for the quarter ended December 31, 2022.
Noninterest Income
Noninterest income for the quarter ended December 31, 2023 was $18.6 million, a decrease of $1.8 million, or 9.0%, from the comparable period in the prior year.
Investment advisory commission and fee income decreased $1.0 million, or 18.3%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year. This decrease was primarily driven by a $1.2 million adjustment recorded in the fourth quarter of 2022 for previously unrecorded revenue.
Bank owned life insurance ("BOLI") decreased $407 thousand, or 33.1%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to a death benefit claim of $526 thousand received in the fourth quarter of 2022.
Other income decreased $1.2 million, or 55.6%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to a $1.5 million decrease in interest rate swap income.
Net gain on mortgage banking activities increased $373 thousand, or 85.6%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to increased salable volume.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2023 was $49.0 million, an increase of $1.7 million, or 3.6%, from the comparable period in the prior year.
Salaries, benefits and commissions increased $293 thousand, or 1.0%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year. The increase reflects our expansion into Maryland and Western Pennsylvania, increased medical claims expense and reduced capitalized compensation, driven by lower loan production. These increases were partially offset by decreases due to the staff reduction that was announced during the second quarter of 2023 and a reduction in incentive compensation due to decreased profitability in current the year.
Deposit insurance premiums increased $642 thousand, or 90.7%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily driven by an increased industry-wide assessment rate and an increase in our assessment base. Data processing increased $405 thousand, or 10.0%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to our investments in technology in recent years and general price increases incurred in the second half of 2023. Other expense increased $343 thousand, or 4.9%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to increases in retirement plan costs of $236 thousand.
Tax Provision
The effective income tax rate was 20.3% for the quarter ended December 31, 2023, compared to an effective tax rate of 19.6% for the quarter ended December 31, 2022. The effective tax rates for the quarters ended December 31, 2023 and 2022 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases.
Asset Quality and Provision for Credit Losses
Nonperforming assets were $40.1 million at December 31, 2023 and September 30, 2023 and $33.5 million at December 31, 2022.
Net loan and lease charge-offs were $1.1 million for the three months ended December 31, 2023 compared to $969 thousand and $908 thousand for the three months ended September 30, 2023 and December 31, 2022, respectively. Net loan and lease charge-offs were $5.4 million and $3.9 million for
the years ended December 31, 2023 and December 31, 2022, respectively.
The provision for credit losses was $1.9 million for the three months ended December 31, 2023 compared to $2.0 million and $5.4 million for the three months ended September 30, 2023 and December 31, 2022, respectively. The provision for credit losses was $10.8 million for the year ended December 31, 2023 compared to $12.2 million for the year ended December 31, 2022. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.30% at December 31, 2023 compared to 1.28% at September 30, 2023 and 1.29% December 31, 2022.
Dividend
On January 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 21, 2024 to shareholders of record as of February 7, 2024.
Conference Call
Univest will host a conference call to discuss fourth quarter 2023 results on Thursday, January 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=bfe2e840&confId=59386. The general public can access the call by dialing 1-833-470-1428; using Access Code 989044. A replay of the conference call will be available through February 22, 2024 by dialing 1-866-813-9403; using Access Code 607497.
About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.8 billion in assets and $4.7 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2023. 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 primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.
#
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) changes in economic conditions nationally and in our market; (6) economic assumptions that may impact our allowance for credit losses calculation; (7) legislative, regulatory, accounting or tax changes; (8) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (9) technological issues that may adversely affect our operations or those of our customers; (10) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (11) changes in the securities markets; (12) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (13) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (14) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.
