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
June 30, 2023 was $16.8 million, or $0.57 diluted earnings per
share, compared to net income of $13.2 million, or $0.45 diluted
earnings per share, for the quarter ended June 30, 2022.
One-Time
ItemsThe financial results for the quarter
included a $1.3 million ($1.1 million after-tax), or $0.04 diluted
earnings per share, restructuring charge associated with the
Corporation's financial service center optimization and expense
management strategies deployed in response to macroeconomic
headwinds. These strategies will result in a net reduction of three
locations and a headcount rationalization, primarily concentrated
within certain commercial real estate and residential mortgage
lending teams. Estimated annualized cost savings from these
initiatives is approximately $5.4 million. The financial results
for the quarter also included a $250 thousand ($198 thousand
after-tax) loss associated with the planned sale of a $19.7 million
interest in a shared national credit.
LoansGross loans and leases
increased $222.4 million, or 3.6% (14.4% annualized), from
March 31, 2023 and $339.0 million, or 5.5% (11.0% annualized),
from December 31, 2022. The increase in both periods was
primarily due to increases in commercial real estate, construction,
residential mortgage loans, and lease financings.
Deposits and LiquidityTotal
deposits increased $152.7 million, or 2.6% (10.5% annualized), from
March 31, 2023, primarily due to increases in brokered
deposits partially offset by decreases in commercial and consumer
deposits and public funds. Total deposits increased $73.9 million,
or 1.2% (2.4% annualized), 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 26.4% of total deposits at
June 30, 2023, down from 30.8% at March 31, 2023. At June 30,
2023, unprotected deposits, which excludes insured accounts,
internal accounts, and collateralized trust accounts, represented
23.3% of total deposits, down from 27.2% at March 31, 2023.
The Corporation and its subsidiaries had
committed borrowing capacity of $3.2 billion at June 30, 2023, of
which $2.0 billion was available. The Corporation and its
subsidiaries also maintained uncommitted funding sources from
correspondent banks of $410.0 million at June 30, 2023, of
which $285.0 million was unused. 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
MarginNet interest income of $54.3 million for the three
months ended June 30, 2023 decreased $5.0 million,
or 8.4%, from the three months ended March 31, 2023, and
increased $2.9 million, or 5.6%, from the three months ended
June 30, 2022. The decrease in net interest income for the
three months ended June 30, 2023 compared to the prior quarter was
due to an increase in cost of funds, including long-term borrowings
as well as the continued increase in deposit cost of funds, both of
which outpaced the impact of higher asset yields and loan growth
during the quarter. The increase in net interest income for the
three months ended June 30, 2023 compared to the same period of
2022 was largely due to an increase in average loan balances and
asset yields, offset by increases in the average balance of
interest bearing liabilities and the cost of funds.
Net interest margin, on a tax-equivalent basis,
was 3.14% for the second quarter of 2023, compared to 3.58% for the
first quarter of 2023 and 3.19% for the second quarter of 2022.
Excess liquidity reduced net interest margin by approximately 23
basis points for the quarter ended June 30, 2022.
Noninterest IncomeNoninterest
income for the quarter ended June 30, 2023 was $19.8 million,
an increase of $835 thousand, or 4.4%, compared to the second
quarter of 2022.
Insurance commission and fee income increased
$479 thousand, or 10.3%, for the quarter ended June 30, 2023,
primarily due to an increase in premiums for commercial lines.
Other income increased $481 thousand, or 64.9%, for the quarter
ended June 30, 2023, primarily due to $292 thousand of other
real estate owned ("OREO") income related to a commercial real
estate loan transferred to OREO during the second quarter of 2022
and an increase of $232 thousand in fees on risk participation
agreements for interest rate swaps. These increases were offset by
a loss of $250 thousand on the planned sale of an interest in a
shared national credit, as previously discussed.
Noninterest ExpenseNoninterest
expense for the quarter ended June 30, 2023 was $49.8 million,
an increase of $2.4 million, or 5.1%, compared to the second
quarter of 2022. Excluding restructuring charges, expenses
increased $1.1 million, or 2.3%.
Salaries, benefits and commissions increased
$742 thousand, or 2.5%, for the quarter ended June 30, 2023.
This increase reflects our expansion into Maryland and Western
Pennsylvania and annual merit increases offset by a reduction in
incentive compensation. Data processing expenses increased $429
thousand, or 11.6%, for the quarter ended June 30, 2023,
primarily due to our investments in technology in recent years and
general price increases incurred in the second half of 2022.
Restructuring charges increased $1.3 million, as previously
discussed. Other expense increased $757 thousand, or 11.8%, for the
quarter ended June 30, 2023, primarily due to increases in
retirement plan costs of $410 thousand, which is driven by the
current interest rate environment. Professional fees decreased $1.2
million, or 41.3%, for the quarter ended June 30, 2023,
primarily due to consultant fees incurred in the second quarter of
2022 related to our digital transformation initiative.
Tax Provision The effective
income tax rate was 19.8% for the quarters ended June 30, 2023
and 2022. The effective tax rates for the three months ended
June 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
LossesNonperforming assets were $34.5 million at
June 30, 2023, compared to $32.4 million at March 31,
2023 and $34.7 million at June 30, 2022. During the quarter, a
$5.8 million construction loan was placed on nonaccrual status and
a $2.5 million nonaccrual commercial loan was paid off. Based on
the value of the underlying collateral, an individual reserve was
not recorded for the $5.8 million construction loan as of June 30,
2023.
Net loan and lease charge-offs were $512
thousand for the three months ended June 30, 2023 compared to
$2.8 million and $1.7 million for the three months ended
March 31, 2023 and June 30, 2022, respectively.
The provision for credit losses was $3.4 million
for the three months ended June 30, 2023 compared to $3.4
million and $6.7 million for the three months ended March 31,
2023 and June 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 June 30, 2023 and March 31,
2023, and 1.27% at June 30, 2022.
DividendOn July 26, 2023,
Univest declared a quarterly cash dividend of $0.21 per share to be
paid on August 23, 2023 to shareholders of record as of August 9,
2023.
Conference CallUnivest will
host a conference call to discuss second quarter 2023 results on
Thursday, July 27, 2023 at 9:00 a.m. EST. Participants may
preregister at https://conferencingportals.com/event/QPDnglhR. The
general public can access the call by dialing 1-888-330-2398; using
Conference ID 38917. A replay of the conference call will be
available through August 26, 2023 by dialing 1-800-700-2030; using
Conference ID 38917.
