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 June 30, 2024 was $18.1 million, or $0.62 diluted earnings per share, compared to net income of $16.8 million, or $0.57 diluted earnings per share, for the quarter ended June 30, 2023.

One-Time ItemsThe financial results for the quarter included tax-free bank owned life insurance ("BOLI") death benefit claims of $171 thousand, which represented $0.01 diluted earnings per share. The financial results for the second quarter of 2023 included a $1.3 million ($1.1 million after-tax), or $0.04 diluted earnings per share, restructuring charge associated with expense management strategies deployed in response to macroeconomic headwinds. Excluding these one-time items, diluted earnings per share was $0.61 for the quarters ended June 30, 2024 and June 30, 2023.

LoansGross loans and leases increased $105.8 million, or 1.6% (6.4% annualized), from March 31, 2024, and $117.6 million, or 1.8% (3.6% 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 $90.0 million, or 1.4% (5.6% annualized), from March 31, 2024, primarily due to increases in commercial and consumer deposits, partially offset by decreases in brokered and public funds deposits. Total deposits increased $119.5 million, or 1.9% (3.8% annualized), from December 31, 2023, primarily due to increases in commercial, consumer and brokered deposits, partially offset by a seasonal decrease in public funds deposits. Noninterest-bearing deposits represented 21.5% of total deposits at June 30, 2024, down from 21.9% at March 31, 2024. At June 30, 2024, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 22.1% of total deposits, down from 22.3% at March 31, 2024.

As of June 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $190.9 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at June 30, 2024, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $459.0 million at June 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 $51.0 million for the second quarter of 2024 decreased $3.3 million, or 6.1%, from the second quarter of 2023 and $440 thousand, or 0.9%, from the first quarter of 2024. The decreases in net interest income for both comparison periods reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which has 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 funding mix.

Net interest margin, on a tax-equivalent basis, was 2.84% for the second quarter of 2024, compared to 2.88% for the first quarter of 2024 and 3.14% for the second quarter of 2023. Excess liquidity reduced net interest margin by approximately two basis points for the quarter ended June 30, 2024 compared to approximately three basis points for the quarter ended March 31, 2024. Excess liquidity had no impact on net interest margin for the quarter ended June 30, 2023.

Noninterest IncomeNoninterest income for the quarter ended June 30, 2024 was $21.0 million, an increase of $1.1 million, or 5.8%, from the comparable period in the prior year.

Net gain on mortgage banking activities increased $671 thousand, or 64.6%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to increased salable volume. Investment advisory commission and fee income increased $530 thousand, or 11.3%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to increased assets under management driven by market appreciation and new customer relationships. Bank owned life insurance income increased $297 thousand, or 37.6%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to the previously discussed death benefit claims. Service charges on deposit accounts increased $257 thousand, or 14.9%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to increased treasury management income.

Other service fee income decreased $274 thousand, or 8.3%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to reduced servicing fees resulting from the sale of the mortgage servicing rights in the first quarter of 2024 associated with $591.1 million of serviced loans.

Other income decreased $477 thousand, or 39.0%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023. Fees on risk participation agreements for interest rate swaps decreased $710 thousand due to reduced customer demand. Additionally, the second quarter of 2023 included a loss of $250 thousand on the sale of an interest in a shared national credit.

Noninterest ExpenseNoninterest expense for the quarter ended June 30, 2024 was $48.7 million, a decrease of $1.1 million, or 2.2%, from the comparable period in the prior year.

As previously discussed, the second quarter of 2023 included restructuring charges of $1.3 million. Excluding restructuring charges, noninterest expense for the quarter ended June 30, 2024 increased $239 thousand, or 0.5%, from the comparable period in the prior year, which reflects the benefit of the various expense management strategies deployed during 2023.

Salaries, benefits and commissions increased $312 thousand, or 1.0%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to decreased capitalized compensation driven by lower loan production, partially offset by decreased salary expense due to staff reductions over the last twelve months.

Tax Provision The effective income tax rate was 19.9% for the quarter ended June 30, 2024, compared to an effective tax rate of 19.8% for the quarter ended June 30, 2023. The effective tax rates for the three months ended June 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rate for the three months ended June 30, 2024 was favorably impacted by proceeds from BOLI death benefits. Excluding these BOLI death benefits, the effective tax rate was 20.0% for the three months ended June 30, 2024.

