Univest(UVSP) - 2024 Q4 - Annual Report

Financial Performance - Interest income for 2024 reached $412,355,000, an increase of 11$371,730,000 in 2023[188] - Net income for 2024 was $75,931,000, compared to$71,104,000 in 2023, marking a 6.9% increase[188] - The Corporation reported net income of $75.9 million for 2024, an increase of 6.8$71.1 million in 2023[190] - Diluted earnings per share for 2024 were $2.58, up from$2.41 in 2023, reflecting a 7.1% increase[190] - Basic net income per share for 2024 was $2.60, up from$2.42 in 2023, reflecting a growth of 7.4%[302] - Comprehensive income for 2024 was $82,585 thousand, compared to$82,562 thousand in 2023, showing stability in overall financial performance[304] Income and Expenses - Noninterest income increased to $88,055,000, up from$76,824,000 in 2023, reflecting a growth of 14.4%[188] - Total noninterest income rose to $88,055 thousand in 2024, a 14.6$76,824 thousand in 2023[302] - Net interest income after provision for credit losses was $205,237,000, slightly down from$209,227,000 in 2023[188] - Total noninterest expense for 2024 was $197,992 thousand, a slight increase from$197,362 thousand in 2023[302] - Interest expense rose by $49.5 million in 2024, primarily due to increased costs of interest-bearing deposits[194] - The company reported a total interest expense of$201,185 thousand in 2024, which is a 32.5% increase from $151,733 thousand in 2023[302] Credit Quality - The allowance for credit losses to total loans and leases held for investment was 1.28$5.9 million, down from $10.8 million in 2023[203] - Net loan and lease charge-offs for the year ended December 31, 2024 were$3.8 million, down from $5.4 million in 2023[203] - Nonaccrual loans and leases decreased to$12.7 million in 2024 from $20.5 million in 2023, indicating improved asset quality[233] - The allowance for credit losses on loans and leases was$87.1 million, representing 1.28% of loans and leases held for investment[237] - The allowance for credit losses on loans and leases increased to $87.1 million in 2024, up from$85.4 million in 2023, representing a 2.0% increase[242] Assets and Liabilities - Total assets increased by $347.8 million, or 4.5$8,128.4 million[221] - The Corporation's total liabilities rose to $7.24 billion in 2024, a 4.3$6.94 billion in 2023[246] - Total deposits rose by $383.5 million, or 6.0$6.76 billion as of December 31, 2024, driven by increases in consumer, commercial, brokered, and public funds deposits[247] - Cash and cash equivalents increased by $79.0 million, or 31.6$85.0 million, or 27.4%, to $225.0 million in 2024, reflecting pay-downs during the year[246] Capital and Equity - Total shareholders' equity increased by$48.1 million, or 5.7%, to $887.3 million as of December 31, 2024, mainly due to a rise in retained earnings[252] - The Corporation's Tier 1 risk-based capital ratio improved to 10.85$887,301 thousand in 2024, compared to $839,208 thousand in 2023, marking an increase of about 5.7%[300] Economic Outlook - The economic forecast indicates a GDP growth rate of 1.12% for 2024, up from 0.76% in 2023[183] - The Corporation's cumulative gap as a percentage of interest-earning assets is -20.7% within three months and 25.0% over five years, indicating a greater amount of liabilities that can reprice over assets in the next twelve months[264] Operational Efficiency - The efficiency ratio improved to 65.7% in 2024 from 66.0% in 2023, indicating better cost management[188] - The return on average assets was 0.96% for 2024, slightly up from 0.94% in 2023[188] - Return on average equity for 2024 was 8.85%, a marginal increase from 8.83% in 2023[190] Strategic Initiatives - The Corporation's strategy for credit risk management includes well-defined credit policies and regular monitoring of loan performance[231] - The Corporation's liquidity management includes a contingency funding plan to address potential liquidity needs during financial crises[277] - The Corporation's loan portfolio is managed with strict underwriting standards, focusing on the borrower's capacity and willingness to repay[269]