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| 8-K - 8-K - UNIVEST FINANCIAL Corp | uvsp-20200923.htm |
Investor Presentation September 2020
Safe Harbor Statement Cautionary Note Regarding Forward‐Looking Statements The information contained in this presentation may contain forward‐looking statements. When used or incorporated by reference in disclosure documents, the words “believe,” “anticipate,” “estimate,” “expect,” “project,” “target,” “goal” and similar expressions are intended to identify forward‐looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward‐looking statements include but are not limited to: statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward‐looking statements are based on current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward‐looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Such forward‐looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to those set forth below: Operating, legal and regulatory risks; Economic, political and competitive forces impacting various lines of business; Legislative, regulatory and accounting changes; Demand for our financial products and services in our market area; Major catastrophes such as earthquakes, floods or other natural or human disasters and infectious disease outbreaks, including the current coronavirus (COVID‐19) pandemic, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies; Volatility in interest rates; Fluctuations in real estate values in our market area; The composition and credit quality of our loan and investment portfolios; Changes in the level and direction of loan delinquencies and charge‐offs and changes in estimates of the adequacy of the allowance for credit losses; Our ability to access cost‐effective funding; Our ability to continue to implement our business strategies; Our ability to manage market risk, credit risk and operational risk; Timing of revenue and expenditures; Adverse changes in the securities markets; Our ability to enter new markets successfully and capitalize on growth opportunities; Return on investment decisions; System failures or cyber‐security breaches of our information technology infrastructure and those of our third‐party service providers; Our ability to retain key employees; Other risks and uncertainties, including those occurring in the U.S. and world financial systems; and The risk that our analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful. 2
Safe Harbor Statement (cont’d) The COVID‐19 pandemic has caused significant economic dislocation in the United States as many state and local governments ordered non‐essential businesses to close and residents to shelter in place at home. While jurisdictions in which we operate have gradually allowed the reopening of businesses and other organizations and removed the sheltering restrictions, it is premature to assess whether doing so will result in a meaningful increase in economic activity and the impact of such actions on further COVID‐19 cases. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID‐19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated. As a result of the COVID‐19 pandemic and the related adverse local and national economic consequences, our forward‐looking statements are subject to the following risks, uncertainties and assumptions: Demand for our products and services may decline; If the economy is unable to substantially and successfully reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase; Collateral for loans, especially real estate, may decline in value; Our allowance for credit losses on loans and leases may increase if borrowers experience financial difficulties; The net worth and liquidity of loan guarantors may decline; A further and sustained decline in our stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause management to perform impairment testing on its goodwill or core deposit and customer relationships intangibles that could result in an impairment charge being recorded for that period, that would adversely impact our results of operations and the ability of the Bank to pay dividends to us; As a result of the decline in the Federal Reserve’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest‐bearing liabilities; A material decrease in net income or a net loss over several quarters could result in the elimination of or a decrease in the rate of our quarterly cash dividend; Our wealth management revenues may decline with continuing market turmoil; Our cyber security risks are increased as a result of an increase in the number of employees working remotely; FDIC premiums may increase if the agency experience additional resolution costs; and We face litigation, regulatory enforcement and reputation risk as a result of our participation in the Paycheck Protection Program (PPP) and the risk that the Small Business Administration may not fund some or all PPP loan guaranties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this presentation andinthe Univest Financial Corporation Annual Report on Form 10‐K for the year ended December 31, 2019 under the section entitled "Item 1A ‐ Risk Factors," as well as in the Form 10‐Q for the quarters ended March 31, 2020 and June 30, 2020, and from time to time in other filings made by the Corporation with the SEC. These forward‐looking statements speak only at the date of the presentation. The Corporation expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Corporation’s expectations with regard to any change in events, conditions or circumstances on which any such statement is based. 3
Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Management uses these “non‐GAAP” measures in its analysis of the Corporation’s performance. Management believes these non‐GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the Corporation believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non‐GAAP performance measures that may be presented by other companies. A reconciliation of the non‐GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation. 4
Univest Company Overview . Headquartered in Souderton, Pennsylvania (Montgomery County) . Bank founded in 1876, holding company formed in 1973 . Engaged in financial services business, providing full range of banking, insurance and wealth management services . Comprehensive financial solutions delivered locally . Experienced management team with proven performance track record . Physically serving twelve counties in the Southeastern and Central regions of Pennsylvania and three counties in Southern New Jersey . Customer base primarily consists of individuals, businesses, municipalities and nonprofit organizations . Operating leverage and scale with $6.1 billion of bank assets ($5.6 billion excluding Paycheck Protection Program (“PPP”) loans), $3.6 billion of assets under management and agent for $180 million of underwritten insurance premiums as of 6/30/20 . Most recent acquisition was 7/1/16 (Fox Chase Bank with $1.1 billion of assets) . Strong organic growth since 7/1/16, primarily driven by Central PA lift‐out (Q2 2016) 5
2020 Strategy Commercial Loan Organic Growth Multi‐prong approach to deposits: Continue to take advantage of • Commercial customers market dislocation & focus on hiring commercial lenders, • Comprehensive Treasury including potential team liftouts. Management offerings • Public Funds – Municipalities, ‐ March 2019 –8 hires, including 5 relationship managers/business developers Counties & Authorities in Western Lancaster County/York County • Retail Promotions & Enhanced ‐ April 2019 –3 relationship managers hired Digital Capabilities in the Philadelphia suburbs of Southern New • Brokered Deposits Jersey Continued investment in Thoughtfully navigate COVID‐19 digital, technology by working with customers & infrastructure & customer employees to address evolving relationship management needs tools Opportunistic, but disciplined, approach Cross‐sell/Integration of our comprehensive to wealth & insurance acquisitions suite of products & services 6
Attractive Investment Opportunity . Super‐Community Bank located in attractive Southeastern Pennsylvania market . Diversified lines of business and revenue streams (targeting 28 – 30% of total revenue for 2020) . Ability to scale and obtain operating leverage . Strong year‐to‐date 2020 earnings performance: . Core ROAA of 1.13% (1) . Core ROAE of 9.7% (1) . Core ROATE of 13.15% (1) (2) . Dividend Yield of 5.57% (3) . Attractive valuation – . 10.6x Projected 2021 EPS (3)(4) . 0.88x Tangible Book Value per Share (3)(5) (1) Calculated using “Core Net Income” which is a Non‐GAAP measure. Refer to appendix for reconciliation. (2) Calculated using “Average Tangible Common Equity” which is a Non‐GAAP measure. Refer to appendix for reconciliation. (3) Based on price of $14.36 (represents 9/22/20 closing price). (4) Based on analyst average consensus of $1.36 EPS for 2021 (KBW projection of $1.34, Piper Sandler projection of $1.49, Raymond James projection of $1.20 and Stephens projection of $1.41). (5) Calculated using “Tangible Common Equity” which is a Non‐GAAP measure. Refer to appendix for reconciliation. 7
COVID-19 Response Responsibly serve the needs of our customers while prioritizing the health and safety of our employees Financial Centers Supporting Our Customers . Under quarantine environment, financial centers . Paycheck Protection Program (“PPP”) Loans operated as drive‐through only . Funded $510 million in gross loans through the . Vestibule banking utilized at locations without a drive‐ SBA program through . Modified Loans & Leases . Access to safe deposit boxes via appointment . Approximately 1,420 deferrals of principal and/or . 6/22 –six financial centers re‐opened interest . 6/29 –re‐opened all but one remaining financial center . Principal balance of $720.1 million as of 6/30 . Additional safety protocols in place –as guided by . Represents 16.2% of the loan portfolio (excl. PPP) Commonwealth of PA and State of NJ . Waived certain deposit charges during the lockdown phase Employees . Guided customers towards digital solutions where . ~95% of non‐branch personnel able to work remotely applicable . . Quickly deployed Pandemic Plan and adapted processes Continued focus on high levels of customer service to minimize business interruption . Supported by strong IT infrastructure 8
SUMMARY FINANCIAL HIGHLIGHTS
