Univest Financial Corporation Reports Fourth Quarter and 2022 Results


Univest Financial Corporation Reports Fourth Quarter and 2022 Results

Univest Financial Corporation

(2022 Loan Growth of 16.0% (excluding PPP1 loans))

SOUDERTON, Pa., Jan. 25, 2023 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended December 31, 2022 was $23.8 million, or $0.81 diluted earnings per share, compared to net income of $17.4 million, or $0.59 diluted earnings per share, for the quarter ended December 31, 2021.

One-Time Items
The financial results for the quarter included bank owned life insurance (“BOLI”) death benefit claims of $526 thousand, which represented $0.02 diluted earnings per share. Restructuring charges of $184 thousand were recognized in the fourth quarter related to the consolidation of two financial centers.

Loans
Gross loans and leases, excluding Paycheck Protection Program (“PPP”) loans1, increased $842.8 million, or 16.0%, from December 31, 2021, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings. Gross loans and leases, excluding PPP loans, increased $274.0 million, or 18.8% (annualized), from September 30, 2022, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.

Deposits
Total deposits decreased $151.3 million, or 2.5%, from December 31, 2021, primarily due to decreases in commercial, consumer and public funds deposits partially offset by an increase in brokered deposits. Total deposits increased $116.8 million, or 8.0% (annualized), from September 30, 2022, primarily due to increases in commercial, consumer and brokered deposits partially offset by decreases in public funds deposits.

Net Interest Income and Margin
Net interest income of $61.9 million for the three months ended December 31, 2022 increased $3.7 million, or 6.3%, from the three months ended September 30, 2022, and $14.4 million, or 30.3%, from the three months ended December 31, 2021. The increase in net interest income for the three months ended December 31, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity of the Corporation’s balance sheet, offset by an increase in costs of funds.

Net interest margin, on a tax-equivalent basis, was 3.76% for the fourth quarter of 2022, compared to 3.67% for the third quarter of 2022 and 2.86% for the fourth quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended December 31, 2022 compared to one basis point for the quarter ended September 30, 2022 and 43 basis points for the quarter ended December 31, 2021. PPP loans had no impact on net interest margin for the quarters ended December 31, 2022 and September 30, 2022 and had a favorable impact on net interest margin of eight basis points for the quarter ended December 31, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.77% for the quarter ended December 31, 2022 compared to 3.68% for the quarter ended September 30, 2022 and 3.21% for the quarter ended December 31, 2021.

Noninterest Income
Noninterest income for the quarter ended December 31, 2022 was $20.5 million, an increase of $1.3 million, or 6.6%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $700 thousand, or 14.3%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase was primarily due to a $1.2 million adjustment in the quarter for previously unrecorded revenue of which $815 thousand related to the first nine months of 2022. This adjustment was partially offset by decreased income driven by reduced assets under management due to market volatility. Insurance commission and fee income increased $698 thousand, or 18.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.

Other income increased $1.2 million, or 114.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year due to a $1.1 million increase in interest rate swap income.

BOLI increased $511 thousand, or 71.1%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to death benefit claims as previously discussed.

Net gain on mortgage banking activities decreased $2.1 million, or 82.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of gain on sale margins.

Noninterest Expense
Noninterest expense for the quarter ended December 31, 2022 was $47.3 million, an increase of $4.0 million, or 9.2%, from the comparable period in the prior year. The results for the three months ended December 31, 2022 included approximately $434 thousand in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to personalize experiences and seamlessly deliver existing products and services, digitally, across an expanded footprint.

Salaries, benefits and commissions increased $1.7 million, or 6.0%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western Pennsylvania, and annual merit increases.

Data processing expenses increased $684 thousand, or 20.4%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology, general price increases, and $206 thousand in support of the previously discussed digital transformation initiative for the respective period.

Restructuring charges increased $184 thousand for the quarter ended December 31, 2022 compared to the comparable period in the prior year as previously discussed.