Asset Quality and Provision for Credit LossesNonperforming assets were $36.6 million at June 30, 2024, compared to $40.0 million at March 31, 2024 and $34.5 million at June 30, 2023. The decrease in nonperforming assets from March 31, 2024 was primarily due to pay-downs of $2.2 million on two nonaccrual construction loans to one borrower.

Net loan and lease charge-offs were $809 thousand for the three months ended June 30, 2024 compared to $1.4 million and $512 thousand for the three months ended March 31, 2024 and June 30, 2023, respectively.

The provision for credit losses was $707 thousand for the three months ended June 30, 2024 compared to $1.4 million and $3.4 million for the three months ended March 31, 2024 and June 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 June 30, 2024 and June 30, 2023, and 1.30% at March 31, 2024.

Dividend and Share RepurchasesOn July 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on August 21, 2024 to shareholders of record as of August 7, 2024. During the quarter ended June 30, 2024, the Corporation repurchased 190,808 shares of common stock at an average price of $20.93 per share. Including brokerage fees and excise tax, the average price per share was $21.17. As of June 30, 2024, 696,374 shares are available for repurchase under the Share Repurchase Plan.

Conference CallUnivest will host a conference call to discuss second quarter 2024 results on Thursday, July 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=962df298&confId=68082. The general public can access the call by dialing 1-833-470-1428; using Access Code 117459. A replay of the conference call will be available through September 23, 2024 by dialing 1-866-813-9403; using Access Code 310450.

About Univest Financial CorporationUnivest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.9 billion in assets and $5.0 billion in assets under management and supervision through its Wealth Management lines of business at June 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; (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; (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)
June 30, 2024
(Dollars in thousands)
Balance Sheet (Period End)	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23
ASSETS
Cash and due from banks	$	66,808			$	49,318			$	72,815			$	68,900			$	80,795
Interest-earning deposits with other banks		124,103				152,288				176,984				221,441				59,616
Cash and cash equivalents		190,911				201,606				249,799				290,341				140,411
Investment securities held-to-maturity		140,112				143,474				145,777				149,451				153,509
Investment securities available for sale, net of allowance for credit losses		342,776				350,819				351,553				334,538				356,164
Investments in equity securities		2,995				3,355				3,293				4,054				3,443
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		37,438				37,394				40,499				42,417				42,811
Loans held for sale		28,176				13,188				11,637				16,473				29,526
Loans and leases held for investment		6,684,837				6,579,086				6,567,214				6,574,958				6,462,238
Less: Allowance for credit losses, loans and leases		(85,745	)			(85,632	)			(85,387	)			(83,837	)			(82,709	)
Net loans and leases held for investment		6,599,092				6,493,454				6,481,827				6,491,121				6,379,529
Premises and equipment, net		48,174				48,739				51,441				51,287				52,058
Operating lease right-of-use assets		29,985				30,702				31,795				31,053				30,237
Goodwill		175,510				175,510				175,510				175,510				175,510
Other intangibles, net of accumulated amortization		7,701				7,473				10,950				11,079				10,923
Bank owned life insurance		137,823				137,896				131,344				130,522				129,715
Accrued interest and other assets		114,753				102,958				95,203				100,220				96,314
Total assets	$	7,855,446			$	7,746,568			$	7,780,628			$	7,828,066			$	7,600,150
LIABILITIES
Noninterest-bearing deposits	$	1,397,308			$	1,401,806			$	1,468,320			$	1,432,559			$	1,582,767
Interest-bearing deposits:		5,098,014				5,003,552				4,907,461				5,006,606				4,404,635
Total deposits		6,495,322				6,405,358				6,375,781				6,439,165				5,987,402
Short-term borrowings		11,781				4,816				6,306				14,676				244,666
Long-term debt		250,000				250,000				310,000				320,000				320,000
Subordinated notes		149,011				148,886				148,761				148,636				148,510
Operating lease liabilities		33,015				33,744				34,851				34,017				33,428
Accrued expenses and other liabilities		62,180				60,095				65,721				64,374				60,922
Total liabilities		7,001,309				6,902,899				6,941,420				7,020,868				6,794,928
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		300,166				298,914				301,066				300,171				299,212
Retained earnings		500,482				488,790				474,691				464,634				453,806
Accumulated other comprehensive loss, net of tax benefit		(54,124	)			(54,740	)			(50,646	)			(71,586	)			(61,034	)
Treasury stock, at cost		(50,171	)			(47,079	)			(43,687	)			(43,805	)			(44,546	)
Total shareholders’ equity		854,137				843,669				839,208				807,198				805,222
Total liabilities and shareholders’ equity	$	7,855,446			$	7,746,568			$	7,780,628			$	7,828,066			$	7,600,150
	For the three months ended,																				For the six months ended,
Balance Sheet (Average)	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23				06/30/24				06/30/23
Assets	$	7,721,540			$	7,696,575			$	7,865,634			$	7,693,983			$	7,440,798			$	7,709,058			$	7,330,616
Investment securities, net of allowance for credit losses		493,140				500,983				489,587				506,341				518,995				497,061				517,446
Loans and leases, gross		6,640,536				6,577,365				6,594,233				6,537,169				6,372,342				6,608,950				6,269,190
Deposits		6,353,752				6,303,854				6,470,141				6,222,710				5,844,582				6,328,804				5,839,526
Shareholders' equity		844,572				842,546				814,941				811,515				806,709				843,559				797,980

