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): October 25, 2023
_______________________
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 October 25, 2023, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2023 third quarter earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers. |
|---|
On October 25, 2023, the Board of Directors of the Corporation appointed Anne Vazquez to serve as an Alternate Director of the Corporation, effective December 1, 2023, with a term expiring at the 2024 annual shareholders meeting.
Ms. Vazquez is currently a General Partner at NewSpring Capital, LLC and NewSpring Mezzanine Capital. Ms. Vazquez has served NewSpring Capital, LLC in various capacities since 2008, including serving on the board of various portfolio companies. Ms. Vazquez was previously a Senior Analyst on the Financial Analysis Compliance Team for a private equity and global asset management firm. Ms. Vazquez also held various positions for KPMG, LLP, including Senior Associate in the Assurance Practice. Ms. Vazquez currently serves on the Board of Trustees for Notre Dame Academy de Namur and Holy Child School at Rosemont. Ms. Vazquez also serves on the Board of Directors for Association of Corporate Growth Philadelphia Chapter. Ms. Vazquez holds a MSAT from Villanova University and a BS for the University of Rhode Island.
| 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 onOctober25, 2023 |
| 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 |
October 26, 2023
EXHIBIT INDEX
| Exhibit No. | Description of Document |
|---|---|
| 99.1 | Press release issued by Univest Financial Corporation onOctober25, 2023 |
| 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 THIRD QUARTER RESULTS
SOUDERTON, Pa., October 25, 2023 - 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 September 30, 2023 was $17.0 million, or $0.58 diluted earnings per share, compared to net income of $20.8 million, or $0.71 diluted earnings per share, for the quarter ended September 30, 2022.
Loans
Gross loans and leases increased $112.7 million, or 1.7% (7.0% annualized), from June 30, 2023, primarily due to increases in commercial, commercial real estate, construction and residential mortgage loans. Gross loans and leases increased $451.7 million, or 7.4% (9.8% annualized), from December 31, 2022, primarily due to increases in commercial real estate, construction, residential mortgage loans and lease financings.
Deposits and Liquidity
Total deposits increased $451.8 million, or 7.5% (30.2% annualized), from June 30, 2023 and $525.6 million, or 8.9% (11.9% annualized), from December 31, 2022. The increase from June 30, 2023 was primarily due to seasonal increases in public funds partially offset by decreases in commercial and consumer deposits. The increase from December 31, 2022 was primarily due to increases in brokered deposits and seasonal public funds deposits partially offset by decreases in commercial and consumer deposits. Noninterest-bearing deposits represented 22.2% of total deposits at September 30, 2023, down from 26.4% at June 30, 2023. At September 30, 2023, unprotected deposits, which excludes insured accounts, internal accounts, and collateralized trust accounts, represented 20.8% of total deposits, down from 23.3% at June 30, 2023.
As of September 30, 2023, the Corporation had cash and cash equivalents totaling $290.3 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.3 billion at September 30, 2023, of which $1.7 billion was available. The Corporation and its subsidiaries also maintained unused uncommitted funding sources from correspondent banks of $369.0 million at September 30, 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 $53.6 million for the three months ended September 30, 2023 decreased $740 thousand, or 1.4%, from the three months ended June 30, 2023, and $4.7 million, or 8.0%, from the three months ended September 30, 2022. The decrease in net interest income for both comparison periods 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 2.96% for the third quarter of 2023, compared to 3.14% for the second quarter of 2023 and 3.67% for the third quarter of 2022. Excess liquidity reduced net interest margin by approximately four basis points for the quarter ended September 30, 2023, and approximately one basis point for the quarter ended September 30, 2022. Excess liquidity had no impact on the quarter ended June 30, 2023.
Noninterest Income
Noninterest income for the quarter ended September 30, 2023 was $18.7 million, an increase of $732 thousand, or 4.1%, compared to the third quarter of 2022.
Investment advisory commission and fee income increased $644 thousand, or 15.3%, for the quarter ended September 30, 2023, primarily due to new customer relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance. Insurance commission and fee income increased $410 thousand, or 9.2%, for the quarter ended September 30, 2023, primarily due to increased revenue from commercial lines. Net gain on mortgage banking activities increased $399 thousand, or 48.8%, for the quarter ended September 30, 2023, due to increased volume.
Bank owned life insurance ("BOLI") decreased $347 thousand, or 30.1%, for the quarter ended September 30, 2023, primarily due to a death benefit claim of $446 thousand received in the third quarter of 2022. Other income decreased $639 thousand, or 73.7%, for the quarter ended September 30, 2023, primarily due to a $412 thousand decrease in the gain on sale of Small Business Administration ("SBA") loans.
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2023 was $49.0 million, an increase of $2.3 million, or 5.0%, compared to the third quarter of 2022.
Salaries, benefits and commissions increased $578 thousand, or 2.0%, for the quarter ended September 30, 2023. This increase reflects our expansion into Maryland and Western Pennsylvania and annual merit increases, increases in medical claims expense and decreases in compensation capitalized driven by lower loan production, offset by decreases due to the staff reduction that was announced during the second quarter and a reduction in incentive compensation due to decreased profitability.
Deposit insurance premiums increased $596 thousand, or 90.0%, for the quarter ended September 30, 2023, primarily driven by an increased industry-wide assessment rate and an increase in our assessment base.
Other expense increased $1.5 million, or 26.7%, for the quarter ended September 30, 2023, primarily due to increases in retirement plan costs of $527 thousand. Other increases included $324 thousand of loan processing and workout fees. Federal Home Loan Bank letter of credit fees increased by $138 thousand due to increased public fund deposits and related collateral costs.
Professional fees decreased $758 thousand, or 30.1%, for the quarter ended September 30, 2023, primarily due to consultant fees incurred in the third quarter of 2022 related to our digital transformation initiative.
