SOUDERTON, Pa., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2022 was $20.8 million, or $0.71 diluted earnings per share, compared to net income of $20.9 million, or $0.71 diluted earnings per share, for the quarter ended September 30, 2021.
One-Time Items
The financial results for the three and nine months ended September 30, 2022 included tax-free bank owned life insurance ("BOLI") death benefit claims of $446 thousand, which represented $0.02 diluted earnings per share for both periods.
Loans
Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans1, increased $190.6 million, or 13.5% (annualized), from June 30, 2022, $568.8 million, or 14.4% (annualized), from December 31, 2021 and $680.6 million, or 13.2%, from September 30, 2021 primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.
Deposits
Total deposits increased $223.9 million, or 16.1% (annualized), from June 30, 2022, primarily due to increases in public funds deposits partially offset by decreases in commercial deposits. Total deposits decreased $268.1 million, or 5.9% (annualized), from December 31, 2021, primarily due to decreases in commercial and consumer deposits. Total deposits decreased $151.2 million, or 2.5%, from September 30, 2021, primarily due to a decrease in public funds deposits.
Net Interest Income and Margin
Net interest income of $58.3 million for the three months ended September 30, 2022 increased $6.8 million, or 13.2%, from the three months ended June 30, 2022, and $9.6 million, or 19.6%, from the three months ended September 30, 2021. The increase in net interest income for the three months ended September 30, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity position of the Corporation's balance sheet.
Net interest margin, on a tax-equivalent basis, was 3.67% for the third quarter of 2022, compared to 3.19% for the second quarter of 2022 and 3.11% for the third quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended September 30, 2022 compared to 23 basis points for the quarter ended June 30, 2022 and 27 basis points for the quarter ended September 30, 2021. PPP loans had no impact on net interest margin for the quarter ended September 30, 2022 compared to one basis point for the quarter ended June 30, 2022 and 20 basis points for the quarter ended September 30, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.68% for the quarter ended September 30, 2022 compared to 3.41% for the quarter ended June 30, 2022 and 3.18% for the quarter ended September 30, 2021.
Noninterest Income
Noninterest income for the quarter ended September 30, 2022 was $18.0 million, a decrease of $2.6 million, or 12.6%, compared to the third quarter of 2021.
Net gain on mortgage banking activities decreased $2.4 million, or 74.7%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of margins. BOLI increased $228 thousand, or 24.6%, for the quarter compared to the comparable period in the prior year, primarily due to death benefit claims of $446 thousand in the third quarter of 2022. Investment advisory commission and fee income decreased $597 thousand, or 12.4%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to reduced assets under management, which was driven by market performance.
Other income decreased $758 thousand, or 46.6%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. Gains on the sale of Small Business Administration loans decreased $520 thousand for the quarter due to decreased sale activity. Fees on risk participation agreements for interest rate swaps decreased $171 thousand for the quarter driven by a decrease in customer demand due to the current interest rate environment.
Insurance commission and fee income increased $605 thousand, or 15.8%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.
Other service fee income increased $548 thousand, or 21.3%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. Mortgage servicing fees increased $336 thousand for the quarter driven by reduced amortization as a result of a decrease in prepayment speeds.
Noninterest Expense
Noninterest expense for the quarter ended September 30, 2022 was $46.7 million, an increase of $3.4 million, or 7.9%, compared to the third quarter of 2021. The results for the three months ended September 30, 2022 included approximately $1.2 million in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to seamlessly sell existing products and services, digitally, across an expanded footprint.
Salaries, benefits and commissions increased $2.8 million, or 10.4%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western PA, and annual merit increases.
Professional fees increased $347 thousand, or 16.0%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. The increase for the three months ended September 30, 2022 was primarily due to $1.0 million in consultant fees attributable to the previously discussed digital transformation initiative, as compared to our $585 thousand investment in our Diversity, Equity and Inclusion program, training initiatives and treasury management product enhancements for the three months ended September 30, 2021.
Data processing expenses increased $627 thousand, or 19.2%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology including $180 thousand in support of the previously discussed digital transformation initiative for the respective period.
Tax Provision
The effective income tax rate was 19.7% for the nine months ended September 30, 2022, compared to an effective income tax rate of 19.4% for the nine months ended September 30, 2021. The effective tax rate for the nine months ended September 30, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rate for the nine months ended September 30, 2022 was favorably impacted by discrete tax benefits and proceeds from BOLI death benefits. Excluding these items, the effective tax rate was 20.1% for the nine months ended September 30, 2022.
Asset Quality and Provision for Credit Losses
Nonperforming assets were $33.0 million at September 30, 2022, compared to $34.8 million at June 30, 2022 and $37.1 million at September 30, 2021.
Net loan and lease charge-offs were $1.2 million and $1.7 million for the three months ended September 30, 2022 and June 30, 2022, respectively, compared to net loan and lease recoveries of $75 thousand for the three months ended September 30, 2021. Net loan and lease charge-offs were $3.0 million and $456 thousand for the nine months ended September 30, 2022 and September 30, 2021, respectively.
The provision for credit losses was $3.6 million for the third quarter of 2022 compared to a provision for credit losses of $6.7 million for the second quarter of 2022 and a reversal of provision of $182 thousand for the third quarter of 2021. The provision for credit losses was $6.8 million for the nine months ended September 30, 2022 compared to a reversal of provision for credit losses of $11.5 million for the comparable period in the prior year. 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, 2022 compared to 1.27% at June 30, 2022 and 1.34% at September 30, 2021.
Share Repurchases
During the three months ended September 30, 2022, the Corporation repurchased 150,000 shares at an average price of $25.41, for an aggregate cost of $3.8 million. During the nine months ended September 30, 2022, the Corporation repurchased 450,000 shares at an average price of $25.29, for an aggregate cost of $11.4 million. As of September 30, 2022, the Corporation has 229,174 shares remaining to repurchase under the program that was approved on May 27, 2015. On October 26, 2022, the Corporation’s Board of Directors approved an increase of 1,000,000 in the shares available for repurchase under the Corporation’s share repurchase program.
Dividend
On October 26, 2022, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 23, 2022 to shareholders of record as of November 9, 2022.
Conference Call
Univest will host a conference call to discuss third quarter 2022 results on Thursday, October 27, 2022 at 9:00 a.m. EDT. Participants may preregister at https://www.netroadshow.com/events/login?show=7205620b&confId=42951. The general public can access the call by dialing 1-844-200-6205; using Access Code 478630. A replay of the conference call will be available through November 24, 2022 by dialing 1-866-813-9403; using Access Code: 211821.
1Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included within this document.