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
June 30, 2024
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23
Commercial, financial and agricultural	$	1,055,332			$	1,014,568			$	989,723			$	1,050,004			$	1,039,265
Real estate-commercial		3,373,889				3,283,729				3,302,798				3,275,140				3,221,993
Real estate-construction		313,229				379,995				394,462				427,561				413,404
Real estate-residential secured for business purpose		532,628				524,196				517,002				516,471				517,521
Real estate-residential secured for personal purpose		952,665				922,412				909,015				861,122				832,632
Real estate-home equity secured for personal purpose		179,150				177,446				179,282				176,855				175,090
Loans to individuals		26,430				27,200				27,749				27,331				25,544
Lease financings		251,514				249,540				247,183				240,474				236,789
Total loans and leases held for investment, net of deferred income		6,684,837				6,579,086				6,567,214				6,574,958				6,462,238
Less: Allowance for credit losses, loans and leases		(85,745	)			(85,632	)			(85,387	)			(83,837	)			(82,709	)
Net loans and leases held for investment	$	6,599,092			$	6,493,454			$	6,481,827			$	6,491,121			$	6,379,529
Asset Quality Data (Period End)	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23
Nonaccrual loans and leases, including nonaccrual loans held for sale*	$	16,200			$	20,363			$	20,527			$	18,085			$	15,087
Accruing loans and leases 90 days or more past due		205				268				534				2,135				55
Total nonperforming loans and leases		16,405				20,631				21,061				20,220				15,142
Other real estate owned		20,007				19,220				19,032				19,916				19,345
Repossessed assets		149				167				-				-				-
Total nonperforming assets	$	36,561			$	40,018			$	40,093			$	40,136			$	34,487
Nonaccrual loans and leases / Loans and leases held for investment		0.24	%			0.31	%			0.31	%			0.28	%			0.23	%
Nonperforming loans and leases / Loans and leases held for investment		0.25	%			0.31	%			0.32	%			0.31	%			0.23	%
Nonperforming assets / Total assets		0.47	%			0.52	%			0.52	%			0.51	%			0.45	%
Allowance for credit losses, loans and leases	$	85,745			$	85,632			$	85,387			$	83,837			$	82,709
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%			1.30	%			1.30	%			1.28	%			1.28	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases		529.29	%			420.53	%			415.97	%			463.57	%			548.21	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases		522.68	%			415.06	%			405.43	%			414.62	%			546.22	%
*Includes a $5.8 million loan held for sale at September 30, 2023.
	For the three months ended,																				For the six months ended,
	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23				06/30/24				06/30/23
Net loan and lease charge-offs	$	809			$	1,406			$	1,074			$	969			$	512			$	2,215			$	3,354
Net loan and lease charge-offs (annualized)/Average loans and leases		0.05	%			0.09	%			0.06	%			0.06	%			0.03	%			0.07	%			0.11	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2024
(Dollars in thousands, except per share data)
	For the three months ended,																				For the six months ended,
For the period:	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23				06/30/24				06/30/23
Interest income	$	99,832			$	98,609			$	101,232			$	97,106			$	90,139			$	198,441			$	173,392
Interest expense		48,805				47,142				48,472				43,516				35,809				95,947				59,745
Net interest income		51,027				51,467				52,760				53,590				54,330				102,494				113,647
Provision for credit losses		707				1,432				1,931				2,024				3,428				2,139				6,815
Net interest income after provision for credit losses		50,320				50,035				50,829				51,566				50,902				100,355				106,832
Noninterest income:
Trust fee income		2,008				2,108				1,943				1,910				1,924				4,116				3,879
Service charges on deposit accounts		1,982				1,871				1,960				1,816				1,725				3,853				3,272
Investment advisory commission and fee income		5,238				5,194				4,561				4,843				4,708				10,432				9,460
Insurance commission and fee income		5,167				7,201				4,596				4,852				5,108				12,368				11,595
Other service fee income		3,044				6,415				2,967				3,020				3,318				9,459				6,394
Bank owned life insurance income		1,086				842				823				806				789				1,928				1,556
Net gain on mortgage banking activities		1,710				939				809				1,216				1,039				2,649				1,664
Other income		745				1,025				961				228				1,222				1,770				1,693
Total noninterest income		20,980				25,595				18,620				18,691				19,833				46,575				39,513
Noninterest expense:
Salaries, benefits and commissions		30,187				31,338				29,321				29,978				29,875				61,525				60,889
Net occupancy		2,679				2,872				2,751				2,594				2,614				5,551				5,341
Equipment		1,088				1,111				1,066				1,087				986				2,199				1,979
Data processing		4,161				4,495				4,444				4,189				4,137				8,656				8,166
Professional fees		1,466				1,688				1,768				1,763				1,669				3,154				3,610
Marketing and advertising		715				416				632				555				622				1,131				993
Deposit insurance premiums		1,098				1,135				1,350				1,258				1,116				2,233				2,217
Intangible expenses		188				187				212				220				253				375				506
Restructuring charges		-				-				189				-				1,330				-				1,330
Other expense		7,126				6,832				7,313				7,344				7,197				13,958				14,297
Total noninterest expense		48,708				50,074				49,046				48,988				49,799				98,782				99,328
Income before taxes		22,592				25,556				20,403				21,269				20,936				48,148				47,017
Income tax expense		4,485				5,251				4,149				4,253				4,136				9,736				9,183
Net income	$	18,107			$	20,305			$	16,254			$	17,016			$	16,800			$	38,412			$	37,834
Net income per share:
Basic	$	0.62			$	0.69			$	0.55			$	0.58			$	0.57			$	1.31			$	1.29
Diluted	$	0.62			$	0.69			$	0.55			$	0.58			$	0.57			$	1.30			$	1.28
Dividends declared per share	$	0.21			$	0.21			$	0.21			$	0.21			$	0.21			$	0.42			$	0.42
Weighted average shares outstanding		29,246,977				29,413,999				29,500,147				29,479,066				29,439,392				29,330,488				29,376,179
Period end shares outstanding		29,190,640				29,337,919				29,511,721				29,508,128				29,471,124				29,190,640				29,471,124

