(2022 Loan Growth of 16.0% (excluding PPP1 loans))
SOUDERTON, Pa., Jan. 25, 2023 (GLOBE NEWSWIRE) -- Univest Financial Corporation ("Univest" or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended December 31, 2022 was $23.8 million, or $0.81 diluted earnings per share, compared to net income of $17.4 million, or $0.59 diluted earnings per share, for the quarter ended December 31, 2021.
One-Time Items
The financial results for the quarter included bank owned life insurance ("BOLI") death benefit claims of $526 thousand, which represented $0.02 diluted earnings per share. Restructuring charges of $184 thousand were recognized in the fourth quarter related to the consolidation of two financial centers.
Loans
Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans1, increased $842.8 million, or 16.0%, from December 31, 2021, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings. Gross loans and leases, excluding PPP loans, increased $274.0 million, or 18.8% (annualized), from September 30, 2022, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.
Deposits
Total deposits decreased $151.3 million, or 2.5%, from December 31, 2021, primarily due to decreases in commercial, consumer and public funds deposits partially offset by an increase in brokered deposits. Total deposits increased $116.8 million, or 8.0% (annualized), from September 30, 2022, primarily due to increases in commercial, consumer and brokered deposits partially offset by decreases in public funds deposits.
Net Interest Income and Margin
Net interest income of $61.9 million for the three months ended December 31, 2022 increased $3.7 million, or 6.3%, from the three months ended September 30, 2022, and $14.4 million, or 30.3%, from the three months ended December 31, 2021. The increase in net interest income for the three months ended December 31, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity of the Corporation's balance sheet, offset by an increase in costs of funds.
Net interest margin, on a tax-equivalent basis, was 3.76% for the fourth quarter of 2022, compared to 3.67% for the third quarter of 2022 and 2.86% for the fourth quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended December 31, 2022 compared to one basis point for the quarter ended September 30, 2022 and 43 basis points for the quarter ended December 31, 2021. PPP loans had no impact on net interest margin for the quarters ended December 31, 2022 and September 30, 2022 and had a favorable impact on net interest margin of eight basis points for the quarter ended December 31, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.77% for the quarter ended December 31, 2022 compared to 3.68% for the quarter ended September 30, 2022 and 3.21% for the quarter ended December 31, 2021.
Noninterest Income
Noninterest income for the quarter ended December 31, 2022 was $20.5 million, an increase of $1.3 million, or 6.6%, from the comparable period in the prior year.
Investment advisory commission and fee income increased $700 thousand, or 14.3%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase was primarily due to a $1.2 million adjustment in the quarter for previously unrecorded revenue of which $815 thousand related to the first nine months of 2022. This adjustment was partially offset by decreased income driven by reduced assets under management due to market volatility. Insurance commission and fee income increased $698 thousand, or 18.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.
Other income increased $1.2 million, or 114.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year due to a $1.1 million increase in interest rate swap income.
BOLI increased $511 thousand, or 71.1%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to death benefit claims as previously discussed.
Net gain on mortgage banking activities decreased $2.1 million, or 82.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of gain on sale margins.
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2022 was $47.3 million, an increase of $4.0 million, or 9.2%, from the comparable period in the prior year. The results for the three months ended December 31, 2022 included approximately $434 thousand in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to personalize experiences and seamlessly deliver existing products and services, digitally, across an expanded footprint.
Salaries, benefits and commissions increased $1.7 million, or 6.0%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western Pennsylvania, and annual merit increases.
Data processing expenses increased $684 thousand, or 20.4%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology, general price increases, and $206 thousand in support of the previously discussed digital transformation initiative for the respective period.
Restructuring charges increased $184 thousand for the quarter ended December 31, 2022 compared to the comparable period in the prior year as previously discussed.
Other expense increased $1.2 million, or 21.3%, for the quarter compared to the comparable period in the prior year primarily due to increases in travel and entertainment expenses of $228 thousand for the quarter and $430 thousand of fraud losses.
Tax Provision
The effective income tax rate was 19.6% for the year ended December 31, 2022, compared to an effective income tax rate of 19.7% for the year ended December 31, 2021. The effective tax rate for the year ended December 31, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.
Asset Quality and Provision for Credit Losses
Nonperforming assets were $33.5 million at December 31, 2022, compared to $33.0 million at September 30, 2022 and $34.0 million at December 31, 2021.
Net loan and lease charge-offs were $908 thousand and $1.2 million for the three months ended December 31, 2022 and September 30, 2022, respectively, compared to net loan and lease recoveries of $243 thousand for the three months ended December 31, 2021. Net loan and lease charge-offs were $3.9 million and $213 thousand for the year ended December 31, 2022 and December 31, 2021, respectively.
The provision for credit losses was $5.4 million for the three months ended December 31, 2022 compared to a provision for credit losses of $3.6 million and $1.4 million for the three months ended September 30, 2022 and December 31, 2021, respectively. The provision for credit losses was $12.2 million for the year ended December 31, 2022 compared to a reversal of provision for credit losses of $10.1 million for the comparable period in the prior year. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.29% at December 31, 2022 compared to 1.28% at September 30, 2022 and 1.35% at December 31, 2021.
Dividend
On January 25, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 22, 2023 to shareholders of record as of February 8, 2023.
Conference Call
Univest will host a conference call to discuss fourth quarter 2022 results on Thursday, January 26, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login'show=789ec9e7&confId=45853. The general public can access the call by dialing 1-844-200-6205; using Access Code 610261. A replay of the conference call will be available through February 23, 2023 by dialing 1-866-813-9403; using Access Code: 720149.
1Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included within this document.
About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.2 billion in assets and $4.2 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2022. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, 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, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory, accounting or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (11) potential recessionary conditions and/or (12) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.
