Email page PDF view Print view Email Alert Social media sharing

Univest Financial Corporation Reports First Quarter Results

Company Release - 4/24/2019 4:15 PM ET

SOUDERTON, Pa., April 24, 2019 (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, 2019 of $16.1 million, or $0.55 diluted earnings per share, compared to net income of $12.9 million, or $0.44 diluted earnings per share, for the quarter ended March 31, 2018. 

The first quarter of 2018 included restructuring costs related to financial center closures of $451 thousand, net of tax, or $0.02 of diluted earnings per share. There were no restructuring costs during the quarter ended March 31, 2019. Excluding these restructuring costs, earnings per share increased 19.6% for the first quarter of 2019 compared to the first quarter of 2018.

Loans
Gross loans and leases increased $61.3 million, or 6.1% (annualized), from December 31, 2018 and $378.0 million, or 10.2%, from March 31, 2018. The growth in loans from December 31, 2018 and March 31, 2018 was primarily in commercial real estate and residential real estate loans.

Deposits
Total deposits increased $117.2 million, or 12.1% (annualized), from December 31, 2018 and increased $505.9 million, or 14.5%, from March 31, 2018. The growth in deposits from December 31, 2018 was primarily due to increases in commercial and consumer deposits. The growth in deposits from March 31, 2018 was primarily due to increases in commercial, public funds and consumer time deposits.

Net Interest Income and Margin
Net interest income of $41.5 million for the first quarter of 2019 increased $4.3 million, or 11.4%, from the first quarter of 2018. The increase in net interest income for the first quarter of 2019 compared to the first quarter of 2018 was primarily due to the growth in loans during the last year as well as modest net interest margin expansion.

Net interest margin, on a tax-equivalent basis, was 3.75% for the first quarter of 2019, compared to 3.72% for both the fourth quarter of 2018 and the first quarter of 2018. The favorable impact of purchase accounting accretion was one basis point for the quarter ended March 31, 2019 compared to one basis point for the quarter ended December 31, 2018 and two basis points for the quarter ended March 31, 2018. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.74% for the quarter ended March 31, 2019 compared to 3.71% for the quarter ended December 31, 2018 and 3.70% for the quarter ended March 31, 2018.

Noninterest Income
Noninterest income for the quarter ended March 31, 2019 was $16.3 million, an increase of $715 thousand, or 4.6%, from the first quarter of 2018. Investment advisory commission and fee income increased $106 thousand, or 2.9%, for the quarter ended March 31, 2019, primarily due to new customer relationships, which was partially offset by market declines in the fourth quarter of 2018. Insurance commission and fee income increased $256 thousand, or 5.2%, for the quarter ended March 31, 2019, primarily due to an increase in premiums for group life and health and commercial lines and an increase in contingent commission income of $111 thousand, which was $1.5 million for the quarter ended March 31, 2019 compared to $1.4 million for the quarter ended March 31, 2018. Contingent commission income is largely recognized in the first quarter of the year. Service charges on deposit accounts increased $108 thousand, or 8.1%, for the quarter ended March 31, 2019, primarily due to increased fee income on cash management accounts. Other service fee income increased $98 thousand, or 4.5%, for the quarter ended March 31, 2019, primarily due to increases in debit card interchange income, wire transfer fees and human resource consulting services within the insurance line of business. BOLI income increased $283 thousand, or 42.3%, for the quarter ended March 31, 2019, primarily due to an increase in value of our non-qualified annuity portfolio of $249 thousand in the first quarter of 2019 compared to a decrease of $29 thousand in the first quarter of 2018. The value of the non-qualified annuity portfolio declined $287 thousand in the fourth quarter of 2018. 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 increased $215 thousand, or 173.4%, for the quarter ended March 31, 2019, primarily due to fees on risk participation agreements of $264 thousand related to increased customer activity compared to fees of $4 thousand in the same period of the prior year.