1st Half 2020 Results Earnings Loans & Deposits . Reported Earnings: $2.9 million . Annualized Loan Growth excl. PPP: 3.0% . $0.10 per share . Includes $89.5 million decrease in commercial line . Core Earnings(1): $32.1 million utilization . 29.8% utilization at 6/30/20 . $1.10 per share . Reported ROAA: 0.10%/Core ROAA(1): 1.13% . Annualized Deposit Growth: 23.4% (2) . Reported ROATE: 1.20%/Core ROATE : 13.15% . Average Loan to Deposit Ratio: 100.9% Key Ratios . Net Interest Margin of 3.48% in 2020 vs. 3.65% in FY 2019 (tax‐equivalent excluding purchase accounting, PPP loans for 2020 and excess liquidity) . Reported Efficiency Ratio of 61.7%; Adjusted Efficiency Ratio of 62.3% . Includes PA capital stock tax expense ‐ increases efficiency ratio by approx. 170 bps . Non‐Performing Assets to Total Assets of 0.59% (0.64% excluding PPP loans) vs. 0.73% at 12/31/19 . Includes a $8.1 million OREO property which is under agreement of sale . Tangible Equity(2) to Tangible Assets of 8.06% and Tangible Book Value Per Share of $16.41 at 6/30/20 (1) Calculated using “Core Net Income” which is a Non‐GAAP measure. Refer to appendix for reconciliation. (2) Calculated using "Tangible Common Equity" which is a Non‐GAAP measure. Refer to appendix for reconciliation. 10
Core Diluted Earnings Per Share* 11.3% Core EPS annual growth from YTD 6/30/17 to YTD 6/30/20 *Calculated using "Core Net Income Allocated to Common Shares" which is a Non‐GAAP measure. Refer to appendix for reconciliation. Note: Graph begins with March 2017, representing first quarter subsequent to Fox Chase Bank acquisition with no transaction related costs. 11
Pre-Tax Pre-Provision Income* 225 bp Fed rate reduction * Non‐GAAP Measure – refer to Appendix for reconciliation 12
Tangible Book Value Per Share* Target 8‐10% Annual Growth(1) Benefit of 12/2017 Capital Raise = $1.21 *Calculated using "Tangible Common Equity" which is a Non‐GAAP measure. Refer to appendix for reconciliation. (1) Assumes no Wealth Management or Insurance acquisitions. 13
Strong ROAA & ROTE Core ROAA* Core ROTE** *Calculated using "Core Net Income" which is a Non‐GAAP measure. Refer to **Calculated using "Core Net Income" and "Average Tangible Common Equity" appendix for reconciliation. which are Non‐GAAP measures. Refer to appendix for reconciliation. 14
Loan Growth by Segment Loan Detail ‐ $ in thousands (excl. PPP) $4.4B $4.5B $4.5B $4.2B $4.3B $4.0B $4.1B $3.8B $3.9B $3.6B $3.7B $3.5B $3.5B $3.3B $3.3B $3.1B $3.2B *Includes Fox Chase Bank, which was acquired on July 1, 2016 15
Deposit Growth by Segment Deposit Detail ‐ $ in thousands $4.9B $4.3B $4.4B $4.4B $4.1B $4.0B $3.8B $3.9B $3.6B $3.5B $3.5B $3.5B $3.4B $3.3B $3.3B $3.1B $3.2B *Includes Fox Chase Bank, which was acquired on July 1, 2016 16
Net Interest Income (Asset Sensitive) Core Net Interest Margin*(1) Excludes Purchase Accounting *Proforma tax equivalent margin calculation excludes purchase accounting accretion and is based upon a proforma 21% tax rate for all periods presented (1) Calculated using “Core Net Interest Income excluding PPP” which is a Non‐GAAP measure. Refer to appendix for reconciliation. (2) Calculated using “Core Net Interest Income excluding PPP” and “Average Interest Earning Assets excluding Excess Liquidity and PPP Loans”, which are Non‐GAAP measures. Refer to appendix for reconciliation. 17
Efficiency Ratios UVSP pays a Bank Share Tax rather than Bank Income Tax to the Commonwealth of Pennsylvania as a result of our type of charter. This amount is included in noninterest expense and increases our efficiency ratio by approximately 170 bps compared to other banks that do not have this tax. UVSP’s effective tax rate would be approximately 400 bps higher if the Bank Shares Tax was included in income tax expense. YTD % as of 6/30 *Non‐GAAP measure. Refer to appendix for reconciliation. **Based upon a proforma 21% tax rate for all periods presented. 18
Revenue Revenue = Net Interest Income + Non‐Interest Income Revenue Revenue by Business Unit (year‐to‐date 6/30/20) *2020 is an annualized figure –(Q1+Q2). Excludes PPP Loan impact 19
Assets $6.1B $5.4B $5.0B $4.6B $4.2B Chart data as of December 31 except for 2020 (6/30). 2020 excluding PPP Loans = $5.6B 20
Liabilities and Deposits Liabilities Deposits Chart data as of December 31 except for 2020 (6/30) 21
Stable Asset Quality Nonperforming Assets Nonaccrual Loans and Leases Chart data as of December 31 except for 2020 (6/30) Note: 2020 includes a $2.7 million charge off related to a $8.1 million loan that was transferred to OREO during Q2 2020. Valuation based on a letter of intent to sell the property. Loan was placed on non‐accrual in Q1 2018. 2020 ACL increase driven by CECL adoption and COVID‐19 impact on related economic forecast assumptions. 22
