Univest Financial Corporation Reports Third Quarter Results

Univest Financial Corporation
Univest Financial Corporation

SOUDERTON, Pa., Oct. 25, 2023 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the "Bank") and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2023 was $17.0 million, or $0.58 diluted earnings per share, compared to net income of $20.8 million, or $0.71 diluted earnings per share, for the quarter ended September 30, 2022.

Loans
Gross loans and leases increased $112.7 million, or 1.7% (7.0% annualized), from June 30, 2023, primarily due to increases in commercial, commercial real estate, construction and residential mortgage loans. Gross loans and leases increased $451.7 million, or 7.4% (9.8% annualized), from December 31, 2022, primarily due to increases in commercial real estate, construction, residential mortgage loans and lease financings.

Deposits and Liquidity
Total deposits increased $451.8 million, or 7.5% (30.2% annualized), from June 30, 2023 and $525.6 million, or 8.9% (11.9% annualized), from December 31, 2022. The increase from June 30, 2023 was primarily due to seasonal increases in public funds partially offset by decreases in commercial and consumer deposits. The increase from December 31, 2022 was primarily due to increases in brokered deposits and seasonal public funds deposits partially offset by decreases in commercial and consumer deposits. Noninterest-bearing deposits represented 22.2% of total deposits at September 30, 2023, down from 26.4% at June 30, 2023. At September 30, 2023, unprotected deposits, which excludes insured accounts, internal accounts, and collateralized trust accounts, represented 20.8% of total deposits, down from 23.3% at June 30, 2023.

As of September 30, 2023, the Corporation had cash and cash equivalents totaling $290.3 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.3 billion at September 30, 2023, of which $1.7 billion was available. The Corporation and its subsidiaries also maintained unused uncommitted funding sources from correspondent banks of $369.0 million at September 30, 2023. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Net Interest Income and Margin
Net interest income of $53.6 million for the three months ended September 30, 2023 decreased $740 thousand, or 1.4%, from the three months ended June 30, 2023, and $4.7 million, or 8.0%, from the three months ended September 30, 2022. The decrease in net interest income for both comparison periods was due to increases in the cost of funds and the average balance of interest-bearing liabilities, partially offset by an increase in the yield and average balance of interest-earning assets.

Net interest margin, on a tax-equivalent basis, was 2.96% for the third quarter of 2023, compared to 3.14% for the second quarter of 2023 and 3.67% for the third quarter of 2022. Excess liquidity reduced net interest margin by approximately four basis points for the quarter ended September 30, 2023, and approximately one basis point for the quarter ended September 30, 2022. Excess liquidity had no impact on the quarter ended June 30, 2023.

Noninterest Income
Noninterest income for the quarter ended September 30, 2023 was $18.7 million, an increase of $732 thousand, or 4.1%, compared to the third quarter of 2022.

Investment advisory commission and fee income increased $644 thousand, or 15.3%, for the quarter ended September 30, 2023, primarily due to new customer relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance. Insurance commission and fee income increased $410 thousand, or 9.2%, for the quarter ended September 30, 2023, primarily due to increased revenue from commercial lines. Net gain on mortgage banking activities increased $399 thousand, or 48.8%, for the quarter ended September 30, 2023, due to increased volume.

Bank owned life insurance ("BOLI") decreased $347 thousand, or 30.1%, for the quarter ended September 30, 2023, primarily due to a death benefit claim of $446 thousand received in the third quarter of 2022. Other income decreased $639 thousand, or 73.7%, for the quarter ended September 30, 2023, primarily due to a $412 thousand decrease in the gain on sale of Small Business Administration ("SBA") loans.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2023 was $49.0 million, an increase of $2.3 million, or 5.0%, compared to the third quarter of 2022.

Salaries, benefits and commissions increased $578 thousand, or 2.0%, for the quarter ended September 30, 2023. This increase reflects our expansion into Maryland and Western Pennsylvania and annual merit increases, increases in medical claims expense and decreases in compensation capitalized driven by lower loan production, offset by decreases due to the staff reduction that was announced during the second quarter and a reduction in incentive compensation due to decreased profitability.

Deposit insurance premiums increased $596 thousand, or 90.0%, for the quarter ended September 30, 2023, primarily driven by an increased industry-wide assessment rate and an increase in our assessment base.

Other expense increased $1.5 million, or 26.7%, for the quarter ended September 30, 2023, primarily due to increases in retirement plan costs of $527 thousand. Other increases included $324 thousand of loan processing and workout fees. Federal Home Loan Bank letter of credit fees increased by $138 thousand due to increased public fund deposits and related collateral costs.

Professional fees decreased $758 thousand, or 30.1%, for the quarter ended September 30, 2023, primarily due to consultant fees incurred in the third quarter of 2022 related to our digital transformation initiative.

Tax Provision
The effective income tax rate was 20.0% for the quarters ended September 30, 2023 and 2022. The effective tax rates for the three months ended September 30, 2023 and 2022 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $40.1 million at September 30, 2023, compared to $34.5 million at June 30, 2023 and $33.0 million at September 30, 2022. On October 16, 2023, a $5.8 million loan was sold at par. This loan was classified as nonperforming at September 30, 2023.

Net loan and lease charge-offs were $969 thousand for the three months ended September 30, 2023 compared to $512 thousand and $1.2 million for the three months ended June 30, 2023 and September 30, 2022, respectively.

The provision for credit losses was $2.0 million for the three months ended September 30, 2023 compared to $3.4 million and $3.6 million for the three months ended June 30, 2023 and September 30, 2022, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2023, June 30, 2023 and September 30, 2022.

Dividend
On October 25, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 22, 2023 to shareholders of record as of November 8, 2023.

Conference Call
Univest will host a conference call to discuss third quarter 2023 results on Thursday, October 26, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=05f2e363&confId=56351. The general public can access the call by dialing 1-833-470-1428; using Access Code 988711. A replay of the conference call will be available through November 23, 2023 by dialing 1-866-813-9403; using Access Code 428932.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.8 billion in assets and $4.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2023. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.

