Univest Financial Corporation Reports First Quarter Results

SOUDERTON, Pa., April 23, 2025 (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 March 31, 2025 of $22.4 million, or $0.77 diluted earnings per share, compared to net income of $20.3 million, or $0.69 diluted earnings per share, for the quarter ended March 31, 2024. DividendOn April 23, 2025, Univest declared a quarterly cash dividend of $0.22 per share to be paid on May 21, 2025 to shareholders of record as of May 7, 2025, which represents an increase of $0.01 per share, or 4.8%. Univest had last increased its dividend by $0.01 per share in May 2022. One-Time ItemsThe financial results for the quarter included tax-free bank owned life insurance ("BOLI") death benefits claims of $1.0 million, which represented $0.04 diluted earnings per share. LoansGross loans and leases increased $6.5 million, or 0.1% (0.4% annualized), from December 31, 2024. Gross loans and leases increased $254.0 million, or 3.9%, from March 31, 2024, primarily due to increases in commercial, commercial real estate, residential mortgage loans and home equity loans, partially offset by decreases in construction loans and lease financings. Deposits, Borrowings and LiquidityTotal deposits decreased $100.8 million, or 1.5% (6.0% annualized), from December 31, 2024, primarily due to seasonal declines in public funds deposits and decreases in commercial and consumer deposits, partially offset by an increase in brokered deposits. Total deposits increased $253.1 million, or 4.0%, from March 31, 2024, due to increases in consumer, commercial, and public funds deposits, partially offset by a decrease in brokered deposits. Noninterest-bearing deposits totaled $1.4 billion and represented 21.5% of total deposits at March 31, 2025, compared to $1.4 billion representing 20.9% of total deposits at December 31, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at March 31, 2025 and December 31, 2024. This represented 21.9% of total deposits at March 31, 2025, compared to 22.0% at December 31, 2024. Total borrowings decreased $57.0 million, or 14.8%, from December 31, 2024, primarily due to maturities of long-term FHLB advances totaling $50.0 million. These borrowings were replaced with brokered deposits during the quarter. As of March 31, 2025, the Corporation and its subsidiaries reported cash and cash equivalents totaling $169.1 million and had committed borrowing capacity of $3.7 billion, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at March 31, 2025. 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 $56.8 million for the first quarter of 2025 increased $5.3 million, or 10.3%, from the first quarter of 2024 and $1.3 million, or 2.4%, from the fourth quarter of 2024. The increase in net interest income for the first quarter of 2025 compared to the first quarter of 2024 was driven by higher average balances of loans and increased yields on interest earning assets, as well as a reduction in our overall cost of funds. The increase in net interest income for the first quarter of 2025 compared to the fourth quarter of 2024 was primarily driven by lower average balances of interest-bearing liabilities and related costs outpacing decreases in income from interest-earning deposits with other banks. Net interest margin, on a tax-equivalent basis, was 3.09% for the first quarter of 2025, compared to 2.88% for the first and fourth quarters of 2024. Excess liquidity reduced net interest margin by approximately three basis points for the quarter ended March 31, 2025 compared to approximately 14 basis points for the quarter ended December 31, 2024 and approximately three basis points for the quarter ended March 31, 2024. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.12% for the quarter ended March 31, 2025 compared to 3.02% for the quarter ended December 31, 2024 and 2.91% for the quarter ended March 31, 2024. Noninterest IncomeNoninterest income for the quarter ended March 31, 2025 was $22.4 million, a decrease of $3.2 million, or 12.4%, from the comparable period in the prior year. Other service fee income decreased $3.7 million, or 57.8%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to a $3.4 million net gain from the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024. Additionally, net servicing fees on sold mortgage loans decreased by $177 thousand, primarily attributable to the previously mentioned sale of mortgage servicing rights. Other income decreased $780 thousand, or 76.1%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to decreases in other real estate owned income, fees on risk participation agreements for interest rate swaps and gains on sale of Small Business Administration loans. Net gain on mortgage banking activities decreased $292 thousand, or 31.1%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to decreased salable volume. Insurance commission and fee income decreased $312 thousand, or 4.3%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to a decrease in contingent income of $700 thousand, which was $1.6 million and $2.3 million, for the three months ended March 31, 2025 and 2024, respectively. Contingent income is largely recognized in the first quarter of the year. The decrease was partially offset by an increase of $404 thousand in revenue for commercial lines. BOLI income increased $1.1 million, or 132.7%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to the previously discussed death benefits claims. Investment advisory commission and fee income increased $419 thousand, or 8.1%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to new customer relationships and appreciation of assets under management and supervision. Service charges on deposit accounts increased $323 thousand, or 17.3%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to an increase in treasury management income. Noninterest ExpenseNoninterest expense for the quarter ended March 31, 2025 was $49.3 million, a decrease of $746 thousand, or 1.5%, from the comparable period in the prior year. Salaries, benefits and commissions decreased $512 thousand, or 1.6%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to an increase in compensation capitalized and a decrease in medical claims expense, partially offset by an increase in incentive compensation due to increased profitability. Tax Provision The effective income tax rate was 18.7% and 20.5% for the quarters ended March 31, 2025 and March 31, 2024, respectively. The discrete tax effect of vested equity compensation awards favorably impacted the first quarter of 2025 by 71 basis points and unfavorably impacted the first quarter of 2024 by 74 basis points. Additionally, the effective tax rate for the three months ended March 31, 2025 was favorably impacted by 76 basis points from the proceeds of BOLI death benefits. Excluding the discrete impact of vested equity compensation awards and BOLI death benefits, the effective tax rate was 20.2% for the three months ended March 31, 2025 compared to 19.8% for the three months ended March 31, 2024. Asset Quality and Provision for Credit LossesNonperforming assets totaled $34.0 million at March 31, 2025, $33.2 million at December 31, 2024, and $40.0 million at March 31, 2024. Net loan and lease charge-offs were $1.7 million for the three months ended March 31, 2025 compared to $767 thousand and $1.4 million for the three months ended December 31, 2024 and March 31, 2024, respectively. The provision for credit losses was $2.3 million for the three months ended March 31, 2025 compared to $2.4 million and $1.4 million for the three months ended December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at March 31, 2025 and December 31, 2024, and 1.30% at March 31, 2024. Share RepurchasesDuring the quarter ended March 31, 2025, the Corporation repurchased 221,760 shares of common stock at an average price of $29.22 per share. Including brokerage fees and excise tax, the average price per share was $29.54. As of March 31, 2025, 1,178,394 shares are available for repurchase