Univest Financial Corporation Reports Year and Fourth Quarter Results

Nachrichtenquelle: globenewswire
22.01.2020, 22:15  |  113   |   |   

(Loan Growth for 2019 of 9.5%)

SOUDERTON, Pa., Jan. 22, 2020 (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, today announced net income for the year ended December 31, 2019 of  $65.7 million, or $2.24 diluted earnings per share, compared to net income of $50.5 million, or $1.72 diluted earnings per share, for the year ended December 31, 2018. Net income for the quarter ended December 31, 2019 was $15.5 million, or $0.53 diluted earnings per share, compared to net income of $18.4 million, or $0.63 diluted earnings per share, for the quarter ended December 31, 2018.

One-Time Items
The financial results for the year ended December 31, 2019 included a Federal Deposit Insurance Corporation (FDIC) small bank assessment credit of $1.1 million (after-tax benefit of $871 thousand) of which $988 thousand was recognized during the third quarter of 2019 and $114 thousand was recognized during the fourth quarter of 2019. The FDIC credit represented a favorable impact to earnings per share of $0.03 during the third quarter of 2019 and for the year ended December 31, 2019. In addition, the fourth quarter and year ended December 31, 2019 included an expense related to a legal settlement with a former Fox Chase Bank customer of $869 thousand (after-tax charge of $687 thousand), or $0.02 diluted earnings per share.

The financial results for the year ended December 31, 2018 included a net provision for loan and lease losses of $10.9 million (after-tax charge of $8.6 million), or $0.29 diluted earnings per share related to fraudulent activities by employees of a borrower. The second quarter of 2018 included a pre-tax charge to the provision for loan and lease losses of $12.7 million (after-tax charge of $10.1 million), or $0.34 diluted earnings per share, related to this relationship, and the quarter ended December 31, 2018 included a recovery of $1.8 million (after-tax recovery of $1.5 million), which represented $0.05 diluted earnings per share.

The year ended December 31, 2018 included two additional items: a tax-free bank owned life insurance (BOLI) death benefit of $446 thousand during the second quarter of 2018, which represented $0.02 diluted earnings per share, and restructuring costs related to financial center closures of $451 thousand, net of tax, recognized in the first quarter of 2018, which represented $0.02 diluted earnings per share.

Loans
Gross loans and leases increased $380.3 million, or 9.5%, from December 31, 2018 and $134.9 million, or 12.7% (annualized), from September 30, 2019 primarily due to growth in commercial real estate and residential real estate loans.

Deposits
Total deposits increased $468.8 million, or 12.1%, from December 31, 2018 primarily due to an increase in public funds deposits of $201.9 million and increases in commercial and consumer deposits. Total deposits increased $16.8 million, or 1.5% (annualized), from September 30, 2019 primarily due to increases in commercial and consumer deposits partially offset by a seasonal decrease in public funds deposits of $166.3 million.

Net Interest Income and Margin
Net interest income of $169.2 million for the year ended December 31, 2019 increased $11.2 million, or 7.1%, from the prior year. The increase in net interest income for the year ended December 31, 2019 compared to the prior year was primarily due to a 9.8% increase in average loans during the last year. Net interest margin, on a tax-equivalent basis, was 3.59% for the year ended December 31, 2019 compared to 3.72% for the year ended December 31, 2018. The favorable impact of purchase accounting accretion was two basis points for each of the years ended December 31, 2019 and 2018. Excess liquidity reduced net interest margin by approximately eight basis points for the year ended December 31, 2019 compared to one basis point for the year ended December 31, 2018. This excess liquidity was primarily driven by strong deposit balance growth during 2019. Excluding purchase accounting accretion and the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 3.65% for the year ended December 31, 2019 and 3.71% for the year ended December 31, 2018.

Net interest margin, on a tax-equivalent basis, was 3.44% for the fourth quarter of 2019, compared to 3.52% for the third quarter of 2019 and 3.72% for the fourth quarter of 2018. The favorable impact of purchase accounting accretion was three basis points for the quarter ended December 31, 2019 compared to no impact for the quarter ended September 30, 2019 and one basis point for the quarter ended December 31, 2018. Excess liquidity reduced net interest margin by approximately 12 basis points for the quarter ended December 31, 2019, compared to 13 basis points for the quarter ended September 30, 2019, and four basis points for the quarter ended December 31, 2018. Excluding purchase accounting accretion and the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 3.53% for the quarter ended December 31, 2019 compared to 3.65% for the quarter ended September 30, 2019 and 3.75% for the quarter ended December 31, 2018.