Other expense increased $1.2 million, or 21.3%, for the quarter compared to the comparable period in the prior year primarily due to increases in travel and entertainment expenses of $228 thousand for the quarter and $430 thousand of fraud losses.

Tax Provision
The effective income tax rate was 19.6% for the year ended December 31, 2022, compared to an effective income tax rate of 19.7% for the year ended December 31, 2021. The effective tax rate for the year ended December 31, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $33.5 million at December 31, 2022, compared to $33.0 million at September 30, 2022 and $34.0 million at December 31, 2021.

Net loan and lease charge-offs were $908 thousand and $1.2 million for the three months ended December 31, 2022 and September 30, 2022, respectively, compared to net loan and lease recoveries of $243 thousand for the three months ended December 31, 2021. Net loan and lease charge-offs were $3.9 million and $213 thousand for the year ended December 31, 2022 and December 31, 2021, respectively.

The provision for credit losses was $5.4 million for the three months ended December 31, 2022 compared to a provision for credit losses of $3.6 million and $1.4 million for the three months ended September 30, 2022 and December 31, 2021, respectively. The provision for credit losses was $12.2 million for the year ended December 31, 2022 compared to a reversal of provision for credit losses of $10.1 million for the comparable period in the prior year. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.29% at December 31, 2022 compared to 1.28% at September 30, 2022 and 1.35% at December 31, 2021.

Dividend
On January 25, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 22, 2023 to shareholders of record as of February 8, 2023.

Conference Call
Univest will host a conference call to discuss fourth quarter 2022 results on Thursday, January 26, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=789ec9e7&confId=45853. The general public can access the call by dialing 1-844-200-6205; using Access Code 610261. A replay of the conference call will be available through February 23, 2023 by dialing 1-866-813-9403; using Access Code: 720149.

1Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included within this document.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.2 billion in assets and $4.2 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2022. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.

This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory, accounting or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (11) potential recessionary conditions and/or (12) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP – ER)

Univest Financial Corporation

Consolidated Selected Financial Data (Unaudited)

December 31, 2022

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet (Period End)

 

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

84,176

 

 

$

65,859

 

 

$

59,590

 

 

$

57,307

 

 

$

49,202

 

 

 

 

 

Interest-earning deposits with other banks

 

 

68,623

 

 

 

47,451

 

 

 

35,187

 

 

 

716,474

 

 

 

840,948

 

 

 

 

 

Cash and cash equivalents

 

 

152,799

 

 

 

113,310

 

 

 

94,777

 

 

 

773,781

 

 

 

890,150

 

 

 

 

 

Investment securities held-to-maturity

 

 

154,727

 

 

 

159,170

 

 

 

159,808

 

 

 

166,339

 

 

 

176,983

 

 

 

 

 

Investment securities available for sale, net of allowance for credit losses

 

 

350,256

 

 

 

347,479

 

 

 

351,382

 

 

 

349,994

 

 

 

317,007

 

 

 

 

 

Investments in equity securities

 

 

2,579

 

 

 

2,994

 

 

 

2,934

 

 

 

2,569

 

 

 

2,999

 

 

 

 

 

Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost

 

 

33,841

 

 

 

29,475

 

 

 

29,116

 

 

 

26,330

 

 

 

28,186

 

 

 

 

 

Loans held for sale

 

 

5,037

 

 

 

9,087

 

 

 

8,352

 

 

 

14,521

 

 

 

21,600

 

 

 

 

 

Loans and leases held for investment

 

 

6,123,230

 

 

 

5,849,259

 

 

 

5,661,777

 

 

 

5,400,786

 

 

 

5,310,017

 

 

 

 

 

Less: Allowance for credit losses, loans and leases

 

 

(79,004

)

 

 

(74,929

)

 

 

(72,011

)

 

 

(68,286

)

 

 

(71,924

)

 

 

 

 

Net loans and leases held for investment

 

 

6,044,226

 

 

 

5,774,330

 

 

 

5,589,766

 

 

 

5,332,500

 

 

 

5,238,093

 

 

 

 

 

Premises and equipment, net

 

 

50,939

 

 

 

50,533

 