About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $6.9 billion in assets and $4.0 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2022. 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 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 results, business 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 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 economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; and/or (11) 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, 2022 |
| (Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet (Period End) |
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
65,859 |
|
|
$ |
59,590 |
|
|
$ |
57,307 |
|
|
$ |
49,202 |
|
|
$ |
67,517 |
|
|
|
|
|
| Interest-earning deposits with other banks |
|
|
47,451 |
|
|
|
35,187 |
|
|
|
716,474 |
|
|
|
840,948 |
|
|
|
834,840 |
|
|
|
|
|
| Cash and cash equivalents |
|
|
113,310 |
|
|
|
94,777 |
|
|
|
773,781 |
|
|
|
890,150 |
|
|
|
902,357 |
|
|
|
|
|
| Investment securities held-to-maturity |
|
|
159,170 |
|
|
|
159,808 |
|
|
|
166,339 |
|
|
|
176,983 |
|
|
|
112,643 |
|
|
|
|
|
| Investment securities available for sale, net of allowance for credit losses |
|
|
347,479 |
|
|
|
351,382 |
|
|
|
349,994 |
|
|
|
317,007 |
|
|
|
277,773 |
|
|
|
|
|
| Investments in equity securities |
|
|
2,994 |
|
|
|
2,934 |
|
|
|
2,569 |
|
|
|
2,999 |
|
|
|
2,961 |
|
|
|
|
|
| Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost |
|
|
29,475 |
|
|
|
29,116 |
|
|
|
26,330 |
|
|
|
28,186 |
|
|
|
28,679 |
|
|
|
|
|
| Loans held for sale |
|
|
9,087 |
|
|
|
8,352 |
|
|
|
14,521 |
|
|
|
21,600 |
|
|
|
29,093 |
|
|
|
|
|
| Loans and leases held for investment |
|
|
5,849,259 |
|
|
|
5,661,777 |
|
|
|
5,400,786 |
|
|
|
5,310,017 |
|
|
|
5,252,045 |
|
|
|
|
|
| Less: Allowance for credit losses, loans and leases |
|
|
(74,929 |
) |
|
|
(72,011 |
) |
|
|
(68,286 |
) |
|
|
(71,924 |
) |
|
|
(70,146 |
) |
|
|
|
|
| Net loans and leases held for investment |
|
|
5,774,330 |
|
|
|
5,589,766 |
|
|
|
5,332,500 |
|
|
|
5,238,093 |
|
|
|
5,181,899 |
|
|
|
|
|
| Premises and equipment, net |
|
|
50,533 |
|
|
|
50,080 |
|
|
|
50,429 |
|
|
|
56,882 |
|
|
|
55,354 |
|
|
|
|
|
| Operating lease right-of-use assets |
|
|
30,654 |
|
|
|
30,929 |
|
|
|
30,498 |
|
|
|
30,407 |
|
|
|
31,570 |
|
|
|
|
|
| Goodwill |
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
172,559 |
|
|
|
|
|
| Other intangibles, net of accumulated amortization |
|
|
11,650 |
|
|
|
11,728 |
|
|
|
11,784 |
|
|
|
11,848 |
|
|
|
9,359 |
|
|
|
|
|
| Bank owned life insurance |
|
|
120,035 |
|
|
|
120,103 |
|
|
|
119,398 |
|
|
|
118,699 |
|
|
|
117,981 |
|
|
|
|
|
| Accrued interest and other assets |
|
|
83,170 |
|
|
|
76,328 |
|
|
|
54,087 |
|
|
|
54,057 |
|
|
|
57,624 |
|
|
|
|
|
| Total assets |
|
$ |
6,907,397 |
|
|
$ |
6,700,813 |
|
|
$ |
7,107,740 |
|
|
$ |
7,122,421 |
|
|
$ |
6,979,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest-bearing deposits |
|
$ |
1,968,422 |
|
|
$ |
2,062,538 |
|
|
$ |
2,136,467 |
|
|
$ |
2,065,423 |
|
|
$ |
1,861,007 |
|
|
|
|
|
| Interest-bearing deposits: |
|
|
3,818,554 |
|
|
|
3,500,510 |
|
|
|
3,911,465 |
|
|
|
3,989,701 |
|
|
|
4,077,147 |
|
|
|
|
|
| Total deposits |
|
|
5,786,976 |
|
|
|
5,563,048 |
|
|
|
6,047,932 |
|
|
|
6,055,124 |
|
|
|
5,938,154 |
|
|
|
|
|
| Short-term borrowings |
|
|
80,711 |
|
|
|
97,606 |
|
|
|
18,976 |
|
|
|
20,106 |
|
|
|
14,101 |
|
|
|
|
|
| Long-term debt |
|
|
95,000 |
|
|
|
95,000 |
|
|
|
95,000 |
|
|
|
95,000 |
|
|
|
95,000 |
|
|
|
|
|
| Subordinated notes |
|
|
99,107 |
|
|
|
99,030 |
|
|
|
98,952 |
|
|
|
98,874 |
|
|
|
98,797 |
|
|
|
|
|
| Operating lease liabilities |
|
|
33,718 |
|
|
|
33,951 |
|
|
|
33,566 |
|
|
|
33,453 |
|
|
|
34,641 |
|
|
|
|
|
| Accrued expenses and other liabilities |
|
|
57,698 |
|
|
|
48,253 |
|
|
|
39,459 |
|
|
|
46,070 |
|
|
|
43,136 |
|
|
|
|
|
| Total liabilities |
|
|
6,153,210 |
|
|
|
5,936,888 |
|
|
|
6,333,885 |
|
|
|
6,348,627 |
|
|
|
6,223,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SHAREHOLDER'S 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 |
|
|
299,791 |
|
|
|
298,800 |
|
|
|
297,945 |
|
|
|
299,181 |
|
|
|
298,033 |
|
|
|
|
|
| Retained earnings |
|
|
410,942 |
|
|
|
396,295 |
|
|
|
389,332 |
|
|
|
375,124 |
|
|
|
363,607 |
|
|
|
|
|
| Accumulated other comprehensive loss, net of tax benefit |
|
|
(64,985 |
) |
|
|
(42,781 |
) |
|
|
(31,909 |
) |
|
|
(16,353 |
) |
|
|
(20,073 |
) |
|
|
|
|
| Treasury stock, at cost |
|
|
(49,345 |
) |
|
|
(46,173 |
) |
|
|
(39,297 |
) |
|
|
(41,942 |
) |
|
|
(43,328 |
) |
|
|
|
|
| Total shareholders’ equity |
|
|
754,187 |
|
|
|
763,925 |
|
|
|
773,855 |
|
|
|
773,794 |
|
|
|
756,023 |
|
|
|
|
|
| Total liabilities and shareholders’ equity |
|
$ |
6,907,397 |
|
|
$ |
6,700,813 |
|
|
$ |
7,107,740 |
|
|
$ |
7,122,421 |
|
|
$ |
6,979,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the nine months ended, |
| Balance Sheet (Average) |
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
09/30/22 |
|
09/30/21 |
| Assets |
|
$ |
6,797,466 |
|
|
$ |
6,962,401 |
|
|
$ |
7,047,980 |
|
|
$ |
7,088,289 |
|
|
$ |
6,698,177 |
|
|
$ |
6,935,031 |
|
$ |
6,509,576 |
| Investment securities, net of allowance for credit losses |
|
|
517,335 |
|
|
|
515,741 |
|
|
|
522,128 |
|
|
|
469,588 |
|
|
|
395,280 |
|
|
|
518,383 |
|
|
385,192 |
| Loans and leases, gross |
|
|
