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Univest Financial Corporation Reports Fourth Quarter 2024 Results

1. Univest's Q4 2024 net income rose to $18.9 million from $16.3 million. 2. Gross loans increased by $259.4 million year-over-year, boosted by real estate loans. 3. Deposits increased by $383.5 million year-over-year, reflecting depositor confidence. 4. Net interest margin improved to 2.88%, indicating better profitability on loans. 5. Investments and mortgage banking activities showed strong performance, contributing to noninterest income.

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Why Bullish?

Strong earnings and growing loan/deposit volumes typically indicate financial health and growth, boosting investor confidence as seen with other banks like JPMorgan during similar reports.

How important is it?

The article provides crucial insights into Univest's financial health, directly impacting investor decisions.

Why Short Term?

Positive quarterly results often lead to immediate investor sentiment shifts and price adjustments, similar to recent trends observed in banking sector stocks post-earnings.

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SOUDERTON, Pa., Jan. 22, 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 December 31, 2024 was $18.9 million, or $0.65 diluted earnings per share, compared to net income of $16.3 million, or $0.55 diluted earnings per share, for the quarter ended December 31, 2023. LoansGross loans and leases increased $95.8 million, or 1.4% (5.6% annualized), from September 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 $259.4 million, or 3.9%, 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 decreased $94.9 million, or 1.4% (5.6% annualized), from September 30, 2024, primarily due to decreases in public funds and brokered deposits, partially offset by increases in commercial and consumer deposits. Total deposits increased $383.5 million, or 6.0%, from December 31, 2023, due to increases in consumer, commercial, brokered, and public funds deposits. Noninterest-bearing deposits totaled $1.4 billion and represented 20.9% of total deposits at December 31, 2024, compared to $1.3 billion representing 19.3% of total deposits at September 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at December 31, 2024 compared to $1.4 billion at September 30, 2024. This represented 22.0% of total deposits at December 31, 2024, compared to 20.3% at September 30, 2024. As of December 31, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $328.8 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.7 billion at December 31, 2024, of which $2.1 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at December 31, 2024. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will. Net Interest Income and MarginNet interest income of $55.5 million for the fourth quarter of 2024 increased $2.7 million, or 5.1%, from the fourth quarter of 2023 and $2.3 million, or 4.3%, from the third quarter of 2024. The increase in net interest income for the three months ended December 31, 2024 compared to the same period in the prior year was due to higher average balances of interest-earning assets and increased yields on loans and leases, partially offset by higher average balances in interest-bearing liabilities and related costs. The increase in net interest income for the three months ended December 31, 2024 compared to the three months ended September 30, 2024 was due to higher average balances of interest-earning deposits with other banks and a reduction in the cost of interest-bearing liabilities, partially offset by an increase in the average balance of interest-bearing liabilities. Net interest margin, on a tax-equivalent basis, was 2.88% for the fourth quarter of 2024, compared to 2.82% for the third quarter of 2024 and 2.84% for the fourth quarter of 2023. Excess liquidity reduced net interest margin by approximately 14 basis points for the quarter ended December 31, 2024 compared to approximately nine basis points for the quarter ended September 30, 2024 and approximately ten basis points for the quarter ended December 31, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.02% for the quarter ended December 31, 2024 compared to 2.91% for the quarter ended September 30, 2024 and 2.94% for the quarter ended December 31, 2023. Noninterest IncomeNoninterest income for the quarter ended December 31, 2024 was $21.3 million, an increase