UVSP Univest Financial Corporation

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.

LoansGross 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 LiquidityTotal 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availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.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 MarginNet 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 IncomeNoninterest 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 ExpenseNoninterest 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 LossesNonperforming 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 RepurchasesOn 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 CallUnivest 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 CorporationUnivest 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 Basis	September 30, 2024							June 30, 2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	270,724		$	3,624	5.33	%	$	84,546		$	1,108	5.27	%
Obligations of state and political subdivisions*		1,283			7	2.17			1,269			7	2.22
Other debt and equity securities		492,051			3,706	3.00			491,871			3,741	3.06
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,769			742	7.61			37,286			700	7.55
Total interest-earning deposits, investments and other interest-earning assets		802,827			8,079	4.00			614,972			5,556	3.63
Commercial, financial, and agricultural loans		997,465			18,459	7.36			983,615			17,447	7.13
Real estate—commercial and construction loans		3,592,556			52,672	5.83			3,549,206			50,577	5.73
Real estate—residential loans		1,692,361			21,127	4.97			1,660,489			20,413	4.94
Loans to individuals		26,651			549	8.20			26,821			542	8.13
Tax-exempt loans and leases		232,159			2,565	4.40			230,495			2,476	4.32
Lease financings		189,599			3,275	6.87			189,910			3,105	6.58
Gross loans and leases		6,730,791			98,647	5.83			6,640,536			94,560	5.73
Total interest-earning assets		7,533,618			106,726	5.64			7,255,508			100,116	5.55
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		$	8,824	2.89	%	$	1,094,150		$	7,311	2.69	%
Money market savings		1,849,628			21,213	4.56			1,692,759			19,131	4.55
Regular savings		727,395			878	0.48			759,960			929	0.49
Time deposits		1,491,560			17,255	4.60			1,422,113			16,134	4.56
Total time and interest-bearing deposits		5,283,749			48,170	3.63			4,968,982			43,505	3.52
Short-term borrowings		8,210			1	0.05			29,506			242	2.30
Long-term debt		247,826			2,781	4.46			250,000			2,777	4.47
Subordinated notes		149,068			2,282	6.09			148,943			2,281	6.16
Total borrowings		405,104			5,064	4.97			428,449			5,300	4.98
Total interest-bearing liabilities		5,688,853			53,234	3.72			5,397,431			48,805	3.64
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 Basis	2024							2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	270,724		$	3,624	5.33	%	$	143,109		$	1,865	5.17	%
Obligations of state and political subdivisions*		1,283			7	2.17			2,281			16	2.78
Other debt and equity securities		492,051			3,706	3.00			504,060			3,540	2.79
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,769			742	7.61			40,406			712	6.99
Total interest-earning deposits, investments and other interest-earning assets		802,827			8,079	4.00			689,856			6,133	3.53
Commercial, financial, and agricultural loans		997,465			18,459	7.36			995,355			17,545	6.99
Real estate—commercial and construction loans		3,592,556			52,672	5.83			3,552,709			49,548	5.53
Real estate—residential loans		1,692,361			21,127	4.97			1,543,360			18,270	4.70
Loans to individuals		26,651			549	8.20			26,538			525	7.85
Tax-exempt loans and leases		232,159			2,565	4.40			234,685			2,430	4.11
Lease financings		189,599			3,275	6.87			184,522			2,928	6.30
Gross loans and leases		6,730,791			98,647	5.83			6,537,169			91,246	5.54
Total interest-earning assets		7,533,618			106,726	5.64			7,227,025			97,379	5.35
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		$	8,824	2.89	%	$	1,070,063		$	6,703	2.49	%
Money market savings		1,849,628			21,213	4.56			1,645,210			17,850	4.30
Regular savings		727,395			878	0.48			828,672			861	0.41
Time deposits		1,491,560			17,255	4.60			1,140,622			11,668	4.06
Total time and interest-bearing deposits		5,283,749			48,170	3.63			4,684,567			37,082	3.14
Short-term borrowings		8,210			1	0.05			93,028			1,117	4.76
Long-term debt		247,826			2,781	4.46			320,000			3,036	3.76
Subordinated notes		149,068			2,282	6.09			148,568			2,281	6.09
Total borrowings		405,104			5,064	4.97			561,596			6,434	4.55
Total interest-bearing liabilities		5,688,853			53,234	3.72			5,246,163			43,516	3.29
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 Basis	2024							2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	159,114		$	6,341	5.32	%	$	79,630		$	2,856	4.80	%
Obligations of state and political subdivisions*		1,500			26	2.32			2,284			48	2.81
Other debt and equity securities		494,310			11,094	3.00			511,420			10,547	2.76
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,392			2,166	7.54			39,664			2,102	7.09
Total interest-earning deposits, investments and other interest-earning assets		693,316			19,627	3.78			632,998			15,553	3.29
Commercial, financial, and agricultural loans		972,003			52,429	7.21			997,590			50,002	6.70
Real estate—commercial and construction loans		3,572,375			153,890	5.75			3,447,551			137,929	5.35
Real estate—residential loans		1,657,142			61,095	4.92			1,478,871			51,216	4.63
Loans to individuals		26,928			1,639	8.13			26,859			1,453	7.23
Tax-exempt loans and leases		231,679			7,505	4.33			233,211			7,159	4.10
Lease financings		189,733			9,549	6.72			175,416			8,128	6.20
Gross loans and leases		6,649,860			286,107	5.75			6,359,498			255,887	5.38
Total interest-earning assets		7,343,176			305,734	5.56			6,992,496			271,440	5.19
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		$	24,353	2.80	%	$	980,725		$	15,259	2.08	%
Money market savings		1,749,592			59,564	4.55			1,532,318			43,020	3.75
Regular savings		752,336			2,712	0.48			900,448			2,375	0.35
Time deposits		1,384,576			47,019	4.54			845,635			22,231	3.51
Total time and interest-bearing deposits		5,050,030			133,648	3.54			4,259,126			82,885	2.60
Short-term borrowings		15,919			248	2.08			195,606			7,094	4.85
Long-term debt		263,380			8,441	4.28			245,366			6,438	3.51
Subordinated notes		148,944			6,844	6.14			148,444			6,844	6.16
Total borrowings		428,243			15,533	4.85			589,416			20,376	4.62
Total interest-bearing liabilities		5,478,273			149,181	3.64			4,848,542			103,261	2.85
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 Description	Total 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 Financings	Total 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