• Univest Financial Corporation Reports Third Quarter Results

    Source: Nasdaq GlobeNewswire / 23 Oct 2024 15:15:01   America/Chicago

    SOUDERTON, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) -- 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 September 30, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

    Loans
    Gross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

    Deposits and Liquidity
    Total deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.

    As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 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 $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

    Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

    Noninterest Income
    Noninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

    Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

    Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

    Noninterest Expense
    Noninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

    Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

    Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

    Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

    Tax Provision
    The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.

    Asset Quality and Provision for Credit Losses
    Nonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

    Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

    The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2024, June 30, 2024 and September 30, 2023.

    Dividend and Share Repurchases
    On October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

    Conference Call
    Univest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

    About Univest Financial Corporation
    Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 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 and demand for financial services in our market area; (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 and higher costs we pay to retain and attract deposits; (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, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which 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)
    September 30, 2024
    (Dollars in thousands)              
                   
    Balance Sheet (Period End) 09/30/24 06/30/24 03/31/24 12/31/23 09/30/23    
    ASSETS              
    Cash and due from banks $78,346  $66,808  $49,318  $72,815  $68,900     
    Interest-earning deposits with other banks  426,354   124,103   152,288   176,984   221,441     
    Cash and cash equivalents  504,700   190,911   201,606   249,799   290,341     
    Investment securities held-to-maturity  137,681   140,112   143,474   145,777   149,451     
    Investment securities available for sale, net of allowance for credit losses  354,100   342,776   350,819   351,553   334,538     
    Investments in equity securities  2,406   2,995   3,355   3,293   4,054     
    Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost  40,235   37,438   37,394   40,499   42,417     
    Loans held for sale  17,131   28,176   13,188   11,637   16,473     
    Loans and leases held for investment  6,730,734   6,684,837   6,579,086   6,567,214   6,574,958     
    Less: Allowance for credit losses, loans and leases  (86,041)  (85,745)  (85,632)  (85,387)  (83,837)    
    Net loans and leases held for investment  6,644,693   6,599,092   6,493,454   6,481,827   6,491,121     
    Premises and equipment, net  47,411   48,174   48,739   51,441   51,287     
    Operating lease right-of-use assets  29,260   29,985   30,702   31,795   31,053     
    Goodwill  175,510   175,510   175,510   175,510   175,510     
    Other intangibles, net of accumulated amortization  7,158   7,701   7,473   10,950   11,079     
    Bank owned life insurance  138,744   137,823   137,896   131,344   130,522     
    Accrued interest and other assets  106,708   114,753   102,958   95,203   100,220     
    Total assets $8,205,737  $7,855,446  $7,746,568  $7,780,628  $7,828,066     
                   
    LIABILITIES              
    Noninterest-bearing deposits $1,323,953  $1,397,308  $1,401,806  $1,468,320  $1,432,559     
    Interest-bearing deposits:  5,530,195   5,098,014   5,003,552   4,907,461   5,006,606     
    Total deposits  6,854,148   6,495,322   6,405,358   6,375,781   6,439,165     
    Short-term borrowings  8,256   11,781   4,816   6,306   14,676     
    Long-term debt  225,000   250,000   250,000   310,000   320,000     
    Subordinated notes  149,136   149,011   148,886   148,761   148,636     
    Operating lease liabilities  32,246   33,015   33,744   34,851   34,017     
    Accrued expenses and other liabilities  59,880   62,180   60,095   65,721   64,374     
    Total liabilities  7,328,666   7,001,309   6,902,899   6,941,420   7,020,868     
                   
    SHAREHOLDERS' EQUITY              
    Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued  157,784   157,784   157,784   157,784   157,784     
    Additional paid-in capital  301,262   300,166   298,914   301,066   300,171     
    Retained earnings  512,938   500,482   488,790   474,691   464,634     
    Accumulated other comprehensive loss, net of tax benefit  (41,623)  (54,124)  (54,740)  (50,646)  (71,586)    
    Treasury stock, at cost  (53,290)  (50,171)  (47,079)  (43,687)  (43,805)    
    Total shareholders’ equity  877,071   854,137   843,669   839,208   807,198     
    Total liabilities and shareholders’ equity $8,205,737  $7,855,446  $7,746,568  $7,780,628  $7,828,066     
                   
