SOUDERTON, Pa., July 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 June 30, 2019 of $16.5 million, or $0.56 diluted earnings per share, compared to net income of $4.4 million, or $0.15 diluted earnings per share, for the quarter ended June 30, 2018. Net income for the six months ended June 30, 2019 was $32.5 million, or $1.11 diluted earnings per share, compared to net income of $17.2 million, or $0.58 diluted earnings per share, for the six months ended June 30, 2018.
The financial results for the three and six months ended June 30, 2018 included a pre-tax charge to the provision for loan and lease losses of $12.7 million (after-tax charge of $10.1 million), which represented $0.34 diluted earnings per share in each period, related to fraudulent activities by employees of a borrower. In addition, the three and six months ended June 30, 2018 included a tax-free bank owned life insurance (BOLI) death benefit of $446 thousand, which represented $0.02 diluted earnings per share for each period. The six months ended June 30, 2018 included restructuring costs related to financial center closures of $451 thousand, net of tax, recognized in the first quarter of 2018, which represented $0.02 diluted earnings per share.
Loans
Gross loans and leases increased $100.0 million, or 9.8% (annualized), from March 31, 2019 and $161.3 million, or 8.1% (annualized), from December 31, 2018 and $349.5 million, or 9.2%, from June 30, 2018 primarily due to growth in commercial real estate and residential real estate loans.
Deposits
Total deposits increased $119.0 million, or 11.9% (annualized), from March 31, 2019 and $236.2 million, or 12.2% (annualized), from December 31, 2018 and $501.3 million, or 13.8%, from June 30, 2018. The growth in deposits from March 31, 2019 and December 31, 2018 was primarily due to increases in commercial, public funds and consumer deposits. The growth in deposits from June 30, 2018 was primarily due to increases in commercial and public funds deposits.
Net Interest Income and Margin
Net interest income of $84.2 million for the six months ended June 30, 2019 increased $7.9 million, or 10.4%, from the six months ended June 30, 2018. The increase in net interest income for the six months ended June 30, 2019 compared to the same period in 2018 was primarily due to the growth in loans during the last year.
Net interest margin, on a tax-equivalent basis, was 3.67% for the second quarter of 2019, compared to 3.75% for the first quarter of 2019 and 3.73% for the second quarter of 2018. The favorable impact of purchase accounting accretion was one basis point for the quarters ended June 30, 2019 and March 31, 2019 and three basis points for the quarter ended June 30, 2018. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.66% for the quarter ended June 30, 2019 compared to 3.74% for the quarter ended March 31, 2019 and 3.70% for the quarter ended June 30, 2018. During the quarter ended June 30, 2019, excess liquidity reduced net interest margin by approximately 5 basis points. This excess liquidity was primarily driven by strong deposit balance growth throughout the quarter.
Noninterest Income
Noninterest income for the quarter ended June 30, 2019 was $16.4 million, an increase of $1.0 million, or 6.8%, from the second quarter of 2018. Noninterest income for the six months ended June 30, 2019 was $32.7 million, an increase of $1.8 million, or 5.7%, from the comparable period in the prior year.
Investment advisory commission and fee income increased $277 thousand, or 7.3%, for the quarter and $383 thousand, or 5.1%, for the six months ended June 30, 2019, primarily due to new customer relationships. Insurance commission and fee income increased $229 thousand, or 6.2%, for the quarter and $485 thousand, or 5.6%, for the six months ended June 30, 2019, primarily due to an increase in premiums for commercial lines and group life and health and an increase in contingent commission income of $120 thousand for the six months ended June 30, 2019. Service charges on deposit accounts increased $112 thousand, or 8.4%, for the quarter and $220 thousand, or 8.3%, for the six months ended June 30, 2019, primarily due to increased fee income on commercial cash management accounts. Other service fee income increased $159 thousand, or 6.5%, for the quarter and $257 thousand, or 5.6%, for the six months ended June 30, 2019, primarily due to increases in debit card interchange income.
Other income increased $861 thousand for the quarter and $1.1 million for the six months ended June 30, 2019. Fees on risk participation agreements increased $284 thousand for the quarter and $543 thousand for the six months ended June 30, 2019 driven by increased customer activity. Gain on sale of small business administration (SBA) loans increased $259 thousand for the quarter and $313 thousand for the six months ended June 30, 2019 related to increased SBA loan sale activity. Net loss on valuations and sales of other real estate owned was $55 thousand for the six months ended June 30, 2019 compared to $482 thousand for the three and six months ended June 30, 2018.
These increases were partially offset by a decrease in BOLI income of $467 thousand, or 38.6%, for the quarter and $184 thousand, or 9.8%, for the six months ended June 30, 2019. These decreases were primarily due to proceeds from BOLI death benefits of $446 thousand recognized in the second quarter of 2018. The net gain on mortgage banking activities decreased $146 thousand, or 15.5%, for the quarter and $379 thousand, or 22.9% for the six months ended June 30, 2019, primarily due to contraction in margins to remain price competitive.
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2019 was $36.8 million, an increase of $2.4 million, or 7.1%, compared to the second quarter of 2018. Noninterest expense for the six months ended June 30, 2019 was $72.3 million, an increase of $2.9 million, or 4.1%, from the comparable period in the prior year.
