Pre-tax pre-provision income1 for the quarter ended
On
COVID-19
As a result of the impact of COVID-19, we have taken various actions to support our customers and the communities we collectively serve, including modifying outstanding loans and leases and waiving certain deposit service charges. Loans and leases that were modified via principal and/or interest deferrals were done so 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 have not been categorized as troubled debt restructurings. These loans and leases have a combined principal balance of approximately
CECL
The Corporation adopted Accounting Standard Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”) effective
Loans
Gross loans and leases, excluding PPP loans, increased
Deposits
Total deposits increased
Net Interest Income and Margin
Net interest income of
Net interest margin, on a tax-equivalent basis, was 3.02% for the third quarter of 2020, compared to 3.18% for the second quarter of 2020 and 3.52% for the third quarter of 2019. Excess liquidity reduced net interest margin by approximately eighteen basis points for the quarter ended
Noninterest Income
Noninterest income for the quarter ended
Net gain on mortgage banking activities increased
Other income increased
Service charges on deposit accounts decreased
Other service fee income decreased
Noninterest Expense
Noninterest expense for the quarter ended
Salaries, benefits and commissions increased
Asset Quality and Provision for Credit Losses
Nonperforming assets were
Net loan and lease recoveries were
Net loan and lease charge-offs were
The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment, was 1.76% at
Tax Provision
The effective income tax rate was 16.7% for the nine months ended
Dividend
On
It is the Corporation's intention to change the timing of future dividend declarations and payments. Historically, the next dividend would have been declared in December and paid in early January. Under the new timing, the Corporation anticipates that the dividend would be declared in January, in conjunction with the fourth quarter 2020 earnings release, and paid in February. The Corporation also anticipates that future dividends would then be declared in conjunction with quarterly earnings releases and paid in the following month. It is important to note that this change is not anticipated to impact the number of potential dividends paid in a year. There were four dividend payments in 2020 and there would be potentially four payments in each subsequent years subject to declaration by the Corporation's Board of Directors.
Conference Call
Univest will host a conference call to discuss third quarter 2020 results on
1Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included within this document.
About
This press release of Univest and the reports Univest files with the
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 gradual 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 substantially reopen, and high 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 loan 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) as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities; (7) a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of our quarterly cash dividend; (8) our wealth management revenues may decline with continuing market turmoil; (9) litigation, regulatory enforcement risk and reputation risk regarding our participation in the Paycheck Protection Program and the risk that the
(UVSP - ER)
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Balance Sheet (Period End) | |||||||||||||||||||||||||||||
Assets | $ | 6,382,831 | $ | 6,125,312 | $ | 5,464,768 | $ | 5,380,924 | $ | 5,353,611 | |||||||||||||||||||
Investment securities, net of allowance for credit losses | 368,830 | 397,852 | 423,521 | 441,599 | 448,447 | ||||||||||||||||||||||||
Loans held for sale | 14,465 | 31,082 | 11,417 | 5,504 | 2,893 | ||||||||||||||||||||||||
Loans and leases held for investment, gross | 5,211,856 | 4,951,809 | 4,448,825 | 4,386,836 | 4,251,933 | ||||||||||||||||||||||||