(UVSP - ER)
| Univest Financial Corporation | ||||||||||||||||||||||||||
| Consolidated Selected Financial Data (Unaudited) | ||||||||||||||||||||||||||
| December 31, 2022 | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| Balance Sheet (Period End) | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | |||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 84,176 | $ | 65,859 | $ | 59,590 | $ | 57,307 | $ | 49,202 | ||||||||||||||||
| Interest-earning deposits with other banks | 68,623 | 47,451 | 35,187 | 716,474 | 840,948 | |||||||||||||||||||||
| Cash and cash equivalents | 152,799 | 113,310 | 94,777 | 773,781 | 890,150 | |||||||||||||||||||||
| Investment securities held-to-maturity | 154,727 | 159,170 | 159,808 | 166,339 | 176,983 | |||||||||||||||||||||
| Investment securities available for sale, net of allowance for credit losses | 350,256 | 347,479 | 351,382 | 349,994 | 317,007 | |||||||||||||||||||||
| Investments in equity securities | 2,579 | 2,994 | 2,934 | 2,569 | 2,999 | |||||||||||||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost | 33,841 | 29,475 | 29,116 | 26,330 | 28,186 | |||||||||||||||||||||
| Loans held for sale | 5,037 | 9,087 | 8,352 | 14,521 | 21,600 | |||||||||||||||||||||
| Loans and leases held for investment | 6,123,230 | 5,849,259 | 5,661,777 | 5,400,786 | 5,310,017 | |||||||||||||||||||||
| Less: Allowance for credit losses, loans and leases | (79,004 | ) | (74,929 | ) | (72,011 | ) | (68,286 | ) | (71,924 | ) | ||||||||||||||||
| Net loans and leases held for investment | 6,044,226 | 5,774,330 | 5,589,766 | 5,332,500 | 5,238,093 | |||||||||||||||||||||
| Premises and equipment, net | 50,939 | 50,533 | 50,080 | 50,429 | 56,882 | |||||||||||||||||||||
| Operating lease right-of-use assets | 30,059 | 30,654 | 30,929 | 30,498 | 30,407 | |||||||||||||||||||||
| Goodwill | 175,510 | 175,510 | 175,510 | 175,510 | 175,510 | |||||||||||||||||||||
| Other intangibles, net of accumulated amortization | 11,384 | 11,650 | 11,728 | 11,784 | 11,848 | |||||||||||||||||||||
| Bank owned life insurance | 120,297 | 120,035 | 120,103 | 119,398 | 118,699 | |||||||||||||||||||||
| Accrued interest and other assets | 90,362 | 83,170 | 76,328 | 54,087 | 54,057 | |||||||||||||||||||||
| Total assets | $ | 7,222,016 | $ | 6,907,397 | $ | 6,700,813 | $ | 7,107,740 | $ | 7,122,421 | ||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 2,037,562 | $ | 1,968,422 | $ | 2,062,538 | $ | 2,136,467 | $ | 2,065,423 | ||||||||||||||||
| Interest-bearing deposits: | 3,866,263 | 3,818,554 | 3,500,510 | 3,911,465 | 3,989,701 | |||||||||||||||||||||
| Total deposits | 5,903,825 | 5,786,976 | 5,563,048 | 6,047,932 | 6,055,124 | |||||||||||||||||||||
| Short-term borrowings | 197,141 | 80,711 | 97,606 | 18,976 | 20,106 | |||||||||||||||||||||
| Long-term debt | 95,000 | 95,000 | 95,000 | 95,000 | 95,000 | |||||||||||||||||||||
| Subordinated notes | 148,260 | 99,107 | 99,030 | 98,952 | 98,874 | |||||||||||||||||||||
| Operating lease liabilities | 33,153 | 33,718 | 33,951 | 33,566 | 33,453 | |||||||||||||||||||||
| Accrued expenses and other liabilities | 68,137 | 57,698 | 48,253 | 39,459 | 46,070 | |||||||||||||||||||||
| Total liabilities | 6,445,516 | 6,153,210 | 5,936,888 | 6,333,885 | 6,348,627 | |||||||||||||||||||||
| SHAREHOLDER'S EQUITY | ||||||||||||||||||||||||||
| Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued | 157,784 | 157,784 | 157,784 | 157,784 | 157,784 | |||||||||||||||||||||
| Additional paid-in capital | 300,808 | 299,791 | 298,800 | 297,945 | 299,181 | |||||||||||||||||||||
| Retained earnings | 428,637 | 410,942 | 396,295 | 389,332 | 375,124 | |||||||||||||||||||||
| Accumulated other comprehensive loss, net of tax benefit | (62,104 | ) | (64,985 | ) | (42,781 | ) | (31,909 | ) | (16,353 | ) | ||||||||||||||||
| Treasury stock, at cost | (48,625 | ) | (49,345 | ) | (46,173 | ) | (39,297 | ) | (41,942 | ) | ||||||||||||||||
| Total shareholders' equity | 776,500 | 754,187 | 763,925 | 773,855 | 773,794 | |||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,222,016 | $ | 6,907,397 | $ | 6,700,813 | $ | 7,107,740 | $ | 7,122,421 | ||||||||||||||||
| For the three months ended, | For the twelve months ended, | |||||||||||||||||||||||||
| Balance Sheet (Average) | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||||||||||||||||||
| Assets | $ | 7,019,381 | $ | 6,797,466 | $ | 6,962,401 | $ | 7,047,980 | $ | 7,088,289 | $ | 6,956,292 | $ | 6,655,443 | ||||||||||||
| Investment securities, net of allowance for credit losses | 505,717 | 517,335 | 515,741 | 522,128 | 469,588 | 515,192 | 406,463 | |||||||||||||||||||
| Loans and leases, gross | 5,979,581 | 5,752,119 | 5,520,580 | 5,344,698 | 5,255,279 | 5,651,265 | 5,322,475 | |||||||||||||||||||
| Deposits | 5,837,823 | 5,645,291 | 5,903,173 | 5,984,815 | 6,041,798 | 5,841,832 | 5,591,195 | |||||||||||||||||||
| Shareholders' equity | 767,192 | 773,099 | 771,410 | 774,358 | 762,334 | 771,499 | 734,456 | |||||||||||||||||||
| Univest Financial Corporation | ||||||||||||||||||||||||||||
| Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited) | ||||||||||||||||||||||||||||
