(State or other jurisdiction | (Commission | (I.R.S. Employer | ||||||||||||
of incorporation) | File Number) | Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Title of class | Trading Symbol | Name of exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
Item 2.02 | Results of Operations and Financial Condition |
Item 5.03 | Amendments to Articles of Incorporation of Bylaws; Change in Fiscal Year |
Item 8.01 | Other Events |
Item 9.01 | Financial Statements and Exhibits |
Exhibit No. | Description of Document | |||||||
3.2 | ||||||||
99.1 | ||||||||
104 | The cover page from the Corporation's Form 8-K, formatted in Inline XBRL |
Univest Financial Corporation | ||||||||
By: | /s/ Brian J. Richardson | |||||||
Name: | Brian J. Richardson | |||||||
Title: | Senior Executive Vice President, | |||||||
Chief Financial Officer |
Exhibit No. | Description of Document | |||||||
3.2 | ||||||||
99.1 | ||||||||
104 | The cover page from the Corporation's Form 8-K, formatted in Inline XBRL |
NEWS |
Univest Financial Corporation | |||||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Balance Sheet (Period End) | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | ||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Cash and due from banks | $ | 57,307 | $ | 49,202 | $ | 67,517 | $ | 50,358 | $ | 35,117 | |||||||||||||||||||
Interest-earning deposits with other banks | 716,474 | 840,948 | 834,840 | 153,091 | 152,200 | ||||||||||||||||||||||||
Cash and cash equivalents | 773,781 | 890,150 | 902,357 | 203,449 | 187,317 | ||||||||||||||||||||||||
Investment securities held-to-maturity | 166,339 | 176,983 | 112,643 | 119,692 | 135,153 | ||||||||||||||||||||||||
Investment securities available for sale, net of allowance for credit losses | 349,994 | 317,007 | 277,773 | 274,862 | 238,829 | ||||||||||||||||||||||||
Investments in equity securities | 2,569 | 2,999 | 2,961 | 2,872 | 3,524 | ||||||||||||||||||||||||
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost | 26,330 | 28,186 | 28,679 | 25,228 | 25,571 | ||||||||||||||||||||||||
Loans held for sale | 14,521 | 21,600 | 29,093 | 27,322 | 22,636 | ||||||||||||||||||||||||
Loans and leases held for investment | 5,400,786 | 5,310,017 | 5,252,045 | 5,327,313 | 5,415,006 | ||||||||||||||||||||||||
Less: Allowance for credit losses, loans and leases | (68,286) | (71,924) | (70,146) | (71,355) | (71,497) | ||||||||||||||||||||||||
Net loans and leases held for investment | 5,332,500 | 5,238,093 | 5,181,899 | 5,255,958 | 5,343,509 | ||||||||||||||||||||||||
Premises and equipment, net | 50,429 | 56,882 | 55,354 | 56,067 | 55,650 | ||||||||||||||||||||||||
Operating lease right-of-use assets | 30,498 | 30,407 | 31,570 | 33,688 | 34,317 | ||||||||||||||||||||||||
Goodwill | 175,510 | 175,510 | 172,559 | 172,559 | 172,559 | ||||||||||||||||||||||||
Other intangibles, net of accumulated amortization | 11,784 | 11,848 | 9,359 | 9,396 | 9,225 | ||||||||||||||||||||||||
Bank owned life insurance | 119,398 | 118,699 | 117,981 | 117,765 | 118,435 | ||||||||||||||||||||||||
Accrued interest and other assets | 54,087 | 54,057 | 57,624 | 57,447 | 69,940 | ||||||||||||||||||||||||
Total assets | $ | 7,107,740 | $ | 7,122,421 | $ | 6,979,852 | $ | 6,356,305 | $ | 6,416,665 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 2,136,467 | $ | 2,065,423 | $ | 1,861,007 | $ | 1,872,031 | $ | 1,857,547 | |||||||||||||||||||
Interest-bearing deposits: | 3,911,465 | 3,989,701 | 4,077,147 | 3,446,673 | 3,454,045 | ||||||||||||||||||||||||
Total deposits | 6,047,932 | 6,055,124 | 5,938,154 | 5,318,704 | 5,311,592 | ||||||||||||||||||||||||
Short-term borrowings | 18,976 | 20,106 | 14,101 | 25,251 | 26,676 | ||||||||||||||||||||||||
Long-term debt | 95,000 | 95,000 | 95,000 | 95,000 | 95,000 | ||||||||||||||||||||||||
Subordinated notes | 98,952 | 98,874 | 98,797 | 98,719 | 173,617 | ||||||||||||||||||||||||
Operating lease liabilities | 33,566 | 33,453 | 34,641 | 37,131 | 37,737 | ||||||||||||||||||||||||
