04/25/2024 | Press release | Distributed by Public on 04/25/2024 06:46
Univest Financial Corporation | ||||||||||
Consolidated Selected Financial Data (Unaudited) | ||||||||||
March 31, 2024 | ||||||||||
(Dollars in thousands) | ||||||||||
Balance Sheet (Period End) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
ASSETS | ||||||||||
Cash and due from banks | $ | 49,318 | $ | 72,815 | $ | 68,900 | $ | 80,795 | $ | 71,215 |
Interest-earning deposits with other banks | 152,288 | 176,984 | 221,441 | 59,616 | 67,109 | |||||
Cash and cash equivalents | 201,606 | 249,799 | 290,341 | 140,411 | 138,324 | |||||
Investment securities held-to-maturity | 143,474 | 145,777 | 149,451 | 153,509 | 151,347 | |||||
Investment securities available for sale, net of allowance for credit losses | 350,819 | 351,553 | 334,538 | 356,164 | 367,656 | |||||
Investments in equity securities | 3,355 | 3,293 | 4,054 | 3,443 | 3,105 | |||||
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost | 37,394 | 40,499 | 42,417 | 42,811 | 43,792 | |||||
Loans held for sale | 13,188 | 11,637 | 16,473 | 29,526 | 5,425 | |||||
Loans and leases held for investment | 6,579,086 | 6,567,214 | 6,574,958 | 6,462,238 | 6,239,804 | |||||
Less: Allowance for credit losses, loans and leases | (85,632) | (85,387) | (83,837) | (82,709) | (80,034) | |||||
Net loans and leases held for investment | 6,493,454 | 6,481,827 | 6,491,121 | 6,379,529 | 6,159,770 | |||||
Premises and equipment, net | 48,739 | 51,441 | 51,287 | 52,058 | 52,334 | |||||
Operating lease right-of-use assets | 30,702 | 31,795 | 31,053 | 30,237 | 31,663 | |||||
Goodwill | 175,510 | 175,510 | 175,510 | 175,510 | 175,510 | |||||
Other intangibles, net of accumulated amortization | 7,473 | 10,950 | 11,079 | 10,923 | 11,044 | |||||
Bank owned life insurance | 137,896 | 131,344 | 130,522 | 129,715 | 128,926 | |||||
Accrued interest and other assets | 102,958 | 95,203 | 100,220 | 96,314 | 90,095 | |||||
Total assets | $ | 7,746,568 | $ | 7,780,628 | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 |
LIABILITIES | ||||||||||
Noninterest-bearing deposits | $ | 1,401,806 | $ | 1,468,320 | $ | 1,432,559 | $ | 1,582,767 | $ | 1,799,225 |
Interest-bearing deposits: | 5,003,552 | 4,907,461 | 5,006,606 | 4,404,635 | 4,035,432 | |||||
Total deposits | 6,405,358 | 6,375,781 | 6,439,165 | 5,987,402 | 5,834,657 | |||||
Short-term borrowings | 4,816 | 6,306 | 14,676 | 244,666 | 271,881 | |||||
Long-term debt | 250,000 | 310,000 | 320,000 | 320,000 | 220,000 | |||||
Subordinated notes | 148,886 | 148,761 | 148,636 | 148,510 | 148,385 | |||||
Operating lease liabilities | 33,744 | 34,851 | 34,017 | 33,428 | 34,846 | |||||
Accrued expenses and other liabilities | 60,095 | 65,721 | 64,374 | 60,922 | 50,726 | |||||
Total liabilities | 6,902,899 | 6,941,420 | 7,020,868 | 6,794,928 | 6,560,495 | |||||
SHAREHOLDERS' EQUITY | ||||||||||
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued | 157,784 | 157,784 | 157,784 | 157,784 | 157,784 | |||||
Additional paid-in capital | 298,914 | 301,066 | 300,171 | 299,212 | 298,167 | |||||
Retained earnings | 488,790 | 474,691 | 464,634 | 453,806 | 443,493 | |||||
Accumulated other comprehensive loss, net of tax benefit | (54,740) | (50,646) | (71,586) | (61,034) | (55,550) | |||||
Treasury stock, at cost | (47,079) | (43,687) | (43,805) | (44,546) | (45,398) | |||||
Total shareholders' equity | 843,669 | 839,208 | 807,198 | 805,222 | 798,496 | |||||
Total liabilities and shareholders' equity | $ | 7,746,568 | $ | 7,780,628 | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 |
