Univest Financial Corporation (NASDAQ:UVSP) Q2 2022 Earnings Conference Call July 28, 2022 9:00 AM ET

Company Participants

Jeff Schweitzer - President and Chief Executive Officer

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

Brian Richardson - Chief Financial Officer

Conference Call Participants

Tim Switzer - KBW

Frank Schiraldi - Piper Sandler

Samuel Varga - Stephens

Operator

Good morning. And thank you for attending today's Univest Financial Corporation to hold Second Quarter 2022 Earnings Call. My name is Austin, and I'll be your moderator for today. [Operator Instructions]

I would now like to pass the conference over to our host, Jeff Schweitzer with Univest. Jeff, you may proceed.

Jeff Schweitzer

Thank you, Austin, 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 and Trust; and Brian Richardson, our Chief Financial Officer.

Before we begin, I need 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 Web site at univest.net under the Investor Relations tab.

We reported net income of $13.2 million during the second quarter or $0.45 per share. Our net interest income increased 10.3% from the first quarter of the year as we benefited from rising interest rates due to our asset sensitivity. Additionally, we continue to have very strong loan growth as loans grew $265.9 million or 19.6% annualized, excluding PPP loans during the quarter. This strong loan growth resulted in an increased provision for loan and lease losses under CECL during the quarter, which Brian will go into more detail on in his comments.

We are happy with our results for the quarter. And while there is volatility in the provision for loan and lease losses due to CECL as a result of our strong loan growth, our pretax pre-provision income continues to be solid and increased 6.4% from the first quarter. Additionally, while mortgage banking and wealth revenues have been negatively impacted by increasing rates and decreasing margins for mortgage banking, along with the decline in financial markets impacting assets under management supervision for wealth management, the growth engine we have established across all of our lines of businesses continues to set us up for future and continued growth.