About Univest Financial
CorporationUnivest Financial Corporation (UVSP), including
its wholly-owned subsidiary Univest Bank and Trust Co., Member
FDIC, has approximately $7.6 billion in assets and $4.5 billion in
assets under management and supervision through its Wealth
Management lines of business at June 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) potential
recessionary conditions 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) |
June 30, 2023 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (Period End) |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
80,795 |
|
|
$ |
71,215 |
|
|
$ |
84,176 |
|
|
$ |
65,859 |
|
|
$ |
59,590 |
|
|
|
|
|
Interest-earning deposits with other banks |
|
|
59,616 |
|
|
|
67,109 |
|
|
|
68,623 |
|
|
|
47,451 |
|
|
|
35,187 |
|
|
|
|
|
Cash and cash equivalents |
|
|
140,411 |
|
|
|
138,324 |
|
|
|
152,799 |
|
|
|
113,310 |
|
|
|
94,777 |
|
|
|
|
|
Investment securities held-to-maturity |
|
|
153,509 |
|
|
|
151,347 |
|
|
|
154,727 |
|
|
|
159,170 |
|
|
|
159,808 |
|
|
|
|
|
Investment securities available for sale, net of allowance for
credit losses |
|
|
356,164 |
|
|
|
367,656 |
|
|
|
350,256 |
|
|
|
347,479 |
|
|
|
351,382 |
|
|
|
|
|
Investments in equity securities |
|
|
3,443 |
|
|
|
3,105 |
|
|
|
2,579 |
|
|
|
2,994 |
|
|
|
2,934 |
|
|
|
|
|
Federal Home Loan Bank, Federal Reserve Bank and other stock, at
cost |
|
|
42,811 |
|
|
|
43,792 |
|
|
|
33,841 |
|
|
|
29,475 |
|
|
|
29,116 |
|
|
|
|
|
Loans held for sale |
|
|
29,526 |
|
|
|
5,425 |
|
|
|
5,037 |
|
|
|
9,087 |
|
|
|
8,352 |
|
|
|
|
|
Loans and leases held for investment |
|
|
6,462,238 |
|
|
|
6,239,804 |
|
|
|
6,123,230 |
|
|
|
5,849,259 |
|
|
|
5,661,777 |
|
|
|
|
|
Less: Allowance for credit losses, loans and leases |
|
|
(82,709 |
) |
|
|
(80,034 |
) |
|
|
(79,004 |
) |
|
|
(74,929 |
) |
|
|
(72,011 |
) |
|
|
|
|
Net loans and leases held for investment |
|
|
6,379,529 |
|
|
|
6,159,770 |
|
|
|
6,044,226 |
|
|
|
5,774,330 |
|
|
|
5,589,766 |
|
|
|
|
|
Premises and equipment, net |
|
|
52,058 |
|
|
|
52,334 |
|
|
|
50,939 |
|
|
|
50,533 |
|
|
|
50,080 |
|
|
|
|
|
Operating lease right-of-use assets |
|
|
30,237 |
|
|
|
31,663 |
|
|
|
30,059 |
|
|
|
30,654 |
|
|
|
30,929 |
|
|
|
|
|
Goodwill |
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
|
|
Other intangibles, net of accumulated amortization |
|
|
10,923 |
|
|
|
11,044 |
|
|
|
11,384 |
|
|
|
11,650 |
|
|
|
11,728 |
|
|
|
|
|
Bank owned life insurance |
|
|
129,715 |
|
|
|
128,926 |
|
|
|
120,297 |
|
|
|
120,035 |
|
|
|
120,103 |
|
|
|
|
|
Accrued interest and other assets |
|
|
96,314 |
|
|
|
90,095 |
|
|
|
90,362 |
|
|
|
83,170 |
|
|
|
76,328 |
|
|
|
|
|
Total assets |
|
$ |
7,600,150 |
|
|
$ |
7,358,991 |
|
|
$ |
7,222,016 |
|
|
$ |
6,907,397 |
|
|
$ |
6,700,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
1,582,767 |
|
|
$ |
1,799,225 |
|
|
$ |
2,047,263 |
|
|
$ |
1,968,422 |
|
|
$ |
2,062,538 |
|
|
|
|
|
Interest-bearing deposits: |
|
|
4,404,635 |
|
|
|
4,035,432 |
|
|
|
3,866,263 |
|
|
|
3,818,554 |
|
|
|
3,500,510 |
|
|
|
|
|
Total deposits |
|
|
5,987,402 |
|
|
|
5,834,657 |
|
|
|
5,913,526 |
|
|
|
5,786,976 |
|
|
|
5,563,048 |
|
|
|
|
|
Short-term borrowings |
|
|
244,666 |
|
|
|
271,881 |
|
|
|
197,141 |
|
|
|
80,711 |
|
|
|
97,606 |
|
|
|
|
|
Long-term debt |
|
|
320,000 |
|
|
|
220,000 |
|
|
|
95,000 |
|
|
|
95,000 |
|
|
|
95,000 |
|
|
|
|
|
Subordinated notes |
|
|
148,510 |
|
|
|
148,385 |
|
|
|
148,260 |
|
|
|
99,107 |
|
|
|
99,030 |
|
|
|
|
|
Operating lease liabilities |
|
|
33,428 |
|
|
|
34,846 |
|
|
|
33,153 |
|
|
|
33,718 |
|
|
|
33,951 |
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
60,922 |
|
|
|
50,726 |
|
|
|
58,436 |
|
|
|
57,698 |
|
|
|
48,253 |
|
|
|
|
|
Total liabilities |
|
|
6,794,928 |
|
|
|
6,560,495 |
|
|
|
6,445,516 |
|
|
|
6,153,210 |
|
|
|
5,936,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
299,212 |
|
|
|
298,167 |
|
|
|
300,808 |
|
|
|
299,791 |
|
|
|
298,800 |
|
|
|
|
|
Retained earnings |
|
|
453,806 |
|
|
|
443,493 |
|
|
|
428,637 |
|
|
|
410,942 |
|
|
|
396,295 |
|
|
|
|
|
Accumulated other comprehensive loss, net of tax benefit |
|
|
(61,034 |
) |
|
|
(55,550 |
) |
|
|
(62,104 |
) |
|
|
(64,985 |
) |
|
|
(42,781 |
) |
|
|
|
|
Treasury stock, at cost |
|
|
(44,546 |
) |
|
|
(45,398 |
) |
|
|
(48,625 |
) |
|
|
(49,345 |
) |
|
|
(46,173 |
) |
|
|
|
|
Total shareholders’ equity |
|
|
805,222 |
|
|
|
798,496 |
|
|
|
776,500 |
|
|
|
754,187 |
|
|
|
763,925 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
7,600,150 |
|
|
$ |
7,358,991 |
|
|
$ |
7,222,016 |
|
|
$ |
6,907,397 |
|
|
$ |
6,700,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the six months ended, |
Balance Sheet (Average) |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/23 |
|
06/30/22 |
Assets |
|
$ |
7,440,798 |
|
|
$ |
7,219,211 |
|
|
$ |
7,019,381 |
|
|
$ |
6,797,466 |
|
|
$ |
6,962,401 |
|
|
$ |
7,330,616 |
|
$ |
7,004,954 |
Investment securities, net of allowance for credit losses |
|
|
518,995 |
|
|
|
515,880 |
|
|
|
505,717 |
|
|
|
517,335 |
|
|
|
515,741 |
|
|
|
517,446 |
|
|
518,917 |
Loans and leases, gross |
|
|
6,372,342 |
|
|
|
6,164,890 |
|
|
|
5,979,581 |
|
|
|
5,752,119 |
|
|
|
5,520,580 |
|
|
|
6,269,190 |
|
|