                   
      For the three months ended, For the nine months ended,
    Balance Sheet (Average) 09/30/24 06/30/24 03/31/24 12/31/23 09/30/23 09/30/24 09/30/23
    Assets $8,005,265  $7,721,540  $7,696,575  $7,865,634  $7,693,983  $7,808,514 $7,453,070
    Investment securities, net of allowance for credit losses  493,334   493,140   500,983   489,587   506,341   495,810  513,704
    Loans and leases, gross  6,730,791   6,640,536   6,577,365   6,594,233   6,537,169   6,649,860  6,359,498
    Deposits  6,641,324   6,353,752   6,303,854   6,470,141   6,222,710   6,433,737  5,968,659
    Shareholders' equity  864,406   844,572   842,546   814,941   811,515   850,559  802,541
                               



    Univest Financial Corporation
    Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
    September 30, 2024
    (Dollars in thousands)              
                   
    Summary of Major Loan and Lease Categories (Period End) 09/30/24 06/30/24 03/31/24 12/31/23 09/30/23    
    Commercial, financial and agricultural $1,044,043  $1,055,332  $1,014,568  $989,723  $1,050,004     
    Real estate-commercial  3,442,083   3,373,889   3,283,729   3,302,798   3,275,140     
    Real estate-construction  285,616   313,229   379,995   394,462   427,561     
    Real estate-residential secured for business purpose  530,674   532,628   524,196   517,002   516,471     
    Real estate-residential secured for personal purpose  969,562   952,665   922,412   909,015   861,122     
    Real estate-home equity secured for personal purpose  182,901   179,150   177,446   179,282   176,855     
    Loans to individuals  26,794   26,430   27,200   27,749   27,331     
    Lease financings  249,061   251,514   249,540   247,183   240,474     
    Total loans and leases held for investment, net of deferred income  6,730,734   6,684,837   6,579,086   6,567,214   6,574,958     
    Less: Allowance for credit losses, loans and leases  (86,041)  (85,745)  (85,632)  (85,387)  (83,837)    
    Net loans and leases held for investment $6,644,693  $6,599,092  $6,493,454  $6,481,827  $6,491,121     
                   
                   
    Asset Quality Data (Period End)  09/30/24 06/30/24 03/31/24 12/31/23 09/30/23    
    Nonaccrual loans and leases, including nonaccrual loans held for sale* $15,319  $16,200  $20,363  $20,527  $18,085     
    Accruing loans and leases 90 days or more past due  310   205   268   534   2,135     
    Total nonperforming loans and leases  15,629   16,405   20,631   21,061   20,220     
    Other real estate owned  20,915   20,007   19,220   19,032   19,916     
    Repossessed assets  79   149   167   -   -     
    Total nonperforming assets $36,623  $36,561  $40,018  $40,093  $40,136     
    Nonaccrual loans and leases / Loans and leases held for investment  0.23%  0.24%  0.31%  0.31%  0.28%    
    Nonperforming loans and leases / Loans and leases held for investment  0.23%  0.25%  0.31%  0.32%  0.31%    
    Nonperforming assets / Total assets  0.45%  0.47%  0.52%  0.52%  0.51%    
                   
    Allowance for credit losses, loans and leases $86,041  $85,745  $85,632  $85,387  $83,837     
    Allowance for credit losses, loans and leases / Loans and leases held for investment  1.28%  1.28%  1.30%  1.30%  1.28%    
    Allowance for credit losses, loans and leases / Nonaccrual loans and leases  561.66%  529.29%  420.53%  415.97%  463.57%    
    Allowance for credit losses, loans and leases / Nonperforming loans and leases  550.52%  522.68%  415.06%  405.43%  414.62%    
    *Includes a $5.8 million loan held for sale at September 30, 2023.              
                   