Current Expected Credit Loss (CECL) Implementation . On January 1, 2020, the Corporation adopted Accounting Standard Update No. 2016‐13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”). Upon adoption, the Corporation recognized: . $12.9 million increase in the allowance for loans and leases credit losses . $1.1 million increase in the reserve for unfunded commitments . $300 thousand increase in the allowance for investment credit losses . This resulted in an after‐tax retained earnings adjustment of $11.3 million . During the six months ended June 30, 2020, the provision for credit losses was $45.6 million, of which $42.0 million related to loans and leases, $3.0 million related to unfunded commitments and $555 thousand related to investment securities . While the Corporation’s portfolio has not yet demonstrated material indications of weakness, provisioning under CECL reflects forward‐looking economic assumptions; $40.2 million of the year‐to‐ date provision was attributable to changes in these forward‐looking economic assumptions . Since 12/31/19, the allowance for loan and lease credit losses has increased 144% . At 6/30/20, the allowance for loan and lease credit losses as a percentage of loans and leases held for investment (excluding PPP loans) was 1.94% compared to 0.81% at 12/31/19 23
LIQUIDITY AND CAPITAL
Liquidity and Capital Liabilities & Shareholders’ Equity Borrowing Sources –as of 6/30/20 Remaining Balance Capacity FHLB ‐ Pittsburgh$ 200.0 $ 1,460.0 Federal Fund Lines (10 lenders)* ‐ 504.0 FRB ‐ Philadelphia ‐ 74.3 Univest Financial Corp. LOC ‐ 10.0 Total$ 200.0 $ 2,048.3 * Uncommitted lines ranging from $15M to $125M Wholesale Term Funding Maturities –as of 6/30/20 Period Amount Q3 2020$ 5.0 Q4 2020 15.0 2021* 227.5 2022 35.0 2023 50.2 2024 60.0 Total$ 392.7 * $182.5M from Fed related to PPP All data in millions, as of 6/30/20 25
Strong Capital Ratios Provide for Operating Flexibility Univest Financial Corporation (Parent) Univest Bank & Trust Co. (Bank) Cash Position of $73.0M at 6/30/20 26
Largest Deposit Relationships – As of 6/30/2020 Deposits (excluding Brokered Deposits) Rank Type Balance (000s) Weighted Average Rate 1 Bus/Commercial 126,259 0.00% 2 Bus/Commercial 114,672 0.18% 3 Bus/Commercial 76,627 0.00% 4 Public Funds 71,564 0.24% 5 Bus/Commercial 38,427 0.01% 6 Public Funds 26,114 0.31% 7 Public Funds 25,728 0.27% 8 Bus/Commercial 23,062 0.47% 9 Bus/Commercial 22,575 0.22% 10 Bus/Commercial 22,092 1.56% 11 Bus/Commercial 21,072 0.00% 12 Bus/Commercial 20,751 0.03% 13 Bus/Commercial 20,381 0.01% 14 Public Funds 20,306 0.22% 15 Bus/Commercial 19,313 0.00% 16 Public Funds 18,111 0.25% 17 Public Funds 17,417 0.47% 18 Public Funds 17,114 0.25% 19 Bus/Commercial 15,577 0.34% 20 Bus/Commercial 15,454 0.00% 27
Investments Investment Portfolio at 6/30/20 Investment Portfolio Details Municipal Bonds Corporate Bonds (in millions) (in millions) Moody's Rating State Moody's Rating Aaa$ 2 PA$ 16 Aa3$ 1 Aa3 4 CT 1 Aa2 1 Aa2 2 MA 1 Aa1 1 A1 1 NJ 1 A3 33 A2 2 TN 1 A2 40 NR* 11 TX 1 A1 5 $ 21 $ 21 Baa2 1 Baa1 1 S&P A‐ 10 *S&P Rating Type $ 91 AA$ 8 GO$ 16 AA‐ 2 REV 5 A1 $ 21 NR ‐ $ 11 ($398 Million at 6/30/20) 28
LOAN PORTFOLIO DETAIL AND CREDIT OVERVIEW
Loans Loan & Lease Detail at 6/30/2020 (excluding PPP) CRE Portfolio at 6/30/2020 Excludes PPP Loans ($4.5 Billion at 6/30/20 excluding PPP) 30
Largest Loan Exposures – As of 6/30/20 Commercial Real Estate and Residential Real Estate Secured for Business Purposes Commercial & Industrial $2,599 MM | Avg Loan Size $472k $823 MM | Avg Loan Size $174k Risk Exposure Risk Exposure Rank Loan Type/Industry Rating ('000s) Geography Rank Loan Type/Industry Rating ('000s) Geography 1CRE ‐ Office Pass$ 33,952 Southeastern PA 1 Private Equity Investment Group Pass$ 38,500 Southeastern PA 2CRE ‐ Retail Pass$ 33,000 New Jersey 2 Vacuum Furnace / Metal Heat Treating Pass$ 32,608 Southeastern PA 3CRE ‐ Industrial/Warehouse Pass$ 32,900 Southeastern PA 3 Health Care & Home Care Products Pass$ 32,123 New York City 4Hotels / CRE ‐ Retail & Office Pass$ 31,432 Lehigh Valley 4 Meat Processing Pass$ 30,256 Southeastern PA 5Land Subdivision Pass$ 29,251 Southeastern PA 5 Direct Mortgage Lending Company Pass$ 30,000 New Jersey 6 Hotels Pass$ 29,132 New Jersey 6 Mortgage & Nonmortgage Loan Brokers Pass$ 30,000 New Jersey 7CRE ‐ Various Pass$ 28,336 Lehigh Valley 7 Mortgage & Nonmortgage Loan Brokers Pass$ 30,000 Arizona 8CRE ‐ Retail Pass$ 27,331 Southeastern PA 8 Highway, Street & Bridge Construction / Quarry Pass$ 29,949 Southeastern PA 9CRE ‐ Industrial/Warehouse Pass$ 26,701 Southeastern PA 9 Electrical & Wiring Installation Contractors Pass$ 29,236 Southeastern PA 10 Single Family Home Construction Pass$ 25,642 New Jersey 10 Poultry Farms Pass$ 25,295 Southeastern PA Equipment Finance Consumer Loans $154 MM | Avg Balance per Account $42k $665 MM | Avg Loan Size $284k (Res Mtg) / $36k (HE) / $14k (Cons) Risk Net Book Risk Exposure Rank Loan Type/Industry Rating Value ('000s) Geography Rank Loan Type Rating ('000s) Geography 1Real Estate Agent ‐‐‐N/A‐‐‐ $ 1,759 New Jersey 1 1st Lien Residential Mortgage ‐‐‐N/A‐‐‐ $ 2,929 New Jersey 2 School District$ 1,332 New Jersey 2 1st Lien Residential Mortgage$ 2,910 New Jersey 3 School District$ 1,320 New Jersey 3 1st Lien Residential Mortgage$ 2,888 Pennsylvania 4 Merchandising Machine Operations$ 1,229 Michigan 4 1st Lien Residential Mortgage$ 2,881 Pennsylvania 5 School District$ 1,158 New Jersey 5 1st Lien Residential Mortgage$ 2,810 New Jersey 6 Family Services$ 920 Maryland 6 1st Lien Residential Mortgage$ 2,642 Florida 7 School District$ 892 New Jersey 7 Consumer Inst ‐ Rev LOC$ 2,429 Pennsylvania 8 School District$ 858 New Jersey 8 Consumer Inst ‐ Rev LOC$ 2,329 Pennsylvania 9 Municipality$ 852 Pennsylvania 9 1st Lien Residential Mortgage$ 2,214 New Jersey 10 Regional Police$ 758 Pennsylvania 10 1st Lien Residential Mortgage$ 2,115 Pennsylvania 31
