EX-99.1 2 exhibit991earningsrelease0.htm EX-99.1 Document

Exhibit 99.1
NEWS
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CONTACT:     Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net                     

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION REPORTS FIRST QUARTER RESULTS

SOUDERTON, Pa., April 24, 2024 - 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 March 31, 2024 was $20.3 million, or $0.69 diluted earnings per share, compared to net income of $21.0 million, or $0.71 diluted earnings per share, for the quarter ended March 31, 2023.

One-Time Items
The financial results for the quarter included a $3.4 million net gain ($2.7 million after-tax), or $0.09 diluted earnings per share, generated from the sale of mortgage servicing rights associated with $591.1 million of serviced loans.

Loans
Gross loans and leases increased $11.9 million, or 0.2% (0.8% annualized), from December 31, 2023, primarily due to increases in commercial loans and residential mortgage loans, partially offset by decreases in construction and commercial real estate loans. Gross loans and leases increased $339.3 million, or 5.4%, from March 31, 2023, primarily due to increases in commercial real estate, residential mortgage loans and lease financings, partially offset by a decrease in commercial loans.

Deposits, Borrowings and Liquidity
Total deposits increased $29.6 million, or 0.5% (2.0% annualized), from December 31, 2023, primarily due to increases in consumer and brokered deposits, partially offset by decreases in commercial and seasonal public funds deposits. Total deposits increased $570.7 million, or 9.8%, from March 31, 2023, primarily due to increases in consumer, public funds and brokered deposits, partially offset by a decrease in commercial deposits. Noninterest-bearing deposits represented 21.9% of total deposits at March 31,


2024, down from 23.0% at December 31, 2023. At March 31, 2024, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 22.3% of total deposits, down from 23.3% at December 31, 2023.

Total borrowings decreased $61.4 million, or 13.2% (52.8% annualized), from December 31, 2023, primarily due to pay-downs of long-term FHLB advances of $60.0 million. These borrowings were replaced with $110.2 million of lower cost brokered deposits during the quarter.

As of March 31, 2024, the Corporation had cash and cash equivalents totaling $201.6 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.4 billion at March 31, 2024, of which $2.1 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $334.0 million at March 31, 2024. 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 $51.5 million for the first quarter of 2024 decreased $7.9 million, or 13.2%, from the first quarter of 2023 and $1.3 million, or 2.5%, from the fourth quarter of 2023. The decrease in net interest income for the first quarter of 2024 compared to the first quarter of 2023 was due to an increase in the cost of funds and the average balance of interest-bearing liabilities, partially offset by an increase in asset yields and the average balance of interest-earning assets. The decrease in net interest income for the first quarter of 2024 compared to the fourth quarter of 2023 was due to a decrease in the average balance of interest-earning assets, including excess liquidity, and an increase in the cost of funds, partially offset by an increase in asset yields and a decrease in the average balance of interest-bearing liabilities.

Net interest margin, on a tax-equivalent basis, was 2.88% for the first quarter of 2024, compared to 2.84% for the fourth quarter of 2023 and 3.58% for the first quarter of 2023. Excess liquidity reduced net interest margin by approximately three basis points for the quarter ended March 31, 2024 compared to approximately ten basis points for the quarter ended December 31, 2023. Excess liquidity had no impact on net interest margin for the quarter ended March 31, 2023.

Noninterest Income
Noninterest income for the quarter ended March 31, 2024 was $25.6 million, an increase of $5.9 million, or 30.1%, from the comparable period in the prior year.

Other service fee income increased $3.3 million, or 108.6%, for the quarter ended March 31, 2024,


primarily due to the net gain on the sale of mortgage servicing rights as previously mentioned.

Insurance commission and fee income increased $714 thousand, or 11.0%, for the quarter ended March 31, 2024, primarily due to increases in premiums for group life and health and commercial lines and an increase in contingent commission income of $484 thousand, which were $2.3 million and $1.8 million for the quarters ended March 31, 2024 and 2023, respectively. Contingent income is largely recognized in the first quarter of the year.