Noninterest Income
Noninterest income for the quarter ended December 31, 2019 was $16.2 million, an increase of $1.8 million, or 12.2%, from the fourth quarter of 2018. Noninterest income for the year ended December 31, 2019 was $65.4 million, an increase of $5.2 million, or 8.7%, from the comparable period in the prior year.

The net gain on mortgage banking activities increased $325 thousand, or 45.6%, for the quarter and $821 thousand, or 26.3%, for the year ended December 31, 2019, primarily due to an increase in mortgage volume partially offset by contraction in margins to remain price competitive. Investment advisory commission and fee income increased $212 thousand, or 5.5%, for the quarter and $842 thousand, or 5.6%, for the year ended December 31, 2019, primarily due to new client relationships and appreciation of assets under management. Insurance commission and fee income increased $194 thousand, or 5.7%, for the quarter and $913 thousand, or 5.8%, for the year ended December 31, 2019, primarily due to an increase in premiums for commercial lines and group life and health for the quarter and year ended December 31, 2019 as well as an increase in contingent commission income of $316 thousand for the year ended December 31, 2019. Service charges on deposit accounts increased $314 thousand, or 5.6%, for the year ended December 31, 2019, primarily due to increased fee income on commercial cash management accounts. BOLI income increased $311 thousand for the quarter ended December 31, 2019 primarily due to a decline in the value of the non-qualified annuity portfolio of $287 thousand in the fourth quarter of 2018.

Other income increased $853 thousand for the quarter and $2.4 million for the year ended December 31, 2019. Fees on risk participation agreements increased $407 thousand for the quarter and $1.1 million for the year ended December 31, 2019, driven by increased customer activity. Gain on sale of small business administration (SBA) loans increased $94 thousand for the quarter and $462 thousand for the year ended December 31, 2019 due to increased SBA loan sale activity. Net loss on valuations and sales of other real estate owned was $28 thousand for the year ended December 31, 2019 compared to $626 thousand for the year ended December 31, 2018.

Noninterest Expense
Noninterest expense for the quarter ended December 31, 2019 was $37.5 million, an increase of $4.1 million, or 12.2%, compared to the fourth quarter of 2018. Noninterest expense for the year ended December 31, 2019 was $146.1 million, an increase of $8.8 million, or 6.4%, from the prior year.

Salaries, benefits and commissions increased $2.4 million, or 12.2%, for the quarter and $7.8 million, or 9.7%, for the year ended December 31, 2019, primarily attributable to additional staff hired to support revenue generation across all business lines, expansion of our commercial lending groups and annual merit increases. During the first quarter of 2019, Univest hired a team of eight commercial lenders and support staff to focus on increasing Univest’s presence in Western Lancaster and York Counties. During the second quarter of 2019, a team of three commercial lenders was hired to help expand Univest’s presence in the New Jersey suburbs of Philadelphia. Data processing expense increased $333 thousand, or 14.2%, for the quarter and $1.4 million, or 15.9%, for the year ended December 31, 2019, primarily due to continued investments in customer relationship management software and internal infrastructure improvements as well as outsourced data processing solutions for the year ended December 31, 2019. Other expense included a charge of $869 thousand related to a legal settlement with a former Fox Chase Bank customer.

These increases were partially offset by a decrease in deposit insurance premiums of $1.1 million for the year ended December 31, 2019 due to the previously discussed FDIC small bank assessment credit. Intangible expenses decreased by $107 thousand, or 22.2%, for the quarter and $571 thousand, or 26.4%, for the year ended December 31, 2019 due to a run-off of intangible assets from prior acquisitions. In addition, restructuring costs related to financial center closures and staffing rationalization were $571 thousand during the first quarter of 2018. There were no restructuring costs incurred during 2019.  Excluding the FDIC small bank assessment credit, the legal settlement charge and restructuring costs, noninterest expense for the year ended December 31, 2019 increased $9.6 million, or 7.1%.

Asset Quality and Provision for Loan and Lease Losses
Nonperforming assets were $39.3 million at December 31, 2019, compared to $40.4 million at September 30, 2019 and $28.1 million at December 31, 2018. The increase in nonperforming assets at December 31, 2019 compared to December 31, 2018 was primarily due to one commercial banking relationship, totaling $11.9 million as of December 31, 2019, which was placed on non-accrual status during 2019.

