Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (November 2018)
24 slides from Univest Financial's investor presentation, Nov 1, 2018
Slide 1: Investor Presentation
GUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation November 1, 2018 GUNIVEST
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
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
ivest Primary Service Area Nine counties in Southeastern PA and two counties in Southern New Jersey GUNIVEST BANKING | INSURANCE | INVESTMENTS
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 since 2012; building franchise value across a dive
Slide 6: Commercial Banking
Commercial Banking = 73 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: Lancast
Slide 7: 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 (Ph
Slide 8: Univest Financial Center Locations
Univest Financial Center Locations @rannenconings —— @ Seeban GUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 9: Mortgage Banking
Mortgage Banking = 30 Home Loan Consultants operating in Residential Mortgage Originations $400,000 $8,000 Southeastern PA = Centralized processing, closing and underwriting $7,000 = Primarily agency lender: FNMA, $300,000 ELUNE, FHA, VA and USDA $6000. = FNMA and FHLMC eligible loans sold 8 servici
Slide 10: Univest Capital, Inc.
Univest Capital, Inc. Lease Financing $145,000 10.00% 7 ; F . 9.00% = Equipment financing business with wees $136 million in lease receivables as of 8.00% September 30, 2018 7.00% $105,000 = Average lease size $28,000, typically 6.00% with four year term g 25,000 soon = = Primary industries served:
Slide 11: 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 * Munici
Slide 12: 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 2
Slide 13: 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 (pending acquisition by WSFS). On
Slide 14: Executive Leadership Team
Executive Leadership Team Tenure (yr: h Univest Jeffrey M. Schweitzer President and CEO, Univest Corporation of PA Michael S. Keim sa 9 President, Univest Bank and Trust Co. Senior Executive Vice President, Chief Financial Officer (Former Fox Resers, Descony 2a 2 Chase Chief Financial Officer for ni
Slide 15: 2018-2019 Strategy
2018-2019 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% for 2018 and 8% for 2019) = Opportunistic, but disciplined, approach to Wealth and Insurance ac
Slide 16: Year-To-Date 2018 Results
Year-To-Date 2018 Results 3°4 Quarter Earnings of $15.0 million or $0.51 per share YTD Earnings of $32.2 million or $1.09 per share = Includes: = $12.7 million provision for loan and lease losses related to the alleged fraudulent activities believed to be perpetrated by one or more employees of a bo
Slide 17: Attractive Investment Opportunity
Attractive Investment Opportunity = Super-Community Bank located in attractive Southeastern Pennsylvania market = Diversified lines of business and revenue streams ® Ability to scale and obtain operating leverage = Consistent earnings performance " Dividend Yield of 3.24% = Attractive valuation — =
Slide 18: Summary Financial Highlights
Summary Financial Highlights GUNIVEST
Slide 19: Summary Financial Highlights
Summary Financial Highlights Loan Detail Deposit Detail ($'s in 000s) ($'s in 000s) 000.0 9.8% $900,000 : d 95% 100.00 2.009000 200.0 2.000000 1200.0 il $1,009 000 I | | | | | cil franca and agrcuural m Commercial Real Estat 1 DD, Noninterest Bearing 00, Interest Bearing Estate Residential oans to n
Slide 20: Net Interest Income (Slightly Asset Sensitive)
Net Interest Income (Slightly Asset Sensitive) Core Net Interest Margin (Excludes Purchase Accounting) 3.75% $40,000 3.70% $35,000 3.65% = 3 g g $30,000 3 * é 360% 5 & $25,000 3.55% 3.53% | | | $20,000 = L, a = mes sox 42016 12017 22017 03 2017 42017 12018, 02.2018, 03 2018 Net interest income 2 Pro
Slide 21: Efficiency Ratios — Continued Improvement
Efficiency Ratios — Continued Improvement 70.0% 65.0% 60.0% 55.0% 12017 02.2017 932017 042017 a1 2018 22018, 03 2018, —e=Financial Statement Efficiency Ratio (Noninterest Expense/Total Revenue As Reported) —e-Efficiency Ratio Adjusted (Tax equivalent and excluding restructuring costs) Efficiency (Ru
Slide 22: Stable Asset Quality
Stable Asset Quality $40,000 $30,000 $10,000 2016 Nonperforming Assets 2.50% 2.00% 1.50% 1.00% 050% 0.00% 4a 10 22 30 44 10 2 30 2016 2017 2017 2017 2017 2018 2018 2018, ‘sams Other Real Estate Owned mms Troubled Debt Restructured Loans and Leases ‘mame Nonaccrual & 90+ Past Due Loans and Leases, “—
Slide 23: Regulatory Capital Ratios & Requirements
Regulatory Capital Ratios & Requirements 15.0% 10.0% 5.0% 0.0% Univest Corporation of Pennsylvania (Parent) (Cash Position of $76.6 million at 9/30/18) oo on 8.50% 5.00% Ter Tier Total (Leverage) (Common/R8C) (Rec) |5 Univest Corp of PA (9/30/18) 1 Required Capital Ratio in 2019 after full Basel Il
Slide 24: VUNIVEST
VUNIVEST BANKING | INSURANCE | INVESTMENTS
Univest Corp of Pennsylvania — Investor Presentation (November 2018) on 6ix