For the three months ended, | ||||||||||
Balance Sheet (Average) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Assets | $ | 7,696,575 | $ | 7,865,634 | $ | 7,693,983 | $ | 7,440,798 | $ | 7,219,211 |
Investment securities, net of allowance for credit losses | 500,983 | 489,587 | 506,341 | 518,995 | 515,880 | |||||
Loans and leases, gross | 6,577,365 | 6,594,233 | 6,537,169 | 6,372,342 | 6,164,890 | |||||
Deposits | 6,303,854 | 6,470,141 | 6,222,710 | 5,844,582 | 5,834,415 | |||||
Shareholders' equity | 842,546 | 814,941 | 811,515 | 806,709 | 789,153 |
Univest Financial Corporation | ||||||||||
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited) | ||||||||||
March 31, 2024 | ||||||||||
(Dollars in thousands) | ||||||||||
Summary of Major Loan and Lease Categories (Period End) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Commercial, financial and agricultural | $ | 1,014,568 | $ | 989,723 | $ | 1,050,004 | $ | 1,039,265 | $ | 1,032,753 |
Real estate-commercial | 3,283,729 | 3,302,798 | 3,275,140 | 3,221,993 | 3,128,210 | |||||
Real estate-construction | 379,995 | 394,462 | 427,561 | 413,404 | 376,569 | |||||
Real estate-residential secured for business purpose | 524,196 | 517,002 | 516,471 | 517,521 | 498,505 | |||||
Real estate-residential secured for personal purpose | 922,412 | 909,015 | 861,122 | 832,632 | 779,557 | |||||
Real estate-home equity secured for personal purpose | 177,446 | 179,282 | 176,855 | 175,090 | 172,073 | |||||
Loans to individuals | 27,200 | 27,749 | 27,331 | 25,544 | 28,656 | |||||
Lease financings | 249,540 | 247,183 | 240,474 | 236,789 | 223,481 | |||||
Total loans and leases held for investment, net of deferred income | 6,579,086 | 6,567,214 | 6,574,958 | 6,462,238 | 6,239,804 | |||||
Less: Allowance for credit losses, loans and leases | (85,632) | (85,387) | (83,837) | (82,709) | (80,034) | |||||
Net loans and leases held for investment | $ | 6,493,454 | $ | 6,481,827 | $ | 6,491,121 | $ | 6,379,529 | $ | 6,159,770 |
Asset Quality Data (Period End) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Nonaccrual loans and leases, including nonaccrual loans held for sale* | $ | 20,363 | $ | 20,527 | $ | 18,085 | $ | 15,087 | $ | 11,362 |
Accruing loans and leases 90 days or more past due | 268 | 534 | 2,135 | 55 | 1,996 | |||||
Total nonperforming loans and leases | 20,631 | 21,061 | 20,220 | 15,142 | 13,358 | |||||
Other real estate owned | 19,220 | 19,032 | 19,916 | 19,345 | 19,000 | |||||
Repossessed assets | 167 | - | - | - | - | |||||
Total nonperforming assets | $ | 40,018 | $ | 40,093 | $ | 40,136 | $ | 34,487 | $ | 32,358 |
Nonaccrual loans and leases / Loans and leases held for investment | 0.31 | % | 0.31 | % | 0.28 | % | 0.23 | % | 0.18 | % |
Nonperforming loans and leases / Loans and leases held for investment | 0.31 | % | 0.32 | % | 0.31 | % | 0.23 | % | 0.21 | % |
Nonperforming assets / Total assets | 0.52 | % | 0.52 | % | 0.51 | % | 0.45 | % | 0.44 | % |
Allowance for credit losses, loans and leases | $ | 85,632 | $ | 85,387 | $ | 83,837 | $ | 82,709 | $ | 80,034 |
Allowance for credit losses, loans and leases / Loans and leases held for investment | 1.30 | % | 1.30 | % | 1.28 | % | 1.28 | % | 1.28 | % |
Allowance for credit losses, loans and leases / Nonaccrual loans and leases | 420.53 | % | 415.97 | % | 463.57 | % | 548.21 | % | 704.40 | % |
Allowance for credit losses, loans and leases / Nonperforming loans and leases | 415.06 | % | 405.43 | % | 414.62 | % | 546.22 | % | 599.15 | % |
*Includes a $5.8 million loan held for sale at September 30, 2023.
