UVSP - Earnings call transcript Q1 2018 | Univest Financial Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Univest Corporation of Pennsylvania First Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jeff Schweitzer, President and CEO of Univest Corporation of Pennsylvania.

Jeff Schweitzer

Debbie. you, Thank thank joining and all our of Good you for us. listeners morning, to

on morning Deacon, Joining President call the me this Bank Officer. Trust; Financial of is and and Chief Roger our Univest Keim, Mike

Univest's Before website or may found of network Relations closure from you forward-looking the in Federal first our materially we the $XX.X the results had statements. disclaimer. centers management be to of our I our consolidating quarter can financial be related expectations of reinvesting and forward-looking historical in Please tab. a these actual continue intentions, as may in contemplated nearby our technology these it by in our everyone expansion other $XXX,XXX course markets the centers charge by review everyone Securities in core to earnings into centers share. newer or differ $X.XX those reported make of on million statements that filings. of financial and net our dollars the will We Investor per not, three univest.net to of share to that conference within optimize earnings new forward-looking $X.XX we new our beliefs express center centers and markets. included This income release our Hopefully, chance under during management's If a statements SEC advised the this the per during at from we begin, refer remind release cautionary Laws. of call, yesterday. the forward-looking meaning statements or

$XX.X quarter, annualized. loans the or quarter pleased are growth with during the We increased million X.X% as loan during

typically first quarter a The us. is for quarter slower

saw solid we activity. However,

Roger XX% loans growth We are it to on to over the previously I will of still guidance for now some our in results. for additional year. with our X% communicated discussion turn comfortable

Roger Deacon

joining us everyone today. also of would the highlight a to couple from I'm and Jeff, items you, to like Thank going for thank I release. earnings

we per including as financial earnings related penny First, as which $X.XX to mentioned relates diluted to share, Jeff and closures share. earnings a reported of was center it a the restructuring the costs fully

margin, margin for it compared fourth net relates quarter. to was X.XX core our X.XX for interest to the net Second, interest quarter as the

quarter Accordingly, core However, fourth interest and competition is in margin balance therefore were I would in prior and XX% asset December a This reported XX primarily a received the Reserve our benefit continues fully across slightly XXXX. price net apple basis federal quarter. the that, the federal margin margin rate point both from deposit margins we anticipate our increased for past would all slight to to a flat that compared as to basis note from the March second beginning be sensitive. quarter XXXX this and rate increase, we of improvement started is point be lines, possibly quarter in the We decline due see represents everyone remind fourth accordingly, to Using sheet was the basis will to Federal XXXX, current our basis that quarter to this of quarter our margins tax forma our first by quarter quarter's rate X interest than impacted margin net to presented XXXX X.XX%. negatively reduction pro XX%. tax-equivalent of on tax increase an apple XX% the a

compared first income as last interest Additionally the net increased quarter for X.X% to reported of quarter year. our the

XXXX. net significantly in and purchase accounting press excluding first our has has release solid a benefit from declined As noted the the increased purchase of income, interest accounting of XX.X% our quarter

is by we disclosed during as secured workout placed property a [$XX.X the quarter. loan situation. a on in Third, did which the one release, This and nonaccrual loan is extended press have million] an special from credit use perspective CRE

We XX.X have million ago, an quality to as we end of decreased versus by XXX net see realizable quarter this That loans said, our decreased XX% $XXX,XXX year million have improvement the continued on on at do specific and XX% a a based recorded estimated value. in credit criticized reserve loan and classified quarter.

restructuring seasonal no our have consistent financial everyone for guidance we prior of as X remarks. in the to increase the increases first of one-time vested are for for We provision institutions expenses. and on is items prepared change the prior and remaining many believe We million expense elevated Fourth, my would I expense X.X% are property-related merit million track in per payroll release X% remind believe due other items are press noninterest loan to we X.X still quarter our taxes, to of that to charges. losses ignoring our straightforward quarter. guidance to fairly clearly such with

to questions. question-and-answer We the please begin session? will would be you happy answer any Operator,