This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) changes in economic conditions nationally and in our market; (6) economic assumptions that may impact our allowance for credit losses calculation; (7) legislative, regulatory, accounting or tax changes; (8) technological issues that may adversely affect our operations or those of our customers; (9) changes in the securities markets; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (11) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (12) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP - ER)


Univest Financial Corporation

Consolidated Selected Financial Data (Unaudited)

September 30, 2023

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period End)

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

68,900

 

 

$

80,795

 

 

$

71,215

 

 

$

84,176

 

 

$

65,859

 

 

 

 

 

Interest-earning deposits with other banks

 

 

221,441

 

 

 

59,616

 

 

 

67,109

 

 

 

68,623

 

 

 

47,451

 

 

 

 

 

Cash and cash equivalents

 

 

290,341

 

 

 

140,411

 

 

 

138,324

 

 

 

152,799

 

 

 

113,310

 

 

 

 

 

Investment securities held-to-maturity

 

 

149,451

 

 

 

153,509

 

 

 

151,347

 

 

 

154,727

 

 

 

159,170

 

 

 

 

 

Investment securities available for sale, net of allowance for credit losses

 

 

334,538

 

 

 

356,164

 

 

 

367,656

 

 

 

350,256

 

 

 

347,479

 

 

 

 

 

Investments in equity securities

 

 

4,054

 

 

 

3,443

 

 

 

3,105

 

 

 

2,579

 

 

 

2,994

 

 

 

 

 

Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost

 

 

42,417

 

 

 

42,811

 

 

 

43,792

 

 

 

33,841

 

 

 

29,475

 

 

 

 

 

Loans held for sale

 

 

16,473

 

 

 

29,526

 

 

 

5,425

 

 

 

5,037

 

 

 

9,087

 

 

 

 

 

Loans and leases held for investment

 

 

6,574,958

 

 

 

6,462,238

 

 

 

6,239,804

 

 

 

6,123,230

 

 

 

5,849,259

 

 

 

 

 

Less: Allowance for credit losses, loans and leases

 

 

(83,837

)

 

 

(82,709

)

 

 

(80,034

)

 

 

(79,004

)

 

 

(74,929

)

 

 

 

 

Net loans and leases held for investment

 

 

6,491,121

 

 

 

6,379,529

 

 

 

6,159,770

 

 

 

6,044,226

 

 

 

5,774,330

 

 

 

 

 

Premises and equipment, net

 

 

51,287

 

 

 

52,058

 

 

 

52,334

 

 

 

50,939

 

 

 

50,533

 

 

 

 

 

Operating lease right-of-use assets

 

 

31,053

 

 

 

30,237

 

 

 

31,663

 

 

 

30,059

 

 

 

30,654

 

 

 

 

 

Goodwill

 

 

175,510

 

 

 

175,510

 

 

 

175,510

 

 

 

175,510

 

 

 

175,510

 

 

 

 

 

Other intangibles, net of accumulated amortization

 

 

11,079

 

 

 

10,923

 

 

 

11,044

 

 

 

11,384

 

 

 

11,650

 

 

 

 

 

Bank owned life insurance

 

 

130,522

 

 

 

129,715

 

 

 

128,926

 

 

 

120,297

 

 

 

120,035

 

 

 

 

 

Accrued interest and other assets

 

 

100,220

 

 

 

96,314

 

 

 

90,095

 

 

 

90,362

 

 

 

83,170

 

 

 

 

 

Total assets

 

$

7,828,066

 

 

$

7,600,150

 

 

$

7,358,991

 

 

$

7,222,016

 

 

$

6,907,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,432,559

 

 

$

1,582,767

 

 

$

1,799,225

 

 

$

2,047,263

 

 

$

1,968,422

 

 

 

 

 

Interest-bearing deposits:

 

 

5,006,606

 

 

 

4,404,635

 

 

 

4,035,432

 

 

 

3,866,263

 

 

 

3,818,554

 

 

 

 

 

Total deposits

 

 

6,439,165

 

 

 

5,987,402

 

 

 

5,834,657

 

 

 

5,913,526

 

 

 

5,786,976

 

 

 

 

 

Short-term borrowings

 

 

14,676

 

 

 

244,666

 

 

 

271,881

 

 

 

197,141

 

 

 

80,711

 

 

 

 

 

Long-term debt

 

 

320,000

 

 

 

320,000

 

 

 

220,000

 

 

 

95,000

 

 

 

95,000

 

 

 

 

 

Subordinated notes

 

 

148,636

 

 

 

148,510

 

 

 

148,385

 

 

 

148,260

 

 

 

99,107

 

 

 

 

 

Operating lease liabilities

 

 

34,017

 

 

 

33,428

 

 

 

34,846

 

 

 

33,153

 

 

 

33,718

 

 

 

 

 

Accrued expenses and other liabilities

 

 

64,374

 

 

 

60,922

 

 

 

50,726

 

 

 

58,436

 

 

 

57,698

 

 

 

 

 

Total liabilities

 

 

7,020,868

 

 

 

6,794,928

 

 

 

6,560,495

 

 

 

6,445,516

 

 

 

6,153,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued

 

 

157,784

 

 

 

157,784

 

 

 

157,784

 

 

 

157,784

 

 

 

157,784

 

 

 

 

 

Additional paid-in capital

 

 

300,171

 

 

 

299,212

 

 

 

298,167

 

 

 

300,808

 

 

 

299,791

 

 

 

 

 

Retained earnings

 

 

464,634

 

 

 

453,806

 

 

 

443,493

 

 

 

428,637

 

 

 

410,942

 

 

 

 

 

Accumulated other comprehensive loss, net of tax benefit

 

 

(71,586

)

 

 

(61,034

)

 

 

(55,550

)

 

 

(62,104

)

 

 