of $2.7 million, or 14.6%, from the comparable period in the prior year. Investment advisory commission and fee income increased $896 thousand, or 19.6%, for the quarter ended December 31, 2024 compared to the comparable period in the prior year, primarily due to increased assets under management and supervision driven by new business and market appreciation. Net gain on mortgage banking activities increased $511 thousand, or 63.2%, for the quarter ended December 31, 2024 compared to the comparable period in the prior year, primarily due to increased salable volume and favorable margins. Other service fee income increased $506 thousand, or 17.1%, for the quarter ended December 31, 2024 compared to the comparable period in the prior year, primarily due to the reversal of a $785 thousand valuation allowance on mortgage servicing rights that was initially recorded in the third quarter of 2024. The reversal was driven by a decrease in prepayment speed assumptions as a result of the increase in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $269 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 December 31, 2024 was $50.7 million, an increase of $1.6 million, or 3.3%, from the comparable period in the prior year. Salaries, benefits and commissions increased $2.2 million, or 7.5%, for the quarter ended December 31, 2024 compared to the comparable period in the prior year, primarily due to an increase in incentive compensation due to increased profitability. Deposit insurance premiums decreased $248 thousand, or 18.4%, for the quarter ended December 31, 2024 compared to the comparable period in the prior year, driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate. Data processing decreased $298 thousand, or 6.7%, for the quarter ended December 31, 2024 compared to the comparable period in the prior year, primarily due to reduced costs for various long-term service agreements. Tax Provision The effective income tax rate was 20.3% for the quarters ended December 31, 2024 and December 31, 2023. The effective tax rates for the three months ended December 31, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. Asset Quality and Provision for Credit LossesNonperforming assets totaled $33.2 million at December 31, 2024, $36.6 million at September 30, 2024, and $40.1 million at December 31, 2023. During the quarter, two nonaccrual modified construction loans to one borrower totaling $2.2 million were paid-off. Net loan and lease charge-offs were $767 thousand for the three months ended December 31, 2024 compared to $820 thousand and $1.1 million for the three months ended September 30, 2024 and December 31, 2023, respectively. The provision for credit losses was $2.4 million for the three months ended December 31, 2024 compared to $1.4 million and $1.9 million for the three months ended September 30, 2024 and December 31, 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 December 31, 2024, September 30, 2024 and December 31, 2023. Dividend and Share RepurchasesOn January 22, 2025, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 19, 2025 to shareholders of record as of February 5, 2025. During the quarter ended December 31, 2024, the Corporation repurchased 139,492 shares of common stock at an average price of $29.64 per share. Including brokerage fees and excise tax, the average price per share was $29.97. During the year ended December 31, 2024, the Corporation repurchased 802,535 shares of common stock at an average price of $23.26 per share. Including brokerage fees and excise tax, the average price per share was $23.52. As of December 31, 2024, 1,400,154 shares are available for repurchase under the Share Repurchase Plan. Conference CallUnivest will host a conference call to discuss fourth quarter 2024 results on Thursday, January 23, 2025 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=36ba59ff&confId=76000. The general public can access the call by dialing 1-833-470-1428; using Access Code 072687. A replay of the conference call will be available through March 20, 2025 by dialing 1-866-813-9403; using Access Code 251906. About Univest Financial CorporationUnivest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.1 billion in assets and $5.2 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net. This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition 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) changes in the economic assumptions or