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For the three months ended, | ||||||||||
3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||
Net loan and lease charge-offs | $ | 1,406 | $ | 1,074 | $ | 969 | $ | 512 | $ | 2,842 |
Net loan and lease charge-offs (annualized)/Average loans and leases | 0.09 | % | 0.06 | % | 0.06 | % | 0.03 | % | 0.19 | % |
Univest Financial Corporation | ||||||||||
Consolidated Selected Financial Data (Unaudited) | ||||||||||
March 31, 2024 | ||||||||||
(Dollars in thousands, except per share data) | ||||||||||
For the three months ended, | ||||||||||
For the period: | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Interest income | $ | 98,609 | $ | 101,232 | $ | 97,106 | $ | 90,139 | $ | 83,253 |
Interest expense | 47,142 | 48,472 | 43,516 | 35,809 | 23,936 | |||||
Net interest income | 51,467 | 52,760 | 53,590 | 54,330 | 59,317 | |||||
Provision for credit losses | 1,432 | 1,931 | 2,024 | 3,428 | 3,387 | |||||
Net interest income after provision for credit losses | 50,035 | 50,829 | 51,566 | 50,902 | 55,930 | |||||
Noninterest income: | ||||||||||
Trust fee income | 2,108 | 1,943 | 1,910 | 1,924 | 1,955 | |||||
Service charges on deposit accounts | 1,871 | 1,960 | 1,816 | 1,725 | 1,547 | |||||
Investment advisory commission and fee income | 5,194 | 4,561 | 4,843 | 4,708 | 4,752 | |||||
Insurance commission and fee income | 7,201 | 4,596 | 4,852 | 5,108 | 6,487 | |||||
Other service fee income | 6,415 | 2,967 | 3,020 | 3,318 | 3,076 | |||||
Bank owned life insurance income | 842 | 823 | 806 | 789 | 767 | |||||
Net gain on mortgage banking activities | 939 | 809 | 1,216 | 1,039 | 625 | |||||
Other income | 1,025 | 961 | 228 | 1,222 | 471 | |||||
Total noninterest income | 25,595 | 18,620 | 18,691 | 19,833 | 19,680 | |||||
Noninterest expense: | ||||||||||
Salaries, benefits and commissions | 31,338 | 29,321 | 29,978 | 29,875 | 31,014 | |||||
Net occupancy | 2,872 | 2,751 | 2,594 | 2,614 | 2,727 | |||||
Equipment | 1,111 | 1,066 | 1,087 | 986 | 993 | |||||
Data processing | 4,495 | 4,444 | 4,189 | 4,137 | 4,029 | |||||
Professional fees | 1,688 | 1,768 | 1,763 | 1,669 | 1,941 | |||||
Marketing and advertising | 416 | 632 | 555 | 622 | 371 | |||||
Deposit insurance premiums | 1,135 | 1,350 | 1,258 | 1,116 | 1,101 | |||||
Intangible expenses | 187 | 212 | 220 | 253 | 253 | |||||
Restructuring charges | - | 189 | - | 1,330 | - | |||||
Other expense | 6,832 | 7,313 | 7,344 | 7,197 | 7,100 | |||||
Total noninterest expense | 50,074 | 49,046 | 48,988 | 49,799 | 49,529 | |||||
Income before taxes | 25,556 | 20,403 | 21,269 | 20,936 | 26,081 | |||||
Income tax expense | 5,251 | 4,149 | 4,253 | 4,136 | 5,047 | |||||
Net income | $ | 20,305 | $ | 16,254 | $ | 17,016 | $ | 16,800 | $ | 21,034 |
Net income per share: | ||||||||||
Basic | $ | 0.69 | $ | 0.55 | $ | 0.58 | $ | 0.57 | $ | 0.72 |
Diluted | $ | 0.69 | $ | 0.55 | $ | 0.58 | $ | 0.57 | $ | 0.71 |
Dividends declared per share | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 | $ | 0.21 |
Weighted average shares outstanding | 29,413,999 | 29,500,147 | 29,479,066 | 29,439,392 | 29,312,265 | |||||
