Univest Financial Corporation Reports First Quarter Results

Nachrichtenquelle: globenewswire
22.04.2020, 22:15  |  110   |   |   

SOUDERTON, Pa., April 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 quarter ended March 31, 2020 of  $838 thousand, or $0.03 diluted earnings per share, compared to net income of $16.1 million, or $0.55 diluted earnings per share, for the quarter ended March 31, 2019.

During these challenging times, we continue to responsibly serve the needs of our customers while prioritizing the health and safety of our employees.  We have implemented drive-through only banking at all our locations that have drive-through capabilities.  Additionally, we have controlled and limited access at our financial centers to allow customers to access their safe deposit boxes and to serve customers at locations without drive-through capabilities.  We have enabled approximately 95% of our non-financial center personnel to work remotely.  Our employees, systems and processes have managed this unprecedented change seamlessly and with great success.

As a direct result of the impact of COVID-19, we have taken various actions to support our customers and the communities they live in and serve, including modifying outstanding loans and waiving certain deposit service charges.  As of April 16, 2020, we have modified, or were in the process of modifying,  approximately 1,100 loans via principal and/or interest deferrals in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and will not be categorizing these modifications as troubled debt restructurings.  These loans had current principal balances of approximately $540 million. Additionally, we successfully processed approximately 1,050 Paycheck Protection Program (PPP) applications and secured SBA funding of approximately $415 million for our customers prior to the allocated funding being exhausted on April 16, 2020.  We will continue to support our customers during these challenging times.

CECL
The Corporation adopted Accounting Standard Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”) effective January 1, 2020.  Upon adoption, the reserve for credit losses on loans and leases increased by $12.9 million, the reserve for credit losses on investments increased by $300 thousand and the reserve for unfunded commitments increased by $1.1 million.  This resulted in an after-tax retained earnings adjustment of $11.3 million.  During the quarter ended March 31, 2020, the Corporation recorded CECL related charges of $21.8 million, including a provision for credit losses on loans and leases of $20.4 million, a provision for credit losses on investment securities of $597 thousand and a reserve for unfunded commitments of $794 thousand. 

The financial results for the quarter ended March 31, 2020, included $20.3 million (after-tax charge of $16.1 million), or $0.55 diluted earnings per share, of expense related to COVID-19, which was the result of economic assumptions within the Corporation’s CECL model. This charge included a provision for credit losses on loans and leases of $19.4 million, a provision for credit losses on investment securities of $536 thousand and a reserve for unfunded commitments of $384 thousand.

One-Time Items
The results for the quarter ended March 31, 2020, included a $652 thousand ($515 thousand after-tax), or $0.02 diluted earnings per share, gain on sale of investments securities and a $656 thousand ($518 thousand after-tax), or $0.02 diluted earnings per share, charge in other expense related to the extinguishment of long-term debt.  Both of these items resulted from opportunistic balance sheet trades that were executed during the quarter ended March 31, 2020 based on market conditions.

Loans
Gross loans and leases increased $62.0 million, or 5.7% (annualized), from December 31, 2019 and $380.9 million, or 9.4%, from March 31, 2019. The growth in loans from December 31, 2019 and March 31, 2019 was primarily in commercial real estate and residential real estate loans.

Deposits
Total deposits increased $47.2 million, or 4.3% (annualized), from December 31, 2019 primarily due to increases in commercial and consumer deposits partially offset by a seasonal decrease in public funds deposits. Total deposits increased $404.2 million, or 10.1%, from March 31, 2019 primarily due to increases in commercial, public fund and consumer deposits.

Net Interest Income and Margin
Net interest income of $42.5 million for the first quarter of 2020 increased $945 thousand, or 2.3%, from the first quarter of 2019. The increase in net interest income for the first quarter of 2020 compared to the first quarter of 2019 was primarily due to lower deposit and borrowing costs and growth in loans partially offset by a decrease in yield on loans.

Net interest margin, on a tax-equivalent basis, was 3.48% for the first quarter of 2020, compared to 3.44% for the fourth quarter of 2019 and 3.75% for the first quarter of 2019. Purchase accounting accretion had no impact on the quarter ended March 31, 2020 compared to a favorable impact of three basis points for the quarter ended December 31, 2019 and one basis point for the quarter ended March 31, 2019. Excess liquidity reduced net interest margin by approximately six basis points for the quarter ended March 31, 2020 compared to twelve basis points for the quarter ended December 31, 2019 and had no impact on the quarter ended March 31, 2019. This excess liquidity was primarily driven by strong deposit balance growth over the last year. Excluding purchase accounting accretion and the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 3.54% for the quarter ended March 31, 2020, 3.53% for the quarter ended December 31, 2019 and 3.74% for the quarter ended March 31, 2019.