(64,985

)

 

 

 

 

Treasury stock, at cost

 

 

(43,805

)

 

 

(44,546

)

 

 

(45,398

)

 

 

(48,625

)

 

 

(49,345

)

 

 

 

 

Total shareholders’ equity

 

 

807,198

 

 

 

805,222

 

 

 

798,496

 

 

 

776,500

 

 

 

754,187

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,828,066

 

 

$

7,600,150

 

 

$

7,358,991

 

 

$

7,222,016

 

 

$

6,907,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the nine months ended,

Balance Sheet (Average)

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

09/30/23

 

09/30/22

Assets

 

$

7,693,983

 

 

$

7,440,798

 

 

$

7,219,211

 

 

$

7,019,381

 

 

$

6,797,466

 

 

$

7,453,070

 

$

6,935,031

Investment securities, net of allowance for credit losses

 

 

506,341

 

 

 

518,995

 

 

 

515,880

 

 

 

505,717

 

 

 

517,335

 

 

 

513,704

 

 

518,383

Loans and leases, gross

 

 

6,537,169

 

 

 

6,372,342

 

 

 

6,164,890

 

 

 

5,979,581

 

 

 

5,752,119

 

 

 

6,359,498

 

 

5,540,624

Deposits

 

 

6,222,710

 

 

 

5,844,582

 

 

 

5,834,415

 

 

 

5,837,823

 

 

 

5,645,291

 

 

 

5,968,659

 

 

5,843,182

Shareholders' equity

 

 

811,515

 

 

 

806,709

 

 

 

789,153

 

 

 

767,192

 

 

 

773,099

 

 

 

802,541

 

 

772,951

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Univest Financial Corporation

 

Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)

 

September 30, 2023

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Major Loan and Lease Categories (Period End)

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

 

 

 

 

Commercial, financial and agricultural

 

$

1,050,004

 

 

$

1,039,265

 

 

$

1,032,753

 

 

$

1,088,928

 

 

$

1,054,940

 

 

 

 

 

 

Real estate-commercial

 

 

3,275,140

 

 

 

3,221,993

 

 

 

3,128,210

 

 

 

3,027,955

 

 

 

2,936,204

 

 

 

 

 

 

Real estate-construction

 

 

427,561

 

 

 

413,404

 

 

 

376,569

 

 

 

381,811

 

 

 

329,915

 

 

 

 

 

 

Real estate-residential secured for business purpose

 

 

516,471

 

 

 

517,521

 

 

 

498,505

 

 

 

478,254

 

 

 

443,837

 

 

 

 

 

 

Real estate-residential secured for personal purpose

 

 

861,122

 

 

 

832,632

 

 

 

779,557

 

 

 

730,395

 

 

 

685,771

 

 

 

 

 

 

Real estate-home equity secured for personal purpose

 

 

176,855

 

 

 

175,090

 

 

 

172,073

 

 

 

176,699

 

 

 

175,843

 

 

 

 

 

 

Loans to individuals

 

 

27,331

 

 

 

25,544

 

 

 

28,656

 

 

 

27,873

 

 

 

26,679

 

 

 

 

 

 

Lease financings

 

 

240,474

 

 

 

236,789

 

 

 

223,481

 

 

 

211,315

 

 

 

196,070

 

 

 

 

 

 

Total loans and leases held for investment, net of deferred income

 

 

6,574,958

 

 

 

6,462,238

 

 

 

6,239,804

 

 

 

6,123,230

 

 

 

5,849,259

 

 

 

 

 

 

Less: Allowance for credit losses, loans and leases

 

 

(83,837

)

 

 

(82,709

)

 

 

(80,034

)

 

 

(79,004

)

 

 

(74,929

)

 

 

 

 

 

Net loans and leases held for investment

 

$

6,491,121

 

 

$

6,379,529

 

 

$

6,159,770

 

 

$

6,044,226

 

 

$

5,774,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data (Period End)

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

 

 

 

 

Nonaccrual loans and leases, including nonaccrual loans held for sale*

 

$

18,085

 

 

$

15,087

 

 

$

11,362

 

 

$

13,353

 

 

$

13,620

 

 

 

 

 

 

Accruing loans and leases 90 days or more past due

 

 

2,135

 

 

 

55

 

 

 

1,996

 

 

 

875

 

 

 

416

 

 

 

 

 

 

Total nonperforming loans and leases

 

 

20,220

 

 

 

15,142

 

 

 

13,358

 

 

 

14,228

 

 

 

14,036

 

 

 

 

 

 

Other real estate owned

 

 

19,916

 

 

 

19,345

 

 

 

19,000

 

 

 

19,258

 

 

 

18,960

 

 

 

 

 

 

Total nonperforming assets

 

$

40,136

 

 

$

34,487

 

 

$

32,358

 

 

$

33,486

 

 

$

32,996

 

 

 

 

 

 

Nonaccrual loans and leases / Loans and leases held for investment

 

 

0.28

%

 

 

0.23

%

 

 

0.18

%

 

 

0.22

%

 

 

0.23

%

 

 

 

 

 

Nonperforming loans and leases / Loans and leases held for investment

 

 

0.31

%

 

 

0.23

%

 

 

0.21

%

 

 

0.23

%

 

 

0.24

%

 

 

 

 

 

Nonperforming assets / Total assets

 

 

0.51

%

 

 

0.45

%

 

 

0.44

%

 

 

0.46

%

 

 

0.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses, loans and leases

 

$

83,837

 

 

$

82,709

 

 

$

80,034

 

 

$

79,004

 

 

$

74,929

 

 

 

 

 

 

Allowance for credit losses, loans and leases / Loans and leases held for investment

 

 

1.28

%

 

 

1.28

%

 

 

1.28

%

 

 

1.29

%

 

 

1.28

%

 

 

 

 

 

Allowance for credit losses, loans and leases / Nonaccrual loans and leases

 

 

463.57

%

 

 

