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, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

LoansGross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

Deposits and LiquidityTotal deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.

As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 2024. 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availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.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 $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

Noninterest IncomeNoninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

Noninterest ExpenseNoninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

Tax Provision The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.

Asset Quality and Provision for Credit LossesNonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, 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, 2024, June 30, 2024 and September 30, 2023.

Dividend and Share RepurchasesOn October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

Conference CallUnivest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

About Univest Financial CorporationUnivest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2024. 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 and demand for financial services in our market area; (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 and higher costs we pay to retain and attract deposits; (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) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation; (8) legislative, regulatory, accounting or tax changes; (9) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (10) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) 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, 2024
(Dollars in thousands)                            
                             
Balance Sheet (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
ASSETS                            
Cash and due from banks   $ 78,346     $ 66,808     $ 49,318     $ 72,815     $ 68,900          
Interest-earning deposits with other banks     426,354       124,103       152,288       176,984       221,441          
Cash and cash equivalents     504,700       190,911       201,606       249,799       290,341          
Investment securities held-to-maturity     137,681       140,112       143,474       145,777       149,451          
Investment securities available for sale, net of allowance for credit losses     354,100       342,776       350,819       351,553       334,538          
Investments in equity securities     2,406       2,995       3,355       3,293       4,054          
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost     40,235       37,438       37,394       40,499       42,417          
Loans held for sale     17,131       28,176       13,188       11,637       16,473          
Loans and leases held for investment     6,730,734       6,684,837       6,579,086       6,567,214       6,574,958          
Less: Allowance for credit losses, loans and leases     (86,041 )     (85,745 )     (85,632 )     (85,387 )     (83,837 )        
Net loans and leases held for investment     6,644,693       6,599,092       6,493,454       6,481,827       6,491,121          
Premises and equipment, net     47,411       48,174       48,739       51,441       51,287          
Operating lease right-of-use assets     29,260       29,985       30,702       31,795       31,053          
Goodwill     175,510       175,510       175,510       175,510       175,510          
Other intangibles, net of accumulated amortization     7,158       7,701       7,473       10,950       11,079          
Bank owned life insurance     138,744       137,823       137,896       131,344       130,522          
Accrued interest and other assets     106,708       114,753       102,958       95,203       100,220          
Total assets   $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066          
                             
LIABILITIES                            
Noninterest-bearing deposits   $ 1,323,953     $ 1,397,308     $ 1,401,806     $ 1,468,320     $ 1,432,559          
Interest-bearing deposits:     5,530,195       5,098,014       5,003,552       4,907,461       5,006,606          
Total deposits     6,854,148       6,495,322       6,405,358       6,375,781       6,439,165          
Short-term borrowings     8,256       11,781       4,816       6,306       14,676          
Long-term debt     225,000       250,000       250,000       310,000       320,000          
Subordinated notes     149,136       149,011       148,886       148,761       148,636          
Operating lease liabilities     32,246       33,015       33,744       34,851       34,017          
Accrued expenses and other liabilities     59,880       62,180       60,095       65,721       64,374          
Total liabilities     7,328,666       7,001,309       6,902,899       6,941,420       7,020,868          
                             
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     301,262       300,166       298,914       301,066       300,171          
Retained earnings     512,938       500,482       488,790       474,691       464,634          
Accumulated other comprehensive loss, net of tax benefit     (41,623 )     (54,124 )     (54,740 )     (50,646 )     (71,586 )        
Treasury stock, at cost     (53,290 )     (50,171 )     (47,079 )     (43,687 )     (43,805 )        
Total shareholders’ equity     877,071       854,137       843,669       839,208       807,198          
Total liabilities and shareholders’ equity   $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066          
                             
                             
    For the three months ended,   For the nine months ended,
Balance Sheet (Average)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
Assets   $ 8,005,265     $ 7,721,540     $ 7,696,575     $ 7,865,634     $ 7,693,983     $ 7,808,514   $ 7,453,070
Investment securities, net of allowance for credit losses     493,334       493,140       500,983       489,587       506,341       495,810     513,704
Loans and leases, gross     6,730,791       6,640,536       6,577,365       6,594,233       6,537,169       6,649,860     6,359,498
Deposits     6,641,324       6,353,752       6,303,854       6,470,141       6,222,710       6,433,737     5,968,659
Shareholders' equity     864,406       844,572       842,546       814,941       811,515       850,559     802,541
                                                     
Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2024
(Dollars in thousands)                            
                             
Summary of Major Loan and Lease Categories (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
Commercial, financial and agricultural   $ 1,044,043     $ 1,055,332     $ 1,014,568     $ 989,723     $ 1,050,004          
Real estate-commercial     3,442,083       3,373,889       3,283,729       3,302,798       3,275,140          
Real estate-construction     285,616       313,229       379,995       394,462       427,561          
Real estate-residential secured for business purpose     530,674       532,628       524,196       517,002       516,471          
Real estate-residential secured for personal purpose     969,562       952,665       922,412       909,015       861,122          
Real estate-home equity secured for personal purpose     182,901       179,150       177,446       179,282       176,855          
Loans to individuals     26,794       26,430       27,200       27,749       27,331          
Lease financings     249,061       251,514       249,540       247,183       240,474          
Total loans and leases held for investment, net of deferred income     6,730,734       6,684,837       6,579,086       6,567,214       6,574,958          
Less: Allowance for credit losses, loans and leases     (86,041 )     (85,745 )     (85,632 )     (85,387 )     (83,837 )        
Net loans and leases held for investment   $ 6,644,693     $ 6,599,092     $ 6,493,454     $ 6,481,827     $ 6,491,121          
                             
                             
Asset Quality Data (Period End)   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23        
Nonaccrual loans and leases, including nonaccrual loans held for sale*   $ 15,319     $ 16,200     $ 20,363     $ 20,527     $ 18,085          
Accruing loans and leases 90 days or more past due     310       205       268       534       2,135          
Total nonperforming loans and leases     15,629       16,405       20,631       21,061       20,220          
Other real estate owned     20,915       20,007       19,220       19,032       19,916          
Repossessed assets     79       149       167       -       -          
Total nonperforming assets   $ 36,623     $ 36,561     $ 40,018     $ 40,093     $ 40,136          
Nonaccrual loans and leases / Loans and leases held for investment     0.23 %     0.24 %     0.31 %     0.31 %     0.28 %        
Nonperforming loans and leases / Loans and leases held for investment     0.23 %     0.25 %     0.31 %     0.32 %     0.31 %        
Nonperforming assets / Total assets     0.45 %     0.47 %     0.52 %     0.52 %     0.51 %        
                             
Allowance for credit losses, loans and leases   $ 86,041     $ 85,745     $ 85,632     $ 85,387     $ 83,837          
Allowance for credit losses, loans and leases / Loans and leases held for investment     1.28 %     1.28 %     1.30 %     1.30 %     1.28 %        
Allowance for credit losses, loans and leases / Nonaccrual loans and leases     561.66 %     529.29 %     420.53 %     415.97 %     463.57 %        
Allowance for credit losses, loans and leases / Nonperforming loans and leases     550.52 %     522.68 %     415.06 %     405.43 %     414.62 %        
*Includes a $5.8 million loan held for sale at September 30, 2023.                            
                             
    For the three months ended,   For the nine months ended,
    09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
Net loan and lease charge-offs   $ 820     $ 809     $ 1,406     $ 1,074     $ 969     $ 3,035     $ 4,323  
Net loan and lease charge-offs (annualized)/Average loans and leases     0.05 %     0.05 %     0.09 %     0.06 %     0.06 %     0.06 %     0.09 %
                             