Net loan and lease charge-offs were $558 thousand during the fourth quarter of 2019 and $2.6 million for the year ended December 31, 2019. The provision for loan and lease losses was $2.2 million for the fourth quarter of 2019 and $8.5 million for the year ended December 31, 2019. Net loan and lease recoveries were $1.9 million during the fourth quarter of 2018, which included the $1.8 million recovery related to the previously discussed commercial loan charge-off. The provision for loan and lease losses was $103 thousand for the fourth quarter of 2018. For the year ended December 31, 2018, net loan and lease charge-offs of $12.5 million and the provision for loan and lease losses of $20.3 million include the previously discussed $10.9 million commercial loan net charge-off.

The allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding covered loans acquired in the Fox Chase and Valley Green Bank acquisitions, which were recorded at fair value as of the acquisition date, was 0.85% at December 31, 2019 and September 30, 2019 and 0.81% at December 31, 2018.

Tax Provision  
The effective income tax rate was 17.9% for the quarter ended December 31, 2019, compared to an effective income tax rate of 17.6% for the quarter ended December 31, 2018. The effective income tax rate was 17.9% for the year ended December 31, 2019 compared to an effective income tax rate of 16.7% for the year ended December 31, 2018.

Dividend
On December 9, 2019, Univest declared a quarterly cash dividend of $0.20 per share, payable on January 2, 2020. This represented a 3.01% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.

Conference Call
Univest will host a conference call to discuss fourth quarter and year end 2019 results on Thursday, January 23, 2020 at 9:00 a.m. EST. Participants may preregister at http://dpregister.com/10137953. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through February 23, 2020 by dialing 1-877-344-7529; using Conference ID: 10137953.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $5.4 billion in assets and $3.8 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2019. 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 in southeastern Pennsylvania extending to the Lehigh Valley and Lancaster, as well as in New Jersey and Maryland and online at www.univest.net.

This press release of Univest and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the financial services industry and, specifically, the financial operations, markets and products of Univest. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) competitive pressures among financial institutions; (2) changes in the interest rate environment; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest is engaged; (6) technological issues that may adversely affect Univest financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Univest Financial Corporation  
Consolidated Selected Financial Data (Unaudited)  
December 31, 2019  
(Dollars in thousands)                              
                               
Balance Sheet (Period End)   12/31/19   09/30/19   06/30/19   03/31/19   12/31/18          
Assets   $ 5,375,614     $ 5,353,611     $ 5,154,298     $ 5,035,527     $ 4,984,347            
Investment securities     441,599       448,447       468,833       466,883       473,306            
Loans held for sale     5,504       2,893       1,498       921       1,754            
Loans and leases held for investment, gross     4,386,836       4,251,933       4,167,904       4,067,879       4,006,574            
Allowance for loan and lease losses     35,331       33,662       32,600       31,602       29,364            
Loans and leases held for investment, net     4,351,505       4,218,271       4,135,304       4,036,277       3,977,210            
Total deposits     4,354,765       4,337,991       4,122,110       4,003,153       3,885,933            
Noninterest-bearing deposits     1,279,681       1,198,425       1,166,301       1,103,674       1,055,919            
NOW, money market and savings     2,469,074       2,421,466       2,246,372       2,260,795       2,159,937            
Time deposits     606,010       718,100       709,437       638,684       670,077            
Borrowings     263,596       273,855       304,241       313,083       429,672            
Shareholders' equity     675,122       664,299       651,670       637,606       624,133            
                               
                               
Balance Sheet (Average)   For the three months ended,   For the twelve months ended,  
    12/31/19   09/30/19   06/30/19   03/31/19   12/31/18   12/31/19   12/31/18  
Assets   $ 5,400,533     $ 5,317,867     $ 5,170,448     $ 5,004,253     $ 4,890,519     $ 5,224,569     $ 4,737,772    
Investment securities     445,932       460,099       471,422       470,196       464,684       461,841       456,612    
Loans and leases, gross     4,280,430       4,170,485       4,123,069       4,017,362       3,894,298       4,148,619       3,776,940    
Deposits     4,374,528       4,288,170       4,145,411       3,931,199       3,938,378       4,186,325       3,696,264    
Shareholders' equity     672,647       659,523       645,538       631,574       619,204       652,453       612,197    
                               