under the Share Repurchase Plan. Conference CallUnivest will host a conference call to discuss first quarter 2025 results on Thursday, April 24, 2025 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=175e015e&confId=80607. The general public can access the call by dialing 1-833-470-1428; using Access Code 021974. A replay of the conference call will be available through May 1, 2025 by dialing 1-866-813-9403; using Access Code 718470. About Univest Financial CorporationUnivest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.0 billion in assets and $5.2 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2025. 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) fluctuations in real estate values and both residential and commercial real estate market conditions; (5) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (6) our ability to access cost-effective funding; (7) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (8) changes in the economic assumptions or methodology used to calculate our allowance for credit losses; (9) legislative, regulatory, accounting or tax changes; (10) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (11) the imposition of tariffs or other domestic or international governmental policies; (12) the failure to maintain current technologies and to successfully implement future information technology enhancements; (13) technological issues that may adversely affect our operations or those of our customers; (14) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (15) changes in the securities markets; (16) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (17) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (18) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission. (UVSP - ER) Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)March 31, 2025(Dollars in thousands) Balance Sheet (Period End)03/31/25 12/31/24 09/30/24 06/30/24 03/31/24ASSETS Cash and due from banks$73,319 $75,998 $78,346 $66,808 $49,318 Interest-earning deposits with other banks 95,815 252,846 426,354 124,103 152,288 Cash and cash equivalents 169,134 328,844 504,700 190,911 201,606 Investment securities held-to-maturity 130,889 134,111 137,681 140,112 143,474 Investment securities available for sale, net of allowance for credit losses 364,503 357,361 354,100 342,776 350,819 Investments in equity securities 1,667 2,506 2,406 2,995 3,355 Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost 35,732 38,980 40,235 37,438 37,394 Loans held for sale 13,150 16,653 17,131 28,176 13,188 Loans and leases held for investment 6,833,037 6,826,583 6,730,734 6,684,837 6,579,086 Less: Allowance for credit losses, loans and leases (87,790) (87,091) (86,041) (85,745) (85,632)Net loans and leases held for investment 6,745,247 6,739,492 6,644,693 6,599,092 6,493,454 Premises and equipment, net 47,175 46,671 47,411 48,174 48,739 Operating lease right-of-use assets 27,182 28,531 29,260 29,985 30,702 Goodwill 175,510 175,510 175,510 175,510 175,510 Other intangibles, net of accumulated amortization 8,061 8,309 7,158 7,701 7,473 Bank owned life insurance 139,482 139,351 138,744 137,823 137,896 Accrued interest and other assets 117,435 112,098 106,708 114,753 102,958 Total assets$7,975,167 $8,128,417 $8,205,737 $7,855,446 $7,746,568 LIABILITIES Noninterest-bearing deposits$1,433,995 $1,414,635 $1,323,953 $1,397,308 $1,401,806 Interest-bearing deposits: 5,224,503 5,344,624 5,530,195 5,098,014 5,003,552 Total deposits 6,658,498 6,759,259 6,854,148 6,495,322 6,405,358 Short-term borrowings 4,031 11,181 8,256 11,781 4,816 Long-term debt 175,000 225,000 225,000 250,000 250,000 Subordinated notes 149,386 149,261 149,136 149,011 148,886 Operating lease liabilities 30,062 31,485 32,246 33,015 33,744 Accrued expenses and other liabilities 54,718 64,930 59,880 62,180 60,095 Total liabilities 7,071,695 7,241,116 7,328,666 7,001,309 6,902,899 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 300,634 302,829 301,262 300,166 298,914 Retained earnings 541,776 525,780 