Univest Financial Corporation  
Consolidated Selected Financial Data (Unaudited)  
September 30, 2024  
(Dollars in thousands, except per share data)                              
    For the three months ended,   For the nine months ended,  
For the period:   09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23  
Interest income   $ 106,438   $ 99,832   $ 98,609   $ 101,232   $ 97,106   $ 304,879   $ 270,498  
Interest expense     53,234     48,805     47,142     48,472     43,516     149,181     103,261  
     Net interest income     53,204     51,027     51,467     52,760     53,590     155,698     167,237  
Provision for credit losses     1,414     707     1,432     1,931     2,024     3,553     8,839  
Net interest income after provision for credit losses     51,790     50,320     50,035     50,829     51,566     152,145     158,398  
Noninterest income:                              
     Trust fee income     2,110     2,008     2,108     1,943     1,910     6,226     5,789  
     Service charges on deposit accounts     2,037     1,982     1,871     1,960     1,816     5,890     5,088  
     Investment advisory commission and fee income     5,319     5,238     5,194     4,561     4,843     15,751     14,303  
     Insurance commission and fee income     5,238     5,167     7,201     4,596     4,852     17,606     16,447  
     Other service fee income     1,815     3,044     6,415     2,967     3,020     11,274     9,414  
     Bank owned life insurance income     921     1,086     842     823     806     2,849     2,362  
     Net gain on sales of investment securities     18     -     -     -     -     18     -  
     Net gain on mortgage banking activities     1,296     1,710     939     809     1,216     3,945     2,880  
     Other income     1,396     745     1,025     961     228     3,166     1,921  
Total noninterest income     20,150     20,980     25,595     18,620     18,691     66,725     58,204  
Noninterest expense:                              
Salaries, benefits and commissions     30,702     30,187     31,338     29,321     29,978     92,227     90,867  
Net occupancy     2,723     2,679     2,872     2,751     2,594     8,274     7,935  
Equipment     1,107     1,088     1,111     1,066     1,087     3,306     3,066  
Data processing     4,154     4,161     4,495     4,444     4,189     12,810     12,355  
Professional fees     1,579     1,466     1,688     1,768     1,763     4,733     5,373  
Marketing and advertising     490     715     416     632     555     1,621     1,548  
Deposit insurance premiums     1,097     1,098     1,135     1,350     1,258     3,330     3,475  
Intangible expenses     164     188     187     212     220     539     726  
Restructuring charges     -     -     -     189     -     -     1,330  
Other expense     6,536     7,126     6,832     7,313     7,344     20,494     21,641  
Total noninterest expense     48,552     48,708     50,074     49,046     48,988     147,334     148,316  
Income before taxes     23,388     22,592     25,556     20,403     21,269     71,536     68,286  
Income tax expense     4,810     4,485     5,251     4,149     4,253     14,546     13,436  
Net income   $ 18,578   $ 18,107   $ 20,305   $ 16,254   $ 17,016   $ 56,990   $ 54,850  
Net income per share:                              
     Basic   $ 0.64   $ 0.62   $ 0.69   $ 0.55   $ 0.58   $ 1.95   $ 1.86  
     Diluted   $ 0.63   $ 0.62   $ 0.69   $ 0.55   $ 0.58   $ 1.94   $ 1.86  
Dividends declared per share   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.63   $ 0.63  
Weighted average shares outstanding     29,132,948     29,246,977     29,413,999     29,500,147     29,479,066     29,264,161     29,410,852  
Period end shares outstanding     29,081,108     29,190,640     29,337,919     29,511,721     29,508,128     29,081,108     29,508,128  
                               
Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
                           
  For the three months ended,   For the nine months ended,
Profitability Ratios (annualized) 09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
                           
Return on average assets   0.92 %     0.94 %     1.06 %     0.82 %     0.88 %     0.97 %     0.98 %
Return on average assets, excluding restructuring   0.92 %     0.94 %     1.06 %     0.83 %     0.88 %     0.97 %     1.00 %
charges (1)                          
Return on average shareholders' equity   8.55 %     8.62 %     9.69 %     7.91 %     8.32 %     8.95 %     9.14 %
Return on average shareholders' equity, excluding   8.55 %     8.62 %     9.69 %     7.99 %     8.32 %     8.95 %     9.31 %
restructuring charges (1)                          
Return on average tangible common equity (1)(3)   10.84 %     11.01 %     12.38 %     10.23 %     10.77 %     11.40 %     11.87 %
Return on average tangible common equity, excluding   10.84 %     11.01 %     12.38 %     10.32 %     10.77 %     11.40 %     12.10 %
restructuring charges (1)(3)                          
Net interest margin (FTE)   2.82 %     2.84 %     2.88 %     2.84 %     2.96 %     2.85 %     3.22 %
Efficiency ratio (2)   65.7 %     67.1 %     64.6 %     68.3 %     67.3 %     65.8 %     65.3 %
Efficiency ratio, excluding restructuring charges (1)(2)   65.7 %     67.1 %     64.6 %     68.0 %     67.3 %     65.8 %     64.7 %
                           