 

 

50,080

 

 

 

50,429

 

 

 

56,882

 

 

 

 

 

Operating lease right-of-use assets

 

 

30,059

 

 

 

30,654

 

 

 

30,929

 

 

 

30,498

 

 

 

30,407

 

 

 

 

 

Goodwill

 

 

175,510

 

 

 

175,510

 

 

 

175,510

 

 

 

175,510

 

 

 

175,510

 

 

 

 

 

Other intangibles, net of accumulated amortization

 

 

11,384

 

 

 

11,650

 

 

 

11,728

 

 

 

11,784

 

 

 

11,848

 

 

 

 

 

Bank owned life insurance

 

 

120,297

 

 

 

120,035

 

 

 

120,103

 

 

 

119,398

 

 

 

118,699

 

 

 

 

 

Accrued interest and other assets

 

 

90,362

 

 

 

83,170

 

 

 

76,328

 

 

 

54,087

 

 

 

54,057

 

 

 

 

 

Total assets

 

$

7,222,016

 

 

$

6,907,397

 

 

$

6,700,813

 

 

$

7,107,740

 

 

$

7,122,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

2,037,562

 

 

$

1,968,422

 

 

$

2,062,538

 

 

$

2,136,467

 

 

$

2,065,423

 

 

 

 

 

Interest-bearing deposits:

 

 

3,866,263

 

 

 

3,818,554

 

 

 

3,500,510

 

 

 

3,911,465

 

 

 

3,989,701

 

 

 

 

 

Total deposits

 

 

5,903,825

 

 

 

5,786,976

 

 

 

5,563,048

 

 

 

6,047,932

 

 

 

6,055,124

 

 

 

 

 

Short-term borrowings

 

 

197,141

 

 

 

80,711

 

 

 

97,606

 

 

 

18,976

 

 

 

20,106

 

 

 

 

 

Long-term debt

 

 

95,000

 

 

 

95,000

 

 

 

95,000

 

 

 

95,000

 

 

 

95,000

 

 

 

 

 

Subordinated notes

 

 

148,260

 

 

 

99,107

 

 

 

99,030

 

 

 

98,952

 

 

 

98,874

 

 

 

 

 

Operating lease liabilities

 

 

33,153

 

 

 

33,718

 

 

 

33,951

 

 

 

33,566

 

 

 

33,453

 

 

 

 

 

Accrued expenses and other liabilities

 

 

68,137

 

 

 

57,698

 

 

 

48,253

 

 

 

39,459

 

 

 

46,070

 

 

 

 

 

Total liabilities

 

 

6,445,516

 

 

 

6,153,210

 

 

 

5,936,888

 

 

 

6,333,885

 

 

 

6,348,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDER’S EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued

 

 

157,784

 

 

 

157,784

 

 

 

157,784

 

 

 

157,784

 

 

 

157,784

 

 

 

 

 

Additional paid-in capital

 

 

300,808

 

 

 

299,791

 

 

 

298,800

 

 

 

297,945

 

 

 

299,181

 

 

 

 

 

Retained earnings

 

 

428,637

 

 

 

410,942

 

 

 

396,295

 

 

 

389,332

 

 

 

375,124

 

 

 

 

 

Accumulated other comprehensive loss, net of tax benefit

 

 

(62,104

)

 

 

(64,985

)

 

 

(42,781

)

 

 

(31,909

)

 

 

(16,353

)

 

 

 

 

Treasury stock, at cost

 

 

(48,625

)

 

 

(49,345

)

 

 

(46,173

)

 

 

(39,297

)

 

 

(41,942

)

 

 

 

 

Total shareholders’ equity

 

 

776,500

 

 

 

754,187

 

 

 

763,925

 

 

 

773,855

 

 

 

773,794

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,222,016

 

 

$

6,907,397

 

 

$

6,700,813

 

 

$

7,107,740

 

 

$

7,122,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the twelve months ended,

Balance Sheet (Average)

 

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

12/31/22

 

12/31/21

Assets

 

$

7,019,381

 

 