Period end shares outstanding | 29,337,919 | 29,511,721 | 29,508,128 | 29,471,124 | 29,427,696 |
Univest Financial Corporation | ||||||||||
Consolidated Selected Financial Data (Unaudited) | ||||||||||
March 31, 2024 | ||||||||||
For the three months ended, | ||||||||||
Profitability Ratios (annualized) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Return on average assets | 1.06 | % | 0.82 | % | 0.88 | % | 0.91 | % | 1.18 | % |
Return on average assets, excluding restructuring charges (1) | 1.06 | % | 0.83 | % | 0.88 | % | 0.96 | % | 1.18 | % |
Return on average shareholders' equity | 9.69 | % | 7.91 | % | 8.32 | % | 8.35 | % | 10.81 | % |
Return on average shareholders' equity, excluding restructuring charges (1) | 9.69 | % | 7.99 | % | 8.32 | % | 8.88 | % | 10.81 | % |
Return on average tangible common equity (1)(3) | 12.38 | % | 10.23 | % | 10.77 | % | 10.85 | % | 14.11 | % |
Return on average tangible common equity, excluding restructuring charges (1)(3) | 12.38 | % | 10.32 | % | 10.77 | % | 11.52 | % | 14.11 | % |
Net interest margin (FTE) | 2.88 | % | 2.84 | % | 2.96 | % | 3.14 | % | 3.58 | % |
Efficiency ratio (2) | 64.6 | % | 68.3 | % | 67.3 | % | 66.7 | % | 62.2 | % |
Efficiency ratio, excluding restructuring charges (1)(2) | 64.6 | % | 68.0 | % | 67.3 | % | 64.9 | % | 62.2 | % |
Capitalization Ratios | ||||||||||
Dividends declared to net income | 30.5 | % | 38.1 | % | 36.4 | % | 36.8 | % | 29.2 | % |
Shareholders' equity to assets (Period End) | 10.89 | % | 10.79 | % | 10.31 | % | 10.59 | % | 10.85 | % |
Tangible common equity to tangible assets (1) | 8.80 | % | 8.70 | % | 8.22 | % | 8.45 | % | 8.63 | % |
Common equity book value per share | $ | 28.76 | $ | 28.44 | $ | 27.36 | $ | 27.32 | $ | 27.13 |
Tangible common equity book value per share (1) | $ | 22.70 | $ | 22.41 | $ | 21.32 | $ | 21.27 | $ | 21.07 |
Regulatory Capital Ratios (Period End) | ||||||||||
Tier 1 leverage ratio | 9.65 | % | 9.36 | % | 9.43 | % | 9.59 | % | 9.71 | % |
Common equity tier 1 risk-based capital ratio | 10.71 | % | 10.58 | % | 10.32 | % | 10.26 | % | 10.43 | % |
Tier 1 risk-based capital ratio | 10.71 | % | 10.58 | % | 10.32 | % | 10.26 | % | 10.43 | % |
Total risk-based capital ratio | 14.11 | % | 13.90 | % | 13.58 | % | 13.54 | % | 13.78 | % |
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document. | ||||||||||
(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 | March 31, 2024 | December 31, 2023 | ||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||
Assets: | ||||||||||||
Interest-earning deposits with other banks | $ | 120,845 | $ | 1,609 | 5.36 | % | $ | 280,693 | $ | 3,804 | 5.38 | % |
Obligations of state and political subdivisions* | 1,951 | 12 | 2.47 | 2,277 | 14 | 2.44 | ||||||
Other debt and equity securities | 499,032 | 3,647 | 2.94 | 487,310 | 3,678 | 2.99 | ||||||
Federal Home Loan Bank, Federal Reserve Bank and other stock | 39,115 | 724 | 7.44 | 41,361 | 767 | 7.36 | ||||||
Total interest-earning deposits, investments and other interest-earning assets | 660,943 | 5,992 | 3.65 | 811,641 | 8,263 | 4.04 | ||||||