      For the three months ended, For the nine months ended,
      09/30/24 06/30/24 03/31/24 12/31/23 09/30/23 09/30/24 09/30/23
    Net loan and lease charge-offs $820  $809  $1,406  $1,074  $969  $3,035  $4,323 
    Net loan and lease charge-offs (annualized)/Average loans and leases  0.05%  0.05%  0.09%  0.06%  0.06%  0.06%  0.09%
                   



    Univest Financial Corporation 
    Consolidated Selected Financial Data (Unaudited) 
    September 30, 2024 
    (Dollars in thousands, except per share data)               
      For the three months ended, For the nine months ended, 
    For the period: 09/30/24 06/30/24 03/31/24 12/31/23 09/30/23 09/30/24 09/30/23 
    Interest income $106,438 $99,832 $98,609 $101,232 $97,106 $304,879 $270,498 
    Interest expense  53,234  48,805  47,142  48,472  43,516  149,181  103,261 
         Net interest income  53,204  51,027  51,467  52,760  53,590  155,698  167,237 
    Provision for credit losses  1,414  707  1,432  1,931  2,024  3,553  8,839 
    Net interest income after provision for credit losses  51,790  50,320  50,035  50,829  51,566  152,145  158,398 
    Noninterest income:               
         Trust fee income  2,110  2,008  2,108  1,943  1,910  6,226  5,789 
         Service charges on deposit accounts  2,037  1,982  1,871  1,960  1,816  5,890  5,088 
         Investment advisory commission and fee income  5,319  5,238  5,194  4,561  4,843  15,751  14,303 
         Insurance commission and fee income  5,238  5,167  7,201  4,596  4,852  17,606  16,447 
         Other service fee income  1,815  3,044  6,415  2,967  3,020  11,274  9,414 
         Bank owned life insurance income  921  1,086  842  823  806  2,849  2,362 
         Net gain on sales of investment securities  18  -  -  -  -  18  - 
         Net gain on mortgage banking activities  1,296  1,710  939  809  1,216  3,945  2,880 
         Other income  1,396  745  1,025  961  228  3,166  1,921 
    Total noninterest income  20,150  20,980  25,595  18,620  18,691  66,725  58,204 
    Noninterest expense:               
    Salaries, benefits and commissions  30,702  30,187  31,338  29,321  29,978  92,227  90,867 
    Net occupancy  2,723  2,679  2,872  2,751  2,594  8,274  7,935 
    Equipment  1,107  1,088  1,111  1,066  1,087  3,306  3,066 
    Data processing  4,154  4,161  4,495  4,444  4,189  12,810  12,355 
    Professional fees  1,579  1,466  1,688  1,768  1,763  4,733  5,373 
    Marketing and advertising  490  715  416  632  555  1,621  1,548 
    Deposit insurance premiums  1,097  1,098  1,135  1,350  1,258  3,330  3,475 
    Intangible expenses  164  188  187  212  220  539  726 
    Restructuring charges  -  -  -  189  -  -  1,330 
    Other expense  6,536  7,126  6,832  7,313  7,344  20,494  21,641 
    Total noninterest expense  48,552  48,708  50,074  49,046  48,988  147,334  148,316 
    Income before taxes  23,388  22,592  25,556  20,403  21,269  71,536  68,286 
    Income tax expense  4,810  4,485  5,251  4,149  4,253  14,546  13,436 
    Net income $18,578 $18,107 $20,305 $16,254 $17,016 $56,990 $54,850 
    Net income per share:               
         Basic $0.64 $0.62 $0.69 $0.55 $0.58 $1.95 $1.86 
         Diluted $0.63 $0.62 $0.69 $0.55 $0.58 $1.94 $1.86 
    Dividends declared per share $0.21 $0.21 $0.21 $0.21 $0.21 $0.63 $0.63 
    Weighted average shares outstanding  29,132,948  29,246,977  29,413,999  29,500,147  29,479,066  29,264,161  29,410,852 
    Period end shares outstanding  29,081,108  29,190,640  29,337,919  29,511,721  29,508,128  29,081,108  29,508,128 
                    


    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    September 30, 2024
                  
     For the three months ended, For the nine months ended,
    Profitability Ratios (annualized)09/30/24 06/30/24 03/31/24 12/31/23 09/30/23 09/30/24 09/30/23
                  
