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Univest Financial Corporation Reports Second Quarter Results

1. Univest reported Q2 2025 net income of $20 million, up from $18.1 million. 2. Gross loans decreased by $31.9 million, indicating potential lending challenges. 3. Total deposits fell by $75.8 million, reflecting seasonal trends. 4. Net interest income surged 16.7%, driven by higher loan balances and lower costs. 5. Nonperforming assets rose to $50.6 million, an area of concern.

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FAQ

Why Bullish?

Despite a decrease in loans and deposits, the increase in net interest income indicates strong financial health. Historical trends show that improved net interest margins can lead to sustained investor confidence.

How important is it?

The earnings report reflects significant operational performance but raises concerns regarding loan growth and asset quality. Investors may react positively to net income growth but cautious about rising nonperforming loans.

Why Short Term?

The immediate financial results show good operating momentum, likely affecting investor sentiment in the short term. Long-term trends will depend on loan growth and asset quality improvements.

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SOUDERTON, Pa., July 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 June 30, 2025 of $20.0 million, or $0.69 diluted earnings per share, compared to net income of $18.1 million, or $0.62 diluted earnings per share, for the quarter ended June 30, 2024. LoansGross loans and leases decreased $31.9 million, or 0.5% (2.0% annualized), from March 31, 2025 and $25.4 million, or 0.4% (0.8% annualized), from December 31, 2024 primarily due to decreases in commercial real estate, residential mortgage loans and lease financings, partially offset by increases in commercial, construction and home equity loans. Gross loans and leases increased $116.3 million, or 1.7%, from June 30, 2024, primarily due to increases in commercial real estate, residential mortgage and home equity loans, partially offset by decreases in commercial and construction loans and lease financings. Deposits and LiquidityTotal deposits decreased $75.8 million, or 1.1% (4.4% annualized), from March 31, 2025, primarily due to seasonal decreases in public funds deposits and decreases in consumer and brokered deposits, partially offset by an increase in commercial deposits. Excluding decreases of $105.9 million in seasonal public funds deposits and $47.5 million in brokered deposits, deposits increased by $77.5 million during the quarter. Total deposits decreased $176.6 million, or 2.6% (5.2% annualized), from December 31, 2024, due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits. Total deposits increased $87.3 million, or 1.3%, from June 30, 2024, due to increases in commercial and public funds deposits, partially offset by decreases in consumer and brokered deposits. Noninterest-bearing deposits totaled $1.5 billion and represented 22.2% of total deposits at June 30, 2025, compared to $1.4 billion representing 21.5% of total deposits at March 31, 2025. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at June 30, 2025 and March 31, 2025. This represented 23.0% of total deposits at June 30, 2025, compared to 21.9% at March 31, 2025. As of June 30, 2025, the Corporation and its subsidiaries reported cash and cash equivalents totaling $160.4 million and had committed borrowing capacity of $3.6 billion, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $469.0 million at June 30, 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 $59.5 million for the second quarter of 2025 increased $8.5 million, or 16.7%, from the second quarter of 2024 and $2.8 million, or 4.9%, from the first quarter of 2025. The increase in net interest income for the second quarter of 2025 compared to the second quarter of 2024 was driven by higher average balances of loans and higher yields on interest earning assets, as well as a reduction in our overall cost of funds. The increase in net interest income for the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by higher yields on interest earning assets and lower average balances of interest-bearing liabilities and related costs. Net interest margin, on a tax-equivalent basis, was 3.20% for the second quarter of 2025, compared to 3.09% for the first quarter of 2025 and 2.84% for the second quarter of 2024. Excess liquidity reduced net interest margin by approximately four basis points for the quarter ended June 30, 2025 compared to approximately three basis points for the quarter ended March 31, 2025 and approximately two basis points for the quarter ended June 30, 2024. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.24% for the quarter ended June 30, 2025 compared to 3.12% for the first quarter of 2025 and 2.86% for the second quarter of 2024. Noninterest IncomeNoninterest income for the quarter ended June 30, 2025 was $21.5 million, an increase of $521 thousand, or 2.5%, from the comparable period in the prior year. Other income increased $491 thousand, or 65.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase of $299 thousand in gains on sale of Small Business Administration loans. Service charges on deposit accounts increased $276 thousand, or 13.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase in treasury management income. Investment advisory commission and fee income increased $222 thousand, or 4.2%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to new customer relationships and appreciation of assets under management and supervision. Net gain on mortgage banking activities decreased $729 thousand, or 42.6%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to decreased salable volume. Noninterest ExpenseNoninterest expense for the quarter ended June 30, 2025 was $50.3 million, an increase of $1.6 million, or 3.3%, from the comparable period in the prior year. Salaries, benefits and commissions increased $1.3 million, or 4.5%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, due to increases in salary and medical claims expense. Additionally, variable compensation increased due to increased profitability. Tax Provision The effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to an effective tax rate of 19.9% for the quarter ended June 30, 2024. The effective tax rates for the three months ended June 30, 2025 and 2024 were favorably impacted by proceeds of BOLI death benefits received in both periods. Excluding the BOLI death benefits, the effective tax rate was 20.2% for the three months ended June 30, 2025 compared to 20.0% for the three months ended June 30, 2024. Asset Quality and Provision for Credit LossesNonperforming assets totaled $50.6 million at June 30, 2025, $34.0 million at March 31, 2025, and $36.6 million at June 30, 2024. During the quarter, a $23.7 million commercial loan relationship was placed on nonaccrual status due to, among other things, suspected fraud. Subsequent to the relationship being placed on nonaccrual status, a $7.3 million charge-off was recognized during the quarter. The remaining $16.4 million carrying value is supported by the appraised value of real estate collateral. Net loan and lease charge-offs were $7.8 million for the three months ended June 30, 2025 compared to $1.7 million and $809 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The increase in charge-offs for the quarter compared to the prior periods was due to the previously discussed $7.3 million charge-off associated with a nonaccrual commercial loan relationship. The provision for credit losses was $5.7 million for the three months ended June 30, 2025 compared to $2.3 million and $707 thousand for the three months ended March 31, 2025 and June 30, 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 June 30, 2025, March 31, 2025, and June 30, 2024. Dividend and Share RepurchasesOn July 23, 2025, Univest declared a quarterly cash dividend of $0.22 per share to be paid on August 20, 2025 to shareholders of record as of August 6, 2025. During the quarter ended June 30, 2025, the Corporation repurchased 172,757 shares of common stock at an average price of $28.45 per share. Including brokerage fees and excise tax, the average price per share was $28.77. As of June 30, 2025, 1,005,637 shares are available for repurchase under the Share Repurchase Plan. Conference