5,752,119 |
|
|
|
5,520,580 |
|
|
|
5,344,698 |
|
|
|
5,255,279 |
|
|
|
5,320,411 |
|
|
|
5,540,624 |
|
|
5,345,119 |
| Deposits |
|
|
5,645,291 |
|
|
|
5,903,173 |
|
|
|
5,984,815 |
|
|
|
6,041,798 |
|
|
|
5,666,725 |
|
|
|
5,843,182 |
|
|
5,439,345 |
| Shareholders' equity |
|
|
773,099 |
|
|
|
771,410 |
|
|
|
774,358 |
|
|
|
762,334 |
|
|
|
746,185 |
|
|
|
772,951 |
|
|
725,061 |
|
| Univest Financial Corporation |
| Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited) |
| September 30, 2022 |
| (Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Summary of Major Loan and Lease Categories (Period End) |
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
|
|
|
| Commercial, financial and agricultural |
|
$ |
1,052,733 |
|
|
$ |
1,028,354 |
|
|
$ |
932,485 |
|
|
$ |
956,396 |
|
|
$ |
927,015 |
|
|
|
|
|
| Paycheck Protection Program |
|
|
2,207 |
|
|
|
5,358 |
|
|
|
10,298 |
|
|
|
31,748 |
|
|
|
85,601 |
|
|
|
|
|
| Real estate-commercial |
|
|
2,936,204 |
|
|
|
2,870,286 |
|
|
|
2,816,737 |
|
|
|
2,718,535 |
|
|
|
2,669,898 |
|
|
|
|
|
| Real estate-construction |
|
|
329,915 |
|
|
|
319,449 |
|
|
|
285,083 |
|
|
|
283,918 |
|
|
|
260,874 |
|
|
|
|
|
| Real estate-residential secured for business purpose |
|
|
443,837 |
|
|
|
419,652 |
|
|
|
412,486 |
|
|
|
409,900 |
|
|
|
412,001 |
|
|
|
|
|
| Real estate-residential secured for personal purpose |
|
|
685,771 |
|
|
|
629,144 |
|
|
|
568,735 |
|
|
|
540,566 |
|
|
|
535,705 |
|
|
|
|
|
| Real estate-home equity secured for personal purpose |
|
|
175,843 |
|
|
|
168,536 |
|
|
|
160,134 |
|
|
|
158,909 |
|
|
|
159,029 |
|
|
|
|
|
| Loans to individuals |
|
|
26,679 |
|
|
|
27,061 |
|
|
|
26,249 |
|
|
|
25,504 |
|
|
|
26,458 |
|
|
|
|
|
| Lease financings |
|
|
196,070 |
|
|
|
193,937 |
|
|
|
188,579 |
|
|
|
184,541 |
|
|
|
175,464 |
|
|
|
|
|
| Total loans and leases held for investment, net of deferred income |
|
|
5,849,259 |
|
|
|
5,661,777 |
|
|
|
5,400,786 |
|
|
|
5,310,017 |
|
|
|
5,252,045 |
|
|
|
|
|
| Less: Allowance for credit losses, loans and leases |
|
|
(74,929 |
) |
|
|
(72,011 |
) |
|
|
(68,286 |
) |
|
|
(71,924 |
) |
|
|
(70,146 |
) |
|
|
|
|
| Net loans and leases held for investment |
|
$ |
5,774,330 |
|
|
$ |
5,589,766 |
|
|
$ |
5,332,500 |
|
|
$ |
5,238,093 |
|
|
$ |
5,181,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality Data (Period End) |
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
|
|
|
| Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases |
|
$ |
13,620 |
|
|
$ |
13,355 |
|
|
$ |
30,876 |
|
|
$ |
33,210 |
|
|
$ |
34,528 |
|
|
|
|
|
| Accruing loans and leases 90 days or more past due |
|
|
416 |
|
|
|
2,784 |
|
|
|
274 |
|
|
|
498 |
|
|
|
2,204 |
|
|
|
|
|
| Accruing troubled debt restructured loans and leases |
|
|
50 |
|
|
|
50 |
|
|
|
51 |
|
|
|
51 |
|
|
|
51 |
|
|
|
|
|
| Total nonperforming loans and leases |
|
|
14,086 |
|
|
|
16,189 |
|
|
|
31,201 |
|
|
|
33,759 |
|
|
|
36,783 |
|
|
|
|
|
| Other real estate owned |
|
|
18,960 |
|
|
|
18,604 |
|
|
|
279 |
|
|
|
279 |
|
|
|
279 |
|
|
|
|
|
| Total nonperforming assets |
|
$ |
33,046 |
|
|
$ |
34,793 |
|
|
$ |
31,480 |
|
|
$ |
34,038 |
|
|
$ |
37,062 |
|
|
|
|
|
| Nonaccrual loans and leases / Loans and leases held for investment |
|
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.57 |
% |
|
|
0.63 |
% |
|
|
0.66 |
% |
|
|
|
|
| Nonperforming loans and leases / Loans and leases held for investment |
|
|
0.24 |
% |
|
|
0.29 |
% |
|
|
0.58 |
% |
|
|
0.64 |
% |
|
|
0.70 |
% |
|
|
|
|
| Nonperforming assets / Total assets |
|
|
0.48 |
% |
|
|
0.52 |
% |
|
|
0.44 |
% |
|
|
0.48 |
% |
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses, loans and leases |
|
$ |
74,929 |
|
|
$ |
72,011 |
|
|
$ |
68,286 |
|
|
$ |
71,924 |
|
|
$ |
70,146 |
|
|
|
|
|
| Allowance for credit losses, loans and leases / Loans and leases held for investment |
|
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.26 |
% |
|
|
1.35 |
% |
|
|
1.34 |
% |
|
|
|
|
| Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1) |
|
|
1.28 |
% |
|
|
1.27 |
% |
|
|
1.27 |
% |
|
|
1.36 |
% |
|
|
1.36 |
% |
|
|
|
|
| Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment |
|
|
550.14 |
% |
|
|
539.21 |
% |
|
|
221.16 |
% |
|
|
216.57 |
% |
|
|
203.16 |
% |
|
|
|
|
| Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment |
|
|
531.94 |
% |
|
|
444.81 |
% |
|
|
218.86 |
% |
|
|
213.05 |
% |
|
|
190.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the nine months ended, |
|
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
09/30/22 |
|
09/30/21 |
| Net loan and lease charge-offs (recoveries) |
|
$ |
1,196 |
|
|
$ |
1,715 |
|
|
$ |
76 |
|
|
$ |
(243 |
) |
|
$ |
(75 |
) |
|
$ |
2,987 |
|
|
$ |
456 |
|
| Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases |
|
|
0.08 |
% |
|
|
0.12 |
% |
|
|
0.01 |
% |
|
|
(0.02 |
%) |
|
|
(0.01 |
%) |
|
|
0.07 |
% |
|
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included at the end of this document. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Univest Financial Corporation |
| Consolidated Selected Financial Data (Unaudited) |
| September 30, 2022 |
| (Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the nine months ended, |
| For the period: |
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
09/30/22 |
|
09/30/21 |
| Interest income |
|
$ |
66,877 |
|
$ |
56,717 |
|
$ |
51,198 |
|
|
$ |
52,262 |