$

6,797,466

 

 

$

6,962,401

 

 

$

7,047,980

 

 

$

7,088,289

 

 

$

6,956,292

 

$

6,655,443

Investment securities, net of allowance for credit losses

 

 

505,717

 

 

 

517,335

 

 

 

515,741

 

 

 

522,128

 

 

 

469,588

 

 

 

515,192

 

 

406,463

Loans and leases, gross

 

 

5,979,581

 

 

 

5,752,119

 

 

 

5,520,580

 

 

 

5,344,698

 

 

 

5,255,279

 

 

 

5,651,265

 

 

5,322,475

Deposits

 

 

5,837,823

 

 

 

5,645,291

 

 

 

5,903,173

 

 

 

5,984,815

 

 

 

6,041,798

 

 

 

5,841,832

 

 

5,591,195

Shareholders’ equity

 

 

767,192

 

 

 

773,099

 

 

 

771,410

 

 

 

774,358

 

 

 

762,334

 

 

 

771,499

 

 

734,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Univest Financial Corporation

Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)

December 31, 2022

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Major Loan and Lease Categories (Period End)

 

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

 

 

 

Commercial, financial and agricultural

 

$

1,086,781

 

 

$

1,052,733

 

 

$

1,028,354

 

 

$

932,485

 

 

$

956,396

 

 

 

 

 

Paycheck Protection Program

 

 

2,147

 

 

 

2,207

 

 

 

5,358

 

 

 

10,298

 

 

 

31,748

 

 

 

 

 

Real estate-commercial

 

 

3,027,955

 

 

 

2,936,204

 

 

 

2,870,286

 

 

 

2,816,737

 

 

 

2,718,535

 

 

 

 

 

Real estate-construction

 

 

381,811

 

 

 

329,915

 

 

 

319,449

 

 

 

285,083

 

 

 

283,918

 

 

 

 

 

Real estate-residential secured for business purpose

 

 

478,254

 

 

 

443,837

 

 

 

419,652

 

 

 

412,486

 

 

 

409,900

 

 

 

 

 

Real estate-residential secured for personal purpose

 

 

730,395

 

 

 

685,771

 

 

 

629,144

 

 

 

568,735

 

 

 

540,566

 

 

 

 

 

Real estate-home equity secured for personal purpose

 

 

176,699

 

 

 

175,843

 

 

 

168,536

 

 

 

160,134

 

 

 

158,909

 

 

 

 

 

Loans to individuals

 

 

27,873

 

 

 

26,679

 

 

 

27,061

 

 

 

26,249

 

 

 

25,504

 

 

 

 

 

Lease financings

 

 

211,315

 

 

 

196,070

 

 

 

193,937

 

 

 

188,579

 

 

 

184,541

 

 

 

 

 

Total loans and leases held for investment, net of deferred income

 

 

6,123,230

 

 

 

5,849,259

 

 

 

5,661,777

 

 

 

5,400,786

 

 

 

5,310,017

 

 

 

 

 

Less: Allowance for credit losses, loans and leases

 

 

(79,004

)

 

 

(74,929

)

 

 

(72,011

)

 

 

(68,286

)

 

 

(71,924

)

 

 

 

 

Net loans and leases held for investment

 

$

6,044,226

 

 

$

5,774,330

 

 

$

5,589,766

 

 

$

5,332,500

 

 

$

5,238,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Data (Period End)

 

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

 

 

 

Nonaccrual loans and leases, including nonaccrual troubled debt restructured

 

 

 

 

 

 

 

 

 

 

 

 

 

 

loans and leases

 

$

13,353

 

 

$

13,620

 

 

$

13,355

 

 

$

30,876

 

 

$

33,210

 

 

 

 

 

Accruing loans and leases 90 days or more past due

 

 

875

 

 

 

416

 

 

 

2,784

 

 

 

274

 

 

 

498

 

 

 

 

 

Accruing troubled debt restructured loans and leases

 

 

49

 

 

 

50

 

 

 

50

 

 

 

51

 

 

 

51

 

 

 

 