5,433,125 |
Deposits |
|
|
5,844,582 |
|
|
|
5,834,415 |
|
|
|
5,837,823 |
|
|
|
5,645,291 |
|
|
|
5,903,173 |
|
|
|
5,839,526 |
|
|
5,943,769 |
Shareholders' equity |
|
|
806,709 |
|
|
|
789,153 |
|
|
|
767,192 |
|
|
|
773,099 |
|
|
|
771,410 |
|
|
|
797,980 |
|
|
772,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univest Financial Corporation |
Consolidated Summary of Loans by Type and Asset Quality
Data (Unaudited) |
June 30, 2023 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Major Loan and Lease Categories (Period
End) |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
|
|
|
Commercial, financial and agricultural |
|
$ |
1,039,265 |
|
|
$ |
1,032,753 |
|
|
$ |
1,088,928 |
|
|
$ |
1,054,940 |
|
|
$ |
1,033,712 |
|
|
|
|
|
Real estate-commercial |
|
|
3,221,993 |
|
|
|
3,128,210 |
|
|
|
3,027,955 |
|
|
|
2,936,204 |
|
|
|
2,870,286 |
|
|
|
|
|
Real estate-construction |
|
|
413,404 |
|
|
|
376,569 |
|
|
|
381,811 |
|
|
|
329,915 |
|
|
|
319,449 |
|
|
|
|
|
Real estate-residential secured for business purpose |
|
|
517,521 |
|
|
|
498,505 |
|
|
|
478,254 |
|
|
|
443,837 |
|
|
|
419,652 |
|
|
|
|
|
Real estate-residential secured for personal purpose |
|
|
832,632 |
|
|
|
779,557 |
|
|
|
730,395 |
|
|
|
685,771 |
|
|
|
629,144 |
|
|
|
|
|
Real estate-home equity secured for personal purpose |
|
|
175,090 |
|
|
|
172,073 |
|
|
|
176,699 |
|
|
|
175,843 |
|
|
|
168,536 |
|
|
|
|
|
Loans to individuals |
|
|
25,544 |
|
|
|
28,656 |
|
|
|
27,873 |
|
|
|
26,679 |
|
|
|
27,061 |
|
|
|
|
|
Lease financings |
|
|
236,789 |
|
|
|
223,481 |
|
|
|
211,315 |
|
|
|
196,070 |
|
|
|
193,937 |
|
|
|
|
|
Total loans and leases held for investment, net of deferred
income |
|
|
6,462,238 |
|
|
|
6,239,804 |
|
|
|
6,123,230 |
|
|
|
5,849,259 |
|
|
|
5,661,777 |
|
|
|
|
|
Less: Allowance for credit losses, loans and leases |
|
|
(82,709 |
) |
|
|
(80,034 |
) |
|
|
(79,004 |
) |
|
|
(74,929 |
) |
|
|
(72,011 |
) |
|
|
|
|
Net loans and leases held for investment |
|
$ |
6,379,529 |
|
|
$ |
6,159,770 |
|
|
$ |
6,044,226 |
|
|
$ |
5,774,330 |
|
|
$ |
5,589,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data (Period End) |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
|
|
|
Nonaccrual loans and leases |
|
$ |
15,087 |
|
|
$ |
11,362 |
|
|
$ |
13,353 |
|
|
$ |
13,620 |
|
|
$ |
13,355 |
|
|
|
|
|
Accruing loans and leases 90 days or more past due |
|
|
55 |
|
|
|
1,996 |
|
|
|
875 |
|
|
|
416 |
|
|
|
2,784 |
|
|
|
|
|
Total nonperforming loans and leases |
|
|
15,142 |
|
|
|
13,358 |
|
|
|
14,228 |
|
|
|
14,036 |
|
|
|
16,139 |
|
|
|
|
|
Other real estate owned |
|
|
19,345 |
|
|
|
19,000 |
|
|
|
19,258 |
|
|
|
18,960 |
|
|
|
18,604 |
|
|
|
|
|
Total nonperforming assets |
|
$ |
34,487 |
|
|
$ |
32,358 |
|
|
$ |
33,486 |
|
|
$ |
32,996 |
|
|
$ |
34,743 |
|
|
|
|
|
Nonaccrual loans and leases / Loans and leases held for
investment |
|
|
0.23 |
% |
|
|
0.18 |
% |
|
|
0.22 |
% |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
|
|
Nonperforming loans and leases / Loans and leases held for
investment |
|
|
0.23 |
% |
|
|
0.21 |
% |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.29 |
% |
|
|
|
|
Nonperforming assets / Total assets |
|
|
0.45 |
% |
|
|
0.44 |
% |
|
|
0.46 |
% |
|
|
0.48 |
% |
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses, loans and leases |
|
$ |
82,709 |
|
|
$ |
80,034 |
|
|
$ |
79,004 |
|
|
$ |
74,929 |
|
|
$ |
72,011 |
|
|
|
|
|
Allowance for credit losses, loans and leases / Loans and leases
held for investment |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.29 |
% |
|
|
1.28 |
% |
|
|
1.27 |
% |
|
|
|
|
Allowance for credit losses, loans and leases / Nonaccrual loans
and leases held for investment |
|
|
548.21 |
% |
|
|
704.40 |
% |
|
|
591.66 |
% |
|
|
550.14 |
% |
|
|
539.21 |
% |
|
|
|
|
Allowance for credit losses, loans and leases / Nonperforming loans
and leases held for investment |
|
|
546.22 |
% |
|
|
599.15 |
% |
|
|
555.27 |
% |
|
|
533.83 |
% |
|
|
446.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the six months ended, |
|
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/23 |
|
06/30/22 |
Net loan and lease charge-offs |
|
$ |
512 |
|
|
$ |
2,842 |
|
|
$ |
908 |
|
|
$ |
1,196 |
|
|
$ |
1,715 |
|
|
$ |
3,354 |
|
|
$ |
1,791 |
|
Net loan and lease charge-offs (annualized)/Average loans and
leases |
|
|
0.03 |
% |
|
|
0.19 |
% |
|
|
0.06 |
% |
|
|
0.08 |
% |
|
|
0.12 |
% |
|
|
0.11 |
% |
|
|
0.07 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univest Financial Corporation |
|
Consolidated Selected Financial Data
(Unaudited) |
|
June 30, 2023 |
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the six months ended, |
|
For the period: |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/23 |
|
06/30/22 |
|
Interest income |
|
$ |
90,139 |
|
$ |
83,253 |
|
$ |
77,401 |
|
$ |
66,877 |
|
$ |
56,717 |
|
$ |
173,392 |
|
$ |
107,915 |
|
Interest expense |
|
|
35,809 |
|
|
23,936 |
|
|
15,485 |
|
|
8,627 |
|
|
5,246 |
|
|
59,745 |
|
|
9,784 |
|
Net interest income |
|
|
54,330 |
|
|
59,317 |
|
|
61,916 |
|
|
58,250 |
|
|
51,471 |
|
|
113,647 |
|
|
98,131 |
|
Provision for credit losses |
|
|
3,428 |
|
|
3,387 |
|
|
5,416 |
|
|
3,558 |
|
|
6,674 |
|
|
6,815 |
|
|
3,224 |
|
