Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (June 2018)
27 slides from Univest Financial's investor presentation, Jun 12, 2018
Slide 1: Investor Presentation
VUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation June 12, 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 71 lenders, relationship managers and portfolio managers operating in three Commercial Loan Detail as of 3/31/2018 divisions established by geography * 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% . ; , . . 9.00% = Equipment financing business with ee , $125,000 $130 million in lease receivables as of 8.00% March 31, 2018 am $105,000 - Average lease size $25,000, typically 6.00% with three year term 8 5 3 585,000 5.00% & = Primary industri
Slide 13: Wealth Management
Wealth Management = Comprehensive wealth management platform Assets Under Management including broker / dealer, municipal pension peepee services, registered investment advisor, retirement plan services and trust 93,000,000 = Organic growth supplemented by acquisition eta * Trust powers obtained in
Slide 14: Insurance
Insurance = Independent insurance agency with Written Premiums more than 60 carrier relationships amon = Full service agency providing commercial and personal lines, employee benefits and HR consulting solutions $150,000 $120,000 = Built via a series of eight acquisitions beginning in 2000. Last acq
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 Leadership Team
Executive Leadership Team Tenure (yrs.) | Title with Univest nagers Deacon 7 in eee eee a GUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
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: 1st Quarter
1st Quarter 2 = 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% quarter ten
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 GUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 22: Summary Financial Highlights
Summary Financial Highlights Assets $5,000,000 $4,000,000 8 $3,000,000 seotoo8 i oI ie $1,000,000 Lat Lt = Lt tt Lt —l Ld 2010 201 2012 2013 2014 2015 2016 2017 2018 . & Total Other Assets = Cash Chart data as of December 31 except 2018 which is as of March 31 GUNIVEST BANKING | INSURANCE | INVESTME
Slide 23: Summary Financial Highlights
Summary Financial Highlights Loan & Lease Detail at March 31, 2018 Investment Portfolio at March 31, 2018 Lease Financings US Agencies shi Municipal Bonds 5.2% Commercial, financial and agricultural Corporate “ines Residential Bonde Business Purposes ae ($3.7 Billion at March 31, 2018) ($462 Million
Slide 24: Summary Financial Highlights
Summary Financial Highlights $4,000,000 $3,000,000 & 2,000,000 $1,000,000 Liabilities 2010 2011 2012 2013 2014 2015 2016 2017-2018 lu Interest-bearing Deposits = Noninterest-bearing Deposits Borrowings Other Liabilities Deposit Detail a one! | 352,250,000 8 oe | oem | | | meee il = DD, Noninterest-B
Slide 25: Asset Quality
Asset Quality ‘$50,000 $40,000 $30,000 $'s (000) $20,000 $10,000 Nonperforming Assets $50,000 125% a $40,000 100% § asx & __$20000 8 28 sox @ $20,000 2 2 6 0.25% % $10,000 F L _ = _ = ; 0.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nonaccrual Loans and Leases 2010 2011 160.0% 140.0% 120.0% 100.
Slide 26: Regulatory Capital Ratios & Requirements
Regulatory Capital Ratios & Requirements Univest Corporation of Pennsylvania (Parent) Univest Bank & Trust, Co. (Bank) 15.0% 15.0% “ — ~_ ~—- 8.50% 2.50% 5.0% 5.0% 5.00% 5.00% ane i es _ — i Tier Tier 1 Total Tier Tier 1 Total (veverage) (common/RBc) (RC) (Leverage) (Common/R8C) (Rec) 1 Required Cap
Slide 27: GUNIVEST
GUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
Univest Corp of Pennsylvania — Investor Presentation (June 2018) on 6ix