 

Total nonperforming loans and leases

 

 

14,277

 

 

 

14,086

 

 

 

16,189

 

 

 

31,201

 

 

 

33,759

 

 

 

 

 

Other real estate owned

 

 

19,258

 

 

 

18,960

 

 

 

18,604

 

 

 

279

 

 

 

279

 

 

 

 

 

Total nonperforming assets

 

$

33,535

 

 

$

33,046

 

 

$

34,793

 

 

$

31,480

 

 

$

34,038

 

 

 

 

 

Nonaccrual loans and leases / Loans and leases held for investment

 

 

0.22

%

 

 

0.23

%

 

 

0.24

%

 

 

0.57

%

 

 

0.63

%

 

 

 

 

Nonperforming loans and leases / Loans and leases held for investment

 

 

0.23

%

 

 

0.24

%

 

 

0.29

%

 

 

0.58

%

 

 

0.64

%

 

 

 

 

Nonperforming assets / Total assets

 

 

0.46

%

 

 

0.48

%

 

 

0.52

%

 

 

0.44

%

 

 

0.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses, loans and leases

 

$

79,004

 

 

$

74,929

 

 

$

72,011

 

 

$

68,286

 

 

$

71,924

 

 

 

 

 

Allowance for credit losses, loans and leases / Loans and leases held for investment

 

 

1.29

%

 

 

1.28

%

 

 

1.27

%

 

 

1.26

%

 

 

1.35

%

 

 

 

 

Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)

 

 

1.29

%

 

 

1.28

%

 

 

1.27

%

 

 

1.27

%

 

 

1.36

%

 

 

 

 

Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment

 

 

591.66

%

 

 

550.14

%

 

 

539.21

%

 

 

221.16

%

 

 

216.57

%

 

 

 

 

Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment

 

 

553.37

%

 

 

531.94

%

 

 

444.81

%

 

 

218.86

%

 

 

213.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the twelve months ended,

 

 

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

12/31/22

 

12/31/21

Net loan and lease charge-offs (recoveries)

 

$

908

 

 

$

1,196

 

 

$

1,715

 

 

$

76

 

 

$

(243

)

 

$

3,895

 

 

$

213

 

Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases

 

 

0.06

%

 

 

0.08

%

 

 

0.12

%

 

 

0.01

%

 

 

(0.02

%)

 

 

0.07

%

 

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included at the end of this document.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Univest Financial Corporation

Consolidated Selected Financial Data (Unaudited)

December 31, 2022

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the twelve months ended,

For the period:

 

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

12/31/22

 

12/31/21

Interest income

 

$

77,401

 

$

66,877

 

$

56,717

 

$

51,198

 

 

$

52,262

 

$

252,193

 

$

209,731

 

Interest expense

 

 

15,485

 

 

8,627

 

 

5,246

 

 

4,538

 

 

 

4,737

 

 

33,896

 

 

21,348

 

Net interest income

 

 

61,916

 

 

58,250

 

 

51,471

 

 

46,660

 

 

 

47,525

 

 

218,297

 

 

188,383

 

Provison (reversal of provision) for credit losses

 

 

5,416

 

 

3,558

 

 

6,674

 

 

(3,450

)

 

 

1,392

 

 

12,198

 

 

(10,132

)

Net interest income after provision for credit losses

 

 

56,500

 

 

54,692

 

 

44,797

 

 

50,110

 

 

 

46,133

 

 

206,099

 

 

198,515

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust fee income

 

 

1,808

 

 

1,835

 

 

1,998

 

 

2,102

 

 

 

2,086

 

 

7,743

 

 

8,403

 

Service charges on deposit accounts

 

 

1,575

 

 

1,522

 

 

1,574

 

 

1,504

 

 

 

1,486

 

 

6,175

 

 

5,504

 

Investment advisory commission and fee income

 

 

5,585

 

 

4,199

 

 

4,812

 

 

5,152

 

 

 

4,885

 

 

19,748

 

 

18,936

 

Insurance commission and fee income

 

 

4,424

 

 