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2024
	For the three months ended,																				For the six months ended,
Profitability Ratios (annualized)	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23				06/30/24				06/30/23
Return on average assets		0.94	%			1.06	%			0.82	%			0.88	%			0.91	%			1.00	%			1.04	%
Return on average assets, excluding restructuring		0.94	%			1.06	%			0.83	%			0.88	%			0.96	%			1.00	%			1.07	%
charges (1)
Return on average shareholders' equity		8.62	%			9.69	%			7.91	%			8.32	%			8.35	%			9.16	%			9.56	%
Return on average shareholders' equity, excluding		8.62	%			9.69	%			7.99	%			8.32	%			8.88	%			9.16	%			9.83	%
restructuring charges (1)
Return on average tangible common equity (1)(3)		11.01	%			12.38	%			10.23	%			10.77	%			10.85	%			11.69	%			12.45	%
Return on average tangible common equity, excluding		11.01	%			12.38	%			10.32	%			10.77	%			11.52	%			11.69	%			12.79	%
restructuring charges (1)(3)
Net interest margin (FTE)		2.84	%			2.88	%			2.84	%			2.96	%			3.14	%			2.86	%			3.35	%
Efficiency ratio (2)		67.1	%			64.6	%			68.3	%			67.3	%			66.7	%			65.8	%			64.4	%
Efficiency ratio, excluding restructuring charges (1)(2)		67.1	%			64.6	%			68.0	%			67.3	%			64.9	%			65.8	%			63.5	%
Capitalization Ratios
Dividends declared to net income		33.9	%			30.5	%			38.1	%			36.4	%			36.8	%			32.1	%			32.6	%
Shareholders' equity to assets (Period End)		10.87	%			10.89	%			10.79	%			10.31	%			10.59	%			10.87	%			10.59	%
Tangible common equity to tangible assets (1)		8.81	%			8.80	%			8.70	%			8.22	%			8.45	%			8.81	%			8.45	%
Common equity book value per share	$	29.26			$	28.76			$	28.44			$	27.36			$	27.32			$	29.26			$	27.32
Tangible common equity book value per share (1)	$	23.17			$	22.70			$	22.41			$	21.32			$	21.27			$	23.17			$	21.27
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.74	%			9.65	%			9.36	%			9.43	%			9.59	%			9.74	%			9.59	%
Common equity tier 1 risk-based capital ratio		10.72	%			10.71	%			10.58	%			10.32	%			10.26	%			10.72	%			10.26	%
Tier 1 risk-based capital ratio		10.72	%			10.71	%			10.58	%			10.32	%			10.26	%			10.72	%			10.26	%
Total risk-based capital ratio		14.09	%			14.11	%			13.90	%			13.58	%			13.54	%			14.09	%			13.54	%
(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	June 30, 2024									March 31, 2024
	Average			Income/			Average			Average			Income/			Average
(Dollars in thousands)	Balance			Expense			Rate			Balance			Expense			Rate
Assets:
Interest-earning deposits with other banks	$	84,546		$	1,108		5.27	%		$	120,845		$	1,609		5.36	%
Obligations of state and political subdivisions*		1,269			7		2.22				1,951			12		2.47
Other debt and equity securities		491,871			3,741		3.06				499,032			3,647		2.94
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,286			700		7.55				39,115			724		7.44
Total interest-earning deposits, investments and other interest-earning assets		614,972			5,556		3.63				660,943			5,992		3.65
Commercial, financial, and agricultural loans		983,615			17,447		7.13				934,649			16,523		7.11
Real estate—commercial and construction loans		3,549,206			50,577		5.73				3,575,142			50,641		5.70
Real estate—residential loans		1,660,489			20,413		4.94				1,618,188			19,555		4.86
Loans to individuals		26,821			542		8.13				27,315			548		8.07
Municipal loans and leases *		230,495			2,476		4.32				232,380			2,464		4.26
Lease financings		189,910			3,105		6.58				189,691			3,169		6.72
Gross loans and leases		6,640,536			94,560		5.73				6,577,365			92,900		5.68
Total interest-earning assets		7,255,508			100,116		5.55				7,238,308			98,892		5.49
Cash and due from banks		56,387									54,870