548.21

%

 

 

704.40

%

 

 

591.66

%

 

 

550.14

%

 

 

 

 

 

Allowance for credit losses, loans and leases / Nonperforming loans and leases

 

 

414.62

%

 

 

546.22

%

 

 

599.15

%

 

 

555.27

%

 

 

533.83

%

 

 

 

 

 

*Includes a $5.8 million loan held for sale at September 30, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the nine months ended,

 

 

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

09/30/23

 

09/30/22

 

Net loan and lease charge-offs

 

$

969

 

 

$

512

 

 

$

2,842

 

 

$

908

 

 

$

1,196

 

 

$

4,323

 

 

$

2,987

 

 

Net loan and lease charge-offs (annualized)/Average loans and leases

 

 

0.06

%

 

 

0.03

%

 

 

0.19

%

 

 

0.06

%

 

 

0.08

%

 

 

0.09

%

 

 

0.07

%

 



Univest Financial Corporation

 

Consolidated Selected Financial Data (Unaudited)

 

September 30, 2023

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the nine months ended,

 

For the period:

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

09/30/23

 

09/30/22

 

Interest income

 

$

97,106

 

$

90,139

 

$

83,253

 

$

77,401

 

$

66,877

 

 

270,498

 

$

174,792

 

Interest expense

 

 

43,516

 

 

35,809

 

 

23,936

 

 

15,485

 

 

8,627

 

 

103,261

 

 

18,411

 

Net interest income

 

 

53,590

 

 

54,330

 

 

59,317

 

 

61,916

 

 

58,250

 

 

167,237

 

 

156,381

 

Provision for credit losses

 

 

2,024

 

 

3,428

 

 

3,387

 

 

5,416

 

 

3,558

 

 

8,839

 

 

6,782

 

Net interest income after provision for credit losses

 

 

51,566

 

 

50,902

 

 

55,930

 

 

56,500

 

 

54,692

 

 

158,398

 

 

149,599

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust fee income

 

 

1,910

 

 

1,924

 

 

1,955

 

 

1,808

 

 

1,835

 

 

5,789

 

 

5,935

 

Service charges on deposit accounts

 

 

1,816

 

 

1,725

 

 

1,547

 

 

1,575

 

 

1,522

 

 

5,088

 

 

4,600

 

Investment advisory commission and fee income

 

 

4,843

 

 

4,708

 

 

4,752

 

 

5,585

 

 

4,199

 

 

14,303

 

 

14,163

 

Insurance commission and fee income

 

 

4,852

 

 

5,108

 

 

6,487

 

 

4,424

 

 

4,442

 

 

16,447

 

 

14,641

 

Other service fee income

 

 

3,020

 

 

3,318

 

 

3,076

 

 

3,236

 

 

3,124

 

 

9,414

 

 

9,189

 

Bank owned life insurance income

 

 

806

 

 

789

 

 

767

 

 

1,230

 

 

1,153

 

 

2,362

 

 

2,557

 

Net gain on sales of investment securities

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

30

 

Net gain on mortgage banking activities

 

 

1,216

 

 

1,039

 

 

625

 

 

436

 

 

817

 

 

2,880

 

 

3,976

 

Other income

 

 

228

 

 

1,222

 

 

471

 

 

2,164

 

 

867

 

 

1,921

 

 

2,336

 

Total noninterest income

 

 

18,691

 

 

19,833

 

 

19,680

 

 

20,458

 

 

17,959

 

 

58,204

 

 

57,427

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, benefits and commissions

 

 

29,978

 

 

29,875

 

 

31,014

 

 

29,028

 

 

29,400

 

 

90,867

 

 

86,778

 

Net occupancy

 

 

2,594

 

 

2,614

 

 

2,727

 

 

2,551

 

 

2,504

 

 

7,935

 

 

7,642

 

Equipment

 

 

1,087

 

 

986

 

 

993

 

 

977

 

 

968

 

 

3,066

 

 

2,927

 

Data processing

 

 

4,189

 

 

4,137

 

 

4,029

 

 

4,039

 

 

3,901

 

 

12,355

 

 

11,176

 

Professional fees

 

 

1,763

 

 

1,669

 

 

1,941

 

 

1,829

 

 

2,521

 

 

5,373

 

 

7,503

 

Marketing and advertising

 

 

555

 

 

622

 

 

371

 

 

739

 

 

605

 

 

1,548

 

 

1,723

 

Deposit insurance premiums

 

 

1,258

 

 

1,116

 

 

1,101

 

 

708

 

 

662

 

 

3,475

 

 

2,367

 

Intangible expenses

 

 

220

 

 

253

 

 

253

 

 

301

 

 

309

 

 

726

 

 

992

 

Restructuring charges

 

 

-

 

 

1,330

 

 

-

 

 

184

 

 

-

 

 

1,330

 

 

-

 

Other expense

 

 

7,344

 

 

7,197

 

 

7,100

 

 

6,970

 

 

5,795

 

 

21,641

 

 

18,340

 

Total noninterest expense

 

 

48,988

 

 

49,799

 

 

49,529

 

 

47,326

 

 

46,665

 

 

148,316

 

 

139,448

 

Income before taxes

 

 

21,269

 

 

20,936

 

 

26,081

 

 

29,632

 

 

25,986

 

 

68,286

 

 

67,578

 

Income tax expense

 

 

4,253

 

 

4,136

 

 

5,047

 

 

5,796

 

 

5,185

 

 

13,436

 

 

13,294

 

Net income

 

$

17,016

 

$

16,800

 

$

21,034

 

$

23,836

 

$

20,801

 

$

54,850

 

$

54,284

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.58

 

$

0.57

 

$

0.72

 

$

0.82

 

$

0.71

 

$

1.86

 

$

1.85

 

Diluted

 

$

0.58

 

$

0.57

 

$

0.71

 

$

0.81

 

$

0.71

 

$

1.86

 

$

1.84

 

