Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Univest Corp of Pennsylvania — Investor Presentation (August 2017)
26 slides from Univest Financial's investor presentation, Aug 1, 2017
Slide 1: Investor Presentation
GUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation August 1-2, 2017 VUNIVEST BANKING | INSURANCE | INVESTME"T=.
Slide 2: Safe Harbor Statement
Safe Harbor Statement saning of the safe harbor provisi i identified by words such as: “believe, "anticipate," “ ‘expect,” “intend,” "plan," "goal," "target," “project” "may," "should” and similar Instead, th bi fut statements. Therefore, foll Pitabel the 1A, “Risk Factors” in our Form 10-K for the
Slide 3: Univest Company Overview
nivest 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 1 locally ia and
Slide 4: Univest Primary Service Area
Univest Primary Service Area Nine counties in Southeastern PA and two counties in Southern New Jersey Northampton Lehigh a NEW JERSEY chee wo VUNIVEST 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 in the last five years; building franchise value
Slide 6: Diversification Strategy
Diversification Strategy Diversification from bank “only” to a financial services company began in 1999 Vv Diversified businesses include wealth management, insurance, mortgage banking and equipment finance Increased noninterest revenue to manage through credit and interest rate cycles Noninterest r
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 Commercial Loan Detail as of 6/30/2017 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. *
Slide 9: Consumer Banking
Consumer Banking 39 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 Wren crssngs satan QUNIVEST won INSURANCE | INVE!
Slide 11: Mortgage Banking
Mortgage Banking = 30 Home Loan Consultants operating Residential Mortgage Originations in Bucks, Chester, Lancaster and $400,000 $8,000 Montgomery counties and the Lehigh Valley $7,000 = Centralized underwriting and closing 300,000 1__. . $6,000 = Primary agency lender: FNMA, g FHLMC, FHA, VA and U
Slide 12: Univest Capital, Inc.
Univest Capital, Inc. Lease Financing us ony 12.00% = Equipment financing business with $130 million in lease receivables as of $125,000 June 30, 2017 10.00% $105,000 8.00% - Average lease size $18,000, typically with three year term s S $85,000 6.00% Primary industries served: health care, educatio
Slide 13: Wealth Management
Wealth Management * Compr ive wealth ement platform Assets Under Management including broker / dealer, municipal pension z ‘ 5 : $3,500,000 services, registered investment advisor, retirement plan services and trust $3,000,000 = Organic growth supplemented by acquisition * Trust powers obtained in 1
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&1’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 lo
Slide 16: Executive Management Team
Executive ostaiibt Team [Tenure (yrs. th Univest es 2 eee es Maeseecz Hegel || 2S ||| SSR cermin een pete aus oneia eine M. Theresa Schwartzer 47 ete) Executive Vice President and Director of Human Resources, Annette D. Szygi sa 13 Executive Vice President and Chief Experience Officer VUNIVEST BANKI
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: 2nd Quarter 2017 Results
2d Quarter 2017 Results QTD Earnings of $11.8 million or $0.44 per share QTD YTD Earnings of $22.6 million or $0.85 per share YTD = Both periods include $899 thousand of BOLI death benefit income ($0.03 per share) = Earnings transparency with no acquisition and integration costs YTD Loan growth of 1
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* half of 2017 (excluding integration, acquisition rel
Slide 20: Summary Financial Highlights
Summary Financial Highlights VUNIVEST BANKING | INSURANCE | INVESTMENTS
Slide 21: Summary Financial Highlights
Summary Financial Highlights Assets $5,000,000 $4,000,000 's (000) $3,000,000 ” nv lal I a a $1,000,000 $ 2010 201 2012 2013 2018 2015 2016 2017 Net Loans milnvestments Other Assets = Cash VUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
Slide 22: Summary Financial Highlights
Summary Financial Highlights Loan & Lease Detail at June 30, 2017 Lease Financings 3.7% Commercial, financial and agricultural “includes Residential Real Estate secured for Business Purposes ($3.5 Billion at June 30, 2017) Investment Portfolio at June 30, 2017 US Agencies Municipal sf 6.8% 17.4% Cor
Slide 23: Summary Financial Highlights
Summary Financial Highlights $4,000,000 $3,000,000 $2,000,000 $'s (000) $1,000,000 Liabilities $3,750,000 $3,000,000 = $2,250,000 8 $1,500,000 | | | | ~ s 200 2011 2012 2019 7014 201520162017 terest bearing Deposits Borrowings Noninterest-bearing Deposits = Other Liabilities 2010 2011 Deposit Detail
Slide 24: Asset Quality
Asset Quality Nonperforming Assets Non-Accrual Loans and Leases $50,000 $50,000 190.0% 1.25% $40,000 | 160.0% ‘ 00% § $4000 3 A woos 2 _ $30,000 ors 3 _ $30,000 2 g 28 E] 8 a 100% 3 a 23 3 $20,000 50% 2 $20,000 3 H 100.0% 8 é z $10,000 0.25% 3 $10,000 2 200% 0.00% : 2010 2011 2012 2013 2014 2015 201
Slide 25: Capital Ratios & Requirements
Capital Ratios & Requirements Univest Corporation of Pennsylvania (Parent) Univest Bank & Trust, Co. (Bank) 15.0% 15.0% 100% Fre 1008 ml “0st sas) = ee so eae ee a 0.0% 0.0% a I! —o =F a a =F = Teal ioe (commence tec eee (common) ie ‘= Univest Corp of PA (6/30/17) Univest Bank & Trust (6/30/17) aged
Slide 26: VUNIVEST
VUNIVEST BANKING | INSURANCE | INVESTMENTS
Univest Corp of Pennsylvania — Investor Presentation (August 2017) on 6ix