Tax Provision
The effective income tax rate was 20.0% for the quarters ended September 30, 2023 and 2022. The effective tax rates for the three months ended September 30, 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 September 30, 2023, compared to $34.5 million at June 30, 2023 and $33.0 million at September 30, 2022. On October 16, 2023, a $5.8 million loan was sold at par. This loan was classified as nonperforming at September 30, 2023.
Net loan and lease charge-offs were $969 thousand for the three months ended September 30, 2023 compared to $512 thousand and $1.2 million for the three months ended June 30, 2023 and September 30, 2022, respectively.
The provision for credit losses was $2.0 million for the three months ended September 30, 2023 compared to $3.4 million and $3.6 million for the three months ended June 30, 2023 and September 30, 2022, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2023, June 30, 2023 and September 30, 2022.
Dividend
On October 25, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 22, 2023 to shareholders of record as of November 8, 2023.
Conference Call
Univest will host a conference call to discuss third quarter 2023 results on Thursday, October 26, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=05f2e363&confId=56351. The general public can access the call by dialing 1-833-470-1428; using Access Code 988711. A replay of the conference call will be available through November 23, 2023 by dialing 1-866-813-9403; using Access Code 428932.
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 $4.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 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) technological issues that may adversely affect our operations or those of our customers; (9) changes in the securities markets; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (11) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (12) 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) | ||||||||||||||||||||
| September 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Balance Sheet (Period End) | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 68,900 | $ | 80,795 | $ | 71,215 | $ | 84,176 | $ | 65,859 | ||||||||||
| Interest-earning deposits with other banks | 221,441 | 59,616 | 67,109 | 68,623 | 47,451 | |||||||||||||||
| Cash and cash equivalents | 290,341 | 140,411 | 138,324 | 152,799 | 113,310 | |||||||||||||||
| Investment securities held-to-maturity | 149,451 | 153,509 | 151,347 | 154,727 | 159,170 | |||||||||||||||
| Investment securities available for sale, net of allowance for credit losses | 334,538 | 356,164 | 367,656 | 350,256 | 347,479 | |||||||||||||||
| Investments in equity securities | 4,054 | 3,443 | 3,105 | 2,579 | 2,994 | |||||||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost | 42,417 | 42,811 | 43,792 | 33,841 | 29,475 | |||||||||||||||
| Loans held for sale | 16,473 | 29,526 | 5,425 | 5,037 | 9,087 | |||||||||||||||
| Loans and leases held for investment | 6,574,958 | 6,462,238 | 6,239,804 | 6,123,230 | 5,849,259 | |||||||||||||||
| Less: Allowance for credit losses, loans and leases | (83,837) | (82,709) | (80,034) | (79,004) | (74,929) | |||||||||||||||
| Net loans and leases held for investment | 6,491,121 | 6,379,529 | 6,159,770 | 6,044,226 | 5,774,330 | |||||||||||||||
| Premises and equipment, net | 51,287 | 52,058 | 52,334 | 50,939 | 50,533 | |||||||||||||||
| Operating lease right-of-use assets | 31,053 | 30,237 | 31,663 | 30,059 | 30,654 | |||||||||||||||
| Goodwill | 175,510 | 175,510 | 175,510 | 175,510 | 175,510 | |||||||||||||||
| Other intangibles, net of accumulated amortization | 11,079 | 10,923 | 11,044 | 11,384 | 11,650 | |||||||||||||||
| Bank owned life insurance | 130,522 | 129,715 | 128,926 | 120,297 | 120,035 | |||||||||||||||
| Accrued interest and other assets | 100,220 | 96,314 | 90,095 | 90,362 | 83,170 | |||||||||||||||
| Total assets | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 | $ | 7,222,016 | $ | 6,907,397 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,432,559 | $ | 1,582,767 | $ | 1,799,225 | $ | 2,047,263 | $ | 1,968,422 | ||||||||||
| Interest-bearing deposits: | 5,006,606 | 4,404,635 | 4,035,432 | 3,866,263 | 3,818,554 | |||||||||||||||
| Total deposits | 6,439,165 | 5,987,402 | 5,834,657 | 5,913,526 | 5,786,976 | |||||||||||||||
| Short-term borrowings | 14,676 | 244,666 | 271,881 | 197,141 | 80,711 | |||||||||||||||
| Long-term debt | 320,000 | 320,000 | 220,000 | 95,000 | 95,000 | |||||||||||||||
| Subordinated notes | 148,636 | 148,510 | 148,385 | 148,260 | 99,107 | |||||||||||||||
| Operating lease liabilities | 34,017 | 33,428 | 34,846 | 33,153 | 33,718 | |||||||||||||||
| Accrued expenses and other liabilities | 64,374 | 60,922 | 50,726 | 58,436 | 57,698 | |||||||||||||||
| Total liabilities | 7,020,868 | 6,794,928 | 6,560,495 | 6,445,516 | 6,153,210 | |||||||||||||||
| 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 | 300,171 | 299,212 | 298,167 | 300,808 | 299,791 | |||||||||||||||