Dividends declared per share

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.63

 

$

0.62

 

Weighted average shares outstanding

 

 

29,479,066

 

 

29,439,392

 

 

29,312,265

 

 

29,251,293

 

 

29,290,829

 

 

29,410,852

 

 

29,440,228

 

Period end shares outstanding

 

 

29,508,128

 

 

29,471,124

 

 

29,427,696

 

 

29,271,915

 

 

29,242,451

 

 

29,508,128

 

 

29,242,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Univest Financial Corporation

Consolidated Selected Financial Data (Unaudited)

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the nine months ended,

Profitability Ratios (annualized)

 

 

09/30/23

 

06/30/23

 

03/31/23

 

12/31/22

 

09/30/22

 

09/30/23

 

09/30/22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

 

0.88

%

 

 

0.91

%

 

 

1.18

%

 

 

1.35

%

 

 

1.21

%

 

 

0.98

%

 

 

1.05

%

Return on average assets, excluding restructuring

 

 

0.88

%

 

 

0.96

%

 

 

1.18

%

 

 

1.36

%

 

 

1.21

%

 

 

1.00

%

 

 

1.05

%

charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average shareholders' equity

 

 

8.32

%

 

 

8.35

%

 

 

10.81

%

 

 

12.33

%

 

 

10.67

%

 

 

9.14

%

 

 

9.39

%

Return on average shareholders' equity, excluding

 

 

8.32

%

 

 

8.88

%

 

 

10.81

%

 

 

12.40

%

 

 

10.67

%

 

 

9.31

%

 

 

9.39

%

restructuring charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (1)(3)

 

 

10.77

%

 

 

10.85

%

 

 

14.11

%

 

 

16.23

%

 

 

14.06

%

 

 

11.87

%

 

 

12.40

%

Return on average tangible common equity, excluding

 

 

10.77

%

 

 

11.52

%

 

 

14.11

%

 

 

16.33

%

 

 

14.06

%

 

 

12.10

%

 

 

12.40

%

restructuring charges (1)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)

 

 

 

2.96

%

 

 

3.14

%

 

 

3.58

%

 

 

3.76

%

 

 

3.67

%

 

 

3.22

%

 

 

3.25

%

Efficiency ratio (2)

 

 

 

 

67.3

%

 

 

66.7

%

 

 

62.2

%

 

 

56.9

%

 

 

60.6

%

 

 

65.3

%

 

 

64.6

%

Efficiency ratio, excluding restructuring charges (1)(2)

 

 

67.3

%

 

 

64.9

%

 

 

62.2

%

 

 

56.7

%

 

 

60.6

%

 

 

64.7

%

 

 

64.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalization Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared to net income

 

 

 

36.4

%

 

 

36.8

%

 

 

29.2

%

 

 

25.8

%

 

 

29.6

%

 

 

33.8

%

 

 

33.6

%

Shareholders' equity to assets (Period End)

 

 

10.31

%

 

 

10.59

%

 

 

10.85

%

 

 

10.75

%

 

 

10.92

%

 

 

10.31

%

 

 

10.92

%

Tangible common equity to tangible assets (1)

 

 

8.22

%

 

 

8.45

%

 

 

8.63

%

 

 

8.49

%

 

 

8.55

%

 

 

8.22

%

 

 

8.55

%

Common equity book value per share

 

$

27.36

 

 

$

27.32

 

 

$

27.13

 

 

$

26.53

 

 

$

25.79

 

 

$

27.36

 

 

$

25.79

 

Tangible common equity book value per share (1)

 

$

21.32

 

 

$

21.27

 

 

$

21.07

 

 

$

20.42

 

 

$

19.67

 

 

$

21.32

 

 

$

19.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital Ratios (Period End)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

 

 

9.43

%

 

 

9.59

%

 

 

9.71

%

 

 

9.81

%

 

 

9.87

%

 

 

9.43

%

 

 

9.87

%

Common equity tier 1 risk-based capital ratio

 

 

10.32

%

 

 

10.26

%

 

 

10.43

%

 

 

10.37

%

 

 

10.51

%

 

 

10.32

%

 

 

10.51

%

Tier 1 risk-based capital ratio

 

 

 

10.32

%

 

 

10.26

%

 

 

10.43

%

 

 

10.37

%

 

 

10.51

%

 

 

10.32

%

 

 

10.51

%

Total risk-based capital ratio

 

 

 

13.58

%

 

 

13.54

%

 

 

13.78

%

 

 

13.67

%

 

 

13.10

%

 

 

13.58

%

 

 

13.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP 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, 2023

 

June 30, 2023

 

 

Average

Income/

Average

 

Average

Income/

Average

 

(Dollars in thousands)

Balance

Expense

Rate

 

Balance

Expense

Rate

 

Assets:

 

 

 

 

 

 

 

 

Interest-earning deposits with other banks

$

143,109

 

$

1,865

5.17

%

$

46,897

 

$

512

4.38

%

Obligations of state and political subdivisions*

 

2,281

 

 

16

2.78

 

 

2,284

 

 

15

2.63

 

Other debt and equity securities

 

504,060

 

 

3,540

2.79

 

 

516,711

 

 

3,512

2.73

 

Federal Home Loan Bank, Federal Reserve Bank and other stock

 

40,406

 

 

712

6.99

 

 

43,783

 

 

781

7.15

 

Total interest-earning deposits, investments and other interest-earning assets

 

689,856

 

 

6,133

3.53

 

 

609,675

 

 

4,820

3.17

 

 

 

 

 

 

 

 

 

 

Commercial, financial, and agricultural loans

 

995,355

 

 

17,545

6.99

 

 

1,005,499

 

 

16,919

6.75

 

Real estate—commercial and construction loans

 

3,552,709

 

 

49,548

5.53

 

 

3,445,431

 

 

45,960

5.35

 

Real estate—residential loans

 

1,543,360

 

 

18,270

4.70

 

 

1,483,478

 