Commercial, financial, and agricultural loans | 934,649 | 16,523 | 7.11 | 973,450 | 17,485 | 7.13 | ||||||
Real estate-commercial and construction loans | 3,575,142 | 50,641 | 5.70 | 3,590,477 | 50,715 | 5.60 | ||||||
Real estate-residential loans | 1,618,188 | 19,555 | 4.86 | 1,585,705 | 19,133 | 4.79 | ||||||
Loans to individuals | 27,315 | 548 | 8.07 | 27,667 | 558 | 8.00 | ||||||
Municipal loans and leases* | 232,380 | 2,464 | 4.26 | 230,394 | 2,438 | 4.20 | ||||||
Lease financings | 189,691 | 3,169 | 6.72 | 186,540 | 2,897 | 6.16 | ||||||
Gross loans and leases | 6,577,365 | 92,900 | 5.68 | 6,594,233 | 93,226 | 5.61 | ||||||
Total interest-earning assets | 7,238,308 | 98,892 | 5.49 | 7,405,874 | 101,489 | 5.44 | ||||||
Cash and due from banks | 54,870 | 54,981 | ||||||||||
Allowance for credit losses, loans and leases | (86,495) | (84,386) | ||||||||||
Premises and equipment, net | 50,592 | 51,489 | ||||||||||
Operating lease right-of-use assets | 31,121 | 31,251 | ||||||||||
Other assets | 408,179 | 406,425 | ||||||||||
Total assets | $ | 7,696,575 | $ | 7,865,634 | ||||||||
Liabilities: | ||||||||||||
Interest-bearing checking deposits | $ | 1,180,696 | $ | 8,218 | 2.80 | % | $ | 1,193,386 | $ | 8,409 | 2.80 | % |
Money market savings | 1,705,291 | 19,220 | 4.53 | 1,845,153 | 21,133 | 4.54 | ||||||
Regular savings | 769,926 | 905 | 0.47 | 784,937 | 874 | 0.44 | ||||||
Time deposits | 1,238,878 | 13,630 | 4.42 | 1,188,054 | 12,748 | 4.26 | ||||||
Total time and interest-bearing deposits | 4,894,791 | 41,973 | 3.45 | 5,011,530 | 43,164 | 3.42 | ||||||
Short-term borrowings | 10,127 | 5 | 0.20 | 9,814 | 1 | 0.04 | ||||||
Long-term debt | 292,486 | 2,883 | 3.96 | 318,805 | 3,026 | 3.77 | ||||||
Subordinated notes | 148,818 | 2,281 | 6.16 | 148,693 | 2,281 | 6.09 | ||||||
Total borrowings | 451,431 | 5,169 | 4.61 | 477,312 | 5,308 | 4.41 | ||||||
Total interest-bearing liabilities | 5,346,222 | 47,142 | 3.55 | 5,488,842 | 48,472 | 3.50 | ||||||
Noninterest-bearing deposits | 1,409,063 | 1,458,610 | ||||||||||
Operating lease liabilities | 34,166 | 34,255 | ||||||||||
Accrued expenses and other liabilities | 64,578 | 68,986 | ||||||||||
Total liabilities | 6,854,029 | 7,050,693 | ||||||||||
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 6,755,285 | 2.81 | 6,947,452 | 2.77 | ||||||||
Shareholders' Equity: | ||||||||||||
Common stock | 157,784 | 157,784 | ||||||||||
Additional paid-in capital | 300,679 | 300,558 | ||||||||||
Retained earnings and other equity | 384,083 | 356,599 | ||||||||||
Total shareholders' equity | 842,546 | 814,941 | ||||||||||
Total liabilities and shareholders' equity | $ | 7,696,575 | $ | 7,865,634 | ||||||||
Net interest income | $ | 51,750 | $ | 53,017 | ||||||||
Net interest spread | 1.94 | 1.94 | ||||||||||
Effect of net interest-free funding sources | 0.94 | 0.90 | ||||||||||
Net interest margin | 2.88 | % | 2.84 | % | ||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 135.39 | % | 134.93 | % | ||||||||
*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.