Loan Portfolio Overview – As of 6/30/20 Total Outstanding Balance (excl PPP), $ in % of Commercial Loan PPP $ (1), % of Portfolio with PPP $ Balance of Modified Modified Loans as a % of Industry Description millions Portfolio $ in millions Loans (2) Loans, $ in millions Portfolio(3) CRE ‐ Retail $260.7 7.1% $0.2 0.0% $124.7 47.8% Animal Production $240.3 6.6% $0.7 2.1% $20.7 8.6% CRE ‐ 1‐4 Family Residential Investment $238.7 6.5% $1.3 0.2% $26.9 11.3% CRE ‐ Office $208.0 5.7% $0.0 0.0% $16.4 7.9% CRE ‐ Multi‐family $182.3 5.0% $0.0 0.0% $11.8 6.5% Hotels & Motels (Accommodation) $171.7 4.7% $2.4 50.4% $146.6 85.4% Nursing and Residential Care Facilities $155.4 4.3% $7.9 27.4% $0.0 0.0% CRE ‐ Industrial / Warehouse $125.4 3.5% $0.1 4.8% $26.3 21.0% Real Estate Lenders, Secondary Market Financing $116.9 3.2% $4.3 18.6% $0.0 0.0% Specialty Trade Contractors $114.7 3.2% $66.9 15.3% $6.0 5.3% CRE ‐ Mixed‐Use ‐ Residential $107.2 3.0% $0.0 0.0% $34.5 32.1% Professional, Scientific, and Technical Services $100.4 2.8% $70.1 30.4% $11.6 11.6% Homebuilding (tract developers, remodelers) $91.1 2.5% $15.0 6.7% $3.3 3.7% Education $89.9 2.5% $15.6 39.8% $6.7 7.4% Merchant Wholesalers, Durable Goods $71.7 2.0% $20.7 21.0% $9.7 13.5% Fabricated Metal Product Manufacturing $68.4 1.9% $12.9 3.7% $6.1 8.9% Crop Production $61.9 1.7% $0.3 0.6% $3.2 5.2% Food Services and Drinking Places $61.1 1.7% $15.9 25.5% $33.9 55.5% CRE ‐ Medical Office $59.8 1.6% $0.0 0.0% $14.7 24.7% Administrative and Support Services $54.4 1.5% $28.8 33.0% $1.6 2.9% Motor Vehicle and Parts Dealers $51.8 1.4% $11.6 5.5% $18.0 34.8% Food Manufacturing $51.0 1.4% $3.0 1.4% $17.5 34.4% Industries with >$50 million in outstandings $2,682.8 73.8% $277.7 11.6% $540.2 20.1% Industries with <$50 million in outstandings $951.0 26.2% $221.3 19.2% $126.2 13.3% Total Commercial Loans $3,633.8 100.0% $499.0 13.6% $666.4 18.1% Total Outstanding PPP $, $ Balance of Modified Modified Loans as a % of Consumer Loans and Lease Financings Balance $ in millions Loans, $ in millions Portfolio(3) Real Estate‐Residential Secured for Personal Purpose $462.5 $0.0 $35.5 7.7% Real Estate‐Home Equity Secured for Personal Purpose $173.1 $0.0 $4.1 2.4% Loans to Individuals $29.2 $0.0 $0.5 1.7% Lease Financings $154.2 $0.0 $13.6 8.8% Total Consumer Loans and Lease Financings $819.0 $0.0 $53.7 6.6% Total $4,452.8 $499.0 $720.1 16.2% (1) Includes ($11.0) million of net deferred fees. (2) Represents weighted average percent of the portfolio which received a PPP loan. (3) Loan modifications referenced above were made in accordance with Section 4013 of the CARES Act and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and therefore were not classified as TDRs. 32
Modification Update – As of 9/18/20 ($ in millions) Modified Loans Modified Loans Modified Loans Balance as of As a % of 6/30/2020 Portfolio Balance as of As a % of 6/30/2020 Portfolio Balance as of As a % of 6/30/2020 Portfolio Industry Description 6/30/2020 (Excl. PPP Loans) 8/14/2020 (Excl. PPP Loans) 9/18/2020 (Excl. PPP Loans) CRE ‐ Retail $124.7 47.8% $97.1 37.2% $81.0 31.1% Animal Production $20.7 8.6% $13.0 5.4% $2.9 1.2% CRE ‐ 1‐4 Family Residential Investment $26.9 11.3% $8.1 3.4% $2.1 0.9% CRE ‐ Office $16.4 7.9% $8.7 4.2% $2.6 1.3% CRE ‐ Multi‐family $11.8 6.5% $2.2 1.2% $3.0 1.6% Hotels & Motels (Accommodation) $146.6 85.4% $134.3 78.2% $143.0 83.3% Nursing and Residential Care Facilities $0.0 0.0% $0.0 0.0% $0.0 0.0% CRE ‐ Industrial / Warehouse $26.3 21.0% $2.3 1.8% $2.0 1.6% Real Estate Lenders, Secondary Market Financing $0.0 0.0% $0.0 0.0% $0.0 0.0% Specialty Trade Contractors $6.0 5.2% $0.5 0.4% $0.0 0.0% CRE ‐ Mixed‐Use ‐ Residential $34.5 32.2% $26.1 24.3% $23.9 22.3% Professional, Scientific, and Technical Services $11.6 11.6% $1.0 1.0% $0.1 0.1% Homebuilding (tract developers, remodelers) $3.3 3.6% $2.4 2.6% $0.0 0.0% Education $6.7 7.5% $1.1 1.2% $1.1 1.2% Merchant Wholesalers, Durable Goods $9.7 13.5% $5.8 8.1% $5.8 8.1% Fabricated Metal Product Manufacturing $6.1 8.9% $0.0 0.0% $0.0 0.0% Crop Production $3.2 5.2% $2.5 4.0% $0.0 0.0% Food Services and Drinking Places $33.9 55.5% $24.3 39.8% $18.7 30.6% CRE ‐ Medical Office $14.7 24.6% $14.1 23.6% $13.5 22.7% Administrative and Support Services $1.6 2.9% $1.3 2.3% $1.3 2.4% Motor Vehicle and Parts Dealers $18.0 34.7% $0.5 1.0% $0.0 0.0% Food Manufacturing $17.5 34.3% $0.0 0.1% $0.0 0.1% Industries with >$50 million in outstandings $540.2 20.1% $345.3 12.9% $301.1 11.2% Industries with <$50 million in outstandings $126.2 13.3% $70.9 7.5% $54.0 5.7% Total Commercial Loans $666.4 18.3% $416.2 11.5% $355.1 9.8% Consumer Loans and Lease Financings Real Estate‐Residential Secured for Personal Purpose $35.5 7.7% $29.3 6.3% $22.5 4.9% Real Estate‐Home Equity Secured for Personal Purpose $4.1 2.4% $2.9 1.7% $1.9 1.1% Loans to Individuals $0.5 1.7% $0.5 1.7% $0.4 1.4% Lease Financings $13.6 8.8% $3.8 2.5% $0.0 0.0% Total Consumer Loans and Lease Financings $53.7 6.6% $36.5 4.5% $24.8 3.0% Total $720.1 16.2% $452.7 10.2% $379.9 8.5% 33