 

17,216

4.65

 

Loans to individuals

 

26,538

 

 

525

7.85

 

 

26,794

 

 

479

7.17

 

Municipal loans and leases *

 

234,685

 

 

2,430

4.11

 

 

234,940

 

 

2,388

4.08

 

Lease financings

 

184,522

 

 

2,928

6.30

 

 

176,200

 

 

2,659

6.05

 

Gross loans and leases

 

6,537,169

 

 

91,246

5.54

 

 

6,372,342

 

 

85,621

5.39

 

Total interest-earning assets

 

7,227,025

 

 

97,379

5.35

 

 

6,982,017

 

 

90,441

5.20

 

Cash and due from banks

 

62,673

 

 

 

 

 

58,675

 

 

 

 

Allowance for credit losses, loans and leases

 

(83,827

)

 

 

 

 

(81,641

)

 

 

 

Premises and equipment, net

 

52,071

 

 

 

 

 

52,540

 

 

 

 

Operating lease right-of-use assets

 

31,647

 

 

 

 

 

31,200

 

 

 

 

Other assets

 

404,394

 

 

 

 

 

398,007

 

 

 

 

Total assets

$

7,693,983

 

 

 

 

$

7,440,798

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Interest-bearing checking deposits

$

1,070,063

 

$

6,703

2.49

%

$

1,011,889

 

$

5,392

2.14

%

Money market savings

 

1,645,210

 

 

17,850

4.30

 

 

1,460,899

 

 

14,089

3.87

 

Regular savings

 

828,672

 

 

861

0.41

 

 

888,680

 

 

845

0.38

 

Time deposits

 

1,140,622

 

 

11,668

4.06

 

 

823,665

 

 

7,141

3.48

 

Total time and interest-bearing deposits

 

4,684,567

 

 

37,082

3.14

 

 

4,185,133

 

 

27,467

2.63

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

93,028

 

 

1,117

4.76

 

 

255,090

 

 

3,249

5.11

 

Long-term debt

 

320,000

 

 

3,036

3.76

 

 

301,593

 

 

2,811

3.74

 

Subordinated notes

 

148,568

 

 

2,281

6.09

 

 

148,443

 

 

2,282

6.17

 

Total borrowings

 

561,596

 

 

6,434

4.55

 

 

705,126

 

 

8,342

4.75

 

Total interest-bearing liabilities

 

5,246,163

 

 

43,516

3.29

 

 

4,890,259

 

 

35,809

2.94

 

Noninterest-bearing deposits

 

1,538,143

 

 

 

 

 

1,659,449

 

 

 

 

Operating lease liabilities

 

34,788

 

 

 

 

 

34,415

 

 

 

 

Accrued expenses and other liabilities

 

63,374

 

 

 

 

 

49,966

 

 

 

 

Total liabilities

 

6,882,468

 

 

 

 

 

6,634,089

 

 

 

 

Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")

 

6,784,306

 

 

2.54

 

 

6,549,708

 

 

2.19

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

Common stock

 

157,784

 

 

 

 

 

157,784

 

 

 

 

Additional paid-in capital

 

299,575

 

 

 

 

 

298,788

 

 

 

 

Retained earnings and other equity

 

354,156

 

 

 

 

 

350,137

 

 

 

 

Total shareholders' equity

 

811,515

 

 

 

 

 

806,709

 

 

 

 

Total liabilities and shareholders' equity

$

7,693,983

 

 

 

 

$

7,440,798

 

 

 

 

Net interest income

 

$

53,863

 

 

 

$

54,632

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

2.06

 

 

 

2.26

 

Effect of net interest-free funding sources

 

 

0.90

 

 

 

0.88

 

Net interest margin

 

 

2.96

%

 

 

3.14

%

Ratio of average interest-earning assets to average interest-bearing liabilities

 

137.76

%

 

 

 

 

142.77

%

 

 

 

 

 

 

 

 

 

 

 

 

* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.

 

Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.

Net interest income includes net deferred costs amortization of $563 thousand and $668 thousand for the three months ended September 30, 2023 and June 30, 2023, respectively.

Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2023 and June 30, 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 September 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

$

143,109

 

$

1,865

5.17

%

$

49,476

 

$

252

2.02

%

U.S. government obligations

 

-

 

 

-

-

 

 

565

 

 

3

2.11

 

Obligations of state and political subdivisions*

 

2,281

 

 

16

2.78

 

 

2,308

 

 

18

3.09

 

Other debt and equity securities

 

504,060

 

 

3,540

2.79

 

 

514,462

 

 

3,010

2.32

 

Federal Home Loan Bank, Federal Reserve Bank and other stock

 

40,406

 

 

712

6.99

 

 

28,368

 

 

435

6.08

 

Total interest-earning deposits, investments and other interest-earning assets

 

689,856

 

 

6,133

3.53

 

 

595,179

 

 

3,718

2.48

 

 

 

 

 

 

 

 

 

 

Commercial, financial, and agricultural loans

 

995,355

 

 

17,545

6.99

 

 

981,303

 

 

12,036

4.87

 

Real estate—commercial and construction loans

 

3,552,709

 

 

49,548

5.53

 

 

3,105,821

 

 

34,100

4.36

 

Real estate—residential loans

 

1,543,360

 

 

18,270

4.70

 

 

1,256,509

 

 

12,492

3.94

 

Loans to individuals

 

26,538

 

 

525

7.85

 

 

27,197

 

 

381

5.56

 

Municipal loans and leases*

 

234,685

 

 

2,430

4.11

 

 

235,433

 

 

2,432

4.10

 

Lease financings

 

184,522

 

 

2,928

6.30

 

 

145,856

 

 

2,195

5.97

 

Gross loans and leases

 

6,537,169

 

 

91,246

5.54

 

 

5,752,119

 

 

63,636

4.39

 

Total interest-earning assets

 

7,227,025

 

 

97,379

5.35

 

 

