Univest Financial Corporation (“Univest” or the "Corporation")
(NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the
"Bank") and its insurance, investments and equipment financing
subsidiaries, announced net income for the quarter ended
December 31, 2023 was $16.3 million, or $0.55 diluted earnings
per share, compared to net income of $23.8 million, or $0.81
diluted earnings per share, for the quarter ended December 31,
2022.
LoansGross loans and leases
decreased $7.7 million, or 0.1% (0.5% annualized), from
September 30, 2023, primarily due to decreases in commercial
and construction loans. Gross loans and leases increased $444.0
million, or 7.3%, from December 31, 2022, primarily due to
increases in commercial real estate, residential mortgage loans and
lease financings.
Deposits and LiquidityTotal
deposits decreased $63.4 million, or 1.0% (3.9% annualized), from
September 30, 2023, due to decreases in commercial, public
funds and brokered deposits, partially offset by an increase in
consumer deposits. Total deposits increased $462.3 million, or
7.8%, from December 31, 2022, primarily due to increases in
public funds and brokered deposits partially, offset by decreases
in commercial and consumer deposits. Noninterest-bearing deposits
represented 23.0% of total deposits at December 31, 2023, up from
22.2% at September 30, 2023. At December 31, 2023, unprotected
deposits, which excludes insured, internal, and collateralized
deposit accounts, represented 23.3% of total deposits, up from
20.8% at September 30, 2023.
As of December 31, 2023, the Corporation had
cash and cash equivalents totaling $249.8 million. The Corporation
and its subsidiaries had committed borrowing capacity of $3.4
billion at December 31, 2023, of which $1.9 billion was
available. The Corporation and its subsidiaries also maintained
unused uncommitted funding sources from correspondent banks of
$369.0 million at December 31, 2023. Future availability
under these uncommitted funding sources is subject to the
prerogatives of the granting banks and may be withdrawn at
will.
Net Interest Income and
MarginNet interest income of $52.8 million for the three
months ended December 31, 2023 decreased $830 thousand, or
1.5%, from the three months ended September 30, 2023, and $9.2
million, or 14.8%, from the three months ended December 31,
2022. The decrease in net interest income was due to increases in
the cost of funds and the average balance of interest-bearing
liabilities, partially offset by an increase in the yield and
average balance of interest-earning assets.
Net interest margin, on a tax-equivalent basis,
was 2.84% for the fourth quarter of 2023, compared to 2.96% for the
third quarter of 2023 and 3.76% for the fourth quarter of 2022.
Excess liquidity reduced net interest margin by approximately ten
basis points for the quarter ended December 31, 2023 compared to
approximately four basis points for the quarter ended September 30,
2023 and approximately one basis point for the quarter ended
December 31, 2022.
Noninterest IncomeNoninterest
income for the quarter ended December 31, 2023 was $18.6
million, a decrease of $1.8 million, or 9.0%, from the comparable
period in the prior year.
Investment advisory commission and fee income
decreased $1.0 million, or 18.3%, for the quarter ended
December 31, 2023 compared to the comparable period in the
prior year. This decrease was primarily driven by a $1.2 million
adjustment recorded in the fourth quarter of 2022 for previously
unrecorded revenue.
Bank owned life insurance ("BOLI") decreased
$407 thousand, or 33.1%, for the quarter ended December 31,
2023 compared to the comparable period in the prior year, primarily
due to a death benefit claim of $526 thousand received in the
fourth quarter of 2022.
Other income decreased $1.2 million, or 55.6%,
for the quarter ended December 31, 2023 compared to the
comparable period in the prior year, primarily due to a $1.5
million decrease in interest rate swap income.
Net gain on mortgage banking activities
increased $373 thousand, or 85.6%, for the quarter ended
December 31, 2023 compared to the comparable period in the
prior year, primarily due to increased salable volume.
Noninterest ExpenseNoninterest
expense for the quarter ended December 31, 2023 was $49.0
million, an increase of $1.7 million, or 3.6%, from the comparable
period in the prior year.
Salaries, benefits and commissions increased
$293 thousand, or 1.0%, for the quarter ended December 31,
2023 compared to the comparable period in the prior year. The
increase reflects our expansion into Maryland and Western
Pennsylvania, increased medical claims expense and reduced
capitalized compensation, driven by lower loan production. These
increases were partially offset by decreases due to the staff
reduction that was announced during the second quarter of 2023 and
a reduction in incentive compensation due to decreased
profitability in current the year.
Deposit insurance premiums increased $642
thousand, or 90.7%, for the quarter ended December 31, 2023
compared to the comparable period in the prior year, primarily
driven by an increased industry-wide assessment rate and an
increase in our assessment base. Data processing increased $405
thousand, or 10.0%, for the quarter ended December 31, 2023
compared to the comparable period in the prior year, primarily due
to our investments in technology in recent years and general price
increases incurred in the second half of 2023. Other expense
increased $343 thousand, or 4.9%, for the quarter ended December
31, 2023 compared to the comparable period in the prior year,
primarily due to increases in retirement plan costs of $236
thousand.
Tax Provision The effective
income tax rate was 20.3% for the quarter ended December 31,
2023, compared to an effective tax rate of 19.6% for the quarter
ended December 31, 2022. The effective tax rates for the quarters
ended December 31, 2023 and 2022 reflected the benefits of
tax-exempt income from investments in municipal securities and
loans and leases.
Asset Quality and Provision for Credit
LossesNonperforming assets were $40.1 million at
December 31, 2023 and September 30, 2023 and $33.5
million at December 31, 2022.
Net loan and lease charge-offs were $1.1 million
for the three months ended December 31, 2023 compared to $969
thousand and $908 thousand for the three months ended
September 30, 2023 and December 31, 2022, respectively.
Net loan and lease charge-offs were $5.4 million and $3.9 million
for the years ended December 31, 2023 and December 31, 2022,
respectively.
The provision for credit losses was $1.9 million
for the three months ended December 31, 2023 compared to $2.0
million and $5.4 million for the three months ended
September 30, 2023 and December 31, 2022, respectively.
The provision for credit losses was $10.8 million for the year
ended December 31, 2023 compared to $12.2 million for the year
ended December 31, 2022. The allowance for credit losses on loans
and leases as a percentage of loans and leases held for investment
was 1.30% at December 31, 2023 compared to 1.28% at
September 30, 2023 and 1.29% December 31, 2022.
DividendOn January 24, 2024,
Univest declared a quarterly cash dividend of $0.21 per share to be
paid on February 21, 2024 to shareholders of record as of February
7, 2024.
Conference CallUnivest will
host a conference call to discuss fourth quarter 2023 results on
Thursday, January 25, 2024 at 9:00 a.m. EST. Participants may
preregister at
https://www.netroadshow.com/events/login?show=bfe2e840&confId=59386.
The general public can access the call by dialing 1-833-470-1428;
using Access Code 989044. A replay of the conference call will
be available through February 22, 2024 by dialing 1-866-813-9403;
using Access Code 607497.
About Univest Financial
CorporationUnivest Financial Corporation (UVSP), including
its wholly-owned subsidiary Univest Bank and Trust Co., Member
FDIC, has approximately $7.8 billion in assets and $4.7 billion in
assets under management and supervision through its Wealth
Management lines of business at December 31, 2023.
Headquartered in Souderton, Pa. and founded in 1876, the
Corporation and its subsidiaries provide a full range of financial
solutions for individuals, businesses, municipalities and nonprofit
organizations primarily in the Mid-Atlantic Region. Univest
delivers these services through a network of more than 50 offices
and online at www.univest.net.
