Overview

• US regional bank's Q2 net income and EPS rose yr/yr

• Net interest income and margin increased, driven by higher loan balances and lower funding costs

• Noninterest income declined due to a loss on sale and write-down of real estate owned

Outlook

• Company did not provide specific guidance or outlook for future quarters or full yr

Result Drivers

• NET INTEREST INCOME - Higher average loan balances and lower funding costs drove net interest income growth

• LOAN MIX SHIFT - Growth in commercial, construction and commercial real estate loans offset by decline in residential mortgages, reflecting focus on full-relationship customers

• NONINTEREST INCOME IMPACT - $5.2 mln loss on other real estate owned weighed on noninterest income

Company press release: ID:nGNX4Z9N4q

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$0.82
Q2 Net Interest Income		$66.20 mln
Q2 Net Interest Margin		3.49%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Univest Financial Corp is $43.00, about 3.2% below its July 21 closing price of $44.42

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 22 - Juniata Valley Q2 profit rises 32% on loan growth, higher interest income

• July 22 - Parke Bancorp Q2 net interest income rises on higher loan yields

• July 21 - Capital One second-quarter profit rises on higher interest income

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