methodology used to calculate our allowance for credit losses; (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) the imposition of tariffs or other domestic or international governmental policies impacting the value of the products of our borrowers; (11) technological issues that may adversely affect our operations or those of our customers; (12) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (13) changes in the securities markets; (14) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (15) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (16) 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)December 31, 2024(Dollars in thousands)                             Balance Sheet (Period End) 12/31/24 09/30/24 06/30/24 03/31/24 12/31/23    ASSETS              Cash and due from banks $75,998  $78,346  $66,808  $49,318  $72,815     Interest-earning deposits with other banks  252,846   426,354   124,103   152,288   176,984     Cash and cash equivalents  328,844   504,700   190,911   201,606   249,799     Investment securities held-to-maturity  134,111   137,681   140,112   143,474   145,777     Investment securities available for sale, net of allowance for credit losses  357,361   354,100   342,776   350,819   351,553     Investments in equity securities  2,506   2,406   2,995   3,355   3,293     Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost  38,980   40,235   37,438   37,394   40,499     Loans held for sale  16,653   17,131   28,176   13,188   11,637     Loans and leases held for investment  6,826,583   6,730,734   6,684,837   6,579,086   6,567,214     Less: Allowance for credit losses, loans and leases  (87,091)  (86,041)  (85,745)  (85,632)  (85,387)    Net loans and leases held for investment  6,739,492   6,644,693   6,599,092   6,493,454   6,481,827     Premises and equipment, net  46,671   47,411   48,174   48,739   51,441     Operating lease right-of-use assets  28,531   29,260   29,985   30,702   31,795     Goodwill  175,510   175,510   175,510   175,510   175,510     Other intangibles, net of accumulated amortization  8,309   7,158   7,701   7,473   10,950     Bank owned life insurance  139,351   138,744   137,823   137,896   131,344     Accrued interest and other assets  112,098   106,708   114,753   102,958   95,203     Total assets $8,128,417  $8,205,737  $7,855,446  $7,746,568  $7,780,628                    LIABILITIES              Noninterest-bearing deposits $1,414,635  $1,323,953  $1,397,308  $1,401,806  $1,468,320     Interest-bearing deposits:  5,344,624   5,530,195   5,098,014   5,003,552   4,907,461     Total deposits  6,759,259   6,854,148   6,495,322   6,405,358   6,375,781     Short-term borrowings  11,181   8,256   11,781   4,816   6,306     Long-term debt  225,000   225,000   250,000   250,000   310,000     Subordinated notes  149,261   149,136   149,011   148,886   148,761     Operating lease liabilities  31,485   32,246   33,015   33,744   34,851     Accrued expenses and other liabilities  64,930   59,880   62,180   60,095   65,721     Total liabilities  7,241,116   7,328,666   7,001,309   6,902,899   6,941,420                    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  302,829   301,262   300,166   298,914   301,066     Retained earnings  525,780   512,938   500,482   488,790   474,691     Accumulated other comprehensive loss, net of tax benefit  (43,992)  (41,623)  (54,124)  (54,740)  (50,646)    Treasury stock, at cost  (55,100)  (53,290)  (50,171)  (47,079)  (43,687)    Total shareholders’ equity  887,301   877,071   854,137   843,669   839,208     Total liabilities and shareholders’ equity $8,128,417  $8,205,737  $7,855,446  $7,746,568  $7,780,628                                     For the three months ended, For the twelve months ended,Balance Sheet (Average) 12/31/24 09/30/24 06/30/24 03/31/24 12/31/23 12/31/24 12/31/23Assets $8,163,347  $8,005,265  $7,721,540  $7,696,575  $7,865,634  $7,897,707 $7,557,058Investment securities, net of allowance for credit losses  500,748   493,334   493,140   500,983   489,587   497,051  507,625Loans and leases, gross  6,758,649   6,730,791   6,640,536   6,577,365   6,594,233   6,677,206  6,418,664Deposits  6,804,483   6,641,324   6,353,752   6,303,854   6,470,141   6,526,929  6,095,058Shareholders' equity  880,237   864,406   844,572   842,546   814,941   858,019  805,667                 Univest Financial CorporationConsolidated Summary of Loans by Type and Asset Quality Data (Unaudited)December 