Accrued expenses and other liabilities | 39,459 | 46,070 | 43,136 | 41,502 | 49,588 | ||||||||||||||||||||||||
Total liabilities | 6,333,885 | 6,348,627 | 6,223,829 | 5,616,307 | 5,694,210 | ||||||||||||||||||||||||
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 | 297,945 | 299,181 | 298,033 | 297,208 | 296,177 | ||||||||||||||||||||||||
Retained earnings | 389,332 | 375,124 | 363,607 | 348,579 | 333,581 | ||||||||||||||||||||||||
Accumulated other comprehensive loss, net of tax benefit | (31,909) | (16,353) | (20,073) | (19,545) | (20,440) | ||||||||||||||||||||||||
Treasury stock, at cost | (39,297) | (41,942) | (43,328) | (44,028) | (44,647) | ||||||||||||||||||||||||
Total shareholders’ equity | 773,855 | 773,794 | 756,023 | 739,998 | 722,455 | ||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 7,107,740 | $ | 7,122,421 | $ | 6,979,852 | $ | 6,356,305 | $ | 6,416,665 | |||||||||||||||||||
For the three months ended, | |||||||||||||||||||||||||||||
Balance Sheet (Average) | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | ||||||||||||||||||||||||
Assets | $ | 7,047,980 | $ | 7,088,289 | $ | 6,698,177 | $ | 6,443,629 | $ | 6,383,463 | |||||||||||||||||||
Investment securities, net of allowance for credit losses | 522,128 | 469,588 | 395,280 | 385,694 | 374,369 | ||||||||||||||||||||||||
Loans and leases, gross | 5,344,698 | 5,255,279 | 5,320,411 | 5,389,110 | 5,325,897 | ||||||||||||||||||||||||
Deposits | 5,984,815 | 6,041,798 | 5,666,725 | 5,351,089 | 5,296,147 | ||||||||||||||||||||||||
Shareholders' equity | 774,358 | 762,334 | 746,185 | 728,750 | 699,736 |
Univest Financial Corporation | |||||||||||||||||||||||||||||
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited) | |||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Summary of Major Loan and Lease Categories (Period End) | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | ||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 932,485 | $ | 956,396 | $ | 927,015 | $ | 920,621 | $ | 871,996 | |||||||||||||||||||
Paycheck Protection Program | 10,298 | 31,748 | 85,601 | 252,849 | 528,452 | ||||||||||||||||||||||||
Real estate-commercial | 2,816,737 | 2,718,535 | 2,669,898 | 2,600,919 | 2,531,700 | ||||||||||||||||||||||||
Real estate-construction | 285,083 | 283,918 | 260,874 | 274,529 | 249,652 | ||||||||||||||||||||||||
Real estate-residential secured for business purpose | 412,486 | 409,900 | 412,001 | 407,664 | 387,801 | ||||||||||||||||||||||||
Real estate-residential secured for personal purpose | 568,735 | 540,566 | 535,705 | 513,330 | 494,349 | ||||||||||||||||||||||||
Real estate-home equity secured for personal purpose | 160,134 | 158,909 | 159,029 | 160,018 | 162,529 | ||||||||||||||||||||||||
Loans to individuals | 26,249 | 25,504 | 26,458 | 25,845 | 25,468 | ||||||||||||||||||||||||
Lease financings | 188,579 | 184,541 | 175,464 | 171,538 | 163,059 | ||||||||||||||||||||||||
Total loans and leases held for investment, net of deferred income | 5,400,786 | 5,310,017 | 5,252,045 | 5,327,313 | 5,415,006 | ||||||||||||||||||||||||
Less: Allowance for credit losses, loans and leases | (68,286) | (71,924) | (70,146) | (71,355) | (71,497) | ||||||||||||||||||||||||
Net loans and leases held for investment | $ | 5,332,500 | $ | 5,238,093 | $ | 5,181,899 | $ | 5,255,958 | $ | 5,343,509 | |||||||||||||||||||
Asset Quality Data (Period End) | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | ||||||||||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale | $ | 30,876 | $ | 33,210 | $ | 34,528 | $ | 37,466 | $ | 29,996 | |||||||||||||||||||
Accruing loans and leases 90 days or more past due | 274 | 498 | 2,204 | 750 | 664 | ||||||||||||||||||||||||
Accruing troubled debt restructured loans and leases | 51 | 51 | 51 | 52 | 52 | ||||||||||||||||||||||||
Total nonperforming loans and leases | 31,201 | 33,759 | 36,783 | 38,268 | 30,712 | ||||||||||||||||||||||||
Other real estate owned | 279 | 279 | 279 | 279 | 7,481 | ||||||||||||||||||||||||
