Univest(US:UVSP)2024-04-25 12:45Financial Performance - Net income for Q1 2024 was $20.3 million, or $0.69 diluted earnings per share, a decrease from $21.0 million, or $0.71 per share in Q1 2023[1] - Noninterest income for Q1 2024 was $25.6 million, an increase of $5.9 million, or 30.1%, from the prior year[9] - For the three months ended March 31, 2024, net income was $20,305,000, an increase of 25.3% compared to $16,254,000 for the previous quarter[32] - The company reported net income of $20,305 thousand for the three months ended March 31, 2024, compared to $21,034 thousand in the same period of 2023, indicating a decrease of approximately 3.5%[48] Loans and Leases - Gross loans and leases increased by $339.3 million, or 5.4%, from March 31, 2023, primarily due to increases in commercial real estate and residential mortgage loans[3] - Net loans and leases held for investment increased to $6,493,454 thousand, up from $6,481,827 thousand, reflecting a growth of 0.18%[29] - Nonperforming loans and leases totaled $20,631 thousand, a decrease from $21,061 thousand, indicating a reduction of 2.05%[29] - The ratio of nonperforming loans and leases to loans and leases held for investment remained stable at 0.31%[29] - Total commercial loans outstanding reached $5,202,488 thousand, with industries having more than $50 million in outstandings accounting for 84.9% of the commercial loan portfolio[45] Deposits and Assets - Total deposits rose by $570.7 million, or 9.8%, from March 31, 2023, driven by increases in consumer, public funds, and brokered deposits[4] - Total deposits rose slightly to $6,405,358 thousand from $6,375,781 thousand, marking an increase of 0.46%[27] - Total assets decreased to $7,746,568 thousand as of March 31, 2024, from $7,780,628 thousand at December 31, 2023, representing a decline of 0.43%[27] - Total assets increased to $7,696,575 thousand as of March 31, 2024, compared to $7,219,211 thousand in the same period of 2023, reflecting a growth of approximately 6.6%[41] Interest Income and Expenses - Net interest income decreased by $7.9 million, or 13.2%, from Q1 2023, attributed to higher cost of funds and interest-bearing liabilities[7] - Net interest income for the three months ended March 31, 2024, was $51,750 thousand, compared to $53,017 thousand for the previous quarter[36] - The net interest margin decreased to 2.88% for Q1 2024 from 3.58% in Q1 2023, representing a decline of 70 basis points[41] - The gross loans and leases totaled $6,577,365 thousand, with a net interest spread of 1.94% for Q1 2024, down from 2.80% in Q1 2023[41] Credit Losses and Allowances - The provision for credit losses was $1.4 million for Q1 2024, compared to $3.4 million in Q1 2023[20] - The allowance for credit losses on loans and leases was $85,632 thousand, up from $85,387 thousand, showing an increase of 0.29%[29] - The allowance for credit losses on loans and leases was $86,495 thousand as of March 31, 2024, compared to $84,386 thousand in the previous quarter[36] Shareholder Returns - The Corporation declared a quarterly cash dividend of $0.21 per share, payable on May 22, 2024[21] - Dividends declared per share remained stable at $0.21, consistent with the previous quarter[32] - Return on average assets increased to 1.06%, up from 0.82% in the previous quarter, reflecting enhanced profitability[34] - Return on average shareholders' equity rose to 9.69%, compared to 7.91% in the previous quarter, showing improved returns for shareholders[34] Efficiency and Ratios - The efficiency ratio improved to 64.6%, compared to 68.3% in the previous quarter, indicating better cost management[34] - The average interest-earning assets to average interest-bearing liabilities ratio was 135.39% for Q1 2024, down from 153.72% in Q1 2023[41] - Tier 1 leverage ratio improved to 9.65%, compared to 9.36% in the previous quarter, indicating stronger capital position[34]