31, 2024(Dollars in thousands)                             Summary of Major Loan and Lease Categories (Period End) 12/31/24 09/30/24 06/30/24 03/31/24 12/31/23    Commercial, financial and agricultural $1,037,835  $1,044,043  $1,055,332  $1,014,568  $989,723     Real estate-commercial  3,530,451   3,442,083   3,373,889   3,283,729   3,302,798     Real estate-construction  274,483   285,616   313,229   379,995   394,462     Real estate-residential secured for business purpose  536,095   530,674   532,628   524,196   517,002     Real estate-residential secured for personal purpose  994,972   969,562   952,665   922,412   909,015     Real estate-home equity secured for personal purpose  186,836   182,901   179,150   177,446   179,282     Loans to individuals  21,250   26,794   26,430   27,200   27,749     Lease financings  244,661   249,061   251,514   249,540   247,183     Total loans and leases held for investment, net of deferred income  6,826,583   6,730,734   6,684,837   6,579,086   6,567,214     Less: Allowance for credit losses, loans and leases  (87,091)  (86,041)  (85,745)  (85,632)  (85,387)    Net loans and leases held for investment $6,739,492  $6,644,693  $6,599,092  $6,493,454  $6,481,827                                   Asset Quality Data (Period End)  12/31/24 09/30/24 06/30/24 03/31/24 12/31/23    Nonaccrual loans and leases, including nonaccrual loans held for sale $12,667  $15,319  $16,200  $20,363  $20,527     Accruing loans and leases 90 days or more past due  321   310   205   268   534     Total nonperforming loans and leases  12,988   15,629   16,405   20,631   21,061     Other real estate owned  20,141   20,915   20,007   19,220   19,032     Repossessed assets  76   79   149   167   -     Total nonperforming assets $33,205  $36,623  $36,561  $40,018  $40,093     Nonaccrual loans and leases / Loans and leases held for investment  0.19%  0.23%  0.24%  0.31%  0.31%    Nonperforming loans and leases / Loans and leases held for investment  0.19%  0.23%  0.25%  0.31%  0.32%    Nonperforming assets / Total assets  0.41%  0.45%  0.47%  0.52%  0.52%                   Allowance for credit losses, loans and leases $87,091  $86,041  $85,745  $85,632  $85,387     Allowance for credit losses, loans and leases / Loans and leases held for investment  1.28%  1.28%  1.28%  1.30%  1.30%    Allowance for credit losses, loans and leases / Nonaccrual loans and leases  687.54%  561.66%  529.29%  420.53%  415.97%    Allowance for credit losses, loans and leases / Nonperforming loans and leases  670.55%  550.52%  522.68%  415.06%  405.43%                                    For the three months ended, For the twelve months ended,  12/31/24 09/30/24 06/30/24 03/31/24 12/31/23 12/31/24 12/31/23Net loan and lease charge-offs $767  $820  $809  $1,406  $1,074  $3,802  $5,397 Net loan and lease charge-offs (annualized)/Average loans and leases  0.05%  0.05%  0.05%  0.09%  0.06%  0.06%  0.08%                 Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)December 31, 2024(Dollars in thousands, except per share data)                For the three months ended, For the twelve months ended,For the period: 12/31/24 09/30/24 06/30/24 03/31/24 12/31/23 12/31/24 12/31/23Interest income $107,476 $106,438 $99,832 $98,609 $101,232 $412,355 $371,730Interest expense  52,004  53,234  48,805  47,142  48,472  201,185  151,733Net interest income  55,472  53,204  51,027  51,467  52,760  211,170  219,997Provision for credit losses  2,380  1,414  707  1,432  1,931  5,933  10,770Net interest income after provision for credit losses  53,092  51,790  50,320  50,035  50,829  205,237  209,227Noninterest income:              Trust fee income  2,265  2,110  2,008  2,108  1,943  8,491  7,732Service charges on deposit accounts  2,192  2,037  1,982  1,871  1,960  8,082  7,048Investment advisory commission and fee income  5,457  5,319  5,238  5,194  4,561  21,208  18,864Insurance commission and fee income  4,743  5,238  5,167  7,201  4,596  22,349  21,043Other service fee income  3,473  1,815  3,044  6,415  2,967  14,747  12,381Bank owned life insurance income  1,012  921  1,086  842  823  3,861  3,185Net gain on sales of investment securities  -  18  -  -  -  18  -Net gain on mortgage banking activities  1,320  1,296  1,710  939  809  5,265  3,689Other income  868  1,396  745  1,025  961  4,034  2,882Total noninterest income  21,330  20,150  20,980  25,595  18,620  88,055  76,824Noninterest expense:              