Capitalization Ratios                          
                           
Dividends declared to net income   33.0 %     33.9 %     30.5 %     38.1 %     36.4 %     32.4 %     33.8 %
Shareholders' equity to assets (Period End)   10.69 %     10.87 %     10.89 %     10.79 %     10.31 %     10.69 %     10.31 %
Tangible common equity to tangible assets (1)   8.71 %     8.81 %     8.80 %     8.70 %     8.22 %     8.71 %     8.22 %
Common equity book value per share $ 30.16     $ 29.26     $ 28.76     $ 28.44     $ 27.36     $ 30.16     $ 27.36  
Tangible common equity book value per share (1) $ 24.05     $ 23.17     $ 22.70     $ 22.41     $ 21.32     $ 24.05     $ 21.32  
                           
Regulatory Capital Ratios (Period End)                          
Tier 1 leverage ratio   9.53 %     9.74 %     9.65 %     9.36 %     9.43 %     9.53 %     9.43 %
Common equity tier 1 risk-based capital ratio   10.88 %     10.72 %     10.71 %     10.58 %     10.32 %     10.88 %     10.32 %
Tier 1 risk-based capital ratio   10.88 %     10.72 %     10.71 %     10.58 %     10.32 %     10.88 %     10.32 %
Total risk-based capital ratio   14.27 %     14.09 %     14.11 %     13.90 %     13.58 %     14.27 %     13.58 %
                           
(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, 2024   June 30, 2024  
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 270,724   $ 3,624 5.33 % $ 84,546   $ 1,108 5.27 %
Obligations of state and political subdivisions*   1,283     7 2.17     1,269     7 2.22  
Other debt and equity securities   492,051     3,706 3.00     491,871     3,741 3.06  
Federal Home Loan Bank, Federal Reserve Bank and other stock   38,769     742 7.61     37,286     700 7.55  
Total interest-earning deposits, investments and other interest-earning assets   802,827     8,079 4.00     614,972     5,556 3.63  
                 
Commercial, financial, and agricultural loans   997,465     18,459 7.36     983,615     17,447 7.13  
Real estate—commercial and construction loans   3,592,556     52,672 5.83     3,549,206     50,577 5.73  
Real estate—residential loans   1,692,361     21,127 4.97     1,660,489     20,413 4.94  
Loans to individuals   26,651     549 8.20     26,821     542 8.13  
Tax-exempt loans and leases   232,159     2,565 4.40     230,495     2,476 4.32  
Lease financings   189,599     3,275 6.87     189,910     3,105 6.58  
     Gross loans and leases   6,730,791     98,647 5.83     6,640,536     94,560 5.73  
Total interest-earning assets   7,533,618     106,726 5.64     7,255,508     100,116 5.55  
Cash and due from banks   62,902           56,387        
Allowance for credit losses, loans and leases   (86,517 )         (86,293 )      
Premises and equipment, net   47,989           48,725        
Operating lease right-of-use assets   29,620           30,344        
Other assets   417,653           416,869        
      Total assets $ 8,005,265         $ 7,721,540        
                 
Liabilities:                
Interest-bearing checking deposits $ 1,215,166   $ 8,824 2.89 % $ 1,094,150   $ 7,311 2.69 %
Money market savings   1,849,628     21,213 4.56     1,692,759     19,131 4.55  
Regular savings   727,395     878 0.48     759,960     929 0.49  
Time deposits   1,491,560     17,255 4.60     1,422,113     16,134 4.56  
     Total time and interest-bearing deposits   5,283,749     48,170 3.63     4,968,982     43,505 3.52  
                 
Short-term borrowings   8,210     1 0.05     29,506     242 2.30  
Long-term debt   247,826     2,781 4.46     250,000     2,777 4.47  
Subordinated notes   149,068     2,282 6.09     148,943     2,281 6.16  
     Total borrowings   405,104     5,064 4.97     428,449     5,300 4.98  
     Total interest-bearing liabilities   5,688,853     53,234 3.72     5,397,431     48,805 3.64  
Noninterest-bearing deposits   1,357,575           1,384,770        
Operating lease liabilities   32,627           33,382        
Accrued expenses and other liabilities   61,804           61,385        
     Total liabilities   7,140,859           6,876,968        
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")   7,046,428     3.01     6,782,201     2.89  
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   300,565           299,426        
Retained earnings and other equity   406,057           387,362        
     Total shareholders' equity   864,406           844,572        
     Total liabilities and shareholders' equity $ 8,005,265         $ 7,721,540        
Net interest income   $ 53,492       $ 51,311    
                 
