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Univest Financial Corporation Reports Second Quarter Results
Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended June 30, 2023 was $16.8 million, or $0.57 diluted earnings per share, compared to net income of $13.2 million, or $0.45 diluted earnings per share, for the quarter ended June 30, 2022.
One-Time Items
The financial results for the quarter included a $1.3 million ($1.1 million after-tax), or $0.04 diluted earnings per share, restructuring charge associated with the Corporation’s financial service center optimization and expense management strategies deployed in response to macroeconomic headwinds. These strategies will result in a net reduction of three locations and a headcount rationalization, primarily concentrated within certain commercial real estate and residential mortgage lending teams. Estimated annualized cost savings from these initiatives is approximately $5.4 million. The financial results for the quarter also included a $250 thousand ($198 thousand after-tax) loss associated with the planned sale of a $19.7 million interest in a shared national credit.
Loans
Gross loans and leases increased $222.4 million, or 3.6% (14.4% annualized), from March 31, 2023 and $339.0 million, or 5.5% (11.0% annualized), from December 31, 2022. The increase in both periods was primarily due to increases in commercial real estate, construction, residential mortgage loans, and lease financings.
Deposits and Liquidity
Total deposits increased $152.7 million, or 2.6% (10.5% annualized), from March 31, 2023, primarily due to increases in brokered deposits partially offset by decreases in commercial and consumer deposits and public funds. Total deposits increased $73.9 million, or 1.2% (2.4% annualized), from December 31, 2022, primarily due to increases in public funds and brokered deposits partially offset by decreases in commercial and consumer deposits. Noninterest-bearing deposits represented 26.4% of total deposits at June 30, 2023, down from 30.8% at March 31, 2023. At June 30, 2023, unprotected deposits, which excludes insured accounts, internal accounts, and collateralized trust accounts, represented 23.3% of total deposits, down from 27.2% at March 31, 2023.
The Corporation and its subsidiaries had committed borrowing capacity of $3.2 billion at June 30, 2023, of which $2.0 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $410.0 million at June 30, 2023, of which $285.0 million was unused. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.
Net Interest Income and Margin
Net interest income of $54.3 million for the three months ended June 30, 2023 decreased $5.0 million, or 8.4%, from the three months ended March 31, 2023, and increased $2.9 million, or 5.6%, from the three months ended June 30, 2022. The decrease in net interest income for the three months ended June 30, 2023 compared to the prior quarter was due to an increase in cost of funds, including long-term borrowings as well as the continued increase in deposit cost of funds, both of which outpaced the impact of higher asset yields and loan growth during the quarter. The increase in net interest income for the three months ended June 30, 2023 compared to the same period of 2022 was largely due to an increase in average loan balances and asset yields, offset by increases in the average balance of interest bearing liabilities and the cost of funds.
Net interest margin, on a tax-equivalent basis, was 3.14% for the second quarter of 2023, compared to 3.58% for the first quarter of 2023 and 3.19% for the second quarter of 2022. Excess liquidity reduced net interest margin by approximately 23 basis points for the quarter ended June 30, 2022.
Noninterest Income
Noninterest income for the quarter ended June 30, 2023 was $19.8 million, an increase of $835 thousand, or 4.4%, compared to the second quarter of 2022.
Insurance commission and fee income increased $479 thousand, or 10.3%, for the quarter ended June 30, 2023, primarily due to an increase in premiums for commercial lines. Other income increased $481 thousand, or 64.9%, for the quarter ended June 30, 2023, primarily due to $292 thousand of other real estate owned (“OREO”) income related to a commercial real estate loan transferred to OREO during the second quarter of 2022 and an increase of $232 thousand in fees on risk participation agreements for interest rate swaps. These increases were offset by a loss of $250 thousand on the planned sale of an interest in a shared national credit, as previously discussed.
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2023 was $49.8 million, an increase of $2.4 million, or 5.1%, compared to the second quarter of 2022. Excluding restructuring charges, expenses increased $1.1 million, or 2.3%.
Salaries, benefits and commissions increased $742 thousand, or 2.5%, for the quarter ended June 30, 2023. This increase reflects our expansion into Maryland and Western Pennsylvania and annual merit increases offset by a reduction in incentive compensation. Data processing expenses increased $429 thousand, or 11.6%, for the quarter ended June 30, 2023, primarily due to our investments in technology in recent years and general price increases incurred in the second half of 2022. Restructuring charges increased $1.3 million, as previously discussed. Other expense increased $757 thousand, or 11.8%, for the quarter ended June 30, 2023, primarily due to increases in retirement plan costs of $410 thousand, which is driven by the current interest rate environment. Professional fees decreased $1.2 million, or 41.3%, for the quarter ended June 30, 2023, primarily due to consultant fees incurred in the second quarter of 2022 related to our digital transformation initiative.