Investment advisory commission and fee income increased $442 thousand, or 9.3%, for the quarter ended March 31, 2024, primarily due to new customer relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance. Service charges on deposit accounts increased $324 thousand, or 20.9%, for the quarter ended March 31, 2024, primarily due to increased treasury management income. Net gain on mortgage banking activities increased $314 thousand, or 50.2%, for the quarter ended March 31, 2024, primarily due to increased salable volume.

Other income increased $554 thousand, or 117.6%, for the quarter ended March 31, 2024 compared to the three months ended March 31, 2023. Gains on the sale of Small Business Administration loans increased $239 thousand due to increased sale volume. Fees on risk participation agreements for interest rate swaps increased $141 thousand.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2024 was $50.1 million, an increase of $545 thousand, or 1.1%, from the comparable period in the prior year.

Data processing increased $466 thousand, or 11.6%, for the quarter ended March 31, 2024, primarily due to our investments in technology in recent years, including the launch of our online small business loan and deposit products, and general price increases incurred in the second half of 2023. Salaries, benefits and commissions increased $324 thousand, or 1.0%, for the quarter ended March 31, 2024, primarily driven by decreased capitalized compensation, resulting from lower loan production in the current period, and increased medical claims expense. These increases were partially offset by decreased salary expense primarily due to staff reductions over the last twelve months.

Other expense decreased $268 thousand, or 3.8%, for the quarter ended March 31, 2024, primarily due to decreases in retirement plan costs of $210 thousand. Professional fees decreased $253 thousand, or 13.0%, for the quarter ended March 31, 2024, primarily due to consultant fees incurred in the first quarter of 2023 related to our digital transformation initiative.


Tax Provision
The effective income tax rate was 20.5% for the quarter ended March 31, 2024, compared to an effective tax rate of 19.4% for the quarter ended March 31, 2023. The discrete tax effect of vested equity compensation awards unfavorably impacted the first quarter of 2024 by 74 basis points and favorably impacted the first quarter of 2023 by 76 basis points. Additionally, the effective tax rates for the three months ended March 31, 2024 and 2023 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 $40.0 million at March 31, 2024, compared to $40.1 million at December 31, 2023 and $32.4 million at March 31, 2023.

Net loan and lease charge-offs were $1.4 million for the three months ended March 31, 2024 compared to $1.1 million and $2.8 million for the three months ended December 31, 2023 and March 31, 2023, respectively.

The provision for credit losses was $1.4 million for the three months ended March 31, 2024 compared to $1.9 million and $3.4 million for the three months ended December 31, 2023 and March 31, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.30% at March 31, 2024 and December 31, 2023 and 1.28% March 31, 2023.

Dividend and Share Repurchases
On April 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on May 22, 2024 to shareholders of record as of May 8, 2024. During the quarter ended March 31, 2024, the Corporation repurchased 315,507 shares of common stock at an average price of $20.25 per share. Including brokerage fees and excise tax, the average price per share was $20.48. As of March 31, 2024, 887,182 shares are available for repurchase under the Share Repurchase Plan.

Conference Call
Univest will host a conference call to discuss first quarter 2024 results on Thursday, April 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=1f74990c&confId=63330. The general public can access the call by dialing 1-833-470-1428; using Access Code 468018. A replay of the conference call will be available through May 25, 2024 by dialing 1-866-813-9403; using Access Code 450536.