Allowance for credit losses, loans and leases | 91,870 | 86,217 | 68,216 | 35,331 | 33,662 | ||||||||||||||||||||||||
Loans and leases held for investment, net | 5,119,986 | 4,865,592 | 4,380,609 | 4,351,505 | 4,218,271 | ||||||||||||||||||||||||
Total deposits | 5,211,603 | 4,869,329 | 4,407,303 | 4,360,075 | 4,337,991 | ||||||||||||||||||||||||
Noninterest-bearing deposits | 1,714,505 | 1,725,819 | 1,318,270 | 1,279,681 | 1,198,425 | ||||||||||||||||||||||||
NOW, money market and savings | 2,940,879 | 2,623,025 | 2,452,021 | 2,474,384 | 2,421,466 | ||||||||||||||||||||||||
Time deposits | 556,219 | 520,485 | 637,012 | 606,010 | 718,100 | ||||||||||||||||||||||||
Borrowings | 416,104 | 515,722 | 323,363 | 263,596 | 273,855 | ||||||||||||||||||||||||
Shareholders' equity | 669,107 | 654,873 | 651,551 | 675,122 | 664,299 | ||||||||||||||||||||||||
Balance Sheet (Average) | For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
Assets | $ | 6,265,605 | $ | 6,000,790 | $ | 5,409,561 | $ | 5,400,591 | $ | 5,317,867 | $ | 5,892,918 | $ | 5,165,339 | |||||||||||||||
Investment securities, net of allowance for credit losses | 385,221 | 411,957 | 441,900 | 445,932 | 460,099 | 412,924 | 467,202 | ||||||||||||||||||||||
Loans and leases, gross | 5,070,037 | 4,836,858 | 4,388,584 | 4,280,430 | 4,170,485 | 4,766,274 | 4,104,198 | ||||||||||||||||||||||
Deposits | 5,030,398 | 4,794,669 | 4,349,984 | 4,374,586 | 4,288,170 | 4,726,132 | 4,122,902 | ||||||||||||||||||||||
Shareholders' equity | 661,947 | 660,950 | 673,460 | 672,647 | 659,523 | 665,439 | 645,647 | ||||||||||||||||||||||
Asset Quality Data (Period End) | |||||||||||||||||||||||||||||
Nonaccrual loans and leases, including nonaccrual troubled debt restructured | |||||||||||||||||||||||||||||
loans and leases | $ | 30,019 | $ | 26,141 | $ | 36,626 | $ | 38,578 | $ | 37,368 | |||||||||||||||||||
Accruing loans and leases 90 days or more past due | 3,573 | 1,193 | 1,777 | 143 | 2,488 | ||||||||||||||||||||||||
Accruing troubled debt restructured loans and leases | 53 | 53 | 54 | 54 | 54 | ||||||||||||||||||||||||
Total nonperforming loans and leases | 33,645 | 27,387 | 38,457 | 38,775 | 39,910 | ||||||||||||||||||||||||
Other real estate owned | 8,270 | 8,642 | 516 | 516 | 495 | ||||||||||||||||||||||||
Total nonperforming assets | 41,915 | 36,029 | 38,973 | 39,291 | 40,405 | ||||||||||||||||||||||||
Nonaccrual loans and leases / Loans and leases held for investment | 0.58 | % | 0.53 | % | 0.82 | % | 0.88 | % | 0.88 | % | |||||||||||||||||||
Nonperforming loans and leases / Loans and leases held for investment | 0.65 | % | 0.55 | % | 0.86 | % | 0.88 | % | 0.94 | % | |||||||||||||||||||
Nonperforming assets / Total assets | 0.66 | % | 0.59 | % | 0.71 | % | 0.73 | % | 0.75 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases | 91,870 | 86,217 | 68,216 | 35,331 | 33,662 | ||||||||||||||||||||||||
Allowance for credit losses, loans and leases / Loans and leases held for investment | 1.76 | % | 1.74 | % | 1.53 | % | 0.81 | % | 0.79 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1) | 1.95 | % | 1.94 | % | 1.53 | % | 0.81 | % | 0.79 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment | 306.04 | % | 329.82 | % | 186.25 | % | 91.58 | % | 90.08 | % | |||||||||||||||||||
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment | 273.06 | % | 314.81 | % | 177.38 | % | 91.12 | % | 84.34 | % | |||||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||||||
Net loan and lease (recoveries) charge-offs | $ | (35 | ) | $ | 3,576 | $ | 489 | $ | 558 | $ | 468 | $ | 4,030 | $ | 1,993 | ||||||||||||||
Net loan and lease (recoveries) charge-offs (annualized)/Average loans and leases | (0.00 | %) | 0.30 | % | 0.04 | % | 0.05 | % | 0.04 | % | 0.11 | % | 0.06 | % | |||||||||||||||
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included within this document. | |||||||||||||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||