Net interest spread     1.92       1.91  
Effect of net interest-free funding sources     0.90       0.93  
Net interest margin     2.82 %     2.84 %
Ratio of average interest-earning assets to average interest-bearing liabilities   132.43 %         134.43 %      
                 
* Obligations of states and political subdivisions 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 $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024,, 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, 2024 and June 30, 2024 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 2024   2023  
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 270,724   $ 3,624 5.33 % $ 143,109   $ 1,865 5.17 %
Obligations of state and political subdivisions*   1,283     7 2.17     2,281     16 2.78  
Other debt and equity securities   492,051     3,706 3.00     504,060     3,540 2.79  
Federal Home Loan Bank, Federal Reserve Bank and other stock   38,769     742 7.61     40,406     712 6.99  
Total interest-earning deposits, investments and other interest-earning assets   802,827     8,079 4.00     689,856     6,133 3.53  
                 
Commercial, financial, and agricultural loans   997,465     18,459 7.36     995,355     17,545 6.99  
Real estate—commercial and construction loans   3,592,556     52,672 5.83     3,552,709     49,548 5.53  
Real estate—residential loans   1,692,361     21,127 4.97     1,543,360     18,270 4.70  
Loans to individuals   26,651     549 8.20     26,538     525 7.85  
Tax-exempt loans and leases   232,159     2,565 4.40     234,685     2,430 4.11  
Lease financings   189,599     3,275 6.87     184,522     2,928 6.30  
     Gross loans and leases   6,730,791     98,647 5.83     6,537,169     91,246 5.54  
Total interest-earning assets   7,533,618     106,726 5.64     7,227,025     97,379 5.35  
Cash and due from banks   62,902           62,673        
Allowance for credit losses, loans and leases   (86,517 )         (83,827 )      
Premises and equipment, net   47,989           52,071        
Operating lease right-of-use assets   29,620           31,647        
Other assets   417,653           404,394        
      Total assets $ 8,005,265         $ 7,693,983        
                 
Liabilities:                
Interest-bearing checking deposits $ 1,215,166   $ 8,824 2.89 % $ 1,070,063   $ 6,703 2.49 %
Money market savings   1,849,628     21,213 4.56     1,645,210     17,850 4.30  
Regular savings   727,395     878 0.48     828,672     861 0.41  
Time deposits   1,491,560     17,255 4.60     1,140,622     11,668 4.06  
     Total time and interest-bearing deposits   5,283,749     48,170 3.63     4,684,567     37,082 3.14  
                 
Short-term borrowings   8,210     1 0.05     93,028     1,117 4.76  
Long-term debt   247,826     2,781 4.46     320,000     3,036 3.76  
Subordinated notes   149,068     2,282 6.09     148,568     2,281 6.09  
     Total borrowings   405,104     5,064 4.97     561,596     6,434 4.55  
     Total interest-bearing liabilities   5,688,853     53,234 3.72     5,246,163     43,516 3.29  
Noninterest-bearing deposits   1,357,575           1,538,143        
Operating lease liabilities   32,627           34,788        
Accrued expenses and other liabilities   61,804           63,374        
     Total liabilities   7,140,859           6,882,468        
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")   7,046,428     3.01     6,784,306     2.54  
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   300,565           299,575        
Retained earnings and other equity   406,057           354,156        
     Total shareholders' equity   864,406           811,515        
     Total liabilities and shareholders' equity $ 8,005,265         $ 7,693,983        
Net interest income   $ 53,492       $ 53,863    
                 
Net interest spread     1.92       2.06  
Effect of net interest-free funding sources     0.90       0.90  
Net interest margin     2.82 %     2.96 %
Ratio of average interest-earning assets to average interest-bearing liabilities   132.43 %         137.76 %      
                 