    Return on average assets 0.92%  0.94%  1.06%  0.82%  0.88%  0.97%  0.98%
    Return on average assets, excluding restructuring 0.92%  0.94%  1.06%  0.83%  0.88%  0.97%  1.00%
    charges (1)             
    Return on average shareholders' equity 8.55%  8.62%  9.69%  7.91%  8.32%  8.95%  9.14%
    Return on average shareholders' equity, excluding 8.55%  8.62%  9.69%  7.99%  8.32%  8.95%  9.31%
    restructuring charges (1)             
    Return on average tangible common equity (1)(3) 10.84%  11.01%  12.38%  10.23%  10.77%  11.40%  11.87%
    Return on average tangible common equity, excluding 10.84%  11.01%  12.38%  10.32%  10.77%  11.40%  12.10%
    restructuring charges (1)(3)             
    Net interest margin (FTE) 2.82%  2.84%  2.88%  2.84%  2.96%  2.85%  3.22%
    Efficiency ratio (2) 65.7%  67.1%  64.6%  68.3%  67.3%  65.8%  65.3%
    Efficiency ratio, excluding restructuring charges (1)(2) 65.7%  67.1%  64.6%  68.0%  67.3%  65.8%  64.7%
                  
    Capitalization Ratios             
                  
    Dividends declared to net income 33.0%  33.9%  30.5%  38.1%  36.4%  32.4%  33.8%
    Shareholders' equity to assets (Period End) 10.69%  10.87%  10.89%  10.79%  10.31%  10.69%  10.31%
    Tangible common equity to tangible assets (1) 8.71%  8.81%  8.80%  8.70%  8.22%  8.71%  8.22%
    Common equity book value per share$30.16  $29.26  $28.76  $28.44  $27.36  $30.16  $27.36 
    Tangible common equity book value per share (1)$24.05  $23.17  $22.70  $22.41  $21.32  $24.05  $21.32 
                  
    Regulatory Capital Ratios (Period End)              
    Tier 1 leverage ratio 9.53%  9.74%  9.65%  9.36%  9.43%  9.53%  9.43%
    Common equity tier 1 risk-based capital ratio 10.88%  10.72%  10.71%  10.58%  10.32%  10.88%  10.32%
    Tier 1 risk-based capital ratio 10.88%  10.72%  10.71%  10.58%  10.32%  10.88%  10.32%
    Total risk-based capital ratio 14.27%  14.09%  14.11%  13.90%  13.58%  14.27%  13.58%
                  
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
    (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 BasisSeptember 30, 2024 June 30, 2024 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$270,724 $3,6245.33%$84,546 $1,1085.27%
    Obligations of state and political subdivisions* 1,283  72.17  1,269  72.22 
    Other debt and equity securities 492,051  3,7063.00  491,871  3,7413.06 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 38,769  7427.61  37,286  7007.55 
    Total interest-earning deposits, investments and other interest-earning assets 802,827  8,0794.00  614,972  5,5563.63 
             
    Commercial, financial, and agricultural loans 997,465  18,4597.36  983,615  17,4477.13 
    Real estate—commercial and construction loans 3,592,556  52,6725.83  3,549,206  50,5775.73 
    Real estate—residential loans 1,692,361  21,1274.97  1,660,489  20,4134.94 
    Loans to individuals 26,651  5498.20  26,821  5428.13 
    Tax-exempt loans and leases 232,159  2,5654.40  230,495  2,4764.32 
    Lease financings 189,599  3,2756.87  189,910  3,1056.58 
         Gross loans and leases 6,730,791  98,6475.83  6,640,536  94,5605.73 
    Total interest-earning assets 7,533,618  106,7265.64  7,255,508  100,1165.55 
    Cash and due from banks 62,902     56,387    
    Allowance for credit losses, loans and leases (86,517)    (86,293)   
    Premises and equipment, net 47,989     48,725    
    Operating lease right-of-use assets 29,620     30,344    
    Other assets 417,653     416,869    
          Total assets$8,005,265    $7,721,540    
             
    Liabilities:        
    Interest-bearing checking deposits$1,215,166 $8,8242.89%$1,094,150 $7,3112.69%
    Money market savings 1,849,628  21,2134.56  1,692,759  19,1314.55 
    Regular savings 727,395  8780.48  759,960  9290.49 
    Time deposits 1,491,560  17,2554.60  1,422,113  16,1344.56 
         Total time and interest-bearing deposits 5,283,749  48,1703.63  4,968,982  43,5053.52 
             
