Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (May 2018)
27 slides from Univest Financial's investor presentation, May 15, 2018
Slide 1: Investor Presentation May 15-16, 2018
GUNIVEST BANKING | INSURANCE | INVESTMENTS. Investor Presentation May 15 - 16, 2018 BANKING | INSURANCE | INVESTMENTS
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note Regarding Forward-Looking Statements 1d our officers and y from time to time make, "forward-looking statements” we oe ‘meaning of the safe harbor provisions of the U.S. Pri iti fion Reform Act of 1995. identified by words such as: “believe, "anticipate," “expect
Slide 3: Univest Company Overview
Univest Company Overview = Headquartered in Souderton, Pennsylvania (Montgomery County) = Bank founded in 1876, holding company formed in 1973 = Engaged in financial services business, providing full range of banking, insurance and wealth management services — Comprehensive financial solutions deliv
Slide 4: Univest Primary Service Area
Univest Primary Service Ar Nine counties in Southeastern PA and two counties in Southern New Jersey
Slide 5: Recent Highlights
Recent Highlights Proven operating results, holding company profitable in all years of existence with profits every quarter since 1984 Disciplined and experienced M&A targeting and integration, successfully acquiring and integrating six transactions in the last five years; building franchise value a
Slide 6: Diversification Strategy
Diversification Strategy > Diversification from bank “only” to a financial services company began in 1999 = Diversified businesses include wealth management, insurance, mortgage banking and equipment finance = Increased noninterest revenue to manage through credit and interest rate cycles Noninteres
Slide 7: Recent Initiatives
Recent Initiatives = Capitalizing on market disruption to recruit experienced sales personnel to drive organic revenue growth = Developed and implemented new financial center model that is smaller in size and delivers consultative services augmented by technology = Making investments in facilities a
Slide 8: Commercial Banking
Commercial Banking 71 lenders, relationship managers and portfolio managers operating in three divisions established by geography * Delaware Valley: Bucks, Montgomery, Chester, Delaware and Philadelphia counties in Pennsylvania and Cape May and Atlantic counties in New Jersey. * Lancaster: Lancaster
Slide 9: Consumer Banking
Consumer Banking 38 financial service centers located in Bucks, Chester, Lancaster, Lehigh, Montgomery, Northampton and Philadelphia counties in PA and Ocean City, NJ; also operating 14 retirement centers in Bucks and Montgomery counties = Opened Bethlehem (Northampton County), University City (Phil
Slide 10: Univest Financial Center Locations
Univest Financial Center Locations @riaoitoncronings —_ @ Betiere Newosnsey © exam city, cope tay county VUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 11: Mortgage Banking
Mortgage Banking 28 Home Loan Consultants operating in Southeastern PA = Centralized processing, closing and underwriting Primarily agency lender: FNMA, 2700 FHLMC, FHA, VA and USDA $300,000 — = FNMA and FHLMC eligible loans sold om) servicing retained = FHA, VA and USDA loans sold to correspondents
Slide 12: Univest Capital, Inc.