* Obligations of states and political subdivisions 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 $897 thousand and $563 thousand for the three months ended September 30, 2024 and 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, 2024 and 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 Nine Months Ended September 30,  
Tax Equivalent Basis 2024   2023  
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 159,114   $ 6,341 5.32 % $ 79,630   $ 2,856 4.80 %
Obligations of state and political subdivisions*   1,500     26 2.32     2,284     48 2.81  
Other debt and equity securities   494,310     11,094 3.00     511,420     10,547 2.76  
Federal Home Loan Bank, Federal Reserve Bank and other stock   38,392     2,166 7.54     39,664     2,102 7.09  
Total interest-earning deposits, investments and other interest-earning assets   693,316     19,627 3.78     632,998     15,553 3.29  
                 
Commercial, financial, and agricultural loans   972,003     52,429 7.21     997,590     50,002 6.70  
Real estate—commercial and construction loans   3,572,375     153,890 5.75     3,447,551     137,929 5.35  
Real estate—residential loans   1,657,142     61,095 4.92     1,478,871     51,216 4.63  
Loans to individuals   26,928     1,639 8.13     26,859     1,453 7.23  
Tax-exempt loans and leases   231,679     7,505 4.33     233,211     7,159 4.10  
Lease financings   189,733     9,549 6.72     175,416     8,128 6.20  
     Gross loans and leases   6,649,860     286,107 5.75     6,359,498     255,887 5.38  
Total interest-earning assets   7,343,176     305,734 5.56     6,992,496     271,440 5.19  
Cash and due from banks   58,070           59,811        
Allowance for credit losses, loans and leases   (86,435 )         (81,829 )      
Premises and equipment, net   49,098           52,067        
Operating lease right-of-use assets   30,359           31,384        
Other assets   414,246           399,141        
      Total assets $ 7,808,514         $ 7,453,070        
                 
Liabilities:                
Interest-bearing checking deposits $ 1,163,526   $ 24,353 2.80 % $ 980,725   $ 15,259 2.08 %
Money market savings   1,749,592     59,564 4.55     1,532,318     43,020 3.75  
Regular savings   752,336     2,712 0.48     900,448     2,375 0.35  
Time deposits   1,384,576     47,019 4.54     845,635     22,231 3.51  
     Total time and interest-bearing deposits   5,050,030     133,648 3.54     4,259,126     82,885 2.60  
                 
Short-term borrowings   15,919     248 2.08     195,606     7,094 4.85  
Long-term debt   263,380     8,441 4.28     245,366     6,438 3.51  
Subordinated notes   148,944     6,844 6.14     148,444     6,844 6.16  
     Total borrowings   428,243     15,533 4.85     589,416     20,376 4.62  
     Total interest-bearing liabilities   5,478,273     149,181 3.64     4,848,542     103,261 2.85  
Noninterest-bearing deposits   1,383,707           1,709,533        
Operating lease liabilities   33,389           34,548        
Accrued expenses and other liabilities   62,586           57,906        
     Total liabilities   6,957,955           6,650,529        
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")   6,861,980     2.90     6,558,075     2.11  
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   300,224           299,550        
Retained earnings and other equity   392,551           345,207        
     Total shareholders' equity   850,559           802,541        
     Total liabilities and shareholders' equity $ 7,808,514         $ 7,453,070        
Net interest income   $ 156,553       $ 168,179    
                 
Net interest spread     1.92       2.34  
Effect of net interest-free funding sources     0.93       0.88  
Net interest margin     2.85 %     3.22 %
Ratio of average interest-earning assets to average interest-bearing liabilities   134.04 %         144.22 %      
                 
* Obligations of states and political subdivisions 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 $2.0 million and $1.7 million for the nine months ended September 30, 2024 and 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 nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.  
                 
Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2024
       
(Dollars in thousands)      
Industry Description Total Outstanding Balance   % of Commercial Loan Portfolio
CRE - Retail $ 458,230   8.6 %
Animal Production   384,554   7.2 %
CRE - Multi-family   340,181   6.4 %
CRE - 1-4 Family Residential Investment   295,454   5.6 %
CRE - Office   294,508   5.6 %
CRE - Industrial / Warehouse   254,019   4.8 %
Hotels & Motels (Accommodation)   186,130   3.5 %
Specialty Trade Contractors   180,486   3.4 %
Nursing and Residential Care Facilities   167,467   3.2 %
Education   167,282   3.2 %
Motor Vehicle and Parts Dealers   129,799   2.4 %
Repair and Maintenance   127,927   2.4 %
Merchant Wholesalers, Durable Goods   125,009   2.4 %
Homebuilding (tract developers, remodelers)   120,040   2.2 %
CRE - Mixed-Use - Residential   110,137   2.1 %
Crop Production   104,343   2.0 %
Wood Product Manufacturing   93,505   1.8 %
Food Services and Drinking Places   88,178   1.7 %
Real Estate Lenders, Secondary Market Financing   85,171   1.6 %
Rental and Leasing Services   79,876   1.5 %
Religious Organizations, Advocacy Groups   73,802   1.4 %
Fabricated Metal Product Manufacturing   72,794   1.4 %
CRE - Mixed-Use - Commercial   72,268   1.4 %
Administrative and Support Services   71,787   1.4 %
Personal and Laundry Services   71,184   1.3 %
Merchant Wholesalers, Nondurable Goods   69,363   1.3 %
Amusement, Gambling, and Recreation Industries   69,052   1.3 %
Miniwarehouse / Self-Storage   65,176   1.2 %
Food Manufacturing   61,472   1.1 %
Truck Transportation   52,570   1.0 %
Industries with >$50 million in outstandings $ 4,471,764   84.3
Industries with <$50 million in outstandings $ 830,652   15.7
Total Commercial Loans $ 5,302,416   100.0
       
       
Consumer Loans and Lease Financings Total Outstanding Balance    
Real Estate-Residential Secured for Personal Purpose   969,562    
Real Estate-Home Equity Secured for Personal Purpose   182,901    
Loans to Individuals   26,794    
Lease Financings   249,061    
Total - Consumer Loans and Lease Financings $ 1,428,318    
       
Total $ 6,730,734    
       
Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2024
 
Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
                                 
        As of or for the three months ended,   As of or for the nine months ended,
(Dollars in thousands) 09/30/24   06/30/24   03/31/24   12/31/23   09/30/23   09/30/24   09/30/23
Restructuring charges (a)     $ -     $ -     $ -     $ 189     $ -     $ -     $ 1,330  
Tax effect of restructuring charges       -       -       -       (40 )     -       -       (279 )
Restructuring charges, net of tax     $ -     $ -     $ -     $ 149     $ -     $ -     $ 1,051  
                                 
Net income $ 18,578     $ 18,107     $ 20,305     $ 16,254     $ 17,016     $ 56,990     $ 54,850  
Amortization of intangibles, net of tax   130       149       148       167       174       426       574  
Net income before amortization of intangibles $ 18,708     $ 18,256     $ 20,453     $ 16,421     $ 17,190     $ 57,416     $ 55,424  
                                 
Shareholders' equity $ 877,071     $ 854,137     $ 843,669     $ 839,208     $ 807,198     $ 877,071     $ 807,198  
Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
Other intangibles (b)     (2,147 )     (2,157 )     (2,273 )     (2,405 )     (2,558 )     (2,147 )     (2,558 )
Tangible common equity $ 699,414     $ 676,470     $ 665,886     $ 661,293     $ 629,130     $ 699,414     $ 629,130  
                                 
Total assets $ 8,205,737     $ 7,855,446     $ 7,746,568     $ 7,780,628     $ 7,828,066     $ 8,205,737     $ 7,828,066  
Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
Other intangibles (b)     (2,147 )     (2,157 )     (2,273 )     (2,405 )     (2,558 )     (2,147 )     (2,558 )
Tangible assets $ 8,028,080     $ 7,677,779     $ 7,568,785     $ 7,602,713     $ 7,649,998     $ 8,028,080     $ 7,649,998  
                                 
Average shareholders' equity $ 864,406     $ 844,572     $ 842,546     $ 814,941     $ 811,515     $ 850,559     $ 802,541  
Average goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
Average other intangibles (b)     (2,086 )     (2,222 )     (2,318 )     (2,477 )     (2,680 )     (2,209 )     (2,913 )
Average tangible common equity $ 686,810     $ 666,840     $ 664,718     $ 636,954     $ 633,325     $ 672,840     $ 624,118  
                                 
(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)
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Univest Financial (NASDAQ:UVSP)
過去 株価チャート
から 11 2023 まで 11 2024 Univest Financialのチャートをもっと見るにはこちらをクリック