                               
Asset Quality Data (Period End)                              
    12/31/19   09/30/19   06/30/19   03/31/19   12/31/18          
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases   $ 38,578     $ 37,368     $ 25,147     $ 25,952     $ 26,208            
Accruing loans and leases 90 days or more past due     143       2,488       1,379       636       192            
Accruing troubled debt restructured loans and leases     54       54       55       270       542            
Total nonperforming loans and leases     38,775       39,910       26,581       26,858       26,942            
Other real estate owned     516       495       540       540       1,187            
Total nonperforming assets     39,291       40,405       27,121       27,398       28,129            
Nonaccrual loans and leases / Loans and leases held for investment     0.88 %     0.88 %     0.60 %     0.64 %     0.65 %          
Nonperforming loans and leases / Loans and leases held for investment     0.88 %     0.94 %     0.64 %     0.66 %     0.67 %          
Nonperforming assets / Total assets     0.73 %     0.75 %     0.53 %     0.54 %     0.56 %          
                               
Allowance for loan and lease losses     35,331       33,662       32,600       31,602       29,364            
Allowance for loan and lease losses / Loans and leases held for investment     0.81 %     0.79 %     0.78 %     0.78 %     0.73 %          
Allowance for loan and lease losses / Loans and leases held for investment     0.85 %     0.85 %     0.85 %     0.85 %     0.81 %          
(excluding acquired loans at period-end)                              
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment   91.58 %     90.08 %     129.64 %     121.77 %     112.04 %          
Allowance for loan and lease losses / Nonperforming loans and leases held for investment     91.12 %     84.34 %     122.64 %     117.66 %     108.99 %          
Acquired credit impaired loans   $ 264     $ 568     $ 569     $ 693     $ 695            
                               
    For the three months ended,   For the twelve months ended,  
    12/31/19   09/30/19   06/30/19   03/31/19   12/31/18   12/31/19   12/31/18  
Net loan and lease charge-offs (recoveries)   $ 558     $ 468     $ 1,078     $ 447     $ (1,890 )   $ 2,551     $ 12,501    
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases     0.05%       0.04%       0.10%       0.05%       (0.19% )     0.06%       0.33%    


Univest Financial Corporation  
Consolidated Selected Financial Data (Unaudited)  
December 31, 2019  
(Dollars in thousands, except per share data)                              
    For the three months ended,   For the twelve months ended,  
For the period:   12/31/19   09/30/19   06/30/19   03/31/19   12/31/18   12/31/19   12/31/18  
Interest income   $ 53,369   $ 54,300     $ 54,060   $ 52,364   $ 51,239   $ 214,093   $ 190,488  
Interest expense     10,940     11,655       11,425     10,841     9,862     44,861     32,426  
Net interest income     42,429     42,645       42,635     41,523     41,377     169,232     158,062  
Provision for loan and lease losses     2,227     1,530       2,076     2,685     103     8,518     20,310  
Net interest income after provision     40,202     41,115       40,559     38,838     41,274     160,714     137,752  
Noninterest income:                              
Trust fee income     1,912     1,973       2,054     1,887     1,882     7,826     7,882  
Service charges on deposit accounts     1,551     1,513       1,447     1,435     1,516     5,946     5,632  
Investment advisory commission and fee income     4,064     4,032       4,055     3,789     3,852     15,940     15,098  
Insurance commission and fee income     3,609     3,877       3,941     5,144     3,415     16,571     15,658  
Other service fee income     2,229     2,255       2,590     2,267     2,448     9,341     9,332  
Bank owned life insurance income     741     743       743     952     430     3,179     3,174  
Net gain on sales of investment securities     13     33       7     1     -     54     10  
Net gain on mortgage banking activities     1,038     1,629       796     483     713     3,946     3,125  
Other income     1,013     544       723     339     160     2,619     262  
Total noninterest income     16,170     16,599       16,356     16,297     14,416     65,422     60,173  
Noninterest expense:                              
Salaries, benefits and commissions     21,933     22,758       22,052     21,546     19,544     88,289     80,488  
Net occupancy     2,534     2,475       2,601     2,611     2,455     10,221     10,260  
Equipment     1,027     1,088       1,065     990     1,014     4,170     4,146  
Data processing     2,685     2,624       2,627     2,514     2,352     10,450     9,014  
Professional fees     1,475     1,517       1,307     1,264     1,335     5,563     5,391  
Marketing and advertising     710     558       786     540     655     2,594     2,642  
Deposit insurance premiums     342     (444 )     430     452     449     780     1,836  
Intangible expenses     374     378       417     426     481     1,595     2,166  
Restructuring charges     -     -       -     -     -     -     571  
Other expense     6,398     5,316       5,493     5,214     5,111     22,421     20,725  
Total noninterest expense     37,478     36,270       36,778     35,557     33,396     146,083     137,239  
Income before taxes     18,894     21,444       20,137     19,578     22,294     80,053     60,686  
Income tax expense     3,384     3,782       3,669     3,499     3,922     14,334     10,143  
Net income   $ 15,510   $ 17,662     $ 16,468   $ 16,079   $ 18,372   $ 65,719   $ 50,543  
Net income per share:                              
Basic   $ 0.53   $ 0.60     $ 0.56   $ 0.55   $ 0.63   $ 2.24   $ 1.72  
Diluted   $ 0.53   $ 0.60     $ 0.56   $ 0.55   $ 0.63   $ 2.24   $ 1.72  
Dividends declared per share   $ 0.20   $ 0.20     $ 0.20   $ 0.20   $ 0.20   $ 0.80   $ 0.80  
Weighted average shares outstanding     29,327,169     29,305,524       29,287,754     29,277,339     29,319,664     29,299,599     29,370,217  
Period end shares outstanding     29,334,629     29,312,534       29,294,942     29,272,502     29,270,852     29,334,629     29,270,852  