512,938 500,482 488,790 Accumulated other comprehensive loss, net of tax benefit (37,922) (43,992) (41,623) (54,124) (54,740)Treasury stock, at cost (58,800) (55,100) (53,290) (50,171) (47,079)Total shareholders’ equity 903,472 887,301 877,071 854,137 843,669 Total liabilities and shareholders’ equity$7,975,167 $8,128,417 $8,205,737 $7,855,446 $7,746,568 For the three months ended,Balance Sheet (Average)03/31/25 12/31/24 06/30/24 03/31/24 12/31/23Assets$7,981,043 $8,163,347 $8,005,265 $7,721,540 $7,696,575 Investment securities, net of allowance for credit losses 500,078 500,748 493,334 493,140 500,983 Loans and leases, gross 6,856,503 6,758,649 6,730,791 6,640,536 6,577,365 Deposits 6,617,653 6,804,483 6,641,324 6,353,752 6,303,854 Shareholders' equity 896,811 880,237 864,406 844,572 842,546 Univest Financial CorporationConsolidated Summary of Loans by Type and Asset Quality Data (Unaudited)March 31, 2025(Dollars in thousands) Summary of Major Loan and Lease Categories (Period End)03/31/25 12/31/24 09/30/24 06/30/24 03/31/24Commercial, financial and agricultural$1,034,361 $1,037,835 $1,044,043 $1,055,332 $1,014,568 Real estate-commercial 3,546,402 3,530,451 3,442,083 3,373,889 3,283,729 Real estate-construction 281,785 274,483 285,616 313,229 379,995 Real estate-residential secured for business purpose 536,082 536,095 530,674 532,628 524,196 Real estate-residential secured for personal purpose 992,767 994,972 969,562 952,665 922,412 Real estate-home equity secured for personal purpose 189,119 186,836 182,901 179,150 177,446 Loans to individuals 16,930 21,250 26,794 26,430 27,200 Lease financings 235,591 244,661 249,061 251,514 249,540 Total loans and leases held for investment, net of deferred income 6,833,037 6,826,583 6,730,734 6,684,837 6,579,086 Less: Allowance for credit losses, loans and leases (87,790) (87,091) (86,041) (85,745) (85,632)Net loans and leases held for investment$6,745,247 $6,739,492 $6,644,693 $6,599,092 $6,493,454 Asset Quality Data (Period End)03/31/25 12/31/24 09/30/24 06/30/24 03/31/24Nonaccrual loans and leases, including nonaccrual loans held for sale$11,126 $12,667 $15,319 $16,200 $20,363 Accruing loans and leases 90 days or more past due 322 321 310 205 268 Total nonperforming loans and leases 11,448 12,988 15,629 16,405 20,631 Other real estate owned 22,433 20,141 20,915 20,007 19,220 Repossessed assets 79 76 79 149 167 Total nonperforming assets$33,960 $33,205 $36,623 $36,561 $40,018 Nonaccrual loans and leases / Loans and leases held for investment 0.16% 0.19% 0.23% 0.24% 0.31%Nonperforming loans and leases / Loans and leases held for investment 0.17% 0.19% 0.23% 0.25% 0.31%Nonperforming assets / Total assets 0.43% 0.41% 0.45% 0.47% 0.52% Allowance for credit losses, loans and leases$87,790 $87,091 $86,041 $85,745 $85,632 Allowance for credit losses, loans and leases / Loans and leases held for investment 1.28% 1.28% 1.28% 1.28% 1.30%Allowance for credit losses, loans and leases / Nonaccrual loans and leases 789.05% 687.54% 561.66% 529.29% 420.53%Allowance for credit losses, loans and leases / Nonperforming loans and leases 766.86% 670.55% 550.52% 522.68% 415.06% For the three months ended, 03/31/25 12/31/24 09/30/24 06/30/24 03/31/24Net loan and lease charge-offs$1,686 $767 $820 $809 $1,406 Net loan and lease charge-offs (annualized)/Average loans and leases 0.10% 0.05% 0.05% 0.05% 0.09% Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)March 31, 2025(Dollars in thousands, except per share data) For the three months ended,For the period:03/31/25 12/31/24 09/30/24 06/30/24 03/31/24Interest income$103,416 $107,476 $106,438 $99,832 $98,609Interest expense 46,635 52,004 53,234 48,805 47,142Net interest income 56,781 55,472 53,204 51,027 51,467Provision for credit losses 2,311 2,380 1,414 707 1,432Net interest income after provision for credit losses 54,470 53,092 51,790 50,320 50,035Noninterest income: Trust fee income 2,161 2,265 2,110 2,008 2,108Service charges on deposit accounts 2,194 2,192 2,037 1,982 1,871Investment