CallUnivest will host a conference call to discuss second quarter 2025 results on Thursday, July 24, 2025 at 9:00 a.m. EDT. Participants may preregister at https://www.netroadshow.com/events/login?show=d55d5140&confId=85192. The general public can access the call by dialing 1-833-470-1428; using Access Code 747843. A replay of the conference call will be available through July 31, 2025 by dialing 1-866-813-9403; using Access Code 563521. About Univest Financial CorporationUnivest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.9 billion in assets and $5.4 billion in assets under management and supervision through its Wealth Management lines of business at June 30, 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 and retaliatory responses; (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; (18) changes in investor sentiment or consumer spending or savings behavior; and/or (19) 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)June 30, 2025(Dollars in thousands)                                     Balance Sheet (Period End) 06/30/25 03/31/25 12/31/24 09/30/24 06/30/24        ASSETS                  Cash and due from banks $76,624  $73,319  $75,998  $78,346  $66,808         Interest-earning deposits with other banks  83,741   95,815   252,846   426,354   124,103         Cash and cash equivalents  160,365   169,134   328,844   504,700   190,911         Investment securities held-to-maturity  128,455   130,889   134,111   137,681   140,112         Investment securities available for sale, net of allowance for credit losses  366,421   364,503   357,361   354,100   342,776         Investments in equity securities  1,801   1,667   2,506   2,406   2,995         Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost  36,482   35,732   38,980   40,235   37,438         Loans held for sale  17,774   13,150   16,653   17,131   28,176         Loans and leases held for investment  6,801,185   6,833,037   6,826,583   6,730,734   6,684,837         Less: Allowance for credit losses, loans and leases  (86,989)  (87,790)  (87,091)  (86,041)  (85,745)        Net loans and leases held for investment  6,714,196   6,745,247   6,739,492   6,644,693   6,599,092         Premises and equipment, net  47,140   47,175   46,671   47,411   48,174         Operating lease right-of-use assets  27,278   27,182   28,531   29,260   29,985         Goodwill  175,510   175,510   175,510   175,510   175,510         Other intangibles, net of accumulated amortization  7,967   8,061   8,309   7,158   7,701         Bank owned life insurance  140,086   139,482   139,351   138,744   137,823         Accrued interest and other assets  115,581   117,435   112,098   106,708   114,753         Total assets $7,939,056  $7,975,167  $8,128,417  $8,205,737  $7,855,446                            LIABILITIES                  Noninterest-bearing deposits $1,461,189  $1,433,995  $1,414,635  $1,323,953  $1,397,308         Interest-bearing deposits:  5,121,471   5,224,503   5,344,624   5,530,195   5,098,014         Total deposits  6,582,660   6,658,498   6,759,259   6,854,148   6,495,322         Short-term borrowings  6,271   4,031   11,181   8,256   11,781         Long-term debt  200,000   175,000   225,000   225,000   250,000         Subordinated notes  149,511   149,386   149,261   149,136   149,011         Operating lease liabilities  30,106   30,062   31,485   32,246   33,015         Accrued expenses and other liabilities  53,775   54,718   64,930   59,880   62,180         Total liabilities  7,022,323   7,071,695   7,241,116   7,328,666   7,001,309                            SHAREHOLDERS' EQUITY                  Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued  157,784   157,784   157,784   157,784   157,784         Additional paid-in capital  301,640   300,634   302,829   301,262   300,166         Retained earnings  555,403   541,776   525,780   512,938   500,482         Accumulated other comprehensive loss, net of tax benefit  (34,969)  (37,922)  (43,992)  (41,623)  (54,124)        Treasury stock, at cost  (63,125)  (58,800)  (55,100)  (53,290)  (50,171)        Total shareholders’ equity  916,733   903,472   887,301   877,071   854,137         Total liabilities and shareholders’ equity $7,939,056  $7,975,167  $8,128,417  $8,205,737  $7,855,446                                                 For the three months ended, For the six months ended,Balance Sheet (Average) 06/30/25 03/31/25 12/31/24 09/30/24 06/30/24 06/30/25 06/30/24Assets  7,979,475  $7,981,043  $8,163,347  $8,005,265  $7,721,540  $7,980,254  $7,709,058 Investment securities, net of allowance for credit losses  497,214   500,078   500,748   493,334   493,140   498,638   497,061 Loans and leases, gross  6,846,938   6,856,503   6,758,649   6,730,791   6,640,536   6,851,694   6,608,950 Deposits  6,633,250   6,617,653   6,804,483   6,641,324   6,353,752   6,625,494   6,328,804 Shareholders' equity  908,536   896,811   880,237   864,406   844,572   902,706   843,559                 Univest Financial CorporationConsolidated Summary of Loans by Type and Asset Quality Data (Unaudited)June 30, 2025(Dollars in thousands)                                     Summary of Major Loan and Lease Categories (Period End) 06/30/25 03/31/25 12/31/24 09/30/24 06/30/24        Commercial, financial and agricultural $1,052,246  $1,034,361  $1,037,835  $1,044,043  $1,055,332         Real estate-commercial  3,485,615   3,546,402   3,530,451   3,442,083   3,373,889         Real estate-construction  302,424   281,785   274,483   285,616   313,229         Real estate-residential secured for business purpose  535,210   536,082   536,095   530,674   532,628         Real estate-residential secured for personal purpose  984,166   992,767   994,972   969,562   952,665         Real estate-home equity secured for personal purpose  195,014   189,119   186,836   182,901   179,150         Loans to individuals  14,069   16,930   21,250   26,794   26,430         Lease financings  232,441   235,591   244,661   249,061   251,514         Total loans and leases held for investment, net of deferred income  6,801,185   6,833,037   6,826,583   6,730,734   6,684,837         Less: Allowance for credit losses, loans and leases  (86,989)  (87,790)  (87,091)  (86,041)  (85,745)        Net loans and leases held for investment $6,714,196  $6,745,247  $6,739,492  $6,644,693  $6,599,092                                   Asset Quality Data (Period End)  06/30/25 03/31/25 12/31/24 09/30/24 06/30/24    Nonaccrual loans and leases, including nonaccrual loans held for sale $27,909  $11,126  $12,667  $15,319  $16,200     Accruing loans and leases 90 days or more past due  125   322   321   310   205     Total nonperforming loans and leases  28,034   11,448   12,988   15,629   16,405     Other real estate owned  22,471   22,433   20,141   20,915   20,007     Repossessed assets  80   79   76   79   149     Total nonperforming assets $50,585  $33,960  $33,205  $36,623  $36,561     Nonaccrual loans and leases / Loans and leases held for investment  0.41%  0.16%  0.19%  0.23%  0.24%    Nonperforming loans and leases / Loans and leases held for investment  0.41%  0.17%  0.19%  0.23%  0.25%    Nonperforming assets / Total assets  0.64%  0.43%  0.41%  0.45%  0.47%                   Allowance for credit losses, loans and leases $86,989  $87,790  $87,091  $86,041  $85,745     Allowance for credit losses, loans and leases / Loans and leases held for investment  1.28%  1.28%  1.28%  1.28%  1.28%    Allowance for credit losses, loans and leases / Nonaccrual loans and leases  311.69%  789.05%  687.54%  561.66%  529.29%    Allowance for credit losses, loans and leases / Nonperforming loans and leases  310.30%  766.86%  670.55%  550.52%  522.68%                                    For the three months ended, For the six months ended,  06/30/25 03/31/25 12/31/24 09/30/24 06/30/24 06/30/25 06/30/24Net loan and lease charge-offs $7,807  $1,686  $767  $820  $809  $9,493  $2,215 Net loan and lease charge-offs (annualized)/Average loans and leases  0.46%  0.10%  0.05%  0.05%  0.05%  0.28%  0.07%                Univest Financial Corporation Consolidated Selected Financial Data (Unaudited) June 30, 2025 (Dollars in thousands, except per share data)                 For the three months ended, For the six months ended, For the period: 06/30/25 03/31/25 12/31/24 09/30/24 06/30/24 06/30/25 06/30/24 Interest income $105,706 $103,416 $107,476 $106,438 $99,832 $209,122 $198,441 Interest expense  46,165  46,635  52,004  53,234  48,805  92,800  95,947 Net interest income  59,541  56,781  55,472  53,204  51,027  116,322  102,494 Provision for credit losses  5,694  2,311  2,380  1,414  707  8,005  2,139 Net interest income after provision for credit losses  53,847  54,470  53,092  51,790  50,320  108,317  100,355 Noninterest income:               Trust fee income  2,146  2,161  2,265  2,110  2,008  4,307  4,116 Service charges on deposit accounts  2,258  2,194  2,192  2,037  1,982  4,452  3,853 Investment advisory commission and fee income  5,460  5,613  5,457  5,319  5,238  11,073  10,432 Insurance commission and fee income  5,261  6,889  4,743  5,238  5,167  12,150  12,368 Other service fee income  3,147  2,707  3,473  1,815  3,044  5,854  9,459 Bank owned life insurance income  1,012  1,959  1,012  921  1,086  2,971  1,928 Net gain on sales of investment securities  -  -  -  18  -  -  - Net gain on mortgage banking activities  981  647  1,320  1,296  1,710  1,628  2,649 Other income  1,236  245  868  1,396  745  1,481  1,770 Total noninterest income  21,501  22,415  21,330  20,150  20,980  43,916  46,575 Noninterest expense:               Salaries, benefits and commissions  31,536  30,826  31,518  30,702  30,187  62,362  61,525 Net occupancy  2,739  2,853  2,751  2,723  2,679  5,592  5,551 Equipment  1,043  1,122  1,147  1,107  1,088  2,165  2,199 Data processing  4,408  4,364  4,146  4,154  4,161  8,772  8,656 Professional fees  1,597  1,797  1,669  1,579  1,466  3,394  3,154 Marketing and advertising  498  353  552  490  715  851  1,131 Deposit insurance premiums  1,074  1,151  1,102  1,097  1,098  2,225  2,233 Intangible expenses  131  130  155  164  188  261  375 Other expense  7,306  6,732  7,618  6,536  7,126  14,038  13,958 Total noninterest expense  50,332  49,328  50,658  48,552  48,708  99,660  98,782 Income before taxes  25,016  27,557  23,764  23,388  22,592  52,573  48,148 Income tax expense  5,038  5,162  4,823  4,810  4,485  10,200  9,736 Net income $19,978 $22,395 $18,941 $18,578 $18,107 $42,373 $38,412 Net income per share:               Basic $0.69 $0.77 $0.65 $0.64 $0.62 $1.46 $1.31 Diluted $0.69 $0.77 $0.65 $0.63 $0.62 $1.45 $1.30 Dividends declared per share $0.22 $0.21 $0.21 $0.21 $0.21 $0.43 $0.42 Weighted average shares outstanding  28,859,348  29,000,567  29,070,039  29,132,948  29,246,977  28,929,123  29,330,488 Period end shares outstanding  28,810,805  28,962,648  29,045,877  29,081,108  29,190,640  28,810,805  29,190,640   Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)June 30, 2025                                               For the three months ended, For the six months ended,Profitability Ratios (annualized) 06/30/25 03/31/25 12/31/24 09/30/24 06/30/24 06/30/25 06/30/24               Return on average assets  1.00%  1.14%  0.92%  0.92%  0.94%  1.07%  1.00%Return on average shareholders' equity  8.82%  10.13%  8.56%  8.55%  8.62%  9.47%  9.16%Return on average tangible common equity (1)(3)  11.02%  12.69%  10.79%  10.84%  11.01%  11.84%  11.69%Net interest margin (FTE)  3.20%  3.09%  2.88%  2.82%  2.84%  3.14%  2.86%Efficiency ratio (2)  61.6%  61.6%  65.5%  65.7%  67.1%  61.6%  65.8%               Capitalization Ratios                             Dividends declared to net income  31.8%  27.2%  32.2%  33.0%  33.9%  29.4%  32.1%Shareholders' equity to assets (Period End)  11.55%  11.33%  10.92%  10.69%  10.87%  11.55%  10.87%Tangible common equity to tangible assets (1)  9.52%  9.31%  8.92%  8.71%  8.81%  9.52%  8.81%Common equity book value per share $31.82  $31.19  $30.55  $30.16  $29.26  $31.82  $29.26 Tangible common equity book value per share (1) $25.66  $25.06  $24.43  $24.05  $23.17  $25.66  $23.17                Regulatory Capital Ratios (Period End)               Tier 1 leverage ratio  9.94%  9.80%  9.51%  9.53%  9.74%  9.94%  9.74%Common equity tier 1 risk-based capital ratio  11.19%  10.97%  10.85%  10.88%  10.72%  11.19%  10.72%Tier 1 risk-based capital ratio  11.19%  10.97%  10.85%  10.88%  10.72%  11.19%  10.72%Total risk-based capital ratio  14.58%  14.35%  14.19%  14.27%  14.09%  14.58%  14.09%               (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 BasisJune 30, 2025 March 31, 2025  AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets:        Interest-earning deposits with other banks$131,391 $1,3714.19%$119,997 $1,3604.60%Obligations of state and political subdivisions* -  --  879  41.85 Other debt and equity securities 497,214  3,9623.20  499,199  4,0193.27 Federal Home Loan Bank, Federal Reserve Bank and other stock 36,711  6717.33  37,561  6877.42 Total interest-earning deposits, investments and other interest-earning assets 665,316  6,0043.62  657,636  6,0703.74          Commercial, financial, and agricultural loans 1,005,784  17,6867.05  990,860  17,0206.97 Real estate—commercial and construction loans 3,692,262  54,1655.88  3,704,232  52,6765.77 Real estate—residential loans 1,727,381  21,7725.06  1,729,146  21,5425.05 Loans to individuals 15,575  3378.68  19,438  3938.20 Tax-exempt loans and leases 228,856  2,9665.20  230,133  2,8615.04 Lease financings 177,080  3,1927.23  182,694  3,2407.19 Gross loans and leases 6,846,938  100,1185.86  6,856,503  97,7325.78 Total interest-earning assets 7,512,254  106,1225.67  7,514,139  103,8025.60 Cash and due from banks 55,335     56,690    Allowance for credit losses, loans and leases (88,127)    (87,822)   Premises and equipment, net 47,299     46,852    Operating lease right-of-use assets 26,948     27,761    Other assets 425,766     423,423    Total assets$7,979,475    $7,981,043             Liabilities:        Interest-bearing checking deposits$1,216,909 $7,8002.57%$1,222,012 $7,0752.35%Money market savings 1,754,428  16,9453.87  1,840,194  18,0353.97 Regular savings 700,762  7490.43  702,543  7630.44 Time deposits 1,541,008  16,2614.23  1,476,495  16,1064.42 Total time and interest-bearing deposits 5,213,107  41,7553.21  5,241,244  41,9793.25          Short-term borrowings 5,254  10.08  6,909  140.82 Long-term debt 200,549  2,1284.26  217,500  2,3614.40 Subordinated notes 149,444  2,2816.12  149,319  2,2816.20 Total borrowings 355,247  4,4104.98  373,728  4,6565.05 Total interest-bearing liabilities 5,568,354  46,1653.33  5,614,972  46,6353.37 Noninterest-bearing deposits 1,420,143     1,376,409    Operating lease liabilities 29,802     30,675    Accrued expenses and other liabilities 52,640     62,176    Total liabilities 7,070,939     7,084,232    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,988,497  2.65  6,991,381  2.71          Shareholders' Equity:        Common stock 157,784     157,784    Additional paid-in capital 301,016     302,653    Retained earnings and other equity 449,736     436,374    Total shareholders' equity 908,536     896,811    Total liabilities and shareholders' equity$7,979,475    $7,981,043    Net interest income $59,957   $57,167           Net interest spread  2.34   2.23 Effect of net interest-free funding sources  0.86   0.86 Net interest margin  3.20%  3.09%Ratio of average interest-earning assets to average interest-bearing liabilities 134.91%    133.82%            * 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 $689 thousand and $554 thousand for the three months ended June 30, 2025 and March 31, 2025, respectively.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and March 31, 2025 have been calculated using the Corporation’s federal applicable rate of 21.0%.           Univest Financial Corporation Average Balances and Interest Rates (Unaudited)   For the Three Months Ended June 30,   Tax Equivalent Basis2025 2024  AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets:        Interest-earning deposits with other banks$131,391 $1,3714.19%$84,546 $1,1085.27%Obligations of state and political subdivisions* -  --  1,269  72.22 Other debt and equity securities 497,214  3,9623.20  491,871  3,7413.06 Federal Home Loan Bank, Federal Reserve Bank and other stock 36,711  6717.33  37,286  7007.55 Total interest-earning deposits, investments and other interest-earning assets 665,316  6,0043.62  614,972  5,5563.63          Commercial, financial, and agricultural loans 1,005,784  17,6867.05  983,615  17,4477.13 Real estate—commercial and construction loans 3,692,262  54,1655.88  3,549,206  50,5775.73 Real estate—residential loans 1,727,381  21,7725.06  