• Univest Financial Corporation Reports First Quarter Results

    Источник: Nasdaq GlobeNewswire / 28 апр 2021 16:15:01   America/New_York

    SOUDERTON, Pa., April 28, 2021 (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, 2021 was $32.6 million, or $1.11 diluted earnings per share, compared to net income of $838 thousand, or $0.03 diluted earnings per share, for the quarter ended March 31, 2020.

    Pre-tax pre-provision income1 for the quarter ended March 31, 2021 was $29.1 million, an increase of $7.0 million, or 31.9%, from the first quarter of 2020.

    COVID-19
    As the re-opening of our local economy continues and progress is made in getting the COVID-19 vaccines distributed and administered, access to all Univest financial center lobbies resumed on April 5, 2021.

    Throughout the COVID-19 pandemic, we have taken various actions to support our customers and the communities we collectively serve, including modifying outstanding loans and leases. Loans and leases that were modified via principal and/or interest deferrals were done so in accordance with Section 4013 of the CARES Act, the Consolidated Appropriations Act, 2021 and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and have not been categorized as troubled debt restructurings. These loans and leases had a combined principal balance of approximately $73.0 million as of March 31, 2021, which represents approximately 1.5% of the loan portfolio, excluding Paycheck Protection Program (PPP) loans1. For more information on these loans, including a breakdown of such loans by type, please see the "Loan Portfolio Overview" table within this document.

    Paycheck Protection Program
    On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law, which provides new COVID-19 relief funds, additional funding under the PPP and the establishment of PPP Second Draw Loans. The Small Business Administration (SBA) announced the taking of certain steps under the PPP to further promote equitable relief for smaller businesses. Under this program, we successfully originated approximately 1,200 PPP loans and secured funding of approximately $168.6 million for our customers as of April 15, 2021.

    As of March 31, 2021, $528.5 million in PPP loan originations remain outstanding. During the quarter, we recorded income of $4.5 million within net interest income related to these loans, of which $2.3 million was the result of forgiveness and pay downs of PPP loans totaling $119.7 million. As of March 31, 2021, we have $9.5 million of net deferred fees on our balance sheet, which represents approximately 55% of the initial deferred fee amount.

    Loans
    Gross loans and leases, excluding PPP loans1, increased $63.5 million, or 5.3% (annualized), from December 31, 2020 primarily due to increases in commercial real estate loans, despite a $58.1 million decrease in commercial line utilization. Gross loans and leases, excluding PPP loans1, increased $437.7 million, or 9.8%, from March 31, 2020 primarily due to increases in commercial real estate loans. As of March 31, 2021, commercial line utilization was 30.2% compared to 34.0% at December 31, 2020 and 38.3% at March 31, 2020.
      
    Deposits
    Total deposits increased $68.9 million, or 5.3% (annualized), from December 31, 2020 primarily due to an increase in consumer and commercial deposits offset by a decrease in public funds and brokered deposits. Total deposits increased $904.3 million, or 20.5%, from March 31, 2020 primarily due to increases in commercial, consumer and public funds deposits.

    Net Interest Income and Margin
    Net interest income of $45.4 million for the first quarter of 2021 increased $2.9 million, or 6.9%, from the first quarter of 2020. The increase in net interest income for the first quarter of 2021 compared to the first quarter of 2020 was primarily due to $4.5 million in PPP income, a $3.5 million decrease in the cost of interest-bearing liabilities and growth in loans partially offset by a decrease in loan and investment yields.

    Net interest margin, on a tax-equivalent basis, was 3.12% for the first quarter of 2021, compared to 3.02% for the fourth quarter of 2020 and 3.48% for the first quarter of 2020. Excess liquidity reduced net interest margin by approximately eleven basis points for the quarter ended March 31, 2021 compared to thirteen basis points for the quarter ended December 31, 2020 and six basis points for the quarter ended March 31, 2020. This excess liquidity was primarily driven by strong deposit balance growth during the last twelve months, which was partially attributable to the various stimulus initiatives associated with the COVID-19 pandemic. PPP loans had a favorable impact on net interest margin of four basis points for the quarter ended March 31, 2021 compared to an unfavorable impact of seven basis points for the quarter ended December 31, 2020 and had no impact for the quarter ended March 31, 2020. Excluding the impacts of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.19% for the quarter ended March 31, 2021 compared to 3.22% for the quarter ended December 31, 2020 and 3.54% for the quarter ended March 31, 2020.