advisory commission and fee income 5,613 5,457 5,319 5,238 5,194Insurance commission and fee income 6,889 4,743 5,238 5,167 7,201Other service fee income 2,707 3,473 1,815 3,044 6,415Bank owned life insurance income 1,959 1,012 921 1,086 842Net gain on sales of investment securities - - 18 - -Net gain on mortgage banking activities 647 1,320 1,296 1,710 939Other income 245 868 1,396 745 1,025Total noninterest income 22,415 21,330 20,150 20,980 25,595Noninterest expense: Salaries, benefits and commissions 30,826 31,518 30,702 30,187 31,338Net occupancy 2,853 2,751 2,723 2,679 2,872Equipment 1,122 1,147 1,107 1,088 1,111Data processing 4,364 4,146 4,154 4,161 4,495Professional fees 1,797 1,669 1,579 1,466 1,688Marketing and advertising 353 552 490 715 416Deposit insurance premiums 1,151 1,102 1,097 1,098 1,135Intangible expenses 130 155 164 188 187Other expense 6,732 7,618 6,536 7,126 6,832Total noninterest expense 49,328 50,658 48,552 48,708 50,074Income before taxes 27,557 23,764 23,388 22,592 25,556Income tax expense 5,162 4,823 4,810 4,485 5,251Net income$22,395 $18,941 $18,578 $18,107 $20,305Net income per share: Basic$0.77 $0.65 $0.64 $0.62 $0.69Diluted$0.77 $0.65 $0.63 $0.62 $0.69Dividends declared per share$0.21 $0.21 $0.21 $0.21 $0.21Weighted average shares outstanding 29,000,567 29,070,039 29,132,948 29,246,977 29,413,999Period end shares outstanding 28,962,648 29,045,877 29,081,108 29,190,640 29,337,919 Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)March 31, 2025 For the three months ended,Profitability Ratios (annualized)03/31/25 12/31/24 09/30/24 06/30/24 03/31/24 Return on average assets 1.14% 0.92% 0.92% 0.94% 1.06%Return on average shareholders' equity 10.13% 8.56% 8.55% 8.62% 9.69%Return on average tangible common equity (1)(3) 12.69% 10.79% 10.84% 11.01% 12.38%Net interest margin (FTE) 3.09% 2.88% 2.82% 2.84% 2.88%Efficiency ratio (2) 61.6% 65.5% 65.7% 67.1% 64.6% Capitalization Ratios Dividends declared to net income 27.2% 32.2% 33.0% 33.9% 30.5%Shareholders' equity to assets (Period End) 11.33% 10.92% 10.69% 10.87% 10.89%Tangible common equity to tangible assets (1) 9.31% 8.92% 8.71% 8.81% 8.80%Common equity book value per share$31.19 $30.55 $30.16 $29.26 $28.76 Tangible common equity book value per share (1)$25.06 $24.43 $24.05 $23.17 $22.70 Regulatory Capital Ratios (Period End) Tier 1 leverage ratio 9.80% 9.51% 9.53% 9.74% 9.65%Common equity tier 1 risk-based capital ratio 10.97% 10.85% 10.88% 10.72% 10.71%Tier 1 risk-based capital ratio 10.97% 10.85% 10.88% 10.72% 10.71%Total risk-based capital ratio 14.35% 14.19% 14.27% 14.09% 14.11% (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 BasisMarch 31, 2025 December 31, 2024 AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets: Interest-earning deposits with other banks$119,997 $1,3604.60%$402,753 $4,8524.79%Obligations of state and political subdivisions* 879 41.85 1,290 72.16 Other debt and equity securities 499,199 4,0193.27 499,458 3,8153.04 Federal Home Loan Bank, Federal Reserve Bank and other stock 37,561 6877.42 39,407 7467.53 Total interest-earning deposits, investments and other interest-earning assets 657,636 6,0703.74 942,908 9,4203.97 Commercial, financial, and agricultural loans 990,860 17,0206.97 972,840 17,4927.15 Real estate—commercial and construction loans 3,704,232 52,6765.77 3,631,142 53,1635.82 Real estate—residential loans 1,729,146 21,5425.05 1,708,795 21,2494.95 Loans to individuals 19,438 3938.20 25,803 5228.05 Tax-exempt loans and leases 230,133 2,8615.04 233,036 2,6524.53 Lease financings 182,694 3,2407.19 187,033 3,2967.01 Gross loans and leases 6,856,503 97,7325.78 6,758,649 98,3745.79 Total interest-earning assets 7,514,139 103,8025.60 7,701,557 107,7945.57 Cash and due from banks 56,690 56,989 Allowance for credit losses, loans and leases (87,822) (86,812) Premises and equipment, net 46,852 47,155 Operating lease right-of-use assets 27,761 28,891 Other assets 423,423 415,567 Total assets$7,981,043 $8,163,347 Liabilities: Interest-bearing