Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Sandler O'Neill Philadelphia Bank Day 2016
25 slides from Univest Financial's conference presentation, Jun 21, 2016
Slide 1: Sandler O'Neill Philadelphia Bank Day
GUNIVEST BANKING | INSURANCE | INVESTMENTS Sandler O’Neill Philadelphia Bank Day June 21, 2016
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, b future, which are outside o
Slide 3: Univest Company Overview
Univest Company Overview = Headquartered in Souderton, Pennsylvania © tie . 1876, formed in 1973, ira Engaged in financial services business, providing full range of banking, insurance and wealth management services = @ Serving nine counties in the Southeastern region of — Pennsylvania Customer base
Slide 4: Fox Chase Transaction Highlights
Fox Chase at bil Transaction Highlights Strategic Rationale Cre franchise in the attractive Bucks, Montgomery and apart Counties, and the Sth largest Pennsylvania headquartered bank by deposits Strengthens commercial lending division with an experienced middle market lending team and provides natura
Slide 5: Fox Chase Acquisition Enhances Market Scale
Fox Chase Acquisition Enhances Market Scale by deposits Philadelphia, Montgomery & Bucks Counties Institution (ST) i (PNG Fapands Sees nie PA) Wells Fargo & Co. (CA\ 3 Chizens Emancial Group ne. Rl) 4 Bank of New York Mellon Corp. (NY) orp. ( Finaneal Cop. (PA) « (OH) 13 Nort rest Bancshares Inc. (P
Slide 6: Senior Leadership Team
Senior Leadership Team Senior Leadership Team Jeffrey M. Schweitzer 43 8 President and CEO, Univest Corporation of PA Michael S. Keim 48 a President, Univest Bank and Trust Co. and acting Chief Financial Officer Duane. Brobst 63 2 Senior Executive Vice President, Chief Risk Officer Hugh W. Connelly
Slide 7: UVSP Segment / Business Line Overview
UVSP Segment / Business Line Overview ‘ VUNIVEST
Slide 8: Commercial Banking & Wealth Management
Commercial Banking & Wealth Management Commercial Banking lished by jetail as of 3/31/16 49 geography Norte Division: Bucks and Montgomery counties and the Lehigh + Western Division: paged Lancaster counties Average o outstanding loan siz: mmmercal rel estate $410,000 a : cals162, 000 = + Tax-exempt
Slide 9: Mortgage Banking, Univest Capital & Insurance
Mortgage Banking, Univest Capital & Insurance Marterealbanbine Univest capita, ne ESE FHA and VA million in outstandings as of March 31, 2016 60 carrier relationships 1 Bucks, and the Lehigh Valley = Primary industries served: health care, sducation, aut If and personaltines, employee benefits and H
Slide 10: Financial Centers
Financial Centers 30 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
Slide 11: UVSP Investment Highlights
UVSP Investment Highlights me Gpiasecifiedainenel i aa F ¥ banking i “only” , offset margin compression in core banking business Bank . h imix will be ~70% / 30% = Bank provides customer base to cross-sell Experienced management team and Board of Directors v : Bucks, Chester, Delaware, Lancaster, Le
Slide 12: Summary Financial Highlights
Summary Financial Highlights VUNIVEST
Slide 13: Summary Financial Highlights
Summary Financial Highlights Assets & ROAA Net Income & EPS $4,000.00 140% 40,000 sass $3,500,000 130% $25,000 $2,000.00 120% 5135 20,000 $2,500,000 110% 3 ° 3 3 4 g 7 5 52,000,000 100% § 5 525,000 g = Fy ri suas & $1,500.00 sox $20,000 $1,000,000 sox sos $15,000 00,000 70% oo 10000 5075 poi 201 201
Slide 14: Summary Financial Highlights
Summary Financial Highlights $200,000 $175,000 $150,000 4.00% i $125,000 3.80% i. —Y 8 100,000 ‘ bee = $50,000 Y SAR ~« BEREEE- = 7 St et a ee rs eee ee | Non-interest Expense ae Capital, 4. 2 Net Interst Margin 9 $120,000 $100,000 sso0% = $80,000 é cas a | soon & & sono soo $20,000 2010 2011 2012 2
Slide 15: Balance Sheet Summary & Credit Overview
Balance Sheet Summary & Credit Overview VUNIVEST
Slide 16: Balance Sheet Summary
Balance Sheet Summary $4,000,000 $3,500,000 $3,000,000 WU $1,000,000 $'s (000) $500,000 2010 2011 2012 2013 2018 2015 Mar-16 Mar-16 ——— ecemberan ———~PFFXCB Net Loans mlovestments m Other Assets m Cosh $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 's (000) $ $1,500,000 $1,000,000 $500,000 &
Slide 17: Loans and Leases and Deposits
Loans and Leases and Deposits Approximately 80% of loans and leases consist of C&l, commercial, construction and equipment financing. 4.52%; Fox Chase 4.37%) Fi 016 bill Loans & Leases by Category (3/31/16)! Lease nmercial, Financings, 4% financial ani agricultural, 24% ‘includes Residential for Bus
Slide 18: Investment Portfolio
Investment Portfolio Key Takeaways Tier effective duration of 2.34 years securities, adding further diversification Municipals are seographically concentrated in PA (77%), with next largest state comprising VSP Investment Portfolio as of 3/31/16 US Agencies 21% Municipals 31% Equities 0% VUNIVEST BA
Slide 19: Loan Concentrations and Largest Exposures @ 3/31/16
Loan Concentrations and Largest Exposures @ 3/31/16 [commercial Real state and Residential Rea state Secured for Business Purposes s1,192 MOM | Avg Loan Size $410k | Original Weighted LTV: 51% Special Mention Pass $ Equipment Finance s1261moe | Avg Outstanding Balance per Account $22k Risk ating ‘Sc
Slide 20: Credit Quality
Credit Quality Nonperforming Assets Non-Accrual Loans and Leases $80,000 1.40% $50,000 200% 1.20% Ps $40,000 3 & 40,000 150% § 1.00% g $30,000 8 2 z osox = = 2 8 : g - & : & $30,000 100% 3 a son = 2 a $20,000 2 é H g 0.40% & Fo | & $20,000 sow 2 $10,000 z By (0.20% 00% $10,000 210 2011 2012 2013 201
Slide 21: Credit Infrastructure
Credit Infrastructure Approval Process = Experienced credit team * Conservative credit culture = Centralized credit approval process = Low levels of authority in the field I required Risk Management Process Owns Borrower Relationship Business/Industry Expertise or Analysis Owns Borrower Risk Risk As
Slide 22: Credit Overview
Credit Overview = Limited single signature lending authority. Joint signature up to $3.0MM, then management level loan committee for the largest exposures (>$3.0MM). = Itemized report of all approvals > $500k to monthly Policy Committee * Credit Officer involvement in all relationships > $1.0MM, exc
Slide 23: Capital and Liquidity
Capital and Liquidity GUNIVEST
Slide 24: UVSP Maintains Robust Capital and Liquidity
UVSP Maintains Robust Capital and Liquidity beabhiaed4éiia SbeeeSet 2010 ©2011-2012, 20320142015 Mar-16 2010 ©2011. « «2012-2013, 2014.- 2015 Mar-16 December 3. PrexCB December 31 PrEXCB Tier 1 Capital Holding Company Liquidity * Sources of Holding Company cash include: \gement fees paid by subsidia
Slide 25: QUNIVEST
QUNIVEST
Univest Corp of Pennsylvania — Sandler O'Neill Philadelphia Bank Day 2016 on 6ix