Operator

[Operator Instructions] with The first Michael comes question from KBW. Perito

Michael Perito

there some And growth pricing good pretty sounds competitive for I was starting the be comments, the to per how deposit like I the first -- obviously of mind here. continuing as are are guys pressure funding on incrementally curious top and loan growing of the the here is wanted quarter about manifest to things thinking that to Roger, liability your side? -- it start side, what as you was your so on

if have that? curious around any thoughts you just updated So

Mike Keim

Keim. Mike Its

growing deposits will the have initiatives in the strategic sensitive it's our being immediate of and of more are difference series of an time. make and deposit able Several a type initiatives of are above In of terms of add strategic over more all time terms that some and strategy. to really we them of

our -- management most income and grow spoke at in fee to we continue are depository it business as cash past relationships. generates that the We looking

can share commercial at looking a our are of We better for and wallet lack their we how we seeing customers of are get additional term.

from relationships are mortgage trying continue side tap I running several our growth the then specials go there. that the currently some and And market into. are we to seeing historical on to in are in side. servicing we We CD CDs have consumer we on

We are companies brokers. as Federal work real working with, estate well that we with as

And the will alluded Lancaster still focus to very pricing is initiatives board. the funds in have market So getting we that. and go past. to that the opportunities the Valley price we a to Roger to into that fund regard we there's funds. but sensitive, competition. With tap public market Public market series across continue of Lehigh in on hadn't public

focused the in So like above it. we to on all I continue remain said and strategy it's

be deposit to in continue loan our committed it's spectrum that keeping ratio We the at today. to to

Michael Perito

in the guys here over XXXX secondly, the that And that previously rate growth of you'd things I run first to growth? make quarter, that so there's kind the continue know Maybe could spoken first to maybe question. guys switching that say impact for just for it there curious the should major there a do within other as I from I any growth, out the through -- that side, and investment of well guess quarter expense flatten notable come balance more to think any I most speak is of to I the here? little to two-part you guess, invest you there the mean, are invest to continue and plan you but expense or major kind not think to were you year expense some guys to numbers. that of was I Are fair bit

Roger Deacon

number for mentioned some as million -- quarter for it's would to just $XXX Roger, seasonal we frankly about -- the a between I X.X% first its the the X% a are I back increase expenses. elevated looking -- So quite it's a say is to because year of the year. at about

If you're that first the right you quarter restructuring ignoring annualize charges XXX. at

will continued the business. So investment the the decline step that be by offset seasonal in related occur going to will forward

have got numbers. that our we of So kind into baked

Michael Perito

we just one Jeff, notable people competitors, starting move manifest Just then if it as lower quarter from see you as both Are And into curious the customers tax from with to -- any to market now. difference a May rate it's you react are been reform? through starting to we your in see almost here or the anything last that? tax to had full relates your as

Jeff Schweitzer

wouldn't lending remain I than other side. very strong anything pipelines say our notable on the

about say shortage, labor quality some are right to them there's labor could than they customers their find the good I'd they where grow a and add of about think now businesses businesses. their faster probably are could economy if are. feeling to I currently

So say even people overall and their extra them making money in I'd are the just feeling pockets better. good feel is

Operator

Jaffray. Matthew [Operator next comes question Instructions] Piper with Breese Our from

Matthew Breese

that touching base you they Could new related what revenue? areas on the of release idea a just press just give hires will were noted us driving better to the be generation. revenue Maybe in

Mike Keim

home call the a brought But on banking commercial net the we and under under four officers in additional We We then side number loan loan we some terms frankly stronger of Matt, hired the push mortgage did and -- several have. consultants additional hire home go on performance. producers RMs of quite producers side. we of consultants let with was that on we loan

Jeff Schweitzer

producer of in it's a management, kind business, other in new another our added leasing wealth of We developers couple business across but board. the

Matthew Breese

would the Does that RMs growth timeframe those we raise was banking the new loan and for just be some four going potential if on could hires. potential back that bucket? ramp to of from fit helpful? talk that the that them, due side capital the about to Now commercial potential for And into up individuals