Allowance for credit losses, loans and leases		(86,293	)								(86,495	)
Premises and equipment, net		48,725									50,592
Operating lease right-of-use assets		30,344									31,121
Other assets		416,869									408,179
Total assets	$	7,721,540								$	7,696,575
Liabilities:
Interest-bearing checking deposits	$	1,094,150		$	7,311		2.69	%		$	1,180,696		$	8,218		2.80	%
Money market savings		1,692,759			19,131		4.55				1,705,291			19,220		4.53
Regular savings		759,960			929		0.49				769,926			905		0.47
Time deposits		1,422,113			16,134		4.56				1,238,878			13,630		4.42
Total time and interest-bearing deposits		4,968,982			43,505		3.52				4,894,791			41,973		3.45
Short-term borrowings		29,506			242		2.30				10,127			5		0.20
Long-term debt		250,000			2,777		4.47				292,486			2,883		3.96
Subordinated notes		148,943			2,281		6.16				148,818			2,281		6.16
Total borrowings		428,449			5,300		4.98				451,431			5,169		4.61
Total interest-bearing liabilities		5,397,431			48,805		3.64				5,346,222			47,142		3.55
Noninterest-bearing deposits		1,384,770									1,409,063
Operating lease liabilities		33,382									34,166
Accrued expenses and other liabilities		61,385									64,578
Total liabilities		6,876,968									6,854,029
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,782,201					2.89				6,755,285					2.81
Shareholders' Equity:
Common stock		157,784									157,784
Additional paid-in capital		299,426									300,679
Retained earnings and other equity		387,362									384,083
Total shareholders' equity		844,572									842,546
Total liabilities and shareholders' equity	$	7,721,540								$	7,696,575
Net interest income				$	51,311								$	51,750
Net interest spread							1.91									1.94
Effect of net interest-free funding sources							0.93									0.94
Net interest margin							2.84	%								2.88	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.43	%								135.39	%
* 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 $698 thousand and $453 thousand for the three months ended June 30, 2024 and March 31,
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 June 30, 2024 and March 31, 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 June 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	$	84,546		$	1,108		5.27	%		$	46,897		$	512		4.38	%
Obligations of state and political subdivisions*		1,269			7		2.22				2,284			15		2.63
Other debt and equity securities		491,871			3,741		3.06				516,711			3,512		2.73
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,286			700		7.55				43,783			781		7.15
Total interest-earning deposits, investments and other interest-earning assets		614,972			5,556		3.63				609,675			4,820		3.17
Commercial, financial, and agricultural loans		983,615			17,447		7.13				1,005,499			16,919		6.75
Real estate—commercial and construction loans		3,549,206			50,577		5.73				3,445,431			45,960		5.35
Real estate—residential loans		1,660,489			20,413		4.94				1,483,478			17,216		4.65
Loans to individuals		26,821			542		8.13				26,794			479		7.17
Municipal loans and leases*		230,495			2,476		4.32				234,940			2,388		4.08
Lease financings		189,910			3,105		6.58				176,200			2,659		6.05
Gross loans and leases		6,640,536			94,560		5.73				6,372,342			85,621		5.39
Total interest-earning assets		7,255,508			100,116		5.55				6,982,017			90,441		5.20
Cash and due from banks		56,387									58,675
Allowance for credit losses, loans and leases		(86,293	)								(81,641	)
Premises and equipment, net		48,725									52,540
Operating lease right-of-use assets		30,344									31,200
Other assets		416,869									398,007