    Noninterest Income
    Noninterest income for the quarter ended March 31, 2021 was $23.3 million, an increase of $4.9 million, or 26.5%, compared to the first quarter of 2020.

    Net gain on mortgage banking activities increased $3.2 million, or 116.4%, for the quarter primarily due to an increase in volume and expansion of margins. Investment advisory commission and fee income increased $442 thousand, or 10.4%, due to increased assets under management driven by favorable market conditions and new customer relationships. Insurance commission and fee income increased $223 thousand, or 4.7%, for the quarter ended March 31, 2021, primarily due to an increase in premiums for group life and health and commercial lines and an increase in contingent commission income of $36 thousand, which was $1.1 million for each of the quarters ended March 31, 2021 and 2020. Contingent commission income is largely recognized in the first quarter of the year.

    Other income increased $1.3 million, for the quarter primarily due to an increase of $967 thousand in fees on risk participation agreements for interest rate swaps driven by increased customer activity due to the current rate environment. Additionally, equity securities measured at fair value increased $384 thousand for the quarter.

    Noninterest Expense
    Noninterest expense for the quarter ended March 31, 2021 was $39.5 million, an increase of $763 thousand, or 2.0%, compared to the first quarter of 2020.

    Salaries, benefits and commissions increased $944 thousand, or 4.0%, for the quarter primarily attributable to additional staff hired to support revenue generation across all business lines, annual merit increases and increased variable compensation due to strong pre-tax pre-provision income during the first quarter of 2021. The increases in salaries, benefits and commissions were offset by $582 thousand of incremental capitalized compensation related to the origination of PPP loans. Professional fees increased $431 thousand, or 32.7%, for the quarter primarily attributable to increased consultant fees in support of our Diversity, Equity and Inclusion and training initiatives. Data processing expenses increased $290 thousand, or 10.5%, for the quarter primarily due to continued investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Deposit insurance premiums increased $132 thousand, or 26.2%, for the quarter primarily due to an increased assessment base due to asset growth.

    Other expense decreased $947 thousand, or 15.6%, for the quarter primarily due to a $656 thousand charge related to the extinguishment of long-term debt that occurred in the first quarter of 2020 and a $295 thousand decrease in travel and entertainment expenses due to COVID-19 related restrictions.

    Asset Quality and Provision for Credit Losses
    Nonperforming assets were $38.2 million at March 31, 2021, compared to $40.5 million at December 31, 2020 and $39.0 million at March 31, 2020.

    Net loan and lease charge-offs were $288 thousand during the first quarter of 2021 compared to $489 thousand for the quarter ended March 31, 2020. The reversal of provision for credit losses was $11.3 million for the first quarter of 2021, of which $12.9 million (after-tax benefit of $10.2 million), or $0.35 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporation’s CECL model partially offset by a reserve increase attributable to loan growth. The provision for credit losses was $21.8 million for the quarter ended March 31, 2020, of which $20.3 million (after-tax charge of $16.1 million), or $0.55 diluted earnings per share, was attributable to adverse changes in economic-related assumptions.

    The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.32% at March 31, 2021, compared to 1.56% at December 31, 2020, and 1.53% at March 31, 2020. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment, excluding PPP loans1, was 1.46% at March 31, 2021 compared to 1.72% at December 31, 2020 and 1.53% at March 31, 2020.

    Tax Provision
    The effective income tax rate was 19.3% for the quarter ended March 31, 2021 compared to an effective income tax rate of (261.2%) for the quarter ended March 31, 2020. The effective tax rate for the quarter ended March 31, 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

    Dividend
    On April 28, 2021, Univest declared a quarterly cash dividend of $0.20 per share. The dividend will be paid on May 26, 2021 to shareholders of record as of May 12, 2021.

    Conference Call
    Univest will host a conference call to discuss first quarter 2021 results on Thursday, April 29, 2021 at 9:00 a.m. EST. Participants may preregister at https://dpregister.com/sreg/10154212/e624e999e4. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through May 28, 2021 by dialing 1-877-344-7529; using Conference ID: 10154212.

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

    About Univest Financial Corporation
    Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $6.4 billion in assets and $4.2 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2021. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  

    This press release of Univest and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business and capital management strategies, markets and products of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future results to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) changes in interest rates; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and credit 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.