    Short-term borrowings 8,210  10.05  29,506  2422.30 
    Long-term debt 247,826  2,7814.46  250,000  2,7774.47 
    Subordinated notes 149,068  2,2826.09  148,943  2,2816.16 
         Total borrowings 405,104  5,0644.97  428,449  5,3004.98 
         Total interest-bearing liabilities 5,688,853  53,2343.72  5,397,431  48,8053.64 
    Noninterest-bearing deposits 1,357,575     1,384,770    
    Operating lease liabilities 32,627     33,382    
    Accrued expenses and other liabilities 61,804     61,385    
         Total liabilities 7,140,859     6,876,968    
    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,046,428  3.01  6,782,201  2.89 
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 300,565     299,426    
    Retained earnings and other equity 406,057     387,362    
         Total shareholders' equity 864,406     844,572    
         Total liabilities and shareholders' equity$8,005,265    $7,721,540    
    Net interest income $53,492   $51,311  
             
    Net interest spread  1.92   1.91 
    Effect of net interest-free funding sources  0.90   0.93 
    Net interest margin  2.82%  2.84%
    Ratio of average interest-earning assets to average interest-bearing liabilities 132.43%    134.43%   
             
    * Obligations of states and political subdivisions 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 $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024,, 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 September 30, 2024 and June 30, 2024 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 September 30, 
    Tax Equivalent Basis2024 2023 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$270,724 $3,6245.33%$143,109 $1,8655.17%
    Obligations of state and political subdivisions* 1,283  72.17  2,281  162.78 
    Other debt and equity securities 492,051  3,7063.00  504,060  3,5402.79 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 38,769  7427.61  40,406  7126.99 
    Total interest-earning deposits, investments and other interest-earning assets 802,827  8,0794.00  689,856  6,1333.53 
             
    Commercial, financial, and agricultural loans 997,465  18,4597.36  995,355  17,5456.99 
    Real estate—commercial and construction loans 3,592,556  52,6725.83  3,552,709  49,5485.53 
    Real estate—residential loans 1,692,361  21,1274.97  1,543,360  18,2704.70 
    Loans to individuals 26,651  5498.20  26,538  5257.85 
    Tax-exempt loans and leases 232,159  2,5654.40  234,685  2,4304.11 
    Lease financings 189,599  3,2756.87  184,522  2,9286.30 
         Gross loans and leases 6,730,791  98,6475.83  6,537,169  91,2465.54 
    Total interest-earning assets 7,533,618  106,7265.64  7,227,025  97,3795.35 
    Cash and due from banks 62,902     62,673    
    Allowance for credit losses, loans and leases (86,517)    (83,827)   
    Premises and equipment, net 47,989     52,071    
    Operating lease right-of-use assets 29,620     31,647    
    Other assets 417,653     404,394    
          Total assets$8,005,265    $7,693,983    
             
    Liabilities:        
    Interest-bearing checking deposits$1,215,166 $8,8242.89%$1,070,063 $6,7032.49%
    Money market savings 1,849,628  21,2134.56  1,645,210  17,8504.30 
    Regular savings 727,395  8780.48  828,672  8610.41 
    Time deposits 1,491,560  17,2554.60  1,140,622  11,6684.06 
         Total time and interest-bearing deposits 5,283,749  48,1703.63  4,684,567  37,0823.14 
             
    Short-term borrowings 8,210  10.05  93,028  1,1174.76 
    Long-term debt 247,826  2,7814.46  320,000  3,0363.76 
    Subordinated notes 149,068  2,2826.09  148,568  2,2816.09 
         Total borrowings 405,104  5,0644.97  561,596  6,4344.55 
         Total interest-bearing liabilities 5,688,853  53,2343.72  5,246,163  43,5163.29 
    Noninterest-bearing deposits 1,357,575     1,538,143    
    Operating lease liabilities 32,627     34,788    
    Accrued expenses and other liabilities 61,804     63,374    
         Total liabilities 7,140,859     6,882,468    
    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,046,428  3.01  6,784,306  2.54 
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 300,565     299,575    
    Retained earnings and other equity 406,057     354,156    
         Total shareholders' equity 864,406     811,515    
         Total liabilities and shareholders' equity$8,005,265    $7,693,983    
    Net interest income $53,492   $53,863  
             