(UVSP - ER)
| Univest Financial Corporation | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Selected Financial Data (Unaudited) | ||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Balance Sheet (Period End) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 72,815 | $ | 68,900 | $ | 80,795 | $ | 71,215 | $ | 84,176 | ||||||||||
| Interest-earning deposits with other banks | 176,984 | 221,441 | 59,616 | 67,109 | 68,623 | |||||||||||||||
| Cash and cash equivalents | 249,799 | 290,341 | 140,411 | 138,324 | 152,799 | |||||||||||||||
| Investment securities held-to-maturity | 145,777 | 149,451 | 153,509 | 151,347 | 154,727 | |||||||||||||||
| Investment securities available for sale, net of allowance for credit losses | 351,553 | 334,538 | 356,164 | 367,656 | 350,256 | |||||||||||||||
| Investments in equity securities | 3,293 | 4,054 | 3,443 | 3,105 | 2,579 | |||||||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost | 40,499 | 42,417 | 42,811 | 43,792 | 33,841 | |||||||||||||||
| Loans held for sale | 11,637 | 16,473 | 29,526 | 5,425 | 5,037 | |||||||||||||||
| Loans and leases held for investment | 6,567,214 | 6,574,958 | 6,462,238 | 6,239,804 | 6,123,230 | |||||||||||||||
| Less: Allowance for credit losses, loans and leases | (85,387) | (83,837) | (82,709) | (80,034) | (79,004) | |||||||||||||||
| Net loans and leases held for investment | 6,481,827 | 6,491,121 | 6,379,529 | 6,159,770 | 6,044,226 | |||||||||||||||
| Premises and equipment, net | 51,441 | 51,287 | 52,058 | 52,334 | 50,939 | |||||||||||||||
| Operating lease right-of-use assets | 31,795 | 31,053 | 30,237 | 31,663 | 30,059 | |||||||||||||||
| Goodwill | 175,510 | 175,510 | 175,510 | 175,510 | 175,510 | |||||||||||||||
| Other intangibles, net of accumulated amortization | 10,950 | 11,079 | 10,923 | 11,044 | 11,384 | |||||||||||||||
| Bank owned life insurance | 131,344 | 130,522 | 129,715 | 128,926 | 120,297 | |||||||||||||||
| Accrued interest and other assets | 91,793 | 100,220 | 96,314 | 90,095 | 90,362 | |||||||||||||||
| Total assets | $ | 7,777,218 | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 | $ | 7,222,016 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,468,320 | $ | 1,432,559 | $ | 1,582,767 | $ | 1,799,225 | $ | 2,047,263 | ||||||||||
| Interest-bearing deposits: | 4,907,461 | 5,006,606 | 4,404,635 | 4,035,432 | 3,866,263 | |||||||||||||||
| Total deposits | 6,375,781 | 6,439,165 | 5,987,402 | 5,834,657 | 5,913,526 | |||||||||||||||
| Short-term borrowings | 6,306 | 14,676 | 244,666 | 271,881 | 197,141 | |||||||||||||||
| Long-term debt | 310,000 | 320,000 | 320,000 | 220,000 | 95,000 | |||||||||||||||
| Subordinated notes | 148,761 | 148,636 | 148,510 | 148,385 | 148,260 | |||||||||||||||
| Operating lease liabilities | 34,851 | 34,017 | 33,428 | 34,846 | 33,153 | |||||||||||||||
| Accrued expenses and other liabilities | 62,311 | 64,374 | 60,922 | 50,726 | 58,436 | |||||||||||||||
| Total liabilities | 6,938,010 | 7,020,868 | 6,794,928 | 6,560,495 | 6,445,516 | |||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued | 157,784 | 157,784 | 157,784 | 157,784 | 157,784 | |||||||||||||||
| Additional paid-in capital | 301,066 | 300,171 | 299,212 | 298,167 | 300,808 | |||||||||||||||
| Retained earnings | 474,691 | 464,634 | 453,806 | 443,493 | 428,637 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax benefit | (50,646) | (71,586) | (61,034) | (55,550) | (62,104) | |||||||||||||||
| Treasury stock, at cost | (43,687) | (43,805) | (44,546) | (45,398) | (48,625) | |||||||||||||||
| Total shareholders’ equity | 839,208 | 807,198 | 805,222 | 798,496 | 776,500 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,777,218 | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 | $ | 7,222,016 | ||||||||||
| For the three months ended, | For the twelve months ended, | |||||||||||||||||||
| Balance Sheet (Average) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||
| Assets | $ | 7,865,523 | $ | 7,693,983 | $ | 7,440,798 | $ | 7,219,211 | $ | 7,019,381 | $ | 7,557,030 | $ | 6,956,292 | ||||||
| Investment securities, net of allowance for credit losses | 489,587 | 506,341 | 518,995 | 515,880 | 505,717 | 507,625 | 515,192 | |||||||||||||
| Loans and leases, gross | 6,594,233 | 6,537,169 | 6,372,342 | 6,164,890 | 5,979,581 | 6,418,664 | 5,651,265 | |||||||||||||
| Deposits | 6,470,141 | 6,222,710 | 5,844,582 | 5,834,415 | 5,837,823 | 6,095,058 | 5,841,832 | |||||||||||||
| Shareholders' equity | 814,941 | 811,515 | 806,709 | 789,153 | 767,192 | 805,667 | 771,499 | |||||||||||||
