Univest(US:UVSP)2025-01-23 13:45Net Income and Earnings - Net income for Q4 2024 was $18.9 million, or $0.65 diluted earnings per share, an 18.2% increase compared to Q4 2023[1] - Net income for the twelve months ended 12/31/2024 was $75,931 thousand, up from $71,104 thousand in 2023[28] - Net income for the three months ended 12/31/2024 was $18,941 thousand, compared to $16,254 thousand for the same period in 2023, representing a 16.5% increase[47] - Basic net income per share for the twelve months ended 12/31/2024 was $2.60, up from $2.42 in 2023[28] - Net income before amortization of intangibles for the twelve months ended 12/31/2024 was $76,479 thousand, a 6.5% increase from $71,845 thousand for the same period in 2023[47] Loans and Leases - Gross loans and leases increased by $95.8 million (1.4%) from September 30, 2024, and $259.4 million (3.9%) from December 31, 2023[2] - Net loans and leases held for investment grew to $6,739,492 thousand, up from $6,481,827 thousand in December 2023[24] - Loans and leases, gross averaged $6,758,649 thousand for the three months ended December 31, 2024, compared to $6,594,233 thousand in the same period last year[24] - Total loans and leases held for investment increased to $6,826,583 thousand as of 12/31/2024, up from $6,567,214 thousand on 12/31/2023[26] - Commercial, financial, and agricultural loans remained stable at $972.84 million in Q4 2024, with a slight increase in yield to 7.15% from 7.13% in Q4 2023[36] - Real estate—commercial and construction loans increased to $3.63 billion in Q4 2024, up from $3.59 billion in Q4 2023, with a yield increase to 5.82% from 5.60%[36] - Commercial, financial, and agricultural loans generated $69,921 thousand in income with a yield of 7.19% in 2024, up from $67,487 thousand and 6.81% in 2023[40] - Real estate—commercial and construction loans increased to $3,587,147 thousand in 2024, generating $207,053 thousand in income with a yield of 5.77%, up from $3,483,576 thousand and $188,644 thousand in 2023[40] - CRE - Retail loans accounted for 8.6% of the commercial loan portfolio, totaling $463,882 thousand as of December 31, 2024[44] - Animal production loans represented 7.3% of the commercial loan portfolio, with a balance of $393,902 thousand as of December 31, 2024[44] - Total consumer loans and lease financings amounted to $1,447,719 thousand, including $994,972 thousand in real estate-residential secured loans for personal purposes as of December 31, 2024[44] - Industries with over $50 million in outstanding loans represented 84.3% of the commercial loan portfolio, totaling $4,532,454 thousand as of December 31, 2024[44] Deposits - Total deposits decreased by $94.9 million (1.4%) from September 30, 2024, but increased by $383.5 million (6.0%) from December 31, 2023[3] - Noninterest-bearing deposits totaled $1.4 billion, representing 20.9% of total deposits at December 31, 2024[3] - Total deposits reached $6,759,259 thousand, a rise from $6,375,781 thousand in the prior year[24] - Noninterest-bearing deposits increased to $1,414,635 thousand, up from $1,468,320 thousand in December 2023[24] - Total interest-bearing deposits grew to $5,146,751 thousand in 2024, with an average rate of 3.51%, up from $4,448,772 thousand and 2.83% in 2023[40] Net Interest Income and Margin - Net interest income for Q4 2024 was $55.5 million, a 5.1% increase from Q4 2023 and a 4.3% increase from Q3 2024[6] - Net interest margin was 2.88% for Q4 2024, compared to 2.82% for Q3 2024 and 2.84% for Q4 2023[7] - Net interest income for the twelve months ended 12/31/2024 was $211,170 thousand, compared to $219,997 thousand for the same period in 2023[28] - Net interest margin (FTE) for the three months ended December 31, 2024, was 2.88%, up from 2.82% in the previous quarter[30] - Net interest income increased to $55.79 million in Q4 2024, up from $53.02 million in Q4 2023, reflecting a growth of 5.2%[36] - Net interest margin improved to 2.88% in Q4 2024, up from 2.84% in Q4 2023, driven by higher interest-earning asset yields[36] - Net interest income decreased to $212,343 thousand in 2024 from $221,196 thousand in 2023, with a net interest margin of 2.86% compared to 3.12% in 2023[40] Noninterest Income and Expenses - Noninterest income for Q4 2024 was $21.3 million, a 14.6% increase from the same period in 2023[8] - Noninterest income for the twelve months ended 12/31/2024 was $88,055 thousand, compared to $76,824 thousand in 2023[28] - Net deferred costs amortization for Q4 2024 was $676 thousand, compared to $428 thousand in Q4 2023, indicating higher amortization expenses[38] - Net