Noninterest Income
Noninterest income for the quarter ended March 31, 2020 was $18.4 million, an increase of $2.1 million, or 12.8%, from the first quarter of 2019.

Net gain on mortgage banking activities increased $2.3 million, or 468.1%, for the quarter primarily due to an increase in mortgage volume and expansion of margins. Net gain on sales of investment securities increased $694 thousand for the quarter primarily due to a $652 thousand gain on the sale of $58.3 million of agency backed mortgage backed securities. Investment advisory commission and fee income increased $466 thousand, or 12.3%, for the quarter primarily due to new client relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance.

Insurance commission and fee income decreased $412 thousand, or 8.0%, for the quarter primarily due to a decrease in contingent commission income of $389 thousand, which was $1.1 million for the quarter ended March 31, 2020 compared to $1.5 million for the quarter ended March 31, 2019.  Other service fee income decreased $397 thousand, or 17.5%, primarily due to an increase of $331 thousand of mortgage servicing rights amortization for the quarter ended March 31, 2020 compared to the quarter ended March 31, 2019. The increase in amortization for the quarter was primarily driven by the decline in interest rates and their impact on prepayment activity. BOLI income decreased $218 thousand, or 22.9%, for the quarter ended March 31, 2020 primarily due to income on our non-qualified annuity portfolio of $26 thousand in the first quarter of 2020 compared to income of $249 thousand in the first quarter of 2019. During the first quarter of 2019, in order to reduce future volatility, the Corporation transferred the funds invested within the non-qualified annuity portfolio to a stable fund investment strategy. Other income decreased $272 thousand, 80.2%, for the quarter ended March 31, 2020, primarily driven by a loss in the value of equity securities measured at fair value of $268 thousand for the quarter ended March 31, 2020 compared to a gain of $4 thousand for the quarter ended March 31, 2019.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2020 was $39.6 million, an increase of $4.0 million, or 11.3%, compared to the first quarter of 2019.

Salaries, benefits and commissions increased $2.3 million, or 10.6%, for the quarter primarily attributable to additional staff hired, primarily during 2019, to support revenue generation across all business lines, expansion of our commercial lending groups in the first and second quarter of 2019, annual merit increases and increased variable compensation due to strong mortgage banking activity.  Data processing expense increased $246 thousand, or 9.8%, for the quarter primarily due to continued investments in customer relationship management software and internal infrastructure improvements as well as outsourced data processing solutions. Other expense increased $1.6 million, or 31.4%, for the quarter primarily due to a one-time $656 thousand charge related to the extinguishment of long-term debt and an increase of $794 thousand in the reserve for unfunded commitments, which resulted from the adoption of CECL.

Asset Quality and Provision for Credit Losses on Loans and Leases
Nonperforming assets were $39.0 million at March 31, 2020, compared to $39.3 million at December 31, 2019 and $27.4 million at March 31, 2019. The increase in nonperforming assets at March 31, 2020 compared to March 31, 2019 was primarily due to one commercial banking relationship, totaling $11.8 million as of March 31, 2020, which was placed on non-accrual status during 2019.

Net loan and lease charge-offs were $489 thousand during the first quarter of 2020. The provision for credit losses on loans and leases was $20.4 million for the first quarter of 2020, compared to $2.7 million for the first quarter of 2019, as explained earlier in this release.

The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.53% at March 31, 2020, compared to 0.81% at December 31, 2019 and 0.78% at March 31, 2019.