| Univest Financial Corporation | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited) | ||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Summary of Major Loan and Lease Categories (Period End) | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| Commercial, financial and agricultural | 989,723 | $ | 1,050,004 | $ | 1,039,265 | $ | 1,032,753 | $ | 1,088,928 | |||||||||||
| Real estate-commercial | 3,275,140 | 3,221,993 | 3,128,210 | 3,027,955 | ||||||||||||||||
| Real estate-construction | 427,561 | 413,404 | 376,569 | 381,811 | ||||||||||||||||
| Real estate-residential secured for business purpose | 516,471 | 517,521 | 498,505 | 478,254 | ||||||||||||||||
| Real estate-residential secured for personal purpose | 861,122 | 832,632 | 779,557 | 730,395 | ||||||||||||||||
| Real estate-home equity secured for personal purpose | 176,855 | 175,090 | 172,073 | 176,699 | ||||||||||||||||
| Loans to individuals | 27,331 | 25,544 | 28,656 | 27,873 | ||||||||||||||||
| Lease financings | 240,474 | 236,789 | 223,481 | 211,315 | ||||||||||||||||
| Total loans and leases held for investment, net of deferred income | 6,574,958 | 6,462,238 | 6,239,804 | 6,123,230 | ||||||||||||||||
| Less: Allowance for credit losses, loans and leases | (83,837) | (82,709) | (80,034) | (79,004) | ||||||||||||||||
| Net loans and leases held for investment | 6,481,827 | $ | 6,491,121 | $ | 6,379,529 | $ | 6,159,770 | $ | 6,044,226 | |||||||||||
| Asset Quality Data (Period End) | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||||
| Nonaccrual loans and leases, including nonaccrual loans held for sale* | 20,527 | $ | 18,085 | $ | 15,087 | $ | 11,362 | $ | 13,353 | |||||||||||
| Accruing loans and leases 90 days or more past due | 2,135 | 55 | 1,996 | 875 | ||||||||||||||||
| Total nonperforming loans and leases | 20,220 | 15,142 | 13,358 | 14,228 | ||||||||||||||||
| Other real estate owned | 19,916 | 19,345 | 19,000 | 19,258 | ||||||||||||||||
| Total nonperforming assets | 40,093 | $ | 40,136 | $ | 34,487 | $ | 32,358 | $ | 33,486 | |||||||||||
| Nonaccrual loans and leases / Loans and leases held for investment | % | 0.28 | % | 0.23 | % | 0.18 | % | 0.22 | % | |||||||||||
| Nonperforming loans and leases / Loans and leases held for investment | % | 0.31 | % | 0.23 | % | 0.21 | % | 0.23 | % | |||||||||||
| Nonperforming assets / Total assets | % | 0.51 | % | 0.45 | % | 0.44 | % | 0.46 | % | |||||||||||
| Allowance for credit losses, loans and leases | 85,387 | $ | 83,837 | $ | 82,709 | $ | 80,034 | $ | 79,004 | |||||||||||
| Allowance for credit losses, loans and leases / Loans and leases held for investment | % | 1.28 | % | 1.28 | % | 1.28 | % | 1.29 | % | |||||||||||
| Allowance for credit losses, loans and leases / Nonaccrual loans and leases | % | 463.57 | % | 548.21 | % | 704.40 | % | 591.66 | % | |||||||||||
| Allowance for credit losses, loans and leases / Nonperforming loans and leases | % | 414.62 | % | 546.22 | % | 599.15 | % | 555.27 | % | |||||||||||
| *Includes a 5.8 million loan held for sale at September 30, 2023. | ||||||||||||||||||||
| For the twelve months ended, | ||||||||||||||||||||
| 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||||||||||
| Net loan and lease charge-offs | 1,074 | $ | 969 | $ | 512 | $ | 2,842 | $ | 908 | $ | 5,397 | $ | 3,895 | |||||||
| Net loan and lease charge-offs (annualized)/Average loans and leases | % | 0.06 | % | 0.03 | % | 0.19 | % | 0.06 | % | 0.08 | % | 0.07 | % |
All values are in US Dollars.
| Univest Financial Corporation | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||
| For the three months ended, | For the twelve months ended, | ||||||||||||||||||||
| For the period: | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | ||||||||||||||
| Interest income | $ | 101,232 | $ | 97,106 | $ | 90,139 | $ | 83,253 | $ | 77,401 | $ | 371,730 | $ | 252,193 | |||||||
| Interest expense | 48,472 | 43,516 | 35,809 | 23,936 | 15,485 | 151,733 | 33,896 | ||||||||||||||
| Net interest income | 52,760 | 53,590 | 54,330 | 59,317 | 61,916 | 219,997 | 218,297 | ||||||||||||||
| Provision for credit losses | 1,931 | 2,024 | 3,428 | 3,387 | 5,416 | 10,770 | 12,198 | ||||||||||||||
| Net interest income after provision for credit losses | 50,829 | 51,566 | 50,902 | 55,930 | 56,500 | 209,227 | 206,099 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||||
| Trust fee income | 1,943 | 1,910 | 1,924 | 1,955 | 1,808 | 7,732 | 7,743 | ||||||||||||||
| Service charges on deposit accounts | 1,960 | 1,816 | 1,725 | 1,547 | 1,575 | 7,048 | 6,175 | ||||||||||||||
| Investment advisory commission and fee income | 4,561 | 4,843 | 4,708 | 4,752 | 5,585 | 18,864 | 19,748 | ||||||||||||||
| Insurance commission and fee income | 4,596 | 4,852 | 5,108 | 6,487 | 4,424 | 21,043 | 19,065 | ||||||||||||||
| Other service fee income | 2,967 | 3,020 | 3,318 | 3,076 | 3,236 | 12,381 | 12,425 | ||||||||||||||
| Bank owned life insurance income | 823 | 806 | 789 | 767 | 1,230 | 3,185 | 3,787 | ||||||||||||||
| Net gain on sales of investment securities | — | — | — | — | — | — | 30 | ||||||||||||||