Net interest income after provision for credit losses |
|
|
50,902 |
|
|
55,930 |
|
|
56,500 |
|
|
54,692 |
|
|
44,797 |
|
|
106,832 |
|
|
94,907 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fee income |
|
|
1,924 |
|
|
1,955 |
|
|
1,808 |
|
|
1,835 |
|
|
1,998 |
|
|
3,879 |
|
|
4,100 |
|
Service charges on deposit accounts |
|
|
1,725 |
|
|
1,547 |
|
|
1,575 |
|
|
1,522 |
|
|
1,574 |
|
|
3,272 |
|
|
3,078 |
|
Investment advisory commission and fee income |
|
|
4,708 |
|
|
4,752 |
|
|
5,585 |
|
|
4,199 |
|
|
4,812 |
|
|
9,460 |
|
|
9,964 |
|
Insurance commission and fee income |
|
|
5,108 |
|
|
6,487 |
|
|
4,424 |
|
|
4,442 |
|
|
4,629 |
|
|
11,595 |
|
|
10,199 |
|
Other service fee income |
|
|
3,318 |
|
|
3,076 |
|
|
3,236 |
|
|
3,124 |
|
|
3,309 |
|
|
6,394 |
|
|
6,065 |
|
Bank owned life insurance income |
|
|
789 |
|
|
767 |
|
|
1,230 |
|
|
1,153 |
|
|
705 |
|
|
1,556 |
|
|
1,404 |
|
Net gain on sales of investment securities |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
30 |
|
Net gain on mortgage banking activities |
|
|
1,039 |
|
|
625 |
|
|
436 |
|
|
817 |
|
|
1,230 |
|
|
1,664 |
|
|
3,159 |
|
Other income |
|
|
1,222 |
|
|
471 |
|
|
2,164 |
|
|
867 |
|
|
741 |
|
|
1,693 |
|
|
1,469 |
|
Total noninterest income |
|
|
19,833 |
|
|
19,680 |
|
|
20,458 |
|
|
17,959 |
|
|
18,998 |
|
|
39,513 |
|
|
39,468 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, benefits and commissions |
|
|
29,875 |
|
|
31,014 |
|
|
29,028 |
|
|
29,400 |
|
|
29,133 |
|
|
60,889 |
|
|
57,378 |
|
Net occupancy |
|
|
2,614 |
|
|
2,727 |
|
|
2,551 |
|
|
2,504 |
|
|
2,422 |
|
|
5,341 |
|
|
5,138 |
|
Equipment |
|
|
986 |
|
|
993 |
|
|
977 |
|
|
968 |
|
|
977 |
|
|
1,979 |
|
|
1,959 |
|
Data processing |
|
|
4,137 |
|
|
4,029 |
|
|
4,039 |
|
|
3,901 |
|
|
3,708 |
|
|
8,166 |
|
|
7,275 |
|
Professional fees |
|
|
1,669 |
|
|
1,941 |
|
|
1,829 |
|
|
2,521 |
|
|
2,844 |
|
|
3,610 |
|
|
4,982 |
|
Marketing and advertising |
|
|
622 |
|
|
371 |
|
|
739 |
|
|
605 |
|
|
693 |
|
|
993 |
|
|
1,118 |
|
Deposit insurance premiums |
|
|
1,116 |
|
|
1,101 |
|
|
708 |
|
|
662 |
|
|
812 |
|
|
2,217 |
|
|
1,705 |
|
Intangible expenses |
|
|
253 |
|
|
253 |
|
|
301 |
|
|
309 |
|
|
342 |
|
|
506 |
|
|
683 |
|
Restructuring charges |
|
|
1,330 |
|
|
- |
|
|
184 |
|
|
- |
|
|
- |
|
|
1,330 |
|
|
- |
|
Other expense |
|
|
7,197 |
|
|
7,100 |
|
|
6,970 |
|
|
5,795 |
|
|
6,440 |
|
|
14,297 |
|
|
12,545 |
|
Total noninterest expense |
|
|
49,799 |
|
|
49,529 |
|
|
47,326 |
|
|
46,665 |
|
|
47,371 |
|
|
99,328 |
|
|
92,783 |
|
Income before taxes |
|
|
20,936 |
|
|
26,081 |
|
|
29,632 |
|
|
25,986 |
|
|
16,424 |
|
|
47,017 |
|
|
41,592 |
|
Income tax expense |
|
|
4,136 |
|
|
5,047 |
|
|
5,796 |
|
|
5,185 |
|
|
3,258 |
|
|
9,183 |
|
|
8,109 |
|
Net income |
|
$ |
16,800 |
|
$ |
21,034 |
|
$ |
23,836 |
|
$ |
20,801 |
|
$ |
13,166 |
|
$ |
37,834 |
|
$ |
33,483 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.57 |
|
$ |
0.72 |
|
$ |
0.82 |
|
$ |
0.71 |
|
$ |
0.45 |
|
$ |
1.29 |
|
$ |
1.14 |
|
Diluted |
|
$ |
0.57 |
|
$ |
0.71 |
|
$ |
0.81 |
|
$ |
0.71 |
|
$ |
0.45 |
|
$ |
1.28 |
|
$ |
1.13 |
|
Dividends declared per share |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.42 |
|
$ |
0.41 |
|
Weighted average shares outstanding |
|
|
29,439,392 |
|
|
29,312,265 |
|
|
29,251,293 |
|
|
29,290,829 |
|
|
29,490,154 |
|
|
29,376,179 |
|
|
29,516,166 |
|
Period end shares outstanding |
|
|
29,471,124 |
|
|
29,427,696 |
|
|
29,271,915 |
|
|
29,242,451 |
|
|
29,365,775 |
|
|
29,471,124 |
|
|
29,365,775 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univest Financial Corporation |
Consolidated Selected Financial Data
(Unaudited) |
June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the six months ended, |
Profitability Ratios (annualized) |
|
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/23 |
|
06/30/22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
0.91 |
% |
|
|
1.18 |
% |
|
|
1.35 |
% |
|
|
1.21 |
% |
|
|
0.76 |
% |
|
|
1.04 |
% |
|
|
0.96 |
% |
Return on average assets, excluding restructuring charges
(1) |
|
|
0.96 |
% |
|
|
1.18 |
% |
|
|
1.36 |
% |
|
|
1.21 |
% |
|
|
0.76 |
% |
|
|
1.07 |
% |
|
|
0.96 |
% |
Return on average shareholders' equity |
|
|
8.35 |
% |
|
|
10.81 |
% |
|
|
12.33 |
% |
|
|
10.67 |
% |
|
|
6.85 |
% |
|
|
9.56 |
% |
|
|
8.74 |
% |
Return on average shareholders' equity,
excluding restructuring charges (1) |
|
|
8.88 |
% |
|
|
10.81 |
% |
|
|
12.40 |
% |
|
|
10.67 |
% |
|
|
6.85 |
% |
|
|
9.83 |
% |
|
|
8.74 |
% |
Return on average tangible common equity (1)(3) |
|
|
10.85 |
% |
|
|
14.11 |
% |
|
|
16.23 |
% |
|
|
14.06 |
% |
|
|
9.10 |
% |
|
|
12.45 |
% |
|
|
11.56 |
% |
Return on average tangible common equity,
excluding restructuring charges (1)(3) |
|
|
11.52 |
% |
|
|
14.11 |
% |
|
|
16.33 |
% |
|
|
14.06 |
% |
|
|
9.10 |
% |
|
|
12.79 |
% |
|
|
11.56 |
% |
Net interest margin (FTE) |
|
|
|
3.14 |
% |
|
|
3.58 |
% |
|
|
3.76 |
% |
|
|
3.67 |
% |
|
|
3.19 |
% |
|
|
3.35 |
% |
|
|
3.04 |
% |
Efficiency ratio (2) |
|
|
|
|
66.7 |
% |
|
|
62.2 |
% |
|
|
56.9 |
% |
|
|
60.6 |
% |
|
|
66.6 |
% |
|
|
64.4 |
% |
|
|
66.8 |
% |
Efficiency ratio, excluding restructuring charges (1)(2) |
|
|
64.9 |
% |
|
|
62.2 |
% |
|
|
56.7 |
% |
|
|
60.6 |
% |
|