These increases were partially offset by a decrease in net gain on mortgage banking activities of $233 thousand, or 32.5%, for the quarter ended March 31, 2019, primarily due to the Bank retaining, on balance-sheet, a higher percentage of its mortgage originations, as well as a contraction in margins to remain price competitive. Such on balance-sheet loans are predominantly hybrid adjustable rate mortgages. Trust fee income decreased $109 thousand, or 5.5%, for the quarter ended March 31, 2019 compared to March 31, 2018, primarily due to a decrease in activity based trust estate fees and assets under management.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2019 was $35.6 million, an increase of $432 thousand, or 1.2%, compared to the first quarter of 2018. Salaries, benefits and commissions increased $917 thousand, or 4.4%, primarily attributable to additional staff hired to support revenue generation across all business lines, expansion of our commercial lending group in Lancaster County and annual merit increases. During the quarter ended March 31, 2019, Univest hired a team of eight commercial lenders and support staff which will focus on increasing Univest’s presence in Western Lancaster and York Counties.  Data processing expense increased $282 thousand, or 12.6%, for the quarter ended March 31, 2019, primarily due to continued investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Other expense increased $264 thousand, or 5.1%, for the quarter ended March 31, 2019, primarily due to increases in interchange expense and corporate development expense.

These increases were partially offset by a decrease in net occupancy and equipment expense totaling $179 thousand, or 4.7%, primarily due to the closure of three financial service locations during April 2018. Intangibles expense decreased $186 thousand, or 30.4%, due to run-off of the intangible assets. 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 during the first quarter of 2019.

Asset Quality and Provision for Loan and Lease Losses
Nonperforming assets were $27.4 million at March 31, 2019, compared to $28.1 million at December 31, 2018 and $32.9 million at March 31, 2018.

Net loan and lease charge-offs were $447 thousand during the first quarter of 2019. The provision for loan and lease losses was $2.7 million for the first quarter of 2019 compared to $2.1 million for the first quarter of 2018. The provision includes the impact of downgrading one $14.6 million shared national credit loan from pass to substandard. Incremental provision and general reserve recorded during the quarter was $1.5 million for this loan.

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 March 31, 2019, compared to 0.81% at December 31, 2018 and 0.73% at March 31, 2018.

Tax Provision  
The effective income tax rate was 17.9% for the quarter March 31, 2019 compared to an effective income tax rate of 18.0% for the quarter ended March 31, 2018. The Corporation's effective income tax rate for the quarter ended March 31, 2019 was favorably impacted by discrete tax benefits. Excluding these items, the effective tax rate was 18.2% for the quarter ended March 31, 2019.

Dividend
On February 27, 2019, Univest declared a quarterly cash dividend of $0.20 per share, payable on April 1, 2019. This represented a 3.20% 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 2019 results on Thursday, April 25, 2019 at 9:00 a.m. EDT. Participants may preregister at http://dpregister.com/10130260. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through May 25, 2019 by dialing 1-877-344-7529; using Conference ID: 10130260.

About Univest Financial Corporation 
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $5.0 billion in assets and $3.6 billion in assets under management and supervision through its Wealth Management lines of business at March 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 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 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)
March 31, 2019
(Dollars in thousands)          
           
Balance Sheet (Period End) 03/31/19 12/31/18 09/30/18 06/30/18 03/31/18
Assets $5,035,527  $4,984,347  $4,801,998  $4,749,181  $4,613,959 
Investment securities  466,883   473,306   447,339   446,933   462,252 
Loans held for sale  921   1,754   106   1,778   687 
Loans and leases held for investment, gross  4,067,879   4,006,574   3,866,169   3,818,398   3,689,888 
Allowance for loan and lease losses  31,602   29,364   27,371   25,652   23,410 
Loans and leases held for investment, net  4,036,277   3,977,210   3,838,798   3,792,746   3,666,478 
Total deposits  4,003,153   3,885,933   3,820,048   3,620,786   3,497,293 
Noninterest-bearing deposits  1,103,674   1,055,919   1,047,081   1,055,479   1,002,021 
NOW, money market and savings  2,260,795   2,159,937   2,101,484   1,970,912   1,974,769 
Time deposits  638,684   670,077   671,483   594,395   520,503 
Borrowings  313,083   429,672   326,709   481,862   466,510 
Shareholders' equity  637,606   624,133   614,242   605,294   606,719 
           