Total nonperforming assets | $ | 31,480 | $ | 34,038 | $ | 37,062 | $ | 38,547 | $ | 38,193 | |||||||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale | 0.57 | % | 0.63 | % | 0.66 | % | 0.70 | % | 0.55 | % | |||||||||||||||||||
Nonperforming loans and leases / Loans and leases held for investment | 0.58 | % | 0.64 | % | 0.70 | % | 0.72 | % | 0.57 | % | |||||||||||||||||||
Nonperforming assets / Total assets | 0.44 | % | 0.48 | % | 0.53 | % | 0.61 | % | 0.60 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases | $ | 68,286 | $ | 71,924 | $ | 70,146 | $ | 71,355 | $ | 71,497 | |||||||||||||||||||
Allowance for credit losses, loans and leases / Loans and leases held for investment | 1.26 | % | 1.35 | % | 1.34 | % | 1.34 | % | 1.32 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1) | 1.27 | % | 1.36 | % | 1.36 | % | 1.41 | % | 1.46 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment | 221.16 | % | 216.57 | % | 203.16 | % | 212.97 | % | 238.36 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment | 218.86 | % | 213.05 | % | 190.70 | % | 208.00 | % | 232.80 | % | |||||||||||||||||||
For the three months ended, | |||||||||||||||||||||||||||||
3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | |||||||||||||||||||||||||
Net loan and lease charge-offs (recoveries) | $ | 76 | $ | (243) | $ | (75) | $ | 243 | $ | 288 | |||||||||||||||||||
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases | 0.01 | % | (0.02) | % | (0.01) | % | 0.02 | % | 0.02 | % | |||||||||||||||||||
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document. |
Univest Financial Corporation | |||||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||
For the three months ended, | |||||||||||||||||||||||||||||
For the period: | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | ||||||||||||||||||||||||
Interest income | $ | 51,198 | $ | 52,262 | $ | 53,571 | $ | 52,441 | $ | 51,457 | |||||||||||||||||||
Interest expense | 4,538 | 4,737 | 4,884 | 5,684 | 6,043 | ||||||||||||||||||||||||
Net interest income | 46,660 | 47,525 | 48,687 | 46,757 | 45,414 | ||||||||||||||||||||||||
(Reversal of provision) provision for credit losses | (3,450) | 1,392 | (182) | (59) | (11,283) | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 50,110 | 46,133 | 48,869 | 46,816 | 56,697 | ||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Trust fee income | 2,102 | 2,086 | 2,126 | 2,157 | 2,034 | ||||||||||||||||||||||||
Service charges on deposit accounts | 1,504 | 1,486 | 1,422 | 1,314 | 1,282 | ||||||||||||||||||||||||
Investment advisory commission and fee income | 5,152 | 4,885 | 4,796 | 4,558 | 4,697 | ||||||||||||||||||||||||
Insurance commission and fee income | 5,570 | 3,726 | 3,837 | 3,839 | 4,955 | ||||||||||||||||||||||||
Other service fee income | 2,756 | 2,759 | 2,576 | 2,748 | 2,192 | ||||||||||||||||||||||||
Bank owned life insurance income | 699 | 719 | 925 | 1,620 | 717 | ||||||||||||||||||||||||
Net gain on sales of investment securities | 30 | 5 | 21 | 54 | 65 | ||||||||||||||||||||||||
Net gain on mortgage banking activities | 1,929 | 2,518 | 3,224 | 3,461 | 5,938 | ||||||||||||||||||||||||
Other income | 728 | 1,008 | 1,625 | 479 | 1,370 | ||||||||||||||||||||||||
Total noninterest income | 20,470 | 19,192 | 20,552 | 20,230 | 23,250 | ||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||
Salaries, benefits and commissions | 28,245 | 27,374 | 26,641 | 25,396 | 24,780 | ||||||||||||||||||||||||
Net occupancy | 2,716 | 2,477 | 2,525 | 2,656 | 2,739 | ||||||||||||||||||||||||
Equipment | 982 | 985 | 1,000 | 968 | 946 | ||||||||||||||||||||||||
Data processing | 3,567 | 3,355 | 3,274 | 3,064 | 3,050 | ||||||||||||||||||||||||
Professional fees | 2,138 | 1,750 | 2,174 | 2,015 | 1,748 | ||||||||||||||||||||||||
Marketing and advertising | 425 | 683 | 539 | 561 | 280 | ||||||||||||||||||||||||
Deposit insurance premiums | 893 | 698 | 765 | 613 | 636 | ||||||||||||||||||||||||
Intangible expenses | 341 | 267 | 214 | 249 | 249 | ||||||||||||||||||||||||
Other expense | 6,105 | 5,746 | 6,116 | 5,764 | 5,112 | ||||||||||||||||||||||||
Total noninterest expense | 45,412 | 43,335 | 43,248 | 41,286 | 39,540 | ||||||||||||||||||||||||