| Retained earnings | 464,634 | 453,806 | 443,493 | 428,637 | 410,942 | |||||||||||||||
| Accumulated other comprehensive loss, net of tax benefit | (71,586) | (61,034) | (55,550) | (62,104) | (64,985) | |||||||||||||||
| Treasury stock, at cost | (43,805) | (44,546) | (45,398) | (48,625) | (49,345) | |||||||||||||||
| Total shareholders’ equity | 807,198 | 805,222 | 798,496 | 776,500 | 754,187 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 | $ | 7,222,016 | $ | 6,907,397 | ||||||||||
| For the three months ended, | For the nine months ended, | |||||||||||||||||||
| Balance Sheet (Average) | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 9/30/2023 | 9/30/2022 | |||||||||||||
| Assets | $ | 7,693,983 | $ | 7,440,798 | $ | 7,219,211 | $ | 7,019,381 | $ | 6,797,466 | $ | 7,453,070 | $ | 6,935,031 | ||||||
| Investment securities, net of allowance for credit losses | 506,341 | 518,995 | 515,880 | 505,717 | 517,335 | 513,704 | 518,383 | |||||||||||||
| Loans and leases, gross | 6,537,169 | 6,372,342 | 6,164,890 | 5,979,581 | 5,752,119 | 6,359,498 | 5,540,624 | |||||||||||||
| Deposits | 6,222,710 | 5,844,582 | 5,834,415 | 5,837,823 | 5,645,291 | 5,968,659 | 5,843,182 | |||||||||||||
| Shareholders' equity | 811,515 | 806,709 | 789,153 | 767,192 | 773,099 | 802,541 | 772,951 | |||||||||||||
| Univest Financial Corporation | ||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited) | ||||||||||||||||||||
| September 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Summary of Major Loan and Lease Categories (Period End) | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | ||||||||||||||||
| Commercial, financial and agricultural | 1,050,004 | $ | 1,039,265 | $ | 1,032,753 | $ | 1,088,928 | $ | 1,054,940 | |||||||||||
| Real estate-commercial | 3,221,993 | 3,128,210 | 3,027,955 | 2,936,204 | ||||||||||||||||
| Real estate-construction | 413,404 | 376,569 | 381,811 | 329,915 | ||||||||||||||||
| Real estate-residential secured for business purpose | 517,521 | 498,505 | 478,254 | 443,837 | ||||||||||||||||
| Real estate-residential secured for personal purpose | 832,632 | 779,557 | 730,395 | 685,771 | ||||||||||||||||
| Real estate-home equity secured for personal purpose | 175,090 | 172,073 | 176,699 | 175,843 | ||||||||||||||||
| Loans to individuals | 25,544 | 28,656 | 27,873 | 26,679 | ||||||||||||||||
| Lease financings | 236,789 | 223,481 | 211,315 | 196,070 | ||||||||||||||||
| Total loans and leases held for investment, net of deferred income | 6,462,238 | 6,239,804 | 6,123,230 | 5,849,259 | ||||||||||||||||
| Less: Allowance for credit losses, loans and leases | (82,709) | (80,034) | (79,004) | (74,929) | ||||||||||||||||
| Net loans and leases held for investment | 6,491,121 | $ | 6,379,529 | $ | 6,159,770 | $ | 6,044,226 | $ | 5,774,330 | |||||||||||
| Asset Quality Data (Period End) | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | ||||||||||||||||
| Nonaccrual loans and leases, including nonaccrual loans held for sale* | 18,085 | $ | 15,087 | $ | 11,362 | $ | 13,353 | $ | 13,620 | |||||||||||
| Accruing loans and leases 90 days or more past due | 55 | 1,996 | 875 | 416 | ||||||||||||||||
| Total nonperforming loans and leases | 15,142 | 13,358 | 14,228 | 14,036 | ||||||||||||||||
| Other real estate owned | 19,345 | 19,000 | 19,258 | 18,960 | ||||||||||||||||
| Total nonperforming assets | 40,136 | $ | 34,487 | $ | 32,358 | $ | 33,486 | $ | 32,996 | |||||||||||
| Nonaccrual loans and leases / Loans and leases held for investment | % | 0.23 | % | 0.18 | % | 0.22 | % | 0.23 | % | |||||||||||
| Nonperforming loans and leases / Loans and leases held for investment | % | 0.23 | % | 0.21 | % | 0.23 | % | 0.24 | % | |||||||||||
| Nonperforming assets / Total assets | % | 0.45 | % | 0.44 | % | 0.46 | % | 0.48 | % | |||||||||||
| Allowance for credit losses, loans and leases | 83,837 | $ | 82,709 | $ | 80,034 | $ | 79,004 | $ | 74,929 | |||||||||||
| Allowance for credit losses, loans and leases / Loans and leases held for investment | % | 1.28 | % | 1.28 | % | 1.29 | % | 1.28 | % | |||||||||||
| Allowance for credit losses, loans and leases / Nonaccrual loans and leases | % | 548.21 | % | 704.40 | % | 591.66 | % | 550.14 | % | |||||||||||
| Allowance for credit losses, loans and leases / Nonperforming loans and leases | % | 546.22 | % | 599.15 | % | 555.27 | % | 533.83 | % | |||||||||||
| *Includes a 5.8 million loan held for sale at September 30, 2023. | ||||||||||||||||||||
| For the nine months ended, | ||||||||||||||||||||
| 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 9/30/2023 | 9/30/2022 | |||||||||||||||
| Net loan and lease charge-offs | 969 | $ | 512 | $ | 2,842 | $ | 908 | $ | 1,196 | $ | 4,323 | $ | 2,987 | |||||||
| Net loan and lease charge-offs (annualized)/Average loans and leases | % | 0.03 | % | 0.19 | % | 0.06 | % | 0.08 | % | 0.09 | % | 0.07 | % |
All values are in US Dollars.