This press release and the reports Univest files
with the Securities and Exchange Commission often contain
"forward-looking statements" relating to trends or factors
affecting the financial services industry and, specifically, the
financial condition and results of operations, business, prospects
and strategies of Univest. These forward-looking statements involve
certain risks and uncertainties in that there are a number of
important factors that could cause Univest's future financial
condition, results of operations, business, prospects or strategies
to differ materially from those expressed or implied by the
forward-looking statements. These factors include, but are not
limited to: (1) competition; (2) inflation and/or changes in
interest rates, which may adversely impact our margins and yields,
reduce the fair value of our financial instruments, reduce our loan
originations and/or lead to higher operating costs; (3) changes in
asset quality, prepayment speeds, loan sale volumes, charge-offs
and/or credit loss provisions; (4) changes in liquidity, including
the size and composition of our deposit portfolio and the
percentage of uninsured deposits in the portfolio; (5) changes in
economic conditions nationally and in our market; (6) economic
assumptions that may impact our allowance for credit losses
calculation; (7) legislative, regulatory, accounting or tax
changes; (8) monetary and fiscal policies of the U.S. government,
including the policies of the Board of Governors of the Federal
Reserve System; (9) technological issues that may adversely affect
our operations or those of our customers; (10) a failure or breach
in our operational or security systems or infrastructure, including
cyberattacks; (11) changes in the securities markets; (12) the
current or anticipated impact of military conflict, terrorism or
other geopolitical events; (13) our ability to enter into new
markets successfully and capitalize on growth opportunities and/or
(14) risk factors mentioned in the reports and registration
statements Univest files with the Securities and Exchange
Commission.
(UVSP - ER)
Univest
Financial Corporation |
|
Consolidated
Selected Financial Data (Unaudited) |
|
December 31,
2023 |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet (Period End) |
|
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks |
|
$ |
72,815 |
|
|
$ |
68,900 |
|
|
$ |
80,795 |
|
|
$ |
71,215 |
|
|
$ |
84,176 |
|
|
|
|
|
|
Interest-earning deposits with other banks |
|
|
176,984 |
|
|
|
221,441 |
|
|
|
59,616 |
|
|
|
67,109 |
|
|
|
68,623 |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
249,799 |
|
|
|
290,341 |
|
|
|
140,411 |
|
|
|
138,324 |
|
|
|
152,799 |
|
|
|
|
|
|
Investment
securities held-to-maturity |
|
|
145,777 |
|
|
|
149,451 |
|
|
|
153,509 |
|
|
|
151,347 |
|
|
|
154,727 |
|
|
|
|
|
|
Investment
securities available for sale, net of allowance for credit
losses |
|
|
351,553 |
|
|
|
334,538 |
|
|
|
356,164 |
|
|
|
367,656 |
|
|
|
350,256 |
|
|
|
|
|
|
Investments
in equity securities |
|
|
3,293 |
|
|
|
4,054 |
|
|
|
3,443 |
|
|
|
3,105 |
|
|
|
2,579 |
|
|
|
|
|
|
Federal Home
Loan Bank, Federal Reserve Bank and other stock, at cost |
|
|
40,499 |
|
|
|
42,417 |
|
|
|
42,811 |
|
|
|
43,792 |
|
|
|
33,841 |
|
|
|
|
|
|
Loans held
for sale |
|
|
11,637 |
|
|
|
16,473 |
|
|
|
29,526 |
|
|
|
5,425 |
|
|
|
5,037 |
|
|
|
|
|
|
Loans and
leases held for investment |
|
|
6,567,214 |
|
|
|
6,574,958 |
|
|
|
6,462,238 |
|
|
|
6,239,804 |
|
|
|
6,123,230 |
|
|
|
|
|
|
Less: Allowance for credit losses, loans and leases |
|
|
(85,387 |
) |
|
|
(83,837 |
) |
|
|
(82,709 |
) |
|
|
(80,034 |
) |
|
|
(79,004 |
) |
|
|
|
|
|
Net loans and leases held for investment |
|
|
6,481,827 |
|
|
|
6,491,121 |
|
|
|
6,379,529 |
|
|
|
6,159,770 |
|
|
|
6,044,226 |
|
|
|
|
|
|
Premises and
equipment, net |
|
|
51,441 |
|
|
|
51,287 |
|
|
|
52,058 |
|
|
|
52,334 |
|
|
|
50,939 |
|
|
|
|
|
|
Operating
lease right-of-use assets |
|
|
31,795 |
|
|
|
31,053 |
|
|
|
30,237 |
|
|
|
31,663 |
|
|
|
30,059 |
|
|
|
|
|
|
Goodwill |
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
175,510 |
|
|
|
|
|
|
Other
intangibles, net of accumulated amortization |
|
|
10,950 |
|
|
|
11,079 |
|
|
|
10,923 |
|
|
|
11,044 |
|
|
|
11,384 |
|
|
|
|
|
|
Bank owned
life insurance |
|
|
131,344 |
|
|
|
130,522 |
|
|
|
129,715 |
|
|
|
128,926 |
|
|
|
120,297 |
|
|
|
|
|
|
Accrued
interest and other assets |
|
|
91,793 |
|
|
|
100,220 |
|
|
|
96,314 |
|
|
|
90,095 |
|
|
|
90,362 |
|
|
|
|
|
|
Total assets |
|
$ |
7,777,218 |
|
|
$ |
7,828,066 |
|
|
$ |
7,600,150 |
|
|
$ |
7,358,991 |
|
|
$ |
7,222,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
1,468,320 |
|
|
$ |
1,432,559 |
|
|
$ |
1,582,767 |
|
|
$ |
1,799,225 |
|
|
$ |
2,047,263 |
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
4,907,461 |
|
|
|
5,006,606 |
|
|
|
4,404,635 |
|
|
|
4,035,432 |
|
|
|
3,866,263 |
|
|
|
|
|
|
Total deposits |
|
|
6,375,781 |
|
|
|
6,439,165 |
|
|
|
5,987,402 |
|
|
|
5,834,657 |
|
|
|
5,913,526 |
|
|
|
|
|
|
Short-term
borrowings |
|
|
6,306 |
|
|
|
14,676 |
|
|
|
244,666 |
|
|
|
271,881 |
|
|
|
197,141 |
|
|
|
|
|
|
Long-term
debt |
|
|
310,000 |
|
|
|
320,000 |
|
|
|
320,000 |
|
|
|
220,000 |
|
|
|
95,000 |
|
|
|
|
|
|
Subordinated
notes |
|
|
148,761 |
|
|
|
148,636 |
|
|
|
148,510 |
|
|
|
148,385 |
|
|
|
148,260 |
|
|
|
|
|
|
Operating
lease liabilities |
|
|
34,851 |
|
|
|
34,017 |
|
|
|
33,428 |
|
|
|
34,846 |
|
|
|
33,153 |
|
|
|
|
|
|
Accrued
expenses and other liabilities |
|
|
62,311 |
|
|
|
64,374 |
|
|
|
60,922 |
|
|
|
50,726 |
|
|
|
58,436 |
|
|
|
|
|
|
Total liabilities |
|
|
6,938,010 |
|
|
|
7,020,868 |
|
|
|
6,794,928 |
|
|
|
6,560,495 |
|
|
|
6,445,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock, $5 par value: 48,000,000 shares authorized and 31,556,799