Total assets	$	7,721,540								$	7,440,798
Liabilities:
Interest-bearing checking deposits	$	1,094,150		$	7,311		2.69	%		$	1,011,889		$	5,392		2.14	%
Money market savings		1,692,759			19,131		4.55				1,460,899			14,089		3.87
Regular savings		759,960			929		0.49				888,680			845		0.38
Time deposits		1,422,113			16,134		4.56				823,665			7,141		3.48
Total time and interest-bearing deposits		4,968,982			43,505		3.52				4,185,133			27,467		2.63
Short-term borrowings		29,506			242		2.30				255,090			3,249		5.11
Long-term debt		250,000			2,777		4.47				301,593			2,811		3.74
Subordinated notes		148,943			2,281		6.16				148,443			2,282		6.17
Total borrowings		428,449			5,300		4.98				705,126			8,342		4.75
Total interest-bearing liabilities		5,397,431			48,805		3.64				4,890,259			35,809		2.94
Noninterest-bearing deposits		1,384,770									1,659,449
Operating lease liabilities		33,382									34,415
Accrued expenses and other liabilities		61,385									49,966
Total liabilities		6,876,968									6,634,089
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,782,201					2.89				6,549,708					2.19
Shareholders' Equity:
Common stock		157,784									157,784
Additional paid-in capital		299,426									298,788
Retained earnings and other equity		387,362									350,137
Total shareholders' equity		844,572									806,709
Total liabilities and shareholders' equity	$	7,721,540								$	7,440,798
Net interest income				$	51,311								$	54,632
Net interest spread							1.91									2.26
Effect of net interest-free funding sources							0.93									0.88
Net interest margin							2.84	%								3.14	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.43	%								142.77	%
* 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 $698 thousand and $668 thousand for the three months ended
June 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 June 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 Six Months Ended June 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	$	102,696		$	2,717		5.32	%		$	47,364		$	991		4.22	%
Obligations of state and political subdivisions*		1,610			19		2.37				2,285			32		2.82
Other debt and equity securities		495,451			7,388		3.00				515,161			7,007		2.74
Federal Home Loan Bank, Federal Reserve Bank and other stock		38,201			1,424		7.50				39,287			1,390		7.13
Total interest-earning deposits, investments and other interest-earning assets		637,958			11,548		3.64				604,097			9,420		3.14
Commercial, financial, and agricultural loans		959,132			33,970		7.12				998,726			32,457		6.55
Real estate—commercial and construction loans		3,562,174			101,218		5.71				3,394,100			88,381		5.25
Real estate—residential loans		1,639,339			39,968		4.90				1,446,093			32,946		4.59
Loans to individuals		27,068			1,090		8.10				27,023			928		6.93
Municipal loans and leases*		231,437			4,940		4.29				232,461			4,729		4.10
Lease financings		189,800			6,274		6.65				170,787			5,200		6.14
Gross loans and leases		6,608,950			187,460		5.70				6,269,190			164,641		5.30
Total interest-earning assets		7,246,908			199,008		5.52				6,873,287			174,061		5.11
Cash and due from banks		55,628									58,356
Allowance for credit losses, loans and leases		(86,394	)								(80,813	)
Premises and equipment, net		49,659									52,064
Operating lease right-of-use assets		30,733									31,251
Other assets		412,524									396,471
Total assets	$	7,709,058								$	7,330,616
Liabilities:
Interest-bearing checking deposits	$	1,137,423		$	15,529		2.75	%		$	935,316		$	8,556		1.84	%
Money market savings		1,699,025			38,351		4.54				1,474,936			25,170		3.44
Regular savings		764,943			1,834		0.48				936,930			1,514		0.33
