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Net Income: $18.6 million or $0.63 per share for the third quarter.
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Deposit Increase: $358.8 million due to seasonal build of public funds.
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Loan Growth: $45.9 million or 2.8% annualized.
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Non-Interest Income: Increased by $1.5 million or 7.8% compared to the prior year.
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Wealth Management Growth: Up 9.8% compared to the third quarter of the prior year.
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Insurance Growth: Up 8% compared to the third quarter of the prior year.
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Non-Interest Expenses: Decreased by $436,000 or 0.9% compared to the prior year.
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Stock Buybacks: 156,728 shares repurchased during the quarter; 663,043 shares year-to-date.
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Tangible Book Value Per Share: Increased by 7.32% year-to-date.
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Net Interest Margin (NIM): 2.82%, decreased by 2 basis points from the prior quarter.
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Provision for Credit Losses: $1.4 million for the quarter.
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Net Charge Offs: $820,000 or 5 basis points annualized.
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Non-Performing Assets: Continued stability observed.
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Loan Growth Guidance for 2024: Approximately 4% expected.
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Net Interest Income Guidance for 2024: Expected to contract by 4% to 5% compared to 2023.
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Provision for Credit Loss Guidance for 2024: Reduced to $6 million to $8 million.
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Non-Interest Income Growth Guidance for 2024: 7% to 9% excluding a $3.4 million pretax gain.
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Non-Interest Expense Growth Guidance for 2024: 1% to 2% growth expected off a base of $195.8 million.
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Effective Tax Rate: Approximately 20.5% expected based on current statutory rates.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Univest Financial Corp (NASDAQ:UVSP) reported a net income of $18.6 million for the third quarter, translating to $0.63 per share.
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The company experienced a significant increase in deposits, with a rise of $358.8 million due to a seasonal build of public funds.
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Non-interest income grew by $1.5 million or 7.8% compared to the previous year, driven by strong performance in wealth management and insurance.
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Univest Financial Corp (NASDAQ:UVSP) successfully managed expenses, with non-interest expenses decreasing by $436,000 or 0.9% compared to the prior year.
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The company actively engaged in stock buybacks, repurchasing 156,728 shares during the quarter and 663,043 shares year-to-date, enhancing shareholder value.
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Loan growth was muted during the quarter, with an increase of only $45.9 million or 2.8% annualized, impacted by declining line usage and elevated payoff activity.
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Net interest margin (NIM) decreased slightly to 2.82% from 2.84% in the prior quarter due to increased excess liquidity.
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A provision for credit losses of $1.4 million was recorded during the quarter, indicating potential concerns over credit quality.
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Service fee income saw a reduction, primarily due to a $785,000 valuation allowance on the mortgage servicing asset.
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The competitive environment for deposit pricing remains intense, posing challenges for maintaining favorable margins.