Salaries, benefits and commissions increased $2.0 million, or 10.1%, for the quarter and $2.9 million, or 7.2%, for the six months ended June 30, 2019, primarily attributable to additional staff hired to support revenue generation across all business lines, expansion of our commercial lending groups and annual merit increases. During the first quarter of 2019, Univest hired a team of eight commercial lenders and support staff to focus on increasing Univest’s presence in Western Lancaster and York Counties. During the second quarter of 2019, a team of three commercial lenders was hired to help expand Univest’s presence in the New Jersey suburbs of Philadelphia. Data processing expense increased $536 thousand, or 25.6%, for the quarter and $818 thousand, or 18.9%, for the six months ended June 30, 2019, primarily due to continued investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions.
These increases were partially offset by a decrease in intangibles expense of $177 thousand, or 29.8%, for the quarter and $363 thousand, or 30.1%, for the six months ended June 30, 2019 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. Excluding restructuring costs, noninterest expense for six months ended June 30, 2019 increased $3.4 million, or 5.0%, from the comparable period in 2018.
Asset Quality and Provision for Loan and Lease Losses
Nonperforming assets were $27.1 million at June 30, 2019, compared to $28.1 million at December 31, 2018 and $32.8 million at June 30, 2018.
Net loan and lease charge-offs were $1.1 million during the second quarter of 2019 and $1.5 million for the six months ended June 30, 2019. The provision for loan and lease losses was $2.1 million for the second quarter of 2019 and $4.8 million for the six months ended June 30, 2019. Net loan and lease charge-offs were $13.2 million during the second quarter of 2018 and $13.4 million for the six months ended June 30, 2018. The provision for loan and lease losses was $15.4 million for the second quarter of 2018 and $17.5 million for the six months ended June 30, 2018. Both net loan and lease charge-offs and the provision for loan and lease losses during 2018 included the previously discussed $12.7 million commercial loan charge-off.
The allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding covered loans acquired in the Fox Chase and Valley Green Bank acquisitions, which were recorded at fair value as of the acquisition date, was 0.85% at June 30, 2019, compared to 0.81% at December 31, 2018 and 0.76% at June 30, 2018.
Tax Provision
The effective income tax rate was 18.2% for the quarter June 30, 2019 compared to an effective income tax rate of 4.2% for the quarter ended June 30, 2018. The effective income tax rate was 18.0% for the six months ended June 30, 2019 compared to an effective income tax rate of 14.9% for the six months ended June 30, 2018. The Corporation's effective income tax rate for the six months ended June 30, 2019 was favorably impacted by discrete tax benefits. Excluding these items, the effective tax rate was 18.3% for the six months ended June 30, 2019.
Dividend
On May 20, 2019, Univest declared a quarterly cash dividend of $0.20 per share, payable on July 1, 2019. This represented a 3.06% 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 second quarter 2019 results on Thursday, July 25, 2019 at 9:00 a.m. EDT. Participants may preregister at http://dpregister.com/10133126. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through August 25, 2019 by dialing 1-877-344-7529; using Conference ID: 10133126.
About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $5.2 billion in assets and $3.7 billion in assets under management and supervision through its Wealth Management lines of business at June 30, 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) | ||||||||||||||||||||||||||||
| June 30, 2019 | ||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| Balance Sheet (Period End) | 06/30/19 | 03/31/19 | 12/31/18 | 09/30/18 | 06/30/18 | |||||||||||||||||||||||
| Assets | $ | 5,154,298 | $ | 5,035,527 | $ | 4,984,347 | $ | 4,801,998 | $ | 4,749,181 | ||||||||||||||||||
| Investment securities | 468,833 | 466,883 | 473,306 | 447,339 | 446,933 | |||||||||||||||||||||||
| Loans held for sale | 1,498 | 921 | 1,754 | 106 | 1,778 | |||||||||||||||||||||||