Credit Infrastructure Approval Process . Experienced credit team . Conservative credit culture . Centralized credit approval process . Low levels of authority in the field . Rigorous underwriting and disciplined committee approval required Risk Management Process Line of Business Credit/Risk Owns Borrower Relationship Owns Borrower Risk Business/Industry Expertise or Analysis Risk Assessment/Analysis Underwriting Process Portfolio Risk Assessment Transaction Structure Credit Risk Structure Negotiations Approval Sign‐off Term Sheet Independent Loan Review Shared Approval Process 34
Credit Overview . Limited single signature lending authority. Joint signature up to $5.0 MM, then management level loan committee for the largest exposures. . Itemized report of all approvals to weekly Officer Loan Committee. . Robust independent loan review process. Quarterly review cycle. . Credit Officer involvement in all relationships > $1.5MM, exceptions to Officer Loan Committee. . Generally, lending is in Pennsylvania, Delaware, New Jersey and Maryland. . Management of risk appetite through quarterly reporting to ERM Committee. . In‐House commercial concentrations levels vs. policy limits, out of market lending report, largest commercial borrowers, regulatory concentrations vs. risk based capital, CRE regulatory guidance report. . CRE portfolio trends and market analysis, with stress testing, presented annually to ERM Committee, meeting regulatory expectations for portfolio stress testing. . Independent departments for appraisal and environmental report ordering, construction loan disbursement and monitoring and loan grading risk assessments. . Chief Risk Officer (Megan Santana) reports directly to the Board of Directors. 35
BUSINESS OVERVIEW
Univest Primary Physical Service Area Twelve counties in Southeastern and Central Pennsylvania and three counties in Southern New Jersey 37
Univest Financial Center Locations 38
Market Opportunity . With BB&T Corporation’s acquisitions of Susquehanna Bancshares and National Penn Bancshares, and WSFS Financial Corporation’s acquisition of Beneficial, Univest is one of the three largest community focused financial institutions remaining headquartered in the Philadelphia market (Bryn Mawr Bank Corporation and WSFS) . Univest Bank and Trust Co. operates in twelve counties in Pennsylvania including: Berks, Bucks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia and York . Of these twelve counties, the Univest financial center network is present in seven: Bucks, Chester, Lancaster, Lehigh, Montgomery, Northampton and Philadelphia Market Share (6/30/19) Market Market # of Deposits 6/2019 6/2018 Rank Branches Share % Share % Montgomery County 5th 13 $2.3B 7.8% 7.3% Bucks County 6th 11 $1.0B 5.3% 5.1% Philadelphia County 12th 6 $472M 1.0% 0.8% Lancaster County 13th 5 $264M 2.3% 1.3% Source: FDIC Market Share Data 39
Executive Leadership Team Tenure (yrs.) Name Age Title with Univest Jeffrey M. Schweitzer 47 12 President and CEO, Univest Financial Corporation Michael S. Keim 52 11 President, Univest Bank and Trust Co. Brian J. Richardson 37 4 Executive Vice President, Chief Financial Officer (Former Fox Chase Director of Accounting for five years) Megan D. Santana 45 4 Senior Executive Vice President, Chief Risk Officer and General Counsel Duane J. Brobst 67 26 Senior Executive Vice President, Chief Credit Officer Michael S. Fitzgerald 56 4 President, Commercial Banking, East Penn and NJ Division (Former Fox Chase Chief Lending Officer for seven years) Thomas J. Jordan 52 4 President, Commercial Banking, Central PA Division Ronald R. Flaherty 53 11 President, Univest Insurance, Inc. David W. Geibel 47 6 President, Girard (Univest Wealth Management Division) William J. Clark 56 14 President, Univest Capital, Inc. Brian E. Grzebin 48 2 President, Mortgage Banking Division Dana E. Brown 52 3 Executive Vice President, Consumer Services Eric W. Conner 49 14 Executive Vice President and Chief Information Officer M. Theresa Schwartzer 50 16 Executive Vice President and Director of Human Resources Annette D. Szygiel 57 16 Executive Vice President and Chief Experience Officer 40
Commercial Banking Commercial Banking Commercial Loan Detail as of 6/30/20 . 90 lenders, relationship managers and portfolio managers operating in two divisions established by geography (serving clients primarily in Pennsylvania, New Jersey, Delaware and Maryland) • East Penn and New Jersey: Bucks, Montgomery, Chester, Delaware, Berks, Philadelphia, Lehigh and Northampton counties in Pennsylvania and Cape May, Atlantic and Burlington counties in New Jersey • Central PA: Lancaster, York, Cumberland and Dauphin counties . Average loan size • Commercial real estate ‐ $472,000 • C&I ‐ $174,000 • Tax‐exempt ‐ $2.0 million . Commercial customer base provides large opportunity for cross‐sell of cash management (deposits), wealth management and insurance products and services ($3.6 Billion; represents 81.6% of total loans excl. PPP) 41