| Univest Financial Corporation | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||
| September 30, 2023 | |||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||
| For the three months ended, | For the nine months ended, | ||||||||||||||||||||
| For the period: | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 9/30/2023 | 9/30/2022 | ||||||||||||||
| Interest income | $ | 97,106 | $ | 90,139 | $ | 83,253 | $ | 77,401 | $ | 66,877 | $ | 270,498 | $ | 174,792 | |||||||
| Interest expense | 43,516 | 35,809 | 23,936 | 15,485 | 8,627 | 103,261 | 18,411 | ||||||||||||||
| Net interest income | 53,590 | 54,330 | 59,317 | 61,916 | 58,250 | 167,237 | 156,381 | ||||||||||||||
| Provision for credit losses | 2,024 | 3,428 | 3,387 | 5,416 | 3,558 | 8,839 | 6,782 | ||||||||||||||
| Net interest income after provision for credit losses | 51,566 | 50,902 | 55,930 | 56,500 | 54,692 | 158,398 | 149,599 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||||
| Trust fee income | 1,910 | 1,924 | 1,955 | 1,808 | 1,835 | 5,789 | 5,935 | ||||||||||||||
| Service charges on deposit accounts | 1,816 | 1,725 | 1,547 | 1,575 | 1,522 | 5,088 | 4,600 | ||||||||||||||
| Investment advisory commission and fee income | 4,843 | 4,708 | 4,752 | 5,585 | 4,199 | 14,303 | 14,163 | ||||||||||||||
| Insurance commission and fee income | 4,852 | 5,108 | 6,487 | 4,424 | 4,442 | 16,447 | 14,641 | ||||||||||||||
| Other service fee income | 3,020 | 3,318 | 3,076 | 3,236 | 3,124 | 9,414 | 9,189 | ||||||||||||||
| Bank owned life insurance income | 806 | 789 | 767 | 1,230 | 1,153 | 2,362 | 2,557 | ||||||||||||||
| Net gain on sales of investment securities | — | — | — | — | — | — | 30 | ||||||||||||||
| Net gain on mortgage banking activities | 1,216 | 1,039 | 625 | 436 | 817 | 2,880 | 3,976 | ||||||||||||||
| Other income | 228 | 1,222 | 471 | 2,164 | 867 | 1,921 | 2,336 | ||||||||||||||
| Total noninterest income | 18,691 | 19,833 | 19,680 | 20,458 | 17,959 | 58,204 | 57,427 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salaries, benefits and commissions | 29,978 | 29,875 | 31,014 | 29,028 | 29,400 | 90,867 | 86,778 | ||||||||||||||
| Net occupancy | 2,594 | 2,614 | 2,727 | 2,551 | 2,504 | 7,935 | 7,642 | ||||||||||||||
| Equipment | 1,087 | 986 | 993 | 977 | 968 | 3,066 | 2,927 | ||||||||||||||
| Data processing | 4,189 | 4,137 | 4,029 | 4,039 | 3,901 | 12,355 | 11,176 | ||||||||||||||
| Professional fees | 1,763 | 1,669 | 1,941 | 1,829 | 2,521 | 5,373 | 7,503 | ||||||||||||||
| Marketing and advertising | 555 | 622 | 371 | 739 | 605 | 1,548 | 1,723 | ||||||||||||||
| Deposit insurance premiums | 1,258 | 1,116 | 1,101 | 708 | 662 | 3,475 | 2,367 | ||||||||||||||
| Intangible expenses | 220 | 253 | 253 | 301 | 309 | 726 | 992 | ||||||||||||||
| Restructuring charges | — | 1,330 | — | 184 | — | 1,330 | — | ||||||||||||||
| Other expense | 7,344 | 7,197 | 7,100 | 6,970 | 5,795 | 21,641 | 18,340 | ||||||||||||||
| Total noninterest expense | 48,988 | 49,799 | 49,529 | 47,326 | 46,665 | 148,316 | 139,448 | ||||||||||||||
| Income before taxes | 21,269 | 20,936 | 26,081 | 29,632 | 25,986 | 68,286 | 67,578 | ||||||||||||||
| Income tax expense | 4,253 | 4,136 | 5,047 | 5,796 | 5,185 | 13,436 | 13,294 | ||||||||||||||
| Net income | $ | 17,016 | $ | 16,800 | $ | 21,034 | $ | 23,836 | $ | 20,801 | $ | 54,850 | $ | 54,284 | |||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.58 | $ | 0.57 | $ | 0.72 | $ | 0.82 | $ | 0.71 | $ | 1.86 | $ | 1.85 | |||||||
| Diluted | $ | 0.58 | $ | 0.57 | $ | 0.71 | $ | 0.81 | $ | 0.71 | $ | 1.86 | $ | 1.84 | |||||||
| Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.63 | $ | 0.62 | |||||||
| Weighted average shares outstanding | 29,479,066 | 29,439,392 | 29,312,265 | 29,251,293 | 29,290,829 | 29,410,852 | 29,440,228 | ||||||||||||||
| Period end shares outstanding | 29,508,128 | 29,471,124 | 29,427,696 | 29,271,915 | 29,242,451 | 29,508,128 | 29,242,451 | ||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||
| September 30, 2023 | |||||||||||||||||||||
| For the three months ended, | For the nine months ended, | ||||||||||||||||||||
| Profitability Ratios (annualized) | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 9/30/2023 | 9/30/2022 | ||||||||||||||
| Return on average assets | 0.88 | % | 0.91 | % | 1.18 | % | 1.35 | % | 1.21 | % | 0.98 | % | 1.05 | % | |||||||
| Return on average assets, excluding restructuring charges (1) | 0.88 | % | 0.96 | % | 1.18 | % | 1.36 | % | 1.21 | % | 1.00 | % | 1.05 | % | |||||||
| Return on average shareholders' equity | 8.32 | % | 8.35 | % | 10.81 | % | 12.33 | % | 10.67 | % | 9.14 | % | 9.39 | % | |||||||