    Net interest spread  1.92   2.06 
    Effect of net interest-free funding sources  0.90   0.90 
    Net interest margin  2.82%  2.96%
    Ratio of average interest-earning assets to average interest-bearing liabilities 132.43%    137.76%   
             
    * Obligations of states and political subdivisions 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 $897 thousand and $563 thousand for the three months ended September 30, 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 September 30, 2024 and 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 Nine Months Ended September 30, 
    Tax Equivalent Basis2024 2023 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$159,114 $6,3415.32%$79,630 $2,8564.80%
    Obligations of state and political subdivisions* 1,500  262.32  2,284  482.81 
    Other debt and equity securities 494,310  11,0943.00  511,420  10,5472.76 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 38,392  2,1667.54  39,664  2,1027.09 
    Total interest-earning deposits, investments and other interest-earning assets 693,316  19,6273.78  632,998  15,5533.29 
             
    Commercial, financial, and agricultural loans 972,003  52,4297.21  997,590  50,0026.70 
    Real estate—commercial and construction loans 3,572,375  153,8905.75  3,447,551  137,9295.35 
    Real estate—residential loans 1,657,142  61,0954.92  1,478,871  51,2164.63 
    Loans to individuals 26,928  1,6398.13  26,859  1,4537.23 
    Tax-exempt loans and leases 231,679  7,5054.33  233,211  7,1594.10 
    Lease financings 189,733  9,5496.72  175,416  8,1286.20 
         Gross loans and leases 6,649,860  286,1075.75  6,359,498  255,8875.38 
    Total interest-earning assets 7,343,176  305,7345.56  6,992,496  271,4405.19 
    Cash and due from banks 58,070     59,811    
    Allowance for credit losses, loans and leases (86,435)    (81,829)   
    Premises and equipment, net 49,098     52,067    
    Operating lease right-of-use assets 30,359     31,384    
    Other assets 414,246     399,141    
          Total assets$7,808,514    $7,453,070    
             
    Liabilities:        
    Interest-bearing checking deposits$1,163,526 $24,3532.80%$980,725 $15,2592.08%
    Money market savings 1,749,592  59,5644.55  1,532,318  43,0203.75 
    Regular savings 752,336  2,7120.48  900,448  2,3750.35 
    Time deposits 1,384,576  47,0194.54  845,635  22,2313.51 
         Total time and interest-bearing deposits 5,050,030  133,6483.54  4,259,126  82,8852.60 
             
    Short-term borrowings 15,919  2482.08  195,606  7,0944.85 
    Long-term debt 263,380  8,4414.28  245,366  6,4383.51 
    Subordinated notes 148,944  6,8446.14  148,444  6,8446.16 
         Total borrowings 428,243  15,5334.85  589,416  20,3764.62 
         Total interest-bearing liabilities 5,478,273  149,1813.64  4,848,542  103,2612.85 
    Noninterest-bearing deposits 1,383,707     1,709,533    
    Operating lease liabilities 33,389     34,548    
    Accrued expenses and other liabilities 62,586     57,906    
         Total liabilities 6,957,955     6,650,529    
    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,861,980  2.90  6,558,075  2.11 
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 300,224     299,550    
    Retained earnings and other equity 392,551     345,207    
         Total shareholders' equity 850,559     802,541    
         Total liabilities and shareholders' equity$7,808,514    $7,453,070    
    Net interest income $156,553   $168,179  
             
    Net interest spread  1.92   2.34 
    Effect of net interest-free funding sources  0.93   0.88 
    Net interest margin  2.85%  3.22%
    Ratio of average interest-earning assets to average interest-bearing liabilities 134.04%    144.22%   
             
    * Obligations of states and political subdivisions 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 $2.0 million and $1.7 million for the nine months ended September 30, 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 nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%. 
                    