| December 31, 2022 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| Summary of Major Loan and Lease Categories (Period End) | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | |||||||||||||||||||||||
| Commercial, financial and agricultural | $ | 1,086,781 | $ | 1,052,733 | $ | 1,028,354 | $ | 932,485 | $ | 956,396 | ||||||||||||||||||
| Paycheck Protection Program | 2,147 | 2,207 | 5,358 | 10,298 | 31,748 | |||||||||||||||||||||||
| Real estate-commercial | 3,027,955 | 2,936,204 | 2,870,286 | 2,816,737 | 2,718,535 | |||||||||||||||||||||||
| Real estate-construction | 381,811 | 329,915 | 319,449 | 285,083 | 283,918 | |||||||||||||||||||||||
| Real estate-residential secured for business purpose | 478,254 | 443,837 | 419,652 | 412,486 | 409,900 | |||||||||||||||||||||||
| Real estate-residential secured for personal purpose | 730,395 | 685,771 | 629,144 | 568,735 | 540,566 | |||||||||||||||||||||||
| Real estate-home equity secured for personal purpose | 176,699 | 175,843 | 168,536 | 160,134 | 158,909 | |||||||||||||||||||||||
| Loans to individuals | 27,873 | 26,679 | 27,061 | 26,249 | 25,504 | |||||||||||||||||||||||
| Lease financings | 211,315 | 196,070 | 193,937 | 188,579 | 184,541 | |||||||||||||||||||||||
| Total loans and leases held for investment, net of deferred income | 6,123,230 | 5,849,259 | 5,661,777 | 5,400,786 | 5,310,017 | |||||||||||||||||||||||
| Less: Allowance for credit losses, loans and leases | (79,004 | ) | (74,929 | ) | (72,011 | ) | (68,286 | ) | (71,924 | ) | ||||||||||||||||||
| Net loans and leases held for investment | $ | 6,044,226 | $ | 5,774,330 | $ | 5,589,766 | $ | 5,332,500 | $ | 5,238,093 | ||||||||||||||||||
| Asset Quality Data (Period End) | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | |||||||||||||||||||||||
| Nonaccrual loans and leases, including nonaccrual troubled debt restructured | ||||||||||||||||||||||||||||
| loans and leases | $ | 13,353 | $ | 13,620 | $ | 13,355 | $ | 30,876 | $ | 33,210 | ||||||||||||||||||
| Accruing loans and leases 90 days or more past due | 875 | 416 | 2,784 | 274 | 498 | |||||||||||||||||||||||
| Accruing troubled debt restructured loans and leases | 49 | 50 | 50 | 51 | 51 | |||||||||||||||||||||||
| Total nonperforming loans and leases | 14,277 | 14,086 | 16,189 | 31,201 | 33,759 | |||||||||||||||||||||||
| Other real estate owned | 19,258 | 18,960 | 18,604 | 279 | 279 | |||||||||||||||||||||||
| Total nonperforming assets | $ | 33,535 | $ | 33,046 | $ | 34,793 | $ | 31,480 | $ | 34,038 | ||||||||||||||||||
| Nonaccrual loans and leases / Loans and leases held for investment | 0.22 | % | 0.23 | % | 0.24 | % | 0.57 | % | 0.63 | % | ||||||||||||||||||
| Nonperforming loans and leases / Loans and leases held for investment | 0.23 | % | 0.24 | % | 0.29 | % | 0.58 | % | 0.64 | % | ||||||||||||||||||
| Nonperforming assets / Total assets | 0.46 | % | 0.48 | % | 0.52 | % | 0.44 | % | 0.48 | % | ||||||||||||||||||
| Allowance for credit losses, loans and leases | $ | 79,004 | $ | 74,929 | $ | 72,011 | $ | 68,286 | $ | 71,924 | ||||||||||||||||||
| Allowance for credit losses, loans and leases / Loans and leases held for investment | 1.29 | % | 1.28 | % | 1.27 | % | 1.26 | % | 1.35 | % | ||||||||||||||||||
| Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1) | 1.29 | % | 1.28 | % | 1.27 | % | 1.27 | % | 1.36 | % | ||||||||||||||||||
| Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment | 591.66 | % | 550.14 | % | 539.21 | % | 221.16 | % | 216.57 | % | ||||||||||||||||||
| Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment | 553.37 | % | 531.94 | % | 444.81 | % | 218.86 | % | 213.05 | % | ||||||||||||||||||
| For the three months ended, | For the twelve months ended, | |||||||||||||||||||||||||||
| 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | ||||||||||||||||||||||
| Net loan and lease charge-offs (recoveries) | $ | 908 | $ | 1,196 | $ | 1,715 | $ | 76 | $ | (243 | ) | $ | 3,895 | $ | 213 | |||||||||||||
| Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases | 0.06 | % | 0.08 | % | 0.12 | % | 0.01 | % | (0.02 | %) | 0.07 | % | 0.00 | % | ||||||||||||||
| (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included at the end of this document. | ||||||||||||||||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||||
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||
| For the three months ended, | For the twelve months ended, | ||||||||||||||||||||||
| For the period: | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | ||||||||||||||||
| Interest income | $ | 77,401 | $ | 66,877 | $ | 56,717 | $ | 51,198 | $ | 52,262 | $ | 252,193 | $ | 209,731 | |||||||||
| Interest expense | 15,485 | 8,627 | 5,246 | 4,538 | 4,737 | 33,896 | 21,348 | ||||||||||||||||
| Net interest income | 61,916 | 58,250 | 51,471 | 46,660 | 47,525 | 218,297 | 188,383 | ||||||||||||||||
| Provison (reversal of provision) for credit losses | 5,416 | 3,558 | 6,674 | (3,450 | ) | 1,392 | 12,198 | (10,132 | ) | ||||||||||||||
| Net interest income after provision for credit losses | 56,500 | 54,692 | 44,797 | 50,110 | 46,133 | 206,099 | 198,515 | ||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||
| Trust fee income | 1,808 | 1,835 | 1,998 | 2,102 | 2,086 | 7,743 | 8,403 | ||||||||||||||||