    Additionally, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: (1) demand for our products and services may decline; (2) if the economy is unable to remain open, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase; (3) collateral for loans, especially real estate, may decline in value; (4) our allowance for credit losses may have to be increased if borrowers experience financial difficulties; (5) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (6) a material decrease in net income or a net loss over several quarters could result in the elimination of or a decrease in the rate of our quarterly cash dividend; (7) our wealth management revenues may decline with continuing market turmoil; (8) litigation, regulatory enforcement risk and reputation risk regarding our participation in the Paycheck Protection Program and the risk that the Small Business Administration may not fund some or all PPP loan guarantees; (9) our cyber security risks are increased as the result of an increase in the number of employees working remotely; (10) Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs; and (11) further and sustained decline in our stock price or other triggering event could result in an impairment charge being recorded. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

    (UVSP - ER)

    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    March 31, 2021
    (Dollars in thousands)         
              
    Balance Sheet (Period End)03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
    Assets$6,416,665  $6,336,496  $6,382,831  $6,125,312  $5,464,768 
    Investment securities, net of allowance for credit losses 377,506   373,176   368,830   397,852   423,521 
    Loans held for sale 22,636   37,039   14,465   31,082   11,417 
    Loans and leases held for investment, gross 5,415,006   5,306,841   5,211,856   4,951,809   4,448,825 
    Allowance for credit losses, loans and leases 71,497   83,044   91,870   86,217   68,216 
    Loans and leases held for investment, net 5,343,509   5,223,797   5,119,986   4,865,592   4,380,609 
    Total deposits 5,311,592   5,242,715   5,211,603   4,869,329   4,407,303 
    Noninterest-bearing deposits 1,857,547   1,690,663   1,714,505   1,725,819   1,318,270 
    NOW, money market and savings 2,979,834   2,988,277   2,940,879   2,623,025   2,452,021 
    Time deposits 474,211   563,775   556,219   520,485   637,012 
    Borrowings 295,293   311,421   416,104   515,722   323,363 
    Shareholders' equity 722,455   692,472   669,107   654,873   651,551 
              
              
    Balance Sheet (Average)For the three months ended,
     03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
    Assets$6,383,463  $6,353,519  $6,265,605  $6,000,790  $5,409,561 
    Investment securities, net of allowance for credit losses 374,369   369,511   385,221   411,957   441,900 
    Loans and leases, gross 5,325,897   5,253,720   5,070,037   4,836,858   4,388,584 
    Deposits 5,296,147   5,222,452   5,030,398   4,794,669   4,349,984 
    Shareholders' equity 699,736   676,426   661,947   660,950   673,460 
              
              
    Asset Quality Data (Period End)          
     03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
    Nonaccrual loans and leases, including nonaccrual troubled debt restructured         
    loans and leases$29,996  $31,692  $30,019  $26,141  $36,626 
    Accruing loans and leases 90 days or more past due 664   1,392   3,573   1,193   1,777 
    Accruing troubled debt restructured loans and leases 52   53   53   53   54 
    Total nonperforming loans and leases 30,712   33,137   33,645   27,387   38,457 
    Other real estate owned 7,481   7,355   8,270   8,642   516 
    Total nonperforming assets$38,193  $40,492  $41,915  $36,029  $38,973 
    Nonaccrual loans and leases / Loans and leases held for investment 0.55%  0.60%  0.58%  0.53%  0.82%
    Nonperforming loans and leases / Loans and leases held for investment 0.57%  0.62%  0.65%  0.55%  0.86%
    Nonperforming assets / Total assets 0.60%  0.64%  0.66%  0.59%  0.71%
              
    Allowance for credit losses, loans and leases$71,497  $83,044  $91,870  $86,217  $68,216 
    Allowance for credit losses, loans and leases / Loans and leases held for investment 1.32%  1.56%  1.76%  1.74%  1.53%
    Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1) 1.46%  1.72%  1.95%  1.94%  1.53%
    Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment 238.36%  262.03%  306.04%  329.82%  186.25%
    Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment 232.80%  250.61%  273.06%  314.81%  177.38%
              
     For the three months ended,
     03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
    Net loan and lease charge-offs (recoveries)$288  $618  $(35) $3,576  $489 
    Net loan and lease charge-offs (annualized)/Average loans and leases 0.02%  0.05%  (0.00%)  0.30%  0.04%
              
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included at the end of this document.