|
66.6 |
% |
|
|
63.5 |
% |
|
|
66.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared to net income |
|
|
|
36.8 |
% |
|
|
29.2 |
% |
|
|
25.8 |
% |
|
|
29.6 |
% |
|
|
47.1 |
% |
|
|
32.6 |
% |
|
|
36.2 |
% |
Shareholders' equity to assets (Period End) |
|
|
10.59 |
% |
|
|
10.85 |
% |
|
|
10.75 |
% |
|
|
10.92 |
% |
|
|
11.40 |
% |
|
|
10.59 |
% |
|
|
11.40 |
% |
Tangible common equity to tangible assets (1) |
|
|
8.45 |
% |
|
|
8.63 |
% |
|
|
8.49 |
% |
|
|
8.55 |
% |
|
|
8.97 |
% |
|
|
8.45 |
% |
|
|
8.97 |
% |
Common equity book value per share |
|
$ |
27.32 |
|
|
$ |
27.13 |
|
|
$ |
26.53 |
|
|
$ |
25.79 |
|
|
$ |
26.01 |
|
|
$ |
27.32 |
|
|
$ |
26.01 |
|
Tangible common equity book value per share (1) |
|
$ |
21.27 |
|
|
$ |
21.07 |
|
|
$ |
20.42 |
|
|
$ |
19.67 |
|
|
$ |
19.91 |
|
|
$ |
21.27 |
|
|
$ |
19.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios (Period End) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
|
|
|
|
9.59 |
% |
|
|
9.71 |
% |
|
|
9.81 |
% |
|
|
9.87 |
% |
|
|
9.45 |
% |
|
|
9.59 |
% |
|
|
9.45 |
% |
Common equity tier 1 risk-based capital ratio |
|
|
10.26 |
% |
|
|
10.43 |
% |
|
|
10.37 |
% |
|
|
10.51 |
% |
|
|
10.62 |
% |
|
|
10.26 |
% |
|
|
10.62 |
% |
Tier 1 risk-based capital ratio |
|
|
|
10.26 |
% |
|
|
10.43 |
% |
|
|
10.37 |
% |
|
|
10.51 |
% |
|
|
10.62 |
% |
|
|
10.26 |
% |
|
|
10.62 |
% |
Total risk-based capital ratio |
|
|
|
13.54 |
% |
|
|
13.78 |
% |
|
|
13.67 |
% |
|
|
13.10 |
% |
|
|
13.23 |
% |
|
|
13.54 |
% |
|
|
13.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to
GAAP performance measures is included below. |
(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) |
|
|
|
For the Three Months Ended, |
|
|
|
Tax Equivalent Basis |
June 30, 2023 |
|
March 31, 2023 |
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
(Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Assets: |
|
|
|
|
|
|
|
|
Interest-earning deposits with other banks |
$ |
46,897 |
|
$ |
512 |
4.38 |
% |
$ |
47,835 |
|
$ |
479 |
4.06 |
% |
Obligations of state and political subdivisions* |
|
2,284 |
|
|
15 |
2.63 |
|
|
2,286 |
|
|
17 |
3.02 |
|
Other debt and equity securities |
|
516,711 |
|
|
3,512 |
2.73 |
|
|
513,594 |
|
|
3,495 |
2.76 |
|
Federal Home Loan Bank, Federal Reserve Bank and other stock |
|
43,783 |
|
|
781 |
7.15 |
|
|
34,742 |
|
|
609 |
7.11 |
|
Total interest-earning deposits, investments and other
interest-earning assets |
|
609,675 |
|
|
4,820 |
3.17 |
|
|
598,457 |
|
|
4,600 |
3.12 |
|
|
|
|
|
|
|
|
|
|
Commercial, financial, and agricultural loans |
|
1,005,499 |
|
|
16,919 |
6.75 |
|
|
991,876 |
|
|
15,538 |
6.35 |
|
Real estate—commercial and construction loans |
|
3,445,431 |
|
|
45,960 |
5.35 |
|
|
3,342,199 |
|
|
42,421 |
5.15 |
|
Real estate—residential loans |
|
1,483,478 |
|
|
17,216 |
4.65 |
|
|
1,408,292 |
|
|
15,730 |
4.53 |
|
Loans to individuals |
|
26,794 |
|
|
479 |
7.17 |
|
|
27,254 |
|
|
449 |
6.68 |
|
Municipal loans and leases * |
|
234,940 |
|
|
2,388 |
4.08 |
|
|
229,955 |
|
|
2,341 |
4.13 |
|
Lease financings |
|
176,200 |
|
|
2,659 |
6.05 |
|
|
165,314 |
|
|
2,541 |
6.23 |
|
Gross loans and leases |
|
6,372,342 |
|
|
85,621 |
5.39 |
|
|
6,164,890 |
|
|
79,020 |
5.20 |
|
Total interest-earning assets |
|
6,982,017 |
|
|
90,441 |
5.20 |
|
|
6,763,347 |
|
|
83,620 |
5.01 |
|
Cash and due from banks |
|
58,675 |
|
|
|
|
|
58,035 |
|
|
|
|
Allowance for credit losses, loans and leases |
|
(81,641 |
) |
|
|
|
|
(79,977 |
) |
|
|
|
Premises and equipment, net |
|
52,540 |
|
|
|
|
|
51,583 |
|
|
|
|
Operating lease right-of-use assets |
|
31,200 |
|
|
|
|
|
31,303 |
|
|
|
|
Other assets |
|
398,007 |
|
|
|
|
|
394,920 |
|
|
|
|
Total assets |
$ |
7,440,798 |
|
|
|
|
$ |
7,219,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
1,011,889 |
|
$ |
5,392 |
2.14 |
% |
$ |
857,891 |
|
$ |
3,164 |
1.50 |
% |
Money market savings |
|
1,460,899 |
|
|
14,089 |
3.87 |
|
|
1,489,129 |
|
|
11,081 |
3.02 |
|
Regular savings |
|
888,680 |
|
|
845 |
0.38 |
|
|
985,716 |
|
|
669 |
0.28 |
|
Time deposits |
|
823,665 |
|
|
7,141 |
3.48 |
|
|
566,308 |
|
|
3,422 |
2.45 |
|
Total time and interest-bearing deposits |
|
4,185,133 |
|
|
27,467 |
2.63 |
|
|
3,899,044 |
|
|
18,336 |
1.91 |
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
255,090 |
|
|
3,249 |
5.11 |
|
|
240,318 |
|
|
2,728 |
4.60 |
|
Long-term debt |
|
301,593 |
|
|
2,811 |
3.74 |
|
|
112,222 |
|
|
591 |
2.14 |
|
Subordinated notes |
|
148,443 |
|
|
2,282 |
6.17 |
|
|
148,319 |
|
|
2,281 |
6.24 |
|
Total borrowings |
|
705,126 |
|
|
8,342 |
4.75 |
|
|
500,859 |
|
|
5,600 |
4.53 |
|
Total interest-bearing liabilities |
|
4,890,259 |
|
|
35,809 |
2.94 |
|
|
4,399,903 |
|
|
23,936 |
2.21 |
|
Noninterest-bearing deposits |
|
1,659,449 |
|
|
|
|
|
1,935,371 |
|
|
|
|
Operating lease liabilities |
|
34,415 |
|
|
|
|
|
34,438 |
|
|
|
|
Accrued expenses and other liabilities |
|
49,966 |
|
|
|
|
|
60,346 |
|
|
|
|
Total liabilities |
|
6,634,089 |
|
|
|
|
|
6,430,058 |
|
|
|
|
Total interest-bearing liabilities and noninterest-bearing deposits
("Cost of Funds") |
|
6,549,708 |
|
|
2.19 |
|
|
6,335,274 |
|
|
1.53 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
Additional paid-in capital |
|
298,788 |
|
|
|
|
|
300,293 |
|