About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.7 billion in assets and $5.0 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  
# # #
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market; (7) economic assumptions that may impact our allowance for credit losses calculation; (8) legislative, regulatory, accounting or tax changes; (9) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (10) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP - ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2024
(Dollars in thousands)
Balance Sheet (Period End)3/31/202412/31/20239/30/20236/30/20233/31/2023
ASSETS
Cash and due from banks $49,318 $72,815 $68,900 $80,795 $71,215 
Interest-earning deposits with other banks 152,288 176,984 221,441 59,616 67,109 
Cash and cash equivalents201,606 249,799 290,341 140,411 138,324 
Investment securities held-to-maturity143,474 145,777 149,451 153,509 151,347 
Investment securities available for sale, net of allowance for credit losses350,819 351,553 334,538 356,164 367,656 
Investments in equity securities3,355 3,293 4,054 3,443 3,105 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost37,394 40,499 42,417 42,811 43,792 
Loans held for sale13,188 11,637 16,473 29,526 5,425 
Loans and leases held for investment6,579,086 6,567,214 6,574,958 6,462,238 6,239,804 
Less: Allowance for credit losses, loans and leases (85,632)(85,387)(83,837)(82,709)(80,034)
Net loans and leases held for investment6,493,454 6,481,827 6,491,121 6,379,529 6,159,770 
Premises and equipment, net 48,739 51,441 51,287 52,058 52,334 
Operating lease right-of-use assets30,702 31,795 31,053 30,237 31,663 
Goodwill175,510 175,510 175,510 175,510 175,510 
Other intangibles, net of accumulated amortization7,473 10,950 11,079 10,923 11,044 
Bank owned life insurance137,896 131,344 130,522 129,715 128,926 
Accrued interest and other assets 102,958 95,203 100,220 96,314 90,095 
Total assets $7,746,568 $7,780,628 $7,828,066 $7,600,150 $7,358,991 
LIABILITIES
Noninterest-bearing deposits$1,401,806 $1,468,320 $1,432,559 $1,582,767 $1,799,225 
Interest-bearing deposits:5,003,552 4,907,461 5,006,606 4,404,635 4,035,432 
Total deposits 6,405,358 6,375,781 6,439,165 5,987,402 5,834,657 
Short-term borrowings4,816 6,306 14,676 244,666 271,881 
Long-term debt 250,000 310,000 320,000 320,000 220,000 
Subordinated notes 148,886 148,761 148,636 148,510 148,385 
Operating lease liabilities33,744 34,851 34,017 33,428 34,846 
Accrued expenses and other liabilities 60,095 65,721 64,374 60,922 50,726 
Total liabilities 6,902,899 6,941,420 7,020,868 6,794,928 6,560,495 
SHAREHOLDERS' EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued157,784 157,784 157,784 157,784 157,784 
Additional paid-in capital298,914 301,066 300,171 299,212 298,167 
Retained earnings488,790 474,691 464,634 453,806 443,493 
Accumulated other comprehensive loss, net of tax benefit(54,740)(50,646)(71,586)(61,034)(55,550)
Treasury stock, at cost(47,079)(43,687)(43,805)(44,546)(45,398)
Total shareholders’ equity843,669 839,208 807,198 805,222 798,496 
Total liabilities and shareholders’ equity$7,746,568 $7,780,628 $7,828,066 $7,600,150 $7,358,991 
For the three months ended,
Balance Sheet (Average)3/31/202412/31/20239/30/20236/30/20233/31/2023
Assets$7,696,575 $7,865,634 $7,693,983 $7,440,798 $7,219,211 
Investment securities, net of allowance for credit losses500,983 489,587 506,341 518,995 515,880 
Loans and leases, gross6,577,365 6,594,233 6,537,169 6,372,342 6,164,890 
Deposits6,303,854 6,470,141 6,222,710 5,844,582 5,834,415 
Shareholders' equity842,546 814,941 811,515 806,709 789,153 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
March 31, 2024
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)3/31/202412/31/20239/30/20236/30/20233/31/2023
Commercial, financial and agricultural$1,014,568 $989,723 $1,050,004 $1,039,265 $1,032,753 
Real estate-commercial3,283,729 3,302,798 3,275,140 3,221,993 3,128,210 
Real estate-construction379,995 394,462 427,561 413,404 376,569 
Real estate-residential secured for business purpose524,196 517,002 516,471 517,521 498,505 
Real estate-residential secured for personal purpose922,412 909,015 861,122 832,632 779,557 
Real estate-home equity secured for personal purpose177,446 179,282 176,855 175,090 172,073 
Loans to individuals27,200 27,749 27,331 25,544 28,656 
Lease financings249,540 247,183 240,474 236,789 223,481 
Total loans and leases held for investment, net of deferred income6,579,086 6,567,214 6,574,958 6,462,238 6,239,804 
Less: Allowance for credit losses, loans and leases(85,632)(85,387)(83,837)(82,709)(80,034)
Net loans and leases held for investment$6,493,454 $6,481,827 $6,491,121 $6,379,529 $6,159,770 
Asset Quality Data (Period End)3/31/202412/31/20239/30/20236/30/20233/31/2023
Nonaccrual loans and leases, including nonaccrual loans held for sale*$20,363 $20,527 $18,085 $15,087 $11,362 
Accruing loans and leases 90 days or more past due268 534 2,135 55 1,996 
Total nonperforming loans and leases20,631 21,061 20,220 15,142 13,358 
Other real estate owned19,220 19,032 19,916 19,345 19,000 
Repossessed assets167 — — — — 
Total nonperforming assets$40,018 $40,093 $40,136 $34,487 $32,358 
Nonaccrual loans and leases / Loans and leases held for investment0.31 %0.31 %0.28 %0.23 %0.18 %
Nonperforming loans and leases / Loans and leases held for investment0.31 %0.32 %0.31 %0.23 %0.21 %
Nonperforming assets / Total assets0.52 %0.52 %0.51 %0.45 %0.44 %
Allowance for credit losses, loans and leases$85,632 $85,387 $83,837 $82,709 $80,034 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.30 %1.30 %1.28 %1.28 %1.28 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases420.53 %415.97 %463.57 %548.21 %704.40 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases415.06 %405.43 %414.62 %546.22 %599.15 %
*Includes a $5.8 million loan held for sale at September 30, 2023.
For the three months ended,
3/31/202412/31/20239/30/20236/30/20233/31/2023
Net loan and lease charge-offs$1,406 $1,074 $969 $512 $2,842 
Net loan and lease charge-offs (annualized)/Average loans and leases0.09 %0.06 %0.06 %0.03 %0.19 %