| Return on average shareholders' equity, excluding restructuring charges (1) | 8.32 | % | 8.88 | % | 10.81 | % | 12.40 | % | 10.67 | % | 9.31 | % | 9.39 | % | |||||||
| Return on average tangible common equity (1)(3) | 10.77 | % | 10.85 | % | 14.11 | % | 16.23 | % | 14.06 | % | 11.87 | % | 12.40 | % | |||||||
| Return on average tangible common equity, excluding restructuring charges (1)(3) | 10.77 | % | 11.52 | % | 14.11 | % | 16.33 | % | 14.06 | % | 12.10 | % | 12.40 | % | |||||||
| Net interest margin (FTE) | 2.96 | % | 3.14 | % | 3.58 | % | 3.76 | % | 3.67 | % | 3.22 | % | 3.25 | % | |||||||
| Efficiency ratio (2) | 67.3 | % | 66.7 | % | 62.2 | % | 56.9 | % | 60.6 | % | 65.3 | % | 64.6 | % | |||||||
| Efficiency ratio, excluding restructuring charges (1)(2) | 67.3 | % | 64.9 | % | 62.2 | % | 56.7 | % | 60.6 | % | 64.7 | % | 64.6 | % | |||||||
| Capitalization Ratios | |||||||||||||||||||||
| Dividends declared to net income | 36.4 | % | 36.8 | % | 29.2 | % | 25.8 | % | 29.6 | % | 33.8 | % | 33.6 | % | |||||||
| Shareholders' equity to assets (Period End) | 10.31 | % | 10.59 | % | 10.85 | % | 10.75 | % | 10.92 | % | 10.31 | % | 10.92 | % | |||||||
| Tangible common equity to tangible assets (1) | 8.22 | % | 8.45 | % | 8.63 | % | 8.49 | % | 8.55 | % | 8.22 | % | 8.55 | % | |||||||
| Common equity book value per share | $ | 27.36 | $ | 27.32 | $ | 27.13 | $ | 26.53 | $ | 25.79 | $ | 27.36 | $ | 25.79 | |||||||
| Tangible common equity book value per share (1) | $ | 21.32 | $ | 21.27 | $ | 21.07 | $ | 20.42 | $ | 19.67 | $ | 21.32 | $ | 19.67 | |||||||
| Regulatory Capital Ratios (Period End) | |||||||||||||||||||||
| Tier 1 leverage ratio | 9.43 | % | 9.59 | % | 9.71 | % | 9.81 | % | 9.87 | % | 9.43 | % | 9.87 | % | |||||||
| Common equity tier 1 risk-based capital ratio | 10.32 | % | 10.26 | % | 10.43 | % | 10.37 | % | 10.51 | % | 10.32 | % | 10.51 | % | |||||||
| Tier 1 risk-based capital ratio | 10.32 | % | 10.26 | % | 10.43 | % | 10.37 | % | 10.51 | % | 10.32 | % | 10.51 | % | |||||||
| Total risk-based capital ratio | 13.58 | % | 13.54 | % | 13.78 | % | 13.67 | % | 13.10 | % | 13.58 | % | 13.10 | % | |||||||
| (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 | June 30, 2023 | ||||||||||||||||||||
| Income/ | Average | Average | Income/ | Average | |||||||||||||||||
| (Dollars in thousands) | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||
| Assets: | |||||||||||||||||||||
| Interest-earning deposits with other banks | 143,109 | $ | 1,865 | 5.17 | % | $ | 46,897 | $ | 512 | 4.38 | % | ||||||||||
| Obligations of state and political subdivisions* | 16 | 2.78 | 2,284 | 15 | 2.63 | ||||||||||||||||
| Other debt and equity securities | 3,540 | 2.79 | 516,711 | 3,512 | 2.73 | ||||||||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 712 | 6.99 | 43,783 | 781 | 7.15 | ||||||||||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 6,133 | 3.53 | 609,675 | 4,820 | 3.17 | ||||||||||||||||
| Commercial, financial, and agricultural loans | 17,545 | 6.99 | 1,005,499 | 16,919 | 6.75 | ||||||||||||||||
| Real estate—commercial and construction loans | 49,548 | 5.53 | 3,445,431 | 45,960 | 5.35 | ||||||||||||||||
| Real estate—residential loans | 18,270 | 4.70 | 1,483,478 | 17,216 | 4.65 | ||||||||||||||||
| Loans to individuals | 525 | 7.85 | 26,794 | 479 | 7.17 | ||||||||||||||||
| Municipal loans and leases* | 2,430 | 4.11 | 234,940 | 2,388 | 4.08 | ||||||||||||||||
| Lease financings | 2,928 | 6.30 | 176,200 | 2,659 | 6.05 | ||||||||||||||||
| Gross loans and leases | 91,246 | 5.54 | 6,372,342 | 85,621 | 5.39 | ||||||||||||||||
| Total interest-earning assets | 97,379 | 5.35 | 6,982,017 | 90,441 | 5.20 | ||||||||||||||||
| Cash and due from banks | 58,675 | ||||||||||||||||||||
| Allowance for credit losses, loans and leases | (81,641) | ||||||||||||||||||||
| Premises and equipment, net | 52,540 | ||||||||||||||||||||
| Operating lease right-of-use assets | 31,200 | ||||||||||||||||||||
| Other assets | 398,007 | ||||||||||||||||||||
| Total assets | 7,693,983 | $ | 7,440,798 | ||||||||||||||||||
| Liabilities: | |||||||||||||||||||||
| Interest-bearing checking deposits | 1,070,063 | $ | 6,703 | 2.49 | % | $ | 1,011,889 | $ | 5,392 | 2.14 | % | ||||||||||
| Money market savings | 17,850 | 4.30 | 1,460,899 | 14,089 | 3.87 | ||||||||||||||||
| Regular savings | 861 | 0.41 | 888,680 | 845 | 0.38 | ||||||||||||||||
| Time deposits | 11,668 | 4.06 | 823,665 | 7,141 | 3.48 | ||||||||||||||||
| Total time and interest-bearing deposits | 37,082 | 3.14 | 4,185,133 | 27,467 | 2.63 | ||||||||||||||||
| Short-term borrowings | 1,117 | 4.76 | 255,090 | 3,249 | 5.11 | ||||||||||||||||
| Long-term debt | 3,036 | 3.76 | 301,593 | 2,811 | 3.74 | ||||||||||||||||