|
$ |
53,571 |
|
|
$ |
174,792 |
|
$ |
157,469 |
|
| Interest expense |
|
|
8,627 |
|
|
5,246 |
|
|
4,538 |
|
|
|
4,737 |
|
|
4,884 |
|
|
|
18,411 |
|
|
16,611 |
|
| Net interest income |
|
|
58,250 |
|
|
51,471 |
|
|
46,660 |
|
|
|
47,525 |
|
|
48,687 |
|
|
|
156,381 |
|
|
140,858 |
|
| Provision (reversal of provision) for credit losses |
|
|
3,558 |
|
|
6,674 |
|
|
(3,450 |
) |
|
|
1,392 |
|
|
(182 |
) |
|
|
6,782 |
|
|
(11,524 |
) |
| Net interest income after provision for credit losses |
|
|
54,692 |
|
|
44,797 |
|
|
50,110 |
|
|
|
46,133 |
|
|
48,869 |
|
|
|
149,599 |
|
|
152,382 |
|
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trust fee income |
|
|
1,835 |
|
|
1,998 |
|
|
2,102 |
|
|
|
2,086 |
|
|
2,126 |
|
|
|
5,935 |
|
|
6,317 |
|
| Service charges on deposit accounts |
|
|
1,522 |
|
|
1,574 |
|
|
1,504 |
|
|
|
1,486 |
|
|
1,422 |
|
|
|
4,600 |
|
|
4,018 |
|
| Investment advisory commission and fee income |
|
|
4,199 |
|
|
4,812 |
|
|
5,152 |
|
|
|
4,885 |
|
|
4,796 |
|
|
|
14,163 |
|
|
14,051 |
|
| Insurance commission and fee income |
|
|
4,442 |
|
|
4,629 |
|
|
5,570 |
|
|
|
3,726 |
|
|
3,837 |
|
|
|
14,641 |
|
|
12,631 |
|
| Other service fee income |
|
|
3,124 |
|
|
3,309 |
|
|
2,756 |
|
|
|
2,759 |
|
|
2,576 |
|
|
|
9,189 |
|
|
7,516 |
|
| Bank owned life insurance income |
|
|
1,153 |
|
|
705 |
|
|
699 |
|
|
|
719 |
|
|
925 |
|
|
|
2,557 |
|
|
3,262 |
|
| Net gain on sales of investment securities |
|
|
- |
|
|
- |
|
|
30 |
|
|
|
5 |
|
|
21 |
|
|
|
30 |
|
|
140 |
|
| Net gain on mortgage banking activities |
|
|
817 |
|
|
1,230 |
|
|
1,929 |
|
|
|
2,518 |
|
|
3,224 |
|
|
|
3,976 |
|
|
12,623 |
|
| Other income |
|
|
867 |
|
|
741 |
|
|
728 |
|
|
|
1,008 |
|
|
1,625 |
|
|
|
2,336 |
|
|
3,474 |
|
| Total noninterest income |
|
|
17,959 |
|
|
18,998 |
|
|
20,470 |
|
|
|
19,192 |
|
|
20,552 |
|
|
|
57,427 |
|
|
64,032 |
|
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries, benefits and commissions |
|
|
29,400 |
|
|
29,133 |
|
|
28,245 |
|
|
|
27,374 |
|
|
26,641 |
|
|
|
86,778 |
|
|
76,817 |
|
| Net occupancy |
|
|
2,504 |
|
|
2,422 |
|
|
2,716 |
|
|
|
2,477 |
|
|
2,525 |
|
|
|
7,642 |
|
|
7,920 |
|
| Equipment |
|
|
968 |
|
|
977 |
|
|
982 |
|
|
|
985 |
|
|
1,000 |
|
|
|
2,927 |
|
|
2,914 |
|
| Data processing |
|
|
3,901 |
|
|
3,708 |
|
|
3,567 |
|
|
|
3,355 |
|
|
3,274 |
|
|
|
11,176 |
|
|
9,388 |
|
| Professional fees |
|
|
2,521 |
|
|
2,844 |
|
|
2,138 |
|
|
|
1,750 |
|
|
2,174 |
|
|
|
7,503 |
|
|
5,937 |
|
| Marketing and advertising |
|
|
605 |
|
|
693 |
|
|
425 |
|
|
|
683 |
|
|
539 |
|
|
|
1,723 |
|
|
1,380 |
|
| Deposit insurance premiums |
|
|
662 |
|
|
812 |
|
|
893 |
|
|
|
698 |
|
|
765 |
|
|
|
2,367 |
|
|
2,014 |
|
| Intangible expenses |
|
|
309 |
|
|
342 |
|
|
341 |
|
|
|
267 |
|
|
214 |
|
|
|
992 |
|
|
712 |
|
| Other expense |
|
|
5,795 |
|
|
6,440 |
|
|
6,105 |
|
|
|
5,746 |
|
|
6,116 |
|
|
|
18,340 |
|
|
16,992 |
|
| Total noninterest expense |
|
|
46,665 |
|
|
47,371 |
|
|
45,412 |
|
|
|
43,335 |
|
|
43,248 |
|
|
|
139,448 |
|
|
124,074 |
|
| Income before taxes |
|
|
25,986 |
|
|
16,424 |
|
|
25,168 |
|
|
|
21,990 |
|
|
26,173 |
|
|
|
67,578 |
|
|
92,340 |
|
| Income tax expense |
|
|
5,185 |
|
|
3,258 |
|
|
4,851 |
|
|
|
4,578 |
|
|
5,262 |
|
|
|
13,294 |
|
|
17,951 |
|
| Net income |
|
$ |
20,801 |
|
$ |
13,166 |
|
$ |
20,317 |
|
|
$ |
17,412 |
|
$ |
20,911 |
|
|
$ |
54,284 |
|
$ |
74,389 |
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.71 |
|
$ |
0.45 |
|
$ |
0.69 |
|
|
$ |
0.59 |
|
$ |
0.71 |
|
|
$ |
1.85 |
|
$ |
2.53 |
|
| Diluted |
|
$ |
0.71 |
|
$ |
0.45 |
|
$ |
0.68 |
|
|
$ |
0.59 |
|
$ |
0.71 |
|
|
$ |
1.84 |
|
$ |
2.52 |
|
| Dividends declared per share |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
$ |
0.20 |
|
|
$ |
0.62 |
|
$ |
0.60 |
|
| Weighted average shares outstanding |
|
|
29,290,829 |
|
|
29,490,154 |
|
|
29,542,467 |
|
|
|
29,471,304 |
|
|
29,420,256 |
|
|
|
29,440,228 |
|
|
29,379,774 |
|
| Period end shares outstanding |
|
|
29,242,451 |
|
|
29,365,775 |
|
|
29,636,425 |
|
|
|
29,500,542 |
|
|
29,438,402 |
|
|
|
29,242,451 |
|
|
29,438,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Univest Financial Corporation |
| Consolidated Selected Financial Data (Unaudited) |
| September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the nine months ended, |
| Profitability Ratios (annualized) |
|
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
09/30/22 |
|
09/30/21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
1.21 |
% |
|
|
0.76 |
% |
|
|
1.17 |
% |
|
|
0.97 |
% |
|
|
1.24 |
% |
|
|
1.05 |
% |
|
|
1.53 |
% |
| Return on average shareholders' equity |
|
|
10.67 |
% |
|
|
6.85 |
% |
|
|
10.64 |
% |
|
|
9.06 |
% |
|
|
11.12 |
% |
|
|
9.39 |
% |
|
|
13.72 |
% |
| Return on average tangible common equity (1)(3) |
|
|
14.06 |
% |
|
|
9.10 |
% |
|
|
14.04 |
% |
|
|
11.93 |
% |
|
|
14.63 |
% |
|
|
12.40 |
% |
|
|
18.21 |
% |
| Net interest margin (FTE) |
|
|
3.67 |
% |
|
|
3.19 |
% |
|
|
2.89 |
% |
|
|
2.86 |
% |
|
|
3.11 |
% |
|
|
3.25 |
% |
|
|
3.13 |
% |
| Efficiency ratio (2) |
|
|
60.6 |
% |
|
|
66.6 |
% |
|
|
67.0 |
% |
|
|
64.3 |
% |
|
|
61.8 |
% |
|
|
64.6 |
% |
|
|
59.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalization Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared to net income |
|
|
29.7 |
% |
|
|
47.1 |
% |
|
|
29.1 |
% |
|
|
33.9 |
% |
|
|
28.1 |
% |
|
|