Tax Provision
The effective income tax rate was (261.2%) for the quarter ended March 31, 2020, compared to an effective income tax rate of 17.9% for the quarter ended March 31, 2019.  The negative effective tax rate for the quarter ended March 31, 2020 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Dividend
On February 24, 2020, Univest declared a quarterly cash dividend of $0.20 per share, payable on April 1, 2020. This represented a 5.24% 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 first quarter 2020 results on Thursday, April 23, 2020 at 9:00 a.m. EST. Participants may preregister at http://dpregister.com/10141755. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through May 23, 2020 by dialing 1-877-344-7529; using Conference ID: 10141755.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $5.5 billion in assets and $3.3 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2020. 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. It is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened.  As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: (1) demand for our products and services may decline, making it difficult to grow assets and income; (2) if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; (3) collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; (4) our allowance for loan losses may have to be increased if borrowers experience financial difficulties, which will adversely affect our net income; (5) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (6) as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; (6) a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of our quarterly cash dividend; (7) our wealth management revenues may decline with continuing market turmoil; (8) our cyber security risks are increased as the result of an increase in the number of employees working remotely; (9) we rely on third party vendors for certain services and the unavailability of a critical service due to the COVID-19 outbreak could have an adverse effect on us; (10); and Federal Deposit Insurance Corporation premiums may increase if the agency experience additional resolution costs. 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)
March 31, 2020
(Dollars in thousands)                    
                     
Balance Sheet (Period End)   03/31/20   12/31/19   09/30/19   06/30/19   03/31/19
Assets   $ 5,464,768     $ 5,380,924     $ 5,353,611     $ 5,154,298     $ 5,035,527  
Investment securities, net of allowance for credit losses     423,521       441,599       448,447       468,833       466,883  
Loans held for sale     11,417       5,504       2,893       1,498       921  
Loans and leases held for investment, gross     4,448,825       4,386,836       4,251,933       4,167,904       4,067,879  
Allowance for credit losses, loans and leases     68,216       35,331       33,662       32,600       31,602  
Loans and leases held for investment, net     4,380,609       4,351,505       4,218,271       4,135,304       4,036,277  
Total deposits     4,407,303       4,360,075       4,337,991       4,122,110       4,003,153  
Noninterest-bearing deposits     1,318,270       1,279,681       1,198,425       1,166,301       1,103,674  
NOW, money market and savings     2,452,021       2,474,384       2,421,466       2,246,372       2,260,795  
Time deposits     637,012       606,010       718,100       709,437       638,684  
Borrowings     323,363       263,596       273,855       304,241       313,083  
Shareholders' equity     651,551       675,122       664,299       651,670       637,606  
                     
                     
Balance Sheet (Average)   For the three months ended,
    03/31/20   12/31/19   09/30/19   06/30/19   03/31/19
Assets   $ 5,409,561     $ 5,400,591     $ 5,317,867     $ 5,170,448     $ 5,004,253  
Investment securities, net of allowance for credit losses     441,900       445,932       460,099       471,422       470,196  
Loans and leases, gross     4,388,584       4,280,430       4,170,485       4,123,069       4,017,362  
Deposits     4,349,984       4,374,586       4,288,170       4,145,411       3,931,199  
Shareholders' equity     673,460       672,647       659,523       645,538       631,574  
                     
                     
Asset Quality Data (Period End)                    
    03/31/20   12/31/19   09/30/19   06/30/19   03/31/19
Nonaccrual loans and leases, including nonaccrual troubled debt restructured                    
  loans and leases   $ 36,626     $ 38,578     $ 37,368     $ 25,147     $ 25,952  
Accruing loans and leases 90 days or more past due     1,777       143       2,488       1,379       636  
Accruing troubled debt restructured loans and leases     54       54       54       55       270  
Total nonperforming loans and leases     38,457       38,775       39,910       26,581       26,858  
Other real estate owned     516       516       495       540       540  
Total nonperforming assets     38,973       39,291       40,405       27,121       27,398  
Nonaccrual loans and leases / Loans and leases held for investment     0.82 %     0.88 %     0.88 %     0.60 %     0.64 %
Nonperforming loans and leases / Loans and leases held for investment     0.86 %     0.88 %     0.94 %     0.64 %     0.66 %
Nonperforming assets / Total assets     0.71 %     0.73 %     0.75 %     0.53 %     0.54 %
                     
Allowance for credit losses, loans and leases     68,216       35,331       33,662       32,600       31,602  
Allowance for credit losses, loans and leases / Loans and leases held for investment     1.53 %     0.81 %     0.79 %     0.78 %     0.78 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment     186.25 %     91.58 %     90.08 %     129.64 %     121.77 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment     177.38 %     91.12 %     84.34 %     122.64 %     117.66 %
                     
    For the three months ended,
    03/31/20   12/31/19   09/30/19   06/30/19   03/31/19
Net loan and lease charge-offs   $ 489     $ 558     $ 468     $ 1,078     $ 447  
Net loan and lease charge-offs (annualized)/Average loans and leases     0.04 %     0.05 %     0.04 %     0.10 %     0.05 %
                     