4,442

 

 

4,629

 

 

5,570

 

 

 

3,726

 

 

19,065

 

 

16,357

 

Other service fee income

 

 

3,236

 

 

3,124

 

 

3,309

 

 

2,756

 

 

 

2,759

 

 

12,425

 

 

10,275

 

Bank owned life insurance income

 

 

1,230

 

 

1,153

 

 

705

 

 

699

 

 

 

719

 

 

3,787

 

 

3,981

 

Net gain on sales of investment securities

 

 

 

 

 

 

 

 

30

 

 

 

5

 

 

30

 

 

145

 

Net gain on mortgage banking activities

 

 

436

 

 

817

 

 

1,230

 

 

1,929

 

 

 

2,518

 

 

4,412

 

 

15,141

 

Other income

 

 

2,164

 

 

867

 

 

741

 

 

728

 

 

 

1,008

 

 

4,500

 

 

4,482

 

Total noninterest income

 

 

20,458

 

 

17,959

 

 

18,998

 

 

20,470

 

 

 

19,192

 

 

77,885

 

 

83,224

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries, benefits and commissions

 

 

29,028

 

 

29,400

 

 

29,133

 

 

28,245

 

 

 

27,374

 

 

115,806

 

 

104,191

 

Net occupancy

 

 

2,551

 

 

2,504

 

 

2,422

 

 

2,716

 

 

 

2,477

 

 

10,193

 

 

10,397

 

Equipment

 

 

977

 

 

968

 

 

977

 

 

982

 

 

 

985

 

 

3,904

 

 

3,899

 

Data processing

 

 

4,039

 

 

3,901

 

 

3,708

 

 

3,567

 

 

 

3,355

 

 

15,215

 

 

12,743

 

Professional fees

 

 

1,829

 

 

2,521

 

 

2,844

 

 

2,138

 

 

 

1,750

 

 

9,332

 

 

7,687

 

Marketing and advertising

 

 

739

 

 

605

 

 

693

 

 

425

 

 

 

683

 

 

2,462

 

 

2,063

 

Deposit insurance premiums

 

 

708

 

 

662

 

 

812

 

 

893

 

 

 

698

 

 

3,075

 

 

2,712

 

Intangible expenses

 

 

301

 

 

309

 

 

342

 

 

341

 

 

 

267

 

 

1,293

 

 

979

 

Restructuring charges

 

 

184

 

 

 

 

 

 

 

 

 

 

 

184

 

 

 

Other expense

 

 

6,970

 

 

5,795

 

 

6,440

 

 

6,105

 

 

 

5,746

 

 

25,310

 

 

22,738

 

Total noninterest expense

 

 

47,326

 

 

46,665

 

 

47,371

 

 

45,412

 

 

 

43,335

 

 

186,774

 

 

167,409

 

Income before taxes

 

 

29,632

 

 

25,986

 

 

16,424

 

 

25,168

 

 

 

21,990

 

 

97,210

 

 

114,330

 

Income tax expense

 

 

5,796

 

 

5,185

 

 

3,258

 

 

4,851

 

 

 

4,578

 

 

19,090

 

 

22,529

 

Net income

 

$

23,836

 

$

20,801

 

$

13,166

 

$

20,317

 

 

$

17,412

 

$

78,120

 

$

91,801

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.82

 

$

0.71

 

$

0.45

 

$

0.69

 

 

$

0.59

 

$

2.66

 

$

3.12

 

Diluted

 

$

0.81

 

$

0.71

 

$

0.45

 

$

0.68

 

 

$

0.59

 

$

2.64

 

$

3.11

 

Dividends declared per share

 

$

0.21

 

$

0.21

 

$

0.21

 

$

0.20

 

 

$

0.20

 

$

0.83

 

$

0.80

 

Weighted average shares outstanding

 

 

29,251,293

 

 

29,290,829

 

 

29,490,154

 

 

29,542,467

 

 

 

29,471,304

 

 

29,392,606

 

 

29,402,845

 

Period end shares outstanding

 

 

29,271,915

 