33.7 |
% |
|
|
23.7 |
% |
| Shareholders' equity to assets (Period End) |
|
|
10.92 |
% |
|
|
11.40 |
% |
|
|
10.89 |
% |
|
|
10.86 |
% |
|
|
10.83 |
% |
|
|
10.92 |
% |
|
|
10.83 |
% |
| Tangible common equity to tangible assets (1) |
|
|
8.55 |
% |
|
|
8.97 |
% |
|
|
8.58 |
% |
|
|
8.56 |
% |
|
|
8.55 |
% |
|
|
8.55 |
% |
|
|
8.55 |
% |
| Common equity book value per share |
|
$ |
25.79 |
|
|
$ |
26.01 |
|
|
$ |
26.11 |
|
|
$ |
26.23 |
|
|
$ |
25.68 |
|
|
$ |
25.79 |
|
|
$ |
25.68 |
|
| Tangible common equity book value per share (1) |
|
$ |
19.67 |
|
|
$ |
19.91 |
|
|
$ |
20.06 |
|
|
$ |
20.14 |
|
|
$ |
19.75 |
|
|
$ |
19.67 |
|
|
$ |
19.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Regulatory Capital Ratios (Period End) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier 1 leverage ratio |
|
|
9.87 |
% |
|
|
9.45 |
% |
|
|
9.35 |
% |
|
|
9.13 |
% |
|
|
9.53 |
% |
|
|
9.87 |
% |
|
|
9.53 |
% |
| Common equity tier 1 risk-based capital ratio |
|
|
10.51 |
% |
|
|
10.62 |
% |
|
|
11.07 |
% |
|
|
11.08 |
% |
|
|
11.15 |
% |
|
|
10.51 |
% |
|
|
11.15 |
% |
| Tier 1 risk-based capital ratio |
|
|
10.51 |
% |
|
|
10.62 |
% |
|
|
11.07 |
% |
|
|
11.08 |
% |
|
|
11.15 |
% |
|
|
10.51 |
% |
|
|
11.15 |
% |
| Total risk-based capital ratio |
|
|
13.10 |
% |
|
|
13.23 |
% |
|
|
13.73 |
% |
|
|
13.77 |
% |
|
|
13.87 |
% |
|
|
13.10 |
% |
|
|
13.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 |
September 30, 2022 |
|
June 30, 2022 |
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
| (Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
| Assets: |
|
|
|
|
|
|
|
|
| Interest-earning deposits with other banks |
$ |
49,476 |
|
$ |
252 |
2.02 |
% |
$ |
474,260 |
|
$ |
824 |
0.70 |
% |
| U.S. government obligations |
|
565 |
|
|
3 |
2.11 |
|
|
2,000 |
|
|
11 |
2.21 |
|
| Obligations of state and political subdivisions* |
|
2,308 |
|
|
18 |
3.09 |
|
|
2,302 |
|
|
17 |
2.96 |
|
| Other debt and equity securities |
|
514,462 |
|
|
3,010 |
2.32 |
|
|
511,439 |
|
|
2,727 |
2.14 |
|
| Federal Home Loan Bank, Federal Reserve Bank and other stock |
|
28,368 |
|
|
435 |
6.08 |
|
|
26,221 |
|
|
344 |
5.26 |
|
| Total interest-earning deposits, investments and other interest-earning assets |
|
595,179 |
|
|
3,718 |
2.48 |
|
|
1,016,222 |
|
|
3,923 |
1.55 |
|
|
|
|
|
|
|
|
|
|
| Commercial, financial, and agricultural loans |
|
977,549 |
|
|
11,996 |
4.87 |
|
|
937,846 |
|
|
9,037 |
3.86 |
|
| Paycheck Protection Program loans |
|
3,754 |
|
|
40 |
4.23 |
|
|
7,644 |
|
|
155 |
8.13 |
|
| Real estate—commercial and construction loans |
|
3,105,821 |
|
|
34,100 |
4.36 |
|
|
3,004,509 |
|
|
28,527 |
3.81 |
|
| Real estate—residential loans |
|
1,256,509 |
|
|
12,492 |
3.94 |
|
|
1,166,201 |
|
|
10,758 |
3.70 |
|
| Loans to individuals |
|
27,197 |
|
|
381 |
5.56 |
|
|
26,782 |
|
|
305 |
4.57 |
|
| Municipal loans and leases * |
|
235,433 |
|
|
2,432 |
4.10 |
|
|
235,922 |
|
|
2,404 |
4.09 |
|
| Lease financings |
|
145,856 |
|
|
2,195 |
5.97 |
|
|
141,676 |
|
|
2,105 |
5.96 |
|
| Gross loans and leases |
|
5,752,119 |
|
|
63,636 |
4.39 |
|
|
5,520,580 |
|
|
53,291 |
3.87 |
|
| Total interest-earning assets |
|
6,347,298 |
|
|
67,354 |
4.21 |
|
|
6,536,802 |
|
|
57,214 |
3.51 |
|
| Cash and due from banks |
|
62,930 |
|
|
|
|
|
55,634 |
|
|
|
|
| Allowance for credit losses, loans and leases |
|
(72,355 |
) |
|
|
|
|
(68,426 |
) |
|
|
|
| Premises and equipment, net |
|
50,476 |
|
|
|
|
|
50,266 |
|
|
|
|
| Operating lease right-of-use assets |
|
30,740 |
|
|
|
|
|
30,222 |
|
|
|
|
| Other assets |
|
378,377 |
|
|
|
|
|
357,903 |
|
|
|
|
| Total assets |
$ |
6,797,466 |
|
|
|
|
$ |
6,962,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Interest-bearing checking deposits |
$ |
881,395 |
|
$ |
1,251 |
0.56 |
% |
$ |
851,324 |
|
$ |
570 |
0.27 |
% |
| Money market savings |
|
1,246,795 |
|
|
3,709 |
1.18 |
|
|
1,405,536 |
|
|
1,552 |
0.44 |
|
| Regular savings |
|
1,086,191 |
|
|
302 |
0.11 |
|
|
1,070,480 |
|
|
237 |
0.09 |
|
| Time deposits |
|
416,539 |
|
|
1,189 |
1.13 |
|
|
452,989 |
|
|
1,227 |
1.09 |
|
| Total time and interest-bearing deposits |
|
3,630,920 |
|
|
6,451 |
0.70 |
|
|
3,780,329 |
|
|
3,586 |
0.38 |
|
|
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
104,453 |
|
|
524 |
1.99 |
|
|
17,253 |
|
|
11 |
0.26 |
|
| Long-term debt |
|
95,000 |
|
|
324 |
1.35 |
|
|
95,000 |
|
|
321 |
1.36 |
|
| Subordinated notes |
|
99,065 |
|
|
1,328 |
5.32 |
|
|
98,988 |
|
|
1,328 |
5.38 |
|
| Total borrowings |
|
298,518 |
|
|
2,176 |
2.89 |
|
|
211,241 |
|
|
1,660 |
3.15 |
|
| Total interest-bearing liabilities |
|
3,929,438 |
|
|
8,627 |
0.87 |
|
|
3,991,570 |
|
|
5,246 |
0.53 |
|
| Noninterest-bearing deposits |
|
2,014,371 |
|
|
|
|
|
2,122,844 |
|
|
|
|
| Operating lease liabilities |
|
33,786 |
|
|
|
|
|
33,300 |
|
|
|
|
| Accrued expenses and other liabilities |
|
46,772 |
|
|
|
|
|
43,277 |
|
|
|
|
| Total liabilities |
|
6,024,367 |
|
|
|
|
|
6,190,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' Equity: |
|
|
|
|
|
|
|
|
| Common stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
| Additional paid-in capital |
|
299,135 |
|
|
|
|
|
298,241 |
|
|
|
|
| Retained earnings and other equity |
|
316,180 |
|
|
|
|
|
315,385 |
|
|
|
|
| Total shareholders' equity |
|
773,099 |
|
|
|
|
|
771,410 |
|
|
|
|
| Total liabilities and shareholders' equity |
$ |
6,797,466 |
|
|
|
|
$ |
