Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Keefe, Bruyette & Woods Mid-Atlantic Bank Conference 2015
25 slides from Univest Financial's conference presentation, Nov 2, 2015
Slide 1: Keefe, Bruyette & Woods Mid-Atlantic Bank Conference
GUNIVEST BANKING | INSURANCE | INVESTMENTS Keefe, Bruyette & Woods Mid-Atlantic Bank Conference November 3, 2015 Jeffrey M. Schweitzer, President and CEO, Univest Corporation of PA Michael S. Keim, President of Univest Bank and Trust Co. and acting CFO QUNIVEST
Slide 2: Safe Harbor Statement
Safe Harbor Statement a " within the meaning of the safe harbor provisions of the U.S. identified by words such as: “believe, "anticipate," “expect, 1995, d ” "intend," "plan," "goal," "target," “project” "may," "should” and similar Instead, thi nt beliefs, our bi i juture, outside of our control ki
Slide 3: Company Overview
Company Overview Headquartered in Souderton, Pennsylvania 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 delivered locally Serving seven countie
Slide 4: Primary Service Area
Primary Service Area Seven counties in Southeastern PA Northampton Montgomery GUNIVEST BANKING | INSURANCE | INVESTMENTS.
Slide 5: Company Overview
Company Overview = 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 five transactions in the last five years; building franchise value
Slide 6: Company Overview
Company Overview Began diversifying from “only” a bank to financial services company more than fifteen years ago in recognition of the need to increase fee income to manage cyclicality and off-set margin compression in core banking business Goal of 60% of income coming from bank with 40% coming from
Slide 7: Company Overview
Company Overview Making investments in facilities and technology to improve customer access and experience Developed and implemented new financial center model that is smaller in size and delivers consultative services augmented by technology Comprehensive mobile app (both iPhone and Droid) facilita
Slide 8: Mission Statement
Mission Statement Our purpose and philosophy is to be a strong, influential leader in the markets we choose to serve. We will provide financial solutions to individuals, businesses and non-profit organizations; maintain an active role in our communities; and build loyal relationships with our custom
Slide 9: Senior Leadership Team
Senior Leadership Team Senior Leadership Team Jeffrey M. Schweitzer a2 8 President and CEO, Univest Corporation of PA Michael S. Keim 48 6 President, Univest Bank and Trust Co. and acting Chief Financial Officer Duane. Brobst 62 21 Senior Executive Vice President, Chief Risk Officer Hugh W. Connelly
Slide 10: Summary Financial Highlights: Total Assets and Net Income
Total Assets (000s) Summary Financial Highlights $3,000,000 2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 2010 2011 2012 2013-2014 2015 (9/30) 30) TOTAL ASSETS —@=ROAA 1.20% 110% 1.00% oaox § 0% 070% 0.60% Net Income (000s) $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 2010 2
Slide 11: Summary Financial Highlights: Assets and Loan Detail
Summary Financial Highlights Assets (0005) $2,000,000 $1,500,000 $1,000,000 $500,000 Assets Other Assets Loan Detail as of 9/30/2015 ‘Municipal Loans lease Commerc ‘and Leider, Financings inancial and 9.92%. 3.46% ‘agricultural Loans to Individuals, 23.68% Commerc Res ‘includes Residential utilized
Slide 12: Summary Financial Highlights: Liabilities and Deposits
Summary Financial Highlights Liabilities $3,000,000 $2,500,000 $2,500,000 $2,000,000 BH $2,000, 8 $1,500,000 % 51,500,000 5 3 s1000000 8 $1,000,000 $500,000 $500,000 2010 2011«2012,=«2013S 01d 2ats interest-bearing Deposits m Borrowings Regular Savings Noninterest-bearing Deposits m Other Liabiities
Slide 13: Summary Financial Highlights: Revenue and Expense
Summary Financial Highlights Revenue Non-interest Expense $150,000 50.00% $100,000 70.00% 40.00% & $20,000 Soapon - & ss00% Z 20.00% © % $60,000 g ¢ é g 200% § 2 $40,000 © $50,000 : = coao% © 5 é 0.00% = $20,000 $ 9 55.00% 20102011 201220132014 2015 2010 2011 2012 -2013,«2014 2015 10) 0 ‘Net Interes
Slide 14: Summary Financial Highlights: Nonperforming Assets
Summary Financial Highlights $60,000 $50,000 $40,000 $30,000 $20,000 Total Nonperforming Assets $10,000 Nonperforming Assets 2010 2011 -2012«-2013««2014 2015 (9/30) Non-performing Assets e=Ratio of net charge-offs to average loans and leases 1.40% 1.20% 4.00% 0.20% 0.60% 40% 020% 0.00% Net Charge-of
Slide 15: Market Opportunity
Market Opportunity = With BB&T’s acquisition of Susquehanna Bancshares and pending acquisition of National Penn Bancshares, Univest is one of the three largest community focused financial institutions (Beneficial and Bryn Mawr Trust) remaining headquartered in the market Univest Bank and Trust Co. o
Slide 16: Commercial Banking Relationship Managers
Commercial Banking 38 Relationship Managers operating in two divisions established by geography Commercial Loan Detail as of 9/30/2015 * Northern Division: Bucks and Montgomery counties and the Lehigh Valley * Southern Division: Chester, Delaware and Philadelphia counties Average loan size Conmefeal
Slide 17: Company Overview: Financial Service Centers
Company Overview 29 Financial service centers located in Bucks, Montgomery and Philadelphia counties; also operating 12 retirement centers in Bucks and Montgomery counties Proactively addressed continued reduction in transactional volume by closing six financial centers in September 2015 - Four of s
Slide 18: Univest Financial Center Locations
Univest Financial Center Locations BANKING | INSURANCE | INV
Slide 19: GUNIVEST
GUNIVEST BANKING | INSURANCE | INV
Slide 20: Collegeville Financial Center
Collegeville Financial Center BANKING | INSURANCE | INVi
Slide 21: Wealth Management
Wealth Management ealth platform Ce including rakes ucaleh 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 Municipal pension operation acquired in 2
Slide 22: Univest Capital, Inc.
Univest Capital, Inc. Equipment financing business with $125 million in outstandings as of September 30, 2015 — Average lease size $27,000, typically with three year term Primary industries served: health care, education, automotive, golf and energy Manage residual risk by primarily using $1.00 buyo
Slide 23: Univest Insurance
Univest 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. Latest acquisition of Sterner Insurance in Jul
Slide 24: Mortgage Banking
Mortgage Banking = Primarily agency lender: FNMA, FHLMC, FHA and VA * FNMA and FHLMC eligible loans sold Residential Mortgage Fundings servicing retained $400,000 FHA and VA loans sold to correspondents servicing released Hybrid ARMs held in portfolio $6,000 $300,000 $5,000 $4,000 $200,000 = 25 home
Slide 25: Univest
QUNIVEST
Univest Corp of Pennsylvania — Keefe, Bruyette & Woods Mid-Atlantic Bank Conference 2015 on 6ix