Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Investor Presentation (June 2019)
30 slides from Univest Financial's investor presentation, Jun 13, 2019
Slide 1: Investor Presentation
VUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation June 13, 2019 VUNIVEST vx INSURANCE INVESTMENTS:
Slide 2: Safe Harbor Statement
Safe Harbor Statement Cautionary Note Regarding Forward-Looking Statements The information contained in this presentation may contain forward-looking statements. The words “believe,” “anticipate,” “estimate,” “expect,” “project,” “target,” “goal” and similar expressions generally identify forward-lo
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 deli
Slide 4: 2019 Strategy
2019 Strategy = Continue to take advantage of market dislocation and focus on hiring commercial lenders including potential team lift-outs = Hired 8 individuals including 5 relationship managers/business developers in the Western Lancaster County/York County Market in March 2019 = Hired 3 relationsh
Slide 5: Attractive Investment Opportunity
Attractive Investment Opportunity Super-Community Bank located in attractive Southeastern Pennsylvania market Diversified lines of business and revenue streams (targeting 28 — 30% of total revenue for 2019) Ability to scale and obtain operating leverage Strong earnings performance with 1%t Quarter 2
Slide 6: Summary Financial Data
SUMMARY FINANCIAL DATA *] VUNIVEST
Slide 7: Core Diluted Earnings Per Share
Core Diluted Earnings Per Share* (16.2% Core EPS growth from Q1 2017 to Q1 2019) $0.60 $0.55 $0.50 $0.45 $0.40 $0.35 $0.30 Ql a2 a3 a4 Ql 2 Q3 a4 Ql 2017 2017 2017 2017 2018 2018 2018 2018 2019 *Calculated using "Core Net Income Allocated to Common Shares" which is a Non-GAAP measure. Refer to appen
Slide 8: Tangible Book Value Per Share
Tangible Book Value Per Share* $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $12.38 at 2017 (Target 8-10% Annual Growth") Benefit of 12/2017 Capital Raise = $1.21 a2 2017 \ a3 2017 $14.44 Qa ai a2 a3 aa ai 2017 2018 2018 2018 2018 2019 *Calculated using "Tangible Common Equity" which is a Non-GAAP measu
Slide 9: Significant Growth in ROAA & ROTE
Significant Growth in ROAA & ROTE Core ROAA* 1.50% 1.40% 1.30% 1.20% 1.10% 1.00% 0.90% 0.80% 0.70% 0.60% 0.50% a1 a2 03 a4 at a2 a3 Qa aa 2017 2017: «2017: «2017'-« 2018 «2018 «2018 +2018 +2019 *Calculated using "Core Net Income" which is a Non-GAAP measure. Refer to appendix for reconciliation. Cor
Slide 10: Loan Growth by Segment
Loan Growth by Segment Loan Detail $'s in 00's $4,000,000 = i $3,000,000 al i $2,000,000 $1,000,000 a2 a3 aa ai a2 3 aa aa a2 a3 aa aa 2016 ©2016. = 2016 «= 2017.,-—S ss 2017,—S/«2017.-—Sfs«2017-—Ss«2018~=S «2018 «Ss 2018 «S018 += 2019 Proforma* = Commercial, financial and agricultural 1m Commercial
Slide 11: Deposit Growth by Segment
Deposit Growth by Segment PERO (eacn3e%_| $3,000,000 il [| | i in | ol O UJ $4,000,000 $2,000,000 - | | i t I I I Q2 a3 a4 aa a2 a3 a4 aa a2 a3 a4 at 2016 2016 = 2016 = 2017,-—S 2017 2017, -2017,-—S 2018 2018 = 2018S 2018 2019 Proforma* = DD, Noninterest-Bearing DD, Interest-Bearing Regular Savings
Slide 12: Net Interest Income (Slightly Asset Sensitive)
Net Interest Income (Slightly Asset Sensitive) Core Net Interest Margin*() (Excludes Purchase Accounting) 3.80% 40,000 3.75% 3.70% % 2 - 35,000 g 3 io % 8 s 7 3.65% 8 ° E E 2 3.60% 2 30,000 3.55% 25,000 i —_ — Mm 3.50% Qa aa a2 a3 aa aa a2 a3 a4 aa 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 m
Slide 13: Efficiency Ratios — Continued Improvement
Efficiency Ratios — Continued Improvement 70.0% UVSP pays a Bank Share Tax rather than Bank Income Tax to the Commonwealth of Pennsylvania. This amount is included in noninterest expense and overstates ‘our efficiency ratio by approximately Cae 170 bp compared to other banks that do not have this ta
Slide 14: Stable Asset Quality
