Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (July 2018)
28 slides from Univest Financial's investor presentation, Jul 31, 2018
Slide 1: Investor Presentation
VUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation July 31, 2018 BANKING | INSURANCE | INVESTMENTS univest.net
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note Regarding Forward-Looking Statements This presentation contains, and our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act o
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 Footprint
Univest Prima Nine counties in Southeastern PA and two counties in Southern New Jersey Northampton QUNIVEST vs INSURANCE | INVEST
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 Noninterest re
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 = 73 lenders, relationship managers and portfolio managers operating in three divisions established by geography Commercial Loan Detail as of 6/30/2018 Delaware Valley: Bucks, Montgomery, Chester, Delaware and Philadelphia counties in Pennsylvania and Cape May and Atlantic countie
Slide 9: Consumer Banking
Consumer Banking 39 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 @remiton crossings _—@ ethlenom vs INSURANCE | INVE!
Slide 11: Mortgage Banking
Mortgage Banking = 28 Home Loan Consultants operating in Southeastern PA = Centralized processing, closing and underwriting Primarily agency lender: FNMA, FHLMC, FHA, VA and USDA = FNMA and FHLMC eligible loans sold servicing retained = FHA, VA and USDA loans sold to correspondents servicing release
Slide 12: Univest Capital, Inc.
Univest Capital, Inc. Lease Financing $145,000 10.00% : 7 . . . 00% = Equipment financing business with 125,000 $133 million in lease receivables as of uy June 30, 2018 7.00% $105,000 - Average lease size $27,000, typically _ 500% with three year term econ ae = Primary industries served: health care
Slide 13: Wealth Management
Wealth Management = Comprehensive wealth management platform including broker / dealer, municipal pension services, registered investment advisor, retirement plan services and trust = Organic growth supplemented by acquisition + Trust powers obtained in 1928 + Broker / Dealer acquired in 1999 * Muni
Slide 14: Insurance
Insurance = Independent insurance agency with Written Premiums . . + $180, more than 60 carrier relationships ied = Full service agency providing er commercial and personal lines, employee benefits and HR consulting $120,000 solutions = Built via a series of eight acquisitions beginning in 2000. Las
Slide 15: Market Opportunity
Market Opportunity * With BB&T’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
Slide 16: Executive Management Team
Executive scasersille Team Tenure (yrs.) with Univest Jeffrey M. Schweitzer Michael S. Keim Roger S. Deacon Duane J. Brobst Philip C. Jackson, Michael S. Fitzgerald Thomas J. Jordan Kevin B. Norris Hugh W. Connelly Ronald R. Flaherty Brian E. Grzebin Dana E. Brown Eric W. Conner Megan D. Santana M.
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 transparency with no acquisition and integration 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 Interes
Slide 19: Year-To-Date 2018 Results
Year-To-Date 2018 Results QTD Earnings of $4.4 million or $0.15 per share YTD Earnings of $17.2 million or $0.58 per share = Includes: = $12.7 million provision for loan and lease losses related to the alleged fraudulent activities believed to be perpetrated by one or more employees of a borrower. R
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 = Dividend Yield of 2.89% = Attractive valuation — = 13.2
Slide 21: Summary Financial Highlights
Summary Financial Highlights GUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 22: Summary Financial Highlights
Summary Financial Highlights Assets Fox Chase Bank $8,000,000 ‘Acquisition ($1.0 billion) July 1, 2016 +8% $4,000,000 Valley Green Bank Acquisition ($469 million) January 1, 2015 8 $3,000,000 $2,000,000 | 1,000,000 al a [J eS! ca co co co a 2010 2011 2012 2013 ous 2015 2016 2017 2018 . & Total Other
Slide 23: Summary Financial Highlights
Summary Financial Highlights Loan & Lease Detail at June 30, 2018 Investment Portfolio at June 30, 2018 Lease Financings Municipal US Agencies 35% Bonds bald Commercial, financial and agricultural "includes Residential Corporate Real Estate secured for Business Purposes 21.0% ($3.8 Billion at June 3
Slide 24: Summary Financial Highlights
Summary Financial Highlights Liabilities Deposit Detail $4,000,000 $3,750,000 $3,000,000 $3,000,000 3 = $2,250,000 & g 0 % $2,000,000 2 pee $1,500,000 0 | $1,000,000 $750,000 | meee ) $ 2010 2011 2012 2013 2014 2015 2016 2017 2018 2010 2011 2012 2013 2014 2015 2016 2017 2018 . 00, Bearing Do, Regula
Slide 25: Asset Quality
Asset Quality $50,000 $40,000 $30,000 $'s (000) $20,000 $10,000 Nonperforming Assets Nonaccrual Loans and Leases 2.50% $50,000 180.0% ¢ 150.0% 2.00% % $40,000 3 3 120.0% B 150% § $30,000 2 8 ao 4 | 28 8 | 1.00% 2 $20,000 3 3 cox 8 e = & =| 050% % $10,000 = 2 30.0% Sees | B o.00% s SS SU mM oom 2010
Slide 26: Regulatory Capital Ratios & Requirements
Regulatory Capital Ratios & Requirements Univest Corporation of Pennsylvania (Parent) Univest Bank & Trust, Co. (Bank) 15.0% 15.0% _ | | ae “ —_ an 8.50% 8.50% 5.0% 5.0% 5.00% 5.00% — i ar || L i: iol 0.0% — Ter Tier Tota Ter 1 Ter 1 Total (Leverage) (Common/RBC) (RBC) (Leverage) (Common/RBC) (RBC)
Slide 27: Net Interest Income (Slightly Asset Sensitive)
Net Interest Income (Slightly Asset Sensitive) Core Net Interest Margin (Excludes Purchase Accounting) $40,000 3.75% 3.70% $35,000 asx © Ss = 3 @ 8 $30,000 § ° g a0o% § $25,000 3.55% $20,000 = = = = — = mae s0% a4 2016 a1 2017 2 2017 3 2017 4 2017 12018 2 2018 "2 Proforma Core Margin* *Proforma tax
Slide 28: GUNIVEST
GUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
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