Salaries, benefits and commissions  31,518  30,702  30,187  31,338  29,321  123,745  120,188Net occupancy  2,751  2,723  2,679  2,872  2,751  11,025  10,686Equipment  1,147  1,107  1,088  1,111  1,066  4,453  4,132Data processing  4,146  4,154  4,161  4,495  4,444  16,956  16,799Professional fees  1,669  1,579  1,466  1,688  1,768  6,402  7,141Marketing and advertising  552  490  715  416  632  2,173  2,180Deposit insurance premiums  1,102  1,097  1,098  1,135  1,350  4,432  4,825Intangible expenses  155  164  188  187  212  694  938Restructuring charges  -  -  -  -  189  -  1,519Other expense  7,618  6,536  7,126  6,832  7,313  28,112  28,954Total noninterest expense  50,658  48,552  48,708  50,074  49,046  197,992  197,362Income before taxes  23,764  23,388  22,592  25,556  20,403  95,300  88,689Income tax expense  4,823  4,810  4,485  5,251  4,149  19,369  17,585Net income $18,941 $18,578 $18,107 $20,305 $16,254 $75,931 $71,104Net income per share:              Basic $0.65 $0.64 $0.62 $0.69 $0.55 $2.60 $2.42Diluted $0.65 $0.63 $0.62 $0.69 $0.55 $2.58 $2.41Dividends declared per share $0.21 $0.21 $0.21 $0.21 $0.21 $0.84 $0.84Weighted average shares outstanding  29,070,039  29,132,948  29,246,977  29,413,999  29,500,147  29,215,365  29,433,359Period end shares outstanding  29,045,877  29,081,108  29,190,640  29,337,919  29,511,721  29,045,877  29,511,721                 Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)December 31, 2024                       For the three months ended, For the twelve months ended,Profitability Ratios (annualized)  12/31/24 09/30/24 06/30/24 03/31/24 12/31/23 12/31/24 12/31/23                  Return on average assets   0.92%  0.92%  0.94%  1.06%  0.82%  0.96%  0.94%Return on average assets, excluding restructuring  0.92%  0.92%  0.94%  1.06%  0.83%  0.96%  0.96%charges (1)                 Return on average shareholders' equity  8.56%  8.55%  8.62%  9.69%  7.91%  8.85%  8.83%Return on average shareholders' equity, excluding  8.56%  8.55%  8.62%  9.69%  7.99%  8.85%  8.97%restructuring charges (1)               Return on average tangible common equity (1)(3)  10.79%  10.84%  11.01%  12.38%  10.23%  11.24%  11.45%Return on average tangible common equity, excluding  10.79%  10.84%  11.01%  12.38%  10.32%  11.24%  11.64%restructuring charges (1)(3)               Net interest margin (FTE)   2.88%  2.82%  2.84%  2.88%  2.84%  2.86%  3.12%Efficiency ratio (2)    65.5%  65.7%  67.1%  64.6%  68.3%  65.7%  66.0%Efficiency ratio, excluding restructuring charges (1)(2)  65.5%  65.7%  67.1%  64.6%  68.0%  65.7%  65.5%                  Capitalization Ratios                                  Dividends declared to net income   32.2%  33.0%  33.9%  30.5%  38.1%  32.3%  34.8%Shareholders' equity to assets (Period End)  10.92%  10.69%  10.87%  10.89%  10.79%  10.92%  10.79%Tangible common equity to tangible assets (1)  8.92%  8.71%  8.81%  8.80%  8.70%  8.92%  8.70%Common equity book value per share $30.55  $30.16  $29.26  $28.76  $28.44  $30.55  $28.44 Tangible common equity book value per share (1) $24.43  $24.05  $23.17  $22.70  $22.41  $24.43  $22.41                   Regulatory Capital Ratios (Period End)               Tier 1 leverage ratio    9.51%  9.53%  9.74%  9.65%  9.36%  9.51%  9.36%Common equity tier 1 risk-based capital ratio  10.85%  10.88%  10.72%  10.71%  10.58%  10.85%  10.58%Tier 1 risk-based capital ratio   10.85%  10.88%  10.72%  10.71%  10.58%  10.85%  10.58%Total risk-based capital ratio   14.19%  14.27%  14.09%  14.11%  13.90%  14.19%  13.90%                  (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 BasisDecember 31, 2024 September 30, 2024  AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets:        Interest-earning deposits with other banks$402,753 $4,8524.79%$270,724 $3,6245.33%Obligations of state and political subdivisions* 1,290  72.16  1,283  72.17 Other debt and equity securities 499,458  3,8153.04  492,051  3,7063.00 Federal Home Loan Bank, Federal Reserve Bank and other stock 39,407  7467.53  38,769  7427.61 Total interest-earning deposits, investments and other interest-earning assets 942,908  9,4203.97  802,827  8,0794.00   -     -    Commercial, financial, and agricultural loans 972,840  17,4927.15  997,465  18,4597.36 Real estate—commercial and construction loans 3,631,142  53,1635.82  3,592,556  52,6725.83 Real estate—residential loans 1,708,795  21,2494.95  1,692,361  21,1274.97 Loans to individuals 