Univest Capital, Inc. Lease Financing $145,000 10.00% = Equipment financing business with sussow 20mm 1254 $130 million in lease receivables as of 8.00% March 31, 2018 By $105,000 Nea - Average lease size $25,000, typically 6.00% with three year term g ses000 soo 2° mS = Primary industries served: h
Slide 13: Wealth Management
Wealth Management = Comprehensive wealth management platform F Assets Under Management i i ae 4 3,500,000 including broker / dealer, municipal pension services, registered investment advisor, retirement plan services and trust aad Organic growth supplemented by acquisition “steels + Trust powers obt
Slide 14: Insurance
Insurance Independent insurance agency with more than 60 carrier relationships Full service agency providing commercial and personal lines, employee benefits and HR consulting solutions Built via a series of eight acquisitions beginning in 2000. Last acquisition was Sterner Insurance in July 2014, p
Slide 15: Market Opportunity
Market Opportunity With BB&q’s acquisitions of Susquehanna Bancshares and National Penn Bancshares, Univest is one of the four largest community focused financial institutions remaining headquartered in the Philadelphia market (Bryn Mawr Trust, WSFS and Beneficial). Only one of the four primarily lo
Slide 16: Executive Leadership Team
Executive Leadership Team Tenure (yrs.) [Title with Univest es 2 es ee Fea ec 2d [a Uae ence teeny ere GUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 17: 2018 Strategy
2018 Strategy Continue to take advantage of market dislocation and focus on hiring commercial lenders including potential team lift-outs Focus primarily on Commercial Loan organic growth (8 - 10%) Opportunistic, but disciplined, approach to Wealth and Insurance acquisitions Continued investment in t
Slide 18: 2017 Results
2017 Results = 2017 Reported Earnings of $44.1 million or $1.64 per share = Earnings pi y with no isition and i ‘ion costs Loan growth of 10.2% and Deposit growth of 9.1% ROA of 1.01% and ROTE of 12.8% Efficiency Ratio of 62.2% (improved operating leverage) 4 quarter 2017 Net Interest Margin, purcha
Slide 19: 1st Quarter 2018 Results
1st Quarter 2018 Results = Earnings of $12.9 million or $0.44 per share = Includes $451 thousand, or $0.01 per share of restructuring costs, net of tax Loan growth from December 31, 2017 of 7.7% (annualized) ROA of 1.14%, 1.18% excluding restructuring charges Efficiency Ratio of 65.4% (Note: 1% quar
Slide 20: Attractive Investment Opportunity
Attractive Investment Opportunity Super-Community Bank located in attractive Southeastern Pennsylvania market Diversified lines of business and revenue streams Ability to scale and obtain operating leverage Consistent earnings performance ROA exceeds 1.00% in 2014, 2015, 2017 and 1* quarter of 2018
Slide 21: Summary Financial Highlights
Summary Financial Highlights VUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 22: Summary Financial Highlights
Summary Financial Highlights Assets $5,000,000 $4,000,000 & $3,000,000 - q n u m " il $1,000,000 2010 2011 2012 2013 2014 2015 2016 2018 Other Assets Chart data as of December 31 except 2018 which is as of March 31 VUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 23: Summary Financial Highlights
Summary Financial Highlights Loan & Lease Detail at March 31, 2018 Investment Portfolio at March 31, 2018 Lease Financings 3.5% A US Agencies Commercial, financial and agricultural 24.6% Corpors Bonds| 21.2% “includes Residential Real Estate secured for Business Purposes ($3.7 Billion at March 31, 2
Slide 24: Summary Financial Highlights
Summary Financial Highlights Liabilities Deposit Detail $4,000,000 $3,750,000 $3,000,000 $3,000,000 52,250,000 $2,000,000 re q | $1,500,000 $1,000,000 $750,000 S 2010 2011 2012 2013 2014 2015 20162017 2018, 's (000) $'s (000), s 2010 2011 2012 2013 2014 2015 2016 2017-2018, = DD, Noninterest-Bearing
Slide 25: Asset Quality
Asset Quality $50,000 $40,000 $30,000 $'s (000) $20,000 $10,000 Nonperforming Assets Nonaccrual Loans and Leases $50,000 180.0% 125% 8 160.0% 8 $40,000 100% § 3 : 0m 3 ome 3 $30,000 z 23 3 ps n00% = z% § osox g@ $2000 3 : rooox 8 s se 3 $10,000 = 02s ¥ , wow 0.00% + 2010 2011 2012 2013 2014 2015 201
Slide 26: Regulatory Capital Ratios & Requirements
Regulatory Capital Ratios & Requirements 15.0% 10.0% Univest Corporation of Pennsylvania (Parent) = = 5.00% = i «Cf Tier 1 Tier Total (Leverage) (Common/Rec) (8c) 1 Required Capital Ratio in 2019 after full Basel il phase-in 1 Univest Corp of PA (3/31/18) Univest Bank & Trust, Co. (Bank) 10.5036 50%
Slide 27: VUNIVEST
VUNIVEST BANKING | INSURANCE | INVESTMENTS
Univest Corp of Pennsylvania — Investor Presentation (May 2018) on 6ix