Univest Financial Corporation (NASDAQ:UVSP) Q3 2022 Earnings Conference Call October 27, 2022 9:00 AM ET

Company Participants

Jeff Schweitzer - President and Chief Executive Officer

Mike Keim - Chief Operating Officer and President, Univest Bank & Trust

Brian Richardson - Chief Financial Officer

Conference Call Participants

Tim Switzer - KBW

Matthew Breese - Stephens Inc.

Justin Crowley - Piper Sandler

Operator

Good morning. Thank you for attending today’s Univest Financial Corporation Third Quarter 2022 Earnings Conference Call. My name is Alexis and I will be your moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to Jeff Schweitzer, President and CEO of Univest. You may proceed, sir.

Jeff Schweitzer

Thank you, Alexis and good morning and thank you to all of our listeners for joining us. Joining me on the call this morning is Mike Keim, our Chief Operating Officer and President of Univest Bank & Trust and Brian Richardson, our Chief Financial Officer.

Before we begin, I would 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 $20.8 million during the third quarter or $0.71 per share. Our net interest income increased 13.2% from the second quarter of the year as we continue to benefit from rising interest rates. Additionally, we continue to have very strong loan growth as loans grew $190.6 million or 13.5% annualized, excluding PPP loans during the quarter. Year-to-date loan growth has been $568.8 million or 14.4% annualized, excluding PPP loans.

We are very happy with our results for the quarter as our pre-tax pre-provision income continues to be solid and increased 27.9% from the second quarter. Additionally, while non-interest income has been negatively impacted by increasing rates and decreasing margins for mortgage banking, along with the decline in financial markets impacting assets under management and supervision for wealth management, new business production across our lines of businesses continues to be solid setting us up for continued future growth. Finally, while there is definitely recession risk as the Federal Reserve continues to raise rates, our credit quality continues to be solid as non-performing assets to total assets declined 4 basis points during the quarter with minimal net charge-offs of 8 basis points.