| Loans and leases held for investment, gross | 4,167,904 | 4,067,879 | 4,006,574 | 3,866,169 | 3,818,398 | |||||||||||||||||||||||
| Allowance for loan and lease losses | 32,600 | 31,602 | 29,364 | 27,371 | 25,652 | |||||||||||||||||||||||
| Loans and leases held for investment, net | 4,135,304 | 4,036,277 | 3,977,210 | 3,838,798 | 3,792,746 | |||||||||||||||||||||||
| Total deposits | 4,122,110 | 4,003,153 | 3,885,933 | 3,820,048 | 3,620,786 | |||||||||||||||||||||||
| Noninterest-bearing deposits | 1,166,301 | 1,103,674 | 1,055,919 | 1,047,081 | 1,055,479 | |||||||||||||||||||||||
| NOW, money market and savings | 2,246,372 | 2,260,795 | 2,159,937 | 2,101,484 | 1,970,912 | |||||||||||||||||||||||
| Time deposits | 709,437 | 638,684 | 670,077 | 671,483 | 594,395 | |||||||||||||||||||||||
| Borrowings | 304,241 | 313,083 | 429,672 | 326,709 | 481,862 | |||||||||||||||||||||||
| Shareholders' equity | 651,670 | 637,606 | 624,133 | 614,242 | 605,294 | |||||||||||||||||||||||
| Balance Sheet (Average) | For the three months ended, | For the six months ended, | ||||||||||||||||||||||||||
| 06/30/19 | 03/31/19 | 12/31/18 | 09/30/18 | 06/30/18 | 06/30/19 | 06/30/18 | ||||||||||||||||||||||
| Assets | $ | 5,170,448 | $ | 5,004,253 | $ | 4,890,519 | $ | 4,817,321 | $ | 4,682,827 | $ | 5,087,810 | $ | 4,619,714 | ||||||||||||||
| Investment securities | 471,422 | 470,196 | 464,684 | 453,422 | 450,375 | 470,812 | 454,130 | |||||||||||||||||||||
| Loans and leases, gross | 4,123,069 | 4,017,362 | 3,894,298 | 3,832,295 | 3,743,195 | 4,070,508 | 3,689,152 | |||||||||||||||||||||
| Deposits | 4,145,411 | 3,931,199 | 3,938,378 | 3,792,627 | 3,563,956 | 4,038,897 | 3,524,221 | |||||||||||||||||||||
| Shareholders' equity | 645,538 | 631,574 | 619,204 | 611,803 | 611,667 | 638,595 | 608,835 | |||||||||||||||||||||
| Asset Quality Data (Period End) | ||||||||||||||||||||||||||||
| 06/30/19 | 03/31/19 | 12/31/18 | 09/30/18 | 06/30/18 | ||||||||||||||||||||||||
| Nonaccrual loans and leases, including nonaccrual troubled debt restructured | ||||||||||||||||||||||||||||
| loans and leases | $ | 25,147 | $ | 25,952 | $ | 26,208 | $ | 27,559 | $ | 30,148 | ||||||||||||||||||
| Accruing loans and leases 90 days or more past due | 1,379 | 636 | 192 | 1,224 | 150 | |||||||||||||||||||||||
| Accruing troubled debt restructured loans and leases | 55 | 270 | 542 | 766 | 790 | |||||||||||||||||||||||
| Total nonperforming loans and leases | 26,581 | 26,858 | 26,942 | 29,549 | 31,088 | |||||||||||||||||||||||
| Other real estate owned | 540 | 540 | 1,187 | 1,433 | 1,742 | |||||||||||||||||||||||
| Total nonperforming assets | 27,121 | 27,398 | 28,129 | 30,982 | 32,830 | |||||||||||||||||||||||
| Nonaccrual loans and leases / Loans and leases held for investment | 0.60 | % | 0.64 | % | 0.65 | % | 0.71 | % | 0.79 | % | ||||||||||||||||||
| Nonperforming loans and leases / Loans and leases held for investment | 0.64 | % | 0.66 | % | 0.67 | % | 0.76 | % | 0.81 | % | ||||||||||||||||||
| Nonperforming assets / Total assets | 0.53 | % | 0.54 | % | 0.56 | % | 0.65 | % | 0.69 | % | ||||||||||||||||||
| Allowance for loan and lease losses | 32,600 | 31,602 | 29,364 | 27,371 | 25,652 | |||||||||||||||||||||||
| Allowance for loan and lease losses / Loans and leases held for investment | 0.78 | % | 0.78 | % | 0.73 | % | 0.71 | % | 0.67 | % | ||||||||||||||||||
| Allowance for loan and lease losses / Loans and leases held for investment | 0.85 | % | 0.85 | % | 0.81 | % | 0.79 | % | 0.76 | % | ||||||||||||||||||
| (excluding acquired loans at period-end) | ||||||||||||||||||||||||||||
| Allowance for loan and lease losses / Nonaccrual loans and leases held for investment | 129.64 | % | 121.77 | % | 112.04 | % | 99.32 | % | 85.09 | % | ||||||||||||||||||
| Allowance for loan and lease losses / Nonperforming loans and leases held for investment | 122.64 | % | 117.66 | % | 108.99 | % | 92.63 | % | 82.51 | % | ||||||||||||||||||
| Acquired credit impaired loans | $ | 569 | $ | 693 | $ | 695 | $ | 900 | $ | 998 | ||||||||||||||||||
| For the three months ended, | For the six months ended, | |||||||||||||||||||||||||||
| 06/30/19 | 03/31/19 | 12/31/18 | 09/30/18 | 06/30/18 | 06/30/19 | 06/30/18 | ||||||||||||||||||||||
| Net loan and lease charge-offs (recoveries) | $ | 1,078 | $ | 447 | $ | (1,890 | ) | $ | 1,026 | $ | 13,167 | $ | 1,525 | $ | 13,365 | |||||||||||||
| Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases | 0.10 | % | 0.05 | % | (0.19 | %) | 0.11 | % | 1.41 | % | 0.08 | % | 0.73 | % | ||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||||
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||
| June 30, 2019 | |||||||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||||||
| For the three months ended, | For the six months ended, | ||||||||||||||||||||||
| For the period: | 06/30/19 | 03/31/19 | 12/31/18 | 09/30/18 | 06/30/18 | 06/30/19 | 06/30/18 | ||||||||||||||||
| Interest income | $ | 54,060 | $ | 52,364 | $ | 51,239 | $ | 49,255 | $ | 46,460 | $ | 106,424 | $ | 89,994 | |||||||||
| Interest expense | 11,425 | 10,841 | 9,862 | 8,832 | 7,470 | 22,266 | 13,732 | ||||||||||||||||
| Net interest income | 42,635 | 41,523 | 41,377 | 40,423 | 38,990 | 84,158 | 76,262 | ||||||||||||||||
| Provision for loan and lease losses | 2,076 | 2,685 | 103 | 2,745 | 15,409 | 4,761 | 17,462 | ||||||||||||||||
| Net interest income after provision | 40,559 | 38,838 | 41,274 | 37,678 | 23,581 | 79,397 | 58,800 | ||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||
| Trust fee income | 2,054 | 1,887 | 1,882 | 1,960 | 2,044 | 3,941 | 4,040 | ||||||||||||||||
| Service charges on deposit accounts | 1,447 | 1,435 | 1,516 | 1,454 | 1,335 | 2,882 | 2,662 | ||||||||||||||||
| Investment advisory commission and fee income | 4,055 | 3,789 | 3,852 | 3,785 | 3,778 | 7,844 | 7,461 | ||||||||||||||||
| Insurance commission and fee income | 3,941 | 5,144 | 3,415 | 3,643 | 3,712 | 9,085 | 8,600 | ||||||||||||||||
| Other service fee income | 2,590 | 2,267 | 2,448 | 2,284 | 2,431 | 4,857 | 4,600 | ||||||||||||||||
| Bank owned life insurance income | 743 | 952 | 430 | 865 | 1,210 | 1,695 | 1,879 | ||||||||||||||||
| Net gain on sales of investment securities | 7 | 1 | - | - | - | 8 | 10 | ||||||||||||||||
| Net gain on mortgage banking activities | 796 | 483 | 713 | 754 | 942 | 1,279 | 1,658 | ||||||||||||||||
| Other income (loss) | 723 | 339 | 160 | 116 | (138 | ) | 1,062 | (14 | ) | ||||||||||||||
| Total noninterest income | 16,356 | 16,297 | 14,416 | 14,861 | 15,314 | 32,653 | 30,896 | ||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||
| Salaries, benefits and commissions | 22,089 | 21,564 | 19,576 | 20,321 | 20,065 | 43,653 | 40,712 | ||||||||||||||||
| Net occupancy | 2,601 | 2,611 | 2,455 | 2,515 | 2,533 | 5,212 | 5,290 | ||||||||||||||||
| Equipment | 1,065 | 990 | 1,014 | 1,042 | 1,067 | 2,055 | 2,090 | ||||||||||||||||
| Data processing | 2,627 | 2,514 | 2,352 | 2,339 | 2,091 | 5,141 | 4,323 | ||||||||||||||||
| Professional fees | 1,307 | 1,264 | 1,335 | 1,370 | 1,331 | 2,571 | 2,686 | ||||||||||||||||
| Marketing and advertising | 622 | 316 | 432 | 461 | 526 | 938 | 907 | ||||||||||||||||
| Deposit insurance premiums | 430 | 452 | 449 | 544 | 452 | 882 | 843 | ||||||||||||||||
| Intangible expenses | 417 | 426 | 481 | 479 | 594 | 843 | 1,206 | ||||||||||||||||
| Restructuring charges | - | - | - | - | - | - | 571 | ||||||||||||||||
| Other expense | 5,620 | 5,420 | 5,302 | 5,300 | 5,688 | 11,040 | 10,844 | ||||||||||||||||
| Total noninterest expense | 36,778 | 35,557 | 33,396 | 34,371 | 34,347 | 72,335 | 69,472 | ||||||||||||||||
| Income before taxes | 20,137 | 19,578 | 22,294 | 18,168 | 4,548 | 39,715 | 20,224 | ||||||||||||||||
| Income tax expense | 3,669 | 3,499 | 3,922 | 3,204 | 191 | 7,168 | 3,017 | ||||||||||||||||
| Net income | $ | 16,468 | $ | 16,079 | $ | 18,372 | $ | 14,964 | $ | 4,357 | $ | 32,547 | $ | 17,207 | |||||||||
| Net income per share: | |||||||||||||||||||||||
| Basic | $ | 0.56 | $ | 0.55 | $ | 0.63 | $ | 0.51 | $ | 0.15 | $ | 1.11 | $ | 0.59 | |||||||||
| Diluted | $ | 0.56 | $ | 0.55 | $ | 0.63 | $ | 0.51 | $ | 0.15 | $ | 1.11 | $ | 0.58 | |||||||||
| Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.40 | |||||||||
| Weighted average shares outstanding | 29,287,754 | 29,277,339 | 29,319,664 | 29,402,405 | 29,403,946 | 29,282,575 | 29,379,552 | ||||||||||||||||
| Period end shares outstanding | 29,294,942 | 29,272,502 | 29,270,852 | 29,407,076 | 29,406,450 | 29,294,942 | 29,406,450 | ||||||||||||||||
| Univest Financial Corporation | |||||||||||||||||||||||||||||
| Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||||
| June 30, 2019 | |||||||||||||||||||||||||||||
| For the three months ended, | For the six months ended, | ||||||||||||||||||||||||||||