deferred costs amortization for the twelve months ended December 31, 2024, was $2.7 million, compared to $2.1 million in 2023[42] - Restructuring charges for the twelve months ended 12/31/2024 were $1,519 thousand, compared to $189 thousand for the same period in 2023[47] Asset Quality and Credit Losses - Nonperforming assets totaled $33.2 million at December 31, 2024, down from $36.6 million at September 30, 2024, and $40.1 million at December 31, 2023[14] - The provision for credit losses was $2.4 million for Q4 2024, compared to $1.4 million for Q3 2024 and $1.9 million for Q4 2023[16] - Nonperforming loans and leases decreased to $12,988 thousand as of 12/31/2024, down from $21,061 thousand on 12/31/2023[26] - Allowance for credit losses as a percentage of loans and leases held for investment remained stable at 1.28% as of 12/31/2024[26] - Net loan and lease charge-offs for the twelve months ended 12/31/2024 were $3,802 thousand, down from $5,397 thousand in 2023[26] - Total nonperforming assets decreased to $33,205 thousand as of 12/31/2024, down from $40,093 thousand on 12/31/2023[26] Dividends and Shareholder Equity - Univest declared a quarterly cash dividend of $0.21 per share, payable on February 19, 2025[17] - Shareholders' equity increased to $887,301 thousand, compared to $839,208 thousand in December 2023[24] - Dividends declared per share remained consistent at $0.84 for both 2024 and 2023[28] - Common equity book value per share as of December 31, 2024, was $30.55, up from $28.44 in the same period in 2023[30] - Tangible common equity as of 12/31/2024 was $709,528 thousand, up 7.3% from $661,293 thousand as of 12/31/2023[47] - Average tangible common equity for the twelve months ended 12/31/2024 was $680,316 thousand, an 8.4% increase from $627,355 thousand for the same period in 2023[47] - Shareholders' equity as of 12/31/2024 was $887,301 thousand, a 5.7% increase from $839,208 thousand as of 12/31/2023[47] Total Assets and Liabilities - Total assets increased to $8,128,417 thousand as of December 31, 2024, compared to $7,780,628 thousand in the previous year[24] - Cash and cash equivalents stood at $328,844 thousand, up from $249,799 thousand in the previous year[24] - Investment securities available for sale, net of allowance for credit losses, totaled $357,361 thousand, slightly higher than $351,553 thousand in December 2023[24] - Long-term debt decreased to $225,000 thousand, down from $310,000 thousand in the previous year[24] - Total assets as of 12/31/2024 were $8,128,417 thousand, a 4.5% increase from $7,780,628 thousand as of 12/31/2023[47] - Tangible assets as of 12/31/2024 were $7,950,644 thousand, a 4.6% increase from $7,602,713 thousand as of 12/31/2023[47] - Total assets increased to $8.16 billion in Q4 2024, up from $7.87 billion in Q4 2023, reflecting overall growth in the company's financial position[36] Interest-Earning Assets and Liabilities - Total interest-earning assets for the three months ended December 31, 2024, were $7,701,557 thousand, generating $107,794 thousand in income at a rate of 5.57%[32] - Total interest-bearing liabilities for the three months ended December 31, 2024, were $5,816,110 thousand, with an expense of $52,004 thousand at a rate of 3.56%[32] - Total interest-earning assets grew to $7.70 billion in Q4 2024, compared to $7.41 billion in Q4 2023, an increase of 3.9%[36] - Total interest-bearing liabilities rose to $5.82 billion in Q4 2024, compared to $5.49 billion in Q4 2023, with a cost of funds increase to 3.56% from 3.50%[36] - Total interest-earning assets increased to $7,433,260 thousand in 2024 from $7,096,690 thousand in 2023, with a yield of 5.56% compared to 5.25% in 2023[40] - The ratio of average interest-earning assets to average interest-bearing liabilities decreased slightly to 132.42% in Q4 2024 from 134.93% in Q4 2023[36] Capital Ratios and Efficiency - Tier 1 leverage ratio as of December 31, 2024, was 9.51%, compared to 9.36% in the same period in 2023[30] - Total risk-based capital ratio as of December 31, 2024, was 14.19%, up from 13.90% in 2023[30] - Efficiency ratio for the twelve months ended December 31, 2024, was 65.7%, compared to 66.0% in 2023[30] - Return on average assets for the twelve months ended December 31, 2024, was 0.96%, compared to 0.94% in the same period in 2023[30] - Return on average shareholders' equity for the twelve months ended December 31, 2024, was 8.85%, slightly higher than 8.83% in 2023[30] Tax and Adjustments - Tax-equivalent adjustments were calculated using a federal applicable rate of 21.0% for both Q4 2024 and Q4 2023[38]