shares issued |
|
|
157,784 |
|
|
|
157,784 |
|
|
|
157,784 |
|
|
|
157,784 |
|
|
|
157,784 |
|
|
|
|
|
|
Additional
paid-in capital |
|
|
301,066 |
|
|
|
300,171 |
|
|
|
299,212 |
|
|
|
298,167 |
|
|
|
300,808 |
|
|
|
|
|
|
Retained
earnings |
|
|
474,691 |
|
|
|
464,634 |
|
|
|
453,806 |
|
|
|
443,493 |
|
|
|
428,637 |
|
|
|
|
|
|
Accumulated
other comprehensive loss, net of tax benefit |
|
|
(50,646 |
) |
|
|
(71,586 |
) |
|
|
(61,034 |
) |
|
|
(55,550 |
) |
|
|
(62,104 |
) |
|
|
|
|
|
Treasury
stock, at cost |
|
|
(43,687 |
) |
|
|
(43,805 |
) |
|
|
(44,546 |
) |
|
|
(45,398 |
) |
|
|
(48,625 |
) |
|
|
|
|
|
Total shareholders’ equity |
|
|
839,208 |
|
|
|
807,198 |
|
|
|
805,222 |
|
|
|
798,496 |
|
|
|
776,500 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
7,777,218 |
|
|
$ |
7,828,066 |
|
|
$ |
7,600,150 |
|
|
$ |
7,358,991 |
|
|
$ |
7,222,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the twelve months ended, |
|
Balance Sheet (Average) |
|
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
|
Assets |
|
$ |
7,865,523 |
|
|
$ |
7,693,983 |
|
|
$ |
7,440,798 |
|
|
$ |
7,219,211 |
|
|
$ |
7,019,381 |
|
|
$ |
7,557,030 |
|
$ |
6,956,292 |
|
Investment
securities, net of allowance for credit losses |
|
|
489,587 |
|
|
|
506,341 |
|
|
|
518,995 |
|
|
|
515,880 |
|
|
|
505,717 |
|
|
|
507,625 |
|
|
515,192 |
|
Loans and
leases, gross |
|
|
6,594,233 |
|
|
|
6,537,169 |
|
|
|
6,372,342 |
|
|
|
6,164,890 |
|
|
|
5,979,581 |
|
|
|
6,418,664 |
|
|
5,651,265 |
|
Deposits |
|
|
6,470,141 |
|
|
|
6,222,710 |
|
|
|
5,844,582 |
|
|
|
5,834,415 |
|
|
|
5,837,823 |
|
|
|
6,095,058 |
|
|
5,841,832 |
|
Shareholders' equity |
|
|
814,941 |
|
|
|
811,515 |
|
|
|
806,709 |
|
|
|
789,153 |
|
|
|
767,192 |
|
|
|
805,667 |
|
|
771,499 |
|
Univest
Financial Corporation |
Consolidated
Summary of Loans by Type and Asset Quality Data
(Unaudited) |
December 31,
2023 |
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Major Loan and Lease Categories (Period
End) |
|
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
Commercial, financial and agricultural |
|
$ |
989,723 |
|
|
$ |
1,050,004 |
|
|
$ |
1,039,265 |
|
|
$ |
1,032,753 |
|
|
$ |
1,088,928 |
|
Real
estate-commercial |
|
|
3,302,798 |
|
|
|
3,275,140 |
|
|
|
3,221,993 |
|
|
|
3,128,210 |
|
|
|
3,027,955 |
|
Real
estate-construction |
|
|
394,462 |
|
|
|
427,561 |
|
|
|
413,404 |
|
|
|
376,569 |
|
|
|
381,811 |
|
Real
estate-residential secured for business purpose |
|
|
517,002 |
|
|
|
516,471 |
|
|
|
517,521 |
|
|
|
498,505 |
|
|
|
478,254 |
|
Real
estate-residential secured for personal purpose |
|
|
909,015 |
|
|
|
861,122 |
|
|
|
832,632 |
|
|
|
779,557 |
|
|
|
730,395 |
|
Real
estate-home equity secured for personal purpose |
|
|
179,282 |
|
|
|
176,855 |
|
|
|
175,090 |
|
|
|
172,073 |
|
|
|
176,699 |
|
Loans to
individuals |
|
|
27,749 |
|
|
|
27,331 |
|
|
|
25,544 |
|
|
|
28,656 |
|
|
|
27,873 |
|
Lease
financings |
|
|
247,183 |
|
|
|
240,474 |
|
|
|
236,789 |
|
|
|
223,481 |
|
|
|
211,315 |
|
Total loans and leases held for investment, net of deferred
income |
|
|
6,567,214 |
|
|
|
6,574,958 |
|
|
|
6,462,238 |
|
|
|
6,239,804 |
|
|
|
6,123,230 |
|
Less:
Allowance for credit losses, loans and leases |
|
|
(85,387 |
) |
|
|
(83,837 |
) |
|
|
(82,709 |
) |
|
|
(80,034 |
) |
|
|
(79,004 |
) |
Net loans and leases held for investment |
|
$ |
6,481,827 |
|
|
$ |
6,491,121 |
|
|
$ |
6,379,529 |
|
|
$ |
6,159,770 |
|
|
$ |
6,044,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data (Period End) |
|
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
Nonaccrual
loans and leases, including nonaccrual loans held for sale* |
|
$ |
20,527 |
|
|
$ |
18,085 |
|
|
$ |
15,087 |
|
|
$ |
11,362 |
|
|
$ |
13,353 |
|
Accruing
loans and leases 90 days or more past due |
|
|
534 |
|
|
|
2,135 |
|
|
|
55 |
|
|
|
1,996 |
|
|
|
875 |
|
Total
nonperforming loans and leases |
|
|
21,061 |
|
|
|
20,220 |
|
|
|
15,142 |
|
|
|
13,358 |
|
|
|
14,228 |
|
Other real
estate owned |
|
|
19,032 |
|
|
|
19,916 |
|
|
|
19,345 |
|
|
|
19,000 |
|
|
|
19,258 |
|
Total
nonperforming assets |
|
$ |
40,093 |
|
|
$ |
40,136 |
|
|
$ |
34,487 |
|
|
$ |
32,358 |
|
|
$ |
33,486 |
|
Nonaccrual
loans and leases / Loans and leases held for investment |
|
|
0.31 |
% |
|
|
0.28 |
% |
|
|
0.23 |
% |
|
|
0.18 |
% |
|
|
0.22 |
% |
Nonperforming loans and leases / Loans and leases held for
investment |
|
|
0.32 |
% |
|
|
0.31 |
% |
|
|
0.23 |
% |
|
|
0.21 |
% |
|
|
0.23 |
% |
Nonperforming assets / Total assets |
|
|
0.52 |
% |
|
|
0.51 |
% |
|
|
0.45 |
% |
|
|
0.44 |
% |
|
|
0.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses, loans and leases |
|
$ |
85,387 |
|
|
$ |
83,837 |
|
|
$ |
82,709 |
|
|
$ |
80,034 |
|
|
$ |
79,004 |
|
Allowance
for credit losses, loans and leases / Loans and leases held for
investment |
|
|
1.30 |
% |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.28 |
% |
|
|
1.29 |
% |
Allowance
for credit losses, loans and leases / Nonaccrual loans and
leases |
|
|
415.97 |
% |
|
|
463.57 |
% |
|
|
548.21 |
% |
|
|
704.40 |
% |
|
|
591.66 |
% |
Allowance
for credit losses, loans and leases / Nonperforming loans and
leases |
|
|
405.43 |
% |
|
|
414.62 |
% |
|
|
546.22 |
% |
|
|
599.15 |
% |
|
|
555.27 |
% |
*Includes a
$5.8 million loan held for sale at September 30, 2023. |
|
|
|
|
|
|
|
|
|
|
Univest
Financial Corporation |
|
Consolidated
Selected Financial Data (Unaudited) |
|
December 31,
2023 |
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the twelve months ended, |
|
For
the period: |
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
|
Interest income |
$ |
101,232 |
|
$ |
97,106 |
|
$ |
90,139 |
|
$ |
83,253 |
|
$ |
77,401 |
|
$ |
371,730 |
|
$ |
252,193 |
|
Interest
expense |
|
48,472 |
|
|
43,516 |
|
|
35,809 |
|