6,347,298

 

 

67,354

4.21

 

Cash and due from banks

 

62,673

 

 

 

 

 

62,930

 

 

 

 

Allowance for credit losses, loans and leases

 

(83,827

)

 

 

 

 

(72,355

)

 

 

 

Premises and equipment, net

 

52,071

 

 

 

 

 

50,476

 

 

 

 

Operating lease right-of-use assets

 

31,647

 

 

 

 

 

30,740

 

 

 

 

Other assets

 

404,394

 

 

 

 

 

378,377

 

 

 

 

Total assets

$

7,693,983

 

 

 

 

$

6,797,466

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Interest-bearing checking deposits

$

1,070,063

 

$

6,703

2.49

%

$

881,395

 

$

1,251

0.56

%

Money market savings

 

1,645,210

 

 

17,850

4.30

 

 

1,246,795

 

 

3,709

1.18

 

Regular savings

 

828,672

 

 

861

0.41

 

 

1,086,191

 

 

302

0.11

 

Time deposits

 

1,140,622

 

 

11,668

4.06

 

 

416,539

 

 

1,189

1.13

 

Total time and interest-bearing deposits

 

4,684,567

 

 

37,082

3.14

 

 

3,630,920

 

 

6,451

0.70

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

93,028

 

 

1,117

4.76

 

 

104,453

 

 

524

1.99

 

Long-term debt

 

320,000

 

 

3,036

3.76

 

 

95,000

 

 

324

1.35

 

Subordinated notes

 

148,568

 

 

2,281

6.09

 

 

99,065

 

 

1,328

5.32

 

Total borrowings

 

561,596

 

 

6,434

4.55

 

 

298,518

 

 

2,176

2.89

 

Total interest-bearing liabilities

 

5,246,163

 

 

43,516

3.29

 

 

3,929,438

 

 

8,627

0.87

 

Noninterest-bearing deposits

 

1,538,143

 

 

 

 

 

2,014,371

 

 

 

 

Operating lease liabilities

 

34,788

 

 

 

 

 

33,786

 

 

 

 

Accrued expenses and other liabilities

 

63,374

 

 

 

 

 

46,772

 

 

 

 

Total liabilities

 

6,882,468

 

 

 

 

 

6,024,367

 

 

 

 

Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")

 

6,784,306

 

 

2.54

 

 

5,943,809

 

 

0.58

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

Common stock

 

157,784

 

 

 

 

 

157,784

 

 

 

 

Additional paid-in capital

 

299,575

 

 

 

 

 

299,135

 

 

 

 

Retained earnings and other equity

 

354,156

 

 

 

 

 

316,180

 

 

 

 

Total shareholders' equity

 

811,515

 

 

 

 

 

773,099

 

 

 

 

Total liabilities and shareholders' equity

$

7,693,983

 

 

 

 

$

6,797,466

 

 

 

 

Net interest income

 

$

53,863

 

 

 

$

58,727

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

2.06

 

 

 

3.34

 

Effect of net interest-free funding sources

 

 

0.90

 

 

 

0.33

 

Net interest margin

 

 

2.96

%

 

 

3.67

%

Ratio of average interest-earning assets to average interest-bearing liabilities

 

137.76

%

 

 

 

 

161.53

%

 

 

 

 

 

 

 

 

 

 

 

 

* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.

 

 

Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.

Net interest income includes net deferred costs amortization of $563 thousand and $498 thousand for the three months ended September 30, 2023 and 2022, respectively.

 

Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.

 

         

 



Univest Financial Corporation

 

Average Balances and Interest Rates (Unaudited)

 

 

 

For the Nine Months Ended September 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

$

79,630

 

$

2,856

4.80

%

$

416,466

 

$

1,433

0.46

%

U.S. government obligations

 

-

 

 

-

-

 

 

2,578

 

 

40

2.07

 

Obligations of state and political subdivisions*

 

2,284

 

 

48

2.81

 

 

2,314

 

 

54

3.12

 

Other debt and equity securities

 

511,420

 

 

10,547

2.76

 

 

513,491

 

 

8,076

2.10

 

Federal Home Loan Bank, Federal Reserve Bank and other stock

 

39,664

 

 

2,102

7.09

 

 

27,239

 

 

1,134

5.57

 

Total interest-earning deposits, investments and other interest-earning assets

 

632,998

 

 

15,553

3.29

 

 

962,088

 

 

10,737

1.49

 

 

 

 

 

 

 

 

 

 

Commercial, financial, and agricultural loans

 

997,590

 

 

50,002

6.70

 

 

949,141

 

 

29,390

4.14

 

Real estate—commercial and construction loans

 

3,447,551

 

 

137,929

5.35

 

 

3,005,714

 

 

88,447

3.93

 

Real estate—residential loans

 

1,478,871

 

 

51,216

4.63

 

 

1,180,202

 

 

33,132

3.75

 

Loans to individuals

 

26,859

 

 

1,453

7.23

 

 

26,598

 

 

924

4.64

 

Municipal loans and leases*

 

233,211

 

 

7,159

4.10

 

 

237,928

 

 

7,270

4.09

 

Lease financings

 

175,416

 

 

8,128

6.20

 

 

141,041

 

 

6,375

6.04

 

Gross loans and leases

 

6,359,498

 

 

255,887

5.38

 

 

5,540,624

 

 

165,538

3.99

 

Total interest-earning assets

 

6,992,496

 

 

271,440

5.19

 

 

6,502,712

 

 

176,275

3.62

 

Cash and due from banks

 

59,811

 

 

 

 

 

57,455

 

 

 

 

Allowance for credit losses, loans and leases

 

(81,829

)

 

 

 

 

(70,950

)

 

 

 

Premises and equipment, net

 

52,067

 

 

 

 

 

51,551

 

 

 

 

Operating lease right-of-use assets

 

31,384

 

 

 

 

 

30,453

 

 

 

 

Other assets

 

399,141

 

 

 