| Net gain on mortgage banking activities | 809 | 1,216 | 1,039 | 625 | 436 | 3,689 | 4,412 | ||||||||||||||
| Other income | 961 | 228 | 1,222 | 471 | 2,164 | 2,882 | 4,500 | ||||||||||||||
| Total noninterest income | 18,620 | 18,691 | 19,833 | 19,680 | 20,458 | 76,824 | 77,885 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salaries, benefits and commissions | 29,321 | 29,978 | 29,875 | 31,014 | 29,028 | 120,188 | 115,806 | ||||||||||||||
| Net occupancy | 2,751 | 2,594 | 2,614 | 2,727 | 2,551 | 10,686 | 10,193 | ||||||||||||||
| Equipment | 1,066 | 1,087 | 986 | 993 | 977 | 4,132 | 3,904 | ||||||||||||||
| Data processing | 4,444 | 4,189 | 4,137 | 4,029 | 4,039 | 16,799 | 15,215 | ||||||||||||||
| Professional fees | 1,768 | 1,763 | 1,669 | 1,941 | 1,829 | 7,141 | 9,332 | ||||||||||||||
| Marketing and advertising | 632 | 555 | 622 | 371 | 739 | 2,180 | 2,462 | ||||||||||||||
| Deposit insurance premiums | 1,350 | 1,258 | 1,116 | 1,101 | 708 | 4,825 | 3,075 | ||||||||||||||
| Intangible expenses | 212 | 220 | 253 | 253 | 301 | 938 | 1,293 | ||||||||||||||
| Restructuring charges | 189 | — | 1,330 | — | 184 | 1,519 | 184 | ||||||||||||||
| Other expense | 7,313 | 7,344 | 7,197 | 7,100 | 6,970 | 28,954 | 25,310 | ||||||||||||||
| Total noninterest expense | 49,046 | 48,988 | 49,799 | 49,529 | 47,326 | 197,362 | 186,774 | ||||||||||||||
| Income before taxes | 20,403 | 21,269 | 20,936 | 26,081 | 29,632 | 88,689 | 97,210 | ||||||||||||||
| Income tax expense | 4,149 | 4,253 | 4,136 | 5,047 | 5,796 | 17,585 | 19,090 | ||||||||||||||
| Net income | $ | 16,254 | $ | 17,016 | $ | 16,800 | $ | 21,034 | $ | 23,836 | $ | 71,104 | $ | 78,120 | |||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.55 | $ | 0.58 | $ | 0.57 | $ | 0.72 | $ | 0.82 | $ | 2.42 | $ | 2.66 | |||||||
| Diluted | $ | 0.55 | $ | 0.58 | $ | 0.57 | $ | 0.71 | $ | 0.81 | $ | 2.41 | $ | 2.64 | |||||||
| Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.84 | $ | 0.83 | |||||||
| Weighted average shares outstanding | 29,500,147 | 29,479,066 | 29,439,392 | 29,312,265 | 29,251,293 | 29,433,359 | 29,392,606 | ||||||||||||||
| Period end shares outstanding | 29,511,721 | 29,508,128 | 29,471,124 | 29,427,696 | 29,271,915 | 29,511,721 | 29,271,915 | ||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||
| December 31, 2023 | |||||||||||||||||||||
| For the three months ended, | For the twelve months ended, | ||||||||||||||||||||
| Profitability Ratios (annualized) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | ||||||||||||||
| Return on average assets | 0.82 | % | 0.88 | % | 0.91 | % | 1.18 | % | 1.35 | % | 0.94 | % | 1.12 | % | |||||||
| Return on average assets, excluding restructuring charges (1) | 0.83 | % | 0.88 | % | 0.96 | % | 1.18 | % | 1.36 | % | 0.96 | % | 1.13 | % | |||||||
| Return on average shareholders' equity | 7.91 | % | 8.32 | % | 8.35 | % | 10.81 | % | 12.33 | % | 8.83 | % | 10.13 | % | |||||||
| Return on average shareholders' equity, excluding restructuring charges (1) | 7.99 | % | 8.32 | % | 8.88 | % | 10.81 | % | 12.40 | % | 8.97 | % | 10.14 | % | |||||||
| Return on average tangible common equity (1)(3) | 10.23 | % | 10.77 | % | 10.85 | % | 14.11 | % | 16.23 | % | 11.45 | % | 13.36 | % | |||||||
| Return on average tangible common equity, excluding restructuring charges (1)(3) | 10.32 | % | 10.77 | % | 11.52 | % | 14.11 | % | 16.33 | % | 11.64 | % | 13.39 | % | |||||||
| Net interest margin (FTE) | 2.84 | % | 2.96 | % | 3.14 | % | 3.58 | % | 3.76 | % | 3.12 | % | 3.38 | % | |||||||
| Efficiency ratio (2) | 68.3 | % | 67.3 | % | 66.7 | % | 62.2 | % | 56.9 | % | 66.0 | % | 62.4 | % | |||||||
| Efficiency ratio, excluding restructuring charges (1)(2) | 68.0 | % | 67.3 | % | 64.9 | % | 62.2 | % | 56.7 | % | 65.5 | % | 62.4 | % | |||||||
| Capitalization Ratios | |||||||||||||||||||||
| Dividends declared to net income | 38.1 | % | 36.4 | % | 36.8 | % | 29.2 | % | 25.8 | % | 34.8 | % | 31.2 | % | |||||||
| Shareholders' equity to assets (Period End) | 10.79 | % | 10.31 | % | 10.59 | % | 10.85 | % | 10.75 | % | 10.79 | % | 10.75 | % | |||||||
| Tangible common equity to tangible assets (1) | 8.70 | % | 8.22 | % | 8.45 | % | 8.63 | % | 8.49 | % | 8.70 | % | 8.49 | % | |||||||
| Common equity book value per share | $ | 28.44 | $ | 27.36 | $ | 27.32 | $ | 27.13 | $ | 26.53 | $ | 28.44 | $ | 26.53 | |||||||
| Tangible common equity book value per share (1) | $ | 22.41 | $ | 21.32 | $ | 21.27 | $ | 21.07 | $ | 20.42 | $ | 22.41 | $ | 20.42 | |||||||
| Regulatory Capital Ratios (Period End) | |||||||||||||||||||||
| Tier 1 leverage ratio | 9.36 | % | 9.43 | % | 9.59 | % | 9.71 | % | 9.81 | % | 9.36 | % | 9.81 | % | |||||||
| Common equity tier 1 risk-based capital ratio | 10.61 | % | 10.32 | % | 10.26 | % | 10.43 | % | 10.37 | % | 10.61 | % | 10.37 | % | |||||||