Univest Financial Corporation  
Consolidated Selected Financial Data (Unaudited)  
March 31, 2020  
(Dollars in thousands, except per share data)                    
  For the three months ended,  
For the period: 03/31/20   12/31/19   09/30/19   06/30/19   03/31/19  
Interest income $ 52,019     $ 53,369   $ 54,300     $ 54,060   $ 52,364  
Interest expense   9,551       10,940     11,655       11,425     10,841  
  Net interest income   42,468       42,429     42,645       42,635     41,523  
Provision for credit losses   21,049       2,227     1,530       2,076     2,685  
Net interest income after provision   21,419       40,202     41,115       40,559     38,838  
Noninterest income:                    
  Trust fee income   1,890       1,912     1,973       2,054     1,887  
  Service charges on deposit accounts   1,397       1,551     1,513       1,447     1,435  
  Investment advisory commission and fee income   4,255       4,064     4,032       4,055     3,789  
  Insurance commission and fee income   4,732       3,609     3,877       3,941     5,144  
  Other service fee income   1,870       2,229     2,255       2,590     2,267  
  Bank owned life insurance income   734       741     743       743     952  
  Net gain on sales of investment securities   695       13     33       7     1  
  Net gain on mortgage banking activities   2,744       1,038     1,629       796     483  
  Other income   67       1,013     544       723     339  
Total noninterest income   18,384       16,170     16,599       16,356     16,297  
Noninterest expense:                    
Salaries, benefits and commissions   23,836       21,933     22,758       22,052     21,546  
Net occupancy   2,574       2,534     2,475       2,601     2,611  
Equipment   995       1,027     1,088       1,065     990  
Data processing   2,760       2,685     2,624       2,627     2,514  
Professional fees   1,317       1,475     1,517       1,307     1,264  
Marketing and advertising   402       710     558       786     540  
Deposit insurance premiums   504       342     (444 )     430     452  
Intangible expenses   330       374     378       417     426  
Other expense   6,853       6,398     5,316       5,493     5,214  
Total noninterest expense   39,571       37,478     36,270       36,778     35,557  
Income before taxes   232       18,894     21,444       20,137     19,578  
Income tax (benefit) expense   (606 )     3,384     3,782       3,669     3,499  
Net income $ 838     $ 15,510   $ 17,662     $ 16,468   $ 16,079  
Net income per share:                    
  Basic $ 0.03     $ 0.53   $ 0.60     $ 0.56   $ 0.55  
  Diluted $ 0.03     $ 0.53   $ 0.60     $ 0.56   $ 0.55  
Dividends declared per share $ 0.20     $ 0.20   $ 0.20     $ 0.20   $ 0.20  
Weighted average shares outstanding   29,286,200       29,327,169     29,305,524       29,287,754     29,277,339  
Period end shares outstanding   29,164,782       29,334,629     29,312,534       29,294,942     29,272,502  
                     



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2020
                       
                       
                       
      For the three months ended,
Profitability Ratios (annualized)  03/31/20   12/31/19   09/30/19   06/30/19   03/31/19
                       
Return on average assets    0.06 %     1.14 %     1.32 %     1.28 %     1.30 %
Return on average shareholders' equity    0.50 %     9.15 %     10.62 %     10.23 %     10.32 %
Return on average tangible common equity (1)   0.68 %     12.40 %     14.52 %     14.10 %     14.36 %
Net interest margin (FTE)    3.48 %     3.44 %     3.52 %     3.67 %     3.75 %
Efficiency ratio (2)    64.1 %     63.0 %     60.4 %     61.5 %     60.5 %
                       
Capitalization Ratios                       
                       
Dividends declared to net income      699.9 %     37.8 %     33.2 %     35.6 %     36.4 %
Shareholders' equity to assets (Period End)    11.92 %     12.55 %     12.41 %     12.64 %     12.66 %
Tangible common equity to tangible assets (1)   8.99 %     9.59 %     9.42 %     9.54 %     9.47 %
Common equity book value per share   $ 22.34     $ 23.01     $ 22.66     $ 22.25     $ 21.78  
Tangible common equity book value per share (1) $ 16.31     $ 17.01     $ 16.64     $ 16.20     $ 15.72  
                       