| Service charges on deposit accounts | 1,575 | 1,522 | 1,574 | 1,504 | 1,486 | 6,175 | 5,504 | ||||||||||||||||
| Investment advisory commission and fee income | 5,585 | 4,199 | 4,812 | 5,152 | 4,885 | 19,748 | 18,936 | ||||||||||||||||
| Insurance commission and fee income | 4,424 | 4,442 | 4,629 | 5,570 | 3,726 | 19,065 | 16,357 | ||||||||||||||||
| Other service fee income | 3,236 | 3,124 | 3,309 | 2,756 | 2,759 | 12,425 | 10,275 | ||||||||||||||||
| Bank owned life insurance income | 1,230 | 1,153 | 705 | 699 | 719 | 3,787 | 3,981 | ||||||||||||||||
| Net gain on sales of investment securities | - | - | - | 30 | 5 | 30 | 145 | ||||||||||||||||
| Net gain on mortgage banking activities | 436 | 817 | 1,230 | 1,929 | 2,518 | 4,412 | 15,141 | ||||||||||||||||
| Other income | 2,164 | 867 | 741 | 728 | 1,008 | 4,500 | 4,482 | ||||||||||||||||
| Total noninterest income | 20,458 | 17,959 | 18,998 | 20,470 | 19,192 | 77,885 | 83,224 | ||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||
| Salaries, benefits and commissions | 29,028 | 29,400 | 29,133 | 28,245 | 27,374 | 115,806 | 104,191 | ||||||||||||||||
| Net occupancy | 2,551 | 2,504 | 2,422 | 2,716 | 2,477 | 10,193 | 10,397 | ||||||||||||||||
| Equipment | 977 | 968 | 977 | 982 | 985 | 3,904 | 3,899 | ||||||||||||||||
| Data processing | 4,039 | 3,901 | 3,708 | 3,567 | 3,355 | 15,215 | 12,743 | ||||||||||||||||
| Professional fees | 1,829 | 2,521 | 2,844 | 2,138 | 1,750 | 9,332 | 7,687 | ||||||||||||||||
| Marketing and advertising | 739 | 605 | 693 | 425 | 683 | 2,462 | 2,063 | ||||||||||||||||
| Deposit insurance premiums | 708 | 662 | 812 | 893 | 698 | 3,075 | 2,712 | ||||||||||||||||
| Intangible expenses | 301 | 309 | 342 | 341 | 267 | 1,293 | 979 | ||||||||||||||||
| Restructuring charges | 184 | - | - | - | - | 184 | - | ||||||||||||||||
| Other expense | 6,970 | 5,795 | 6,440 | 6,105 | 5,746 | 25,310 | 22,738 | ||||||||||||||||
| Total noninterest expense | 47,326 | 46,665 | 47,371 | 45,412 | 43,335 | 186,774 | 167,409 | ||||||||||||||||
| Income before taxes | 29,632 | 25,986 | 16,424 | 25,168 | 21,990 | 97,210 | 114,330 | ||||||||||||||||
| Income tax expense | 5,796 | 5,185 | 3,258 | 4,851 | 4,578 | 19,090 | 22,529 | ||||||||||||||||
| Net income | $ | 23,836 | $ | 20,801 | $ | 13,166 | $ | 20,317 | $ | 17,412 | $ | 78,120 | $ | 91,801 | |||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 0.82 | $ | 0.71 | $ | 0.45 | $ | 0.69 | $ | 0.59 | $ | 2.66 | $ | 3.12 | |||||||||
| Diluted | $ | 0.81 | $ | 0.71 | $ | 0.45 | $ | 0.68 | $ | 0.59 | $ | 2.64 | $ | 3.11 | |||||||||
| Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.83 | $ | 0.80 | |||||||||
| Weighted average shares outstanding | 29,251,293 | 29,290,829 | 29,490,154 | 29,542,467 | 29,471,304 | 29,392,606 | 29,402,845 | ||||||||||||||||
| Period end shares outstanding | 29,271,915 | 29,242,451 | 29,365,775 | 29,636,425 | 29,500,542 | 29,271,915 | 29,500,542 | ||||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||||||||
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||||||
| For the three months ended, | For the twelve months ended, | ||||||||||||||||||||||||||
| Profitability Ratios (annualized) | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | ||||||||||||||||||||
| Return on average assets | 1.35 | % | 1.21 | % | 0.76 | % | 1.17 | % | 0.97 | % | 1.12 | % | 1.38 | % | |||||||||||||
| Return on average assets, excluding restructuring | 1.36 | % | 1.21 | % | 0.76 | % | 1.17 | % | 0.97 | % | 1.13 | % | 1.38 | % | |||||||||||||
| charges (1) | |||||||||||||||||||||||||||
| Return on average shareholders' equity | 12.33 | % | 10.67 | % | 6.85 | % | 10.64 | % | 9.06 | % | 10.13 | % | 12.50 | % | |||||||||||||
| Return on average shareholders' equity, excluding | 12.40 | % | 10.67 | % | 6.85 | % | 10.64 | % | 9.06 | % | 10.14 | % | 12.50 | % | |||||||||||||
| restructuring charges (1) | |||||||||||||||||||||||||||
| Return on average tangible common equity (1)(3) | 16.23 | % | 14.06 | % | 9.10 | % | 14.04 | % | 11.93 | % | 13.36 | % | 16.55 | % | |||||||||||||
| Return on average tangible common equity, excluding | 16.33 | % | 14.06 | % | 9.10 | % | 14.04 | % | 11.93 | % | 13.39 | % | 16.55 | % | |||||||||||||
| restructuring charges (1)(3) | |||||||||||||||||||||||||||
| Net interest margin (FTE) | 3.76 | % | 3.67 | % | 3.19 | % | 2.89 | % | 2.86 | % | 3.38 | % | 3.06 | % | |||||||||||||
| Efficiency ratio (2) | 56.9 | % | 60.6 | % | 66.6 | % | 67.0 | % | 64.3 | % | 62.4 | % | 60.9 | % | |||||||||||||
| Efficiency ratio, excluding restructuring charges (1)(2) | 56.7 | % | 60.6 | % | 66.6 | % | 67.0 | % | 64.3 | % | 62.4 | % | 60.9 | % | |||||||||||||
| Capitalization Ratios | |||||||||||||||||||||||||||
| Dividends declared to net income | 25.8 | % | 29.6 | % | 47.1 | % | 29.1 | % | 33.9 | % | 31.2 | % | 25.6 | % | |||||||||||||
| Shareholders' equity to assets (Period End) | 10.75 | % | 10.92 | % | 11.40 | % | 10.89 | % | 10.86 | % | 10.75 | % | 10.86 | % | |||||||||||||
| Tangible common equity to tangible assets (1) | 8.49 | % | 8.55 | % | 8.97 | % | 8.58 | % | 8.56 | % | 8.49 | % | 8.56 | % | |||||||||||||
| Common equity book value per share | $ | 26.53 | $ | 25.79 | $ | 26.01 | $ | 26.11 | $ | 26.23 | $ | 26.53 | $ | 26.23 | |||||||||||||