For the three months ended, | For the nine months ended, | ||||||||||||||||||||||||
For the period: | |||||||||||||||||||||||||
Interest income | $ | 50,612 | $ | 49,980 | $ | 52,019 | $ | 53,369 | $ | 54,300 | $ | 152,611 | $ | 160,724 | |||||||||||
Interest expense | 6,758 | 6,462 | 9,551 | 10,940 | 11,655 | 22,771 | 33,921 | ||||||||||||||||||
Net interest income | 43,854 | 43,518 | 42,468 | 42,429 | 42,645 | 129,840 | 126,803 | ||||||||||||||||||
Provision for credit losses | 3,935 | 23,737 | 21,843 | 2,225 | 1,533 | 49,515 | 6,286 | ||||||||||||||||||
Net interest income after provision for credit losses | 39,919 | 19,781 | 20,625 | 40,204 | 41,112 | 80,325 | 120,517 | ||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||
Trust fee income | 1,915 | 1,924 | 1,890 | 1,912 | 1,973 | 5,729 | 5,914 | ||||||||||||||||||
Service charges on deposit accounts | 1,187 | 890 | 1,397 | 1,551 | 1,513 | 3,474 | 4,395 | ||||||||||||||||||
Investment advisory commission and fee income | 4,005 | 3,540 | 4,255 | 4,064 | 4,032 | 11,800 | 11,876 | ||||||||||||||||||
Insurance commission and fee income | 3,776 | 4,067 | 4,732 | 3,609 | 3,877 | 12,575 | 12,962 | ||||||||||||||||||
Other service fee income | 2,093 | 1,488 | 1,870 | 2,229 | 2,255 | 5,451 | 7,112 | ||||||||||||||||||
Bank owned life insurance income | 741 | 732 | 734 | 741 | 743 | 2,207 | 2,438 | ||||||||||||||||||
Net gain on sales of investment securities | 57 | 65 | 695 | 13 | 33 | 817 | 41 | ||||||||||||||||||
Net gain on mortgage banking activities | 5,860 | 3,515 | 2,744 | 1,038 | 1,629 | 12,119 | 2,908 | ||||||||||||||||||
Other income | 2,171 | 1,779 | 67 | 1,013 | 544 | 4,017 | 1,606 | ||||||||||||||||||
Total noninterest income | 21,805 | 18,000 | 18,384 | 16,170 | 16,599 | 58,189 | 49,252 | ||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||
Salaries, benefits and commissions | 24,059 | 21,700 | 23,836 | 21,933 | 22,758 | 69,595 | 66,356 | ||||||||||||||||||
Net occupancy | 2,609 | 2,478 | 2,574 | 2,534 | 2,475 | 7,661 | 7,687 | ||||||||||||||||||
Equipment | 972 | 923 | 995 | 1,027 | 1,088 | 2,890 | 3,143 | ||||||||||||||||||
Data processing | 2,862 | 2,750 | 2,760 | 2,685 | 2,624 | 8,372 | 7,765 | ||||||||||||||||||
Professional fees | 1,321 | 1,264 | 1,317 | 1,475 | 1,517 | 3,902 | 4,088 | ||||||||||||||||||
Marketing and advertising | 463 | 535 | 402 | 710 | 558 | 1,400 | 1,884 | ||||||||||||||||||
Deposit insurance premiums | 707 | 615 | 504 | 342 | (444 | ) | 1,826 | 438 | |||||||||||||||||
Intangible expenses | 283 | 321 | 330 | 374 | 378 | 934 | 1,221 | ||||||||||||||||||
Other expense | 5,251 | 5,374 | 6,059 | 6,400 | 5,313 | 16,684 | 16,028 | ||||||||||||||||||
Total noninterest expense | 38,527 | 35,960 | 38,777 | 37,480 | 36,267 | 113,264 | 108,610 | ||||||||||||||||||
Income before taxes | 23,197 | 1,821 | 232 | 18,894 | 21,444 | 25,250 | 61,159 | ||||||||||||||||||
Income tax (benefit) expense | 5,078 | (264 | ) | (606 | ) | 3,384 | 3,782 | 4,208 | 10,950 | ||||||||||||||||
Net income | $ | 18,119 | $ | 2,085 | $ | 838 | $ | 15,510 | $ | 17,662 | $ | 21,042 | $ | 50,209 | |||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | $ | 0.62 | $ | 0.07 | $ | 0.03 | $ | 0.53 | $ | 0.60 | $ | 0.72 | $ | 1.71 | |||||||||||
Diluted | $ | 0.62 | $ | 0.07 | $ | 0.03 | $ | 0.53 | $ | 0.60 | $ | 0.72 | $ | 1.71 | |||||||||||
Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | |||||||||||
Weighted average shares outstanding | 29,226,627 | 29,187,197 | 29,286,200 | 29,327,169 | 29,305,524 | 29,233,317 | 29,290,309 | ||||||||||||||||||
Period end shares outstanding | 29,241,302 | 29,201,985 | 29,164,782 | 29,334,629 | 29,312,534 | 29,241,302 | 29,312,534 | ||||||||||||||||||
Consolidated Selected Financial Data (Unaudited) | ||||||||||||||||||||||||||||
For the three months ended, | For the nine months ended, | |||||||||||||||||||||||||||
Profitability Ratios (annualized) | ||||||||||||||||||||||||||||
Return on average assets | 1.15 | % | 0.14 | % | 0.06 | % | 1.14 | % | 1.32 | % | 0.48 | % | 1.30 | % | ||||||||||||||