| Tier 1 risk-based capital ratio | 10.61 | % | 10.32 | % | 10.26 | % | 10.43 | % | 10.37 | % | 10.61 | % | 10.37 | % | |||||||
| Total risk-based capital ratio | 13.93 | % | 13.58 | % | 13.54 | % | 13.78 | % | 13.67 | % | 13.93 | % | 13.67 | % | |||||||
| (1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document. | |||||||||||||||||||||
| (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income. | |||||||||||||||||||||
| (3) Net income before amortization of intangibles to average tangible common equity. | |||||||||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||
| Tax Equivalent Basis | September 30, 2023 | ||||||||||||||||||||
| Income/ | Average | Average | Income/ | Average | |||||||||||||||||
| (Dollars in thousands) | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning deposits with other banks | 280,693 | $ | 3,804 | 5.38 | % | $ | 143,109 | $ | 1,865 | 5.17 | % | ||||||||||
| Obligations of state and political subdivisions* | 14 | 2.44 | 2,281 | 16 | 2.78 | ||||||||||||||||
| Other debt and equity securities | 3,678 | 2.99 | 504,060 | 3,540 | 2.79 | ||||||||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 767 | 7.36 | 40,406 | 712 | 6.99 | ||||||||||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 8,263 | 4.04 | 689,856 | 6,133 | 3.53 | ||||||||||||||||
| Commercial, financial, and agricultural loans | 17,485 | 7.13 | 995,355 | 17,545 | 6.99 | ||||||||||||||||
| Real estate—commercial and construction loans | 50,715 | 5.60 | 3,552,709 | 49,548 | 5.53 | ||||||||||||||||
| Real estate—residential loans | 19,133 | 4.79 | 1,543,360 | 18,270 | 4.70 | ||||||||||||||||
| Loans to individuals | 558 | 8.00 | 26,538 | 525 | 7.85 | ||||||||||||||||
| Municipal loans and leases* | 2,438 | 4.20 | 234,685 | 2,430 | 4.11 | ||||||||||||||||
| Lease financings | 2,897 | 6.16 | 184,522 | 2,928 | 6.30 | ||||||||||||||||
| Gross loans and leases | 93,226 | 5.61 | 6,537,169 | 91,246 | 5.54 | ||||||||||||||||
| Total interest-earning assets | 101,489 | 5.44 | 7,227,025 | 97,379 | 5.35 | ||||||||||||||||
| Cash and due from banks | 62,673 | ||||||||||||||||||||
| Allowance for credit losses, loans and leases | (83,827) | ||||||||||||||||||||
| Premises and equipment, net | 52,071 | ||||||||||||||||||||
| Operating lease right-of-use assets | 31,647 | ||||||||||||||||||||
| Other assets | 404,394 | ||||||||||||||||||||
| Total assets | 7,865,523 | $ | 7,693,983 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||
| Interest-bearing checking deposits | 1,193,386 | $ | 8,409 | 2.80 | % | $ | 1,070,063 | $ | 6,703 | 2.49 | % | ||||||||||
| Money market savings | 21,133 | 4.54 | 1,645,210 | 17,850 | 4.30 | ||||||||||||||||
| Regular savings | 874 | 0.44 | 828,672 | 861 | 0.41 | ||||||||||||||||
| Time deposits | 12,748 | 4.26 | 1,140,622 | 11,668 | 4.06 | ||||||||||||||||
| Total time and interest-bearing deposits | 43,164 | 3.42 | 4,684,567 | 37,082 | 3.14 | ||||||||||||||||
| Short-term borrowings | 1 | 0.04 | 93,028 | 1,117 | 4.76 | ||||||||||||||||
| Long-term debt | 3,026 | 3.77 | 320,000 | 3,036 | 3.76 | ||||||||||||||||
| Subordinated notes | 2,281 | 6.09 | 148,568 | 2,281 | 6.09 | ||||||||||||||||
| Total borrowings | 5,308 | 4.41 | 561,596 | 6,434 | 4.55 | ||||||||||||||||
| Total interest-bearing liabilities | 48,472 | 3.50 | 5,246,163 | 43,516 | 3.29 | ||||||||||||||||
| Noninterest-bearing deposits | 1,538,143 | ||||||||||||||||||||
| Operating lease liabilities | 34,788 | ||||||||||||||||||||
| Accrued expenses and other liabilities | 63,374 | ||||||||||||||||||||
| Total liabilities | 6,882,468 | ||||||||||||||||||||
| Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 2.77 | 6,784,306 | 2.54 | ||||||||||||||||||
| Shareholders' Equity: | |||||||||||||||||||||
| Common stock | 157,784 | ||||||||||||||||||||
| Additional paid-in capital | 299,575 | ||||||||||||||||||||
| Retained earnings and other equity | 354,156 | ||||||||||||||||||||
| Total shareholders' equity | 811,515 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | 7,865,523 | $ | 7,693,983 | ||||||||||||||||||
| Net interest income | $ | 53,017 | $ | 53,863 | |||||||||||||||||
| Net interest spread | 1.94 | 2.06 | |||||||||||||||||||
| Effect of net interest-free funding sources | 0.90 | 0.90 | |||||||||||||||||||
| Net interest margin | 2.84 | % | 2.96 | % | |||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | % | 137.76 | % | ||||||||||||||||||
| *Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | |||||||||||||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustment. | |||||||||||||||||||||
| Net interest income includes net deferred costs amortization of 428 thousand and 563 thousand for the three months ended December 31, 2023 and September 30, 2023. | |||||||||||||||||||||
| 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 December 31, 2023 and September 30, 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%. |
All values are in US Dollars.
