Univest Financial (UVSP) Q4 2023 earnings summary

Executive summary

• Q4 2023 net income was $16.3 million, or $0.55 diluted EPS, vs. $23.8 million and $0.81 in Q4 2022; FY net income was $71.1 million vs. $78.1 million.

• Total assets were $7.8 billion at Dec. 31, 2023; gross loans and leases rose 7.3% YoY, while deposits increased 7.8%.

Financial highlights

• Q4 net interest income was $52.8 million, down 14.8% YoY and 1.5% QoQ; higher funding costs and interest-bearing liabilities partly offset increased earning-asset yield and balances.

• Q4 noninterest income was $18.6 million, down 9.0% YoY; noninterest expense was $49.0 million, up 3.6% YoY.

• FY net interest income was $220.0 million vs. $218.3 million in 2022; FY provision for credit losses was $10.8 million vs. $12.2 million.

• Q4 income before taxes was $20.4 million and income tax expense was $4.1 million; effective tax rate was 20.3% vs. 19.6% in Q4 2022.

Key financial ratios and metrics

• Tax-equivalent NIM was 2.84% in Q4, vs. 2.96% QoQ and 3.76% YoY; excess liquidity reduced Q4 margin by ~10 bps.

• Q4 annualized return on average assets was 0.82%, return on average equity 7.91%, and efficiency ratio 68.3%; full-year NIM was 3.12%.

• Allowance for credit losses was 1.30% of loans and leases held for investment at year-end; nonperforming assets were $40.1 million, vs. $33.5 million a year earlier.

• FY net loan and lease charge-offs were $5.4 million vs. $3.9 million in 2022; Q4 charge-offs were $1.1 million.