| Tangible common equity book value per share (1) | $ | 20.42 | $ | 19.67 | $ | 19.91 | $ | 20.06 | $ | 20.14 | $ | 20.42 | $ | 20.14 | |||||||||||||
| Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||
| Tier 1 leverage ratio | 9.81 | % | 9.87 | % | 9.45 | % | 9.35 | % | 9.13 | % | 9.81 | % | 9.13 | % | |||||||||||||
| Common equity tier 1 risk-based capital ratio | 10.37 | % | 10.51 | % | 10.62 | % | 11.07 | % | 11.08 | % | 10.37 | % | 11.08 | % | |||||||||||||
| Tier 1 risk-based capital ratio | 10.37 | % | 10.51 | % | 10.62 | % | 11.07 | % | 11.08 | % | 10.37 | % | 11.08 | % | |||||||||||||
| Total risk-based capital ratio | 13.67 | % | 13.10 | % | 13.23 | % | 13.73 | % | 13.77 | % | 13.67 | % | 13.77 | % | |||||||||||||
| (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below. | |||||||||||||||||||||||||||
| (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income. | |||||||||||||||||||||||||||
| (3) Net income before amortization of intangibles to average tangible common equity. | |||||||||||||||||||||||||||
| Univest Financial Corporation | ||||||||||||||
| Average Balances and Interest Rates (Unaudited) | ||||||||||||||
| For the Three Months Ended, | ||||||||||||||
| Tax Equivalent Basis | December 31, 2022 | September 30, 2022 | ||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
| Assets: | ||||||||||||||
| Interest-earning deposits with other banks | $ | 57,059 | $ | 487 | 3.39 | % | $ | 49,476 | $ | 252 | 2.02 | % | ||
| U.S. government obligations | - | - | - | 565 | 3 | 2.11 | ||||||||
| Obligations of state and political subdivisions* | 2,266 | 17 | 2.98 | 2,308 | 18 | 3.09 | ||||||||
| Other debt and equity securities | 503,451 | 3,316 | 2.61 | 514,462 | 3,010 | 2.32 | ||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 29,401 | 493 | 6.65 | 28,368 | 435 | 6.08 | ||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 592,177 | 4,313 | 2.89 | 595,179 | 3,718 | 2.48 | ||||||||
| Commercial, financial, and agricultural loans | 1,004,940 | 14,460 | 5.71 | 977,549 | 11,996 | 4.87 | ||||||||
| Paycheck Protection Program loans | 2,181 | 11 | 2.00 | 3,754 | 40 | 4.23 | ||||||||
| Real estate-commercial and construction loans | 3,223,822 | 39,459 | 4.86 | 3,105,821 | 34,100 | 4.36 | ||||||||
| Real estate-residential loans | 1,335,220 | 14,340 | 4.26 | 1,256,509 | 12,492 | 3.94 | ||||||||
| Loans to individuals | 26,772 | 401 | 5.94 | 27,197 | 381 | 5.56 | ||||||||
| Municipal loans and leases * | 233,684 | 2,433 | 4.13 | 235,433 | 2,432 | 4.10 | ||||||||
| Lease financings | 152,962 | 2,416 | 6.27 | 145,856 | 2,195 | 5.97 | ||||||||
| Gross loans and leases | 5,979,581 | 73,520 | 4.88 | 5,752,119 | 63,636 | 4.39 | ||||||||
| Total interest-earning assets | 6,571,758 | 77,833 | 4.70 | 6,347,298 | 67,354 | 4.21 | ||||||||
| Cash and due from banks | 56,428 | 62,930 | ||||||||||||
| Allowance for credit losses, loans and leases | (75,390 | ) | (72,355 | ) | ||||||||||
| Premises and equipment, net | 50,803 | 50,476 | ||||||||||||
| Operating lease right-of-use assets | 30,413 | 30,740 | ||||||||||||
| Other assets | 385,369 | 378,377 | ||||||||||||
| Total assets | $ | 7,019,381 | $ | 6,797,466 | ||||||||||
| Liabilities: | ||||||||||||||
| Interest-bearing checking deposits | $ | 924,012 | $ | 2,746 | 1.18 | % | $ | 881,395 | $ | 1,251 | 0.56 | % | ||
| Money market savings | 1,365,502 | 7,670 | 2.23 | 1,246,795 | 3,709 | 1.18 | ||||||||
| Regular savings | 1,045,261 | 492 | 0.19 | 1,086,191 | 302 | 0.11 | ||||||||
| Time deposits | 433,010 | 1,586 | 1.45 | 416,539 | 1,189 | 1.13 | ||||||||
| Total time and interest-bearing deposits | 3,767,785 | 12,494 | 1.32 | 3,630,920 | 6,451 | 0.70 | ||||||||
| Short-term borrowings | 101,126 | 852 | 3.34 | 104,453 | 524 | 1.99 | ||||||||
| Long-term debt | 95,000 | 324 | 1.35 | 95,000 | 324 | 1.35 | ||||||||
| Subordinated notes | 124,250 | 1,815 | 5.80 | 99,065 | 1,328 | 5.32 | ||||||||
| Total borrowings | 320,376 | 2,991 | 3.70 | 298,518 | 2,176 | 2.89 | ||||||||
| Total interest-bearing liabilities | 4,088,161 | 15,485 | 1.50 | 3,929,438 | 8,627 | 0.87 | ||||||||
| Noninterest-bearing deposits | 2,070,038 | 2,014,371 | ||||||||||||
| Operating lease liabilities | 33,492 | 33,786 | ||||||||||||
| Accrued expenses and other liabilities | 60,498 | 46,772 | ||||||||||||
| Total liabilities | 6,252,189 | 6,024,367 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
| Common stock | 157,784 | 157,784 | ||||||||||||
| Additional paid-in capital | 300,121 | 299,135 | ||||||||||||
| Retained earnings and other equity | 309,287 | 316,180 | ||||||||||||
| Total shareholders' equity | 767,192 | 773,099 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 7,019,381 | $ | 6,797,466 | ||||||||||
| Net interest income | - | $ | 62,348 | $ | - | $ | 58,727 | |||||||
| Net interest spread | 3.20 | 3.34 | ||||||||||||
| Effect of net interest-free funding sources | 0.56 | 0.33 | ||||||||||||
| Net interest margin | 3.76 | % | 3.67 | % | ||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 160.75 | % | 161.53 | % | ||||||||||
| * Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | ||||||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments. | ||||||||||||||