6,962,401 |
|
|
|
|
| Net interest income |
|
|
|
$ |
58,727 |
|
|
|
$ |
51,968 |
|
|
|
|
|
|
|
|
|
|
|
| Net interest spread |
|
|
3.34 |
|
|
|
2.98 |
|
| Effect of net interest-free funding sources |
|
|
0.33 |
|
|
|
0.21 |
|
| Net interest margin |
|
|
3.67 |
% |
|
|
3.19 |
% |
| Ratio of average interest-earning assets to average interest-bearing liabilities |
|
161.53 |
% |
|
|
|
|
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 of $(498) thousand and $(618) thousand for the three months ended September 30, 2022 and June 30, 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, 2022 and June 30, 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 Three Months Ended September 30, |
|
|
|
| Tax Equivalent Basis |
2022 |
2021 |
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
| (Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
| Assets: |
|
|
|
|
|
|
|
|
| Interest-earning deposits with other banks |
$ |
49,476 |
|
$ |
252 |
2.02 |
% |
$ |
530,191 |
|
$ |
189 |
0.14 |
% |
| U.S. government obligations |
|
565 |
|
|
3 |
2.11 |
|
|
6,999 |
|
|
36 |
2.04 |
|
| Obligations of state and political subdivisions* |
|
2,308 |
|
|
18 |
3.09 |
|
|
2,992 |
|
|
24 |
3.18 |
|
| Other debt and equity securities |
|
514,462 |
|
|
3,010 |
2.32 |
|
|
385,289 |
|
|
1,516 |
1.56 |
|
| Federal Home Loan Bank, Federal Reserve Bank and other stock |
|
28,368 |
|
|
435 |
6.08 |
|
|
26,713 |
|
|
334 |
4.96 |
|
| Total interest-earning deposits, investments and other interest-earning assets |
|
595,179 |
|
|
3,718 |
2.48 |
|
|
952,184 |
|
|
2,099 |
0.87 |
|
|
|
|
|
|
|
|
|
|
| Commercial, financial, and agricultural loans |
|
977,549 |
|
|
11,996 |
4.87 |
|
|
880,986 |
|
|
7,412 |
3.34 |
|
| Paycheck Protection Program loans |
|
3,754 |
|
|
40 |
4.23 |
|
|
162,611 |
|
|
4,162 |
10.15 |
|
| Real estate—commercial and construction loans |
|
3,105,821 |
|
|
34,100 |
4.36 |
|
|
2,784,398 |
|
|
25,634 |
3.65 |
|
| Real estate—residential loans |
|
1,256,509 |
|
|
12,492 |
3.94 |
|
|
1,100,799 |
|
|
10,171 |
3.67 |
|
| Loans to individuals |
|
27,197 |
|
|
381 |
5.56 |
|
|
26,048 |
|
|
253 |
3.85 |
|
| Municipal loans and leases* |
|
235,433 |
|
|
2,432 |
4.10 |
|
|
247,603 |
|
|
2,504 |
4.01 |
|
| Lease financings |
|
145,856 |
|
|
2,195 |
5.97 |
|
|
117,966 |
|
|
1,856 |
6.24 |
|
| Gross loans and leases |
|
5,752,119 |
|
|
63,636 |
4.39 |
|
|
5,320,411 |
|
|
51,992 |
3.88 |
|
| Total interest-earning assets |
|
6,347,298 |
|
|
67,354 |
4.21 |
|
|
6,272,595 |
|
|
54,091 |
3.42 |
|
| Cash and due from banks |
|
62,930 |
|
|
|
|
|
59,642 |
|
|
|
|
| Allowance for credit losses, loans and leases |
|
(72,355 |
) |
|
|
|
|
(72,606 |
) |
|
|
|
| Premises and equipment, net |
|
50,476 |
|
|
|
|
|
55,685 |
|
|
|
|
| Operating lease right-of-use assets |
|
30,740 |
|
|
|
|
|
31,998 |
|
|
|
|
| Other assets |
|
378,377 |
|
|
|
|
|
350,863 |
|
|
|
|
| Total assets |
$ |
6,797,466 |
|
|
|
|
$ |
6,698,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Interest-bearing checking deposits |
$ |
881,395 |
|
$ |
1,251 |
0.56 |
% |
$ |
857,098 |
|
$ |
537 |
0.25 |
% |
| Money market savings |
|
1,246,795 |
|
|
3,709 |
1.18 |
|
|
1,382,832 |
|
|
922 |
0.26 |
|
| Regular savings |
|
1,086,191 |
|
|
302 |
0.11 |
|
|
998,568 |
|
|
281 |
0.11 |
|
| Time deposits |
|
416,539 |
|
|
1,189 |
1.13 |
|
|
496,702 |
|
|
1,490 |
1.19 |
|
| Total time and interest-bearing deposits |
|
3,630,920 |
|
|
6,451 |
0.70 |
|
|
3,735,200 |
|
|
3,230 |
0.34 |
|
|
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
104,453 |
|
|
524 |
1.99 |
|
|
15,116 |
|
|
2 |
0.05 |
|
| Long-term debt |
|
95,000 |
|
|
324 |
1.35 |
|
|
95,000 |
|
|
324 |
1.35 |
|
| Subordinated notes |
|
99,065 |
|
|
1,328 |
5.32 |
|
|
98,754 |
|
|
1,328 |
5.34 |
|
| Total borrowings |
|
298,518 |
|
|
2,176 |
2.89 |
|
|
208,870 |
|
|
1,654 |
3.14 |
|
| Total interest-bearing liabilities |
|
3,929,438 |
|
|
8,627 |
0.87 |
|
|
3,944,070 |
|
|
4,884 |
0.49 |
|
| Noninterest-bearing deposits |
|
2,014,371 |
|
|
|
|
|
1,931,525 |
|
|
|
|
| Operating lease liabilities |
|
33,786 |
|
|
|
|
|
35,094 |
|
|
|
|
| Accrued expenses and other liabilities |
|
46,772 |
|
|
|
|
|
41,303 |
|
|
|
|
| Total liabilities |
|
6,024,367 |
|
|
|
|
|
5,951,992 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' Equity: |
|
|
|
|
|
|
|
|
| Common stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
| Additional paid-in capital |
|
299,135 |
|
|
|
|
|
297,482 |
|
|
|
|
| Retained earnings and other equity |
|
316,180 |
|
|
|
|
|
290,919 |
|
|
|
|
| Total shareholders' equity |
|
773,099 |
|
|
|
|
|
746,185 |
|
|
|
|
| Total liabilities and shareholders' equity |
$ |
6,797,466 |
|
|
|
|
$ |
6,698,177 |
|
|
|
|
| Net interest income |
|
|
|
$ |
58,727 |
|
|
|
$ |
49,207 |
|
|
|
|
|
|
|
|
|
|
|
| Net interest spread |
|
|
3.34 |
|
|
|
2.93 |
|
| Effect of net interest-free funding sources |
|
|
0.33 |
|
|
|
0.18 |
|
| Net interest margin |
|
|
3.67 |
% |
|
|
3.11 |
% |
| Ratio of average interest-earning assets to average interest-bearing liabilities |
|
161.53 |
% |
|
|
|
|
159.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| * 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) fees of $(498) thousand and $3.0 million for the three months ended September 30, 2022 and 2021, 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, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%. |