Consumer Banking . 39 financial service centers located in Bucks, Chester, Lancaster, Lehigh, Montgomery, Northampton and Philadelphia counties in PA and Ocean City, NJ; also operating 14 retirement centers in Bucks and Montgomery counties . Proactively addressed continued reduction in transactional volume by closing fifteen financial centers since September 2015; Reinvesting savings to cover our operating footprint . Continued evaluation and optimization of financial center network; and . Consolidate historical core market and reinvest in expanded footprint and technology . Financial centers staffed by combination of personal bankers and tellers, providing both transaction and consultative services augmented by technology . Focused on creating seamless customer experience between in‐person and digital . Growth strategy focused on obtaining consumer business from commercial customers and their employee base 42
Mortgage Banking Mortgage Banking Residential Mortgage Originations . 34 Home Loan Consultants operating in Bank’s core footprint . Centralized processing, closing and underwriting . Primarily agency lender: FNMA, FHLMC, FHA, VA and USDA . FNMA and FHLMC eligible loans sold servicing retained . Received approval as a GNMA issuer in 2018 . FHA, VA and USDA loans currently sold to correspondents servicing released; we will be ramping up in‐house securitization with servicing retained in 2020 . Portfolio primarily non‐conforming . $1.1 billion in loans serviced for others as of 6/30/20 . Residential mortgages (includes home equity loans) on balance sheet of $636 million or 14.3% of total loans (excl. PPP) as of 6/30/20 Chart data as of and for years ended 12/31 except 2020 (6/30) 43
Univest Capital, Inc. Univest Capital Lease Financing . Equipment financing business with $154 million in lease receivables as of 6/30/20 − Average lease size $42,000, typically with four year term . Primary industries served: health care, education/office, automotive, golf/turf, technology and energy . Manage residual risk by primarily using $1 buyout leases (~$927K of residuals as of 6/30/20) Chart data as of and for years ended 12/31 except 2020 (6/30) 44
Wealth Management Wealth Management Assets Under Management . Comprehensive wealth management platform including broker / dealer, municipal pension services, registered investment advisor, retirement plan services and trust . Effective 1/1/19, the wealth management division was rebranded as Girard (i.e. Girard Advisory Services, LLC, Girard Benefits Group, LLC, Girard Pension Services, LLC, Girard Investment Services, LLC) . Organic growth supplemented by acquisition • Trust powers obtained in 1928 • Broker / Dealer acquired in 1999 • Municipal pension operation acquired in 2008 • Registered investment advisor, Girard Partners, acquired in 2014 . $3.6 billion in assets under management/ supervision at 6/30/20 Chart data as of 12/31 except for 2020 (6/30) 45
Insurance Insurance Agent Written Premiums . Independent insurance agency with more than 60 carrier relationships . Full service agency providing commercial and personal lines, employee benefits and HR consulting solutions . Built via a series of eight acquisitions beginning in 2000. Last acquisition was Sterner Insurance in 2014, provided presence in Lehigh Valley . Agent for written premiums of $180 million as of 6/30/20 Chart data as of 12/31 except 2020 (6/30) 46
APPENDIX (Non‐GAAP Reconciliations)
Appendix – Non-GAAP Reconciliations This presentation includes financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The management of Univest Financial Corporation uses these non‐GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non‐GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See below tables for additional information. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $s in thousands 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 1. Core Net Income Allocated to Common Shares Net income allocated to common shares$ 10,743 $ 11,656 $ 11,100 $ 10,185 $ 12,753 $ 4,325 $ 14,878 $ 18,264 $ 16,012 $ 16,408 $ 17,604 $ 15,459 $ 838 $ 2,082 Less: BOLI Death Benefits allocated to common shares ‐ 879 ‐ ‐ ‐ 441 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Plus: Restructuring Charges allocated to common shares ‐ ‐ ‐ ‐ 446 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Plus: Borrower Fraud Related Charge‐off allocated to common shares ‐ ‐ ‐ ‐ ‐ 9,949 ‐ (1,430) ‐ ‐ ‐ ‐ ‐ ‐ Plus: Deferred Tax Asset Revaluation allocated to common shares ‐ ‐ ‐ 1,039 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less: FDIC Small Bank Assessment Credit ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 779 90 ‐ ‐ Plus: Allowance for credit losses ‐ economic assumptions directly impacted by COVID‐19 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 16,023 15,723 Less: Paycheck Protection Program ("PPP") Activity ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,597 Core Net Income allocated to common shares $ 10,743 $ 10,777 $ 11,100 $ 11,224 $ 13,199 $ 13,832 $ 14,878 $ 16,834 $ 16,012 $ 16,408 $ 16,825 $ 15,369 $ 16,861 $ 15,207 2. Tangible Common Equity Shareholders' Equity $ 511,880 $ 521,306 $ 528,798 $ 603,374 $ 606,719 $ 605,294 $ 614,242 $ 624,133 $ 637,606 $ 651,670 $ 664,299 $ 675,122 $ 651,551 $ 654,873 Less: Goodwill 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 Less: Other Intangibles(1) 9,421 8,687 8,011 7,336 6,741 6,159 5,690 5,222 4,805 4,396 4,026 3,658 3,333 3,017 Tangible Common Equity $ 329,900 $ 340,060 $ 348,228 $ 423,479 $ 427,419 $ 426,576 $ 435,993 $ 446,352 $ 460,242 $ 474,715 $ 487,714 $ 