Income before taxes | 25,168 | 21,990 | 26,173 | 25,760 | 40,407 | ||||||||||||||||||||||||
Income tax expense | 4,851 | 4,578 | 5,262 | 4,885 | 7,804 | ||||||||||||||||||||||||
Net income | $ | 20,317 | $ | 17,412 | $ | 20,911 | $ | 20,875 | $ | 32,603 | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||||
Basic | $ | 0.69 | $ | 0.59 | $ | 0.71 | $ | 0.71 | $ | 1.11 | |||||||||||||||||||
Diluted | $ | 0.68 | $ | 0.59 | $ | 0.71 | $ | 0.71 | $ | 1.11 | |||||||||||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | |||||||||||||||||||
Weighted average shares outstanding | 29,542,467 | 29,471,304 | 29,420,256 | 29,389,525 | 29,327,432 | ||||||||||||||||||||||||
Period end shares outstanding | 29,636,425 | 29,500,542 | 29,438,402 | 29,411,731 | 29,379,575 |
Univest Financial Corporation | |||||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||
For the three months ended, | |||||||||||||||||||||||||||||
Profitability Ratios (annualized) | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | ||||||||||||||||||||||||
Return on average assets | 1.17 | % | 0.97 | % | 1.24 | % | 1.30 | % | 2.07 | % | |||||||||||||||||||
Return on average shareholders' equity | 10.64 | % | 9.06 | % | 11.12 | % | 11.49 | % | 18.90 | % | |||||||||||||||||||
Return on average tangible common equity (1)(3) | 14.04 | % | 11.93 | % | 14.63 | % | 15.26 | % | 25.35 | % | |||||||||||||||||||
Net interest margin (FTE) | 2.89 | % | 2.86 | % | 3.11 | % | 3.15 | % | 3.12 | % | |||||||||||||||||||
Efficiency ratio (2) | 67.0 | % | 64.3 | % | 61.8 | % | 60.7 | % | 57.0 | % | |||||||||||||||||||
Capitalization Ratios | |||||||||||||||||||||||||||||
Dividends declared to net income | 29.1 | % | 33.9 | % | 28.1 | % | 28.2 | % | 18.0 | % | |||||||||||||||||||
Shareholders' equity to assets (Period End) | 10.89 | % | 10.86 | % | 10.83 | % | 11.64 | % | 11.26 | % | |||||||||||||||||||
Tangible common equity to tangible assets (1) | 8.58 | % | 8.56 | % | 8.55 | % | 9.15 | % | 8.77 | % | |||||||||||||||||||
Common equity book value per share | $ | 26.11 | $ | 26.23 | $ | 25.68 | $ | 25.16 | $ | 24.59 | |||||||||||||||||||
Tangible common equity book value per share (1) | $ | 20.06 | $ | 20.14 | $ | 19.75 | $ | 19.22 | $ | 18.64 | |||||||||||||||||||
Regulatory Capital Ratios (Period End) | |||||||||||||||||||||||||||||
Tier 1 leverage ratio | 9.35 | % | 9.13 | % | 9.53 | % | 9.64 | % | 9.45 | % | |||||||||||||||||||
Common equity tier 1 risk-based capital ratio | 11.07 | % | 11.08 | % | 11.15 | % | 11.04 | % | 11.08 | % | |||||||||||||||||||
Tier 1 risk-based capital ratio | 11.07 | % | 11.08 | % | 11.15 | % | 11.04 | % | 11.08 | % | |||||||||||||||||||
Total risk-based capital ratio | 13.73 | % | 13.77 | % | 13.87 | % | 13.82 | % | 15.13 | % | |||||||||||||||||||
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document. | |||||||||||||||||||||||||||||
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income. | |||||||||||||||||||||||||||||
(3) Net income before amortization of intangibles to average tangible common equity. |
Univest Financial Corporation | |||||||||||||||||||||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended, | |||||||||||||||||||||||||||||||||||||||||
Tax Equivalent Basis | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 733,173 | $ | 357 | 0.20 | % | $ | 914,287 | $ | 370 | 0.16 | % | |||||||||||||||||||||||||||||
U.S. government obligations | 5,222 | 26 | 2.02 | 6,999 | 37 | 2.10 | |||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions* | 2,332 | 19 | 3.30 | 2,334 | 19 | 3.23 | |||||||||||||||||||||||||||||||||||
Other debt and equity securities | 514,574 | 2,339 | 1.84 | 460,255 | 1,845 | 1.59 | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank, Federal Reserve Bank and other stock | 27,115 | 355 | 5.31 | 28,402 | 375 | 5.24 | |||||||||||||||||||||||||||||||||||
Total interest-earning deposits, investments and other interest-earning assets | 1,282,416 | 3,096 | 0.98 | 1,412,277 | 2,646 | 0.74 | |||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural loans | 901,555 | 7,571 | 3.41 | 869,471 | 7,022 | 3.20 | |||||||||||||||||||||||||||||||||||