 

29,242,451

 

 

29,365,775

 

 

29,636,425

 

 

 

29,500,542

 

 

29,271,915

 

 

29,500,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Univest Financial Corporation

Consolidated Selected Financial Data (Unaudited)

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended,

 

For the twelve months ended,

Profitability Ratios (annualized)

12/31/22

 

09/30/22

 

06/30/22

 

03/31/22

 

12/31/21

 

12/31/22

 

12/31/21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.35

%

 

 

1.21

%

 

 

0.76

%

 

 

1.17

%

 

 

0.97

%

 

 

1.12

%

 

 

1.38

%

Return on average assets, excluding restructuring

 

1.36

%

 

 

1.21

%

 

 

0.76

%

 

 

1.17

%

 

 

0.97

%

 

 

1.13

%

 

 

1.38

%

charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average shareholders’ equity

 

12.33

%

 

 

10.67

%

 

 

6.85

%

 

 

10.64

%

 

 

9.06

%

 

 

10.13

%

 

 

12.50

%

Return on average shareholders’ equity, excluding

 

12.40

%

 

 

10.67

%

 

 

6.85

%

 

 

10.64

%

 

 

9.06

%

 

 

10.14

%

 

 

12.50

%

restructuring charges (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity (1)(3)

 

16.23

%

 

 

14.06

%

 

 

9.10

%

 

 

14.04

%

 

 

11.93

%

 

 

13.36

%

 

 

16.55

%

Return on average tangible common equity, excluding

 

16.33

%

 

 

14.06

%

 

 

9.10

%

 

 

14.04

%

 

 

11.93

%

 

 

13.39

%

 

 

16.55

%

restructuring charges (1)(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (FTE)

 

3.76

%

 

 

3.67

%

 

 

3.19

%

 

 

2.89

%

 

 

2.86

%

 

 

3.38

%

 

 

3.06

%

Efficiency ratio (2)

 

56.9

%

 

 

60.6

%

 

 

66.6

%

 

 

67.0

%

 

 

64.3

%

 

 

62.4

%

 

 

60.9

%

Efficiency ratio, excluding restructuring charges (1)(2)

 

56.7

%

 

 

60.6

%

 

 

66.6

%

 

 

67.0

%

 

 

64.3

%

 

 

62.4

%

 

 

60.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalization Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared to net income

 

25.8

%

 

 

29.6

%

 

 

47.1

%

 

 

29.1

%

 

 

33.9

%

 

 

31.2

%

 

 

25.6

%

Shareholders’ equity to assets (Period End)

 

10.75

%

 

 

10.92

%

 

 

11.40

%

 

 

10.89

%

 

 

10.86

%

 

 

10.75

%

 

 

10.86

%

Tangible common equity to tangible assets (1)

 

8.49

%

 

 

8.55

%

 

 

8.97

%

 

 

8.58

%

 

 

8.56

%

 

 

8.49

%

 

 

8.56

%

Common equity book value per share

$

26.53

 

 

$

25.79

 

 

$

26.01

 

 

$

26.11

 

 

$

26.23

 

 

$

26.53

 

 

$

26.23

 

Tangible common equity book value per share (1)

$

20.42

 

 

$

19.67

 

 

$

19.91

 

 

$

20.06

 

 

$

20.14

 

 

$

20.42

 

 

$

20.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital Ratios (Period End)

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

9.81

%

 

 

9.87

%

 

 

9.45

%

 

 

9.35

%

 

 

9.13

%

 

 

9.81

%

 

 

9.13

%

Common equity tier 1 risk-based capital ratio

 

10.37

%

 

 

10.51

%

 

 

10.62

%

 

 

11.07

%

 

 

11.08

%

 

 

10.37

%

 

 

11.08

%

Tier 1 risk-based capital ratio

 

10.37

%

 

 

10.51

%

 

 

10.62

%

 

 

11.07

%

 

 

11.08

%

 

 

10.37

%

 

 

11.08

%

Total risk-based capital ratio

 

13.67

%

 

 

13.10

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