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2024
(Dollars in thousands, except per share data)
For the three months ended,
For the period:3/31/202412/31/20239/30/20236/30/20233/31/2023
Interest income$98,609 $101,232 $97,106 $90,139 $83,253 
Interest expense47,142 48,472 43,516 35,809 23,936 
Net interest income51,467 52,760 53,590 54,330 59,317 
Provision for credit losses1,432 1,931 2,024 3,428 3,387 
Net interest income after provision for credit losses50,035 50,829 51,566 50,902 55,930 
Noninterest income:
Trust fee income2,108 1,943 1,910 1,924 1,955 
Service charges on deposit accounts1,871 1,960 1,816 1,725 1,547 
Investment advisory commission and fee income5,194 4,561 4,843 4,708 4,752 
Insurance commission and fee income7,201 4,596 4,852 5,108 6,487 
Other service fee income6,415 2,967 3,020 3,318 3,076 
Bank owned life insurance income842 823 806 789 767 
Net gain on mortgage banking activities939 809 1,216 1,039 625 
Other income1,025 961 228 1,222 471 
Total noninterest income25,595 18,620 18,691 19,833 19,680 
Noninterest expense:
Salaries, benefits and commissions31,338 29,321 29,978 29,875 31,014 
Net occupancy2,872 2,751 2,594 2,614 2,727 
Equipment1,111 1,066 1,087 986 993 
Data processing4,495 4,444 4,189 4,137 4,029 
Professional fees1,688 1,768 1,763 1,669 1,941 
Marketing and advertising416 632 555 622 371 
Deposit insurance premiums1,135 1,350 1,258 1,116 1,101 
Intangible expenses187 212 220 253 253 
Restructuring charges— 189 — 1,330 — 
Other expense6,832 7,313 7,344 7,197 7,100 
Total noninterest expense50,074 49,046 48,988 49,799 49,529 
Income before taxes25,556 20,403 21,269 20,936 26,081 
Income tax expense5,251 4,149 4,253 4,136 5,047 
Net income$20,305 $16,254 $17,016 $16,800 $21,034 
Net income per share:
Basic$0.69 $0.55 $0.58 $0.57 $0.72 
Diluted$0.69 $0.55 $0.58 $0.57 $0.71 
Dividends declared per share$0.21 $0.21 $0.21 $0.21 $0.21 
Weighted average shares outstanding29,413,999 29,500,147 29,479,066 29,439,392 29,312,265 
Period end shares outstanding29,337,919 29,511,721 29,508,128 29,471,124 29,427,696 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2024
For the three months ended,
Profitability Ratios (annualized)3/31/202412/31/20239/30/20236/30/20233/31/2023
Return on average assets1.06 %0.82 %0.88 %0.91 %1.18 %
Return on average assets, excluding restructuring charges (1)1.06 %0.83 %0.88 %0.96 %1.18 %
Return on average shareholders' equity9.69 %7.91 %8.32 %8.35 %10.81 %
Return on average shareholders' equity, excluding restructuring charges (1)9.69 %7.99 %8.32 %8.88 %10.81 %
Return on average tangible common equity (1)(3)12.38 %10.23 %10.77 %10.85 %14.11 %
Return on average tangible common equity, excluding restructuring charges (1)(3)12.38 %10.32 %10.77 %11.52 %14.11 %
Net interest margin (FTE)2.88 %2.84 %2.96 %3.14 %3.58 %
Efficiency ratio (2)64.6 %68.3 %67.3 %66.7 %62.2 %
Efficiency ratio, excluding restructuring charges (1)(2)64.6 %68.0 %67.3 %64.9 %62.2 %
Capitalization Ratios
Dividends declared to net income30.5 %38.1 %36.4 %36.8 %29.2 %
Shareholders' equity to assets (Period End)10.89 %10.79 %10.31 %10.59 %10.85 %
Tangible common equity to tangible assets (1)8.80 %8.70 %8.22 %8.45 %8.63 %
Common equity book value per share$28.76 $28.44 $27.36 $27.32 $27.13 
Tangible common equity book value per share (1)$22.70 $22.41 $21.32 $21.27 $21.07 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.65 %9.36 %9.43 %9.59 %9.71 %
Common equity tier 1 risk-based capital ratio10.71 %10.58 %10.32 %10.26 %10.43 %
Tier 1 risk-based capital ratio10.71 %10.58 %10.32 %10.26 %10.43 %
Total risk-based capital ratio14.11 %13.90 %13.58 %13.54 %13.78 %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended,
Tax Equivalent BasisMarch 31, 2024December 31, 2023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$120,845 $1,609 5.36 %$280,693 $3,804 5.38 %