Paycheck Protection Program loans | 18,402 | 591 | 13.02 | 53,745 | 1,568 | 11.57 | |||||||||||||||||||||||||||||||||||
Real estate—commercial and construction loans | 2,904,602 | 25,820 | 3.61 | 2,826,720 | 26,669 | 3.74 | |||||||||||||||||||||||||||||||||||
Real estate—residential loans | 1,116,356 | 9,882 | 3.59 | 1,107,911 | 10,165 | 3.64 | |||||||||||||||||||||||||||||||||||
Loans to individuals | 25,799 | 238 | 3.74 | 26,462 | 249 | 3.73 | |||||||||||||||||||||||||||||||||||
Municipal loans and leases* | 242,508 | 2,434 | 4.07 | 245,038 | 2,515 | 4.07 | |||||||||||||||||||||||||||||||||||
Lease financings | 135,476 | 2,075 | 6.21 | 125,932 | 1,951 | 6.15 | |||||||||||||||||||||||||||||||||||
Gross loans and leases | 5,344,698 | 48,611 | 3.69 | 5,255,279 | 50,139 | 3.79 | |||||||||||||||||||||||||||||||||||
Total interest-earning assets | 6,627,114 | 51,707 | 3.16 | 6,667,556 | 52,785 | 3.14 | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 53,698 | 54,958 | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, loans and leases | (72,067) | (71,020) | |||||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 53,948 | 56,087 | |||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 30,394 | 31,048 | |||||||||||||||||||||||||||||||||||||||
Other assets | 354,893 | 349,660 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 7,047,980 | $ | 7,088,289 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking deposits | $ | 881,462 | $ | 443 | 0.20 | % | $ | 939,478 | $ | 493 | 0.21 | % | |||||||||||||||||||||||||||||
Money market savings | 1,542,581 | 904 | 0.24 | 1,616,890 | 968 | 0.24 | |||||||||||||||||||||||||||||||||||
Regular savings | 1,021,550 | 238 | 0.09 | 997,814 | 253 | 0.10 | |||||||||||||||||||||||||||||||||||
Time deposits | 473,589 | 1,306 | 1.12 | 487,434 | 1,370 | 1.12 | |||||||||||||||||||||||||||||||||||
Total time and interest-bearing deposits | 3,919,182 | 2,891 | 0.30 | 4,041,616 | 3,084 | 0.30 | |||||||||||||||||||||||||||||||||||
Short-term borrowings | 17,636 | 2 | 0.05 | 14,144 | 1 | 0.03 | |||||||||||||||||||||||||||||||||||
Long-term debt | 95,000 | 317 | 1.35 | 95,000 | 325 | 1.36 | |||||||||||||||||||||||||||||||||||
Subordinated notes | 98,911 | 1,328 | 5.45 | 98,833 | 1,327 | 5.33 | |||||||||||||||||||||||||||||||||||
Total borrowings | 211,547 | 1,647 | 3.16 | 207,977 | 1,653 | 3.15 | |||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,130,729 | 4,538 | 0.45 | 4,249,593 | 4,737 | 0.44 | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,065,633 | 2,000,182 | |||||||||||||||||||||||||||||||||||||||
Operating lease liabilities | 33,452 | 34,114 | |||||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 43,808 | 42,066 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,273,622 | 6,325,955 | |||||||||||||||||||||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||||||||||||||||||||
Common stock | 157,784 | 157,784 | |||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 298,975 | 298,508 | |||||||||||||||||||||||||||||||||||||||
Retained earnings and other equity | 317,599 | 306,042 | |||||||||||||||||||||||||||||||||||||||
Total shareholders' equity | 774,358 | 762,334 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 7,047,980 | $ | 7,088,289 | |||||||||||||||||||||||||||||||||||||
Net interest income | $ | 47,169 | $ | 48,048 | |||||||||||||||||||||||||||||||||||||
Net interest spread | 2.71 | 2.70 | |||||||||||||||||||||||||||||||||||||||
Effect of net interest-free funding sources | 0.18 | 0.16 | |||||||||||||||||||||||||||||||||||||||
Net interest margin | 2.89 | % | 2.86 | % | |||||||||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 160.43 | % | 156.90 | % | |||||||||||||||||||||||||||||||||||||
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | |||||||||||||||||||||||||||||||||||||||||
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustment. | |||||||||||||||||||||||||||||||||||||||||
