Univest(UVSP) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $18.1 million, or $0.62 diluted earnings per share, compared to $16.8 million, or $0.57 diluted earnings per share in Q2 2023, representing a 7.7% increase in net income [2]. - Net income for the period was $18,107,000, down from $20,305,000, reflecting a decrease of 10.8% year-over-year [28]. - The company declared dividends of $0.21 per share, unchanged from the previous quarter and the same period last year [28]. - The company declared a quarterly cash dividend of $0.21 per share, payable on August 21, 2024, to shareholders of record as of August 7, 2024 [41]. Loan and Lease Growth - Gross loans and leases increased by $105.8 million, or 1.6% (6.4% annualized) from Q1 2024, and $117.6 million, or 1.8% (3.6% annualized) from Q4 2023, driven by growth in commercial and residential mortgage loans [4]. - Total loans and leases held for investment increased to $6,684,837 million as of June 30, 2024, up from $6,579,086 million in the previous quarter, representing a growth of 1.6% [43]. - Net loans and leases held for investment rose to $6,599,092 million, compared to $6,493,454 million in the prior quarter, reflecting an increase of 1.6% [43]. - Total commercial loans outstanding reached $5,275,078,000, with the largest sector being industries with over $50 million in outstandings at 84.9% of the portfolio [46]. Deposit Growth - Total deposits rose by $90.0 million, or 1.4% (5.6% annualized) from Q1 2024, and $119.5 million, or 1.9% (3.8% annualized) from Q4 2023, primarily due to increases in commercial and consumer deposits [5]. - Total deposits increased to $6,353,752 million from $6,303,854 million in March 2024, reflecting a growth of 0.8% [27]. Interest Income and Expenses - Net interest income for Q2 2024 was $51.0 million, a decrease of $3.3 million, or 6.1%, from Q2 2023, reflecting pressure on deposit costs [7]. - Interest income for the period ended June 30, 2024, was $99,832,000, an increase from $90,139,000 for the same period last year, representing a growth of 10.5% [28]. - Total noninterest income decreased to $20,980,000 from $25,595,000, a decline of 18% compared to the previous year [28]. - Noninterest expense for Q2 2024 was $48.7 million, a decrease of $1.1 million, or 2.2%, from Q2 2023 [16]. Asset Management - Total assets as of June 30, 2024, were approximately $7.9 billion, with $5.0 billion in assets under management [23]. - Total assets increased to $7,855,446 million as of June 30, 2024, up from $7,746,568 million in March 2024, representing a growth of 1.4% [26]. - Cash and cash equivalents decreased to $190,911 million from $201,606 million in March 2024, a decline of 3.4% [26]. - Total liabilities stood at $6,876,968 thousand, with total interest-bearing liabilities at $5,397,431 thousand [31]. Credit Quality - The provision for credit losses was $707 thousand for Q2 2024, down from $1.4 million in Q1 2024 and $3.4 million in Q2 2023 [20]. - Nonperforming assets decreased to $36.6 million as of June 30, 2024, down from $40.0 million at March 31, 2024, and $34.5 million at June 30, 2023 [39]. - Net loan and lease charge-offs for the quarter were $809 million, with an annualized charge-off rate of 0.05% [43]. - The allowance for credit losses on loans and leases was $85,745 million, slightly up from $85,632 million in the previous quarter, showing a marginal increase of 0.1% [43]. Shareholder Equity - Shareholders' equity reached $844,572 million, slightly up from $842,546 million in March 2024, indicating a growth of 0.2% [27]. - Total shareholders' equity rose to $844,572,000 from $806,709,000, reflecting an increase of about 4.7% year-over-year [45]. - Common equity book value per share as of June 30, 2024, was $29.26, compared to $28.76 as of March 31, 2024 [44]. Efficiency and Ratios - The net interest margin for Q2 2024 was 2.84%, down from 3.14% in Q2 2023 [12]. - Efficiency ratio for the quarter ended June 30, 2024, was 67.1%, up from 64.6% for the quarter ended March 31, 2024 [44]. - Return on average assets for the quarter ended June 30, 2024, was 0.94%, down from 1.06% for the quarter ended March 31, 2024 [44]. - Tier 1 leverage ratio as of June 30, 2024, was 9.74%, an increase from 9.65% as of March 31, 2024 [44].