Tax Provision
The effective income tax rate was 19.8% for the quarters ended June 30, 2023 and 2022. The effective tax rates for the three months ended June 30, 2023 and 2022 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases.
Asset Quality and Provision for Credit Losses
Nonperforming assets were $34.5 million at June 30, 2023, compared to $32.4 million at March 31, 2023 and $34.7 million at June 30, 2022. During the quarter, a $5.8 million construction loan was placed on nonaccrual status and a $2.5 million nonaccrual commercial loan was paid off. Based on the value of the underlying collateral, an individual reserve was not recorded for the $5.8 million construction loan as of June 30, 2023.
Net loan and lease charge-offs were $512 thousand for the three months ended June 30, 2023 compared to $2.8 million and $1.7 million for the three months ended March 31, 2023 and June 30, 2022, respectively.
The provision for credit losses was $3.4 million for the three months ended June 30, 2023 compared to $3.4 million and $6.7 million for the three months ended March 31, 2023 and June 30, 2022, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at June 30, 2023 and March 31, 2023, and 1.27% at June 30, 2022.
Dividend
On July 26, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on August 23, 2023 to shareholders of record as of August 9, 2023.
Conference Call
Univest will host a conference call to discuss second quarter 2023 results on Thursday, July 27, 2023 at 9:00 a.m. EST. Participants may preregister at https://conferencingportals.com/event/QPDnglhR. The general public can access the call by dialing 1-888-330-2398; using Conference ID 38917. A replay of the conference call will be available through August 26, 2023 by dialing 1-800-700-2030; using Conference ID 38917.
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Yili’s 2023 Revenue Reaches 126.2 Billion Yuan, Leading Global Dairy Industry towards Healthy and Sustainable Development
HOHHOT, China, May 10, 2024 /PRNewswire/ — On April 29, Yili Group released its 2023 financial report, showing a record-breaking total operating income of 126.179 billion yuan and a net profit attributable to parent company of 10.429 billion yuan. This marked 31 consecutive years of steady growth.
On the same day, Yili also announced a plan to repurchase shares worth no less than 1 billion yuan but no more than 2 billion yuan. These shares will be entirely canceled to reduce the company’s registered capital.
During the reporting period, Yili’s entire range of products remained industry-leading. Its liquid milk business generated an operating income of 85.54 billion yuan, maintaining its top position in both scale and market share. The milk powder and dairy products recorded 27.598 billion yuan in revenue, up 5.09% year on year, and overall milk powder sales rose to the top of the Chinese market. The cold beverage business generated an operating income of 10.69 billion up, up 11.72% from the previous year, far exceeding the industrial average growth rate, and retained its market leadership for the 29th consecutive year.
Overseas business also performed well. In 2023, Yili’s overseas business income increased by 10.08% year on year, with products sold to over 60 countries and regions. Notably, Cremo and Joyday products gained significant popularity in Southeast Asia, while Joyday ice cream made a strong entry into Africa.
Yili has continuously improved and optimized its global supply chain network, achieving efficient synergy between its domestic and overseas bases. In May 2023, construction work commenced for a lactoferrin factory of Westland Dairy Company Limited, one of Yili’s subsidiaries. Once the factory is put into operation, it will be one of the top three lactoferrin producers worldwide. This capacity breakthrough is driven by innovative technological advancements that have spurred the transformation of research into tangible results.
In 2023, Yili made continuous breakthroughs in cutting-edge technologies, quickly translating these innovations into products that have set new trends in healthy consumption. One notable achievement was the development of a unique lactoferrin directional extraction and protection technology, which increased the lactoferrin retention rate in UHT milk from 10% to over 90%. Furthermore, the company solved the challenge of probiotic inactivation at ambient temperatures, creating new healthy consumption scenarios for yogurt.
With industry-leading technological capabilities as the foundation, the Group has launched bestselling new products such as the SATINE Active Lactoferrin Organic Milk and Ambpomial AMX Probiotic Yogurt, providing the company with new growth drivers.
These innovative achievements stem from the company’s long-term investment in technology. Recently, on the tenth anniversary of the Yili European Innovation Center, the center’s upgrade and the establishment of the Global Maternal and Child Nutrition Research Center were celebrated at Wageningen University in the Netherlands. Since its inception, the center has achieved remarkable results in areas like breast milk research, probiotics development, and innovative processes and technologies. Going forward, the center will focus on cutting-edge global dairy technologies to accelerate the application and commercialization of innovative results.
