Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (May 2017)
26 slides from Univest Financial's investor presentation, May 16, 2017
Slide 1: Investor Presentation
GUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation May 16 - 17, 2017 VUNIVEST
Slide 2: Safe Harbor Statement
Safe Harbor Statement " " within the id meaning of the safe harbor provisions of the U anit S. 1995. d identified by words such as: “believe, "anticipate," “expect,” "intend," "plan," "goal," "target,” “project” "may," "should” and similar Instead, thi current beliefs, our bi future, outside of 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 Vv 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
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 62 lenders and relationship managers operating in three divisions established by Commercial Loan Detail as of 3/31/2017 geography * Delaware Valley: Bucks, Montgomery, Chester, Delaware and Philadelphia counties in Pennsylvania and Cape May and Atlantic counties in New Jersey. Lan
Slide 9: Consumer Banking
Consumer Banking 38 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 New ener VEST BANKING | INSURANCE | INV!
Slide 11: Mortgage Banking
Mortgage Banking 31 Home Loan Consultants operating in Bucks, Chester, Lancaster and Montgomery counties and the Lehigh Valley * Centralized underwriting and closing Residential Mortgage Originations $7,00 $6,00 Primary agency lender: FNMA, FHLMC, FHA, VA and USDA FNMA and FHLMC eligible loans sold
Slide 12: Univest Capital, Inc.
Univest Capital, Inc. Lease Financing $145,000 1200 = Equipment financing business with $125,000 1000 $133 million in lease receivables as of March 31, 2017 $108,000 200 — Average lease size $18,000, typically 7 with three year term 3 $85,000 6.00 = Primary industries served: health care, education,
Slide 13: Wealth Management
Wealth Management Cc ive wealth platform including broker / dealer, municipal pension Assets Under, Management services, registered investment advisor, rane retirement plan services and trust Organic growth supplemented by acqui Trust powers obtained in 1928 2899.00 Broker / Dealer acquired in 1999
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 of Sterner Insurance in July 2014, provided p
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 market (Bryn Mawr Trust, WSFS and Beneficial). Only one of the four primarily located north
Slide 16: Executive Leadership Team
Executive Leadership Team Jeffrey M. Schweitzer 44 9 President and CEO, Univest Corporation of PA Michael S. Keim 49 8 President, Univest Bank and Trust Co. Roger S. Deacon 54 i Senior Executive Vice President, Chief Financial Officer (Former Fox Chase Chief Financial Officer for nine years) Duane J
Slide 17: 2017 Strategy
2017 Strategy No Bank acquisitions planned — provides for clean, stable earnings Focus primarily on Commercial Loan organic growth (10 - 12%); = Core Univest plus Fox Chase team (8 - 9%) = Lancaster team (2 - 3%) Operational Leverage — Reduce efficiency ratio Opportunistic, but disciplined, approach
Slide 18: 1st Quarter 2017 Results
1st Quarter 2017 Results Earnings of $10.9 million or $0.41 per share = Earnings transparency with no acquisition and integration costs Loan growth of 6.8% (annualized) and Deposit growth of 13.3% (annualized) ROA of 1.04% Net Interest Margin, excluding purchase accounting, increased to 3.71% from 3
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* quarter 2017 (excluding integration, acquisition relat
Slide 20: Summary Financial Highlights
Summary Financial Highlights VUNIVEST
Slide 21: Summary Financial Highlights: Assets
Summary Financial Highlights Assets $4,000,000 $3,000,000 g | 3 s2.000000 a | | | | $1,000,000 2 2010 211 2012 2013 214 2ans 216 2017 Net Loans mlnvestments mOther Assets Cash Chart data as of December 31 ‘except 2017 which is as of March 31 BANKING | INSURANCE | INVESTMENTS
Slide 22: Loan & Lease Detail and Investment Portfolio
Summary Financial Highlights Loan & Lease Detail at March 31, 2017 Investment Portfolio at March 31, 2017 ts sr son “includes Residential Real Estate secured for Corporate Business Purposes 25.4% ($3.3 Billion at March 31, 2017) ($465 Million at March 31, 2017) VUNIVEST BANKING | INSURANCE | INVESTM
Slide 23: Liabilities and Deposit Detail
Summary Financial Highlights Liabilities Deposit Detail $3,750,000 $3,000,000 | | $2,250,000 | $2,000,000 $1,500,000 $1,000,000 $750,000 2010 2011. 2012 2013 2014 2015 (000) $'s 2017 2016 2017 2014 2015 interest-bearing Deposits m Borrowings 0D, Interest-Bearing Time Deposits Nonintere Other Liabili
Slide 24: Asset Quality
Asset Quality Nonperforming Assets Non-Accrual Loans and Leases $50,000 $50,000 190.0% 1.25% 3 160.0% $40,000 = s40,000 . 1.00% § 3 z § : 140.0% B rsx § __ $3000 4 gs 120.0% 2 28 Hf sox @ $20,000 8 3 100.0% & $10,000 025% % $10,000 = 2 20.0% 0.00% s 2010 2011 2012-2013 20142015 2016-2017 2010 2011 2
Slide 25: Capital Ratios & Requirements
Capital Ratios & Requirements Univest Corporation of Pennsylvania (Parent) Univest Bank & Trust, Co. (Bank) 15.0% 18.0% mn Al mae “ — peed 320% 20% 50% 5.00% Tier Tiert Total Tier Tiert Total (Leverage) (Common/R8C) (80) (Leverage) (Common/R8C) (8c) 15 Univest Corp of PA (3/31/17) ‘a Univest Bank &
Slide 26: Univest
GUNIVEST
Univest Corp of Pennsylvania — Investor Presentation (May 2017) on 6ix