|
23,936 |
|
|
15,485 |
|
|
151,733 |
|
|
33,896 |
|
Net interest income |
|
52,760 |
|
|
53,590 |
|
|
54,330 |
|
|
59,317 |
|
|
61,916 |
|
|
219,997 |
|
|
218,297 |
|
Provision
for credit losses |
|
1,931 |
|
|
2,024 |
|
|
3,428 |
|
|
3,387 |
|
|
5,416 |
|
|
10,770 |
|
|
12,198 |
|
Net interest
income after provision for credit losses |
|
50,829 |
|
|
51,566 |
|
|
50,902 |
|
|
55,930 |
|
|
56,500 |
|
|
209,227 |
|
|
206,099 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust fee income |
|
1,943 |
|
|
1,910 |
|
|
1,924 |
|
|
1,955 |
|
|
1,808 |
|
|
7,732 |
|
|
7,743 |
|
Service charges on deposit
accounts |
|
1,960 |
|
|
1,816 |
|
|
1,725 |
|
|
1,547 |
|
|
1,575 |
|
|
7,048 |
|
|
6,175 |
|
Investment advisory commission and
fee income |
|
4,561 |
|
|
4,843 |
|
|
4,708 |
|
|
4,752 |
|
|
5,585 |
|
|
18,864 |
|
|
19,748 |
|
Insurance commission and fee
income |
|
4,596 |
|
|
4,852 |
|
|
5,108 |
|
|
6,487 |
|
|
4,424 |
|
|
21,043 |
|
|
19,065 |
|
Other service fee income |
|
2,967 |
|
|
3,020 |
|
|
3,318 |
|
|
3,076 |
|
|
3,236 |
|
|
12,381 |
|
|
12,425 |
|
Bank owned life insurance income |
|
823 |
|
|
806 |
|
|
789 |
|
|
767 |
|
|
1,230 |
|
|
3,185 |
|
|
3,787 |
|
Net gain on sales of investment
securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
30 |
|
Net gain on mortgage banking
activities |
|
809 |
|
|
1,216 |
|
|
1,039 |
|
|
625 |
|
|
436 |
|
|
3,689 |
|
|
4,412 |
|
Other income |
|
961 |
|
|
228 |
|
|
1,222 |
|
|
471 |
|
|
2,164 |
|
|
2,882 |
|
|
4,500 |
|
Total
noninterest income |
|
18,620 |
|
|
18,691 |
|
|
19,833 |
|
|
19,680 |
|
|
20,458 |
|
|
76,824 |
|
|
77,885 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, benefits and commissions |
|
29,321 |
|
|
29,978 |
|
|
29,875 |
|
|
31,014 |
|
|
29,028 |
|
|
120,188 |
|
|
115,806 |
|
Net occupancy |
|
2,751 |
|
|
2,594 |
|
|
2,614 |
|
|
2,727 |
|
|
2,551 |
|
|
10,686 |
|
|
10,193 |
|
Equipment |
|
1,066 |
|
|
1,087 |
|
|
986 |
|
|
993 |
|
|
977 |
|
|
4,132 |
|
|
3,904 |
|
Data processing |
|
4,444 |
|
|
4,189 |
|
|
4,137 |
|
|
4,029 |
|
|
4,039 |
|
|
16,799 |
|
|
15,215 |
|
Professional fees |
|
1,768 |
|
|
1,763 |
|
|
1,669 |
|
|
1,941 |
|
|
1,829 |
|
|
7,141 |
|
|
9,332 |
|
Marketing and advertising |
|
632 |
|
|
555 |
|
|
622 |
|
|
371 |
|
|
739 |
|
|
2,180 |
|
|
2,462 |
|
Deposit insurance premiums |
|
1,350 |
|
|
1,258 |
|
|
1,116 |
|
|
1,101 |
|
|
708 |
|
|
4,825 |
|
|
3,075 |
|
Intangible expenses |
|
212 |
|
|
220 |
|
|
253 |
|
|
253 |
|
|
301 |
|
|
938 |
|
|
1,293 |
|
Restructuring charges |
|
189 |
|
|
- |
|
|
1,330 |
|
|
- |
|
|
184 |
|
|
1,519 |
|
|
184 |
|
Other expense |
|
7,313 |
|
|
7,344 |
|
|
7,197 |
|
|
7,100 |
|
|
6,970 |
|
|
28,954 |
|
|
25,310 |
|
Total
noninterest expense |
|
49,046 |
|
|
48,988 |
|
|
49,799 |
|
|
49,529 |
|
|
47,326 |
|
|
197,362 |
|
|
186,774 |
|
Income
before taxes |
|
20,403 |
|
|
21,269 |
|
|
20,936 |
|
|
26,081 |
|
|
29,632 |
|
|
88,689 |
|
|
97,210 |
|
Income tax
expense |
|
4,149 |
|
|
4,253 |
|
|
4,136 |
|
|
5,047 |
|
|
5,796 |
|
|
17,585 |
|
|
19,090 |
|
Net
income |
$ |
16,254 |
|
$ |
17,016 |
|
$ |
16,800 |
|
$ |
21,034 |
|
$ |
23,836 |
|
$ |
71,104 |
|
$ |
78,120 |
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.55 |
|
$ |
0.58 |
|
$ |
0.57 |
|
$ |
0.72 |
|
$ |
0.82 |
|
$ |
2.42 |
|
$ |
2.66 |
|
Diluted |
$ |
0.55 |
|
$ |
0.58 |
|
$ |
0.57 |
|
$ |
0.71 |
|
$ |
0.81 |
|
$ |
2.41 |
|
$ |
2.64 |
|
Dividends
declared per share |
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.21 |
|
$ |
0.84 |
|
$ |
0.83 |
|
Weighted
average shares outstanding |
|
29,500,147 |
|
|
29,479,066 |
|
|
29,439,392 |
|
|
29,312,265 |
|
|
29,251,293 |
|
|
29,433,359 |
|
|
29,392,606 |
|
Period end
shares outstanding |
|
29,511,721 |
|
|
29,508,128 |
|
|
29,471,124 |
|
|
29,427,696 |
|
|
29,271,915 |
|
|
29,511,721 |
|
|
29,271,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univest
Financial Corporation |
Consolidated
Selected Financial Data (Unaudited) |
December 31,
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended, |
|
For the twelve months ended, |
Profitability Ratios (annualized) |
|
|
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
0.82 |
% |
|
|
0.88 |
% |
|
|
0.91 |
% |
|
|
1.18 |
% |
|
|
1.35 |
% |
|
|
0.94 |
% |
|
|
1.12 |
% |
Return on average assets, excluding restructuring |
|
|
0.83 |
% |
|
|
0.88 |
% |
|
|
0.96 |
% |
|
|
1.18 |
% |
|
|
1.36 |
% |
|
|
0.96 |
% |
|
|
1.13 |
% |
charges (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity |
|
|
7.91 |
% |
|
|
8.32 |
% |
|
|
8.35 |
% |
|
|
10.81 |
% |
|
|
12.33 |
% |
|
|
8.83 |
% |
|
|
10.13 |
% |
Return on average shareholders' equity, excluding |
|
|
7.99 |
% |
|
|
8.32 |
% |
|
|
8.88 |
% |
|
|
10.81 |
% |
|
|
12.40 |
% |
|
|
8.97 |
% |
|
|
10.14 |
% |
restructuring charges (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible common equity (1)(3) |
|
|
10.23 |
% |
|
|
10.77 |
% |
|
|
10.85 |
% |
|
|
14.11 |
% |
|
|
16.23 |
% |
|
|
11.45 |
% |
|
|
13.36 |
% |
Return on average tangible common equity, excluding |
|
|
10.32 |
% |
|
|
10.77 |
% |
|
|
11.52 |
% |
|
|
14.11 |
% |
|
|
16.33 |
% |
|
|
11.64 |
% |
|
|
13.39 |
% |
restructuring charges (1)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (FTE) |
|
|
|
2.84 |
% |
|
|
2.96 |
% |
|
|
3.14 |
% |
|
|
3.58 |
% |
|
|
3.76 |
% |
|
|
3.12 |
% |
|
|
3.38 |
% |
Efficiency ratio (2) |
|
|
|
|
68.3 |
% |
|
|
67.3 |
% |
|
|
66.7 |
% |
|
|
62.2 |
% |
|
|
56.9 |
% |
|
|
66.0 |
% |
|
|
62.4 |
% |
Efficiency ratio, excluding restructuring charges (1)(2) |
|
|
68.0 |
% |
|
|
67.3 |
% |
|
|
64.9 |
% |
|
|
62.2 |
% |
|
|
56.7 |
% |
|
|
65.5 |
% |
|
|
62.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared to net income |
|
|
|
38.1 |
% |
|
|
36.4 |
% |
|
|
36.8 |
% |
|
|
29.2 |
% |
|
|
25.8 |
% |
|
|
34.8 |
% |
|
|
31.2 |
% |
Shareholders' equity to assets (Period End) |