| Univest Financial Corporation | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balances and Interest Rates (Unaudited) | |||||||||||
| Tax Equivalent Basis | 2022 | ||||||||||
| Income/ | Average | Average | Income/ | Average | |||||||
| (Dollars in thousands) | Expense | Rate | Balance | Expense | Rate | ||||||
| Assets: | |||||||||||
| Interest-earning deposits with other banks | 280,693 | $ | 3,804 | 5.38 | % | $ | 57,059 | $ | 487 | 3.39 | % |
| Obligations of state and political subdivisions* | 14 | 2.44 | 2,266 | 17 | 2.98 | ||||||
| Other debt and equity securities | 3,678 | 2.99 | 503,451 | 3,316 | 2.61 | ||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 767 | 7.36 | 29,401 | 493 | 6.65 | ||||||
| Total interest-earning deposits, investments and other interest-earning assets | 8,263 | 4.04 | 592,177 | 4,313 | 2.89 | ||||||
| Commercial, financial, and agricultural loans | 17,485 | 7.13 | 1,007,121 | 14,471 | 5.70 | ||||||
| Real estate—commercial and construction loans | 50,715 | 5.60 | 3,223,822 | 39,459 | 4.86 | ||||||
| Real estate—residential loans | 19,133 | 4.79 | 1,335,220 | 14,340 | 4.26 | ||||||
| Loans to individuals | 558 | 8.00 | 26,772 | 401 | 5.94 | ||||||
| Municipal loans and leases* | 2,438 | 4.20 | 233,684 | 2,433 | 4.13 | ||||||
| Lease financings | 2,897 | 6.16 | 152,962 | 2,416 | 6.27 | ||||||
| Gross loans and leases | 93,226 | 5.61 | 5,979,581 | 73,520 | 4.88 | ||||||
| Total interest-earning assets | 101,489 | 5.44 | 6,571,758 | 77,833 | 4.70 | ||||||
| Cash and due from banks | 56,428 | ||||||||||
| Allowance for credit losses, loans and leases | (75,390) | ||||||||||
| Premises and equipment, net | 50,803 | ||||||||||
| Operating lease right-of-use assets | 30,413 | ||||||||||
| Other assets | 385,369 | ||||||||||
| Total assets | 7,865,523 | $ | 7,019,381 | ||||||||
| Liabilities: | |||||||||||
| Interest-bearing checking deposits | 1,193,386 | $ | 8,409 | 2.80 | % | $ | 924,012 | $ | 2,746 | 1.18 | % |
| Money market savings | 21,133 | 4.54 | 1,365,502 | 7,670 | 2.23 | ||||||
| Regular savings | 874 | 0.44 | 1,045,261 | 492 | 0.19 | ||||||
| Time deposits | 12,748 | 4.26 | 433,010 | 1,586 | 1.45 | ||||||
| Total time and interest-bearing deposits | 43,164 | 3.42 | 3,767,785 | 12,494 | 1.32 | ||||||
| Short-term borrowings | 1 | 0.04 | 101,126 | 852 | 3.34 | ||||||
| Long-term debt | 3,026 | 3.77 | 95,000 | 324 | 1.35 | ||||||
| Subordinated notes | 2,281 | 6.09 | 124,250 | 1,815 | 5.80 | ||||||
| Total borrowings | 5,308 | 4.41 | 320,376 | 2,991 | 3.70 | ||||||
| Total interest-bearing liabilities | 48,472 | 3.50 | 4,088,161 | 15,485 | 1.50 | ||||||
| Noninterest-bearing deposits | 2,070,038 | ||||||||||
| Operating lease liabilities | 33,492 | ||||||||||
| Accrued expenses and other liabilities | 60,498 | ||||||||||
| Total liabilities | 6,252,189 | ||||||||||
| Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 2.77 | 6,158,199 | 1.00 | ||||||||
| Shareholders' Equity: | |||||||||||
| Common stock | 157,784 | ||||||||||
| Additional paid-in capital | 300,121 | ||||||||||
| Retained earnings and other equity | 309,287 | ||||||||||
| Total shareholders' equity | 767,192 | ||||||||||
| Total liabilities and shareholders' equity | 7,865,523 | $ | 7,019,381 | ||||||||
| Net interest income | $ | 53,017 | $ | 62,348 | |||||||
| Net interest spread | 1.94 | 3.20 | |||||||||
| Effect of net interest-free funding sources | 0.90 | 0.56 | |||||||||
| Net interest margin | 2.84 | % | 3.76 | % | |||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | % | 160.75 | % | ||||||||
| *Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | |||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments. | |||||||||||
| Net interest income includes net deferred costs amortization of 428 thousand and 516 thousand for the three months ended December 31, 2023 and 2022, respectively. | |||||||||||
| 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 December 31, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%. |
All values are in US Dollars.