    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    March 31, 2021
    (Dollars in thousands, except per share data)         
     For the three months ended,
    For the period:03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
    Interest income$51,457  $51,334  $50,612 $49,980  $52,019 
    Interest expense 6,043   6,813   6,758  6,462   9,551 
    Net interest income 45,414   44,521   43,854  43,518   42,468 
    Provision (reversal of provision) for credit losses (11,283)  (8,721)  3,935  23,737   21,843 
    Net interest income after provision for credit losses 56,697   53,242   39,919  19,781   20,625 
    Noninterest income:         
    Trust fee income 2,034   1,974   1,915  1,924   1,890 
    Service charges on deposit accounts 1,282   1,371   1,187  890   1,397 
    Investment advisory commission and fee income 4,697   4,144   4,005  3,540   4,255 
    Insurance commission and fee income 4,955   3,512   3,776  4,067   4,732 
    Other service fee income 2,192   2,092   2,093  1,488   1,870 
    Bank owned life insurance income 717   733   741  732   734 
    Net gain on sales of investment securities 65   54   57  65   695 
    Net gain on mortgage banking activities 5,938   4,323   5,860  3,515   2,744 
    Other income 1,370   1,936   2,171  1,779   67 
    Total noninterest income 23,250   20,139   21,805  18,000   18,384 
    Noninterest expense:         
    Salaries, benefits and commissions 24,780   23,613   24,059  21,700   23,836 
    Net occupancy 2,739   2,697   2,609  2,478   2,574 
    Equipment 946   951   972  923   995 
    Data processing 3,050   2,961   2,862  2,750   2,760 
    Professional fees 1,748   1,436   1,321  1,264   1,317 
    Marketing and advertising 280   575   463  535   402 
    Deposit insurance premiums 636   765   707  615   504 
    Intangible expenses 249   282   283  321   330 
    Restructuring charges -   1,439   -  -   - 
    Other expense 5,112   7,015   5,251  5,374   6,059 
    Total noninterest expense 39,540   41,734   38,527  35,960   38,777 
    Income before taxes 40,407   31,647   23,197  1,821   232 
    Income tax expense (benefit) 7,804   5,773   5,078  (264)  (606)
    Net income$32,603  $25,874  $18,119 $2,085  $838 
    Net income per share:         
    Basic$1.11  $0.88  $0.62 $0.07  $0.03 
    Diluted$1.11  $0.88  $0.62 $0.07  $0.03 
    Dividends declared per share$0.20  $-  $0.20 $0.20  $0.20 
    Weighted average shares outstanding 29,327,432   29,274,915   29,226,627  29,187,197   29,286,200 
    Period end shares outstanding 29,379,575   29,295,052   29,241,302  29,201,985   29,164,782 


    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    March 31, 2021
              
              
              
     For the three months ended,
    Profitability Ratios (annualized)03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
              
    Return on average assets 2.07%  1.62%  1.15%  0.14%  0.06%
    Return on average assets, excluding restructuring 2.07%  1.69%  1.15%  0.14%  0.06%
    charges (1)         
    Return on average shareholders' equity 18.90%  15.22%  10.89%  1.27%  0.50%
    Return on average shareholders' equity, excluding 18.90%  15.89%  10.89%  1.27%  0.50%
    restructuring charges (1)         
    Return on average tangible common equity (1) 25.19%  20.53%  14.82%  1.73%  0.68%
    Return on average tangible common equity, excluding 25.19%  21.44%  14.82%  1.73%  0.68%
    restructuring charges (1)         
    Net interest margin (FTE) 3.12%  3.02%  3.02%  3.18%  3.48%
    Efficiency ratio (2) 57.0%  63.8%  58.0%  57.7%  62.8%
    Efficiency ratio, excluding restructuring charges (1) (2) 57.0%  61.6%  58.0%  57.7%  62.8%
              
    Capitalization Ratios         
              
    Dividends declared to net income (3) 18.0%  0.0%  32.3%  278.7%  699.9%
    Shareholders' equity to assets (Period End) 11.26%  10.93%  10.48%  10.69%  11.92%
    Tangible common equity to tangible assets (1) 8.77%  8.40%  7.96%  8.06%  8.99%
    Common equity book value per share$24.59  $23.64  $22.88  $22.43  $22.34 
    Tangible common equity book value per share (1)$18.64  $17.66  $16.89  $16.41  $16.31 
              