| Subordinated notes | 2,281 | 6.09 | 148,443 | 2,282 | 6.17 | ||||||||||||||||
| Total borrowings | 6,434 | 4.55 | 705,126 | 8,342 | 4.75 | ||||||||||||||||
| Total interest-bearing liabilities | 43,516 | 3.29 | 4,890,259 | 35,809 | 2.94 | ||||||||||||||||
| Noninterest-bearing deposits | 1,659,449 | ||||||||||||||||||||
| Operating lease liabilities | 34,415 | ||||||||||||||||||||
| Accrued expenses and other liabilities | 49,966 | ||||||||||||||||||||
| Total liabilities | 6,634,089 | ||||||||||||||||||||
| Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 2.54 | 6,549,708 | 2.19 | ||||||||||||||||||
| Shareholders' Equity: | |||||||||||||||||||||
| Common stock | 157,784 | ||||||||||||||||||||
| Additional paid-in capital | 298,788 | ||||||||||||||||||||
| Retained earnings and other equity | 350,137 | ||||||||||||||||||||
| Total shareholders' equity | 806,709 | ||||||||||||||||||||
| Total liabilities and shareholders' equity | 7,693,983 | $ | 7,440,798 | ||||||||||||||||||
| Net interest income | $ | 53,863 | $ | 54,632 | |||||||||||||||||
| Net interest spread | 2.06 | 2.26 | |||||||||||||||||||
| Effect of net interest-free funding sources | 0.90 | 0.88 | |||||||||||||||||||
| Net interest margin | 2.96 | % | 3.14 | % | |||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | % | 142.77 | % | ||||||||||||||||||
| *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 563 thousand and 668 thousand for the three months ended September 30, 2023 and June 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 September 30, 2023 and June 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 | 143,109 | $ | 1,865 | 5.17 | % | $ | 49,476 | $ | 252 | 2.02 | % |
| U.S. government obligations | — | — | 565 | 3 | 2.11 | ||||||
| Obligations of state and political subdivisions* | 16 | 2.78 | 2,308 | 18 | 3.09 | ||||||
| Other debt and equity securities | 3,540 | 2.79 | 514,462 | 3,010 | 2.32 | ||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 712 | 6.99 | 28,368 | 435 | 6.08 | ||||||
| Total interest-earning deposits, investments and other interest-earning assets | 6,133 | 3.53 | 595,179 | 3,718 | 2.48 | ||||||
| Commercial, financial, and agricultural loans | 17,545 | 6.99 | 981,303 | 12,036 | 4.87 | ||||||
| Real estate—commercial and construction loans | 49,548 | 5.53 | 3,105,821 | 34,100 | 4.36 | ||||||
| Real estate—residential loans | 18,270 | 4.70 | 1,256,509 | 12,492 | 3.94 | ||||||
| Loans to individuals | 525 | 7.85 | 27,197 | 381 | 5.56 | ||||||
| Municipal loans and leases* | 2,430 | 4.11 | 235,433 | 2,432 | 4.10 | ||||||
| Lease financings | 2,928 | 6.30 | 145,856 | 2,195 | 5.97 | ||||||
| Gross loans and leases | 91,246 | 5.54 | 5,752,119 | 63,636 | 4.39 | ||||||
| Total interest-earning assets | 97,379 | 5.35 | 6,347,298 | 67,354 | 4.21 | ||||||
| Cash and due from banks | 62,930 | ||||||||||
| Allowance for credit losses, loans and leases | (72,355) | ||||||||||
| Premises and equipment, net | 50,476 | ||||||||||
| Operating lease right-of-use assets | 30,740 | ||||||||||
| Other assets | 378,377 | ||||||||||
| Total assets | 7,693,983 | $ | 6,797,466 | ||||||||
| Liabilities: | |||||||||||
| Interest-bearing checking deposits | 1,070,063 | $ | 6,703 | 2.49 | % | $ | 881,395 | $ | 1,251 | 0.56 | % |
| Money market savings | 17,850 | 4.30 | 1,246,795 | 3,709 | 1.18 | ||||||
| Regular savings | 861 | 0.41 | 1,086,191 | 302 | 0.11 | ||||||
| Time deposits | 11,668 | 4.06 | 416,539 | 1,189 | 1.13 | ||||||
| Total time and interest-bearing deposits | 37,082 | 3.14 | 3,630,920 | 6,451 | 0.70 | ||||||
| Short-term borrowings | 1,117 | 4.76 | 104,453 | 524 | 1.99 | ||||||
| Long-term debt | 3,036 | 3.76 | 95,000 | 324 | 1.35 | ||||||
| Subordinated notes | 2,281 | 6.09 | 99,065 | 1,328 | 5.32 | ||||||
| Total borrowings | 6,434 | 4.55 | 298,518 | 2,176 | 2.89 | ||||||
| Total interest-bearing liabilities | 43,516 | 3.29 | 3,929,438 | 8,627 | 0.87 | ||||||
| Noninterest-bearing deposits | 2,014,371 | ||||||||||
| Operating lease liabilities | 33,786 | ||||||||||
| Accrued expenses and other liabilities | 46,772 | ||||||||||
| Total liabilities | 6,024,367 | ||||||||||
| Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 2.54 | 5,943,809 | 0.58 | ||||||||
| Shareholders' Equity: | |||||||||||
| Common stock | 157,784 | ||||||||||
| Additional paid-in capital | 299,135 | ||||||||||
| Retained earnings and other equity | 316,180 | ||||||||||
| Total shareholders' equity | 773,099 | ||||||||||
| Total liabilities and shareholders' equity | 7,693,983 | $ | 6,797,466 | ||||||||
| Net interest income | $ | 53,863 | $ | 58,727 | |||||||
| Net interest spread | 2.06 | 3.34 | |||||||||
