Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (November 2017)
26 slides from Univest Financial's investor presentation, Nov 7, 2017
Slide 1: Investor Presentation
GUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation November 7, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement :" " within the id meaning of the safe harbor provisions of the 1995. d identified by words such as: “believe, " ilapate “expect,” "intend," "plan," "goal," "target," "project" "may," "should” and similar Instead, thi current beliefs, our bi future, outside of our control. Our
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 delivered l
Slide 4: Univest Primary Service Area
Univest Primary Service Area Nine counties in Southeastern PA and two counties in Southern New Jersey NEW JERSEY NIVEST BANKING | INSURANCE | INVE!
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 Comprehensive mobile app (both iPhone an
Slide 8: Commercial Banking
Commercial Banking 66 lenders and relationship 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 and Berks counties
Slide 9: Consumer Banking
Consumer Banking 40 financial service centers located in Bucks, Chester, Lancaster, Lehigh, Montgomery and Philadelphia counties in PA and Ocean City, NJ; also operating 14 retirement centers in Bucks and Montgomery counties Proactively addressed continued reduction in transactional volume by closin
Slide 10: Univest Financial Center Locations
Univest Financial Center Locations VEST BANKING | INSURANCE | INV!
Slide 11: Mortgage Banking
Mortgage Banking 33 Home Loan Consultants operating in Southeastern PA = Centralized underwriting and closing Primarily agency lender: FNMA, FHLMC, FHA, VA and USDA = FNMA and FHLMC eligible loans sold servicing retained FHA, VA and USDA loans sold to 3 correspondents servicing released s Portfolio
Slide 12: Univest Capital, Inc.
Univest Capital, Inc. Equipment financing business with $124 million in lease receivables as of September 30, 2017 — Average lease size $23,000, typically with three year term Primary industries served: health care, education, automotive, golf and energy Manage residual risk by primarily using $1 bu
Slide 13: Wealth Management
Wealth Management = ¢ wealth 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 Municipal pension operation acquire
Slide 14: Independent insurance agency
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 was Sterner Insurance in July 2014, provided
Slide 15: Market Opportunity
Market Opportunity With BB&q1’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 l
Slide 16: Executive Leadership Team
Executive Leadership Team Age [Tenure (yrs.) with Univest aa 10 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 Louis P. Spinelli Eric W. Conner M. Theresa Schwartzer An
Slide 17: 2017 Strategy
2017 Strategy No Bank acquisitions — provides for clean, stable earnings Focus primarily on Commercial Loan organic growth (9 - 10%); = Core Univest plus Fox Chase team (7 - 8%) = Lancaster team (2 - 3%) Operational Leverage — Reduce efficiency ratio Opportunistic, but disciplined, approach to Wealt
Slide 18: Quarter 2017 Results
3 Quarter 2017 Results = QTD Earnings of $11.2 million or $0.42 per share QTD 2017 YTD Earnings of $33.8 million or $1.27 per share YTD YTD period includes $899 thousand of BOLI death benefit income ($0.03 per share) = Earnings transparency with no acquisition and integration costs YTD Loan growth o
Slide 19: 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 ROA exceeds 1.00% in 2014, 2015 and 1* 3 quarters of 2017 (excluding integration, acquisiti
Slide 20: Summary Financial Highlights
Summary Financial Highlights VUNIVEST
Slide 21: Summary Financial Highlights: Assets
Summary Financial Highlights Assets $5,000,000 somo 7 Wi $3,000,000 ” q a r Cl = $1,000,000 's (000) $ 2016 2017 2010 2o1t 2012 2013 2014 2015 Other Assets
Slide 22: Summary Financial Highlights: Loans and Investments
Summary Financial Highlights Loan & Lease Detail at September 30, 2017 Investment Portfolio at September 30, 2017 Lease Financings , US Agencies 3.6% be 5.4% Commercial, 18.2% Corporate ‘includes Residential Real Estate secured for Business Purposes 25.8% {$3.5 Billion at September 30, 2017) ($444 M
Slide 23: Summary Financial Highlights: Liabilities and Deposits
Summary Financial Highlights Liabilities Deposit Detail ‘$4,000,000 $3,750,000 $3,000,000 | $3,000,000 = $2,250,000 g $2,000,000 2 's (000) $ i Hae oe | 2010 2011 2012 2013 201420152016 2017 2010 2011 2012 2013-2018 201520162017 interest-bearing Deposits = Borrowings DD, Noninterest-Bearing DD, Inte
Slide 24: Asset Quality
Asset Quality Nonperforming Assets Nonaccrual Loans and Leases $50,000 $50,000 180.0% ] 1.25% g 160.0% $40,000 a) n 100% § g z & 2 400% © $30,000 arse $ __ $3000 2 8 28 3 & g 8 120% 3 a za 5 $20,000 sox g $20,000 a $ 000% & $10,000 S $10,000 = Cas 200% 00% s 60.0% 2010 2011 2012 2013 2014 2015 2016
Slide 25: Capital Ratios & Requirements
Capital Ratios & Requirements Univest Corporation of Pennsylvania (Parent) 15.0% 10.0% 10.50% 850% 5.0% 5.00% 0.0% Tier Tiert Total (Leverage) {Common/RBC) (RBC) |= Univest Corp of PA (9/30/17) Required Capital Ratio in 2019 after fll Basel Il phase-in 10.0% Univest Bank & Trust, Co. (Bank) _ er a a
Slide 26: Univest
GUNIVEST
Univest Corp of Pennsylvania — Investor Presentation (November 2017) on 6ix