Obligations of state and political subdivisions*1,951 12 2.47 2,277 14 2.44 
Other debt and equity securities499,032 3,647 2.94 487,310 3,678 2.99 
Federal Home Loan Bank, Federal Reserve Bank and other stock39,115 724 7.44 41,361 767 7.36 
Total interest-earning deposits, investments and other interest-earning assets660,943 5,992 3.65 811,641 8,263 4.04 
Commercial, financial, and agricultural loans934,649 16,523 7.11 973,450 17,485 7.13 
Real estate—commercial and construction loans3,575,142 50,641 5.70 3,590,477 50,715 5.60 
Real estate—residential loans1,618,188 19,555 4.86 1,585,705 19,133 4.79 
Loans to individuals27,315 548 8.07 27,667 558 8.00 
Municipal loans and leases*232,380 2,464 4.26 230,394 2,438 4.20 
Lease financings189,691 3,169 6.72 186,540 2,897 6.16 
     Gross loans and leases6,577,365 92,900 5.68 6,594,233 93,226 5.61 
          Total interest-earning assets7,238,308 98,892 5.49 7,405,874 101,489 5.44 
Cash and due from banks54,870 54,981 
Allowance for credit losses, loans and leases(86,495)(84,386)
Premises and equipment, net50,592 51,489 
Operating lease right-of-use assets31,121 31,251 
Other assets408,179 406,425 
      Total assets$7,696,575 $7,865,634 
Liabilities:
Interest-bearing checking deposits$1,180,696 $8,218 2.80 %$1,193,386 $8,409 2.80 %
Money market savings1,705,291 19,220 4.53 1,845,153 21,133 4.54 
Regular savings769,926 905 0.47 784,937 874 0.44 
Time deposits1,238,878 13,630 4.42 1,188,054 12,748 4.26 
Total time and interest-bearing deposits4,894,791 41,973 3.45 5,011,530 43,164 3.42 
Short-term borrowings10,127 5 0.20 9,814 1 0.04 
Long-term debt292,486 2,883 3.96 318,805 3,026 3.77 
Subordinated notes148,818 2,281 6.16 148,693 2,281 6.09 
     Total borrowings451,431 5,169 4.61 477,312 5,308 4.41 
     Total interest-bearing liabilities5,346,222 47,142 3.55 5,488,842 48,472 3.50 
Noninterest-bearing deposits1,409,063 1,458,610 
Operating lease liabilities34,166 34,255 
Accrued expenses and other liabilities64,578 68,986 
     Total liabilities6,854,029 7,050,693 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,755,285 2.81 6,947,452 2.77 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,679 300,558 
Retained earnings and other equity384,083 356,599 
     Total shareholders' equity842,546 814,941 
     Total liabilities and shareholders' equity$7,696,575 $7,865,634 
Net interest income$51,750 $53,017 
Net interest spread1.94 1.94 
Effect of net interest-free funding sources0.94 0.90 
Net interest margin2.88 %2.84 %
Ratio of average interest-earning assets to average interest-bearing liabilities135.39 %134.93 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $453 thousand and $428 thousand for the three months ended March 31, 2024 and December 31, 2023.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended March 31, 2024 and December 31, 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended March 31,
Tax Equivalent Basis20242023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$120,845 $1,609 5.36 %$47,835 $479 4.06 %
Obligations of state and political subdivisions*1,951 12 2.47 2,286 17 3.02 
Other debt and equity securities499,032 3,647 2.94 513,594 3,495 2.76 
Federal Home Loan Bank, Federal Reserve Bank and other stock39,115 724 7.44 34,742 609 7.11 
Total interest-earning deposits, investments and other interest-earning assets660,943 5,992 3.65 598,457 4,600 3.12 
Commercial, financial, and agricultural loans934,649 16,523 7.11 991,876 15,538 6.35 
Real estate—commercial and construction loans3,575,142 50,641 5.70 3,342,199 42,421 5.15 
Real estate—residential loans1,618,188 19,555 4.86 1,408,292 15,730 4.53 
Loans to individuals27,315 548 8.07 27,254 449 6.68 
Municipal loans and leases*232,380 2,464 4.26 229,955 2,341 4.13 
Lease financings189,691 3,169 6.72 165,314 2,541 6.23 
     Gross loans and leases6,577,365 92,900 5.68 6,164,890 79,020 5.20 
