Univest Financial Corporation Reports Fourth Quarter 2024 Results

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availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.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

Univest Financial Corporation Reports Fourth Quarter 2024 Results

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