|
|
10.79 |
% |
|
|
10.31 |
% |
|
|
10.59 |
% |
|
|
10.85 |
% |
|
|
10.75 |
% |
|
|
10.79 |
% |
|
|
10.75 |
% |
Tangible common equity to tangible assets (1) |
|
|
8.70 |
% |
|
|
8.22 |
% |
|
|
8.45 |
% |
|
|
8.63 |
% |
|
|
8.49 |
% |
|
|
8.70 |
% |
|
|
8.49 |
% |
Common equity book value per share |
|
$ |
28.44 |
|
|
$ |
27.36 |
|
|
$ |
27.32 |
|
|
$ |
27.13 |
|
|
$ |
26.53 |
|
|
$ |
28.44 |
|
|
$ |
26.53 |
|
Tangible common equity book value per share (1) |
|
$ |
22.41 |
|
|
$ |
21.32 |
|
|
$ |
21.27 |
|
|
$ |
21.07 |
|
|
$ |
20.42 |
|
|
$ |
22.41 |
|
|
$ |
20.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory Capital Ratios (Period End) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
|
|
|
|
9.36 |
% |
|
|
9.43 |
% |
|
|
9.59 |
% |
|
|
9.71 |
% |
|
|
9.81 |
% |
|
|
9.36 |
% |
|
|
9.81 |
% |
Common equity tier 1 risk-based capital ratio |
|
|
10.61 |
% |
|
|
10.32 |
% |
|
|
10.26 |
% |
|
|
10.43 |
% |
|
|
10.37 |
% |
|
|
10.61 |
% |
|
|
10.37 |
% |
Tier 1 risk-based capital ratio |
|
|
|
10.61 |
% |
|
|
10.32 |
% |
|
|
10.26 |
% |
|
|
10.43 |
% |
|
|
10.37 |
% |
|
|
10.61 |
% |
|
|
10.37 |
% |
Total risk-based capital ratio |
|
|
|
13.93 |
% |
|
|
13.58 |
% |
|
|
13.54 |
% |
|
|
13.78 |
% |
|
|
13.67 |
% |
|
|
13.93 |
% |
|
|
13.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP metric. A
reconciliation of this and other non-GAAP 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 |
December 31, 2023 |
|
September 30, 2023 |
|
|
Average |
Income/ |
Average |
|
Average |
Income/ |
Average |
|
(Dollars in thousands) |
Balance |
Expense |
Rate |
|
Balance |
Expense |
Rate |
|
Assets: |
|
|
|
|
|
|
|
|
Interest-earning deposits with other banks |
$ |
280,693 |
|
$ |
3,804 |
5.38 |
% |
$ |
143,109 |
|
$ |
1,865 |
5.17 |
% |
Obligations
of state and political subdivisions* |
|
2,277 |
|
|
14 |
2.44 |
|
|
2,281 |
|
|
16 |
2.78 |
|
Other debt
and equity securities |
|
487,310 |
|
|
3,678 |
2.99 |
|
|
504,060 |
|
|
3,540 |
2.79 |
|
Federal Home
Loan Bank, Federal Reserve Bank and other stock |
|
41,361 |
|
|
767 |
7.36 |
|
|
40,406 |
|
|
712 |
6.99 |
|
Total interest-earning deposits, investments and other
interest-earning assets |
|
811,641 |
|
|
8,263 |
4.04 |
|
|
689,856 |
|
|
6,133 |
3.53 |
|
|
|
|
|
|
|
|
|
|
Commercial,
financial, and agricultural loans |
|
973,450 |
|
|
17,485 |
7.13 |
|
|
995,355 |
|
|
17,545 |
6.99 |
|
Real
estate—commercial and construction loans |
|
3,590,477 |
|
|
50,715 |
5.60 |
|
|
3,552,709 |
|
|
49,548 |
5.53 |
|
Real
estate—residential loans |
|
1,585,705 |
|
|
19,133 |
4.79 |
|
|
1,543,360 |
|
|
18,270 |
4.70 |
|
Loans to
individuals |
|
27,667 |
|
|
558 |
8.00 |
|
|
26,538 |
|
|
525 |
7.85 |
|
Municipal
loans and leases * |
|
230,394 |
|
|
2,438 |
4.20 |
|
|
234,685 |
|
|
2,430 |
4.11 |
|
Lease
financings |
|
186,540 |
|
|
2,897 |
6.16 |
|
|
184,522 |
|
|
2,928 |
6.30 |
|
Gross loans and leases |
|
6,594,233 |
|
|
93,226 |
5.61 |
|
|
6,537,169 |
|
|
91,246 |
5.54 |
|
Total interest-earning assets |
|
7,405,874 |
|
|
101,489 |
5.44 |
|
|
7,227,025 |
|
|
97,379 |
5.35 |
|
Cash and due
from banks |
|
54,981 |
|
|
|
|
|
62,673 |
|
|
|
|
Allowance
for credit losses, loans and leases |
|
(84,386 |
) |
|
|
|
|
(83,827 |
) |
|
|
|
Premises and
equipment, net |
|
51,489 |
|
|
|
|
|
52,071 |
|
|
|
|
Operating
lease right-of-use assets |
|
31,251 |
|
|
|
|
|
31,647 |
|
|
|
|
Other
assets |
|
406,314 |
|
|
|
|
|
404,394 |
|
|
|
|
Total assets |
$ |
7,865,523 |
|
|
|
|
$ |
7,693,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
1,193,386 |
|
$ |
8,409 |
2.80 |
% |
$ |
1,070,063 |
|
$ |
6,703 |
2.49 |
% |
Money market
savings |
|
1,845,153 |
|
|
21,133 |
4.54 |
|
|
1,645,210 |
|
|
17,850 |
4.30 |
|
Regular
savings |
|
784,937 |
|
|
874 |
0.44 |
|
|
828,672 |
|
|
861 |
0.41 |
|
Time
deposits |
|
1,188,054 |
|
|
12,748 |
4.26 |
|
|
1,140,622 |
|
|
11,668 |
4.06 |
|
Total time and interest-bearing
deposits |
|
5,011,530 |
|
|
43,164 |
3.42 |
|
|
4,684,567 |
|
|
37,082 |
3.14 |
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
9,814 |
|
|
1 |
0.04 |
|
|
93,028 |
|
|
1,117 |
4.76 |
|
Long-term
debt |
|
318,805 |
|
|
3,026 |
3.77 |
|
|
320,000 |
|
|
3,036 |
3.76 |
|
Subordinated
notes |
|
148,693 |
|
|
2,281 |
6.09 |
|
|
148,568 |
|
|
2,281 |
6.09 |
|
Total borrowings |
|
477,312 |
|
|
5,308 |
4.41 |
|
|
561,596 |
|
|
6,434 |
4.55 |
|
Total interest-bearing
liabilities |
|
5,488,842 |
|
|
48,472 |
3.50 |
|
|
5,246,163 |
|
|
43,516 |
3.29 |
|
Noninterest-bearing deposits |
|
1,458,610 |
|
|
|
|
|
1,538,143 |
|
|
|
|
Operating
lease liabilities |
|
34,255 |
|
|
|
|
|
34,788 |
|
|
|
|
Accrued
expenses and other liabilities |
|
68,875 |
|
|
|
|
|
63,374 |
|
|
|
|
Total liabilities |
|
7,050,582 |
|
|
|
|
|
6,882,468 |
|
|
|
|
Total
interest-bearing liabilities and noninterest-bearing deposits
("Cost of Funds") |
|
6,947,452 |
|
|
2.77 |
|
|
6,784,306 |
|
|
2.54 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common
stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
Additional
paid-in capital |
|
300,558 |
|
|
|
|
|
299,575 |
|
|
|
|
Retained
earnings and other equity |
|
356,599 |
|
|
|
|
|
354,156 |
|
|
|
|
Total shareholders' equity |
|
814,941 |
|
|
|
|
|
811,515 |
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
7,865,523 |
|
|
|
|
$ |
7,693,983 |
|
|
|
|
Net interest
income |
|
$ |
53,017 |
|
|
|
$ |
53,863 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
1.94 |
|
|
|
2.06 |
|
Effect of
net interest-free funding sources |
|
|
0.90 |
|
|
|
0.90 |
|
Net interest
margin |
|
|
2.84 |
% |
|
|
2.96 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
134.93 |
% |
|
|
|
|
137.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Obligations of
states and political subdivisions and municipal loans and leases
are tax-exempt earning assets. |