Univest Financial Corporation  
Consolidated Selected Financial Data (Unaudited)  
December 31, 2019  
                                     
                                     
                                     
          For the three months ended,   For the twelve months ended,  
Profitability Ratios (annualized)   12/31/19   09/30/19   06/30/19   03/31/19   12/31/18   12/31/19   12/31/18  
                                     
Return on average assets       1.14 %     1.32 %     1.28 %     1.30 %     1.49 %     1.26 %     1.07 %  
Return on average assets, excluding restructuring charges (1), (2)      1.14 %     1.32 %     1.28 %     1.30 %     1.49 %     1.26 %     1.08 %  
Return on average shareholders' equity     9.15 %     10.62 %     10.23 %     10.32 %     11.77 %     10.07 %     8.26 %  
Return on average shareholders' equity, excluding restructuring charges (1), (2)   9.15 %     10.62 %     10.23 %     10.32 %     11.77 %     10.07 %     8.33 %  
Return on average tangible common equity, excluding restructuring charges (1), (2)   12.40 %     14.52 %     14.10 %     14.36 %     16.52 %     13.82 %     11.77 %  
Net interest margin (FTE)       3.44 %     3.52 %     3.67 %     3.75 %     3.72 %     3.59 %     3.72 %  
Efficiency ratio (3)         63.0 %     60.4 %     61.5 %     60.5 %     59.0 %     61.4 %     61.9 %  
Efficiency ratio, excluding restructuring charges (1), (3), (4)   63.0 %     60.4 %     61.5 %     60.5 %     59.0 %     61.4 %     61.6 %  
                                     
Capitalization Ratios                                
                                     
Dividends declared to net income       37.8 %     33.2 %     35.6 %     36.4 %     31.9 %     35.7 %     46.5 %  
Shareholders' equity to assets (Period End)     12.56 %     12.41 %     12.64 %     12.66 %     12.52 %     12.56 %     12.52 %  
Tangible common equity to tangible assets (1)   9.60 %     9.42 %     9.54 %     9.47 %     9.29 %     9.60 %     9.29 %  
Common equity book value per share   $ 23.01     $ 22.66     $ 22.25     $ 21.78     $ 21.32     $ 23.01     $ 21.32    
Tangible common equity book value per share (1) $ 17.01     $ 16.64     $ 16.20     $ 15.72     $ 15.25     $ 17.01     $ 15.25    
                                     
Regulatory Capital Ratios (Period End)                              
Tier 1 leverage ratio         10.02 %     9.97 %     10.01 %     10.10 %     10.13 %     10.02 %     10.13 %  
Common equity tier 1 risk-based capital ratio   11.03 %     11.03 %     10.99 %     10.93 %     10.88 %     11.03 %     10.88 %  
Tier 1 risk-based capital ratio       11.03 %     11.03 %     10.99 %     10.93 %     10.88 %     11.03 %     10.88 %  
Total risk-based capital ratio       13.78 %     13.81 %     13.79 %     13.77 %     13.70 %     13.78 %     13.70 %  
                                     
                                     
(1 ) This consolidated selected financial data schedule contains supplemental financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The management of Univest Financial Corporation uses these 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 below table for additional information.  
                                     