 

 

363,810

 

 

 

 

Total assets

$

7,453,070

 

 

 

 

$

6,935,031

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Interest-bearing checking deposits

$

980,725

 

$

15,259

2.08

%

$

871,393

 

$

2,264

0.35

%

Money market savings

 

1,532,318

 

 

43,020

3.75

 

 

1,397,220

 

 

6,165

0.59

 

Regular savings

 

900,448

 

 

2,375

0.35

 

 

1,059,644

 

 

777

0.10

 

Time deposits

 

845,635

 

 

22,231

3.51

 

 

447,497

 

 

3,722

1.11

 

Total time and interest-bearing deposits

 

4,259,126

 

 

82,885

2.60

 

 

3,775,754

 

 

12,928

0.46

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

195,606

 

 

7,094

4.85

 

 

46,765

 

 

537

1.54

 

Long-term debt

 

245,366

 

 

6,438

3.51

 

 

95,000

 

 

962

1.35

 

Subordinated notes

 

148,444

 

 

6,844

6.16

 

 

98,989

 

 

3,984

5.38

 

Total borrowings

 

589,416

 

 

20,376

4.62

 

 

240,754

 

 

5,483

3.04

 

Total interest-bearing liabilities

 

4,848,542

 

 

103,261

2.85

 

 

4,016,508

 

 

18,411

0.61

 

Noninterest-bearing deposits

 

1,709,533

 

 

 

 

 

2,067,428

 

 

 

 

Operating lease liabilities

 

34,548

 

 

 

 

 

33,514

 

 

 

 

Accrued expenses and other liabilities

 

57,906

 

 

 

 

 

44,630

 

 

 

 

Total liabilities

 

6,650,529

 

 

 

 

 

6,162,080

 

 

 

 

Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")

 

6,558,075

 

 

2.11

 

 

6,083,936

 

 

0.40

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

Common stock

 

157,784

 

 

 

 

 

157,784

 

 

 

 

Additional paid-in capital

 

299,550

 

 

 

 

 

298,784

 

 

 

 

Retained earnings and other equity

 

345,207

 

 

 

 

 

316,383

 

 

 

 

Total shareholders' equity

 

802,541

 

 

 

 

 

772,951

 

 

 

 

Total liabilities and shareholders' equity

$

7,453,070

 

 

 

 

$

6,935,031

 

 

 

 

Net interest income

 

$

168,179

 

 

 

$

157,864

 

 

 

 

 

 

 

 

 

 

 

Net interest spread

 

 

2.34

 

 

 

3.01

 

Effect of net interest-free funding sources

 

 

0.88

 

 

 

0.24

 

Net interest margin

 

 

3.22

%

 

 

3.25

%

Ratio of average interest-earning assets to average interest-bearing liabilities

 

144.22

%

 

 

 

 

161.90

%

 

 

 

 

 

 

 

 

 

 

 

 

* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.

 

 

Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.

Net interest income includes net deferred costs amortization of $1.7 million and $1.3 million for the nine months ended September 30, 2023 and 2022, respectively.

 

Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.

 

 

 

 

 

 

 

 

 

 



Univest Financial Corporation

 

Loan Portfolio Overview (Unaudited)

 

September 30, 2023

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

Industry Description

Total Outstanding Balance

 

% of Commercial Loan Portfolio

 

 

CRE - Retail

$

466,862

 

8.9

%

 

Animal Production

 

359,814

 

6.8

 

 

CRE - Multi-family

 

304,289

 

5.8

 

 

CRE - Office

 

301,949

 

5.7

 

 

CRE - 1-4 Family Residential Investment

 

282,333

 

5.4

 

 

CRE - Industrial / Warehouse

 

244,107

 

4.6

 

 

Hotels & Motels (Accommodation)

 

190,698

 

3.6

 

 

Nursing and Residential Care Facilities

 

173,781

 

3.3

 

 

Specialty Trade Contractors

 

164,837

 

3.1

 

 

Education

 

157,875

 

3.0

 

 

Homebuilding (tract developers, remodelers)

 

153,490

 

2.9

 

 

Motor Vehicle and Parts Dealers

 

134,118

 

2.5

 

 

Merchant Wholesalers, Durable Goods

 

125,105

 

2.4

 

 

CRE - Mixed-Use - Residential

 

109,187

 

2.1

 

 

Crop Production

 

101,973

 

1.9

 

 

Repair and Maintenance

 

94,011

 

1.8

 

 

Private Equity & Special Purpose Entities (except 52592)

 

86,549

 

1.6

 

 

Administrative and Support Services

 

86,053

 

1.6

 

 

Rental and Leasing Services

 

82,213

 

1.6

 

 

Wood Product Manufacturing

 

81,813

 

1.6

 

 

Real Estate Lenders, Secondary Market Financing

 

79,310

 

1.5

 

 

CRE - Mixed-Use - Commercial

 

75,797

 

1.4

 

 

Religious Organizations, Advocacy Groups

 

73,665

 

1.4

 

 

Fabricated Metal Product Manufacturing

 

71,827

 

1.4

 

 

Personal and Laundry Services

 

71,060

 

1.3

 

 

Amusement, Gambling, and Recreation Industries

 

70,759

 

1.3

 

 

Merchant Wholesalers, Nondurable Goods

 

69,919

 

1.3

 

 

Miniwarehouse / Self-Storage

 

65,069

 

1.2

 

 

Food Services and Drinking Places

 

63,662

 

1.2

 

 

Food Manufacturing

 

59,897

 

1.1

 

 

Truck Transportation

 

55,250

 

1.0

 

 

Industries with >$50 million in outstandings

$

4,457,272

 

84.6

%

 

Industries with <$50 million in outstandings

$

811,904

 

15.4

%

 

Total Commercial Loans

$

5,269,176

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans and Lease Financings

Total Outstanding Balance

 

 

 

 

Real Estate-Residential Secured for Personal Purpose

$

861,122