|
|
|
Notes: For rate
calculation purposes, average loan and lease categories include
deferred fees and costs and purchase accounting adjustments. |
Net
interest income includes net deferred costs amortization of $428
thousand and $563 thousand for the three months ended December
31, |
2023
and September 30, 2023, respectively. |
|
|
|
|
|
|
|
Nonaccrual
loans and leases have been included in the average loan and lease
balances. Loans held for sale have been included |
|
in
the average loan balances. Tax-equivalent amounts for the three
months ended December 31, 2023 and September 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 December 31, |
|
|
|
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 |
$ |
280,693 |
|
$ |
3,804 |
5.38 |
% |
$ |
57,059 |
|
$ |
487 |
3.39 |
% |
Obligations
of state and political subdivisions* |
|
2,277 |
|
|
14 |
2.44 |
|
|
2,266 |
|
|
17 |
2.98 |
|
Other debt
and equity securities |
|
487,310 |
|
|
3,678 |
2.99 |
|
|
503,451 |
|
|
3,316 |
2.61 |
|
Federal Home
Loan Bank, Federal Reserve Bank and other stock |
|
41,361 |
|
|
767 |
7.36 |
|
|
29,401 |
|
|
493 |
6.65 |
|
Total interest-earning deposits, investments and other
interest-earning assets |
|
811,641 |
|
|
8,263 |
4.04 |
|
|
592,177 |
|
|
4,313 |
2.89 |
|
|
|
|
|
|
|
|
|
|
Commercial,
financial, and agricultural loans |
|
973,450 |
|
|
17,485 |
7.13 |
|
|
1,007,121 |
|
|
14,471 |
5.70 |
|
Real
estate—commercial and construction loans |
|
3,590,477 |
|
|
50,715 |
5.60 |
|
|
3,223,822 |
|
|
39,459 |
4.86 |
|
Real
estate—residential loans |
|
1,585,705 |
|
|
19,133 |
4.79 |
|
|
1,335,220 |
|
|
14,340 |
4.26 |
|
Loans to
individuals |
|
27,667 |
|
|
558 |
8.00 |
|
|
26,772 |
|
|
401 |
5.94 |
|
Municipal
loans and leases* |
|
230,394 |
|
|
2,438 |
4.20 |
|
|
233,684 |
|
|
2,433 |
4.13 |
|
Lease
financings |
|
186,540 |
|
|
2,897 |
6.16 |
|
|
152,962 |
|
|
2,416 |
6.27 |
|
Gross loans and leases |
|
6,594,233 |
|
|
93,226 |
5.61 |
|
|
5,979,581 |
|
|
73,520 |
4.88 |
|
Total interest-earning assets |
|
7,405,874 |
|
|
101,489 |
5.44 |
|
|
6,571,758 |
|
|
77,833 |
4.70 |
|
Cash and due
from banks |
|
54,981 |
|
|
|
|
|
56,428 |
|
|
|
|
Allowance
for credit losses, loans and leases |
|
(84,386 |
) |
|
|
|
|
(75,390 |
) |
|
|
|
Premises and
equipment, net |
|
51,489 |
|
|
|
|
|
50,803 |
|
|
|
|
Operating
lease right-of-use assets |
|
31,251 |
|
|
|
|
|
30,413 |
|
|
|
|
Other
assets |
|
406,314 |
|
|
|
|
|
385,369 |
|
|
|
|
Total assets |
$ |
7,865,523 |
|
|
|
|
$ |
7,019,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
1,193,386 |
|
$ |
8,409 |
2.80 |
% |
$ |
924,012 |
|
$ |
2,746 |
1.18 |
% |
Money market
savings |
|
1,845,153 |
|
|
21,133 |
4.54 |
|
|
1,365,502 |
|
|
7,670 |
2.23 |
|
Regular
savings |
|
784,937 |
|
|
874 |
0.44 |
|
|
1,045,261 |
|
|
492 |
0.19 |
|
Time
deposits |
|
1,188,054 |
|
|
12,748 |
4.26 |
|
|
433,010 |
|
|
1,586 |
1.45 |
|
Total time and interest-bearing
deposits |
|
5,011,530 |
|
|
43,164 |
3.42 |
|
|
3,767,785 |
|
|
12,494 |
1.32 |
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
9,814 |
|
|
1 |
0.04 |
|
|
101,126 |
|
|
852 |
3.34 |
|
Long-term
debt |
|
318,805 |
|
|
3,026 |
3.77 |
|
|
95,000 |
|
|
324 |
1.35 |
|
Subordinated
notes |
|
148,693 |
|
|
2,281 |
6.09 |
|
|
124,250 |
|
|
1,815 |
5.80 |
|
Total borrowings |
|
477,312 |
|
|
5,308 |
4.41 |
|
|
320,376 |
|
|
2,991 |
3.70 |
|
Total interest-bearing
liabilities |
|
5,488,842 |
|
|
48,472 |
3.50 |
|
|
4,088,161 |
|
|
15,485 |
1.50 |
|
Noninterest-bearing deposits |
|
1,458,610 |
|
|
|
|
|
2,070,038 |
|
|
|
|
Operating
lease liabilities |
|
34,255 |
|
|
|
|
|
33,492 |
|
|
|
|
Accrued
expenses and other liabilities |
|
68,875 |
|
|
|
|
|
60,498 |
|
|
|
|
Total liabilities |
|
7,050,582 |
|
|
|
|
|
6,252,189 |
|
|
|
|
Total
interest-bearing liabilities and noninterest-bearing deposits
("Cost of Funds") |
|
6,947,452 |
|
|
2.77 |
|
|
6,158,199 |
|
|
1.00 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common
stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
Additional
paid-in capital |
|
300,558 |
|
|
|
|
|
300,121 |
|
|
|
|
Retained
earnings and other equity |
|
356,599 |
|
|
|
|
|
309,287 |
|
|
|
|
Total shareholders' equity |
|
814,941 |
|
|
|
|
|
767,192 |
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
7,865,523 |
|
|
|
|
$ |
7,019,381 |
|
|
|
|
Net interest
income |
|
$ |
53,017 |
|
|
|
$ |
62,348 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
1.94 |
|
|
|
3.20 |
|
Effect of
net interest-free funding sources |
|
|
0.90 |
|
|
|
0.56 |
|
Net interest
margin |
|
|
2.84 |
% |
|
|
3.76 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
134.93 |
% |
|
|
|
|
160.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Obligations of
states and political subdivisions and municipal loans and leases
are tax-exempt earning assets. |
|
|
Notes: For rate
calculation purposes, average loan and lease categories include
deferred fees and costs and purchase accounting adjustments. |
Net
interest income includes net deferred costs amortization of $428
thousand and $516 thousand for the three months |
|
ended
December 31, 2023 and 2022, respectively. |
|
|
|
|
|
|
|
Nonaccrual
loans and leases have been included in the average loan and lease
balances. Loans held for sale have been |
|
included
in the average loan balances. Tax-equivalent amounts for the three
months ended December 31, 2023 and 2022 have |
|
been
calculated using the Corporation’s federal applicable rate of
21.0%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univest
Financial Corporation |
|
Average
Balances and Interest Rates (Unaudited) |
|
|
|
For the Twelve Months Ended December 31, |
|
|
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 |
$ |
130,309 |
|
$ |
6,660 |
5.11 |
% |
$ |
325,875 |
|
$ |
1,920 |
0.59 |
% |
U.S.
