Univest(US:UVSP)2024-10-29 20:23Financial Performance - The Corporation reported net income of $18.6 million for Q3 2024, a 9.2% increase from $17.0 million in Q3 2023[184] - Diluted earnings per share for Q3 2024 were $0.63, up from $0.58 in Q3 2023, representing an increase of 8.6%[184] - For the nine months ended September 30, 2024, net income was $57.0 million, a 3.9% increase from $54.9 million in the same period of 2023[185] - The Corporation's return on average assets for Q3 2024 was 0.92%, compared to 0.88% in Q3 2023, an increase of 4 basis points[184] - The return on average equity for Q3 2024 was 8.55%, up from 8.32% in Q3 2023, an increase of 23 basis points[184] Interest Income and Margin - Net interest income on a tax-equivalent basis for Q3 2024 was $53.5 million, a decrease of 0.7% compared to $53.9 million in Q3 2023[187] - The net interest margin for Q3 2024 was 2.82%, down from 2.96% in Q3 2023[188] - The tax-equivalent net interest income for the nine months ended September 30, 2024 was $156.6 million, a decrease of 6.9% from $168.2 million in the same period of 2023[187] - Net interest income for the period was $53,492 thousand, compared to $53,863 thousand in the previous year[190] - The net interest margin decreased to 2.82% from 2.96% year-over-year[190] - Net interest income for the period was $156,553 thousand, compared to $168,179 thousand in the previous year, indicating a decrease of about 6.93%[192] - The net interest margin decreased to 2.85% from 3.22% year-over-year, showing a decline of 11.52%[192] Assets and Liabilities - Total assets increased to $8,005,265 thousand, up from $7,693,983 thousand year-over-year[190] - Total liabilities rose to $7,140,859 thousand, compared to $6,882,468 thousand in the prior year[190] - Total shareholders' equity increased to $864,406 thousand, up from $811,515 thousand[190] - Total assets increased to $7,808,514 thousand, up from $7,453,070 thousand in the previous year, representing a growth of approximately 4.73%[192] - Total liabilities rose to $6,957,955 thousand, compared to $6,650,529 thousand, marking an increase of about 4.62%[192] - Total shareholders' equity increased to $850,559 thousand from $802,541 thousand, representing a growth of approximately 5.97%[192] Loans and Deposits - Commercial, financial, and agricultural loans amounted to $997,465 thousand, with a net interest income of $18,459 thousand[190] - Money market savings deposits increased to $1,849,628 thousand, generating $21,213 thousand in interest[190] - Commercial, financial, and agricultural loans increased to $972,003 thousand, up from $693,316 thousand, reflecting a growth of approximately 40.25%[192] - Real estate—commercial and construction loans rose to $3,572,375 thousand, compared to $3,447,551 thousand, indicating an increase of about 3.63%[192] - Interest-bearing checking deposits grew to $1,163,526 thousand from $980,725 thousand, representing an increase of approximately 18.63%[192] - Total outstanding commercial loan balance as of September 30, 2024, is $5,302,416 thousand, with a portfolio concentration of 84.3% in industries with over $50 million in outstandings[225] - Total deposits increased by $478.4 million, or 7.5%, from December 31, 2023, reaching $6,854,148 thousand[231] Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from $18.7 million in the same period in 2023[199] - Trust fee income increased by $200 thousand, or 10.5%, for the three months ended September 30, 2024 compared to the same period in 2023[198] - Investment advisory commission and fee income rose by $476 thousand, or 9.8%, for the three months ended September 30, 2024, driven by increased assets under management[200] - Insurance commission and fee income increased by $386 thousand, or 8.0%, for the three months ended September 30, 2024, primarily due to higher commercial lines premiums[201] - Other service fee income decreased by $1.2 million, or 39.9%, for the three months ended September 30, 2024, mainly due to a valuation allowance on mortgage servicing rights[202] - Noninterest expense for Q3 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, compared to Q3 2023[207] - Salaries, benefits, and commissions increased by $724 thousand, or 2.4%, for Q3 2024, primarily due to increased profitability[210] Capital and Liquidity - As of September 30, 2024, the Corporation's total capital to risk-weighted assets ratio was 14.27%, while the Bank's was 12.41%[243] - The Corporation's Tier 1 capital to risk-weighted assets ratio was 10.88% at September 30, 2024, compared to 10.58% at December 31, 2023[243] - Unencumbered cash and cash equivalents were $492.3 million at September 30, 2024, up from $241.5 million at December 31, 2023[252] - Committed borrowing capacity from the Federal Home Loan Bank and Federal Reserve Bank was $3.6 billion at September 30, 2024, an increase from $3.4 billion at December 31, 2023[252] - Core deposits remain the largest funding source for the Corporation, facing increased competition from various financial market participants[253] - The Corporation's liquidity management includes a contingency funding plan to address potential liquidity needs during financial crises[251] Other Notable Information - The effective tax rate for Q3 2024 was 20.6%, up from 20.0% in Q3 2023, primarily due to increases in state tax rates[212] - Goodwill has a net carrying value of $175.5 million as of September 30, 2024, with no impairment recorded during the nine months ended September 30, 2024[227] - Bank owned life insurance increased by $7.4 million, or 5.6%, from December 31, 2023, primarily due to new policies purchased[228] - Other assets increased by $11.5 million, or 12.1%, from December 31, 2023, mainly due to increases in pension plan assets and prepaid expenses[229] - The Banking segment reported pre-tax income of $22.5 million for the three months ended September 30, 2024, compared to $21.7 million for the same period in 2023[237] - The Wealth Management segment's noninterest income increased to $7.5 million for the three months ended September 30, 2024, up from $6.8 million in 2023[238] - The Insurance segment reported noninterest income of $5.2 million for the three months ended September 30, 2024, compared to $4.9 million in 2023[239]