|
|
|
Retained earnings and other equity |
|
350,137 |
|
|
|
|
|
331,076 |
|
|
|
|
Total shareholders' equity |
|
806,709 |
|
|
|
|
|
789,153 |
|
|
|
|
Total liabilities and shareholders' equity |
$ |
7,440,798 |
|
|
|
|
$ |
7,219,211 |
|
|
|
|
Net interest income |
|
$ |
54,632 |
|
|
|
$ |
59,684 |
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
2.26 |
|
|
|
2.80 |
|
Effect of net interest-free funding sources |
|
|
0.88 |
|
|
|
0.78 |
|
Net interest margin |
|
|
3.14 |
% |
|
|
3.58 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
142.77 |
% |
|
|
|
|
153.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* 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
$668 thousand and $465 thousand for the three months ended June 30,
2023 and March 31, 2023, 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 June 30, 2023 and March 31, 2023 have been
calculated using the Corporation’s federal applicable rate of
21.0%. |
|
|
|
|
|
|
|
|
|
Univest Financial Corporation |
|
Average Balances and Interest Rates
(Unaudited) |
|
|
|
For the Three Months Ended June 30, |
|
|
|
Tax Equivalent Basis |
|
|
2023 |
|
|
|
|
2022 |
|
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
(Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Assets: |
|
|
|
|
|
|
|
|
Interest-earning deposits with other banks |
$ |
46,897 |
|
$ |
512 |
4.38 |
% |
$ |
474,260 |
|
$ |
824 |
0.70 |
% |
U.S. government obligations |
|
- |
|
|
- |
- |
|
|
2,000 |
|
|
11 |
2.21 |
|
Obligations of state and political subdivisions* |
|
2,284 |
|
|
15 |
2.63 |
|
|
2,302 |
|
|
17 |
2.96 |
|
Other debt and equity securities |
|
516,711 |
|
|
3,512 |
2.73 |
|
|
511,439 |
|
|
2,727 |
2.14 |
|
Federal Home Loan Bank, Federal Reserve Bank and other stock |
|
43,783 |
|
|
781 |
7.15 |
|
|
26,221 |
|
|
344 |
5.26 |
|
Total interest-earning deposits, investments and other
interest-earning assets |
|
609,675 |
|
|
4,820 |
3.17 |
|
|
1,016,222 |
|
|
3,923 |
1.55 |
|
|
|
|
|
|
|
|
|
|
Commercial, financial, and agricultural loans |
|
1,005,499 |
|
|
16,919 |
6.75 |
|
|
945,490 |
|
|
9,192 |
3.90 |
|
Real estate—commercial and construction loans |
|
3,445,431 |
|
|
45,960 |
5.35 |
|
|
3,004,509 |
|
|
28,527 |
3.81 |
|
Real estate—residential loans |
|
1,483,478 |
|
|
17,216 |
4.65 |
|
|
1,166,201 |
|
|
10,758 |
3.70 |
|
Loans to individuals |
|
26,794 |
|
|
479 |
7.17 |
|
|
26,782 |
|
|
305 |
4.57 |
|
Municipal loans and leases* |
|
234,940 |
|
|
2,388 |
4.08 |
|
|
235,922 |
|
|
2,404 |
4.09 |
|
Lease financings |
|
176,200 |
|
|
2,659 |
6.05 |
|
|
141,676 |
|
|
2,105 |
5.96 |
|
Gross loans and leases |
|
6,372,342 |
|
|
85,621 |
5.39 |
|
|
5,520,580 |
|
|
53,291 |
3.87 |
|
Total interest-earning assets |
|
6,982,017 |
|
|
90,441 |
5.20 |
|
|
6,536,802 |
|
|
57,214 |
3.51 |
|
Cash and due from banks |
|
58,675 |
|
|
|
|
|
55,634 |
|
|
|
|
Allowance for credit losses, loans and leases |
|
(81,641 |
) |
|
|
|
|
(68,426 |
) |
|
|
|
Premises and equipment, net |
|
52,540 |
|
|
|
|
|
50,266 |
|
|
|
|
Operating lease right-of-use assets |
|
31,200 |
|
|
|
|
|
30,222 |
|
|
|
|
Other assets |
|
398,007 |
|
|
|
|
|
357,903 |
|
|
|
|
Total assets |
$ |
7,440,798 |
|
|
|
|
$ |
6,962,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
1,011,889 |
|
$ |
5,392 |
2.14 |
% |
$ |
851,324 |
|
$ |
570 |
0.27 |
% |
Money market savings |
|
1,460,899 |
|
|
14,089 |
3.87 |
|
|
1,405,536 |
|
|
1,552 |
0.44 |
|
Regular savings |
|
888,680 |
|
|
845 |
0.38 |
|
|
1,070,480 |
|
|
237 |
0.09 |
|
Time deposits |
|
823,665 |
|
|
7,141 |
3.48 |
|
|
452,989 |
|
|
1,227 |
1.09 |
|
Total time and interest-bearing deposits |
|
4,185,133 |
|
|
27,467 |
2.63 |
|
|
3,780,329 |
|
|
3,586 |
0.38 |
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
255,090 |
|
|
3,249 |
5.11 |
|
|
17,253 |
|
|
11 |
0.26 |
|
Long-term debt |
|
301,593 |
|
|
2,811 |
3.74 |
|
|
95,000 |
|
|
321 |
1.36 |
|
Subordinated notes |
|
148,443 |
|
|
2,282 |
6.17 |
|
|
98,988 |
|
|
1,328 |
5.38 |
|
Total borrowings |
|
705,126 |
|
|
8,342 |
4.75 |
|
|
211,241 |
|
|
1,660 |
3.15 |
|
Total interest-bearing liabilities |
|
4,890,259 |
|
|
35,809 |
2.94 |
|
|
3,991,570 |
|
|
5,246 |
0.53 |
|
Noninterest-bearing deposits |
|
1,659,449 |
|
|
|
|
|
2,122,844 |
|
|
|
|
Operating lease liabilities |
|
34,415 |
|
|
|
|
|
33,300 |
|
|
|
|
Accrued expenses and other liabilities |
|
49,966 |
|
|
|
|
|
43,277 |
|
|
|
|
Total liabilities |
|
6,634,089 |
|
|
|
|
|
6,190,991 |
|
|
|
|
Total interest-bearing liabilities and noninterest-bearing deposits
("Cost of Funds") |
|
6,549,708 |
|
|
2.19 |
|
|
6,114,414 |
|
|
0.34 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
Additional paid-in capital |
|
298,788 |
|
|
|
|
|
298,241 |
|
|
|
|
Retained earnings and other equity |
|
350,137 |
|
|
|
|
|
315,385 |
|
|
|
|
Total shareholders' equity |
|
806,709 |
|
|
|
|
|
771,410 |
|
|
|
|
Total liabilities and shareholders' equity |
$ |
7,440,798 |
|
|
|
|
$ |
6,962,401 |
|
|
|
|
Net interest income |
|
$ |
54,632 |
|
|
|
$ |
51,968 |
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
2.26 |
|
|
|
2.98 |
|
Effect of net interest-free funding sources |
|
|
0.88 |
|
|
|
0.21 |
|
Net interest margin |
|
|
3.14 |
% |
|
|
3.19 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
142.77 |