Net interest income includes net deferred (costs) fees of $(136) thousand and $707 thousand for the three months ended March 31, 2022 and December 31, 2021. | |||||||||||||||||||||||||||||||||||||||||
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, 2022 and December 31, 2021 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 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits with other banks | $ | 733,173 | $ | 357 | 0.20 | % | $ | 237,548 | $ | 56 | 0.10 | % | |||||||||||||||||||||||||||||
U.S. government obligations | 5,222 | 26 | 2.02 | 6,998 | 36 | 2.09 | |||||||||||||||||||||||||||||||||||
Obligations of state and political subdivisions* | 2,332 | 19 | 3.30 | 11,544 | 105 | 3.69 | |||||||||||||||||||||||||||||||||||
Other debt and equity securities | 514,574 | 2,339 | 1.84 | 355,827 | 1,267 | 1.44 | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank, Federal Reserve Bank and other stock | 27,115 | 355 | 5.31 | 26,368 | 348 | 5.35 | |||||||||||||||||||||||||||||||||||
Total interest-earning deposits, investments and other interest-earning assets | 1,282,416 | 3,096 | 0.98 | 638,285 | 1,812 | 1.15 | |||||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural loans | 901,555 | 7,571 | 3.41 | 782,208 | 6,798 | 3.52 | |||||||||||||||||||||||||||||||||||
Paycheck Protection Program loans | 18,402 | 591 | 13.02 | 506,939 | 4,524 | 3.62 | |||||||||||||||||||||||||||||||||||
Real estate—commercial and construction loans | 2,904,602 | 25,820 | 3.61 | 2,621,981 | 24,458 | 3.78 | |||||||||||||||||||||||||||||||||||
Real estate—residential loans | 1,116,356 | 9,882 | 3.59 | 1,037,000 | 9,873 | 3.86 | |||||||||||||||||||||||||||||||||||
Loans to individuals | 25,799 | 238 | 3.74 | 26,447 | 265 | 4.06 | |||||||||||||||||||||||||||||||||||
Municipal loans and leases* | 242,508 | 2,434 | 4.07 | 245,638 | 2,530 | 4.18 | |||||||||||||||||||||||||||||||||||
Lease financings | 135,476 | 2,075 | 6.21 | 105,684 | 1,737 | 6.67 | |||||||||||||||||||||||||||||||||||
Gross loans and leases | 5,344,698 | 48,611 | 3.69 | 5,325,897 | 50,185 | 3.82 | |||||||||||||||||||||||||||||||||||
Total interest-earning assets | 6,627,114 | 51,707 | 3.16 | 5,964,182 | 51,997 | 3.54 | |||||||||||||||||||||||||||||||||||
Cash and due from banks | 53,698 | 55,311 | |||||||||||||||||||||||||||||||||||||||
Allowance for credit losses, loans and leases | (72,067) | (83,254) | |||||||||||||||||||||||||||||||||||||||
Premises and equipment, net | 53,948 | 55,826 | |||||||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 30,394 | 34,033 | |||||||||||||||||||||||||||||||||||||||
Other assets | 354,893 | 357,365 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 7,047,980 | $ | 6,383,463 | |||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||
Interest-bearing checking deposits | $ | 881,462 | $ | 443 | 0.20 | % | $ | 817,940 | $ | 490 | 0.24 | % | |||||||||||||||||||||||||||||
Money market savings | 1,542,581 | 904 | 0.24 | 1,243,673 | 853 | 0.28 | |||||||||||||||||||||||||||||||||||
Regular savings | 1,021,550 | 238 | 0.09 | 959,232 | 298 | 0.13 | |||||||||||||||||||||||||||||||||||
Time deposits | 473,589 | 1,306 | 1.12 | 525,800 | 1,759 | 1.36 | |||||||||||||||||||||||||||||||||||
Total time and interest-bearing deposits | 3,919,182 | 2,891 | 0.30 | 3,546,645 | 3,400 | 0.39 | |||||||||||||||||||||||||||||||||||
Short-term borrowings | 17,636 | 2 | 0.05 | 17,894 | 2 | 0.05 | |||||||||||||||||||||||||||||||||||
Long-term debt | 95,000 | 317 | 1.35 | 101,333 | 348 | 1.39 | |||||||||||||||||||||||||||||||||||
Subordinated notes | 98,911 | 1,328 | 5.45 | 183,340 | 2,293 | 5.07 | |||||||||||||||||||||||||||||||||||
Total borrowings | 211,547 | 1,647 | 3.16 | 302,567 | 2,643 | 3.54 | |||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,130,729 | 4,538 | 0.45 | 3,849,212 | 6,043 | 0.64 | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 2,065,633 | 1,749,502 | |||||||||||||||||||||||||||||||||||||||