| Net interest income includes net deferred costs of $(516) thousand and $(498) thousand for the three months ended December 31, 2022 and September 30, 2022, respectively. | ||||||||||||||
| Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended December 31, 2022 and September 30, 2022 have been calculated using the Corporation's federal applicable rate of 21.0%. | ||||||||||||||
| Univest Financial Corporation | ||||||||||||||
| Average Balances and Interest Rates (Unaudited) | ||||||||||||||
| For the Three Months Ended December 31, | ||||||||||||||
| Tax Equivalent Basis | 2022 | 2021 | ||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
| Assets: | ||||||||||||||
| Interest-earning deposits with other banks | $ | 57,059 | $ | 487 | 3.39 | % | $ | 914,287 | $ | 370 | 0.16 | % | ||
| U.S. government obligations | - | - | - | 6,999 | 37 | 2.10 | ||||||||
| Obligations of state and political subdivisions* | 2,266 | 17 | 2.98 | 2,334 | 19 | 3.23 | ||||||||
| Other debt and equity securities | 503,451 | 3,316 | 2.61 | 460,255 | 1,845 | 1.59 | ||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 29,401 | 493 | 6.65 | 28,402 | 375 | 5.24 | ||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 592,177 | 4,313 | 2.89 | 1,412,277 | 2,646 | 0.74 | ||||||||
| Commercial, financial, and agricultural loans | 1,004,940 | 14,460 | 5.71 | 869,471 | 7,022 | 3.20 | ||||||||
| Paycheck Protection Program loans | 2,181 | 11 | 2.00 | 53,745 | 1,568 | 11.57 | ||||||||
| Real estate-commercial and construction loans | 3,223,822 | 39,459 | 4.86 | 2,826,720 | 26,669 | 3.74 | ||||||||
| Real estate-residential loans | 1,335,220 | 14,340 | 4.26 | 1,107,911 | 10,165 | 3.64 | ||||||||
| Loans to individuals | 26,772 | 401 | 5.94 | 26,462 | 249 | 3.73 | ||||||||
| Municipal loans and leases* | 233,684 | 2,433 | 4.13 | 245,038 | 2,515 | 4.07 | ||||||||
| Lease financings | 152,962 | 2,416 | 6.27 | 125,932 | 1,951 | 6.15 | ||||||||
| Gross loans and leases | 5,979,581 | 73,520 | 4.88 | 5,255,279 | 50,139 | 3.79 | ||||||||
| Total interest-earning assets | 6,571,758 | 77,833 | 4.70 | 6,667,556 | 52,785 | 3.14 | ||||||||
| Cash and due from banks | 56,428 | 54,958 | ||||||||||||
| Allowance for credit losses, loans and leases | (75,390 | ) | (71,020 | ) | ||||||||||
| Premises and equipment, net | 50,803 | 56,087 | ||||||||||||
| Operating lease right-of-use assets | 30,413 | 31,048 | ||||||||||||
| Other assets | 385,369 | 349,660 | ||||||||||||
| Total assets | $ | 7,019,381 | $ | 7,088,289 | ||||||||||
| Liabilities: | ||||||||||||||
| Interest-bearing checking deposits | $ | 924,012 | $ | 2,746 | 1.18 | % | $ | 939,478 | $ | 493 | 0.21 | % | ||
| Money market savings | 1,365,502 | 7,670 | 2.23 | 1,616,890 | 968 | 0.24 | ||||||||
| Regular savings | 1,045,261 | 492 | 0.19 | 997,814 | 253 | 0.10 | ||||||||
| Time deposits | 433,010 | 1,586 | 1.45 | 487,434 | 1,370 | 1.12 | ||||||||
| Total time and interest-bearing deposits | 3,767,785 | 12,494 | 1.32 | 4,041,616 | 3,084 | 0.30 | ||||||||
| Short-term borrowings | 101,126 | 852 | 3.34 | 14,144 | 1 | 0.03 | ||||||||
| Long-term debt | 95,000 | 324 | 1.35 | 95,000 | 325 | 1.36 | ||||||||
| Subordinated notes | 124,250 | 1,815 | 5.80 | 98,833 | 1,327 | 5.33 | ||||||||
| Total borrowings | 320,376 | 2,991 | 3.70 | 207,977 | 1,653 | 3.15 | ||||||||
| Total interest-bearing liabilities | 4,088,161 | 15,485 | 1.50 | 4,249,593 | 4,737 | 0.44 | ||||||||
| Noninterest-bearing deposits | 2,070,038 | 2,000,182 | ||||||||||||
| Operating lease liabilities | 33,492 | 34,114 | ||||||||||||
| Accrued expenses and other liabilities | 60,498 | 42,066 | ||||||||||||
| Total liabilities | 6,252,189 | 6,325,955 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
| Common stock | 157,784 | 157,784 | ||||||||||||
| Additional paid-in capital | 300,121 | 298,508 | ||||||||||||
| Retained earnings and other equity | 309,287 | 306,042 | ||||||||||||
| Total shareholders' equity | 767,192 | 762,334 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 7,019,381 | $ | 7,088,289 | ||||||||||
| Net interest income | - | $ | 62,348 | $ | 48,048 | |||||||||
| Net interest spread | 3.20 | 2.70 | ||||||||||||
| Effect of net interest-free funding sources | 0.56 | 0.16 | ||||||||||||
| Net interest margin | 3.76 | % | 2.86 | % | ||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 160.75 | % | 156.90 | % | ||||||||||
| * Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | ||||||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments. | ||||||||||||||
| Net interest income includes net deferred (costs) fees of $(516) thousand and $707 thousand for the three months ended December 31, 2022 and 2021, respectively. | ||||||||||||||
| Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended December 31, 2022 and 2021 have been calculated using the Corporation's federal applicable rate of 21.0%. | ||||||||||||||
| Univest Financial Corporation | ||||||||||||||
| Average Balances and Interest Rates (Unaudited) | ||||||||||||||
| For the Twelve Months Ended December 31, | ||||||||||||||
| Tax Equivalent Basis | 2022 | 2021 | ||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