checking deposits$1,222,012 $7,0752.35%$1,275,348 $8,5042.65%Money market savings 1,840,194 18,0353.97 1,954,246 20,6534.20 Regular savings 702,543 7630.44 705,222 8170.46 Time deposits 1,476,495 16,1064.42 1,499,998 17,2474.57 Total time and interest-bearing deposits 5,241,244 41,9793.25 5,434,814 47,2213.46 Short-term borrowings 6,909 140.82 7,102 10.06 Long-term debt 217,500 2,3614.40 225,000 2,5014.42 Subordinated notes 149,319 2,2816.20 149,194 2,2816.08 Total borrowings 373,728 4,6565.05 381,296 4,7834.99 Total interest-bearing liabilities 5,614,972 46,6353.37 5,816,110 52,0043.56 Noninterest-bearing deposits 1,376,409 1,369,669 Operating lease liabilities 30,675 31,864 Accrued expenses and other liabilities 62,176 65,467 Total liabilities 7,084,232 7,283,110 Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,991,381 2.71 7,185,779 2.88 Shareholders' Equity: Common stock 157,784 157,784 Additional paid-in capital 302,653 301,895 Retained earnings and other equity 436,374 420,558 Total shareholders' equity 896,811 880,237 Total liabilities and shareholders' equity$7,981,043 $8,163,347 Net interest income $57,167 $55,790 Net interest spread 2.23 2.01 Effect of net interest-free funding sources 0.86 0.87 Net interest margin 3.09% 2.88%Ratio of average interest-earning assets to average interest-bearing liabilities 133.82% 132.42% * 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 $554 thousand and $676 thousand for the three months ended March 31,2025 and December 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 March 31, 2025 and December 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 March 31, Tax Equivalent Basis2025 2024 AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets: Interest-earning deposits with other banks$119,997 $1,3604.60%$120,845 $1,6095.36%Obligations of state and political subdivisions* 879 41.85 1,951 122.47 Other debt and equity securities 499,199 4,0193.27 499,032 3,6472.94 Federal Home Loan Bank, Federal Reserve Bank and other stock 37,561 6877.42 39,115 7247.44 Total interest-earning deposits, investments and other interest-earning assets 657,636 6,0703.74 660,943 5,9923.65 Commercial, financial, and agricultural loans 990,860 17,0206.97 934,649 16,5237.11 Real estate—commercial and construction loans 3,704,232 52,6765.77 3,575,142 50,6415.70 Real estate—residential loans 1,729,146 21,5425.05 1,618,188 19,5554.86 Loans to individuals 19,438 3938.20 27,315 5488.07 Tax-exempt loans and leases 230,133 2,8615.04 232,380 2,4644.26 Lease financings 182,694 3,2407.19 189,691 3,1696.72 Gross loans and leases 6,856,503 97,7325.78 6,577,365 92,9005.68 Total interest-earning assets 7,514,139 103,8025.60 7,238,308 98,8925.49 Cash and due from banks 56,690 54,870 Allowance for credit losses, loans and leases (87,822) (86,495) Premises and equipment, net 46,852 50,592 Operating lease right-of-use assets 27,761 31,121 Other assets 423,423 408,179 Total assets$7,981,043 $7,696,575 Liabilities: Interest-bearing checking deposits$1,222,012 $7,0752.35%$1,180,696 $8,2182.80%Money market savings 1,840,194 18,0353.97 1,705,291 19,2204.53 Regular savings 702,543 7630.44 769,926 9050.47 Time deposits 1,476,495 16,1064.42 1,238,878 13,6304.42 Total time and interest-bearing deposits 5,241,244 41,9793.25 4,894,791 41,9733.45 Short-term borrowings 6,909 140.82 10,127 50.20 Long-term debt 217,500 2,3614.40 292,486 2,8833.96 Subordinated notes 149,319 2,2816.20 148,818 2,2816.16 Total borrowings 373,728 4,6565.05 451,431 5,1694.61 Total interest-bearing liabilities 5,614,972 46,6353.37 5,346,222 47,1423.55 Noninterest-bearing deposits 1,376,409 1,409,063 Operating lease liabilities 30,675 34,166 Accrued expenses and other liabilities 62,176 64,578 Total liabilities 7,084,232 6,854,029 Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,991,381 2.71 6,755,285 2.81 Shareholders' Equity: Common stock 157,784 157,784 Additional paid-in capital 302,653 300,679 Retained earnings and other equity 436,374 384,083 Total shareholders' equity 896,811 842,546 Total liabilities and shareholders' equity$7,981,043 $7,696,575 Net interest income $57,167 $51,750 Net interest spread 2.23 1.94 Effect of net interest-free funding sources 0.86 0.94 Net interest margin 3.09% 2.88%Ratio of average interest-earning assets to average interest-bearing liabilities 133.82% 135.39% * 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 $554 thousand and $453 thousand for the three months endedMarch 31, 2025 and 2024, respectively.