25,803  5228.05  26,651  5498.20 Tax-exempt loans and leases 233,036  2,6524.53  232,159  2,5654.40 Lease financings 187,033  3,2967.01  189,599  3,2756.87 Gross loans and leases 6,758,649  98,3745.79  6,730,791  98,6475.83 Total interest-earning assets 7,701,557  107,7945.57  7,533,618  106,7265.64 Cash and due from banks 56,989     62,902    Allowance for credit losses, loans and leases (86,812)    (86,517)   Premises and equipment, net 47,155     47,989    Operating lease right-of-use assets 28,891     29,620    Other assets 415,567     417,653    Total assets$8,163,347    $8,005,265             Liabilities:        Interest-bearing checking deposits$1,275,348 $8,5042.65%$1,215,166 $8,8242.89%Money market savings 1,954,246  20,6534.20  1,849,628  21,2134.56 Regular savings 705,222  8170.46  727,395  8780.48 Time deposits 1,499,998  17,2474.57  1,491,560  17,2554.60 Total time and interest-bearing deposits 5,434,814  47,2213.46  5,283,749  48,1703.63          Short-term borrowings 7,102  10.06  8,210  10.05 Long-term debt 225,000  2,5014.42  247,826  2,7814.46 Subordinated notes 149,194  2,2816.08  149,068  2,2826.09 Total borrowings 381,296  4,7834.99  405,104  5,0644.97 Total interest-bearing liabilities 5,816,110  52,0043.56  5,688,853  53,2343.72 Noninterest-bearing deposits 1,369,669     1,357,575    Operating lease liabilities 31,864     32,627    Accrued expenses and other liabilities 65,467     61,804    Total liabilities 7,283,110     7,140,859    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,185,779  2.88  7,046,428  3.01          Shareholders' Equity:        Common stock 157,784     157,784    Additional paid-in capital 301,895     300,565    Retained earnings and other equity 420,558     406,057    Total shareholders' equity 880,237     864,406    Total liabilities and shareholders' equity$8,163,347    $8,005,265    Net interest income $55,790   $53,492           Net interest spread  2.01   1.92 Effect of net interest-free funding sources  0.87   0.90 Net interest margin  2.88%  2.82%Ratio of average interest-earning assets to average interest-bearing liabilities 132.42%    132.43%            * 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 $676 thousand and $897 thousand for the three months ended December 31,2024 and September 30, 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 December 31, 2024 and September 30, 2024 havebeen 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 December 31,   Tax Equivalent Basis  2024    2023   AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets:        Interest-earning deposits with other banks$402,753 $4,8524.79%$280,693 $3,8045.38%Obligations of state and political subdivisions* 1,290  72.16  2,277  142.44 Other debt and equity securities 499,458  3,8153.04  487,310  3,6782.99 Federal Home Loan Bank, Federal Reserve Bank and other stock 39,407  7467.53  41,361  7677.36 Total interest-earning deposits, investments and other interest-earning assets 942,908  9,4203.97  811,641  8,2634.04   -        Commercial, financial, and agricultural loans 972,840  17,4927.15  973,450  17,4857.13 Real estate—commercial and construction loans 3,631,142  53,1635.82  3,590,477  50,7155.60 Real estate—residential loans 1,708,795  21,2494.95  1,585,705  19,1334.79 Loans to individuals 25,803  5228.05  27,667  5588.00 Tax-exempt loans and leases 233,036  2,6524.53  230,394  2,4384.20 Lease financings 187,033  3,2967.01  186,540  2,8976.16 Gross loans and leases 6,758,649  98,3745.79  6,594,233  93,2265.61 Total interest-earning assets 7,701,557  107,7945.57  7,405,874  101,4895.44 Cash and due from banks 56,989     54,981    Allowance for credit losses, loans and leases (86,812)    (84,386)   Premises and equipment, net 47,155     51,489    Operating lease right-of-use assets 28,891     31,251    Other assets 415,567     406,425    Total assets$8,163,347    $7,865,634             Liabilities:        Interest-bearing checking deposits$1,275,348 $8,5042.65%$1,193,386 $8,4092.80%Money market savings 1,954,246  20,6534.20  1,845,153  21,1334.54 Regular savings 705,222  8170.46  784,937  8740.44 Time deposits 1,499,998  17,2474.57  1,188,054  12,7484.26 Total time and interest-bearing deposits 5,434,814  47,2213.46  5,011,530  43,1643.42          Short-term borrowings 7,102  10.06  9,814  10.04 Long-term debt 225,000  2,5014.42  318,805  3,0263.77 Subordinated notes 149,194  2,2816.08  148,693  2,2816.09 Total borrowings 381,296  