| Assets: | ||||||||||||||
| Interest-earning deposits with other banks | $ | 325,875 | $ | 1,920 | 0.59 | % | $ | 476,351 | $ | 661 | 0.14 | % | ||
| U.S. government obligations | 1,929 | 40 | 2.07 | 6,999 | 144 | 2.06 | ||||||||
| Obligations of state and political subdivisions* | 2,302 | 71 | 3.08 | 5,702 | 206 | 3.61 | ||||||||
| Other debt and equity securities | 510,961 | 11,392 | 2.23 | 393,762 | 5,992 | 1.52 | ||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 27,784 | 1,627 | 5.86 | 26,844 | 1,417 | 5.28 | ||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 868,851 | 15,050 | 1.73 | 909,658 | 8,420 | 0.93 | ||||||||
| Commercial, financial, and agricultural loans | 955,816 | 43,064 | 4.51 | 840,133 | 28,142 | 3.35 | ||||||||
| Paycheck Protection Program loans | 7,939 | 797 | 10.04 | 281,484 | 15,032 | 5.34 | ||||||||
| Real estate-commercial and construction loans | 3,060,689 | 127,906 | 4.18 | 2,734,259 | 101,692 | 3.72 | ||||||||
| Real estate-residential loans | 1,219,275 | 47,472 | 3.89 | 1,077,952 | 40,045 | 3.71 | ||||||||
| Loans to individuals | 26,642 | 1,325 | 4.97 | 26,062 | 1,018 | 3.91 | ||||||||
| Municipal loans and leases* | 236,858 | 9,703 | 4.10 | 247,396 | 10,147 | 4.10 | ||||||||
| Lease financings | 144,046 | 8,791 | 6.10 | 115,189 | 7,363 | 6.39 | ||||||||
| Gross loans and leases | 5,651,265 | 239,058 | 4.23 | 5,322,475 | 203,439 | 3.82 | ||||||||
| Total interest-earning assets | 6,520,116 | 254,108 | 3.90 | 6,232,133 | 211,859 | 3.40 | ||||||||
| Cash and due from banks | 57,196 | 55,724 | ||||||||||||
| Allowance for credit losses, loans and leases | (72,069 | ) | (74,943 | ) | ||||||||||
| Premises and equipment, net | 51,362 | 55,875 | ||||||||||||
| Operating lease right-of-use assets | 30,443 | 32,758 | ||||||||||||
| Other assets | 369,244 | 353,896 | ||||||||||||
| Total assets | $ | 6,956,292 | $ | 6,655,443 | ||||||||||
| Liabilities: | ||||||||||||||
| Interest-bearing checking deposits | $ | 884,656 | $ | 5,010 | 0.57 | % | $ | 850,713 | $ | 2,007 | 0.24 | % | ||
| Money market savings | 1,389,226 | 13,835 | 1.00 | 1,366,762 | 3,574 | 0.26 | ||||||||
| Regular savings | 1,056,019 | 1,269 | 0.12 | 983,752 | 1,114 | 0.11 | ||||||||
| Time deposits | 443,845 | 5,308 | 1.20 | 498,638 | 6,178 | 1.24 | ||||||||
| Total time and interest-bearing deposits | 3,773,746 | 25,422 | 0.67 | 3,699,865 | 12,873 | 0.35 | ||||||||
| Short-term borrowings | 60,468 | 1,389 | 2.30 | 16,552 | 8 | 0.05 | ||||||||
| Long-term debt | 95,000 | 1,287 | 1.35 | 96,562 | 1,318 | 1.36 | ||||||||
| Subordinated notes | 105,356 | 5,798 | 5.50 | 137,896 | 7,149 | 5.18 | ||||||||
| Total borrowings | 260,824 | 8,474 | 3.25 | 251,010 | 8,475 | 3.38 | ||||||||
| Total interest-bearing liabilities | 4,034,570 | 33,896 | 0.84 | 3,950,875 | 21,348 | 0.54 | ||||||||
| Noninterest-bearing deposits | 2,068,086 | 1,891,330 | ||||||||||||
| Operating lease liabilities | 33,508 | 36,001 | ||||||||||||
| Accrued expenses and other liabilities | 48,629 | 42,781 | ||||||||||||
| Total liabilities | 6,184,793 | 5,920,987 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
| Common stock | 157,784 | 157,784 | ||||||||||||
| Additional paid-in capital | 299,121 | 297,189 | ||||||||||||
| Retained earnings and other equity | 314,594 | 279,483 | ||||||||||||
| Total shareholders' equity | 771,499 | 734,456 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 6,956,292 | $ | 6,655,443 | ||||||||||
| Net interest income | - | $ | 220,212 | $ | 190,511 | |||||||||
| Net interest spread | 3.06 | 2.86 | ||||||||||||
| Effect of net interest-free funding sources | 0.32 | 0.20 | ||||||||||||
| Net interest margin | 3.38 | % | 3.06 | % | ||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 161.61 | % | 157.74 | % | ||||||||||
| * Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | ||||||||||||||
| Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments. | ||||||||||||||
| Net interest income includes net deferred (costs) fees of $(1.8) million and $8.7 million for the twelve months ended December 31, 2022 and 2021, respectively. | ||||||||||||||
| Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the twelve months ended December 31, 2022 and 2021 have been calculated using the Corporation's federal applicable rate of 21.0%. | ||||||||||||||
| Univest Financial Corporation | |||||
| Loan Portfolio Overview (Unaudited) | |||||
| December 31, 2022 | |||||
| (Dollars in thousands) | |||||
| Industry Description | Total Outstanding Balance (excl PPP) | % of Commercial Loan Portfolio | |||
| CRE - Retail | $ | 440,112 | 8.8 | % | |
| Animal Production | 340,877 | 6.9 | |||
| CRE - Office | 292,740 | 5.9 | |||
| CRE - Multi-family | 277,157 | 5.6 | |||
| CRE - 1-4 Family Residential Investment | 266,423 | 5.3 | |||
| Hotels & Motels (Accommodation) | 191,735 | 3.9 | |||
| CRE - Industrial / Warehouse | 174,357 | 3.5 | |||
| Nursing and Residential Care Facilities | 169,443 | 3.4 | |||
| Education | 163,310 | 3.3 | |||
| Specialty Trade Contractors | 153,422 | 3.1 | |||
| Homebuilding (tract developers, remodelers) | 149,935 | 3.0 | |||
| Merchant Wholesalers, Durable Goods | 136,707 | 2.7 | |||
| Motor Vehicle and Parts Dealers | 122,291 | 2.5 | |||