  (a) Restructuring charges $ -     $ -     $ -     $ -     $ -     $ -     $ 571    
  Tax effect on restructuring charges   -       -       -       -       -       -       (120 )  
  (b) Restructuring charges, net of tax $ -     $ -     $ -     $ -     $ -     $ -     $ 451    
                                     
  (c) Shareholders' equity $ 675,122     $ 664,299     $ 651,670     $ 637,606     $ 624,133     $ 675,122     $ 624,133    
  Goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )  
  Other intangibles (i)     (3,658 )     (4,026 )     (4,396 )     (4,805 )     (5,222 )     (3,658 )     (5,222 )  
  (d) Tangible common equity $ 498,905     $ 487,714     $ 474,715     $ 460,242     $ 446,352     $ 498,905     $ 446,352    
                                     
  (e) Total assets $ 5,375,614     $ 5,353,611     $ 5,154,298     $ 5,035,527     $ 4,984,347     $ 5,375,614     $ 4,984,347    
  Goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )  
  Other intangibles (i)     (3,658 )     (4,026 )     (4,396 )     (4,805 )     (5,222 )     (3,658 )     (5,222 )  
  (f) Tangible assets $ 5,199,397     $ 5,177,026     $ 4,977,343     $ 4,858,163     $ 4,806,566     $ 5,199,397     $ 4,806,566    
                                     
  (g) Average shareholders' equity $ 672,647     $ 659,523     $ 645,538     $ 631,574     $ 619,204     $ 652,453     $ 612,197    
  Average goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )  
  Average other intangibles (i)     (3,853 )     (4,234 )     (4,615 )     (5,031 )     (5,473 )     (4,430 )     (6,233 )  
  (h) Average tangible common equity $ 496,235     $ 482,730     $ 468,364     $ 453,984     $ 441,172     $ 475,464     $ 433,405    
                                     
  (i) Amount does not include servicing rights                            
                                     
(2 ) Net income in this ratio excludes restructuring charges, net of tax. See (1)(b) above.                      
(3 ) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.          
(4 ) Noninterest expense in this ratio excludes restructuring charges. See (1)(a) above.                      
                                     


Univest Financial Corporation    
Average Balances and Interest Rates (Unaudited)    
    For the Three Months Ended,        
Tax Equivalent Basis December 31, 2019   September 30, 2019    
  Average Income/ Average   Average Income/ Average    
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate    
Assets:                  
Interest-earning deposits with other banks $ 205,645   $ 860 1.66 % $ 213,623   $ 1,178 2.19 %  
U.S. government obligations   7,297     37 2.01     14,154     62 1.74    
Obligations of state and political subdivisions   35,938     324 3.58     42,465     316 2.95    
Other debt and equity securities   402,697     2,684 2.64     403,480     2,519 2.48    
Federal Home Loan Bank, Federal Reserve Bank and other stock   30,653     514 6.65     30,857     519 6.67    
Total interest-earning deposits, investments and other interest-earning assets   682,230     4,419 2.57     704,579     4,594 2.59    
                   
Commercial, financial, and agricultural loans   830,757     9,197 4.39     800,006     9,952 4.94    
Real estate—commercial and construction loans   2,040,442     23,526 4.57     1,966,593     23,439 4.73    
Real estate—residential loans   966,370     11,566 4.75     956,224     11,570 4.80    
Loans to individuals   31,694     458 5.73     31,504     490 6.17    
Municipal loans and leases   325,939     3,323 4.04     333,734     3,413 4.06    
Lease financings   85,228     1,528 7.11     82,424     1,482 7.13    
Gross loans and leases   4,280,430     49,598 4.60     4,170,485     50,346 4.79    
Total interest-earning assets   4,962,660     54,017 4.32     4,875,064     54,940 4.47    
Cash and due from banks   50,794           53,019          
Reserve for loan and lease losses   (34,392 )         (33,152 )        
Premises and equipment, net   57,043           57,881          
Operating lease right-of-use assets   34,693           35,238          
Other assets   329,735           329,817          
Total assets $ 5,400,533         $ 5,317,867          
                   
Liabilities:                  
Interest-bearing checking deposits $ 566,904   $ 941 0.66 % $ 497,185   $ 678 0.54 %  
Money market savings   1,074,066     3,749 1.38     1,004,806     4,112 1.62    
Regular savings   798,087     870 0.43     805,632     963 0.47    
Time deposits   648,726     3,261 1.99     715,520     3,681 2.04    
Total time and interest-bearing deposits   3,087,783     8,821 1.13     3,023,143     9,434 1.24    
                   