Time deposits		1,330,496			29,764		4.50				695,697			10,563		3.06
Total time and interest-bearing deposits		4,931,887			85,478		3.49				4,042,879			45,803		2.28
Short-term borrowings		19,816			247		2.51				247,745			5,977		4.87
Long-term debt		271,243			5,660		4.20				207,431			3,402		3.31
Subordinated notes		148,881			4,562		6.16				148,381			4,563		6.20
Total borrowings		439,940			10,469		4.79				603,557			13,942		4.66
Total interest-bearing liabilities		5,371,827			95,947		3.59				4,646,436			59,745		2.59
Noninterest-bearing deposits		1,396,917									1,796,647
Operating lease liabilities		33,774									34,427
Accrued expenses and other liabilities		62,981									55,126
Total liabilities		6,865,499									6,532,636
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,768,744					2.85				6,443,083					1.87
Shareholders' Equity:
Common stock		157,784									157,784
Additional paid-in capital		300,052									299,537
Retained earnings and other equity		385,723									340,659
Total shareholders' equity		843,559									797,980
Total liabilities and shareholders' equity	$	7,709,058								$	7,330,616
Net interest income				$	103,061								$	114,316
Net interest spread							1.93									2.52
Effect of net interest-free funding sources							0.93									0.83
Net interest margin							2.86	%								3.35	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%								147.93	%
* 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 $1.2 million and $1.1 million for the six months ended
June 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 six months ended June 30, 2024 and 2023 have
been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
June 30, 2024
(Dollars in thousands)
Industry Description	Total Outstanding Balance				% of Commercial Loan Portfolio
CRE - Retail	$	463,491			8.8	%
Animal Production		375,487			7.1
CRE - Multi-family		325,585			6.2
CRE - Office		298,039			5.6
CRE - 1-4 Family Residential Investment		296,044			5.6
CRE - Industrial / Warehouse		251,100			4.8
Hotels & Motels (Accommodation)		191,217			3.6
Education		173,353			3.3
Specialty Trade Contractors		171,939			3.3
Nursing and Residential Care Facilities		148,501			2.8
Motor Vehicle and Parts Dealers		129,299			2.5
Homebuilding (tract developers, remodelers)		125,566			2.4
Merchant Wholesalers, Durable Goods		122,533			2.3
Repair and Maintenance		119,142			2.3
CRE - Mixed-Use - Residential		113,672			2.2
Crop Production		103,513			2.0
Wood Product Manufacturing		88,586			1.7
Rental and Leasing Services		82,505			1.6
Real Estate Lenders, Secondary Market Financing		82,330			1.6
Religious Organizations, Advocacy Groups		74,855			1.4
Personal and Laundry Services		72,545			1.4
Fabricated Metal Product Manufacturing		72,314			1.4
CRE - Mixed-Use - Commercial		71,697			1.4
Merchant Wholesalers, Nondurable Goods		71,029			1.3
Amusement, Gambling, and Recreation Industries		69,393			1.3
Private Equity & Special Purpose Entities (except 52592)		69,086			1.3
Food Services and Drinking Places		67,600			1.3
Administrative and Support Services		67,470			1.3
Miniwarehouse / Self-Storage		65,136			1.2
Food Manufacturing		58,430			1.1
Truck Transportation		54,629			1.0
Industries with >$50 million in outstandings	$	4,476,086			84.9	%
Industries with <$50 million in outstandings	$	798,992			15.1	%
Total Commercial Loans	$	5,275,078			100.0	%
Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		952,665
Real Estate-Home Equity Secured for Personal Purpose		179,150
Loans to Individuals		26,430
Lease Financings		251,514
Total - Consumer Loans and Lease Financings	$	1,409,759
Total	$	6,684,837