|
|
|
|
|
|
|
|
|
| Univest Financial Corporation |
|
| Average Balances and Interest Rates (Unaudited) |
|
|
|
For the Nine Months Ended September 30, |
|
|
| Tax Equivalent Basis |
2022 |
2021 |
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
| (Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
| Assets: |
|
|
|
|
|
|
|
|
| Interest-earning deposits with other banks |
$ |
416,466 |
|
$ |
1,433 |
0.46 |
% |
$ |
328,768 |
|
$ |
291 |
0.12 |
% |
| U.S. government obligations |
|
2,578 |
|
|
40 |
2.07 |
|
|
6,999 |
|
|
107 |
2.04 |
|
| Obligations of state and political subdivisions* |
|
2,314 |
|
|
54 |
3.12 |
|
|
6,838 |
|
|
187 |
3.66 |
|
| Other debt and equity securities |
|
513,491 |
|
|
8,076 |
2.10 |
|
|
371,355 |
|
|
4,147 |
1.49 |
|
| Federal Home Loan Bank, Federal Reserve Bank and other stock |
|
27,239 |
|
|
1,134 |
5.57 |
|
|
26,319 |
|
|
1,042 |
5.29 |
|
| Total interest-earning deposits, investments and other interest-earning assets |
|
962,088 |
|
|
10,737 |
1.49 |
|
|
740,279 |
|
|
5,774 |
1.04 |
|
|
|
|
|
|
|
|
|
|
| Commercial, financial, and agricultural loans |
|
939,261 |
|
|
28,604 |
4.07 |
|
|
830,248 |
|
|
21,120 |
3.40 |
|
| Paycheck Protection Program loans |
|
9,880 |
|
|
786 |
10.64 |
|
|
358,231 |
|
|
13,464 |
5.03 |
|
| Real estate—commercial and construction loans |
|
3,005,714 |
|
|
88,447 |
3.93 |
|
|
2,703,100 |
|
|
75,023 |
3.71 |
|
| Real estate—residential loans |
|
1,180,202 |
|
|
33,132 |
3.75 |
|
|
1,067,855 |
|
|
29,880 |
3.74 |
|
| Loans to individuals |
|
26,598 |
|
|
924 |
4.64 |
|
|
25,925 |
|
|
769 |
3.97 |
|
| Municipal loans and leases* |
|
237,928 |
|
|
7,270 |
4.09 |
|
|
248,191 |
|
|
7,632 |
4.11 |
|
| Lease financings |
|
141,041 |
|
|
6,375 |
6.04 |
|
|
111,569 |
|
|
5,412 |
6.49 |
|
| Gross loans and leases |
|
5,540,624 |
|
|
165,538 |
3.99 |
|
|
5,345,119 |
|
|
153,300 |
3.83 |
|
| Total interest-earning assets |
|
6,502,712 |
|
|
176,275 |
3.62 |
|
|
6,085,398 |
|
|
159,074 |
3.49 |
|
| Cash and due from banks |
|
57,455 |
|
|
|
|
|
55,983 |
|
|
|
|
| Allowance for credit losses, loans and leases |
|
(70,950 |
) |
|
|
|
|
(76,265 |
) |
|
|
|
| Premises and equipment, net |
|
51,551 |
|
|
|
|
|
55,803 |
|
|
|
|
| Operating lease right-of-use assets |
|
30,453 |
|
|
|
|
|
33,334 |
|
|
|
|
| Other assets |
|
363,810 |
|
|
|
|
|
355,323 |
|
|
|
|
| Total assets |
$ |
6,935,031 |
|
|
|
|
$ |
6,509,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Interest-bearing checking deposits |
$ |
871,393 |
|
$ |
2,264 |
0.35 |
% |
$ |
820,800 |
|
$ |
1,514 |
0.25 |
% |
| Money market savings |
|
1,397,220 |
|
|
6,165 |
0.59 |
|
|
1,282,470 |
|
|
2,606 |
0.27 |
|
| Regular savings |
|
1,059,644 |
|
|
777 |
0.10 |
|
|
979,013 |
|
|
861 |
0.12 |
|
| Time deposits |
|
447,497 |
|
|
3,722 |
1.11 |
|
|
502,414 |
|
|
4,808 |
1.28 |
|
| Total time and interest-bearing deposits |
|
3,775,754 |
|
|
12,928 |
0.46 |
|
|
3,584,697 |
|
|
9,789 |
0.37 |
|
|
|
|
|
|
|
|
|
|
| Short-term borrowings |
|
46,765 |
|
|
537 |
1.54 |
|
|
17,363 |
|
|
7 |
0.05 |
|
| Long-term debt |
|
95,000 |
|
|
962 |
1.35 |
|
|
97,088 |
|
|
993 |
1.37 |
|
| Subordinated notes |
|
98,989 |
|
|
3,984 |
5.38 |
|
|
151,060 |
|
|
5,822 |
5.15 |
|
| Total borrowings |
|
240,754 |
|
|
5,483 |
3.04 |
|
|
265,511 |
|
|
6,822 |
3.44 |
|
| Total interest-bearing liabilities |
|
4,016,508 |
|
|
18,411 |
0.61 |
|
|
3,850,208 |
|
|
16,611 |
0.58 |
|
| Noninterest-bearing deposits |
|
2,067,428 |
|
|
|
|
|
1,854,648 |
|
|
|
|
| Operating lease liabilities |
|
33,514 |
|
|
|
|
|
36,636 |
|
|
|
|
| Accrued expenses and other liabilities |
|
44,630 |
|
|
|
|
|
43,023 |
|
|
|
|
| Total liabilities |
|
6,162,080 |
|
|
|
|
|
5,784,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' Equity: |
|
|
|
|
|
|
|
|
| Common stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
| Additional paid-in capital |
|
298,784 |
|
|
|
|
|
296,744 |
|
|
|
|
| Retained earnings and other equity |
|
316,383 |
|
|
|
|
|
270,533 |
|
|
|
|
| Total shareholders' equity |
|
772,951 |
|
|
|
|
|
725,061 |
|
|
|
|
| Total liabilities and shareholders' equity |
$ |
6,935,031 |
|
|
|
|
$ |
6,509,576 |
|
|
|
|
| Net interest income |
|
|
|
$ |
157,864 |
|
|
|
$ |
142,463 |
|
|
|
|
|
|
|
|
|
|
|
| Net interest spread |
|
|
3.01 |
|
|
|
2.91 |
|
| Effect of net interest-free funding sources |
|
|
0.24 |
|
|
|
0.22 |
|
| Net interest margin |
|
|
3.25 |
% |
|
|
3.13 |
% |
| Ratio of average interest-earning assets to average interest-bearing liabilities |
|
161.90 |
% |
|
|
|
|
158.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| * 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) fees of $(1.3) million and $8.0 million for the nine months ended September 30, 2022 and 2021, 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, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%. |
|
|
| Univest Financial Corporation |
|
| Loan Portfolio Overview (Unaudited) |
|
| September 30, 2022 |
|
|
|
|
|
|
|
|
| (Dollars in thousands) |
|
|
|
|
|
|
| Industry Description |
|
Total Outstanding Balance
(excl PPP) |
|
% of Commercial Loan
Portfolio |
|
|
| CRE - Retail |
$ |
378,087 |
|
7.9 |
% |
|
| Animal Production |
|
332,130 |
|
7.0 |
|
|
| CRE - Multi-family |
|
263,698 |
|
5.5 |
|
|
| CRE - 1-4 Family Residential Investment |
|
249,149 |
|
5.2 |
|
|
| CRE - Office |
|
201,659 |
|
4.2 |
|
|
| CRE - Industrial / Warehouse |