% |
|
|
|
|
163.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* 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
adjustments. |
Net interest income includes net deferred costs amortization of
$668 thousand and $618 thousand for the three months ended
June 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 June 30, 2023 and 2022 have been calculated using the
Corporation’s federal applicable rate of 21.0%. |
|
|
|
|
|
|
|
|
|
Univest Financial Corporation |
|
Average Balances and Interest Rates
(Unaudited) |
|
|
|
For the Six Months Ended June 30, |
|
|
Tax Equivalent Basis |
|
|
2023 |
|
|
|
|
2022 |
|
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
(Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Assets: |
|
|
|
|
|
|
|
|
Interest-earning deposits with other banks |
$ |
47,364 |
|
$ |
991 |
4.22 |
% |
$ |
603,002 |
|
$ |
1,181 |
0.39 |
% |
U.S. government obligations |
|
- |
|
|
- |
- |
|
|
3,602 |
|
|
37 |
2.07 |
|
Obligations of state and political subdivisions* |
|
2,285 |
|
|
32 |
2.82 |
|
|
2,317 |
|
|
36 |
3.13 |
|
Other debt and equity securities |
|
515,161 |
|
|
7,007 |
2.74 |
|
|
512,998 |
|
|
5,066 |
1.99 |
|
Federal Home Loan Bank, Federal Reserve Bank and other stock |
|
39,287 |
|
|
1,390 |
7.13 |
|
|
26,665 |
|
|
699 |
5.29 |
|
Total interest-earning deposits, investments and other
interest-earning assets |
|
604,097 |
|
|
9,420 |
3.14 |
|
|
1,148,584 |
|
|
7,019 |
1.23 |
|
|
|
|
|
|
|
|
|
|
Commercial, financial, and agricultural loans |
|
998,726 |
|
|
32,457 |
6.55 |
|
|
932,795 |
|
|
17,354 |
3.75 |
|
Real estate—commercial and construction loans |
|
3,394,100 |
|
|
88,381 |
5.25 |
|
|
2,954,831 |
|
|
54,347 |
3.71 |
|
Real estate—residential loans |
|
1,446,093 |
|
|
32,946 |
4.59 |
|
|
1,141,416 |
|
|
20,640 |
3.65 |
|
Loans to individuals |
|
27,023 |
|
|
928 |
6.93 |
|
|
26,293 |
|
|
543 |
4.16 |
|
Municipal loans and leases* |
|
232,461 |
|
|
4,729 |
4.10 |
|
|
239,197 |
|
|
4,838 |
4.08 |
|
Lease financings |
|
170,787 |
|
|
5,200 |
6.14 |
|
|
138,593 |
|
|
4,180 |
6.08 |
|
Gross loans and leases |
|
6,269,190 |
|
|
164,641 |
5.30 |
|
|
5,433,125 |
|
|
101,902 |
3.78 |
|
Total interest-earning assets |
|
6,873,287 |
|
|
174,061 |
5.11 |
|
|
6,581,709 |
|
|
108,921 |
3.34 |
|
Cash and due from banks |
|
58,356 |
|
|
|
|
|
54,671 |
|
|
|
|
Allowance for credit losses, loans and leases |
|
(80,813 |
) |
|
|
|
|
(70,237 |
) |
|
|
|
Premises and equipment, net |
|
52,064 |
|
|
|
|
|
52,097 |
|
|
|
|
Operating lease right-of-use assets |
|
31,251 |
|
|
|
|
|
30,308 |
|
|
|
|
Other assets |
|
396,471 |
|
|
|
|
|
356,406 |
|
|
|
|
Total assets |
$ |
7,330,616 |
|
|
|
|
$ |
7,004,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
935,316 |
|
$ |
8,556 |
1.84 |
% |
$ |
866,310 |
|
$ |
1,013 |
0.24 |
% |
Money market savings |
|
1,474,936 |
|
|
25,170 |
3.44 |
|
|
1,473,680 |
|
|
2,456 |
0.34 |
|
Regular savings |
|
936,930 |
|
|
1,514 |
0.33 |
|
|
1,046,150 |
|
|
475 |
0.09 |
|
Time deposits |
|
695,697 |
|
|
10,563 |
3.06 |
|
|
463,232 |
|
|
2,533 |
1.10 |
|
Total time and interest-bearing deposits |
|
4,042,879 |
|
|
45,803 |
2.28 |
|
|
3,849,372 |
|
|
6,477 |
0.34 |
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
247,745 |
|
|
5,977 |
4.87 |
|
|
17,443 |
|
|
13 |
0.15 |
|
Long-term debt |
|
207,431 |
|
|
3,402 |
3.31 |
|
|
95,000 |
|
|
638 |
1.35 |
|
Subordinated notes |
|
148,381 |
|
|
4,563 |
6.20 |
|
|
98,950 |
|
|
2,656 |
5.41 |
|
Total borrowings |
|
603,557 |
|
|
13,942 |
4.66 |
|
|
211,393 |
|
|
3,307 |
3.15 |
|
Total interest-bearing liabilities |
|
4,646,436 |
|
|
59,745 |
2.59 |
|
|
4,060,765 |
|
|
9,784 |
0.49 |
|
Noninterest-bearing deposits |
|
1,796,647 |
|
|
|
|
|
2,094,397 |
|
|
|
|
Operating lease liabilities |
|
34,427 |
|
|
|
|
|
33,375 |
|
|
|
|
Accrued expenses and other liabilities |
|
55,126 |
|
|
|
|
|
43,541 |
|
|
|
|
Total liabilities |
|
6,532,636 |
|
|
|
|
|
6,232,078 |
|
|
|
|
Total interest-bearing liabilities and noninterest-bearing deposits
("Cost of Funds") |
|
6,443,083 |
|
|
1.87 |
|
|
6,155,162 |
|
|
0.32 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
Additional paid-in capital |
|
299,537 |
|
|
|
|
|
298,606 |
|
|
|
|
Retained earnings and other equity |
|
340,659 |
|
|
|
|
|
316,486 |
|
|
|
|
Total shareholders' equity |
|
797,980 |
|
|
|
|
|
772,876 |
|
|
|
|
Total liabilities and shareholders' equity |
$ |
7,330,616 |
|
|
|
|
$ |
7,004,954 |
|
|
|
|
Net interest income |
|
$ |
114,316 |
|
|
|
$ |
99,137 |
|
|
|
|
|
|
|
|
|
|
|
Net interest spread |
|
|
2.52 |
|
|
|
2.85 |
|
Effect of net interest-free funding sources |
|
|
0.83 |
|
|
|
0.19 |
|
Net interest margin |
|
|
3.35 |
% |
|
|
3.04 |
% |
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
147.93 |
% |
|
|
|
|
162.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* 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
$1.1 million and $754 thousand for the six months ended June
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 six
months ended June 30, 2023 and 2022 have been calculated using
the Corporation’s federal applicable rate of 21.0%. |
|
|
|
|
|
|
|
|
|
|
Univest Financial Corporation |
Loan Portfolio Overview (Unaudited) |
June 30, 2023 |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
