• Univest Financial Corporation Reports Fourth Quarter and 2022 Results

    ソース: Nasdaq GlobeNewswire / 25 1 2023 15:15:01   America/Chicago

    (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 BasisDecember 31, 2022 September 30, 2022 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$57,059 $4873.39%$49,476 $2522.02%
    U.S. government obligations -  --  565  32.11 
    Obligations of state and political subdivisions* 2,266  172.98  2,308  183.09 
    Other debt and equity securities 503,451  3,3162.61  514,462  3,0102.32 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 29,401  4936.65  28,368  4356.08 
    Total interest-earning deposits, investments and other interest-earning assets 592,177  4,3132.89  595,179  3,7182.48 
             
    Commercial, financial, and agricultural loans 1,004,940  14,4605.71  977,549  11,9964.87 
    Paycheck Protection Program loans 2,181  112.00  3,754  404.23 
    Real estate—commercial and construction loans 3,223,822  39,4594.86  3,105,821  34,1004.36 
    Real estate—residential loans 1,335,220  14,3404.26  1,256,509  12,4923.94 
    Loans to individuals 26,772  4015.94  27,197  3815.56 
    Municipal loans and leases * 233,684  2,4334.13  235,433  2,4324.10 
    Lease financings 152,962  2,4166.27  145,856  2,1955.97 
         Gross loans and leases 5,979,581  73,5204.88  5,752,119  63,6364.39 
    Total interest-earning assets 6,571,758  77,8334.70  6,347,298  67,3544.21 
    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 $2,7461.18%$881,395 $1,2510.56%
    Money market savings 1,365,502  7,6702.23  1,246,795  3,7091.18 
    Regular savings 1,045,261  4920.19  1,086,191  3020.11 
    Time deposits 433,010  1,5861.45  416,539  1,1891.13 
         Total time and interest-bearing deposits 3,767,785  12,4941.32  3,630,920  6,4510.70 
             
    Short-term borrowings 101,126  8523.34  104,453  5241.99 
    Long-term debt 95,000  3241.35  95,000  3241.35 
    Subordinated notes 124,250  1,8155.80  99,065  1,3285.32 
         Total borrowings 320,376  2,9913.70  298,518  2,1762.89 
         Total interest-bearing liabilities 4,088,161  15,4851.50  3,929,438  8,6270.87 
    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  
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$57,059 $4873.39%$914,287 $3700.16%
    U.S. government obligations -  --  6,999  372.10 
    Obligations of state and political subdivisions* 2,266  172.98  2,334  193.23 
    Other debt and equity securities 503,451  3,3162.61  460,255  1,8451.59 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 29,401  4936.65  28,402  3755.24 
    Total interest-earning deposits, investments and other interest-earning assets 592,177  4,3132.89  1,412,277  2,6460.74 
             
    Commercial, financial, and agricultural loans 1,004,940  14,4605.71  869,471  7,0223.20 
    Paycheck Protection Program loans 2,181  112.00  53,745  1,56811.57 
    Real estate—commercial and construction loans 3,223,822  39,4594.86  2,826,720  26,6693.74 
    Real estate—residential loans 1,335,220  14,3404.26  1,107,911  10,1653.64 
    Loans to individuals 26,772  4015.94  26,462  2493.73 
    Municipal loans and leases* 233,684  2,4334.13  245,038  2,5154.07 
    Lease financings 152,962  2,4166.27  125,932  1,9516.15 
         Gross loans and leases 5,979,581  73,5204.88  5,255,279  50,1393.79 
    Total interest-earning assets 6,571,758  77,8334.70  6,667,556  52,7853.14 
    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 $2,7461.18%$939,478 $4930.21%
    Money market savings 1,365,502  7,6702.23  1,616,890  9680.24 
    Regular savings 1,045,261  4920.19  997,814  2530.10 
    Time deposits 433,010  1,5861.45  487,434  1,3701.12 
         Total time and interest-bearing deposits 3,767,785  12,4941.32  4,041,616  3,0840.30 
             
    Short-term borrowings 101,126  8523.34  14,144  10.03 
    Long-term debt 95,000  3241.35  95,000  3251.36 
    Subordinated notes 124,250  1,8155.80  98,833  1,3275.33 
         Total borrowings 320,376  2,9913.70  207,977  1,6533.15 
         Total interest-bearing liabilities 4,088,161  15,4851.50  4,249,593  4,7370.44 
    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 Basis20222021
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$325,875 $1,9200.59%$476,351 $6610.14%
    U.S. government obligations 1,929  402.07  6,999  1442.06 
    Obligations of state and political subdivisions* 2,302  713.08  5,702  2063.61 
    Other debt and equity securities 510,961  11,3922.23  393,762  5,9921.52 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 27,784  1,6275.86  26,844  1,4175.28 
    Total interest-earning deposits, investments and other interest-earning assets 868,851  15,0501.73  909,658  8,4200.93 
             
    Commercial, financial, and agricultural loans 955,816  43,0644.51  840,133  28,1423.35 
    Paycheck Protection Program loans 7,939  79710.04  281,484  15,0325.34 
    Real estate—commercial and construction loans 3,060,689  127,9064.18  2,734,259  101,6923.72 
    Real estate—residential loans 1,219,275  47,4723.89  1,077,952  40,0453.71 
    Loans to individuals 26,642  1,3254.97  26,062  1,0183.91 
    Municipal loans and leases* 236,858  9,7034.10  247,396  10,1474.10 
    Lease financings 144,046  8,7916.10  115,189  7,3636.39 
         Gross loans and leases 5,651,265  239,0584.23  5,322,475  203,4393.82 
    Total interest-earning assets 6,520,116  254,1083.90  6,232,133  211,8593.40 
    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 $5,0100.57%$850,713 $2,0070.24%
    Money market savings 1,389,226  13,8351.00  1,366,762  3,5740.26 
    Regular savings 1,056,019  1,2690.12  983,752  1,1140.11 
    Time deposits 443,845  5,3081.20  498,638  6,1781.24 
         Total time and interest-bearing deposits 3,773,746  25,4220.67  3,699,865  12,8730.35 
             
    Short-term borrowings 60,468  1,3892.30  16,552  80.05 
    Long-term debt 95,000  1,2871.35  96,562  1,3181.36 
    Subordinated notes 105,356  5,7985.50  137,896  7,1495.18 
         Total borrowings 260,824  8,4743.25  251,010  8,4753.38 
         Total interest-bearing liabilities 4,034,570  33,8960.84  3,950,875  21,3480.54 
    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 DescriptionTotal 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 FinancingsTotal 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             
                     

     

     


    CONTACT:         
Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net 

    Primary Logo

シェアする