Univest Corporation of Pennsylvania (NASDAQ:UVSP) Q1 2019 Earnings Conference Call Transcript
Apr 25, 2019 • 09:00 am ET
Good morning and welcome to the Univest Financial Corporation First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Jeffrey Schweitzer, President and CEO of Univest Financial Corporation. Please go ahead.
Jeffrey M. Schweitzer
Thank you, Brandon, and good morning and thank you to all of our listeners for joining us. Joining me on the call this morning is Mike Keim, President of Univest Bank and Trust; Roger Deacon, our Chief Financial Officer and Brian Richardson, Executive Vice President and Director of Finance.
Before we begin, we 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 can be found on our website at univest.net under the Investor Relations tab.
We reported net income of $16.1 million during the first quarter or $0.55 per share, which is a 19.6% increase over the first quarter of 2018 when you exclude restructuring cost recorded in the first quarter of 2018. We are pleased with our results for the quarter as loans grew $61.3 million or 6.1% annualized and deposits grew $117.2 million or 12.1% annualized. The first quarter is historically a slower quarter for us. So we were pleased with the growth we experienced and have strong pipelines as we head into the second quarter.
We continue to see solid loan demand due to market disruption and the strength of our local economy. In our non-banking lines of business, wealth management revenues which includes our trust business was essentially flat with the prior year as assets under management were impacted by the market downturn in the fourth quarter. We expect this line of business to rebound in the second quarter as the markets recovered during the first quarter.
Insurance revenues increased 5.2% year-over-year due to strong contingent commission income and growth in commercial lines and group health and and life premiums. Another exciting development during the first quarter was our lift out of a commercial banking team of eight individuals including five relationship managers and business developers in the Western Lancaster County market into York County. This complements our existing Lancaster team and we are excited about the continued growth opportunities the new team brings to us and the expanded market. Additionally, we hired a three-person team in the South Jersey, Philadelphia market in April, as we continue to expand our presence in the growing Greater Philadelphia marketplace.
I will now throw it over to Roger for some additional discussion on our results.
Roger S. Deacon
Thank you, Jeff. And I would also