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withdrawn at will.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 |
|
|
|
|
|
|
|
|
|
|
|
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CONTACT:
Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net
Univest Financial (NASDAQ:UVSP)
過去 株価チャート
から 10 2024 まで 11 2024
Univest Financial (NASDAQ:UVSP)
過去 株価チャート
から 11 2023 まで 11 2024