Short-term borrowings   30,404     63 0.82     32,375     94 1.15    
Long-term debt   153,049     795 2.06     167,338     866 2.05    
Subordinated notes   94,786     1,261 5.28     94,724     1,261 5.28    
Total borrowings   278,239     2,119 3.02     294,437     2,221 2.99    
Total interest-bearing liabilities   3,366,022     10,940 1.29     3,317,580     11,655 1.39    
Noninterest-bearing deposits   1,286,745           1,265,027          
Operating lease liabilities   37,867           38,364          
Accrued expenses and other liabilities   37,252           37,373          
Total liabilities   4,727,886           4,658,344          
                   
Shareholders' Equity:                  
Common stock   157,784           157,784          
Additional paid-in capital   294,731           294,138          
Retained earnings and other equity   220,132           207,601          
Total shareholders' equity   672,647           659,523          
Total liabilities and shareholders' equity $ 5,400,533         $ 5,317,867          
Net interest income   $ 43,077       $ 43,285      
                   
Net interest spread     3.03       3.08    
Effect of net interest-free funding sources     0.41       0.44    
Net interest margin     3.44 %     3.52 %  
Ratio of average interest-earning assets to average interest-bearing liabilities   147.43 %         146.95 %        
                   
Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and unearned discount. 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, 2019 and September 30, 2019 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    2019        2018        
  Average Income/ Average   Average Income/ Average      
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate      
Assets:                    
Interest-earning deposits with other banks $ 205,645   $ 860 1.66 % $ 89,784   $ 480 2.12 %    
U.S. government obligations   7,297     37 2.01     22,307     89 1.58      
Obligations of state and political subdivisions   35,938     324 3.58     65,134     553 3.37      
Other debt and equity securities   402,697     2,684 2.64     377,243     2,494 2.62      
Federal Home Loan Bank, Federal Reserve Bank and other stock   30,653     514 6.65     30,175     468 6.15      
Total interest-earning deposits, investments and other interest-earning assets   682,230     4,419 2.57     584,643     4,084 2.77      
              -      
Commercial, financial, and agricultural loans   830,757     9,197 4.39     782,666     10,322 5.23      
Real estate—commercial and construction loans   2,040,442     23,526 4.57     1,766,543     21,309 4.79      
Real estate—residential loans   966,370     11,566 4.75     910,620     11,102 4.84      
Loans to individuals   31,694     458 5.73     31,902     511 6.35      
Municipal loans and leases   325,939     3,323 4.04     323,904     3,160 3.87      
Lease financings   85,228     1,528 7.11     78,663     1,407 7.10      
Gross loans and leases   4,280,430     49,598 4.60     3,894,298     47,811 4.87      
Total interest-earning assets   4,962,660     54,017 4.32     4,478,941     51,895 4.60      
Cash and due from banks   50,794           47,429            
Reserve for loan and lease losses   (34,392 )         (28,499 )          
Premises and equipment, net   57,043           60,448            
Operating lease right-of-use assets   34,693           -            
Other assets   329,735           332,200            
Total assets $ 5,400,533         $ 4,890,519            
                     
Liabilities:                    
Interest-bearing checking deposits $ 566,904   $ 941 0.66 % $ 491,749   $ 708 0.57 %    
Money market savings   1,074,066     3,749 1.38     889,165     3,372 1.50      
Regular savings   798,087     870 0.43     768,825     637 0.33      
Time deposits   648,726     3,261 1.99     676,256     2,958 1.74      
Total time and interest-bearing deposits   3,087,783     8,821 1.13     2,825,995     7,675 1.08      
                     
Short-term borrowings   30,404     63 0.82     56,215     233 1.64      
Long-term debt   153,049     795 2.06     140,597     694 1.96      
Subordinated notes   94,786     1,261 5.28     94,542     1,260 5.29      
Total borrowings   278,239     2,119 3.02     291,354     2,187 2.98      
Total interest-bearing liabilities   3,366,022     10,940 1.29     3,117,349     9,862 1.26      
Noninterest-bearing deposits   1,286,745           1,112,383            
Operating lease liabilities   37,867           -            
Accrued expenses and other liabilities   37,252           41,583            
Total liabilities   4,727,886           4,271,315            
                     