4,7834.99  477,312  5,3084.41 Total interest-bearing liabilities 5,816,110  52,0043.56  5,488,842  48,4723.50 Noninterest-bearing deposits 1,369,669     1,458,610    Operating lease liabilities 31,864     34,255    Accrued expenses and other liabilities 65,467     68,986    Total liabilities 7,283,110     7,050,693    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,185,779  2.88  6,947,452  2.77          Shareholders' Equity:        Common stock 157,784     157,784    Additional paid-in capital 301,895     300,558    Retained earnings and other equity 420,558     356,599    Total shareholders' equity 880,237     814,941    Total liabilities and shareholders' equity$8,163,347    $7,865,634    Net interest income $55,790   $53,017           Net interest spread  2.01   1.94 Effect of net interest-free funding sources  0.87   0.90 Net interest margin  2.88%  2.84%Ratio of average interest-earning assets to average interest-bearing liabilities 132.42%    134.93%            * 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 $676 thousand and $428 thousand for the three months ended December 31,2024 and 2023, respectively. Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been includedin the average loan balances. Tax-equivalent amounts for the three months ended December 31, 2024 and 2023 have beencalculated using the Corporation’s federal applicable rate of 21.0%.            Univest Financial Corporation Average Balances and Interest Rates (Unaudited)   For the Twelve Months Ended December 31,  Tax Equivalent Basis 2024    2023   AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets:        Interest-earning deposits with other banks$220,356 $11,1935.08%$130,309 $6,6605.11%Obligations of state and political subdivisions* 1,447  332.28  2,282  622.72 Other debt and equity securities 495,604  14,9093.01  505,343  14,2252.81 Federal Home Loan Bank, Federal Reserve Bank and other stock 38,647  2,9127.53  40,092  2,8697.16 Total interest-earning deposits, investments and other interest-earning assets 756,054  29,0473.84  678,026  23,8163.51   -        Commercial, financial, and agricultural loans 972,213  69,9217.19  991,505  67,4876.81 Real estate—commercial and construction loans 3,587,147  207,0535.77  3,483,576  188,6445.42 Real estate—residential loans 1,670,126  82,3444.93  1,505,799  70,3494.67 Loans to individuals 26,646  2,1618.11  27,063  2,0117.43 Tax-exempt loans and leases 232,020  10,1574.38  232,501  9,5974.13 Lease financings 189,054  12,8456.79  178,220  11,0256.19 Gross loans and leases 6,677,206  384,4815.76  6,418,664  349,1135.44 Total interest-earning assets 7,433,260  413,5285.56  7,096,690  372,9295.25 Cash and due from banks 57,799     58,593    Allowance for credit losses, loans and leases (86,530)    (82,474)   Premises and equipment, net 48,610     51,921    Operating lease right-of-use assets 29,990     31,351    Other assets 414,578     400,977    Total assets$7,897,707    $7,557,058             Liabilities:        Interest-bearing checking deposits$1,191,634 $32,8572.76%$1,034,327 $23,6682.29%Money market savings 1,801,035  80,2174.45  1,611,169  64,1533.98 Regular savings 740,493  3,5290.48  871,332  3,2490.37 Time deposits 1,413,589  64,2664.55  931,944  34,9793.75 Total time and interest-bearing deposits 5,146,751  180,8693.51  4,448,772  126,0492.83          Short-term borrowings 13,703  2491.82  148,776  7,0954.77 Long-term debt 253,733  10,9424.31  263,877  9,4643.59 Subordinated notes 149,007  9,1256.12  148,507  9,1256.14 Total borrowings 416,443  20,3164.88  561,160  25,6844.58 Total interest-bearing liabilities 5,563,194  201,1853.62  5,009,932  151,7333.03 Noninterest-bearing deposits 1,380,178     1,646,286    Operating lease liabilities 33,006     34,474    Accrued expenses and other liabilities 63,310     60,699    Total liabilities 7,039,688     6,751,391    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,943,372  2.90  6,656,218  2.28          Shareholders' Equity:        Common stock 157,784     157,784    Additional paid-in capital 300,644     299,804    Retained earnings and other equity 399,591     348,079    Total shareholders' equity 858,019     805,667    Total liabilities and shareholders' equity$7,897,707    $7,557,058    Net interest income $212,343   $221,196           Net interest spread  1.94   2.22 Effect of net interest-free funding sources  0.92   0.90 Net interest margin  2.86%  3.12%Ratio of average interest-earning assets to average interest-bearing liabilities 133.61%    141.65%            * 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 $2.7 million and $2.1 million for the twelve months endedDecember 31, 2024 and 2023, respectively.