    Regulatory Capital Ratios (Period End)          
    Tier 1 leverage ratio 9.45%  9.08%  8.97%  9.15%  9.90%
    Common equity tier 1 risk-based capital ratio 11.08%  10.76%  10.52%  10.73%  10.79%
    Tier 1 risk-based capital ratio 11.08%  10.76%  10.52%  10.73%  10.79%
    Total risk-based capital ratio 15.13%  15.31%  15.35%  13.72%  13.65%
              
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.   
    (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.  
    (3) As announced in the September 30, 2020 Earnings Release, the Corporation changed the timing of future dividend declarations and payments.


    Univest Financial Corporation 
    Average Balances and Interest Rates (Unaudited) 
      For the Three Months Ended,   
    Tax Equivalent BasisMarch 31, 2021 December 31, 2020 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$237,548 $560.10%$296,258 $820.11%
    U.S. government obligations 6,998  362.09  6,998  362.05 
    Obligations of state and political subdivisions 11,544  1053.69  14,269  1293.60 
    Other debt and equity securities 355,827  1,2671.44  348,244  1,2371.41 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 26,368  3485.35  29,838  4385.84 
    Total interest-earning deposits, investments and other interest-earning assets 638,285  1,8121.15  695,607  1,9221.10 
                
    Commercial, financial, and agricultural loans 782,208  6,7983.52  824,374  7,3663.55 
    Paycheck Protection Program loans 506,939  4,5243.62  497,035  3,1332.51 
    Real estate—commercial and construction loans 2,621,981  24,4583.78  2,518,056  24,3883.85 
    Real estate—residential loans 1,037,000  9,8733.86  1,025,818  10,3454.01 
    Loans to individuals 26,447  2654.05  27,427  2894.19 
    Municipal loans and leases 245,638  2,5304.18  258,627  2,7764.27 
    Lease financings 105,684  1,7376.67  102,383  1,6906.57 
    Gross loans and leases 5,325,897  50,1853.82  5,253,720  49,9873.79 
    Total interest-earning assets 5,964,182  51,9973.54  5,949,327  51,9093.47 
    Cash and due from banks 55,311     53,360    
    Allowance for credit losses, loans and leases (83,254)    (92,766)   
    Premises and equipment, net 55,826     55,653    
    Operating lease right-of-use assets 34,033     34,272    
    Other assets 357,365     353,673    
    Total assets$6,383,463    $6,353,519    
             
    Liabilities:        
    Interest-bearing checking deposits$817,940 $4900.24%$838,323 $5370.25%
    Money market savings 1,243,673  8530.28  1,213,585  8980.29 
    Regular savings 959,232  2980.13  905,918  3410.15 
    Time deposits 525,800  1,7591.36  582,782  2,0341.39 
    Total time and interest-bearing deposits 3,546,645  3,4000.39  3,540,608  3,8100.43 
             
    Short-term borrowings 17,894  20.05  15,091  20.05 
    Long-term debt 101,333  3481.39  169,623  6111.43 
    Subordinated notes 183,340  2,2935.07  193,244  2,3904.92 
    Total borrowings 302,567  2,6433.54  377,958  3,0033.16 
    Total interest-bearing liabilities 3,849,212  6,0430.64  3,918,566  6,8130.69 
    Noninterest-bearing deposits 1,749,502     1,681,844    
    Operating lease liabilities 37,415     37,616    
    Accrued expenses and other liabilities 47,598     39,067    
    Total liabilities 5,683,727     5,677,093    
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 296,136     296,810    
    Retained earnings and other equity 245,816     221,832    
    Total shareholders' equity 699,736     676,426    
    Total liabilities and shareholders' equity$6,383,463    $6,353,519    
    Net interest income $45,954   $45,096  
             
    Net interest spread  2.90   2.78 
    Effect of net interest-free funding sources  0.22   0.24 
    Net interest margin  3.12%  3.02%
    Ratio of average interest-earning assets to average interest-bearing liabilities 154.95%    151.82%   
             
    Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
          Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been  
          included in the average loan balances. Tax-equivalent amounts for the three months ended March 31, 2021 and December 31, 2020 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 Basis2021
    		 2020
    		 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$237,548 $560.10%$118,108 $3251.11%
    U.S. government obligations 6,998  362.09  7,298  372.04 
    Obligations of state and political subdivisions 11,544  1053.69  33,595  2893.46 
    Other debt and equity securities 355,827  1,2671.44  401,007  2,6682.68 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 26,368  3485.35  31,450  5276.74 
    Total interest-earning deposits, investments and other interest-earning assets 638,285  1,8121.15  591,458  3,8462.62 
                
    Commercial, financial, and agricultural loans 782,208  6,7983.52  821,267  8,6314.23 
    Paycheck Protection Program loans 506,939  4,5243.62  -  -- 
    Real estate—commercial and construction loans 2,621,981  24,4583.78  2,139,369  23,9174.50 
    Real estate—residential loans 1,037,000  9,8733.86  991,550  11,0524.48 
    Loans to individuals 26,447  2654.05  30,016  4075.45 
    Municipal loans and leases 245,638  2,5304.18  317,006  3,2654.14 
    Lease financings 105,684  1,7376.67  89,376  1,5546.99 
    Gross loans and leases 5,325,897  50,1853.82  4,388,584  48,8264.47 
    Total interest-earning assets 5,964,182  51,9973.54  4,980,042  52,6724.25 
    Cash and due from banks 55,311     50,891    
    Allowance for credit losses, loans and leases (83,254)    (44,372)   
    Premises and equipment, net 55,826     56,399    
    Operating lease right-of-use assets 34,033     34,545    
    Other assets 357,365     332,056    
    Total assets$6,383,463    $5,409,561    
             
    Liabilities:        
    Interest-bearing checking deposits$817,940 $4900.24%$584,391 $7960.55%
    Money market savings 1,243,673  8530.28  1,057,336  2,9031.10 
    Regular savings 959,232  2980.13  816,760  7920.39 
    Time deposits 525,800  1,7591.36  602,903  2,9151.94 
    Total time and interest-bearing deposits 3,546,645  3,4000.39  3,061,390  7,4060.97 
             
    Short-term borrowings 17,894  20.05  40,126  1061.06 
    Long-term debt 101,333  3481.39  169,205  7641.82 
    Subordinated notes 183,340  2,2935.07  94,847  1,2755.41 
    Total borrowings 302,567  2,6433.54  304,178  2,1452.84 
    Total interest-bearing liabilities 3,849,212  6,0430.64  3,365,568  9,5511.14 
    Noninterest-bearing deposits 1,749,502     1,288,594    
    Operating lease liabilities 37,415     37,766    
    Accrued expenses and other liabilities 47,598     44,173    
    Total liabilities 5,683,727     4,736,101    
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 296,136     295,318    
    Retained earnings and other equity 245,816     220,358    
    Total shareholders' equity 699,736     673,460    
    Total liabilities and shareholders' equity$6,383,463    $5,409,561    
    Net interest income $45,954   $43,121  
             
    Net interest spread  2.90   3.11 
    Effect of net interest-free funding sources  0.22   0.37 
    Net interest margin  3.12%  3.48%
    Ratio of average interest-earning assets to average interest-bearing liabilities 154.95%    147.97%   
             
    Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
          Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been 
          included in the average loan balances. Tax-equivalent amounts for the three months ended March 31, 2021 and 2020 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, 2021 
    Industry DescriptionTotal Outstanding
    Balance (excl PPP)    		 % of
    Commercial
    Loan Portfolio    		 $ Balance of
    Modified Loans (1)    		 Modified Loans
    as a % of
    Portfolio (1)    		 
    CRE - Retail$356,690 8.8%$- -%
    Animal Production 269,608 6.7  27 - 
    CRE - Office 247,320 6.1  - - 
    CRE - 1-4 Family Residential Investment 246,643 6.1  1,097 0.4 
    CRE - Multi-family 213,065 5.3  - - 
    CRE - Industrial / Warehouse 180,254 4.5  738 0.4 
    Hotels & Motels (Accommodation) 174,751 4.3  35,222 20.2 
    Education 155,589 3.9  2,638 1.7 
    Nursing and Residential Care Facilities 152,016 3.8  - - 
    CRE - Mixed-Use - Residential 120,629 3.0  3,530 2.9 
    Specialty Trade Contractors 117,204 2.9  85 0.1 
    Real Estate Lenders, Secondary Market Financing 106,027 2.6  12 - 
    CRE - Medical Office 93,834 2.3  - - 
    Homebuilding (tract developers, remodelers) 81,879 2.0  - - 
    Merchant Wholesalers, Durable Goods 73,063 1.8  - - 
    Crop Production 69,853 1.7  - - 
    Motor Vehicle and Parts Dealers 65,839 1.6  - - 
    Rental and Leasing Services 61,096 1.5  - - 
    Fabricated Metal Product Manufacturing 60,472 1.5  - - 
    Administrative and Support Services 58,298 1.4  101 0.2 
    Wood Product Manufacturing 57,180 1.4  - - 
    Food Services and Drinking Places 53,168 1.3  3,300 6.2 
    Industries with >$50 million in outstandings$3,014,478 74.5%$46,750 1.6%
    Industries with <$50 million in outstandings$1,026,671 25.5%$24,277 2.4%
    Total Commercial Loans$4,041,149 100.0%$71,027 1.8%
             
             
    Consumer Loans and Lease FinancingsTotal Outstanding
    Balance    		   $ Balance of
    Modified Loans (1)    		 Modified Loans
    as a % of
    Portfolio (1)    		 
    Real Estate-Residential Secured for Personal Purpose$494,349   $1,712 0.3%
    Real Estate-Home Equity Secured for Personal Purpose 162,529    84 0.1 
    Loans to Individuals 25,468    - - 
    Lease Financings 163,059    212 0.1 
    Total - Consumer Loans and Lease Financings$845,405   $2,008 0.2%
             
    Total$4,886,554   $73,035 1.5%
             
    (1) Loan modifications referenced above were made in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and therefore were not classified as TDRs as of March 31, 2021.


    Univest Financial Corporation
    Non-GAAP Reconciliation
    March 31, 2021
              
     
     
    Non-GAAP to GAAP Reconciliation
    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.
              
     For the three months ended,
     03/31/21 12/31/20 09/30/20 06/30/20 03/31/20
    Restructuring charges (a)$-  $1,439  $-  $-  $- 
    Tax effect of restructuring charges -   (302)  -   -   - 
    Restructuring charges, net of tax$-  $1,137  $-  $-  $- 
              
    Shareholders' equity$722,455  $692,472  $669,107  $654,873  $651,551 
    Goodwill (172,559)  (172,559)  (172,559)  (172,559)  (172,559)
    Other intangibles (b) (2,210)  (2,458)  (2,736)  (3,017)  (3,333)
    Tangible common equity$547,686  $517,455  $493,812  $479,297  $475,659 
              
    Total assets$6,416,665  $6,336,496  $6,382,831  $6,125,312  $5,464,768 
    Goodwill (172,559)  (172,559)  (172,559)  (172,559)  (172,559)
    Other intangibles (b) (2,210)  (2,458)  (2,736)  (3,017)  (3,333)
    Tangible assets$6,241,896  $6,161,479  $6,207,536  $5,949,736  $5,288,876 
              
    Average shareholders' equity$699,736  $676,426  $661,947  $660,950  $673,460 
    Average goodwill (172,559)  (172,559)  (172,559)  (172,559)  (172,559)
    Average other intangibles (b) (2,344)  (2,606)  (2,889)  (3,185)  (3,506)
    Average tangible common equity$524,833  $501,261  $486,499  $485,206  $497,395 
              
    Net income before taxes$40,407  $31,647  $23,197  $1,821  $232 
    Provision for credit losses (11,283)  (8,721)  3,935   23,737   21,843 
    Pre-tax pre-provision income$29,124  $22,926  $27,132  $25,558  $22,075 
              
    Loans and leases held for investment, gross$5,415,006  $5,306,841  $5,211,856  $4,951,809  $4,448,825 
    Paycheck Protection Program ("PPP") loans (528,452)  (483,773)  (501,580)  (498,978)  - 
    Gross loans and leases excluding PPP loans$4,886,554  $4,823,068  $4,710,276  $4,452,831  $4,448,825 
              
    (a) Associated with financial center optimization plan         
    (b) Amount does not include servicing rights         

     

     


    CONTACT:
Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net

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