           
Balance Sheet (Average) For the three months ended,
  03/31/19 12/31/18 09/30/18 06/30/18 03/31/18
Assets $5,004,253  $4,890,519  $4,817,321  $4,682,827  $4,555,977 
Investment securities  470,196   464,684   453,422   450,375   457,926 
Loans and leases, gross  4,017,362   3,894,298   3,832,295   3,743,195   3,634,510 
Deposits  3,931,199   3,938,378   3,792,627   3,563,956   3,484,044 
Shareholders' equity  631,574   619,204   611,803   611,667   605,973 
           
           
Asset Quality Data (Period End)           
  03/31/19 12/31/18 09/30/18 06/30/18 03/31/18
Nonaccrual loans and leases, including nonaccrual troubled debt restructured          
loans and leases $25,952  $26,208  $27,559  $30,148  $27,694 
Accruing loans and leases 90 days or more past due  636   192   1,224   150   2,295 
Accruing troubled debt restructured loans and leases  270   542   766   790   1,032 
Total nonperforming loans and leases  26,858   26,942   29,549   31,088   31,021 
Other real estate owned  540   1,187   1,433   1,742   1,843 
Total nonperforming assets  27,398   28,129   30,982   32,830   32,864 
Nonaccrual loans and leases / Loans and leases held for investment  0.64%  0.65%  0.71%  0.79%  0.75%
Nonperforming loans and leases / Loans and leases held for investment  0.66%  0.67%  0.76%  0.81%  0.84%
Nonperforming assets / Total assets  0.54%  0.56%  0.65%  0.69%  0.71%
           
Allowance for loan and lease losses  31,602   29,364   27,371   25,652   23,410 
Allowance for loan and lease losses / Loans and leases held for investment  0.78%  0.73%  0.71%  0.67%  0.63%
Allowance for loan and lease losses / Loans and leases held for investment  0.85%  0.81%  0.79%  0.76%  0.73%
(excluding acquired loans at period-end)          
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment  121.77%  112.04%  99.32%  85.09%  84.53%
Allowance for loan and lease losses / Nonperforming loans and leases held for investment 117.66%  108.99%  92.63%  82.51%  75.47%
Acquired credit impaired loans $693  $695  $900  $998  $1,525 
           
  For the three months ended,
  03/31/19 12/31/18 09/30/18 06/30/18 03/31/18
Net loan and lease charge-offs (recoveries) $447  $(1,890) $1,026  $13,167  $198 
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases  0.05%  (0.19%)  0.11%  1.41%  0.02%