Return on average shareholders' equity | 10.89 | % | 1.27 | % | 0.50 | % | 9.15 | % | 10.62 | % | 4.22 | % | 10.40 | % | ||||||||||||||
Return on average tangible common equity (1) | 14.82 | % | 1.73 | % | 0.68 | % | 12.40 | % | 14.52 | % | 5.74 | % | 14.33 | % | ||||||||||||||
Net interest margin (FTE) | 3.02 | % | 3.18 | % | 3.48 | % | 3.44 | % | 3.52 | % | 3.21 | % | 3.64 | % | ||||||||||||||
Efficiency ratio (2) | 58.0 | % | 57.7 | % | 62.8 | % | 63.0 | % | 60.4 | % | 59.5 | % | 60.8 | % | ||||||||||||||
Capitalization Ratios | ||||||||||||||||||||||||||||
Dividends declared to net income | 32.3 | % | 278.7 | % | 699.9 | % | 37.8 | % | 33.2 | % | 83.3 | % | 35.0 | % | ||||||||||||||
Shareholders' equity to assets (Period End) | 10.48 | % | 10.69 | % | 11.92 | % | 12.55 | % | 12.41 | % | 10.48 | % | 12.41 | % | ||||||||||||||
Tangible common equity to tangible assets (1) | 7.96 | % | 8.06 | % | 8.99 | % | 9.59 | % | 9.42 | % | 7.96 | % | 9.42 | % | ||||||||||||||
Common equity book value per share | $ | 22.88 | $ | 22.43 | $ | 22.34 | $ | 23.01 | $ | 22.66 | $ | 22.88 | $ | 22.66 | ||||||||||||||
Tangible common equity book value per share (1) | $ | 16.89 | $ | 16.41 | $ | 16.31 | $ | 17.01 | $ | 16.64 | $ | 16.89 | $ | 16.64 | ||||||||||||||
Regulatory Capital Ratios (Period End) | ||||||||||||||||||||||||||||
Tier 1 leverage ratio | 8.97 | % | 9.15 | % | 9.90 | % | 10.02 | % | 9.97 | % | 8.97 | % | 9.97 | % | ||||||||||||||
Common equity tier 1 risk-based capital ratio | 10.52 | % | 10.73 | % | 10.79 | % | 11.03 | % | 11.03 | % | 10.52 | % | 11.03 | % | ||||||||||||||
Tier 1 risk-based capital ratio | 10.52 | % | 10.73 | % | 10.79 | % | 11.03 | % | 11.03 | % | 10.52 | % | 11.03 | % | ||||||||||||||
Total risk-based capital ratio | 15.35 | % | 13.72 | % | 13.65 | % | 13.78 | % | 13.81 | % | 15.35 | % | 13.81 | % | ||||||||||||||
(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. | ||||||||||||||||||||||||||||
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, | For the nine months ended, | |||||||||||||||||||||||||||
Shareholders' equity | $ | 669,107 | $ | 654,873 | $ | 651,551 | $ | 675,122 | $ | 664,299 | $ | 669,107 | $ | 664,299 | ||||||||||||||
(172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | |||||||||||||||
Other intangibles (a) | (2,736 | ) | (3,017 | ) | (3,333 | ) | (3,658 | ) | (4,026 | ) | (2,736 | ) | (4,026 | ) | ||||||||||||||
Tangible common equity | $ | 493,812 | $ | 479,297 | $ | 475,659 | $ | 498,905 | $ | 487,714 | $ | 493,812 | $ | 487,714 | ||||||||||||||
Total assets | $ | 6,382,831 | $ | 6,125,312 | $ | 5,464,768 | $ | 5,380,924 | $ | 5,353,611 | $ | 6,382,831 | $ | 5,353,611 | ||||||||||||||
(172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | |||||||||||||||
Other intangibles (a) | (2,736 | ) | (3,017 | ) | (3,333 | ) | (3,658 | ) | (4,026 | ) | (2,736 | ) | (4,026 | ) | ||||||||||||||
Tangible assets | $ | 6,207,536 | $ | 5,949,736 | $ | 5,288,876 | $ | 5,204,707 | $ | 5,177,026 | $ | 6,207,536 | $ | 5,177,026 | ||||||||||||||
Average shareholders' equity | $ | 661,947 | $ | 660,950 | $ | 673,460 | $ | 675,647 | $ | 659,523 | $ | 665,439 | $ | 645,647 | ||||||||||||||
Average goodwill | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | (172,559 | ) | ||||||||||||||
Average other intangibles (a) | (2,889 | ) | (3,185 | ) | (3,506 | ) | (3,853 | ) | (4,234 | ) | (3,193 | ) | (4,624 | ) | ||||||||||||||
Average tangible common equity | $ | 486,499 | $ | 485,206 | $ | 497,395 | $ | 499,235 | $ | 482,730 | $ | 489,687 | $ | 468,464 | ||||||||||||||
Net income before taxes | $ | 23,197 | $ | 1,821 | $ | 232 | $ | 18,894 | $ | 21,444 | $ | 25,250 | $ | 61,159 | ||||||||||||||
Provision for credit losses | 3,935 | 23,737 | 21,843 | 2,225 | 1,533 | 49,515 | 6,286 | |||||||||||||||||||||
Pre-tax pre-provision income | $ | 27,132 | $ | 25,558 | $ | 22,075 | $ | 21,119 | $ | 22,977 | $ | 74,765 | $ | 67,445 | ||||||||||||||