          Total interest-earning assets7,238,308 98,892 5.49 6,763,347 83,620 5.01 
Cash and due from banks54,870 58,035 
Allowance for credit losses, loans and leases(86,495)(79,977)
Premises and equipment, net50,592 51,583 
Operating lease right-of-use assets31,121 31,303 
Other assets408,179 394,920 
      Total assets$7,696,575 $7,219,211 
Liabilities:
Interest-bearing checking deposits$1,180,696 $8,218 2.80 %$857,891 $3,164 1.50 %
Money market savings1,705,291 19,220 4.53 1,489,129 11,081 3.02 
Regular savings769,926 905 0.47 985,716 669 0.28 
Time deposits1,238,878 13,630 4.42 566,308 3,422 2.45 
Total time and interest-bearing deposits4,894,791 41,973 3.45 3,899,044 18,336 1.91 
Short-term borrowings10,127 5 0.20 240,318 2,728 4.60 
Long-term debt292,486 2,883 3.96 112,222 591 2.14 
Subordinated notes148,818 2,281 6.16 148,319 2,281 6.24 
     Total borrowings451,431 5,169 4.61 500,859 5,600 4.53 
     Total interest-bearing liabilities5,346,222 47,142 3.55 4,399,903 23,936 2.21 
Noninterest-bearing deposits1,409,063 1,935,371 
Operating lease liabilities34,166 34,438 
Accrued expenses and other liabilities64,578 60,346 
     Total liabilities6,854,029 6,430,058 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,755,285 2.81 6,335,274 1.53 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,679 300,293 
Retained earnings and other equity384,083 331,076 
     Total shareholders' equity842,546 789,153 
     Total liabilities and shareholders' equity$7,696,575 $7,219,211 
Net interest income$51,750 $59,684 
Net interest spread1.94 2.80 
Effect of net interest-free funding sources0.94 0.78 
Net interest margin2.88 %3.58 %
Ratio of average interest-earning assets to average interest-bearing liabilities135.39 %153.72 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $453 thousand and $465 thousand for the three months ended March 31, 2024 and 2023, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended March 31, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
March 31, 2024
(Dollars in thousands)
Industry DescriptionTotal Outstanding Balance % of Commercial Loan Portfolio
CRE - Retail$465,915 9.0 %
Animal Production361,143 6.9 
CRE - Multi-family318,337 6.1 
CRE - Office298,301 5.7 
CRE - 1-4 Family Residential Investment289,167 5.6 
CRE - Industrial / Warehouse248,041 4.8 
Hotels & Motels (Accommodation)193,058 3.7 
Specialty Trade Contractors161,917 3.1 
Education153,971 3.0 
Homebuilding (tract developers, remodelers)152,798 2.9 
Nursing and Residential Care Facilities132,809 2.6 
Motor Vehicle and Parts Dealers132,677 2.6 
Merchant Wholesalers, Durable Goods122,481 2.4 
CRE - Mixed-Use - Residential116,749 2.2 
Crop Production104,137 2.0 
Repair and Maintenance103,139 2.0 
Wood Product Manufacturing90,017 1.7 
Real Estate Lenders, Secondary Market Financing86,382 1.7 
Rental and Leasing Services76,500 1.5 
Fabricated Metal Product Manufacturing75,371 1.4 
CRE - Mixed-Use - Commercial72,763 1.4 
Religious Organizations, Advocacy Groups71,715 1.4 
Personal and Laundry Services71,534 1.4 
Administrative and Support Services70,224 1.3 
Amusement, Gambling, and Recreation Industries68,644 1.3 
Merchant Wholesalers, Nondurable Goods67,775 1.3 
Food Services and Drinking Places66,625 1.3 
Private Equity & Special Purpose Entities (except 52592)66,517 1.3 
Miniwarehouse / Self-Storage61,996 1.2 
Food Manufacturing60,794 1.2 
Truck Transportation53,952 1.0 
Industries with >$50 million in outstandings$4,415,449 84.9 %
Industries with <$50 million in outstandings $787,039 15.1 %
Total Commercial Loans$5,202,488 100.0 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$922,412 
Real Estate-Home Equity Secured for Personal Purpose177,446 
Loans to Individuals27,200 
Lease Financings249,540 
Total Consumer Loans and Lease Financings$1,376,598 
Total$6,579,086 


