Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — IPO Roadshow (November 2017)
25 slides from Univest Financial's IPO roadshow presentation, Nov 29, 2017
Slide 1: Common Equity Offering Investor Presentation
Common Equity Offering Investor Presentation November 2017 Free Writing Prospectus Dated November 28, 2017 Filed Pursuant to Rule 433 Registration Statement No. 333-221508
Slide 2: Forward-Looking Statements / Disclosure About Offering
Forward-Looking Statements / Disclosure About Offering Cautionary Statement Regarding Forward-Looking Statements This presentation contains or incorporates by reference a number of forward-looking statements, including statements about our financial condition, results of operations, and prospects an
Slide 3: Forward-Looking Statements (continued)
Forward-Looking Statements / Disclosure About Offering Cautionary Statement Regarding Forward-Looking Statements (continued) Because forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking
Slide 4: Offering Summary
Offering Summary Issuer: Univest Corporation of Pennsylvania Exchange / Listing: NASDAQ: UVSP Offering Format: Follow-On (Shelf Takedown) Security: Common Stock Base Deal Value: $65 million (100% primary) Overallotment: 15% Use of Proceeds: General corporate purposes, including providing capital to
Slide 5: Investment Highlights
Investment Highlights High-performing, commercially-oriented community bank operating primarily in dynamic and desirable Southeastern Pennsylvania markets Experienced management team with proven performance track record Local consolidation has created a significant opportunity to attract new custome
Slide 6: Overview of Univest Corp. of Pennsylvania
Overview of Univest Corp. of Pennsylvania Branch Footprint Financial Snapshot – As of 9/30/2017 UVSP provides a full range of banking, wealth management, and insurance services to commercial, retail and municipal customers across its footprint Primary Counties Served: Pennsylvania: Montgomery, Bucks
Slide 7: Executive Management
Executive Management Title Joined Yearsin uv Industry EVP & CFO of Univest from 2007 to 2013; Senior Jeffrey M. Schweitzer President & CEO 2007 2 Manager at Ernst & Young specializing in financial EVP & CFO of Fox Chase Bank until July 2016; CFO of Roger. Deacon Senior EVP & CFO 2016 2 Bill Me Later
Slide 8: Deposit Market Share: Pennsylvania Banks
Deposit Market Share: Pennsylvania Banks Source: SNL Financial; Deposit data as of June 30, 2017 Philadelphia MSA ~89% of deposits in the Philadelphia MSA are held by international banks, or large out-of-market regionals Pennsylvania #9 Pennsylvania market share among independent Pennsylvania-based
Slide 9: Operating in Desirable PA Markets
Operating in Desirable PA Markets Source: SNL Financial; Deposit data as of June 30, 2017 (1) Excludes $36 million of deposits and one branch operating in Cape May County, NJ UVSP Pennsylvania Franchise Overview
Slide 10: Market Opportunity
Market Opportunity Source: SNL Financial; Deposit data as of June 30, 2015 unless noted otherwise Note: UVSP markets include: Montgomery, Bucks, Philadelphia, Lancaster, Chester, Lehigh, Delaware, Berks, and Northampton Counties in Pennsylvania Represents date of deal announcement Deposit data as of
Slide 11: Strategic Growth Positioning
Strategic Growth Positioning In 2016, UVSP acquired Fox Chase Bancorp, Inc. ($1.1 billion assets) Retained all commercial lenders and relationship managers Leveraging middle-market and private equity expertise 45% cost savings fully recognized as of 1Q 2017 In 2016, UVSP completed the lift-out of a
Slide 12: Overview of Recent Bank Acquisitions
Overview of Recent Bank Acquisitions Fox Chase Bancorp, Inc. Valley Green Bank Headquarters: Announcement Date: Target Assets: Deposits: Common Equity: Deal Value: Hatboro, PA 12/08/2015 $1,099mm $718mm $176mm $244mm Headquarters: Announcement Date: Target Assets: Deposits: Common Equity: Deal Value
Slide 13: Strong and Stable Financial Performance
Strong and Stable Financial Performance Net Income ($mm) Earnings Per Share ($) ROAA (%) ROAE (%) Adjusted for FXCB acquisition and integration expenses
Slide 14: Commercial Banking Focus
Commercial Banking Focus Total Loan Portfolio (9/30/2017) Total Commercial Loans ($mm) Total Loans: $3.5bn Yield on Loans: 4.62% Gross Loans ($mm) CAGR: 20% CAGR ex. Acquisitions: 11% CAGR: 22% Includes Residential R.E. secured for business purposes Commercial real estate loans as defined in the reg
Slide 15: Asset Quality Review
Asset Quality Review Nonaccrual Loans / Total Loans HFI (%) NPAs / Total Assets (%) (1) NCOs / Average Loans (%) Reserves / Nonaccrual Loans (%) (1) For 2015Y, 2016Y, and YTD, nonperforming loans and assets exclude acquired credit impaired loans from Fox Chase and Valley Green
Slide 16: Deposit Profile
Deposit Profile Deposits ($mm) Deposit Portfolio (9/30/2017) Noninterest Bearing Deposits ($mm) CAGR: 14% CAGR ex. Acquisitions: 6% CAGR: 23% Total Deposits: $3.5bn Cost of Deposits: 0.35%
Slide 17: Wealth Management
Wealth Management UVSP offers comprehensive wealth management services including: Broker / Dealer Registered Investment Advisor Municipal Pension Services Retirement Plan Services and Trust $3.5 billion in assets under management at September 30, 2017 2017 year-to-date revenue growth of 19.4% for we
Slide 18: Insurance
Insurance Insurance Fees ($mm) Written Premiums ($mm) Univest Insurance is a full-service agency providing commercial and personal lines, employee benefits and HR consulting solutions Independent insurance agency with more than 60 carrier relationships Written premiums of $159 million as of Septembe
Slide 19: Securities Portfolio Overview
Securities Portfolio Overview Securities Portfolio ($mm) $444 million, or 10% of assets Average Yield: 2.33% Weighted Average Life: 4.9 years Modified Duration: 4.3% Total Securities: $443.8mm Yield on Securities: 2.33% (1) (1) Other includes: $6.6 mm of Money Market Mutual Funds, $3.8 mm of CMOS, a
Slide 20: Financial Snapshot
Financial Snapshot (1) Tangible Common Equity, Tang. Common Equity / Tang. Assets and Tangible Book Value per Share are non-GAAP financial measures; refer to non-GAAP reconciliation on page 24 (2) Includes $17.7 million of pre-tax FXCB acquisition and integration expenses (3) Includes $11.8 million
Slide 21: Pro Forma Capital Snapshot
Pro Forma Capital Snapshot (1) See non-GAAP reconciliation on page 24
Slide 22: Summary Considerations
Summary Considerations High-performing, commercially-oriented community bank operating primarily in dynamic and desirable Southeastern Pennsylvania markets Experienced management team with proven performance track record Local consolidation has created a significant opportunity to attract new custom
Slide 23: Appendix
Appendix VUNIVEST BANKING | INSURANCE | INVE:
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation Source: Company Filings (1) Goodwill and intangibles excludes Mortgage Servicing Rights (MSRs) $ in millions unless stated otherwise 2012 2013 2014 2015 2016 Q3 2017 Pro Forma $65M Common Offering Total Common Shareholder's Equity (GAAP) $284.3 $280.5 $284.6 $361.6 $505.2 $52
Slide 25: VUNIVEST
VUNIVEST BANKING | INSURANCE | INVESTMENTS
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