Loans and leases held for investment, gross | $ | 5,211,856 | $ | 4,951,809 | $ | 4,448,825 | $ | 4,386,836 | $ | 4,251,933 | $ | 5,211,856 | $ | 4,251,933 | ||||||||||||||
Paycheck Protection Program ("PPP") loans | (501,580 | ) | (498,978 | ) | - | - | - | (501,580 | ) | - | ||||||||||||||||||
Gross loans and leases excluding PPP loans | $ | 4,710,276 | $ | 4,452,831 | $ | 4,448,825 | $ | 4,386,836 | $ | 4,251,933 | $ | 4,710,276 | $ | 4,251,933 | ||||||||||||||
(a) Amount does not include servicing rights | ||||||||||||||||||||||||||||
Average Balances and Interest Rates (Unaudited) | ||||||||||||||
For the Three Months Ended, | ||||||||||||||
Tax Equivalent Basis | ||||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
Assets: | ||||||||||||||
Interest-earning deposits with other banks | $ | 368,181 | $ | 100 | 0.11 | % | $ | 313,668 | $ | 67 | 0.09 | % | ||
6,998 | 36 | 2.05 | 7,236 | 36 | 2.00 | |||||||||
Obligations of state and political subdivisions | 18,004 | 167 | 3.69 | 26,546 | 240 | 3.64 | ||||||||
Other debt and equity securities | 360,219 | 1,610 | 1.78 | 378,175 | 2,182 | 2.32 | ||||||||
28,651 | 419 | 5.82 | 28,977 | 362 | 5.02 | |||||||||
Total interest-earning deposits, investments and other interest-earning assets | 782,053 | 2,332 | 1.19 | 754,602 | 2,887 | 1.54 | ||||||||
Commercial, financial, and agricultural loans | 807,376 | 7,330 | 3.61 | 816,976 | 7,330 | 3.61 | ||||||||
Paycheck Protection Program loans | 500,549 | 2,811 | 2.23 | 370,669 | 2,128 | 2.31 | ||||||||
Real estate—commercial and construction loans | 2,358,971 | 23,547 | 3.97 | 2,232,827 | 23,110 | 4.16 | ||||||||
Real estate—residential loans | 1,009,407 | 10,380 | 4.09 | 1,004,671 | 10,270 | 4.11 | ||||||||
Loans to individuals | 28,663 | 309 | 4.29 | 29,079 | 327 | 4.52 | ||||||||
Municipal loans and leases | 267,364 | 2,839 | 4.22 | 291,433 | 2,977 | 4.11 | ||||||||
Lease financings | 97,707 | 1,662 | 6.77 | 91,203 | 1,592 | 7.02 | ||||||||
Gross loans and leases | 5,070,037 | 48,878 | 3.84 | 4,836,858 | 47,734 | 3.97 | ||||||||
Total interest-earning assets | 5,852,090 | 51,210 | 3.48 | 5,591,460 | 50,621 | 3.64 | ||||||||
Cash and due from banks | 56,715 | 46,970 | ||||||||||||
Allowance for credit losses, loans and leases | (87,046 | ) | (69,292 | ) | ||||||||||
Premises and equipment, net | 55,755 | 55,750 | ||||||||||||
Operating lease right-of-use assets | 33,875 | 34,419 | ||||||||||||
Other assets | 354,216 | 341,483 | ||||||||||||
Total assets | $ | 6,265,605 | $ | 6,000,790 | ||||||||||
Liabilities: | ||||||||||||||
Interest-bearing checking deposits | 725,580 | 468 | 0.26 | % | $ | 617,927 | $ | 372 | 0.24 | % | ||||
Money market savings | 1,116,628 | 897 | 0.32 | 1,063,463 | 853 | 0.32 | ||||||||
Regular savings | 901,716 | 449 | 0.20 | 872,422 | 475 | 0.22 | ||||||||
Time deposits | 525,656 | 2,214 | 1.68 | 577,462 | 2,672 | 1.86 | ||||||||
Total time and interest-bearing deposits | 3,269,580 | 4,028 | 0.49 | 3,131,274 | 4,372 | 0.56 | ||||||||
Short-term borrowings | 130,359 | 97 | 0.30 | 161,365 | 122 | 0.30 | ||||||||
Long-term debt | 208,776 | 742 | 1.41 | 210,040 | 762 | 1.46 | ||||||||
Subordinated notes | 155,945 | 1,891 | 4.82 | 94,890 | 1,206 | 5.11 | ||||||||
Total borrowings | 495,080 | 2,730 | 2.19 | 466,295 | 2,090 | 1.80 | ||||||||
Total interest-bearing liabilities | 3,764,660 | 6,758 | 0.71 | 3,597,569 | 6,462 | 0.72 | ||||||||
Noninterest-bearing deposits | 1,760,818 | 1,663,395 | ||||||||||||
Operating lease liabilities | 37,170 | 37,680 | ||||||||||||
Accrued expenses and other liabilities | 41,010 | 41,196 | ||||||||||||
Total liabilities | 5,603,658 | 5,339,840 | ||||||||||||
Shareholders' Equity: | ||||||||||||||
Common stock | 157,784 | 157,784 | ||||||||||||
Additional paid-in capital | 296,272 | 295,681 | ||||||||||||
Retained earnings and other equity | 207,891 | 207,485 | ||||||||||||
Total shareholders' equity | 661,947 | 660,950 | ||||||||||||
Total liabilities and shareholders' equity | $ | 6,265,605 | $ | 6,000,790 | ||||||||||
Net interest income | $ | 44,452 | $ | 44,159 | ||||||||||