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Net interest income includes net deferred costs amortization of $453 thousand and $428 thousand for the three months ended March 31, 2024 and December 31, 2023.
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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 March 31, 2024 and December 31, 2023 have been calculated using the Corporation's federal applicable rate of 21.0%.
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Univest Financial Corporation | ||||||||||||
Average Balances and Interest Rates (Unaudited) | ||||||||||||
For the Three Months Ended March 31, | ||||||||||||
Tax Equivalent Basis | 2024 | 2023 | ||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||
Assets: | ||||||||||||
Interest-earning deposits with other banks | $ | 120,845 | $ | 1,609 | 5.36 | % | $ | 47,835 | $ | 479 | 4.06 | % |
Obligations of state and political subdivisions* | 1,951 | 12 | 2.47 | 2,286 | 17 | 3.02 | ||||||
Other debt and equity securities | 499,032 | 3,647 | 2.94 | 513,594 | 3,495 | 2.76 | ||||||
Federal Home Loan Bank, Federal Reserve Bank and other stock | 39,115 | 724 | 7.44 | 34,742 | 609 | 7.11 | ||||||
Total interest-earning deposits, investments and other interest-earning assets | 660,943 | 5,992 | 3.65 | 598,457 | 4,600 | 3.12 | ||||||
Commercial, financial, and agricultural loans | 934,649 | 16,523 | 7.11 | 991,876 | 15,538 | 6.35 | ||||||
Real estate-commercial and construction loans | 3,575,142 | 50,641 | 5.70 | 3,342,199 | 42,421 | 5.15 | ||||||
Real estate-residential loans | 1,618,188 | 19,555 | 4.86 | 1,408,292 | 15,730 | 4.53 | ||||||
Loans to individuals | 27,315 | 548 | 8.07 | 27,254 | 449 | 6.68 | ||||||
Municipal loans and leases* | 232,380 | 2,464 | 4.26 | 229,955 | 2,341 | 4.13 | ||||||
Lease financings | 189,691 | 3,169 | 6.72 | 165,314 | 2,541 | 6.23 | ||||||
Gross loans and leases | 6,577,365 | 92,900 | 5.68 | 6,164,890 | 79,020 | 5.20 | ||||||
Total interest-earning assets | 7,238,308 | 98,892 | 5.49 | 6,763,347 | 83,620 | 5.01 | ||||||
Cash and due from banks | 54,870 | 58,035 | ||||||||||
Allowance for credit losses, loans and leases | (86,495) | (79,977) | ||||||||||
Premises and equipment, net | 50,592 | 51,583 | ||||||||||
Operating lease right-of-use assets | 31,121 | 31,303 | ||||||||||
Other assets | 408,179 | 394,920 | ||||||||||
Total assets | $ | 7,696,575 | $ | 7,219,211 | ||||||||
Liabilities: | ||||||||||||
Interest-bearing checking deposits | $ | 1,180,696 | $ | 8,218 | 2.80 | % | $ | 857,891 | $ | 3,164 | 1.50 | % |
Money market savings | 1,705,291 | 19,220 | 4.53 | 1,489,129 | 11,081 | 3.02 | ||||||
Regular savings | 769,926 | 905 | 0.47 | 985,716 | 669 | 0.28 | ||||||
Time deposits | 1,238,878 | 13,630 | 4.42 | 566,308 | 3,422 | 2.45 | ||||||
Total time and interest-bearing deposits | 4,894,791 | 41,973 | 3.45 | 3,899,044 | 18,336 | 1.91 | ||||||
Short-term borrowings | 10,127 | 5 | 0.20 | 240,318 | 2,728 | 4.60 | ||||||
Long-term debt | 292,486 | 2,883 | 3.96 | 112,222 | 591 | 2.14 | ||||||