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2019
(Dollars in thousands, except per share data)          
  For the three months ended,
For the period: 03/31/19 12/31/18 09/30/18 06/30/18 03/31/18
Interest income $52,364 $51,239 $49,255 $46,460  $43,534
Interest expense  10,841  9,862  8,832  7,470   6,262
Net interest income  41,523  41,377  40,423  38,990   37,272
Provision for loan and lease losses  2,685  103  2,745  15,409   2,053
Net interest income after provision  38,838  41,274  37,678  23,581   35,219
Noninterest income:          
Trust fee income  1,887  1,882  1,960  2,044   1,996
Service charges on deposit accounts  1,435  1,516  1,454  1,335   1,327
Investment advisory commission and fee income  3,789  3,852  3,785  3,778   3,683
Insurance commission and fee income  5,144  3,415  3,643  3,712   4,888
Other service fee income  2,267  2,448  2,284  2,431   2,169
Bank owned life insurance income  952  430  865  1,210   669
Net gain on sales of investment securities  1  -  -  -   10
Net gain on mortgage banking activities  483  713  754  942   716
Other income (loss)  339  160  116  (138)  124
Total noninterest income  16,297  14,416  14,861  15,314   15,582
Noninterest expense:          
Salaries, benefits and commissions  21,564  19,576  20,321  20,065   20,647
Net occupancy  2,611  2,455  2,515  2,533   2,757
Equipment  990  1,014  1,042  1,067   1,023
Data processing  2,514  2,352  2,339  2,091   2,232
Professional fees  1,264  1,335  1,370  1,331   1,355
Marketing and advertising  316  432  461  526   381
Deposit insurance premiums  452  449  544  452   391
Intangible expenses  426  481  479  594   612
Restructuring charges  -  -  -  -   571
Other expense  5,420  5,302  5,300  5,688   5,156
Total noninterest expense  35,557  33,396  34,371  34,347   35,125
Income before taxes  19,578  22,294  18,168  4,548   15,676
Income tax expense  3,499  3,922  3,204  191   2,826
Net income $16,079 $18,372 $14,964 $4,357  $12,850
Net income per share:          
Basic $0.55 $0.63 $0.51 $0.15  $0.44
Diluted $0.55 $0.63 $0.51 $0.15  $0.44
Dividends declared per share $0.20 $0.20 $0.20 $0.20  $0.20
Weighted average shares outstanding  29,277,339  29,319,664  29,402,405  29,403,946   29,354,887
Period end shares outstanding  29,272,502  29,270,852  29,407,076  29,406,450   29,391,934
           


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2019
              
              
              
     For the three months ended,
Profitability Ratios (annualized)  03/31/19 12/31/18 09/30/18 06/30/18 03/31/18
              
Return on average assets   1.30%   1.49%   1.23%   0.37%   1.14% 
Return on average assets, excluding restructuring charges (1), (2) 1.30%   1.49%   1.23%   0.37%   1.18% 
Return on average shareholders' equity  10.32%   11.77%   9.70%   2.86%   8.60% 
Return on average shareholders' equity, excluding 10.32%   11.77%   9.70%   2.86%   8.90% 
restructuring charges (1), (2)           
Return on average tangible common equity, excluding 14.36%   16.52%   13.70%   4.04%   12.65% 
restructuring charges (1), (2)           
Net interest margin (FTE)   3.75%   3.72%   3.71%   3.73%   3.72% 
Efficiency ratio (3)    60.5%   59.0%   61.2%   62.1%   65.4% 
Efficiency ratio, excluding restructuring charges (1), (3), (4) 60.5%   59.0%   61.2%   62.1%   64.3% 
              
Capitalization Ratios            
              
Dividends declared to net income   36.4%   31.9%   39.3%   135.0%   45.7% 
Shareholders' equity to assets (Period End)  12.66%   12.52%   12.79%   12.75%   13.15% 
Tangible common equity to tangible assets (1)  9.47%   9.29%   9.43%   9.33%   9.64% 
Common equity book value per share $21.78  $21.32  $20.89  $20.58  $20.64 
Tangible common equity book value per share (1)$15.72  $15.25  $14.83  $14.51  $14.54 
              
Regulatory Capital Ratios  (Period End)           
Tier 1 leverage ratio    10.10%   10.13%   10.07%   10.19%   10.47% 
Common equity tier 1 risk-based capital ratio  10.93%   10.88%   10.99%   10.89%   11.16% 
Tier 1 risk-based capital ratio   10.93%   10.88%   10.99%   10.89%   11.16% 
Total risk-based capital ratio   13.77%   13.70%   13.87%   13.76%   14.04% 
              
              
(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$637,606  $624,133  $614,242  $605,294  $606,719 
 Goodwill (172,559)  (172,559)  (172,559)  (172,559)  (172,559)
 Other intangibles (i)  (4,805)  (5,222)  (5,690)  (6,159)  (6,741)
 (d) Tangible common equity$460,242  $446,352  $435,993  $426,576  $427,419 
              