Net interest spread | 2.77 | 2.92 | ||||||||||||
Effect of net interest-free funding sources | 0.25 | 0.26 | ||||||||||||
Net interest margin | 3.02 | % | 3.18 | % | ||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 155.45 | % | 155.42 | % | ||||||||||
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 | ||||||||||||||
been calculated using the Corporation’s federal applicable rate of 21.0%. | ||||||||||||||
Average Balances and Interest Rates (Unaudited) | ||||||||||||||
For the Three Months Ended | ||||||||||||||
Tax Equivalent Basis | 2020 | 2019 | ||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
Assets: | ||||||||||||||
Interest-earning deposits with other banks | $ | 368,181 | $ | 100 | 0.11 | % | $ | 213,623 | $ | 1,178 | 2.19 | % | ||
6,998 | 36 | 2.05 | 14,154 | 62 | 1.74 | |||||||||
Obligations of state and political subdivisions | 18,004 | 167 | 3.69 | 42,465 | 316 | 2.95 | ||||||||
Other debt and equity securities | 360,219 | 1,610 | 1.78 | 403,480 | 2,519 | 2.48 | ||||||||
28,651 | 419 | 5.82 | 30,857 | 519 | 6.67 | |||||||||
Total interest-earning deposits, investments and other interest-earning assets | 782,053 | 2,332 | 1.19 | 704,579 | 4,594 | 2.59 | ||||||||
Commercial, financial, and agricultural loans | 807,376 | 7,330 | 3.61 | 800,006 | 9,952 | 4.94 | ||||||||
Paycheck Protection Program loans | 500,549 | 2,811 | 2.23 | - | - | - | ||||||||
Real estate—commercial and construction loans | 2,358,971 | 23,547 | 3.97 | 1,966,593 | 23,439 | 4.73 | ||||||||
Real estate—residential loans | 1,009,407 | 10,380 | 4.09 | 956,224 | 11,570 | 4.80 | ||||||||
Loans to individuals | 28,663 | 309 | 4.29 | 31,504 | 490 | 6.17 | ||||||||
Municipal loans and leases | 267,364 | 2,839 | 4.22 | 333,734 | 3,413 | 4.06 | ||||||||
Lease financings | 97,707 | 1,662 | 6.77 | 82,424 | 1,482 | 7.13 | ||||||||
Gross loans and leases | 5,070,037 | 48,878 | 3.84 | 4,170,485 | 50,346 | 4.79 | ||||||||
Total interest-earning assets | 5,852,090 | 51,210 | 3.48 | 4,875,064 | 54,940 | 4.47 | ||||||||
Cash and due from banks | 56,715 | 53,019 | ||||||||||||
Allowance for credit losses, loans and leases | (87,046 | ) | (33,152 | ) | ||||||||||
Premises and equipment, net | 55,755 | 57,881 | ||||||||||||
Operating lease right-of-use assets | 33,875 | 35,238 | ||||||||||||
Other assets | 354,216 | 329,817 | ||||||||||||
Total assets | $ | 6,265,605 | $ | 5,317,867 | ||||||||||
Liabilities: | ||||||||||||||
Interest-bearing checking deposits | 725,580 | 468 | 0.26 | % | $ | 497,185 | $ | 678 | 0.54 | % | ||||
Money market savings | 1,116,628 | 897 | 0.32 | 1,004,806 | 4,112 | 1.62 | ||||||||
Regular savings | 901,716 | 449 | 0.20 | 805,632 | 963 | 0.47 | ||||||||
Time deposits | 525,656 | 2,214 | 1.68 | 715,520 | 3,681 | 2.04 | ||||||||
Total time and interest-bearing deposits | 3,269,580 | 4,028 | 0.49 | 3,023,143 | 9,434 | 1.24 | ||||||||
Short-term borrowings | 130,359 | 97 | 0.30 | 32,375 | 94 | 1.15 | ||||||||
Long-term debt | 208,776 | 742 | 1.41 | 167,338 | 866 | 2.05 | ||||||||
Subordinated notes | 155,945 | 1,891 | 4.82 | 94,724 | 1,261 | 5.28 | ||||||||
Total borrowings | 495,080 | 2,730 | 2.19 | 294,437 | 2,221 | 2.99 | ||||||||
Total interest-bearing liabilities | 3,764,660 | 6,758 | 0.71 | 3,317,580 | 11,655 | 1.39 | ||||||||
Noninterest-bearing deposits | 1,760,818 | 1,265,027 | ||||||||||||
Operating lease liabilities | 37,170 | 38,364 | ||||||||||||
Accrued expenses and other liabilities | 41,010 | 37,373 | ||||||||||||
Total liabilities | 5,603,658 | 4,658,344 | ||||||||||||
Shareholders' Equity: | ||||||||||||||
Common stock | 157,784 | 157,784 | ||||||||||||
Additional paid-in capital | 296,272 | 294,138 | ||||||||||||
Retained earnings and other equity | 207,891 | 207,601 | ||||||||||||
Total shareholders' equity | 661,947 | 659,523 | ||||||||||||
Total liabilities and shareholders' equity | $ | 6,265,605 | $ | 5,317,867 | ||||||||||
Net interest income | $ | 44,452 | $ | 43,285 | ||||||||||
Net interest spread | 2.77 | 3.08 | ||||||||||||