government obligations |
|
- |
|
|
- |
- |
|
|
1,929 |
|
|
40 |
2.07 |
|
Obligations
of state and political subdivisions* |
|
2,282 |
|
|
62 |
2.72 |
|
|
2,302 |
|
|
71 |
3.08 |
|
Other debt
and equity securities |
|
505,343 |
|
|
14,225 |
2.81 |
|
|
510,961 |
|
|
11,392 |
2.23 |
|
Federal Home
Loan Bank, Federal Reserve Bank and other stock |
|
40,092 |
|
|
2,869 |
7.16 |
|
|
27,784 |
|
|
1,627 |
5.86 |
|
Total interest-earning deposits, investments and other
interest-earning assets |
|
678,026 |
|
|
23,816 |
3.51 |
|
|
868,851 |
|
|
15,050 |
1.73 |
|
|
|
|
|
|
|
|
|
|
Commercial,
financial, and agricultural loans |
|
991,505 |
|
|
67,487 |
6.81 |
|
|
963,755 |
|
|
43,861 |
4.55 |
|
Real
estate—commercial and construction loans |
|
3,483,576 |
|
|
188,644 |
5.42 |
|
|
3,060,689 |
|
|
127,906 |
4.18 |
|
Real
estate—residential loans |
|
1,505,799 |
|
|
70,349 |
4.67 |
|
|
1,219,275 |
|
|
47,472 |
3.89 |
|
Loans to
individuals |
|
27,063 |
|
|
2,011 |
7.43 |
|
|
26,642 |
|
|
1,325 |
4.97 |
|
Municipal
loans and leases* |
|
232,501 |
|
|
9,597 |
4.13 |
|
|
236,858 |
|
|
9,703 |
4.10 |
|
Lease
financings |
|
178,220 |
|
|
11,025 |
6.19 |
|
|
144,046 |
|
|
8,791 |
6.10 |
|
Gross loans and leases |
|
6,418,664 |
|
|
349,113 |
5.44 |
|
|
5,651,265 |
|
|
239,058 |
4.23 |
|
Total interest-earning assets |
|
7,096,690 |
|
|
372,929 |
5.25 |
|
|
6,520,116 |
|
|
254,108 |
3.90 |
|
Cash and due
from banks |
|
58,593 |
|
|
|
|
|
57,196 |
|
|
|
|
Allowance
for credit losses, loans and leases |
|
(82,474 |
) |
|
|
|
|
(72,069 |
) |
|
|
|
Premises and
equipment, net |
|
51,921 |
|
|
|
|
|
51,362 |
|
|
|
|
Operating
lease right-of-use assets |
|
31,351 |
|
|
|
|
|
30,443 |
|
|
|
|
Other
assets |
|
400,949 |
|
|
|
|
|
369,244 |
|
|
|
|
Total assets |
$ |
7,557,030 |
|
|
|
|
$ |
6,956,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Interest-bearing checking deposits |
$ |
1,034,327 |
|
$ |
23,668 |
2.29 |
% |
$ |
884,656 |
|
$ |
5,010 |
0.57 |
% |
Money market
savings |
|
1,611,169 |
|
|
64,153 |
3.98 |
|
|
1,389,226 |
|
|
13,835 |
1.00 |
|
Regular
savings |
|
871,332 |
|
|
3,249 |
0.37 |
|
|
1,056,019 |
|
|
1,269 |
0.12 |
|
Time
deposits |
|
931,944 |
|
|
34,979 |
3.75 |
|
|
443,845 |
|
|
5,308 |
1.20 |
|
Total time and interest-bearing
deposits |
|
4,448,772 |
|
|
126,049 |
2.83 |
|
|
3,773,746 |
|
|
25,422 |
0.67 |
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings |
|
148,776 |
|
|
7,095 |
4.77 |
|
|
60,468 |
|
|
1,389 |
2.30 |
|
Long-term
debt |
|
263,877 |
|
|
9,464 |
3.59 |
|
|
95,000 |
|
|
1,287 |
1.35 |
|
Subordinated
notes |
|
148,507 |
|
|
9,125 |
6.14 |
|
|
105,356 |
|
|
5,798 |
5.50 |
|
Total borrowings |
|
561,160 |
|
|
25,684 |
4.58 |
|
|
260,824 |
|
|
8,474 |
3.25 |
|
Total interest-bearing
liabilities |
|
5,009,932 |
|
|
151,733 |
3.03 |
|
|
4,034,570 |
|
|
33,896 |
0.84 |
|
Noninterest-bearing deposits |
|
1,646,286 |
|
|
|
|
|
2,068,086 |
|
|
|
|
Operating
lease liabilities |
|
34,474 |
|
|
|
|
|
33,508 |
|
|
|
|
Accrued
expenses and other liabilities |
|
60,671 |
|
|
|
|
|
48,629 |
|
|
|
|
Total liabilities |
|
6,751,363 |
|
|
|
|
|
6,184,793 |
|
|
|
|
Total
interest-bearing liabilities and noninterest-bearing deposits
("Cost of Funds") |
|
6,656,218 |
|
|
2.28 |
|
|
6,102,656 |
|
|
0.56 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
Common
stock |
|
157,784 |
|
|
|
|
|
157,784 |
|
|
|
|
Additional
paid-in capital |
|
299,804 |
|
|
|
|
|
299,121 |
|
|
|
|
Retained
earnings and other equity |
|
348,079 |
|
|
|
|
|
314,594 |
|
|
|
|
Total shareholders' equity |
|
805,667 |
|
|
|
|
|
771,499 |
|
|
|
|
Total liabilities and shareholders'
equity |
$ |
7,557,030 |
|
|
|
|
$ |
6,956,292 |
|
|
|
|
Net interest
income |
|
$ |
221,196 |
|
|
|
$ |
220,212 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
spread |
|
|
2.22 |
|
|
|
3.06 |
|
Effect of
net interest-free funding sources |
|
|
0.90 |
|
|
|
0.32 |
|
Net interest
margin |
|
|
3.12 |
% |
|
|
3.38 |
% |
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
141.65 |
% |
|
|
|
|
161.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Obligations of
states and political subdivisions and municipal loans and leases
are tax-exempt earning assets. |
|
|
Notes: For rate
calculation purposes, average loan and lease categories include
deferred fees and costs and purchase accounting adjustments. |
Net
interest income includes net deferred costs amortization of $2.1
million and $1.8 million for the twelve months ended |
|
December
31, 2023 and 2022, respectively. |
|
|
|
|
|
|
|
Nonaccrual
loans and leases have been included in the average loan and lease
balances. Loans held for sale have been |
|
included
in the average loan balances. Tax-equivalent amounts for the twelve
months ended December 31, 2023 and 2022 have |
been
calculated using the Corporation’s federal applicable rate of
21.0%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Univest
Financial Corporation |
Loan
Portfolio Overview (Unaudited) |
December 31,
2023 |
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
Industry Description |
Total Outstanding Balance |
|
% of Commercial Loan Portfolio |
|
CRE - Retail |
$ |
469,890 |
|
9.0 |
% |
Animal
Production |
|
361,597 |
|
6.9 |
|
CRE -
Multi-family |
|
320,176 |
|
6.2 |
|
CRE -
Office |
|
299,718 |
|
5.8 |
|
CRE - 1-4
Family Residential Investment |
|