Industry Description |
Total Outstanding Balance |
|
% of Commercial Loan Portfolio |
|
CRE - Retail |
$ |
468,650 |
|
9.0 |
% |
Animal Production |
|
350,654 |
|
6.8 |
|
CRE - Multi-family |
|
306,508 |
|
5.9 |
|
CRE - Office |
|
303,848 |
|
5.9 |
|
CRE - 1-4 Family Residential Investment |
|
282,613 |
|
5.4 |
|
CRE - Industrial / Warehouse |
|
226,781 |
|
4.4 |
|
Hotels & Motels (Accommodation) |
|
191,824 |
|
3.7 |
|
Nursing and Residential Care Facilities |
|
174,408 |
|
3.4 |
|
Specialty Trade Contractors |
|
170,316 |
|
3.3 |
|
Education |
|
155,108 |
|
3.0 |
|
Homebuilding (tract developers, remodelers) |
|
151,225 |
|
2.9 |
|
Merchant Wholesalers, Durable Goods |
|
132,533 |
|
2.6 |
|
Motor Vehicle and Parts Dealers |
|
120,027 |
|
2.3 |
|
CRE - Mixed-Use - Residential |
|
110,604 |
|
2.1 |
|
Crop Production |
|
98,772 |
|
1.9 |
|
Administrative and Support Services |
|
88,027 |
|
1.7 |
|
Rental and Leasing Services |
|
86,872 |
|
1.7 |
|
Wood Product Manufacturing |
|
81,867 |
|
1.6 |
|
Repair and Maintenance |
|
81,038 |
|
1.6 |
|
Real Estate Lenders, Secondary Market Financing |
|
79,265 |
|
1.5 |
|
CRE - Mixed-Use - Commercial |
|
77,981 |
|
1.5 |
|
Religious Organizations, Advocacy Groups |
|
74,106 |
|
1.4 |
|
Amusement, Gambling, and Recreation Industries |
|
71,243 |
|
1.4 |
|
Fabricated Metal Product Manufacturing |
|
70,147 |
|
1.4 |
|
Merchant Wholesalers, Nondurable Goods |
|
68,736 |
|
1.3 |
|
Personal and Laundry Services |
|
67,717 |
|
1.3 |
|
Miniwarehouse / Self-Storage |
|
63,917 |
|
1.2 |
|
Food Services and Drinking Places |
|
63,769 |
|
1.2 |
|
Private Equity & Special Purpose Entities (except 52592) |
|
61,598 |
|
1.2 |
|
Food Manufacturing |
|
57,748 |
|
1.1 |
|
Truck Transportation |
|
54,135 |
|
1.0 |
|
Industries with >$50 million in
outstandings |
$ |
4,392,037 |
|
84.6 |
% |
Industries with <$50 million in outstandings |
$ |
800,146 |
|
15.4 |
% |
Total Commercial Loans |
$ |
5,192,183 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Consumer Loans and Lease Financings |
Total Outstanding Balance |
|
|
|
Real Estate-Residential Secured for Personal Purpose |
$ |
832,632 |
|
|
|
Real Estate-Home Equity Secured for Personal Purpose |
|
175,090 |
|
|
|
Loans to Individuals |
|
25,544 |
|
|
|
Lease Financings |
|
236,789 |
|
|
|
Total - Consumer Loans and Lease Financings |
$ |
1,270,055 |
|
|
|
|
|
|
|
|
Total |
$ |
6,462,238 |
|
|
|
|
|
|
|
|
Univest Financial Corporation |
Non-GAAP Reconciliation |
June 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP to GAAP Reconciliation |
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 six months ended, |
(Dollars in thousands) |
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/23 |
|
06/30/22 |
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 |
$ |
16,800 |
|
|
$ |
21,034 |
|
|
$ |
23,836 |
|
|
$ |
20,801 |
|
|
$ |
13,166 |
|
|
$ |
37,834 |
|
|
$ |
33,483 |
|
Amortization of intangibles, net of tax |
|
200 |
|
|
|
200 |
|
|
|
238 |
|
|
|
244 |
|
|
|
270 |
|
|
|
400 |
|
|
|
540 |
|
Net income before amortization of intangibles |
$ |
17,000 |
|
|
$ |
21,234 |
|
|
$ |
24,074 |
|
|
$ |
21,045 |
|
|
$ |
13,436 |
|
|
$ |
38,234 |
|
|
$ |
34,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
$ |
805,222 |
|
|
$ |
798,496 |
|
|
$ |
776,500 |
|
|
$ |
754,187 |
|
|
$ |
763,925 |
|
|
$ |
805,222 |
|
|
$ |
763,925 |
|
Goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
Other intangibles (b) |
|
|
(2,767 |
) |
|
|
(3,054 |
) |
|
|
(3,251 |
) |
|
|
(3,485 |
) |
|
|
(3,678 |
) |
|
|
(2,767 |
) |
|
|
(3,678 |
) |
Tangible common equity |
$ |
626,945 |
|
|
$ |
619,932 |
|
|
$ |
597,739 |
|
|
$ |
575,192 |
|
|
$ |
584,737 |
|
|
$ |
626,945 |
|
|
$ |
584,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,600,150 |
|
|
$ |
7,358,991 |
|
|
$ |
7,222,016 |
|
|
$ |
6,907,397 |
|
|
$ |
6,700,813 |
|
|
$ |
7,600,150 |
|
|
$ |
6,700,813 |
|
Goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
Other intangibles (b) |
|
|
(2,767 |
) |
|
|
(3,054 |
) |
|
|
(3,251 |
) |
|
|
(3,485 |
) |
|
|
(3,678 |
) |
|
|
(2,767 |
) |
|
|
(3,678 |
) |
Tangible assets |
$ |
7,421,873 |
|
|
$ |
7,180,427 |
|
|
$ |
7,043,255 |
|
|
$ |
6,728,402 |
|
|
$ |
6,521,625 |
|
|
$ |
7,421,873 |
|
|
$ |
6,521,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity |
$ |
806,709 |
|
|
$ |
789,153 |
|
|
$ |
767,192 |
|
|
$ |
773,099 |
|
|
$ |
771,410 |
|
|
$ |
797,980 |
|
|
$ |
772,876 |
|
Average goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
Average other intangibles (b) |
|
|
(2,924 |
) |
|
|
(3,137 |
) |
|
|
(3,355 |
) |
|
|
(3,550 |
) |
|
|
(3,791 |
) |
|
|
(3,030 |
) |
|
|
(3,940 |
) |
Average tangible common equity |
$ |
628,275 |
|
|
$ |
610,506 |
|
|
$ |
588,327 |
|
|
$ |
594,039 |
|
|
$ |
592,109 |
|
|
$ |
619,440 |
|
|
$ |
593,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Associated with branch optimization and headcount
rationlization expense management
strategies |
(b) Amount does not include mortgage servicing
rights |
CONTACT:
Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net
Univest Financial (NASDAQ:UVSP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Univest Financial (NASDAQ:UVSP)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024