|
185,952 |
|
3.9 |
|
|
| Hotels & Motels (Accommodation) |
|
170,627 |
|
3.6 |
|
|
| Nursing and Residential Care Facilities |
|
168,576 |
|
3.5 |
|
|
| Education |
|
155,122 |
|
3.3 |
|
|
| Specialty Trade Contractors |
|
147,227 |
|
3.1 |
|
|
| Homebuilding (tract developers, remodelers) |
|
133,902 |
|
2.8 |
|
|
| Motor Vehicle and Parts Dealers |
|
113,639 |
|
2.4 |
|
|
| Merchant Wholesalers, Durable Goods |
|
108,825 |
|
2.3 |
|
|
| CRE - Medical Office |
|
105,744 |
|
2.2 |
|
|
| CRE - Mixed-Use - Residential |
|
105,702 |
|
2.2 |
|
|
| Crop Production |
|
91,597 |
|
1.9 |
|
|
| CRE - Mixed-Use - Commercial |
|
85,172 |
|
1.8 |
|
|
| Food Manufacturing |
|
84,131 |
|
1.8 |
|
|
| Wood Product Manufacturing |
|
75,768 |
|
1.6 |
|
|
| Rental and Leasing Services |
|
74,514 |
|
1.6 |
|
|
| Administrative and Support Services |
|
73,558 |
|
1.5 |
|
|
| Religious Organizations, Advocacy Groups |
|
73,091 |
|
1.5 |
|
|
| Merchant Wholesalers, Nondurable Goods |
|
70,679 |
|
1.5 |
|
|
| Food Services and Drinking Places |
|
70,498 |
|
1.5 |
|
|
| Personal and Laundry Services |
|
60,651 |
|
1.3 |
|
|
| Fabricated Metal Product Manufacturing |
|
56,640 |
|
1.2 |
|
|
| Repair and Maintenance |
|
56,623 |
|
1.2 |
|
|
| Miniwarehouse / Self-Storage |
|
56,279 |
|
1.2 |
|
|
| Truck Transportation |
|
50,969 |
|
1.1 |
|
|
| Industries with >$50 million in outstandings |
$ |
3,800,209 |
|
79.8 |
% |
|
| Industries with <$50 million in outstandings |
$ |
962,480 |
|
20.2 |
% |
|
| Total Commercial Loans |
$ |
4,762,689 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consumer Loans and Lease Financings |
|
Total Outstanding Balance |
|
|
|
|
| Real Estate-Residential Secured for Personal Purpose |
$ |
685,771 |
|
|
|
|
| Real Estate-Home Equity Secured for Personal Purpose |
|
175,843 |
|
|
|
|
| Loans to Individuals |
|
26,679 |
|
|
|
|
| Lease Financings |
|
196,070 |
|
|
|
|
| Total - Consumer Loans and Lease Financings |
$ |
1,084,363 |
|
|
|
|
|
|
|
|
|
|
|
| Total |
$ |
5,847,052 |
|
|
|
|
|
|
|
|
|
|
|
| Univest Financial Corporation |
| Non-GAAP Reconciliation |
| September 30, 2022 |
|
|
| 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 nine months ended, |
| (Dollars in thousands) |
09/30/22 |
|
06/30/22 |
|
03/31/22 |
|
12/31/21 |
|
09/30/21 |
|
09/30/22 |
|
09/30/21 |
| Net income |
$ |
20,801 |
|
|
$ |
13,166 |
|
|
$ |
20,317 |
|
|
$ |
17,412 |
|
|
$ |
20,911 |
|
|
$ |
54,284 |
|
|
$ |
74,389 |
|
| Amortization of intangibles, net of tax |
|
244 |
|
|
|
270 |
|
|
|
269 |
|
|
|
211 |
|
|
|
169 |
|
|
|
784 |
|
|
|
562 |
|
| Net income before amortization of intangibles |
$ |
21,045 |
|
|
$ |
13,436 |
|
|
$ |
20,586 |
|
|
$ |
17,623 |
|
|
$ |
21,080 |
|
|
$ |
55,068 |
|
|
$ |
74,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity |
$ |
754,187 |
|
|
$ |
763,925 |
|
|
$ |
773,855 |
|
|
$ |
773,794 |
|
|
$ |
756,023 |
|
|
$ |
754,187 |
|
|
$ |
756,023 |
|
| Goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(172,559 |
) |
|
|
(175,510 |
) |
|
|
(172,559 |
) |
| Other intangibles (a) |
|
|
(3,485 |
) |
|
|
(3,678 |
) |
|
|
(3,936 |
) |
|
|
(4,210 |
) |
|
|
(1,922 |
) |
|
|
(3,485 |
) |
|
|
(1,922 |
) |
| Tangible common equity |
$ |
575,192 |
|
|
$ |
584,737 |
|
|
$ |
594,409 |
|
|
$ |
594,074 |
|
|
$ |
581,542 |
|
|
$ |
575,192 |
|
|
$ |
581,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
6,907,397 |
|
|
$ |
6,700,813 |
|
|
$ |
7,107,740 |
|
|
$ |
7,122,421 |
|
|
$ |
6,979,852 |
|
|
$ |
6,907,397 |
|
|
$ |
6,979,852 |
|
| Goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(172,559 |
) |
|
|
(175,510 |
) |
|
|
(172,559 |
) |
| Other intangibles (a) |
|
|
(3,485 |
) |
|
|
(3,678 |
) |
|
|
(3,936 |
) |
|
|
(4,210 |
) |
|
|
(1,922 |
) |
|
|
(3,485 |
) |
|
|
(1,922 |
) |
| Tangible assets |
$ |
6,728,402 |
|
|
$ |
6,521,625 |
|
|
$ |
6,928,294 |
|
|
$ |
6,942,701 |
|
|
$ |
6,805,371 |
|
|
$ |
6,728,402 |
|
|
$ |
6,805,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average shareholders' equity |
$ |
773,099 |
|
|
$ |
771,410 |
|
|
$ |
774,358 |
|
|
$ |
762,334 |
|
|
$ |
746,185 |
|
|
$ |
772,951 |
|
|
$ |
725,061 |
|
| Average goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(173,553 |
) |
|
|
(172,559 |
) |
|
|
(175,510 |
) |
|
|
(172,559 |
) |
| Average other intangibles (a) |
|
|
(3,550 |
) |
|
|
(3,791 |
) |
|
|
(4,090 |
) |
|
|
(2,696 |
) |
|
|
(1,983 |
) |
|
|
(3,808 |
) |
|
|
(2,217 |
) |
| Average tangible common equity |
$ |
594,039 |
|
|
$ |
592,109 |
|
|
$ |
594,758 |
|
|
$ |
586,085 |
|
|
$ |
571,643 |
|
|
$ |
593,633 |
|
|
$ |
550,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans and leases held for investment, gross |
$ |
5,849,259 |
|
|
$ |
5,661,777 |
|
|
$ |
5,400,786 |
|
|
$ |
5,310,017 |
|
|
$ |
5,252,045 |
|
|
$ |
5,849,259 |
|
|
$ |
5,252,045 |
|
| Paycheck Protection Program ("PPP") loans |
|
|
(2,207 |
) |
|
|
(5,358 |
) |
|
|
(10,298 |
) |
|
|
(31,748 |
) |
|
|
(85,601 |
) |
|
|
(2,207 |
) |
|
|
(85,601 |
) |
| Gross loans and leases excluding PPP loans |
$ |
5,847,052 |
|
|
$ |
5,656,419 |
|
|
$ |
5,390,488 |
|
|
$ |
5,278,269 |
|
|
$ |
5,166,444 |
|
|
$ |
5,847,052 |
|
|
$ |
5,166,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) Amount does not include mortgage servicing rights |
CONTACT: Brian J. Richardson UNIVEST FINANCIAL CORPORATION Chief Financial Officer 215-721-2446, richardsonb@univest.net