Effect of net interest-free funding sources | 0.25 | 0.44 | ||||||||||||
Net interest margin | 3.02 | % | 3.52 | % | ||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 155.45 | % | 146.95 | % | ||||||||||
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 | ||||||||||||||
been calculated using the Corporation’s federal applicable rate of 21.0%. | ||||||||||||||
Average Balances and Interest Rates (Unaudited) | ||||||||||||||
For the Nine Months Ended | ||||||||||||||
Tax Equivalent Basis | 2020 | 2019 | ||||||||||||
Average | Income/ | Average | Average | Income/ | Average | |||||||||
(Dollars in thousands) | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||
Assets: | ||||||||||||||
Interest-earning deposits with other banks | $ | 267,023 | $ | 492 | 0.25 | % | $ | 120,231 | $ | 2,016 | 2.24 | % | ||
7,176 | 109 | 2.03 | 17,148 | 217 | 1.69 | |||||||||
Obligations of state and political subdivisions | 26,019 | 696 | 3.57 | 55,220 | 1,369 | 3.31 | ||||||||
Other debt and equity securities | 379,729 | 6,460 | 2.27 | 394,834 | 7,722 | 2.61 | ||||||||
29,689 | 1,308 | 5.88 | 31,713 | 1,640 | 6.91 | |||||||||
Total interest-earning deposits, investments and other interest-earning assets | 709,636 | 9,065 | 1.71 | 619,146 | 12,964 | 2.80 | ||||||||
Commercial, financial, and agricultural loans | 815,178 | 23,291 | 3.82 | 810,321 | 31,299 | 5.16 | ||||||||
Paycheck Protection Program loans | 291,173 | 4,939 | 2.27 | - | - | - | ||||||||
Real estate—commercial and construction loans | 2,244,143 | 70,574 | 4.20 | 1,900,901 | 68,108 | 4.79 | ||||||||
Real estate—residential loans | 1,001,904 | 31,702 | 4.23 | 945,477 | 34,465 | 4.87 | ||||||||
Loans to individuals | 29,251 | 1,043 | 4.76 | 31,985 | 1,518 | 6.35 | ||||||||
Municipal loans and leases | 291,845 | 9,081 | 4.16 | 333,816 | 9,939 | 3.98 | ||||||||
Lease financings | 92,780 | 4,808 | 6.92 | 81,698 | 4,376 | 7.16 | ||||||||
Gross loans and leases | 4,766,274 | 145,438 | 4.08 | 4,104,198 | 149,705 | 4.88 | ||||||||
Total interest-earning assets | 5,475,910 | 154,503 | 3.77 | 4,723,344 | 162,669 | 4.60 | ||||||||
Cash and due from banks | 51,544 | 48,231 | ||||||||||||
Allowance for credit losses, loans and leases | (66,977 | ) | (31,714 | ) | ||||||||||
Premises and equipment, net | 55,967 | 58,640 | ||||||||||||
Operating lease right-of-use assets | 34,278 | 36,056 | ||||||||||||
Other assets | 342,196 | 330,782 | ||||||||||||
Total assets | $ | 5,892,918 | $ | 5,165,339 | ||||||||||
Liabilities: | ||||||||||||||
Interest-bearing checking deposits | 642,935 | 1,636 | 0.34 | % | $ | 477,848 | $ | 1,849 | 0.52 | % | ||||
Money market savings | 1,079,279 | 4,653 | 0.58 | 968,894 | 12,094 | 1.67 | ||||||||
Regular savings | 863,772 | 1,716 | 0.27 | 804,457 | 2,790 | 0.46 | ||||||||
Time deposits | 568,517 | 7,801 | 1.83 | 686,794 | 10,015 | 1.95 | ||||||||
Total time and interest-bearing deposits | 3,154,503 | 15,806 | 0.67 | 2,937,993 | 26,748 | 1.22 | ||||||||
Short-term borrowings | 110,689 | 325 | 0.39 | 65,804 | 949 | 1.93 | ||||||||
Long-term debt | 196,053 | 2,268 | 1.55 | 157,484 | 2,441 | 2.07 | ||||||||
Subordinated notes | 115,376 | 4,372 | 5.06 | 94,664 | 3,783 | 5.34 | ||||||||
Total borrowings | 422,118 | 6,965 | 2.20 | 317,952 | 7,173 | 3.02 | ||||||||
Total interest-bearing liabilities | 3,576,621 | 22,771 | 0.85 | 3,255,945 | 33,921 | 1.39 | ||||||||
Noninterest-bearing deposits | 1,571,629 | 1,184,909 | ||||||||||||
Operating lease liabilities | 37,538 | 39,103 | ||||||||||||
Accrued expenses and other liabilities | 41,691 | 39,735 | ||||||||||||
Total liabilities | 5,227,479 | 4,519,692 | ||||||||||||
Shareholders' Equity: | ||||||||||||||
Common stock | 157,784 | 157,784 | ||||||||||||
Additional paid-in capital | 295,759 | 293,465 | ||||||||||||
Retained earnings and other equity | 211,896 | 194,398 | ||||||||||||
Total shareholders' equity | 665,439 | 645,647 | ||||||||||||
Total liabilities and shareholders' equity | $ | 5,892,918 | $ | 5,165,339 | ||||||||||