| Effect of net interest-free funding sources | 0.90 | 0.33 | |||||||||
| Net interest margin | 2.96 | % | 3.67 | % | |||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | % | 161.53 | % | ||||||||
| *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 563 thousand and 498 thousand for the three months ended September 30, 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 September 30, 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 | 79,630 | $ | 2,856 | 4.80 | % | $ | 416,466 | $ | 1,433 | 0.46 | % |
| U.S. government obligations | — | — | 2,578 | 40 | 2.07 | ||||||
| Obligations of state and political subdivisions* | 48 | 2.81 | 2,314 | 54 | 3.12 | ||||||
| Other debt and equity securities | 10,547 | 2.76 | 513,491 | 8,076 | 2.10 | ||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 2,102 | 7.09 | 27,239 | 1,134 | 5.57 | ||||||
| Total interest-earning deposits, investments and other interest-earning assets | 15,553 | 3.29 | 962,088 | 10,737 | 1.49 | ||||||
| Commercial, financial, and agricultural loans | 50,002 | 6.70 | 949,141 | 29,390 | 4.14 | ||||||
| Real estate—commercial and construction loans | 137,929 | 5.35 | 3,005,714 | 88,447 | 3.93 | ||||||
| Real estate—residential loans | 51,216 | 4.63 | 1,180,202 | 33,132 | 3.75 | ||||||
| Loans to individuals | 1,453 | 7.23 | 26,598 | 924 | 4.64 | ||||||
| Municipal loans and leases* | 7,159 | 4.10 | 237,928 | 7,270 | 4.09 | ||||||
| Lease financings | 8,128 | 6.20 | 141,041 | 6,375 | 6.04 | ||||||
| Gross loans and leases | 255,887 | 5.38 | 5,540,624 | 165,538 | 3.99 | ||||||
| Total interest-earning assets | 271,440 | 5.19 | 6,502,712 | 176,275 | 3.62 | ||||||
| Cash and due from banks | 57,455 | ||||||||||
| Allowance for credit losses, loans and leases | (70,950) | ||||||||||
| Premises and equipment, net | 51,551 | ||||||||||
| Operating lease right-of-use assets | 30,453 | ||||||||||
| Other assets | 363,810 | ||||||||||
| Total assets | 7,453,070 | $ | 6,935,031 | ||||||||
| Liabilities: | |||||||||||
| Interest-bearing checking deposits | 980,725 | $ | 15,259 | 2.08 | % | $ | 871,393 | $ | 2,264 | 0.35 | % |
| Money market savings | 43,020 | 3.75 | 1,397,220 | 6,165 | 0.59 | ||||||
| Regular savings | 2,375 | 0.35 | 1,059,644 | 777 | 0.10 | ||||||
| Time deposits | 22,231 | 3.51 | 447,497 | 3,722 | 1.11 | ||||||
| Total time and interest-bearing deposits | 82,885 | 2.60 | 3,775,754 | 12,928 | 0.46 | ||||||
| Short-term borrowings | 7,094 | 4.85 | 46,765 | 537 | 1.54 | ||||||
| Long-term debt | 6,438 | 3.51 | 95,000 | 962 | 1.35 | ||||||
| Subordinated notes | 6,844 | 6.16 | 98,989 | 3,984 | 5.38 | ||||||
| Total borrowings | 20,376 | 4.62 | 240,754 | 5,483 | 3.04 | ||||||
| Total interest-bearing liabilities | 103,261 | 2.85 | 4,016,508 | 18,411 | 0.61 | ||||||
| Noninterest-bearing deposits | 2,067,428 | ||||||||||
| Operating lease liabilities | 33,514 | ||||||||||
| Accrued expenses and other liabilities | 44,630 | ||||||||||
| Total liabilities | 6,162,080 | ||||||||||
| Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 2.11 | 6,083,936 | 0.40 | ||||||||
| Shareholders' Equity: | |||||||||||
| Common stock | 157,784 | ||||||||||
| Additional paid-in capital | 298,784 | ||||||||||
| Retained earnings and other equity | 316,383 | ||||||||||
| Total shareholders' equity | 772,951 | ||||||||||
| Total liabilities and shareholders' equity | 7,453,070 | $ | 6,935,031 | ||||||||
| Net interest income | $ | 168,179 | $ | 157,864 | |||||||
| Net interest spread | 2.34 | 3.01 | |||||||||
| Effect of net interest-free funding sources | 0.88 | 0.24 | |||||||||
| Net interest margin | 3.22 | % | 3.25 | % | |||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | % | 161.90 | % | ||||||||
| *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 1.7 million and 1.3 million for the nine months ended September 30, 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 nine months ended September 30, 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 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loan Portfolio Overview (Unaudited) | ||||||||||||||
| September 30, 2023 | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
| Industry Description | Total Outstanding Balance | % of Commercial Loan Portfolio | ||||||||||||
| CRE - Retail | $ | 466,862 | 8.9 | % | ||||||||||
| Animal Production | 359,814 | 6.8 | ||||||||||||
| CRE - Multi-family | 304,289 | 5.8 | ||||||||||||
| CRE - Office | 301,949 | 5.7 | ||||||||||||
| CRE - 1-4 Family Residential Investment | 282,333 | 5.4 | ||||||||||||
| CRE - Industrial / Warehouse | 244,107 | 4.6 | ||||||||||||
| Hotels & Motels (Accommodation) | 190,698 | 3.6 | ||||||||||||
