Univest Financial Corporation (NASDAQ:UVSP) Q1 2023 Earnings Conference Call April 29, 2023 9:00 AM ET
Company Participants
Jeff Schweitzer - President & CEO
Mike Keim - COO & President, Univest Bank & Trust
Brian Richardson - CFO
Conference Call Participants
Frank Schiraldi - ABC
Matthew Breese - Stephens
Jeff Schweitzer
Good morning, and thank you to all of our listeners for joining us today. Joining me on the call this morning is Mike Keim, our Chief Operating Officer and President of Univest Bank and Trust; and Brian Richardson, our Chief Financial Officer.
Before we begin, I'd like to remind everyone of the forward-looking statements disclaimer. Please be advised that during the course of this conference call, management may make forward-looking statements that express management's intentions, beliefs or expectations within the meaning of the federal securities laws.
Univest's actual results may differ materially from those contemplated by these forward-looking statements. I will refer you to the forward-looking cautionary statements in our earnings release and in our SEC filings. Hopefully, everyone had a chance to review our earnings release from yesterday. If not, it could be found on our website at univest.net under the Investor Relations tab.
We reported net income of $21 million during the first quarter or $0.71 per share. While this past month and a half has been turbulent in the banking industry after the failures of Silicon Valley Bank and Signature Bank, our diversified deposit sources and ample access to liquidity has served us well.
While we do not see any significant unexpected shifts in our deposits, we are not immune to the accelerated rise in deposit and borrowing costs. As a result, we did experience an 18 basis point decline in our net interest margin during the quarter with continued pressure expected throughout the year.
It is more important than ever that we stay disciplined in our loan pricing and expense management during what we anticipate will be an extended period of higher funding costs. Staying disciplined on loan pricing will slow down loan growth during the year. However, we are focused on ensuring we get an appropriate return on these future loan closings given the increased cost of funding.
Before I pass it over to Brian for further detail on our financials, I would like to thank the entire Univest family for the great work they do every day. While it has been a volatile period in the industry, they continue to focus on serving our customers, communities and each other.