As an industry leader, Yili is not only achieving steady business growth but also emphasizing a sustainable future. The company actively promotes green and sustainable development, contributes to environmental protection and public welfare, and strives to create a win-win situation in economic, social, and environmental benefits.
Photo – https://mma.prnewswire.com/media/2409821/Yili.jpg
View original content:https://www.prnewswire.co.uk/news-releases/yilis-2023-revenue-reaches-126-2-billion-yuan-leading-global-dairy-industry-towards-healthy-and-sustainable-development-302142361.html
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Wirex Founder Pavel Matveev Joins COCA Wallet as a Strategy and Product Advisor
LONDON, May 10, 2024 /PRNewswire/ — COCA, the world’s first MPC wallet with a non-custodial debit card, is excited to announce that Pavel Matveev, the Founder of Wirex, a leading Web3 money app, has joined its team as a Strategy and Product Advisor.
Under the visionary leadership of Pavel, Wirex has soared to unprecedented heights in the digital finance sector. Today, boasting an expansive network of over 6 million customers across 130 countries, Wirex stands as a beacon of innovation and security in the multi-currency exchange arena.
As a principal member of industry giants Visa and Mastercard, and a trailblazer in the Web3 space, Pavel’s strategic direction has not only transformed Wirex into a vanguard of digital wealth management but also democratised access to cutting-edge financial services for users worldwide.
Pavel is a firm advocate for the mass adoption of cryptocurrencies, and founded the company as a solution to the then complex and confusing process of buying cryptocurrencies. He has published numerous articles in key international publications, and spoken at various blockchain and payments conferences around the world.
In his capacity as Strategy and Product Advisor at COCA, Pavel Matveev will provide strategic insights and guidance on product development, leveraging his expertise to enhance COCA’s offerings in the blockchain and cryptocurrency industry. His role will involve collaborating with COCA’s executive team to identify emerging trends, assess market opportunities, and refine the firm’s strategic direction.
Reflecting on his new role, Pavel Matveev expressed his enthusiasm, saying, “I am absolutely delighted to join COCA as a Strategy and Product Advisor. With an astounding 400% month-over-month growth, COCA has rapidly ascended as a leader in the cryptocurrency sector. I am looking forward to partnering with the talented team here to propel further innovation and significantly enhance value for our clients.”
COCA Wallet was launched in partnership with Wirex earlier this year. Powered by Wirex’s card infrastructure, COCA’s non-custodial debit card represented a transformative moment in the way security and convenience are perceived in digital finance. Within just one week of its launch, COCA has attracted users globally by surpassing 350,000 wallets. Additionally, COCA has received the ‘#1 Product of the Day’ award on the Product Hunt platform, highlighting its rapid adoption and innovative features.
The appointment of Pavel Matveev comes at a pivotal time for COCA, as the company continues to expand its service offerings and strengthen its position in the market.
Notes to editors:
About Wirex
Wirex is a prominent UK-based digital payments platform with over 6 million customers spread across 130 countries. It offers secure accounts, making it easy for users to store, purchase, and exchange multiple currencies seamlessly.
As a principal member of both Visa and Mastercard, Wirex goes beyond traditional services, embracing the evolving trends of Web3 to provide mainstream access to digital finance and wealth management.
Having processed transactions totalling $20 billion, Wirex aims to contribute to the adoption of a cashless society by facilitating straightforward transactions in various currencies worldwide. Wirex is simplifying digital payments, making it more accessible and convenient for people across the globe.
About COCA Wallet
COCA is the world’s first wallet with non-custodial debit card that leverages Multi-Party Computation (MPC) cryptography to ensure that your funds are safe from common risks associated with seed phrases and private keys, setting a new standard for security in the industry. With its non-custodial debit and virtual card, you can seamlessly spend your stablecoins and cryptocurrencies at over 40 million merchants across 200+ countries, all while maintaining complete control over your funds with zero third-party risks. COCA Wallet guarantees the best rates through our advanced routing engine, which scans and compares prices across 17 onramps and 182 local payment methods, ensuring optimal trading and conversion experiences.
Photo – https://mma.prnewswire.com/media/2409096/Pavel_Matveev.jpg
Logo – https://mma.prnewswire.com/media/2409095/Wirex_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/wirex-founder-pavel-matveev-joins-coca-wallet-as-a-strategy-and-product-advisor-302141629.html
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