498,905 $ 475,659 $ 479,297 3. Core Net Income Net Income $ 10,856 $ 11,778 $ 11,196 $ 10,264 $ 12,850 $ 4,357 $ 14,964 $ 18,372 $ 16,079 $ 16,468 $ 17,662 $ 15,510 $ 838 $ 2,085 Less: BOLI Death Benefits ‐ 889 ‐ ‐ ‐ 446 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Plus: Restructuring Charges ‐ ‐ ‐ ‐ 451 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Plus: Borrower Fraud Related Charge‐off ‐ ‐ ‐ ‐ ‐ 10,057 ‐ (1,446) ‐ ‐ ‐ ‐ ‐ ‐ Plus: Deferred Tax Asset Revaluation ‐ ‐ ‐ 1,050 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less: FDIC Small Bank Assessment Credit ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 781 90 ‐ ‐ Plus: Allowance for credit losses ‐ economic assumptions directly impacted by COVID‐19 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 16,060 15,743 Less: Paycheck Protection Program ("PPP") Activity ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,601 Core Net Income $ 10,856 $ 10,889 $ 11,196 $ 11,314 $ 13,301 $ 13,968 $ 14,964 $ 16,926 $ 16,079 $ 16,468 $ 16,881 $ 15,420 $ 16,898 $ 15,227 4. Average Tangible Common Equity Average Shareholders' Equity $ 509,054 $ 517,697 $ 527,032 $ 554,071 $ 605,973 $ 611,667 $ 611,803 $ 619,204 $ 631,574 $ 645,538 $ 659,523 $ 672,647 $ 673,460 $ 660,950 Less: Average Goodwill 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 172,559 Less: Average Other Intangibles(1) 9,821 9,080 8,379 7,700 7,064 6,468 5,947 5,473 5,031 4,615 4,234 3,853 3,506 3,185 Average Tangible Common Equity $ 326,674 $ 336,058 $ 346,094 $ 373,812 $ 426,350 $ 432,640 $ 433,297 $ 441,172 $ 453,984 $ 468,364 $ 482,730 $ 496,235 $ 497,395 $ 485,206 (1) Amount does not include servicing rights 48
Appendix – Non-GAAP Reconciliations (cont.) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 $s in thousands 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 5. Core Net Interest Income excluding PPP Net Interest Income$ 34,283 $ 35,300 $ 36,887 $ 36,705 $ 37,272 $ 38,990 $ 40,423 $ 41,376 $ 41,523 $ 42,635 $ 42,645 $ 42,429 $ 42,468 $ 43,518 Less: Purchase Accounting Net Interest Income 764 743 1,064 449 146 349 343 199 60 186 65 449 (27) (8) Less: PPP Net Interest Income ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,012 Core Net Interest Income excluding PPP$ 33,518 $ 34,557 $ 35,823 $ 36,256 $ 37,126 $ 38,642 $ 40,079 $ 41,176 $ 41,463 $ 42,448 $ 42,580 $ 41,980 $ 42,495 $ 41,514 6. Core Noninterest Expense & Core Noninterest Expense, excluding PA shares tax Noninterest expense$ 32,029 $ 32,549 $ 32,695 $ 33,440 $ 35,125 $ 34,347 $ 34,370 $ 33,397 $ 35,557 $ 36,778 $ 36,270 $ 37,478 $ 38,777 $ 35,960 Less: Restructuring costs ‐ ‐ ‐ ‐ 571 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Plus: FDIC Small Bank Assessment Credit ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 988 114 ‐ ‐ Plus: Capitalized compensation for PPP Loans ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,280 Core Noninterest Expense$ 32,029 $ 32,549 $ 32,695 $ 33,440 $ 34,555 $ 34,347 $ 34,370 $ 33,397 $ 35,557 $ 36,778 $ 37,258 $ 37,592 $ 38,777 $ 37,240 Less: Bank Capital Stock Tax Expense 934 911 902 897 984 991 991 891 986 958 975 975 1,073 1,097 Core Noninterest Expense, excluding PA shares tax$ 31,096 $ 31,638 $ 31,793 $ 32,542 $ 33,570 $ 33,356 $ 33,379 $ 32,506 $ 34,571 $ 35,820 $ 36,283 $ 36,617 $ 37,704 $ 36,143 7. Core Tax Equivalent Revenue Total Revenue $ 49,253 $ 51,309 $ 50,996 $ 50,857 $ 52,854 $ 54,304 $ 55,284 $ 55,793 $ 57,820 $ 58,991 $ 59,244 $ 58,599 $ 60,851 $ 61,518 Plus: Tax Equivalent Adjustment 1,052 1,276 1,031 1,071 847 989 887 768 905 851 838 846 848 836 Tax Equivalent Revenue*$ 50,305 $ 52,585 $ 52,027 $ 51,928 $ 53,701 $ 55,293 $ 56,170 $ 56,561 $ 58,726 $ 59,842 $ 60,082 $ 59,445 $ 61,699 $ 62,354 Less: BOLI Death Benefits (Tax Equivalent) ‐ 1,125 ‐ ‐ ‐ 565 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less: PPP Net Interest Income ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,012 Core Tax Equivalent Revenue $ 50,305 $ 51,460 $ 52,027 $ 51,928 $ 53,701 $ 54,729 $ 56,170 $ 56,561 $ 58,726 $ 59,842 $ 60,082 $ 59,445 $ 61,699 $ 60,342 8. Pre‐Tax Pre‐Provision Income Pre‐Tax Income $14,778 $15,995 $15,612 $15,426 $15,676 $4,548 $18,168 $22,294 $19,578 $20,137 $21,444 $18,894 $232 $1,821 Provision for Credit Losses 2,445 2,766 2,689 1,992 2,053 15,409 2,745 103 2,685 2,076 1,530 2,227 21,843 23,737 Pre‐Tax Pre‐Provision Income $17,223 $18,761 $18,301 $17,418 $17,729 $19,957 $20,913 $22,397 $22,263 $22,213 $22,974 $21,121 $22,075 $25,558 9. Average Interest Earning Assets excluding Excess Liquidity and PPP Loans Average Interest Earning Assets$ 3,811,678 $ 3,917,737 $ 3,999,101 $ 4,022,581 $ 4,140,677 $ 4,263,612 $ 4,397,502 $ 4,478,941 $ 4,562,484 $ 4,729,052 $ 4,875,064 $ 4,962,660 $ 4,980,042 $ 5,591,460 Less: PPP Loans ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 370,669 Less: Excess Liquidity ‐ ‐ ‐ ‐ ‐ ‐ 40,678 49,784 ‐ 62,623 173,623 165,645 78,108 273,690 Average Interest Earning Assets excluding Excess Liquidity and PPP Loans$ 3,811,678 $ 3,917,737 $ 3,999,101 $ 4,022,581 $ 4,140,677 $ 4,263,612 $ 4,356,824 $ 4,429,157 $ 4,562,484 $ 4,666,429 $ 4,701,441 $ 4,797,015 $ 4,901,934 $ 4,947,101 *Based upon a proforma 21% tax rate for all periods presented. 49