 (e) Total assets$5,035,527  $4,984,347  $4,801,998  $4,749,181  $4,613,959 
 Goodwill (172,559)  (172,559)  (172,559)  (172,559)  (172,559)
 Other intangibles (i)  (4,805)  (5,222)  (5,690)  (6,159)  (6,741)
 (f) Tangible assets$4,858,163  $4,806,566  $4,623,749  $4,570,463  $4,434,659 
              
 (g) Average shareholders' equity$631,574  $619,204  $611,803  $611,667  $605,973 
 Average goodwill (172,559)  (172,559)  (172,559)  (172,559)  (172,559)
 Average other intangibles (i)  (5,031)  (5,473)  (5,947)  (6,468)  (7,064)
 (h) Average tangible common equity$453,984  $441,172  $433,297  $432,640  $426,350 
              
 (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 BasisMarch 31, 2019 December 31, 2018 
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$42,566 $2692.56%$89,784 $4802.12%
U.S. government obligations 20,039  821.66  22,307  891.58 
Obligations of state and political subdivisions 64,167  5463.45  65,134  5533.37 
Other debt and equity securities 385,990  2,6312.76  377,243  2,4942.62 
Federal funds sold and other earning assets 32,360  5867.34  30,175  4686.15 
Total interest-earning deposits, investments, federal funds sold and other earning assets 545,122  4,1143.06  584,643  4,0842.77 
         
Commercial, financial, and agricultural loans 811,071  10,7585.38  782,666  10,3225.23 
Real estate—commercial and construction loans 1,822,276  21,5594.80  1,766,543  21,3094.79 
Real estate—residential loans 938,299  11,4124.93  910,620  11,1024.84 
Loans to individuals 32,524  5186.46  31,902  5116.35 
Municipal loans and leases 332,299  3,2213.93  323,904  3,1603.87 
Lease financings 80,893  1,4357.19  78,663  1,4077.10 
Gross loans and leases 4,017,362  48,9034.94  3,894,298  47,8114.87 
Total interest-earning assets 4,562,484  53,0174.71  4,478,941  51,8954.60 
Cash and due from banks 44,714     47,429    
Reserve for loan and lease losses (30,111)    (28,499)   
Premises and equipment, net 59,179     60,448    
Operating lease right-of-use assets 37,129     -    
Other assets 330,858     332,200    
Total assets$5,004,253    $4,890,519    
         
Liabilities:        
Interest-bearing checking deposits$478,927 $7140.60%$491,749 $7080.57%
Money market savings 918,487  3,7481.65  889,165  3,3721.50 
Regular savings 789,033  8140.42  768,825  6370.33 
Time deposits 655,303  2,9271.81  676,256  2,9581.74 
Total time and interest-bearing deposits 2,841,750  8,2031.17  2,825,995  7,6751.08 
         
Short-term borrowings 117,664  6382.20  56,215  2331.64 
Long-term debt 145,299  7392.06  140,597  6941.96 
Subordinated notes 94,603  1,2615.41  94,542  1,2605.29 
Total borrowings 357,566  2,6382.99  291,354  2,1872.98 
Total interest-bearing liabilities 3,199,316  10,8411.37  3,117,349  9,8621.26 
Noninterest-bearing deposits 1,089,449     1,112,383    
Operating lease liabilities 40,090     -    
Accrued expenses and other liabilities 43,824     41,583    
Total liabilities 4,372,679     4,271,315    
         
Shareholders' Equity:        
Common stock 157,784     157,784    
Additional paid-in capital 292,746     292,342    
Retained earnings and other equity 181,044     169,078    
Total shareholders' equity 631,574     619,204    
Total liabilities and shareholders' equity$5,004,253    $4,890,519    
Net interest income $42,176   $42,033  
         
Net interest spread  3.34   3.34 
Effect of net interest-free funding sources  0.41   0.38 
Net interest margin  3.75%  3.72%
Ratio of average interest-earning assets to average interest-bearing liabilities 142.61%    143.68%   
         
Note 1:  In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures 
determined by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered 
a substitute for GAAP basis financial information and measures. Management believes the presentation of the non-GAAP financial 
information and measures provide useful information that is essential to a proper understanding of the financial results of the Corporation.
         
