There were 1,493 press releases posted in the last 24 hours and 343,258 in the last 365 days.

Univest Financial Corporation Reports Fourth Quarter and 2022 Results

/EIN News/ -- (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             
                                 

 

 


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

Primary Logo