| Univest Financial Corporation | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Average Balances and Interest Rates (Unaudited) | |||||||||||
| Tax Equivalent Basis | 2022 | ||||||||||
| Income/ | Average | Average | Income/ | Average | |||||||
| (Dollars in thousands) | Expense | Rate | Balance | Expense | Rate | ||||||
| Assets: | |||||||||||
| Interest-earning deposits with other banks | 130,309 | $ | 6,660 | 5.11 | % | $ | 325,875 | $ | 1,920 | 0.59 | % |
| U.S. government obligations | — | — | 1,929 | 40 | 2.07 | ||||||
| Obligations of state and political subdivisions* | 62 | 2.72 | 2,302 | 71 | 3.08 | ||||||
| Other debt and equity securities | 14,225 | 2.81 | 510,961 | 11,392 | 2.23 | ||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 2,869 | 7.16 | 27,784 | 1,627 | 5.86 | ||||||
| Total interest-earning deposits, investments and other interest-earning assets | 23,816 | 3.51 | 868,851 | 15,050 | 1.73 | ||||||
| Commercial, financial, and agricultural loans | 67,487 | 6.81 | 963,755 | 43,861 | 4.55 | ||||||
| Real estate—commercial and construction loans | 188,644 | 5.42 | 3,060,689 | 127,906 | 4.18 | ||||||
| Real estate—residential loans | 70,349 | 4.67 | 1,219,275 | 47,472 | 3.89 | ||||||
| Loans to individuals | 2,011 | 7.43 | 26,642 | 1,325 | 4.97 | ||||||
| Municipal loans and leases* | 9,597 | 4.13 | 236,858 | 9,703 | 4.10 | ||||||
| Lease financings | 11,025 | 6.19 | 144,046 | 8,791 | 6.10 | ||||||
| Gross loans and leases | 349,113 | 5.44 | 5,651,265 | 239,058 | 4.23 | ||||||
| Total interest-earning assets | 372,929 | 5.25 | 6,520,116 | 254,108 | 3.90 | ||||||
| Cash and due from banks | 57,196 | ||||||||||
| Allowance for credit losses, loans and leases | (72,069) | ||||||||||
| Premises and equipment, net | 51,362 | ||||||||||
| Operating lease right-of-use assets | 30,443 | ||||||||||
| Other assets | 369,244 | ||||||||||
| Total assets | 7,557,030 | $ | 6,956,292 | ||||||||
| Liabilities: | |||||||||||
| Interest-bearing checking deposits | 1,034,327 | $ | 23,668 | 2.29 | % | $ | 884,656 | $ | 5,010 | 0.57 | % |
| Money market savings | 64,153 | 3.98 | 1,389,226 | 13,835 | 1.00 | ||||||
| Regular savings | 3,249 | 0.37 | 1,056,019 | 1,269 | 0.12 | ||||||
| Time deposits | 34,979 | 3.75 | 443,845 | 5,308 | 1.20 | ||||||
| Total time and interest-bearing deposits | 126,049 | 2.83 | 3,773,746 | 25,422 | 0.67 | ||||||
| Short-term borrowings | 7,095 | 4.77 | 60,468 | 1,389 | 2.30 | ||||||
| Long-term debt | 9,464 | 3.59 | 95,000 | 1,287 | 1.35 | ||||||
| Subordinated notes | 9,125 | 6.14 | 105,356 | 5,798 | 5.50 | ||||||
| Total borrowings | 25,684 | 4.58 | 260,824 | 8,474 | 3.25 | ||||||
| Total interest-bearing liabilities | 151,733 | 3.03 | 4,034,570 | 33,896 | 0.84 | ||||||
| Noninterest-bearing deposits | 2,068,086 | ||||||||||
| Operating lease liabilities | 33,508 | ||||||||||
| Accrued expenses and other liabilities | 48,629 | ||||||||||
| Total liabilities | 6,184,793 | ||||||||||
| Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 2.28 | 6,102,656 | 0.56 | ||||||||
| Shareholders' Equity: | |||||||||||
| Common stock | 157,784 | ||||||||||
| Additional paid-in capital | 299,121 | ||||||||||
| Retained earnings and other equity | 314,594 | ||||||||||
| Total shareholders' equity | 771,499 | ||||||||||
| Total liabilities and shareholders' equity | 7,557,030 | $ | 6,956,292 | ||||||||
| Net interest income | $ | 221,196 | $ | 220,212 | |||||||
| Net interest spread | 2.22 | 3.06 | |||||||||
| Effect of net interest-free funding sources | 0.90 | 0.32 | |||||||||
| Net interest margin | 3.12 | % | 3.38 | % | |||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | % | 161.61 | % | ||||||||
| *Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | |||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments. | |||||||||||
| Net interest income includes net deferred costs amortization of 2.1 million and 1.8 million for the twelve months ended December 31, 2023 and 2022, respectively. |
All values are in US Dollars.