Net interest income | $ | 131,732 | $ | 128,748 | ||||||||||
Net interest spread | 2.92 | 3.21 | ||||||||||||
Effect of net interest-free funding sources | 0.29 | 0.43 | ||||||||||||
Net interest margin | 3.21 | % | 3.64 | % | ||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 153.10 | % | 145.07 | % | ||||||||||
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 nine months ended | ||||||||||||||
been calculated using the Corporation’s federal applicable rate of 21.0%. | ||||||||||||||
Loan Portfolio Overview (Unaudited) | ||||||||||||||||||
(Dollars in thousands) | As of | As of | ||||||||||||||||
Industry Description | Total Outstanding Balance (excl PPP) | % of Commercial Loan Portfolio | PPP | % of Portfolio with PPP Loans (2) | $ Balance of Modified Loans (3) | Modified Loans as a % of Portfolio (3) (4) | ||||||||||||
CRE - Retail | $ | 295,654 | 7.6 | % | $ | 239 | - | % | $ | 45,121 | 15.3 | % | ||||||
Animal Production | 252,752 | 6.5 | 706 | 2.0 | 135 | 0.1 | ||||||||||||
CRE - Office | 240,521 | 6.2 | - | - | 1,702 | 0.7 | ||||||||||||
CRE - 1-4 | 237,378 | 6.1 | 1,282 | 0.2 | 212 | 0.1 | ||||||||||||
CRE - Multi-family | 204,488 | 5.3 | - | - | 1,281 | 0.6 | ||||||||||||
Real Estate Lenders, Secondary Market Financing | 189,743 | 4.9 | 4,318 | 27.8 | - | - | ||||||||||||
Hotels & Motels (Accommodation) | 175,894 | 4.5 | 2,407 | 49.6 | 56,288 | 32.0 | ||||||||||||
Nursing and Residential Care Facilities | 160,238 | 4.1 | 7,935 | 26.4 | - | - | ||||||||||||
CRE - Industrial / Warehouse | 158,356 | 4.1 | 139 | 3.8 | - | - | ||||||||||||
CRE - Mixed-Use - Residential | 111,613 | 2.9 | - | - | 15,440 | 13.8 | ||||||||||||
Specialty Trade Contractors | 111,201 | 2.9 | 67,508 | 14.3 | - | - | ||||||||||||
Professional, Scientific, and Technical Services | 93,463 | 2.4 | 70,163 | 29.4 | 63 | 0.1 | ||||||||||||
CRE - Medical Office | 88,557 | 2.3 | - | - | 9,864 | 11.1 | ||||||||||||
Homebuilding (tract developers, remodelers) | 85,177 | 2.2 | 15,049 | 5.2 | - | - | ||||||||||||
Education | 77,676 | 2.0 | 15,577 | 26.7 | 1,071 | 1.4 | ||||||||||||
Merchant Wholesalers, Durable Goods | 73,251 | 1.9 | 20,726 | 22.9 | - | - | ||||||||||||
Fabricated Metal Product Manufacturing | 65,549 | 1.7 | 12,860 | 3.5 | - | - | ||||||||||||
Crop Production | 62,689 | 1.6 | 289 | 0.5 | - | - | ||||||||||||
Motor Vehicle and Parts Dealers | 61,306 | 1.6 | 11,623 | 2.9 | - | - | ||||||||||||
Food Services and Drinking Places | 59,261 | 1.5 | 15,998 | 25.7 | 1,298 | 2.2 | ||||||||||||
Administrative and Support Services | 55,217 | 1.4 | 28,943 | 32.9 | - | - | ||||||||||||
Industries with > | $ | 2,859,984 | 73.7 | % | $ | 275,762 | 11.1 | % | $ | 132,475 | 4.6 | % | ||||||
Industries with < | $ | 1,015,850 | 26.3 | % | $ | 225,818 | 17.3 | % | $ | 33,566 | 3.3 | % | ||||||
Total Commercial Loans | $ | 3,875,834 | 100.0 | % | $ | 501,580 | 12.7 | % | $ | 166,041 | 4.3 | % | ||||||
Consumer Loans and Lease Financings | Total Outstanding Balance | PPP | $ Balance of Modified Loans (3) | Modified Loans as a % of Portfolio (3) (4) | ||||||||||||||
Real Estate-Residential Secured for Personal Purpose | $ | 474,688 | $ | - | $ | 22,937 | 4.8 | % | ||||||||||
Real Estate-Home Equity Secured for Personal Purpose | 172,448 | - | 1,633 | 0.9 | ||||||||||||||
Loans to Individuals | 27,771 | - | 184 | 0.7 | ||||||||||||||
Lease Financings | 159,535 | - | 232 | 0.1 | ||||||||||||||
Total - Consumer Loans and Lease Financings | $ | 834,442 | $ | - | $ | 24,986 | 3.0 | % | ||||||||||
Total | $ | 4,710,276 | $ | 501,580 | $ | 191,027 | 4.1 | % | ||||||||||
(1) Includes | ||||||||||||||||||
(2) Represents weighted average percent of the portfolio which received a PPP loan. | ||||||||||||||||||
(3) 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 | ||||||||||||||||||
(4) Balance of modified loans as of |
CONTACT:Brian J. Richardson UNIVEST FINANCIAL CORPORATION Chief Financial Officer 215-721-2446, richardsonb@univest.net
Source:
2020 GlobeNewswire, Inc., source