| Profitability Ratios (annualized) | 06/30/19 | 03/31/19 | 12/31/18 | 09/30/18 | 06/30/18 | 06/30/19 | 06/30/18 | ||||||||||||||||||||||
| Return on average assets | 1.28 | % | 1.30 | % | 1.49 | % | 1.23 | % | 0.37 | % | 1.29 | % | 0.75 | % | |||||||||||||||
| Return on average assets, excluding restructuring charges (1), (2) | 1.28 | % | 1.30 | % | 1.49 | % | 1.23 | % | 0.37 | % | 1.29 | % | 0.77 | % | |||||||||||||||
| Return on average shareholders' equity | 10.23 | % | 10.32 | % | 11.77 | % | 9.70 | % | 2.86 | % | 10.28 | % | 5.70 | % | |||||||||||||||
| Return on average shareholders' equity, excluding | 10.23 | % | 10.32 | % | 11.77 | % | 9.70 | % | 2.86 | % | 10.28 | % | 5.85 | % | |||||||||||||||
| restructuring charges (1), (2) | |||||||||||||||||||||||||||||
| Return on average tangible common equity, excluding | 14.10 | % | 14.36 | % | 16.52 | % | 13.70 | % | 4.04 | % | 14.23 | % | 8.29 | % | |||||||||||||||
| restructuring charges (1), (2) | |||||||||||||||||||||||||||||
| Net interest margin (FTE) | 3.67 | % | 3.75 | % | 3.72 | % | 3.71 | % | 3.73 | % | 3.71 | % | 3.72 | % | |||||||||||||||
| Efficiency ratio (3) | 61.5 | % | 60.5 | % | 59.0 | % | 61.2 | % | 62.1 | % | 61.0 | % | 63.7 | % | |||||||||||||||
| Efficiency ratio, excluding restructuring charges (1), (3), (4) | 61.5 | % | 60.5 | % | 59.0 | % | 61.2 | % | 62.1 | % | 61.0 | % | 63.2 | % | |||||||||||||||
| Capitalization Ratios | |||||||||||||||||||||||||||||
| Dividends declared to net income | 35.6 | % | 36.4 | % | 31.9 | % | 39.3 | % | 135.0 | % | 36.0 | % | 68.3 | % | |||||||||||||||
| Shareholders' equity to assets (Period End) | 12.64 | % | 12.66 | % | 12.52 | % | 12.79 | % | 12.75 | % | 12.64 | % | 12.75 | % | |||||||||||||||
| Tangible common equity to tangible assets (1) | 9.54 | % | 9.47 | % | 9.29 | % | 9.43 | % | 9.33 | % | 9.54 | % | 9.33 | % | |||||||||||||||
| Common equity book value per share | $ | 22.25 | $ | 21.78 | $ | 21.32 | $ | 20.89 | $ | 20.58 | $ | 22.25 | $ | 20.58 | |||||||||||||||
| Tangible common equity book value per share (1) | $ | 16.20 | $ | 15.72 | $ | 15.25 | $ | 14.83 | $ | 14.51 | $ | 16.20 | $ | 14.51 | |||||||||||||||
| Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.01 | % | 10.10 | % | 10.13 | % | 10.07 | % | 10.19 | % | 10.01 | % | 10.19 | % | |||||||||||||||
| Common equity tier 1 risk-based capital ratio | 10.99 | % | 10.93 | % | 10.88 | % | 10.99 | % | 10.89 | % | 10.99 | % | 10.89 | % | |||||||||||||||
| Tier 1 risk-based capital ratio | 10.99 | % | 10.93 | % | 10.88 | % | 10.99 | % | 10.89 | % | 10.99 | % | 10.89 | % | |||||||||||||||
| Total risk-based capital ratio | 13.79 | % | 13.77 | % | 13.70 | % | 13.87 | % | 13.76 | % | 13.79 | % | 13.76 | % | |||||||||||||||
| (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 | $ | 651,670 | $ | 637,606 | $ | 624,133 | $ | 614,242 | $ | 605,294 | $ | 651,670 | $ | 605,294 | |||||||||||||||
| Goodwill | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | |||||||||||||||
| Other intangibles (i) | (4,396 | ) | (4,805 | ) | (5,222 | ) | (5,690 | ) | (6,159 | ) | (4,396 | ) | (6,159 | ) | |||||||||||||||
| (d) Tangible common equity | $ | 474,715 | $ | 460,242 | $ | 446,352 | $ | 435,993 | $ | 426,576 | $ | 474,715 | $ | 426,576 | |||||||||||||||
| (e) Total assets | $ | 5,154,298 | $ | 5,035,527 | $ | 4,984,347 | $ | 4,801,998 | $ | 4,749,181 | $ | 5,154,298 | $ | 4,749,181 | |||||||||||||||
| Goodwill | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | |||||||||||||||
| Other intangibles (i) | (4,396 | ) | (4,805 | ) | (5,222 | ) | (5,690 | ) | (6,159 | ) | (4,396 | ) | (6,159 | ) | |||||||||||||||
| (f) Tangible assets | $ | 4,977,343 | $ | 4,858,163 | $ | 4,806,566 | $ | 4,623,749 | $ | 4,570,463 | $ | 4,977,343 | $ | 4,570,463 | |||||||||||||||
| (g) Average shareholders' equity | $ | 645,538 | $ | 631,574 | $ | 619,204 | $ | 611,803 | $ | 611,667 | $ | 638,595 | $ | 608,835 | |||||||||||||||
| Average goodwill | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | |||||||||||||||
| Average other intangibles (i) | (4,615 | ) | (5,031 | ) | (5,473 | ) | (5,947 | ) | (6,468 | ) | (4,821 | ) | (6,764 | ) | |||||||||||||||
| (h) Average tangible common equity | $ | 468,364 | $ | 453,984 | $ | 441,172 | $ | 433,297 | $ | 432,640 | $ | 461,215 | $ | 429,512 | |||||||||||||||