Stable Asset Quality Nonperforming Assets $40,000 $30,000 $20,000 $'s (000) $10,000 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 10 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 mmm Other Real Estate Owned lum Troubled Debt Restructured Loans and Leases mmm Nonaccrual & 90+ Past Due Loans and Leases “—=®=
Slide 15: Strong Capital Ratios Provide for Operating Flexibility
Strong Capital Ratios Provide for Operating Flexibility 15.0% 10.0% 5.0% 0.0% Univest Financial Corporation (Parent) (Cash Position of $78.2 million at 3/31/19) — — 8.50% | 5.00% Tier 1 Tier 1 Total (Leverage) (Common/RBC) (RBC) Required Capital Ratio with full Basel II! phase-in l= Univest Financia
Slide 16: Business Overview
BUSINESS OVERVIEW *] VUNIVEST
Slide 17: Univest Primary Service Area
Univest Primary Service Area Ten counties in Southeastern PA and two counties in Southern New Jersey NEW JERSEY yy VUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
Slide 18: Univest Financial Center Locations
Univest Financial Center Locations VUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
Slide 19: Market Opportunity
Market Opportunity = With BB&T’s acquisitions of Susquehanna Bancshares and National Penn Bancshares and WSFS’ acquisition of Beneficial, Univest is one of the three largest community focused financial institutions remaining headquartered in the Philadelphia market (Bryn Mawr Trust and WSFS). Only o
Slide 20: Executive Leadership Team
Executive ae Seuly Team Tenure (yrs.) ith Univest Jeffrey M. Schweitzer President and CEO, Univest Corporation of PA Michael S. Keim 51 10 President, Univest Bank and Trust Co. eee z 5 Senior Executive Vice President, Chief Financial Officer (Retiring June 30, 2019) (Former sili Fox Chase Chief Fina
Slide 21: Commercial Banking
Commercial Banking Commercial Loan Detail as of 3/31/2019 = 86 lenders, relationship managers and portfolio managers operating in three divisions established by geography (serving clients within a 2 hour drive of listed geographies) Delaware Valley: Bucks, Montgomery, Chester, Delaware and Philadelp
Slide 22: 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 23: Mortgage Banking
Mortgage Banking 24 Home Loan Consultants operating in Southeastern PA $400,000 = Centralized processing, closing and underwriting Primarily agency lender: FNMA, FHLMC, FHA, VA and USDA ome FNMA and FHLMC eligible loans sold servicing retained = Received approval as a GNMA issuer in 2018 s ae = FHA,
Slide 24: Univest Capital, Inc.
Univest Capital, Inc. Equipment financing business with $141 million in lease receivables as of March 31, 2019 - Average lease size $37,000, typically with four year term Primary industries served: health care, education/office, automotive, golf/turf, technology and energy Manage residual risk by pr
Slide 25: Wealth Management
Wealth Management Comprehensive wealth management platform including broker / dealer, municipal pension services, registered investment advisor, retirement plan services and trust Effective January 1, 2019, the Wealth division was rebranded as Girard (i.e. Girard Advisory Services, LLC, Girard Benef
Slide 26: Insurance
Insurance = Independent insurance agency with . . Pr 180,000 more than 60 carrier relationships = 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 acquisition
Slide 27: Appendix (Non-GAAP Reconciliations)
APPENDIX (Non-GAAP Reconciliations) VUNIVEST vx INSURANCE INVESTMENTS:
Slide 28: Appendix — Non-GAAP Reconciliations
Appendix — Non-GAAP Reconciliations This presentation includes financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). The management of Univest Financial Corporation uses these non-GAAP measures in its analysis of the Corpora
Slide 29: Appendix — Non-GAAP Reconciliations
Appendix — Non-GAAP Reconciliations $'s in thousands a a oo at a @ a at a 217 2017 2017 217 aoe 201 m8 2018 2019 5. Core Net Interest Income Net Interest Income $34,283 $35,300 $36,888 $36,705, $37,272 $38,990 $40,423 $41,376 $41,523 Less: Purchase Accounting Net interestIncome 168 143 1,054 449 146
Slide 30: VUNIVEST
VUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
Univest Financial — Investor Presentation (June 2019) on 6ix