Univest Financial Corporation
Non-GAAP Reconciliation
March 31, 2024
Management uses 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 the table below for additional information on non-GAAP measures used throughout this earnings release.
As of or for the three months ended,
(Dollars in thousands)3/31/202412/31/20239/30/20236/30/20233/31/2023
Restructuring charges (a)$— $189 $— $1,330 $— 
Tax effect of restructuring charges— (40)— (279)— 
Restructuring charges, net of tax$— $149 $— $1,051 $— 
Net income$20,305 $16,254 $17,016 $16,800 $21,034 
Amortization of intangibles, net of tax148 167 174 200 200 
Net income before amortization of intangibles$20,453 $16,421 $17,190 $17,000 $21,234 
Shareholders' equity$843,669 $839,208 $807,198 $805,222 $798,496 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,273)(2,405)(2,558)(2,767)(3,054)
Tangible common equity$665,886 $661,293 $629,130 $626,945 $619,932 
Total assets$7,746,568 $7,780,628 $7,828,066 $7,600,150 $7,358,991 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,273)(2,405)(2,558)(2,767)(3,054)
Tangible assets$7,568,785 $7,602,713 $7,649,998 $7,421,873 $7,180,427 
Average shareholders' equity$842,546 $814,941 $811,515 $806,709 $789,153 
Average goodwill(175,510)(175,510)(175,510)(175,510)(175,510)
Average other intangibles (b)(2,318)(2,477)(2,680)(2,924)(3,137)
Average tangible common equity$664,718 $636,954 $633,325 $628,275 $610,506 
(a) Associated with financial service center optimization and headcount rationalization expense management strategies
(b) Amount does not include mortgage servicing rights