Univest Financial Corporation
Non-GAAP Reconciliation
June 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 six months ended,
(Dollars in thousands)	06/30/24				03/31/24				12/31/23				09/30/23				06/30/23				06/30/24				06/30/23
Restructuring charges (a)	$	-			$	-			$	189			$	-			$	1,330			$	-			$	1,330
Tax effect of restructuring charges		-				-				(40	)			-				(279	)			-				(279	)
Restructuring charges, net of tax	$	-			$	-			$	149			$	-			$	1,051			$	-			$	1,051
Net income	$	18,107			$	20,305			$	16,254			$	17,016			$	16,800			$	38,412			$	37,834
Amortization of intangibles, net of tax		149				148				167				174				200				296				400
Net income before amortization of intangibles	$	18,256			$	20,453			$	16,421			$	17,190			$	17,000			$	38,708			$	38,234
Shareholders' equity	$	854,137			$	843,669			$	839,208			$	807,198			$	805,222			$	854,137			$	805,222
Goodwill		(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Other intangibles (b)		(2,157	)			(2,273	)			(2,405	)			(2,558	)			(2,767	)			(2,157	)			(2,767	)
Tangible common equity	$	676,470			$	665,886			$	661,293			$	629,130			$	626,945			$	676,470			$	626,945
Total assets	$	7,855,446			$	7,746,568			$	7,780,628			$	7,828,066			$	7,600,150			$	7,855,446			$	7,600,150
Goodwill		(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Other intangibles (b)		(2,157	)			(2,273	)			(2,405	)			(2,558	)			(2,767	)			(2,157	)			(2,767	)
Tangible assets	$	7,677,779			$	7,568,785			$	7,602,713			$	7,649,998			$	7,421,873			$	7,677,779			$	7,421,873
Average shareholders' equity	$	844,572			$	842,546			$	814,941			$	811,515			$	806,709			$	843,559			$	797,980
Average goodwill		(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Average other intangibles (b)		(2,222	)			(2,318	)			(2,477	)			(2,680	)			(2,924	)			(2,271	)			(3,030	)
Average tangible common equity	$	666,840			$	664,718			$	636,954			$	633,325			$	628,275			$	665,778			$	619,440
(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