| (i) Amount does not include servicing rights | |||||||||||||||||||||||||||||
| (2) | Net income in this ratio excludes restructuring charges, net of tax. See (1)(b) above. | ||||||||||||||||||||||||||||
| (3) | Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income. | ||||||||||||||||||||||||||||
| (4) | Noninterest expense in this ratio excludes restructuring charges. See (1)(a) above. | ||||||||||||||||||||||||||||
| Univest Financial Corporation | ||||||||||||||||
| Average Balances and Interest Rates (Unaudited) | ||||||||||||||||
| For the Three Months Ended, | ||||||||||||||||
| Tax Equivalent Basis | June 30, 2019 | March 31, 2019 | ||||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Assets: | ||||||||||||||||
| Interest-earning deposits with other banks | $ | 102,623 | $ | 569 | 2.22 | % | $ | 42,566 | $ | 269 | 2.56 | % | ||||
| U.S. government obligations | 17,315 | 73 | 1.69 | 20,039 | 82 | 1.66 | ||||||||||
| Obligations of state and political subdivisions | 59,267 | 507 | 3.43 | 64,167 | 546 | 3.45 | ||||||||||
| Other debt and equity securities | 394,840 | 2,572 | 2.61 | 385,990 | 2,631 | 2.76 | ||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 31,938 | 535 | 6.72 | 32,360 | 586 | 7.34 | ||||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 605,983 | 4,256 | 2.82 | 545,122 | 4,114 | 3.06 | ||||||||||
| Commercial, financial, and agricultural loans | 820,009 | 10,589 | 5.18 | 811,071 | 10,758 | 5.38 | ||||||||||
| Real estate—commercial and construction loans | 1,912,248 | 23,110 | 4.85 | 1,822,276 | 21,559 | 4.80 | ||||||||||
| Real estate—residential loans | 941,712 | 11,483 | 4.89 | 938,299 | 11,412 | 4.93 | ||||||||||
| Loans to individuals | 31,939 | 510 | 6.40 | 32,524 | 518 | 6.46 | ||||||||||
| Municipal loans and leases | 335,399 | 3,305 | 3.95 | 332,299 | 3,221 | 3.93 | ||||||||||
| Lease financings | 81,762 | 1,459 | 7.16 | 80,893 | 1,435 | 7.19 | ||||||||||
| Gross loans and leases | 4,123,069 | 50,456 | 4.91 | 4,017,362 | 48,903 | 4.94 | ||||||||||
| Total interest-earning assets | 4,729,052 | 54,712 | 4.64 | 4,562,484 | 53,017 | 4.71 | ||||||||||
| Cash and due from banks | 46,868 | 44,714 | ||||||||||||||
| Reserve for loan and lease losses | (31,847 | ) | (30,111 | ) | ||||||||||||
| Premises and equipment, net | 58,873 | 59,179 | ||||||||||||||
| Operating lease right-of-use assets | 35,821 | 37,129 | ||||||||||||||
| Other assets | 331,681 | 330,858 | ||||||||||||||
| Total assets | $ | 5,170,448 | $ | 5,004,253 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Interest-bearing checking deposits | $ | 457,231 | $ | 457 | 0.40 | % | $ | 478,927 | $ | 714 | 0.60 | % | ||||
| Money market savings | 982,440 | 4,234 | 1.73 | 918,487 | 3,748 | 1.65 | ||||||||||
| Regular savings | 818,523 | 1,013 | 0.50 | 789,033 | 814 | 0.42 | ||||||||||
| Time deposits | 688,897 | 3,407 | 1.98 | 655,303 | 2,927 | 1.81 | ||||||||||
| Total time and interest-bearing deposits | 2,947,091 | 9,111 | 1.24 | 2,841,750 | 8,203 | 1.17 | ||||||||||
| Short-term borrowings | 48,312 | 217 | 1.80 | 117,664 | 638 | 2.20 | ||||||||||
| Long-term debt | 159,572 | 836 | 2.10 | 145,299 | 739 | 2.06 | ||||||||||
| Subordinated notes | 94,663 | 1,261 | 5.34 | 94,603 | 1,261 | 5.41 | ||||||||||
| Total borrowings | 302,547 | 2,314 | 3.07 | 357,566 | 2,638 | 2.99 | ||||||||||
| Total interest-bearing liabilities | 3,249,638 | 11,425 | 1.41 | 3,199,316 | 10,841 | 1.37 | ||||||||||
| Noninterest-bearing deposits | 1,198,320 | 1,089,449 | ||||||||||||||
| Operating lease liabilities | 38,873 | 40,090 | ||||||||||||||
| Accrued expenses and other liabilities | 38,079 | 43,824 | ||||||||||||||
| Total liabilities | 4,524,910 | 4,372,679 | ||||||||||||||
| Shareholders' Equity: | ||||||||||||||||
| Common stock | 157,784 | 157,784 | ||||||||||||||
| Additional paid-in capital | 293,496 | 292,746 | ||||||||||||||
| Retained earnings and other equity | 194,258 | 181,044 | ||||||||||||||
| Total shareholders' equity | 645,538 | 631,574 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 5,170,448 | $ | 5,004,253 | ||||||||||||
| Net interest income | $ | 43,287 | $ | 42,176 | ||||||||||||
| Net interest spread | 3.23 | 3.34 | ||||||||||||||
| Effect of net interest-free funding sources | 0.44 | 0.41 | ||||||||||||||
| Net interest margin | 3.67 | % | 3.75 | % | ||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 145.53 | % | 142.61 | % | ||||||||||||
| Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and unearned discount. Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2019 and March 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 June 30, | ||||||||||||||||
| Tax Equivalent Basis | 2019 | 2018 | ||||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Assets: | ||||||||||||||||
| Interest-earning deposits with other banks | $ | 102,623 | $ | 569 | 2.22 | % | $ | 37,254 | $ | 148 | 1.59 | % | ||||
| U.S. government obligations | 17,315 | 73 | 1.69 | 23,183 | 91 | 1.57 | ||||||||||
| Obligations of state and political subdivisions | 59,267 | 507 | 3.43 | 71,092 | 603 | 3.40 | ||||||||||
| Other debt and equity securities | 394,840 | 2,572 | 2.61 | 356,100 | 2,177 | 2.45 | ||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 31,938 | 535 | 6.72 | 32,788 | 509 | 6.23 | ||||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 605,983 | 4,256 | 2.82 | 520,417 | 3,528 | 2.72 | ||||||||||
| Commercial, financial, and agricultural loans | 820,009 | 10,589 | 5.18 | 810,610 | 9,750 | 4.82 | ||||||||||
| Real estate—commercial and construction loans | 1,912,248 | 23,110 | 4.85 | 1,661,198 | 19,044 | 4.60 | ||||||||||
| Real estate—residential loans | 941,712 | 11,483 | 4.89 | 853,769 | 10,046 | 4.72 | ||||||||||
| Loans to individuals | 31,939 | 510 | 6.40 | 28,985 | 444 | 6.14 | ||||||||||
| Municipal loans and leases | 335,399 | 3,305 | 3.95 | 313,181 | 2,961 | 3.79 | ||||||||||
| Lease financings | 81,762 | 1,459 | 7.16 | 75,452 | 1,353 | 7.19 | ||||||||||
| Gross loans and leases | 4,123,069 | 50,456 | 4.91 | 3,743,195 | 43,598 | 4.67 | ||||||||||
| Total interest-earning assets | 4,729,052 | 54,712 | 4.64 | 4,263,612 | 47,126 | 4.43 | ||||||||||
| Cash and due from banks | 46,868 | 45,158 | ||||||||||||||
| Reserve for loan and lease losses | (31,847 | ) | (23,914 | ) | ||||||||||||
| Premises and equipment, net | 58,873 | 61,234 | ||||||||||||||
| Operating lease right-of-use assets | 35,821 | - | ||||||||||||||
| Other assets | 331,681 | 336,737 | ||||||||||||||
| Total assets | $ | 5,170,448 | $ | 4,682,827 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Interest-bearing checking deposits | $ | 457,231 | $ | 457 | 0.40 | % | $ | 463,156 | $ | 383 | 0.33 | % | ||||
| Money market savings | 982,440 | 4,234 | 1.73 | 694,734 | 1,758 | 1.01 | ||||||||||
| Regular savings | 818,523 | 1,013 | 0.50 | 803,586 | 582 | 0.29 | ||||||||||
| Time deposits | 688,897 | 3,407 | 1.98 | 553,579 | 1,819 | 1.32 | ||||||||||
| Total time and interest-bearing deposits | 2,947,091 | 9,111 | 1.24 | 2,515,055 | 4,542 | 0.72 | ||||||||||
| Short-term borrowings | 48,312 | 217 | 1.80 | 217,327 | 958 | 1.77 | ||||||||||
| Long-term debt | 159,572 | 836 | 2.10 | 155,628 | 709 | 1.83 | ||||||||||
| Subordinated notes | 94,663 | 1,261 | 5.34 | 94,420 | 1,261 | 5.36 | ||||||||||
| Total borrowings | 302,547 | 2,314 | 3.07 | 467,375 | 2,928 | 2.51 | ||||||||||
| Total interest-bearing liabilities | 3,249,638 | 11,425 | 1.41 | 2,982,430 | 7,470 | 1.00 | ||||||||||
| Noninterest-bearing deposits | 1,198,320 | 1,048,901 | ||||||||||||||
| Operating lease liabilities | 38,873 | - | ||||||||||||||
| Accrued expenses and other liabilities | 38,079 | 39,829 | ||||||||||||||
| Total liabilities | 4,524,910 | 4,071,160 | ||||||||||||||
| Shareholders' Equity: | ||||||||||||||||
| Common stock | 157,784 | 157,784 | ||||||||||||||
| Additional paid-in capital | 293,496 | 290,517 | ||||||||||||||
| Retained earnings and other equity | 194,258 | 163,366 | ||||||||||||||
| Total shareholders' equity | 645,538 | 611,667 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 5,170,448 | $ | 4,682,827 | ||||||||||||
| Net interest income | $ | 43,287 | $ | 39,656 | ||||||||||||
| Net interest spread | 3.23 | 3.43 | ||||||||||||||
| Effect of net interest-free funding sources | 0.44 | 0.30 | ||||||||||||||
| Net interest margin | 3.67 | % | 3.73 | % | ||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 145.53 | % | 142.96 | % | ||||||||||||
| Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and unearned discount. Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2019 and 2018 have been calculated using the Corporation’s federal applicable rate of 21.0%. | ||||||||||||||||
| Univest Financial Corporation | ||||||||||||||||