Mike Keim

this one in added the we capital to December. and point look we of raised and At reasons that's the time, continue to RMs add capital look, that clearly quality the in

in would also our X% point a We committed XX% of at are to bit I loan add time. this growth still just to color. little

second a pretty we up even will the Jeff range spike the little to be more X% think second the year strong continue we more referenced, through that year. to the past do, quarter. trend towards that but we quarter. the a throughout have the it's to in believe versus think had bit XX% that I'd I pipeline have in for going We flowed good also little bit

time at and what here for to then them somebody of on months In and get a start to board get folks least to bring building three it's terms up get pipeline you is, are six typically going over. going, ramp to the and

Matthew Breese

deposit willing deposit just deposit And success the just your But you've to market. limits are deposit ratio with of like maybe ratio? special? are talk bring then promotional loan competition CD efforts high that you the maybe the had understanding about about there dynamics how on then loan of some the And talk the to to

Roger Deacon

Sure, so Roger. its Matt

have a an because XXX% average there obviously it are the basis do is We we ratio, at of and at this on higher look range. targeted range deposit have some consistently that spot commercial customers. loan We volatility than end of to we a said rather XXX% to around

then at at day near that a go bad, out there we a out of it So be a CDs X.XX isn’t went XXX. the current which for middle on of two. we to had rate CD the new that we in average get and relates you money, did if you X.XX are year you We combine supplemented are when X.X -- from as I that to promotions said seeing X.XX. the actually XX around million X% print like but year know to which look that weighted you or borrow a that at And advertisement borrowing March with X.X month of time would the And money if end had March. we you $X month with we the XX about started

that did customer balance going to with strategically is far. CDs the have we extend well So the retail so program very and promotion sheet the

Matthew Breese

to spread seeing but picking extent? to you up Is about any datas about And real deposit loan that what Are on of other going estate compression, any side. the talk you maybe the your commercial typical then are sort Can datas? loans?

Mike Keim

pickup rates loan seen have new We a on in production. nominal

nice about variable it, think on a our you getting loans. rate If benefit we are

we XX% added portfolio almost our do or We Fortunately, over being adjustable the have completely of floors time. variable existed. that

side variable-rate So and It's target that's where nominal bad. done production XXX a and well strategy been the Where on we current obviously portfolio then somewhat and the prime is. does a by increase. of that almost new not neutral of is between a equation do when you offer have primes variable-rate it's the we've somebody

We to loans. fairly well getting new on do are variable-rate able

Matthew Breese

XX fee you are over trust about, and income investment And for those talk your lines next is Could months you. businesses business? the then outlook from what well insurance, really Jeff, one in for doing the here just of

Jeff Schweitzer

of growth, growth, the friend. know, keeps though to you some see when is management, going money, starts business I business. really digits. talking they type are growing own continues wealth the Yes, everybody RIA down. thinks that's slow up, our you well, manage to wealth performing going have X% but is they don't I'll but been you actually need absent grow the and management necessarily very market pretty might The of is say the their trust everybody And Volatility trust rest business, can double realize in some they get valleys peaks advice. Everything the

I the year. probably to I still lower XX% RIA management X% that on So the say in grow wealth range. that XX% next would the the would which offset by trust, is will for type of say side

talking overall of loan. type growth. to X% for more Insurance So single than digits are that you high is X%

a on customers our and some traction new that business to been quarter. really get focus the group we repositioned in have the first this of Lines that. over business of sales He in Head is We doing business. starting and managing have We to really starting a brought on successful type get good side Commercial middle-market more pipeline to of

across say that are least XX the changing I'd board at don't months. next for those So I lines well the see and of doing business

Operator

further no are there questions. time this At

the conference back Schweitzer Jeff closing for any I'll turn to remarks. So, over

Jeff Schweitzer

you Thank for us you and everybody joining morning. this thank Debbie,

reach If at to end forward the And Mike myself. can to have look talking further any quarter. everybody day. always you questions you the to Have out Roger, we great a second and of

Operator

Thank has attending conference presentation. today's The concluded. now for you

now disconnect. may You

Univest Financial (UVSP) 26 Apr 182018 Q1 Earnings call transcript