| Credit Intermediation and Other Related Activities | 114,124 | 2.3 | |||
| CRE - Mixed-Use - Residential | 109,812 | 2.2 | |||
| Crop Production | 91,597 | 1.8 | |||
| Administrative and Support Services | 79,600 | 1.6 | |||
| CRE - Mixed-Use - Commercial | 77,790 | 1.6 | |||
| Religious Organizations, Advocacy Groups | 74,980 | 1.5 | |||
| Wood Product Manufacturing | 74,913 | 1.5 | |||
| Rental and Leasing Services | 74,158 | 1.5 | |||
| Food Manufacturing | 73,755 | 1.5 | |||
| Food Services and Drinking Places | 68,056 | 1.4 | |||
| Merchant Wholesalers, Nondurable Goods | 63,539 | 1.3 | |||
| Personal and Laundry Services | 59,796 | 1.2 | |||
| Repair and Maintenance | 56,870 | 1.1 | |||
| Fabricated Metal Product Manufacturing | 55,546 | 1.1 | |||
| Miniwarehouse / Self-Storage | 55,543 | 1.1 | |||
| Amusement, Gambling, and Recreation Industries | 55,248 | 1.1 | |||
| Private Equity & Special Purpose Entities | 53,818 | 1.1 | |||
| Truck Transportation | 50,182 | 1.0 | |||
| Industries with >$50 million in outstandings | $ | 4,167,836 | 83.8 | % | |
| Industries with <$50 million in outstandings | $ | 806,965 | 16.2 | % | |
| Total Commercial Loans | $ | 4,974,801 | 100.0 | % | |
| Consumer Loans and Lease Financings | Total Outstanding Balance | ||||
| Real Estate-Residential Secured for Personal Purpose | $ | 730,395 | |||
| Real Estate-Home Equity Secured for Personal Purpose | 176,699 | ||||
| Loans to Individuals | 27,873 | ||||
| Lease Financings | 211,315 | ||||
| Total - Consumer Loans and Lease Financings | $ | 1,146,282 | |||
| Total | $ | 6,121,083 | |||
| Univest Financial Corporation | ||||||||||||||||||||||||||||||
| Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||
| December 31, 2022 | ||||||||||||||||||||||||||||||
| Non-GAAP to GAAP Reconciliation | ||||||||||||||||||||||||||||||
| Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release. | ||||||||||||||||||||||||||||||
| As of or for the three months ended, | As of or for the twelve months ended, | |||||||||||||||||||||||||||||
| (Dollars in thousands) | 12/31/22 | 09/30/22 | 06/30/22 | 03/31/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||||||||||||||||||||||
| Restructuring charges (a) | $ | 184 | $ | - | $ | - | $ | - | $ | - | $ | 184 | $ | - | ||||||||||||||||
| Tax effect of restructuring charges | (39 | ) | - | - | - | - | (39 | ) | - | |||||||||||||||||||||
| Restructuring charges, net of tax | $ | 145 | $ | - | $ | - | $ | - | $ | - | $ | 145 | $ | - | ||||||||||||||||
| Net income | $ | 23,836 | $ | 20,801 | $ | 13,166 | $ | 20,317 | $ | 17,412 | $ | 78,120 | $ | 91,801 | ||||||||||||||||
| Amortization of intangibles, net of tax | 238 | 244 | 270 | 269 | 211 | 1,021 | 773 | |||||||||||||||||||||||
| Net income before amortization of intangibles | $ | 24,074 | $ | 21,045 | $ | 13,436 | $ | 20,586 | $ | 17,623 | $ | 79,141 | $ | 92,574 | ||||||||||||||||
| Shareholders' equity | $ | 776,500 | $ | 754,187 | $ | 763,925 | $ | 773,855 | $ | 773,794 | $ | 776,500 | $ | 773,794 | ||||||||||||||||
| Goodwill | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | ||||||||||||||||
| Other intangibles (b) | (3,251 | ) | (3,485 | ) | (3,678 | ) | (3,936 | ) | (4,210 | ) | (3,251 | ) | (4,210 | ) | ||||||||||||||||
| Tangible common equity | $ | 597,739 | $ | 575,192 | $ | 584,737 | $ | 594,409 | $ | 594,074 | $ | 597,739 | $ | 594,074 | ||||||||||||||||
| Total assets | $ | 7,222,016 | $ | 6,907,397 | $ | 6,700,813 | $ | 7,107,740 | $ | 7,122,421 | $ | 7,222,016 | $ | 7,122,421 | ||||||||||||||||
| Goodwill | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | ||||||||||||||||
| Other intangibles (b) | (3,251 | ) | (3,485 | ) | (3,678 | ) | (3,936 | ) | (4,210 | ) | (3,251 | ) | (4,210 | ) | ||||||||||||||||
| Tangible assets | $ | 7,043,255 | $ | 6,728,402 | $ | 6,521,625 | $ | 6,928,294 | $ | 6,942,701 | $ | 7,043,255 | $ | 6,942,701 | ||||||||||||||||
| Average shareholders' equity | $ | 767,192 | $ | 773,099 | $ | 771,410 | $ | 774,358 | $ | 762,334 | $ | 771,499 | $ | 734,456 | ||||||||||||||||
| Average goodwill | (175,510 | ) | (175,510 | ) | (175,510 | ) | (175,510 | ) | (173,553 | ) | (175,510 | ) | (172,810 | ) | ||||||||||||||||
| Average other intangibles (b) | (3,355 | ) | (3,550 | ) | (3,791 | ) | (4,090 | ) | (2,696 | ) | (3,694 | ) | (2,338 | ) | ||||||||||||||||
| Average tangible common equity | $ | 588,327 | $ | 594,039 | $ | 592,109 | $ | 594,758 | $ | 586,085 | $ | 592,295 | $ | 559,308 | ||||||||||||||||
| Loans and leases held for investment, gross | $ | 6,123,230 | $ | 5,849,259 | $ | 5,661,777 | $ | 5,400,786 | $ | 5,310,017 | $ | 6,123,230 | $ | 5,310,017 | ||||||||||||||||
| Paycheck Protection Program ("PPP") loans | (2,147 | ) | (2,207 | ) | (5,358 | ) | (10,298 | ) | (31,748 | ) | (2,147 | ) | (31,748 | ) | ||||||||||||||||
| Gross loans and leases excluding PPP loans | $ | 6,121,083 | $ | 5,847,052 | $ | 5,656,419 | $ | 5,390,488 | $ | 5,278,269 | $ | 6,121,083 | $ | 5,278,269 | ||||||||||||||||
| (a) Associated with the consolidation of 2 financial centers | ||||||||||||||||||||||||||||||
| (b) Amount does not include mortgage servicing rights | ||||||||||||||||||||||||||||||