| Average Balances and Interest Rates (Unaudited) | ||||||||||||||||
| For the Six Months Ended June 30, | ||||||||||||||||
| Tax Equivalent Basis | 2019 | 2018 | ||||||||||||||
| Average | Income/ | Average | Average | Income/ | Average | |||||||||||
| (Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||
| Assets: | ||||||||||||||||
| Interest-earning deposits with other banks | $ | 72,760 | $ | 838 | 2.32 | % | $ | 28,269 | $ | 224 | 1.60 | % | ||||
| U.S. government obligations | 18,669 | 155 | 1.67 | 23,550 | 185 | 1.58 | ||||||||||
| Obligations of state and political subdivisions | 61,703 | 1,053 | 3.44 | 72,814 | 1,196 | 3.31 | ||||||||||
| Other debt and equity securities | 390,440 | 5,203 | 2.69 | 357,766 | 4,272 | 2.41 | ||||||||||
| Federal Home Loan Bank, Federal Reserve Bank and other stock | 32,148 | 1,121 | 7.03 | 30,933 | 1,013 | 6.60 | ||||||||||
| Total interest-earning deposits, investments and other interest-earning assets | 575,720 | 8,370 | 2.93 | 513,332 | 6,890 | 2.71 | ||||||||||
| Commercial, financial, and agricultural loans | 815,565 | 21,347 | 5.28 | 796,483 | 18,650 | 4.72 | ||||||||||
| Real estate—commercial and construction loans | 1,867,510 | 44,669 | 4.82 | 1,630,964 | 36,662 | 4.53 | ||||||||||
| Real estate—residential loans | 940,015 | 22,895 | 4.91 | 845,677 | 19,721 | 4.70 | ||||||||||
| Loans to individuals | 32,230 | 1,028 | 6.43 | 28,475 | 857 | 6.07 | ||||||||||
| Municipal loans and leases | 333,858 | 6,526 | 3.94 | 312,470 | 5,853 | 3.78 | ||||||||||
| Lease financings | 81,330 | 2,894 | 7.18 | 75,083 | 2,697 | 7.24 | ||||||||||
| Gross loans and leases | 4,070,508 | 99,359 | 4.92 | 3,689,152 | 84,440 | 4.62 | ||||||||||
| Total interest-earning assets | 4,646,228 | 107,729 | 4.68 | 4,202,484 | 91,330 | 4.38 | ||||||||||
| Cash and due from banks | 45,797 | 43,839 | ||||||||||||||
| Reserve for loan and lease losses | (30,984 | ) | (22,973 | ) | ||||||||||||
| Premises and equipment, net | 59,025 | 61,485 | ||||||||||||||
| Operating lease right-of-use assets | 36,472 | - | ||||||||||||||
| Other assets | 331,272 | 334,879 | ||||||||||||||
| Total assets | $ | 5,087,810 | $ | 4,619,714 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Interest-bearing checking deposits | $ | 468,019 | $ | 1,171 | 0.50 | % | $ | 444,197 | $ | 675 | 0.31 | % | ||||
| Money market savings | 950,641 | 7,982 | 1.69 | 676,651 | 3,101 | 0.92 | ||||||||||
| Regular savings | 803,859 | 1,827 | 0.46 | 818,895 | 1,139 | 0.28 | ||||||||||
| Time deposits | 672,193 | 6,334 | 1.90 | 547,562 | 3,318 | 1.22 | ||||||||||
| Total time and interest-bearing deposits | 2,894,712 | 17,314 | 1.21 | 2,487,305 | 8,233 | 0.67 | ||||||||||
| Short-term borrowings | 82,796 | 855 | 2.08 | 196,690 | 1,603 | 1.64 | ||||||||||
| Long-term debt | 152,475 | 1,575 | 2.08 | 155,697 | 1,374 | 1.78 | ||||||||||
| Subordinated notes | 94,633 | 2,522 | 5.37 | 94,390 | 2,522 | 5.39 | ||||||||||
| Total borrowings | 329,904 | 4,952 | 3.03 | 446,777 | 5,499 | 2.48 | ||||||||||
| Total interest-bearing liabilities | 3,224,616 | 22,266 | 1.39 | 2,934,082 | 13,732 | 0.94 | ||||||||||
| Noninterest-bearing deposits | 1,144,185 | 1,036,916 | ||||||||||||||
| Operating lease liabilities | 39,478 | - | ||||||||||||||
| Accrued expenses and other liabilities | 40,936 | 39,881 | ||||||||||||||
| Total liabilities | 4,449,215 | 4,010,879 | ||||||||||||||
| Shareholders' Equity: | ||||||||||||||||
| Common stock | 157,784 | 157,784 | ||||||||||||||
| Additional paid-in capital | 293,123 | 290,363 | ||||||||||||||
| Retained earnings and other equity | 187,688 | 160,688 | ||||||||||||||
| Total shareholders' equity | 638,595 | 608,835 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 5,087,810 | $ | 4,619,714 | ||||||||||||
| Net interest income | $ | 85,463 | $ | 77,598 | ||||||||||||
| Net interest spread | 3.29 | 3.44 | ||||||||||||||
| Effect of net interest-free funding sources | 0.42 | 0.28 | ||||||||||||||
| Net interest margin | 3.71 | % | 3.72 | % | ||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 144.09 | % | 143.23 | % | ||||||||||||
| Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting adjustments and unearned discount. Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2019 and 2018 have been calculated using the Corporation’s federal applicable rate of 21.0%. | ||||||||||||||||