Subordinated notes | 148,818 | 2,281 | 6.16 | 148,319 | 2,281 | 6.24 | ||||||
Total borrowings | 451,431 | 5,169 | 4.61 | 500,859 | 5,600 | 4.53 | ||||||
Total interest-bearing liabilities | 5,346,222 | 47,142 | 3.55 | 4,399,903 | 23,936 | 2.21 | ||||||
Noninterest-bearing deposits | 1,409,063 | 1,935,371 | ||||||||||
Operating lease liabilities | 34,166 | 34,438 | ||||||||||
Accrued expenses and other liabilities | 64,578 | 60,346 | ||||||||||
Total liabilities | 6,854,029 | 6,430,058 | ||||||||||
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") | 6,755,285 | 2.81 | 6,335,274 | 1.53 | ||||||||
Shareholders' Equity: | ||||||||||||
Common stock | 157,784 | 157,784 | ||||||||||
Additional paid-in capital | 300,679 | 300,293 | ||||||||||
Retained earnings and other equity | 384,083 | 331,076 | ||||||||||
Total shareholders' equity | 842,546 | 789,153 | ||||||||||
Total liabilities and shareholders' equity | $ | 7,696,575 | $ | 7,219,211 | ||||||||
Net interest income | $ | 51,750 | $ | 59,684 | ||||||||
Net interest spread | 1.94 | 2.80 | ||||||||||
Effect of net interest-free funding sources | 0.94 | 0.78 | ||||||||||
Net interest margin | 2.88 | % | 3.58 | % | ||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 135.39 | % | 153.72 | % | ||||||||
*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 amortization of $453 thousand and $465 thousand for the three months ended March 31, 2024 and 2023, respectively.
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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 March 31, 2024 and 2023 have been calculated using the Corporation's federal applicable rate of 21.0%.
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Univest Financial Corporation | ||||
Loan Portfolio Overview (Unaudited) | ||||
March 31, 2024 | ||||
(Dollars in thousands) | ||||
Industry Description | Total Outstanding Balance | % of Commercial Loan Portfolio | ||
CRE - Retail | $ | 465,915 | 9.0 | % |
Animal Production | 361,143 | 6.9 | ||
CRE - Multi-family | 318,337 | 6.1 | ||
CRE - Office | 298,301 | 5.7 | ||
CRE - 1-4 Family Residential Investment | 289,167 | 5.6 | ||
CRE - Industrial / Warehouse | 248,041 | 4.8 | ||
Hotels & Motels (Accommodation) | 193,058 | 3.7 | ||
Specialty Trade Contractors | 161,917 | 3.1 | ||
Education | 153,971 | 3.0 | ||
Homebuilding (tract developers, remodelers) | 152,798 | 2.9 | ||
Nursing and Residential Care Facilities | 132,809 | 2.6 | ||
Motor Vehicle and Parts Dealers | 132,677 | 2.6 | ||
Merchant Wholesalers, Durable Goods | 122,481 | 2.4 | ||
CRE - Mixed-Use - Residential | 116,749 | 2.2 | ||
Crop Production | 104,137 | 2.0 | ||
Repair and Maintenance | 103,139 | 2.0 | ||
Wood Product Manufacturing | 90,017 | 1.7 | ||
Real Estate Lenders, Secondary Market Financing | 86,382 | 1.7 | ||
Rental and Leasing Services | 76,500 | 1.5 | ||
Fabricated Metal Product Manufacturing | 75,371 | 1.4 | ||
CRE - Mixed-Use - Commercial | 72,763 | 1.4 | ||
Religious Organizations, Advocacy Groups | 71,715 | 1.4 | ||
Personal and Laundry Services | 71,534 | 1.4 | ||