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have beenincluded in the average loan balances. Tax-equivalent amounts for the twelve months ended December 31, 2024 and 2023 havebeen calculated using the Corporation’s federal applicable rate of 21.0%.           Univest Financial CorporationLoan Portfolio Overview (Unaudited)December 31, 2024     (Dollars in thousands)    Industry DescriptionTotal Outstanding Balance  % of Commercial Loan Portfolio CRE - Retail$463,882 8.6%Animal Production 393,902 7.3 CRE - Multi-family 344,169 6.4 CRE - Office 294,331 5.5 CRE - 1-4 Family Residential Investment 287,690 5.3 CRE - Industrial / Warehouse 255,232 4.7 Hotels & Motels (Accommodation) 198,815 3.7 Specialty Trade Contractors 191,896 3.6 Nursing and Residential Care Facilities 176,130 3.3 Education 170,487 3.2 Motor Vehicle and Parts Dealers 147,580 2.7 Merchant Wholesalers, Durable Goods 138,633 2.6 Repair and Maintenance 132,950 2.5 Homebuilding (tract developers, remodelers) 129,031 2.4 Crop Production 111,628 2.1 CRE - Mixed-Use - Residential 111,590 2.1 Wood Product Manufacturing 98,629 1.8 Food Services and Drinking Places 87,765 1.6 Administrative and Support Services 78,656 1.5 Fabricated Metal Product Manufacturing 76,611 1.4 Religious Organizations, Advocacy Groups 74,011 1.4 Real Estate Lenders, Secondary Market Financing 70,748 1.3 Personal and Laundry Services 70,595 1.3 Amusement, Gambling, and Recreation Industries 68,990 1.3 CRE - Mixed-Use - Commercial 67,187 1.2 Miniwarehouse / Self-Storage 65,018 1.2 Merchant Wholesalers, Nondurable Goods 63,662 1.2 Private Equity & Special Purpose Entities (except 52592) 56,186 1.0 Truck Transportation 55,679 1.0 Food Manufacturing 50,771 0.9 Industries with >$50 million in outstandings$4,532,454 84.3%Industries with <$50 million in outstandings$846,410 15.7%Total Commercial Loans$5,378,864 100.0%          Consumer Loans and Lease FinancingsTotal Outstanding Balance   Real Estate-Residential Secured for Personal Purpose 994,972   Real Estate-Home Equity Secured for Personal Purpose 186,836   Loans to Individuals 21,250   Lease Financings 244,661   Total - Consumer Loans and Lease Financings$1,447,719        Total$6,826,583          Univest Financial CorporationNon-GAAP ReconciliationDecember 31, 2024 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, As of or for the twelve months ended,(Dollars in thousands)12/31/24 09/30/24 06/30/24 03/31/24 12/31/23 12/31/24 12/31/23Restructuring charges (a)  $-  $-  $-  $-  $189  $-  $1,519 Tax effect of restructuring charges   -   -   -   -   (40)  -   (319)Restructuring charges, net of tax  $-  $-  $-  $-  $149  $-  $1,200                  Net income$18,941  $18,578  $18,107  $20,305  $16,254  $75,931  $71,104 Amortization of intangibles, net of tax 122   130   149   148   167   548   741 Net income before amortization of intangibles$19,063  $18,708  $18,256  $20,453  $16,421  $76,479  $71,845                  Shareholders' equity$887,301  $877,071  $854,137  $843,669  $839,208  $887,301  $839,208 Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)Other intangibles (b)  (2,263)  (2,147)  (2,157)  (2,273)  (2,405)  (2,263)  (2,405)Tangible common equity$709,528  $699,414  $676,470  $665,886  $661,293  $709,528  $661,293                  Total assets$8,128,417  $8,205,737  $7,855,446  $7,746,568  $7,780,628  $8,128,417  $7,780,628 Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)Other intangibles (b)  (2,263)  (2,147)  (2,157)  (2,273)  (2,405)  (2,263)  (2,405)Tangible assets$7,950,644  $8,028,080  $7,677,779  $7,568,785  $7,602,713  $7,950,644  $7,602,713                  Average shareholders' equity$880,237  $864,406  $844,572  $842,546  $814,941  $858,019  $805,667 Average goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)Average other intangibles (b)  (2,146)  (2,086)  (2,222)  (2,318)  (2,477)  (2,193)  (2,802)Average tangible common equity$702,581  $686,810  $666,840  $664,718  $636,954  $680,316  $627,355                  (a) Associated with branch optimization and headcount rationlization expense management strategies(b) Amount does not include mortgage servicing rights                 

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