Operating lease liabilities | 33,452 | 37,415 | |||||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 43,808 | 47,598 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 6,273,622 | 5,683,727 | |||||||||||||||||||||||||||||||||||||||
Shareholders' Equity: | |||||||||||||||||||||||||||||||||||||||||
Common stock | 157,784 | 157,784 | |||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 298,975 | 296,136 | |||||||||||||||||||||||||||||||||||||||
Retained earnings and other equity | 317,599 | 245,816 | |||||||||||||||||||||||||||||||||||||||
Total shareholders' equity | 774,358 | 699,736 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 7,047,980 | $ | 6,383,463 | |||||||||||||||||||||||||||||||||||||
Net interest income | $ | 47,169 | $ | 45,954 | |||||||||||||||||||||||||||||||||||||
Net interest spread | 2.71 | 2.90 | |||||||||||||||||||||||||||||||||||||||
Effect of net interest-free funding sources | 0.18 | 0.22 | |||||||||||||||||||||||||||||||||||||||
Net interest margin | 2.89 | % | 3.12 | % | |||||||||||||||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 160.43 | % | 154.95 | % | |||||||||||||||||||||||||||||||||||||
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets. | |||||||||||||||||||||||||||||||||||||||||
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments. | |||||||||||||||||||||||||||||||||||||||||
Net interest income includes net deferred (costs) fees of $(136) thousand and $2.3 million for the three months ended March 31, 2022 and 2021, respectively. | |||||||||||||||||||||||||||||||||||||||||
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, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%. |
Univest Financial Corporation | |||||||||||||||||||||||
Loan Portfolio Overview (Unaudited) | |||||||||||||||||||||||
(Dollars in thousands) | As of March 31, 2022 | ||||||||||||||||||||||
Industry Description | Total Outstanding Balance (excl PPP) | % of Commercial Loan Portfolio | $ Balance of Modified Loans (1) | Modified Loans as a % of Portfolio (excl PPP) (1) | |||||||||||||||||||
CRE - Retail | $ | 359,125 | 8.1 | % | $ | — | — | % | |||||||||||||||
Animal Production | 310,747 | 7.0 | — | — | |||||||||||||||||||
CRE - Multi-family | 244,480 | 5.5 | — | — | |||||||||||||||||||
CRE - 1-4 Family Residential Investment | 234,653 | 5.3 | — | — | |||||||||||||||||||
CRE - Office | 231,125 | 5.2 | — | — | |||||||||||||||||||
Hotels & Motels (Accommodation) | 186,497 | 4.2 | 1,437 | 0.8 | |||||||||||||||||||
Nursing and Residential Care Facilities | 168,896 | 3.8 | — | — | |||||||||||||||||||
CRE - Industrial / Warehouse | 160,318 | 3.6 | — | — | |||||||||||||||||||
Education | 151,238 | 3.4 | — | — | |||||||||||||||||||
Specialty Trade Contractors | 133,455 | 3.0 | — | — | |||||||||||||||||||
CRE - Mixed-Use - Residential | 116,479 | 2.6 | — | — | |||||||||||||||||||
CRE - Medical Office | 108,836 | 2.4 | — | — | |||||||||||||||||||
Homebuilding (tract developers, remodelers) | 101,112 | 2.3 | — | — | |||||||||||||||||||
Merchant Wholesalers, Durable Goods | 93,073 | 2.1 | — | — | |||||||||||||||||||
Motor Vehicle and Parts Dealers | 89,723 | 2.0 | — | — | |||||||||||||||||||
Crop Production | 85,886 | 1.9 | — | — | |||||||||||||||||||
Food Manufacturing | 78,597 | 1.8 | — | — | |||||||||||||||||||
Wood Product Manufacturing | 77,165 | 1.7 | — | — | |||||||||||||||||||
Rental and Leasing Services | 72,878 | 1.6 | — | — | |||||||||||||||||||
Food Services and Drinking Places | 71,327 | 1.6 | 473 | 0.7 | |||||||||||||||||||
Administrative and Support Services | 69,578 | 1.6 | — | — | |||||||||||||||||||
Merchant Wholesalers, Nondurable Goods | 64,564 | 1.5 | — | — | |||||||||||||||||||
Personal and Laundry Services | 61,402 | 1.4 | — | — | |||||||||||||||||||
Fabricated Metal Product Manufacturing | 60,398 | 1.4 | — | — | |||||||||||||||||||
Religious Organizations, Advocacy Groups | 56,869 | 1.3 | — | — | |||||||||||||||||||
Miniwarehouse / Self-Storage | 54,382 | 1.2 | — | — | |||||||||||||||||||
Repair and Maintenance | 53,267 | 1.2 | — | — | |||||||||||||||||||
