Univest Financial Corporation · NASDAQ:UVSP
Univest Financial — Investor Presentation (July 2019)
30 slides from Univest Financial's investor presentation, Jul 30, 2019
Slide 1: Investor Presentation
VUNIVEST BANKING | INSURANCE | INVESTMENTS Investor Presentation July 30 - 31, 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 (1) (2) (3) (4) 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 year-to-date 2019 earni
Slide 6: Summary Financial Data
SUMMARY FINANCIAL DATA *] VUNIVEST
Slide 7: Core Diluted Earnings Per Share
Core Diluted Earnings Per Share* (16.5% Core EPS growth from YTD 6/30/17 to YTD 6/30/19) $0.60 $0.55 $0.56 $0.50 $0.47 $0.45 $0.46 $0.42 $0.40 $0.41 $0.41 $0.41 $0.35 aa a2 a3 as a a2 a3 a4 an a 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 *Calculated using "Core Net Income Allocated to Common
Slide 8: Tangible Book Value Per Share
Tangible Book Value Per Share* (Target 8-10% Annual Growth") $16.00 $16.20 $15.72 $15.00 $15.25 Benefit of 12/2017 $14.83 Capital Raise = $1.21 4.54 n : $14.44 a pat $14.00 $13.00 13.2: $13.06 $12.75 $12.38 $12.00 $11.00 & a a2 3 aa at a2 03 aa ai a2 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019
Slide 9: Significant Growth in ROAA & ROTE
Significant Growth in ROAA & ROTE Core ROAA* Core ROTE** 1.75% 18.00% 1.50% 16.00% 1.25% 14.00% 1.00% 12.00% 0.75% 10.00% 0.50% 0.25% 8.00% a @ @ a@ @ @ a3 m@ a w@ a a 8 of a a a a a a 2017-2017 2017«2017-«2018 «2018 «2018-2018 «2019-2019 2017 -2017-«2017-«2017-—«2018-«2018-«2018 201820192019 *Calcu
Slide 10: Loan Growth by Segment
Loan Growth by Segment Loan Detail $s in 000s $4,000,000 $3,000,000 $2,000,000 $1,000,000 a a3 as ai a a3 as ai a2 a3 a4 a a2 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018, 2019 2019 Proforma* = Commercial, financial and agricultural Commercial Real Estate Real Estate - Residential Loans to
Slide 11: Deposit Growth by Segment
Deposit Growth by Segment Deposit Detail $s in 000s $4,000,000 [ $3,000,000 [ fj | ] i L [] $2,000,000 7 ; ] | 1 ] | | a @ a4 ai az 03 as at a a3 aa ai a2 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 Proforma* = DD, Noninterest-Bearing DD, Interest-Bearing Regular Savings m Time
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% s 3.70% “= 2 5 8 = 3 35,000 2 £ 3.65% S a E & 2 3.60% ~ 30,000 3.55% 25,000 . - 3.50% a4 ai a2 a3 a4 al Q2 Q3 a4 ai a2 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 mm
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 YTD 2018 in noninterest expense and overstates YTD 2017 our efficiency ratio by approximately 160 bp compared to other banks that do not
Slide 14: Stable Asset Quality
Stable Asset Quality Nonperforming Assets Nonaccrual Loans and Leases $s in 000s $s in 000s $40,000 2.50% 250,000 180.0% 2.00% 3 150.0% $30,000 & $40,000 ” aod & 1.50% 3 2 8 8 120.0% § % 2 © $30,000 8 $20,000 1.00% 5 ra E g Dy 90.0% = € 2 0.50% g 3 2 8 5 $20,000 € $10,000 iS s 3 60.0% > 0.00% | < $1
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 $77.2 million at 6/30/19) — _ 8.50% 5.00% | | Tier 1 Tier 1 Total (Leverage) (Common/RBC) (RBC) lm Required Capital Ratio with full Basel II! phase-in m Univest Fina
Slide 16: Business Overview
BUSINESS OVERVIEW *] VUNIVEST
Slide 17: Univest Primary Service Area
Univest Primary Service Area Ten counties in Southeastern Pennsylvania and two counties in Southern New Jersey rN L cn Lehigh NEW JERSEY l 2 § \ Atlantic => P VUNIVEST 17 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 Team
Exeouve pe UY Team Tenure (yrs.) with Univest Jeffrey M. Schweitzer President and CEO, Univest Financial Corporation Michael S. Keim sa 10 President, Univest Bank and Trust Co. peeencrameen ee A Executive Vice President, Chief Financial Officer (Former Fox Chase Director of Accounting for five years
Slide 21: Commercial Banking
Commercial Banking Commercial Loan Detail as of 6/30/2019 = 91 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 Philade
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 28 Home Loan Consultants operating in gso.o00 Residential Mortgage Originations $8,000 Southeastern PA = Centralized processing, closing and underwriting $7,000 Primarily agency lender: FNMA, $300,000 FHLMC, FHA, VA and USDA $6,000 = FNMA and FHLMC eligible loans sold 8 servicing re
Slide 24: Univest Capital, Inc.
Univest Capital, Inc. Lease Financing 145,000, 10.00% . . . . . 9.00% = Equipment financing business with see $142 million in lease receivables as of 500% June 30, 2019 700% 105,000, - Average lease size $38,000, typically 6.00% with four year term g 3 2 85,000 5.00% g = Primary industries served: h
Slide 25: Wealth Management
Wealth Management Comprehensive wealth management platform including broker / dealer, municipal pension services, registered investment advisor, 3,600,000 retirement plan services and trust Effective January 1, 2019, the Wealth division 3,000,000 was rebranded as Girard (i.e. Girard Advisory Service
Slide 26: Insurance
Insurance = Independent insurance agency with more than 60 carrier relationships 180,000 = 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 was Ste
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 3 og a a 03 as a a 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 5. Core Net Interest Income Net interest Income $34,283, $35,300 $36,888 $36,705 $37,272 $38,990 940,423, $41,376 $41,523 $42,635 Less: Purchase Accounting Net interest Income
Slide 30: VUNIVEST
VUNIVEST BANKING | INSURANCE | INVESTMENTS univest.net
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