Regulatory Capital Ratios (Period End)                    
Tier 1 leverage ratio      9.90 %     10.02 %     9.97 %     10.01 %     10.10 %
Common equity tier 1 risk-based capital ratio   10.79 %     11.03 %     11.03 %     10.99 %     10.93 %
Tier 1 risk-based capital ratio    10.79 %     11.03 %     11.03 %     10.99 %     10.93 %
Total risk-based capital ratio    13.65 %     13.78 %     13.81 %     13.79 %     13.77 %
                       
                       
(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) Shareholders' equity $ 651,551     $ 675,122     $ 664,299     $ 651,670     $ 637,606  
  Goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )
  Other intangibles (g)     (3,333 )     (3,658 )     (4,026 )     (4,396 )     (4,805 )
  (b) Tangible common equity $ 475,659     $ 498,905     $ 487,714     $ 474,715     $ 460,242  
                       
  (c) Total assets $ 5,464,768     $ 5,380,924     $ 5,353,611     $ 5,154,298     $ 5,035,527  
  Goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )
  Other intangibles (g)     (3,333 )     (3,658 )     (4,026 )     (4,396 )     (4,805 )
  (d) Tangible assets $ 5,288,876     $ 5,204,707     $ 5,177,026     $ 4,977,343     $ 4,858,163  
                       
  (e) Average shareholders' equity $ 673,460     $ 672,647     $ 659,523     $ 645,538     $ 631,574  
  Average goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )
  Average other intangibles (g)     (3,506 )     (3,853 )     (4,234 )     (4,615 )     (5,031 )
  (f) Average tangible common equity $ 497,395     $ 496,235     $ 482,730     $ 468,364     $ 453,984  
                       
  (g) Amount does not include servicing rights                  
                       
(2 ) Noninterest expense to net interest income before provision for credit losses plus noninterest income adjusted for tax equivalent income.
                       



Univest Financial Corporation  
Average Balances and Interest Rates (Unaudited)  
    For the Three Months Ended,      
Tax Equivalent Basis March 31, 2020   December 31, 2019  
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 118,108   $ 325 1.11 % $ 205,703   $ 860 1.66 %
U.S. government obligations   7,298     37 2.04     7,297     37 2.01  
Obligations of state and political subdivisions   33,595     289 3.46     35,938     324 3.58  
Other debt and equity securities   401,007     2,668 2.68     402,697     2,684 2.64  
Federal Home Loan Bank, Federal Reserve Bank and other stock   31,450     527 6.74     30,653     514 6.65  
Total interest-earning deposits, investments and other interest-earning assets   591,458     3,846 2.62     682,288     4,419 2.57  
                 
Commercial, financial, and agricultural loans   821,267     8,631 4.23     830,757     9,197 4.39  
Real estate—commercial and construction loans   2,139,369     23,917 4.50     2,040,442     23,526 4.57  
Real estate—residential loans   991,550     11,052 4.48     966,370     11,566 4.75  
Loans to individuals   30,016     407 5.45     31,694     458 5.73  
Municipal loans and leases   317,006     3,265 4.14     325,939     3,323 4.04  
Lease financings   89,376     1,554 6.99     85,228     1,528 7.11  
  Gross loans and leases   4,388,584     48,826 4.47     4,280,430     49,598 4.60  
Total interest-earning assets   4,980,042     52,672 4.25     4,965,718     54,017 4.32  
Cash and due from banks   50,891           50,794        
Reserve for credit losses, loans and leases   (44,372 )         (34,392 )      
Premises and equipment, net   56,399           57,043        
Operating lease right-of-use assets   34,545           34,693        
Other assets   332,056           329,735        
  Total assets $ 5,409,561         $ 5,400,591        
                 
Liabilities:                
Interest-bearing checking deposits $ 584,391   $ 796 0.55 % $ 566,904   $ 941 0.66 %
Money market savings   1,057,336     2,903 1.10     1,074,066     3,749 1.38  
Regular savings   816,760     792 0.39     798,145     870 0.43  
Time deposits   602,903     2,915 1.94     648,726     3,261 1.99  
  Total time and interest-bearing deposits   3,061,390     7,406 0.97     3,087,841     8,821 1.13  
                 