| 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 twelve months ended December 31, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%. | ||||||||||||||
| Univest Financial Corporation | ||||||||||||||
| --- | --- | --- | --- | --- | ||||||||||
| Loan Portfolio Overview (Unaudited) | ||||||||||||||
| December 31, 2023 | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| Industry Description | Total Outstanding Balance | % of Commercial Loan Portfolio | ||||||||||||
| CRE - Retail | $ | 469,890 | 9.0 | % | ||||||||||
| Animal Production | 361,597 | 6.9 | ||||||||||||
| CRE - Multi-family | 320,176 | 6.2 | ||||||||||||
| CRE - Office | 299,718 | 5.8 | ||||||||||||
| CRE - 1-4 Family Residential Investment | 285,559 | 5.5 | ||||||||||||
| CRE - Industrial / Warehouse | 248,611 | 4.8 | ||||||||||||
| Hotels & Motels (Accommodation) | 190,639 | 3.7 | ||||||||||||
| Specialty Trade Contractors | 164,798 | 3.2 | ||||||||||||
| Education | 161,325 | 3.1 | ||||||||||||
| Homebuilding (tract developers, remodelers) | 153,239 | 2.9 | ||||||||||||
| Nursing and Residential Care Facilities | 150,666 | 2.9 | ||||||||||||
| Motor Vehicle and Parts Dealers | 138,581 | 2.7 | ||||||||||||
| Merchant Wholesalers, Durable Goods | 118,351 | 2.3 | ||||||||||||
| CRE - Mixed-Use - Residential | 110,458 | 2.1 | ||||||||||||
| Crop Production | 103,285 | 2.0 | ||||||||||||
| Repair and Maintenance | 97,682 | 1.9 | ||||||||||||
| Wood Product Manufacturing | 85,292 | 1.6 | ||||||||||||
| Real Estate Lenders, Secondary Market Financing | 80,755 | 1.6 | ||||||||||||
| Rental and Leasing Services | 79,767 | 1.5 | ||||||||||||
| Fabricated Metal Product Manufacturing | 73,545 | 1.4 | ||||||||||||
| CRE - Mixed-Use - Commercial | 72,685 | 1.4 | ||||||||||||
| Religious Organizations, Advocacy Groups | 72,685 | 1.4 | ||||||||||||
| Personal and Laundry Services | 72,117 | 1.4 | ||||||||||||
| Administrative and Support Services | 70,754 | 1.4 | ||||||||||||
| Amusement, Gambling, and Recreation Industries | 70,686 | 1.4 | ||||||||||||
| Merchant Wholesalers, Nondurable Goods | 65,491 | 1.3 | ||||||||||||
| Food Services and Drinking Places | 65,143 | 1.3 | ||||||||||||
| Private Equity & Special Purpose Entities (except 52592) | 63,447 | 1.2 | ||||||||||||
| Miniwarehouse / Self-Storage | 61,964 | 1.2 | ||||||||||||
| Food Manufacturing | 59,662 | 1.1 | ||||||||||||
| Truck Transportation | 53,306 | 1.0 | ||||||||||||
| Industries with >$50 million in outstandings | $ | 4,421,874 | 85.0 | % | ||||||||||
| Industries with <$50 million in outstandings | $ | 782,111 | 15.0 | % | ||||||||||
| Total Commercial Loans | $ | 5,203,985 | 100.0 | % | ||||||||||
| Consumer Loans and Lease Financings | Total Outstanding Balance | |||||||||||||
| Real Estate-Residential Secured for Personal Purpose | $ | 909,015 | ||||||||||||
| Real Estate-Home Equity Secured for Personal Purpose | 179,282 | |||||||||||||
| Loans to Individuals | 27,749 | |||||||||||||
| Lease Financings | 247,183 | |||||||||||||
| Total Consumer Loans and Lease Financings | $ | 1,363,229 | ||||||||||||
| Total | $ | 6,567,214 | ||||||||||||
| Univest Financial Corporation | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Non-GAAP Reconciliation | ||||||||||||||
| December 31, 2023 | ||||||||||||||
| Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release. | ||||||||||||||
| As of or for the three months ended, | As of or for the twelve months ended, | |||||||||||||
| (Dollars in thousands) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | |||||||
| Restructuring charges (a) | $ | 189 | $ | — | $ | 1,330 | $ | — | $ | 184 | $ | 1,519 | $ | 184 |
| Tax effect of restructuring charges | (40) | — | (279) | — | (39) | (319) | (39) | |||||||
| Restructuring charges, net of tax | $ | 149 | $ | — | $ | 1,051 | $ | — | $ | 145 | $ | 1,200 | $ | 145 |
| Net income | $ | 16,254 | $ | 17,016 | $ | 16,800 | $ | 21,034 | $ | 23,836 | $ | 71,104 | $ | 78,120 |
| Amortization of intangibles, net of tax | 167 | 174 | 200 | 200 | 238 | 741 | 1,021 | |||||||
| Net income before amortization of intangibles | $ | 16,421 | $ | 17,190 | $ | 17,000 | $ | 21,234 | $ | 24,074 | $ | 71,845 | $ | 79,141 |
| Shareholders' equity | $ | 839,208 | $ | 807,198 | $ | 805,222 | $ | 798,496 | $ | 776,500 | $ | 839,208 | $ | 776,500 |
| Goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||||
| Other intangibles (b) | (2,405) | (2,558) | (2,767) | (3,054) | (3,251) | (2,405) | (3,251) | |||||||
| Tangible common equity | $ | 661,293 | $ | 629,130 | $ | 626,945 | $ | 619,932 | $ | 597,739 | $ | 661,293 | $ | 597,739 |
| Total assets | $ | 7,777,218 | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 | $ | 7,222,016 | $ | 7,777,218 | $ | 7,222,016 |
| Goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||||
| Other intangibles (b) | (2,405) | (2,558) | (2,767) | (3,054) | (3,251) | (2,405) | (3,251) | |||||||
| Tangible assets | $ | 7,599,303 | $ | 7,649,998 | $ | 7,421,873 | $ | 7,180,427 | $ | 7,043,255 | $ | 7,599,303 | $ | 7,043,255 |
| Average shareholders' equity | $ | 814,941 | $ | 811,515 | $ | 806,709 | $ | 789,153 | $ | 767,192 | $ | 805,667 | $ | 771,499 |
| Average goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||||
| Average other intangibles (b) | (2,477) | (2,680) | (2,924) | (3,137) | (3,355) | (2,802) | (3,694) | |||||||
| Average tangible common equity | $ | 636,954 | $ | 633,325 | $ | 628,275 | $ | 610,506 | $ | 588,327 | $ | 627,355 | $ | 592,295 |
| (a) Associated with financial service center optimization and headcount rationalization expense management strategies | ||||||||||||||
| (b) Amount does not include mortgage servicing rights |