285,559 |
|
5.5 |
|
CRE -
Industrial / Warehouse |
|
248,611 |
|
4.8 |
|
Hotels &
Motels (Accommodation) |
|
190,639 |
|
3.7 |
|
Specialty
Trade Contractors |
|
164,798 |
|
3.2 |
|
Education |
|
161,325 |
|
3.1 |
|
Homebuilding
(tract developers, remodelers) |
|
153,239 |
|
2.9 |
|
Nursing and
Residential Care Facilities |
|
150,666 |
|
2.9 |
|
Motor
Vehicle and Parts Dealers |
|
138,581 |
|
2.7 |
|
Merchant
Wholesalers, Durable Goods |
|
118,351 |
|
2.3 |
|
CRE -
Mixed-Use - Residential |
|
110,458 |
|
2.1 |
|
Crop
Production |
|
103,285 |
|
2.0 |
|
Repair and
Maintenance |
|
97,682 |
|
1.9 |
|
Wood Product
Manufacturing |
|
85,292 |
|
1.6 |
|
Real Estate
Lenders, Secondary Market Financing |
|
80,755 |
|
1.6 |
|
Rental and
Leasing Services |
|
79,767 |
|
1.5 |
|
Fabricated
Metal Product Manufacturing |
|
73,545 |
|
1.4 |
|
CRE -
Mixed-Use - Commercial |
|
72,685 |
|
1.4 |
|
Religious
Organizations, Advocacy Groups |
|
72,685 |
|
1.4 |
|
Personal and
Laundry Services |
|
72,117 |
|
1.4 |
|
Administrative and Support Services |
|
70,754 |
|
1.4 |
|
Amusement,
Gambling, and Recreation Industries |
|
70,686 |
|
1.4 |
|
Merchant
Wholesalers, Nondurable Goods |
|
65,491 |
|
1.3 |
|
Food
Services and Drinking Places |
|
65,143 |
|
1.3 |
|
Private
Equity & Special Purpose Entities (except 52592) |
|
63,447 |
|
1.2 |
|
Miniwarehouse / Self-Storage |
|
61,964 |
|
1.2 |
|
Food
Manufacturing |
|
59,662 |
|
1.1 |
|
Truck
Transportation |
|
53,306 |
|
1.0 |
|
Industries with >$50 million in
outstandings |
$ |
4,421,874 |
|
85.0 |
% |
Industries
with <$50 million in outstandings |
$ |
782,111 |
|
15.0 |
% |
Total Commercial Loans |
$ |
5,203,985 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Consumer Loans and Lease Financings |
Total Outstanding Balance |
|
|
|
Real
Estate-Residential Secured for Personal Purpose |
$ |
909,015 |
|
|
|
Real
Estate-Home Equity Secured for Personal Purpose |
|
179,282 |
|
|
|
Loans to
Individuals |
|
27,749 |
|
|
|
Lease
Financings |
|
247,183 |
|
|
|
Total - Consumer Loans and Lease Financings |
$ |
1,363,229 |
|
|
|
|
|
|
|
|
Total |
$ |
6,567,214 |
|
|
|
|
|
|
|
|
Univest
Financial Corporation |
Non-GAAP
Reconciliation |
December 31,
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 twelve months ended, |
|
(Dollars in thousands) |
12/31/23 |
|
09/30/23 |
|
06/30/23 |
|
03/31/23 |
|
12/31/22 |
|
12/31/23 |
|
12/31/22 |
|
Restructuring charges (a) |
|
|
$ |
189 |
|
|
$ |
- |
|
|
$ |
1,330 |
|
|
$ |
- |
|
|
$ |
184 |
|
|
$ |
1,519 |
|
|
$ |
184 |
|
|
Tax effect of restructuring charges |
|
|
|
(40 |
) |
|
|
- |
|
|
|
(279 |
) |
|
|
- |
|
|
|
(39 |
) |
|
|
(319 |
) |
|
|
(39 |
) |
|
Restructuring charges, net of tax |
|
|
$ |
149 |
|
|
$ |
- |
|
|
$ |
1,051 |
|
|
$ |
- |
|
|
$ |
145 |
|
|
$ |
1,200 |
|
|
$ |
145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
16,254 |
|
|
$ |
17,016 |
|
|
$ |
16,800 |
|
|
$ |
21,034 |
|
|
$ |
23,836 |
|
|
$ |
71,104 |
|
|
$ |
78,120 |
|
|
Amortization of intangibles, net of tax |
|
167 |
|
|
|
174 |
|
|
|
200 |
|
|
|
200 |
|
|
|
238 |
|
|
|
741 |
|
|
|
1,021 |
|
|
Net income before amortization of intangibles |
$ |
16,421 |
|
|
$ |
17,190 |
|
|
$ |
17,000 |
|
|
$ |
21,234 |
|
|
$ |
24,074 |
|
|
$ |
71,845 |
|
|
$ |
79,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
$ |
839,208 |
|
|
$ |
807,198 |
|
|
$ |
805,222 |
|
|
$ |
798,496 |
|
|
$ |
776,500 |
|
|
$ |
839,208 |
|
|
$ |
776,500 |
|
|
Goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
Other intangibles (b) |
|
|
(2,405 |
) |
|
|
(2,558 |
) |
|
|
(2,767 |
) |
|
|
(3,054 |
) |
|
|
(3,251 |
) |
|
|
(2,405 |
) |
|
|
(3,251 |
) |
|
Tangible common equity |
$ |
661,293 |
|
|
$ |
629,130 |
|
|
$ |
626,945 |
|
|
$ |
619,932 |
|
|
$ |
597,739 |
|
|
$ |
661,293 |
|
|
$ |
597,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
7,777,218 |
|
|
$ |
7,828,066 |
|
|
$ |
7,600,150 |
|
|
$ |
7,358,991 |
|
|
$ |
7,222,016 |
|
|
$ |
7,777,218 |
|
|
$ |
7,222,016 |
|
|
Goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
Other intangibles (b) |
|
|
(2,405 |
) |
|
|
(2,558 |
) |
|
|
(2,767 |
) |
|
|
(3,054 |
) |
|
|
(3,251 |
) |
|
|
(2,405 |
) |
|
|
(3,251 |
) |
|
Tangible assets |
$ |
7,599,303 |
|
|
$ |
7,649,998 |
|
|
$ |
7,421,873 |
|
|
$ |
7,180,427 |
|
|
$ |
7,043,255 |
|
|
$ |
7,599,303 |
|
|
$ |
7,043,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity |
$ |
814,941 |
|
|
$ |
811,515 |
|
|
$ |
806,709 |
|
|
$ |
789,153 |
|
|
$ |
767,192 |
|
|
$ |
805,667 |
|
|
$ |
771,499 |
|
|
Average goodwill |
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
|
(175,510 |
) |
|
Average other intangibles (b) |
|
|
(2,477 |
) |
|
|
(2,680 |
) |
|
|
(2,924 |
) |
|
|
(3,137 |
) |
|
|
(3,355 |
) |
|
|
(2,802 |
) |
|
|
(3,694 |
) |
|
Average tangible common equity |
$ |
636,954 |
|
|
$ |
633,325 |
|
|
$ |
628,275 |
|
|
$ |
610,506 |
|
|
$ |
588,327 |
|
|
$ |
627,355 |
|
|
$ |
592,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Associated with
branch optimization and headcount rationlization expense management
strategies |
|
|
|
|
|
|
|
|
|
(b) Amount does not include mortgage servicing rights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net
Univest Financial (NASDAQ:UVSP)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Univest Financial (NASDAQ:UVSP)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024