Shareholders' Equity:                    
Common stock   157,784           157,784            
Additional paid-in capital   294,731           292,342            
Retained earnings and other equity   220,132           169,078            
Total shareholders' equity   672,647           619,204            
Total liabilities and shareholders' equity $ 5,400,533         $ 4,890,519            
Net interest income   $ 43,077       $ 42,033        
                     
Net interest spread     3.03       3.34      
Effect of net interest-free funding sources     0.41       0.38      
Net interest margin     3.44 %     3.72 %    
Ratio of average interest-earning assets to average interest-bearing liabilities   147.43 %         143.68 %          
                     
Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and unearned discount. 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, 2019 and 2018 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     2019         2018      
  Average Income/ Average   Average Income/ Average    
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate    
Assets:                  
Interest-earning deposits with other banks $ 141,760   $ 2,876 2.03 % $ 56,984   $ 1,101 1.93 %  
U.S. government obligations   14,665     254 1.73     22,930     364 1.59    
Obligations of state and political subdivisions   50,360     1,693 3.36     69,842     2,330 3.34    
Other debt and equity securities   396,816     10,406 2.62     363,840     9,024 2.48    
Federal Home Loan Bank, Federal Reserve Bank and other stock   31,446     2,154 6.85     30,786     1,965 6.38    
Total interest-earning deposits, investments and other interest-earning assets   635,047     17,383 2.74     544,382     14,784 2.72    
                   
Commercial, financial, and agricultural loans   815,472     40,496 4.97     793,028     39,156 4.94    
Real estate—commercial and construction loans   1,936,073     91,634 4.73     1,689,983     78,498 4.64    
Real estate—residential loans   950,743     46,031 4.84     870,846     41,270 4.74    
Loans to individuals   31,912     1,976 6.19     30,242     1,866 6.17    
Municipal loans and leases   331,831     13,262 4.00     316,280     12,049 3.81    
Lease financings   82,588     5,904 7.15     76,561     5,514 7.20    
Gross loans and leases   4,148,619     199,303 4.80     3,776,940     178,353 4.72    
Total interest-earning assets   4,783,666     216,686 4.53     4,321,322     193,137 4.47    
Cash and due from banks   48,877           45,979          
Reserve for loan and lease losses   (32,389 )         (25,154 )        
Premises and equipment, net   58,237           61,006          
Operating lease right-of-use assets   35,712           -          
Other assets   330,466           334,619          
Total assets $ 5,224,569         $ 4,737,772          
                   
Liabilities:                  
Interest-bearing checking deposits $ 500,295   $ 2,790 0.56 % $ 461,676   $ 1,924 0.42 %  
Money market savings   995,403     15,843 1.59     764,777     9,137 1.19    
Regular savings   802,851     3,660 0.46     798,332     2,357 0.30    
Time deposits   677,199     13,276 1.96     601,674     8,768 1.46    
Total time and interest-bearing deposits   2,975,748     35,569 1.20     2,626,459     22,186 0.84    
                   
Short-term borrowings   56,882     1,012 1.78     144,312     2,420 1.68    
Long-term debt   156,366     3,236 2.07     150,032     2,777 1.85    
Subordinated notes   94,695     5,044 5.33     94,451     5,043 5.34    
Total borrowings   307,943     9,292 3.02     388,795     10,240 2.63    
Total interest-bearing liabilities   3,283,691     44,861 1.37     3,015,254     32,426 1.08    
Noninterest-bearing deposits   1,210,577           1,069,805          
Operating lease liabilities   38,791           -          
Accrued expenses and other liabilities   39,057           40,516          
Total liabilities   4,572,116           4,125,575          
                   
Shareholders' Equity:                  
Common stock   157,784           157,784          
Additional paid-in capital   293,784           291,148          
Retained earnings and other equity   200,885           163,265          
Total shareholders' equity   652,453           612,197          
Total liabilities and shareholders' equity $ 5,224,569         $ 4,737,772          
Net interest income   $ 171,825       $ 160,711      
                   
Net interest spread     3.16       3.39    
Effect of net interest-free funding sources     0.43       0.33    
Net interest margin     3.59 %     3.72 %  
Ratio of average interest-earning assets to average interest-bearing liabilities   145.68 %         143.32 %        
                   
Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and unearned discount. 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, 2019 and 2018 have been calculated using the Corporation’s federal applicable rate of 21.0%.
CONTACT: CONTACT:
Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net  
Univest Financial Corporation Aktie jetzt ab 0€ handeln - auf Smartbroker.de



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