| Nursing and Residential Care Facilities | 173,781 | 3.3 | ||||||||||||
| Specialty Trade Contractors | 164,837 | 3.1 | ||||||||||||
| Education | 157,875 | 3.0 | ||||||||||||
| Homebuilding (tract developers, remodelers) | 153,490 | 2.9 | ||||||||||||
| Motor Vehicle and Parts Dealers | 134,118 | 2.5 | ||||||||||||
| Merchant Wholesalers, Durable Goods | 125,105 | 2.4 | ||||||||||||
| CRE - Mixed-Use - Residential | 109,187 | 2.1 | ||||||||||||
| Crop Production | 101,973 | 1.9 | ||||||||||||
| Repair and Maintenance | 94,011 | 1.8 | ||||||||||||
| Private Equity & Special Purpose Entities (except 52592) | 86,549 | 1.6 | ||||||||||||
| Administrative and Support Services | 86,053 | 1.6 | ||||||||||||
| Rental and Leasing Services | 82,213 | 1.6 | ||||||||||||
| Wood Product Manufacturing | 81,813 | 1.6 | ||||||||||||
| Real Estate Lenders, Secondary Market Financing | 79,310 | 1.5 | ||||||||||||
| CRE - Mixed-Use - Commercial | 75,797 | 1.4 | ||||||||||||
| Religious Organizations, Advocacy Groups | 73,665 | 1.4 | ||||||||||||
| Fabricated Metal Product Manufacturing | 71,827 | 1.4 | ||||||||||||
| Personal and Laundry Services | 71,060 | 1.3 | ||||||||||||
| Amusement, Gambling, and Recreation Industries | 70,759 | 1.3 | ||||||||||||
| Merchant Wholesalers, Nondurable Goods | 69,919 | 1.3 | ||||||||||||
| Miniwarehouse / Self-Storage | 65,069 | 1.2 | ||||||||||||
| Food Services and Drinking Places | 63,662 | 1.2 | ||||||||||||
| Food Manufacturing | 59,897 | 1.1 | ||||||||||||
| Truck Transportation | 55,250 | 1.0 | ||||||||||||
| Industries with >$50 million in outstandings | $ | 4,457,272 | 84.6 | % | ||||||||||
| Industries with <$50 million in outstandings | $ | 811,904 | 15.4 | % | ||||||||||
| Total Commercial Loans | $ | 5,269,176 | 100.0 | % | ||||||||||
| Consumer Loans and Lease Financings | Total Outstanding Balance | |||||||||||||
| Real Estate-Residential Secured for Personal Purpose | $ | 861,122 | ||||||||||||
| Real Estate-Home Equity Secured for Personal Purpose | 176,855 | |||||||||||||
| Loans to Individuals | 27,331 | |||||||||||||
| Lease Financings | 240,474 | |||||||||||||
| Total Consumer Loans and Lease Financings | $ | 1,305,782 | ||||||||||||
| Total | $ | 6,574,958 | ||||||||||||
| Univest Financial Corporation | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Non-GAAP Reconciliation | ||||||||||||||
| September 30, 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 nine months ended, | |||||||||||||
| (Dollars in thousands) | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | 9/30/2022 | 9/30/2023 | 9/30/2022 | |||||||
| Restructuring charges (a) | $ | — | $ | 1,330 | $ | — | $ | 184 | $ | — | $ | 1,330 | $ | — |
| Tax effect of restructuring charges | — | (279) | — | (39) | — | (279) | — | |||||||
| Restructuring charges, net of tax | $ | — | $ | 1,051 | $ | — | $ | 145 | $ | — | $ | 1,051 | $ | — |
| Net income | $ | 17,016 | $ | 16,800 | $ | 21,034 | $ | 23,836 | $ | 20,801 | $ | 54,850 | $ | 54,284 |
| Amortization of intangibles, net of tax | 174 | 200 | 200 | 238 | 244 | 574 | 784 | |||||||
| Net income before amortization of intangibles | $ | 17,190 | $ | 17,000 | $ | 21,234 | $ | 24,074 | $ | 21,045 | $ | 55,424 | $ | 55,068 |
| Shareholders' equity | $ | 807,198 | $ | 805,222 | $ | 798,496 | $ | 776,500 | $ | 754,187 | $ | 807,198 | $ | 754,187 |
| Goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||||
| Other intangibles (b) | (2,558) | (2,767) | (3,054) | (3,251) | (3,485) | (2,558) | (3,485) | |||||||
| Tangible common equity | $ | 629,130 | $ | 626,945 | $ | 619,932 | $ | 597,739 | $ | 575,192 | $ | 629,130 | $ | 575,192 |
| Total assets | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 | $ | 7,222,016 | $ | 6,907,397 | $ | 7,828,066 | $ | 6,907,397 |
| Goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||||
| Other intangibles (b) | (2,558) | (2,767) | (3,054) | (3,251) | (3,485) | (2,558) | (3,485) | |||||||
| Tangible assets | $ | 7,649,998 | $ | 7,421,873 | $ | 7,180,427 | $ | 7,043,255 | $ | 6,728,402 | $ | 7,649,998 | $ | 6,728,402 |
| Average shareholders' equity | $ | 811,515 | $ | 806,709 | $ | 789,153 | $ | 767,192 | $ | 773,099 | $ | 802,541 | $ | 772,951 |
| Average goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||||
| Average other intangibles (b) | (2,680) | (2,924) | (3,137) | (3,355) | (3,550) | (2,913) | (3,808) | |||||||
| Average tangible common equity | $ | 633,325 | $ | 628,275 | $ | 610,506 | $ | 588,327 | $ | 594,039 | $ | 624,118 | $ | 593,633 |
| (a) Associated with financial service center optimization and headcount rationalization expense management strategies | ||||||||||||||
| (b) Amount does not include mortgage servicing rights |