Industries with >$50 million in outstandings | $ | 3,496,070 | 78.6 | % | $ | 1,910 | 0.1 | % | |||||||||||||||
Industries with <$50 million in outstandings | $ | 950,721 | 21.4 | % | $ | 790 | 0.1 | % | |||||||||||||||
Total Commercial Loans | $ | 4,446,791 | 100.0 | % | $ | 2,700 | 0.1 | % | |||||||||||||||
Consumer Loans and Lease Financings | Total Outstanding Balance | $ Balance of Modified Loans (1) | Modified Loans as a % of Portfolio (excl PPP) (1) | ||||||||||||||||||||
Real Estate-Residential Secured for Personal Purpose | $ | 568,735 | $ | — | — | % | |||||||||||||||||
Real Estate-Home Equity Secured for Personal Purpose | 160,134 | — | — | ||||||||||||||||||||
Loans to Individuals | 26,249 | — | — | ||||||||||||||||||||
Lease Financings | 188,579 | — | — | ||||||||||||||||||||
Total Consumer Loans and Lease Financings | $ | 943,697 | $ | — | — | % | |||||||||||||||||
Total | $ | 5,390,488 | $ | 2,700 | 0.1 | % |
Univest Financial Corporation | ||||||||||||||||||||||||||||||||
Non-GAAP Reconciliation | ||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||||||||||
Management uses 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 the table below for additional information on non-GAAP measures used throughout this earnings release. | ||||||||||||||||||||||||||||||||
As of or for the three months ended, | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | 3/31/2021 | |||||||||||||||||||||||||||
Net income | $ | 20,317 | $ | 17,412 | $ | 20,911 | $ | 20,875 | $ | 32,603 | ||||||||||||||||||||||
Amortization of intangibles, net of tax | 269 | 211 | 169 | 197 | 197 | |||||||||||||||||||||||||||
Net income before amortization of intangibles | $ | 20,586 | $ | 17,623 | $ | 21,080 | $ | 21,072 | $ | 32,800 | ||||||||||||||||||||||
Shareholders' equity | $ | 773,855 | $ | 773,794 | $ | 756,023 | $ | 739,998 | $ | 722,455 | ||||||||||||||||||||||
Goodwill | (175,510) | (175,510) | (172,559) | (172,559) | (172,559) | |||||||||||||||||||||||||||
Other intangibles (a) | (3,936) | (4,210) | (1,922) | (2,073) | (2,326) | |||||||||||||||||||||||||||
Tangible common equity | $ | 594,409 | $ | 594,074 | $ | 581,542 | $ | 565,366 | $ | 547,570 | ||||||||||||||||||||||
Total assets | $ | 7,107,740 | $ | 7,122,421 | $ | 6,979,852 | $ | 6,356,305 | $ | 6,416,665 | ||||||||||||||||||||||
Goodwill | (175,510) | (175,510) | (172,559) | (172,559) | (172,559) | |||||||||||||||||||||||||||
Other intangibles (a) | (3,936) | (4,210) | (1,922) | (2,073) | (2,326) | |||||||||||||||||||||||||||
Tangible assets | $ | 6,928,294 | $ | 6,942,701 | $ | 6,805,371 | $ | 6,181,673 | $ | 6,241,780 | ||||||||||||||||||||||
Average shareholders' equity | $ | 774,358 | $ | 762,334 | $ | 746,185 | $ | 728,750 | $ | 699,736 | ||||||||||||||||||||||
Average goodwill | (175,510) | (173,553) | (172,559) | (172,559) | (172,559) | |||||||||||||||||||||||||||
Average other intangibles (a) | (4,090) | (2,696) | (1,983) | (2,209) | (2,464) | |||||||||||||||||||||||||||
Average tangible common equity | $ | 594,758 | $ | 586,085 | $ | 571,643 | $ | 553,982 | $ | 524,713 | ||||||||||||||||||||||
Loans and leases held for investment, gross | $ | 5,400,786 | $ | 5,310,017 | $ | 5,252,045 | $ | 5,327,313 | $ | 5,415,006 | ||||||||||||||||||||||
Paycheck Protection Program ("PPP") loans | (10,298) | (31,748) | (85,601) | (252,849) | (528,452) | |||||||||||||||||||||||||||
Gross loans and leases, excluding PPP loans | $ | 5,390,488 | $ | 5,278,269 | $ | 5,166,444 | $ | 5,074,464 | $ | 4,886,554 | ||||||||||||||||||||||
Allowance for credit losses, loans and leases | $ | 68,286 | $ | 71,924 | $ | 70,146 | $ | 71,355 | $ | 71,497 | ||||||||||||||||||||||
Gross loans and leases, excluding PPP loans | 5,390,488 | 5,278,269 | 5,166,444 | 5,074,464 | 4,886,554 | |||||||||||||||||||||||||||
Allowance for credit losses, loans and leases as a percentage of gross loans and leases excluding PPP loans | 1.27 | % | 1.36 | % | 1.36 | % | 1.41 | % | 1.46 | % | ||||||||||||||||||||||
(a) Amount does not include mortgage servicing rights |
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