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been includedin the average loan balances. Tax-equivalent amounts for the three months ended March 31, 2025 and 2024 have beencalculated using the Corporation’s federal applicable rate of 21.0%. Univest Financial CorporationLoan Portfolio Overview (Unaudited)March 31, 2025 (Dollars in thousands) Industry DescriptionTotal Outstanding Balance % of Commercial Loan Portfolio CRE - Retail$469,397 8.7%Animal Production 394,279 7.3 CRE - Multi-family 360,743 6.7 CRE - Office 299,751 5.6 CRE - 1-4 Family Residential Investment 278,386 5.2 CRE - Industrial / Warehouse 253,136 4.7 Hotels & Motels (Accommodation) 207,710 3.8 Specialty Trade Contractors 189,427 3.5 Nursing and Residential Care Facilities 177,053 3.3 Motor Vehicle and Parts Dealers 146,911 2.7 Merchant Wholesalers, Durable Goods 146,037 2.7 Homebuilding (tract developers, remodelers) 140,612 2.6 Repair and Maintenance 134,183 2.5 Crop Production 110,882 2.1 CRE - Mixed-Use - Residential 109,872 2.0 Wood Product Manufacturing 101,606 1.9 Professional, Scientific, and Technical Services 95,730 1.8 Food Services and Drinking Places 86,916 1.6 Administrative and Support Services 83,145 1.5 Merchant Wholesalers, Nondurable Goods 83,088 1.5 Fabricated Metal Product Manufacturing 78,181 1.4 Real Estate Lenders, Secondary Market Financing 75,461 1.4 Religious Organizations, Advocacy Groups 65,857 1.2 CRE - Mixed-Use - Commercial 64,683 1.2 Miniwarehouse / Self-Storage 64,553 1.2 Personal and Laundry Services 64,508 1.2 Education 62,362 1.2 Amusement, Gambling, and Recreation Industries 61,437 1.1 Food Manufacturing 56,400 1.0 Industries with >$50 million in outstandings$4,462,306 82.7%Industries with <$50 million in outstandings$936,324 17.3%Total Commercial Loans$5,398,630 100.0% Consumer Loans and Lease FinancingsTotal Outstanding Balance Real Estate-Residential Secured for Personal Purpose 992,767 Real Estate-Home Equity Secured for Personal Purpose 189,119 Loans to Individuals 16,930 Lease Financings 235,591 Total - Consumer Loans and Lease Financings$1,434,407 Total$6,833,037 Univest Financial CorporationNon-GAAP ReconciliationMarch 31, 2025 Non-GAAP to GAAP ReconciliationManagement uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release. As of or for the three months ended,(Dollars in thousands)03/31/25 12/31/24 09/30/24 06/30/24 03/31/24Net income$22,395 $18,941 $18,578 $18,107 $20,305 Amortization of intangibles, net of tax 103 122 130 149 148 Net income before amortization of intangibles$22,498 $19,063 $18,708 $18,256 $20,453 Shareholders' equity$903,472 $887,301 $877,071 $854,137 $843,669 Goodwill (175,510) (175,510) (175,510) (175,510) (175,510)Other intangibles (a) (2,104) (2,263) (2,147) (2,157) (2,273)Tangible common equity$725,858 $709,528 $699,414 $676,470 $665,886 Total assets$7,975,167 $8,128,417 $8,205,737 $7,855,446 $7,746,568 Goodwill (175,510) (175,510) (175,510) (175,510) (175,510)Other intangibles (a) (2,104) (2,263) (2,147) (2,157) (2,273)Tangible assets$7,797,553 $7,950,644 $8,028,080 $7,677,779 $7,568,785 Average shareholders' equity$896,811 $880,237 $864,406 $844,572 $842,546 Average goodwill (175,510) (175,510) (175,510) (175,510) (175,510)Average other intangibles (a) (2,162) (2,146) (2,086) (2,222) (2,318)Average tangible common equity$719,139 $702,581 $686,810 $666,840 $664,718 (a) Amount does not include mortgage servicing rights

Univest Financial Corporation Reports First Quarter Results

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