    Univest Financial Corporation
    Loan Portfolio Overview (Unaudited)
    September 30, 2024
        
    (Dollars in thousands)   
    Industry DescriptionTotal Outstanding Balance  % of Commercial Loan Portfolio
    CRE - Retail$458,230 8.6%
    Animal Production 384,554 7.2%
    CRE - Multi-family 340,181 6.4%
    CRE - 1-4 Family Residential Investment 295,454 5.6%
    CRE - Office 294,508 5.6%
    CRE - Industrial / Warehouse 254,019 4.8%
    Hotels & Motels (Accommodation) 186,130 3.5%
    Specialty Trade Contractors 180,486 3.4%
    Nursing and Residential Care Facilities 167,467 3.2%
    Education 167,282 3.2%
    Motor Vehicle and Parts Dealers 129,799 2.4%
    Repair and Maintenance 127,927 2.4%
    Merchant Wholesalers, Durable Goods 125,009 2.4%
    Homebuilding (tract developers, remodelers) 120,040 2.2%
    CRE - Mixed-Use - Residential 110,137 2.1%
    Crop Production 104,343 2.0%
    Wood Product Manufacturing 93,505 1.8%
    Food Services and Drinking Places 88,178 1.7%
    Real Estate Lenders, Secondary Market Financing 85,171 1.6%
    Rental and Leasing Services 79,876 1.5%
    Religious Organizations, Advocacy Groups 73,802 1.4%
    Fabricated Metal Product Manufacturing 72,794 1.4%
    CRE - Mixed-Use - Commercial 72,268 1.4%
    Administrative and Support Services 71,787 1.4%
    Personal and Laundry Services 71,184 1.3%
    Merchant Wholesalers, Nondurable Goods 69,363 1.3%
    Amusement, Gambling, and Recreation Industries 69,052 1.3%
    Miniwarehouse / Self-Storage 65,176 1.2%
    Food Manufacturing 61,472 1.1%
    Truck Transportation 52,570 1.0%
    Industries with >$50 million in outstandings$4,471,764 84.3% 
    Industries with <$50 million in outstandings$830,652 15.7% 
    Total Commercial Loans$5,302,416 100.0% 
        
        
    Consumer Loans and Lease FinancingsTotal Outstanding Balance  
    Real Estate-Residential Secured for Personal Purpose 969,562  
    Real Estate-Home Equity Secured for Personal Purpose 182,901  
    Loans to Individuals 26,794  
    Lease Financings 249,061  
    Total - Consumer Loans and Lease Financings$1,428,318  
        
    Total$6,730,734  
        


    Univest Financial Corporation
    Non-GAAP Reconciliation
    September 30, 2024
     
    Non-GAAP to GAAP Reconciliation
    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, As of or for the nine months ended,
    (Dollars in thousands)09/30/24 06/30/24 03/31/24 12/31/23 09/30/23 09/30/24 09/30/23
    Restructuring charges (a)  $-  $-  $-  $189  $-  $-  $1,330 
    Tax effect of restructuring charges   -   -   -   (40)  -   -   (279)
    Restructuring charges, net of tax  $-  $-  $-  $149  $-  $-  $1,051 
                     
    Net income$18,578  $18,107  $20,305  $16,254  $17,016  $56,990  $54,850 
    Amortization of intangibles, net of tax 130   149   148   167   174   426   574 
    Net income before amortization of intangibles$18,708  $18,256  $20,453  $16,421  $17,190  $57,416  $55,424 
                     
    Shareholders' equity$877,071  $854,137  $843,669  $839,208  $807,198  $877,071  $807,198 
    Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)
    Other intangibles (b)  (2,147)  (2,157)  (2,273)  (2,405)  (2,558)  (2,147)  (2,558)
    Tangible common equity$699,414  $676,470  $665,886  $661,293  $629,130  $699,414  $629,130 
                     
    Total assets$8,205,737  $7,855,446  $7,746,568  $7,780,628  $7,828,066  $8,205,737  $7,828,066 
    Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)
    Other intangibles (b)  (2,147)  (2,157)  (2,273)  (2,405)  (2,558)  (2,147)  (2,558)
    Tangible assets$8,028,080  $7,677,779  $7,568,785  $7,602,713  $7,649,998  $8,028,080  $7,649,998 
                     
    Average shareholders' equity$864,406  $844,572  $842,546  $814,941  $811,515  $850,559  $802,541 
    Average goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)
    Average other intangibles (b)  (2,086)  (2,222)  (2,318)  (2,477)  (2,680)  (2,209)  (2,913)
    Average tangible common equity$686,810  $666,840  $664,718  $636,954  $633,325  $672,840  $624,118 
                     
    (a) Associated with branch optimization and headcount rationlization expense management strategies
    (b) Amount does not include mortgage servicing rights
                     

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

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