Administrative and Support Services | 70,224 | 1.3 | ||
Amusement, Gambling, and Recreation Industries | 68,644 | 1.3 | ||
Merchant Wholesalers, Nondurable Goods | 67,775 | 1.3 | ||
Food Services and Drinking Places | 66,625 | 1.3 | ||
Private Equity & Special Purpose Entities (except 52592) | 66,517 | 1.3 | ||
Miniwarehouse / Self-Storage | 61,996 | 1.2 | ||
Food Manufacturing | 60,794 | 1.2 | ||
Truck Transportation | 53,952 | 1.0 | ||
Industries with >$50 million in outstandings | $ | 4,415,449 | 84.9 | % |
Industries with <$50 million in outstandings | $ | 787,039 | 15.1 | % |
Total Commercial Loans | $ | 5,202,488 | 100.0 | % |
Consumer Loans and Lease Financings | Total Outstanding Balance | |||
Real Estate-Residential Secured for Personal Purpose | $ | 922,412 | ||
Real Estate-Home Equity Secured for Personal Purpose | 177,446 | |||
Loans to Individuals | 27,200 | |||
Lease Financings | 249,540 | |||
Total Consumer Loans and Lease Financings | $ | 1,376,598 | ||
Total | $ | 6,579,086 |
Univest Financial Corporation | ||||||||||
Non-GAAP Reconciliation | ||||||||||
March 31, 2024 | ||||||||||
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.
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As of or for the three months ended, | ||||||||||
(Dollars in thousands) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
Restructuring charges (a) | $ | - | $ | 189 | $ | - | $ | 1,330 | $ | - |
Tax effect of restructuring charges | - | (40) | - | (279) | - | |||||
Restructuring charges, net of tax | $ | - | $ | 149 | $ | - | $ | 1,051 | $ | - |
Net income | $ | 20,305 | $ | 16,254 | $ | 17,016 | $ | 16,800 | $ | 21,034 |
Amortization of intangibles, net of tax | 148 | 167 | 174 | 200 | 200 | |||||
Net income before amortization of intangibles | $ | 20,453 | $ | 16,421 | $ | 17,190 | $ | 17,000 | $ | 21,234 |
Shareholders' equity | $ | 843,669 | $ | 839,208 | $ | 807,198 | $ | 805,222 | $ | 798,496 |
Goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||
Other intangibles (b) | (2,273) | (2,405) | (2,558) | (2,767) | (3,054) | |||||
Tangible common equity | $ | 665,886 | $ | 661,293 | $ | 629,130 | $ | 626,945 | $ | 619,932 |
Total assets | $ | 7,746,568 | $ | 7,780,628 | $ | 7,828,066 | $ | 7,600,150 | $ | 7,358,991 |
Goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||
Other intangibles (b) | (2,273) | (2,405) | (2,558) | (2,767) | (3,054) | |||||
Tangible assets | $ | 7,568,785 | $ | 7,602,713 | $ | 7,649,998 | $ | 7,421,873 | $ | 7,180,427 |
Average shareholders' equity | $ | 842,546 | $ | 814,941 | $ | 811,515 | $ | 806,709 | $ | 789,153 |
Average goodwill | (175,510) | (175,510) | (175,510) | (175,510) | (175,510) | |||||
Average other intangibles (b) | (2,318) | (2,477) | (2,680) | (2,924) | (3,137) | |||||
Average tangible common equity | $ | 664,718 | $ | 636,954 | $ | 633,325 | $ | 628,275 | $ | 610,506 |
(a) Associated with financial service center optimization and headcount rationalization expense management strategies | ||||||||||
(b) Amount does not include mortgage servicing rights |