Short-term borrowings   40,126     106 1.06     30,404     63 0.82  
Long-term debt   169,205     764 1.82     153,049     795 2.06  
Subordinated notes   94,847     1,275 5.41     94,786     1,261 5.28  
  Total borrowings   304,178     2,145 2.84     278,239     2,119 3.02  
  Total interest-bearing liabilities   3,365,568     9,551 1.14     3,366,080     10,940 1.29  
Noninterest-bearing deposits   1,288,594           1,286,745        
Operating lease liabilities   37,766           37,867        
Accrued expenses and other liabilities   44,173           37,252        
  Total liabilities   4,736,101           4,727,944        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   295,318           294,731        
Retained earnings and other equity   220,358           220,132        
  Total shareholders' equity   673,460           672,647        
  Total liabilities and shareholders' equity $ 5,409,561         $ 5,400,591        
Net interest income   $ 43,121       $ 43,077    
                 
Net interest spread     3.11       3.03  
Effect of net interest-free funding sources     0.37       0.41  
Net interest margin     3.48 %     3.44 %
Ratio of average interest-earning assets to average interest-bearing liabilities   147.97 %         147.43 %      
                 
Note 1: 
For rate calculation purposes, average loan and lease categories include deferred fees and cost and purchase accounting adjustments. 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, 2020 and December 31, 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 March 31,      
Tax Equivalent Basis     2020         2019    
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 118,108   $ 325 1.11 % $ 42,566   $ 269 2.56 %
U.S. government obligations   7,298     37 2.04     20,039     82 1.66  
Obligations of state and political subdivisions   33,595     289 3.46     64,167     546 3.45  
Other debt and equity securities   401,007     2,668 2.68     385,990     2,631 2.76  
Federal Home Loan Bank, Federal Reserve Bank and other stock   31,450     527 6.74     32,360     586 7.34  
Total interest-earning deposits, investments and other interest-earning assets   591,458     3,846 2.62     545,122     4,114 3.06  
                 
Commercial, financial, and agricultural loans   821,267     8,631 4.23     811,071     10,758 5.38  
Real estate—commercial and construction loans   2,139,369     23,917 4.50     1,822,276     21,559 4.80  
Real estate—residential loans   991,550     11,052 4.48     938,299     11,412 4.93  
Loans to individuals   30,016     407 5.45     32,524     518 6.46  
Municipal loans and leases   317,006     3,265 4.14     332,299     3,221 3.93  
Lease financings   89,376     1,554 6.99     80,893     1,435 7.19  
  Gross loans and leases   4,388,584     48,826 4.47     4,017,362     48,903 4.94  
Total interest-earning assets   4,980,042     52,672 4.25     4,562,484     53,017 4.71  
Cash and due from banks   50,891           44,714        
Reserve for credit losses, loans and leases   (44,372 )         (30,111 )      
Premises and equipment, net   56,399           59,179        
Operating lease right-of-use assets   34,545           37,129        
Other assets   332,056           330,858        
  Total assets $ 5,409,561         $ 5,004,253        
                 
Liabilities:                
Interest-bearing checking deposits $ 584,391   $ 796 0.55 % $ 478,927   $ 714 0.60 %
Money market savings   1,057,336     2,903 1.10     918,487     3,748 1.65  
Regular savings   816,760     792 0.39     789,033     814 0.42  
Time deposits   602,903     2,915 1.94     655,303     2,927 1.81  
  Total time and interest-bearing deposits   3,061,390     7,406 0.97     2,841,750     8,203 1.17  
                 
Short-term borrowings   40,126     106 1.06     117,664     638 2.20  
Long-term debt   169,205     764 1.82     145,299     739 2.06  
Subordinated notes   94,847     1,275 5.41     94,603     1,261 5.41  
  Total borrowings   304,178     2,145 2.84     357,566     2,638 2.99  
  Total interest-bearing liabilities   3,365,568     9,551 1.14     3,199,316     10,841 1.37  
Noninterest-bearing deposits   1,288,594           1,089,449        
Operating lease liabilities   37,766           40,090        
Accrued expenses and other liabilities   44,173           43,824        
  Total liabilities   4,736,101           4,372,679        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   295,318           292,746        
Retained earnings and other equity   220,358           181,044        
  Total shareholders' equity   673,460           631,574        
  Total liabilities and shareholders' equity $ 5,409,561         $ 5,004,253        
Net interest income   $ 43,121       $ 42,176    
                 
Net interest spread     3.11       3.34  
Effect of net interest-free funding sources     0.37       0.41  
Net interest margin     3.48 %     3.75 %
Ratio of average interest-earning assets to average interest-bearing liabilities   147.97 %         142.61 %      
                 
Note 1: 
For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and 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, 2020 and 2019 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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