Note 2:  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 March 31, 2019 and December 31, 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 Three Months Ended March 31,   
Tax Equivalent Basis  2019    2018  
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$42,566 $2692.56%$19,184 $761.61%
U.S. government obligations 20,039  821.66  23,921  941.59 
Obligations of state and political subdivisions 64,167  5463.45  74,554  5933.23 
Other debt and equity securities 385,990  2,6312.76  359,451  2,0952.36 
Federal funds sold and other earning assets 32,360  5867.34  29,057  5047.03 
Total interest-earning deposits, investments, federal funds sold and other earning assets 545,122  4,1143.06  506,167  3,3622.69 
         
Commercial, financial, and agricultural loans 811,071  10,7585.38  782,200  8,9004.61 
Real estate—commercial and construction loans 1,822,276  21,5594.80  1,600,394  17,6184.46 
Real estate—residential loans 938,299  11,4124.93  837,495  9,6754.69 
Loans to individuals 32,524  5186.46  27,960  4135.99 
Municipal loans and leases 332,299  3,2213.93  311,752  2,8923.76 
Lease financings 80,893  1,4357.19  74,709  1,3447.30 
Gross loans and leases 4,017,362  48,9034.94  3,634,510  40,8424.56 
Total interest-earning assets 4,562,484  53,0174.71  4,140,677  44,2044.33 
Cash and due from banks 44,714     42,506    
Reserve for loan and lease losses (30,111)    (22,022)   
Premises and equipment, net 59,179     61,738    
Operating lease right-of-use assets 37,129     -    
Other assets 330,858     333,078    
Total assets$5,004,253    $4,555,977    
         
Liabilities:        
Interest-bearing checking deposits$478,927 $7140.60%$425,027 $2920.28%
Money market savings 918,487  3,7481.65  658,367  1,3430.83 
Regular savings 789,033  8140.42  834,375  5570.27 
Time deposits 655,303  2,9271.81  541,478  1,4991.12 
Total time and interest-bearing deposits 2,841,750  8,2031.17  2,459,247  3,6910.61 
         
Short-term borrowings 117,664  6382.20  175,824  6451.49 
Long-term debt 145,299  7392.06  155,765  6651.73 
Subordinated notes 94,603  1,2615.41  94,359  1,2615.42 
Total borrowings 357,566  2,6382.99  425,948  2,5712.45 
Total interest-bearing liabilities 3,199,316  10,8411.37  2,885,195  6,2620.88 
Noninterest-bearing deposits 1,089,449     1,024,797    
Operating lease liabilities 40,090     -    
Accrued expenses and other liabilities 43,824     40,012    
Total liabilities 4,372,679     3,950,004    
         
Shareholders' Equity:        
Common stock 157,784     157,784    
Additional paid-in capital 292,746     290,209    
Retained earnings and other equity 181,044     157,980    
Total shareholders' equity 631,574     605,973    
Total liabilities and shareholders' equity$5,004,253    $4,555,977    
Net interest income $42,176   $37,942  
         
Net interest spread  3.34   3.45 
Effect of net interest-free funding sources  0.41   0.27 
Net interest margin  3.75%  3.72%
Ratio of average interest-earning assets to average interest-bearing liabilities 142.61%    143.51%   
         
Note 1:  In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures 
determined by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered 
a substitute for GAAP basis financial information and measures. Management believes the presentation of the non-GAAP financial 
information and measures provide useful information that is essential to a proper understanding of the financial results of the Corporation.
         
Note 2:  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 March 31, 2019 and 2018 have been calculated
using the Corporation’s federal applicable rate of 21.0%.       
CONTACT: 
Roger Deacon 
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2455, DeaconR@univest.net

Univest Corporation

Source: Univest Financial Corporation
Copyright 2019, © S&P Global Market Intelligence  Terms of Use