1,660,489  20,4134.94 Loans to individuals 15,575  3378.68  26,821  5428.13 Tax-exempt loans and leases 228,856  2,9665.20  230,495  2,4764.32 Lease financings 177,080  3,1927.23  189,910  3,1056.58 Gross loans and leases 6,846,938  100,1185.86  6,640,536  94,5605.73 Total interest-earning assets 7,512,254  106,1225.67  7,255,508  100,1165.55 Cash and due from banks 55,335     56,387    Allowance for credit losses, loans and leases (88,127)    (86,293)   Premises and equipment, net 47,299     48,725    Operating lease right-of-use assets 26,948     30,344    Other assets 425,766     416,869    Total assets$7,979,475    $7,721,540             Liabilities:        Interest-bearing checking deposits$1,216,909 $7,8002.57%$1,094,150 $7,3112.69%Money market savings 1,754,428  16,9453.87  1,692,759  19,1314.55 Regular savings 700,762  7490.43  759,960  9290.49 Time deposits 1,541,008  16,2614.23  1,422,113  16,1344.56 Total time and interest-bearing deposits 5,213,107  41,7553.21  4,968,982  43,5053.52          Short-term borrowings 5,254  10.08  29,506  2422.30 Long-term debt 200,549  2,1284.26  250,000  2,7774.47 Subordinated notes 149,444  2,2816.12  148,943  2,2816.16 Total borrowings 355,247  4,4104.98  428,449  5,3004.98 Total interest-bearing liabilities 5,568,354  46,1653.33  5,397,431  48,8053.64 Noninterest-bearing deposits 1,420,143     1,384,770    Operating lease liabilities 29,802     33,382    Accrued expenses and other liabilities 52,640     61,385    Total liabilities 7,070,939     6,876,968    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,988,497  2.65  6,782,201  2.89          Shareholders' Equity:        Common stock 157,784     157,784    Additional paid-in capital 301,016     299,426    Retained earnings and other equity 449,736     387,362    Total shareholders' equity 908,536     844,572    Total liabilities and shareholders' equity$7,979,475    $7,721,540    Net interest income $59,957   $51,311           Net interest spread  2.34   1.91 Effect of net interest-free funding sources  0.86   0.93 Net interest margin  3.20%  2.84%Ratio of average interest-earning assets to average interest-bearing liabilities 134.91%    134.43%            * Obligations of states and political subdivisions are tax-exempt earning assets.     Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.Net interest income includes net deferred costs amortization of $689 thousand and $698 thousand for the three months ended June 30, 2025 and 2024, respectively. Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and 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 Six Months Ended June 30,  Tax Equivalent Basis2025 2024  AverageIncome/Average AverageIncome/Average (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate Assets:        Interest-earning deposits with other banks$125,725 $2,7314.38%$102,696 $2,7175.32%Obligations of state and political subdivisions* 437  41.85  1,610  192.37 Other debt and equity securities 498,201  7,9813.23  495,451  7,3883.00 Federal Home Loan Bank, Federal Reserve Bank and other stock 37,134  1,3587.37  38,201  1,4247.50 Total interest-earning deposits, investments and other interest-earning assets 661,497  12,0743.68  637,958  11,5483.64          Commercial, financial, and agricultural loans 998,363  34,7067.01  959,132  33,9707.12 Real estate—commercial and construction loans 3,698,214  106,8415.83  3,562,174  101,2185.71 Real estate—residential loans 1,728,259  43,3145.05  1,639,339  39,9684.90 Loans to individuals 17,495  7308.41  27,068  1,0908.10 Tax-exempt loans and leases 229,491  5,8275.12  231,437  4,9404.29 Lease financings 179,872  6,4327.21  189,800  6,2746.65 Gross loans and leases 6,851,694  197,8505.82  6,608,950  187,4605.70 Total interest-earning assets 7,513,191  209,9245.63  7,246,908  199,0085.52 Cash and due from banks 56,009     55,628    Allowance for credit losses, loans and leases (87,975)    (86,394)   Premises and equipment, net 47,076     49,659    Operating lease right-of-use assets 27,352     30,733    Other assets 424,601     412,524    Total assets$7,980,254    $7,709,058             Liabilities:        Interest-bearing checking deposits$1,219,446 $14,8752.46%$1,137,423 $15,5292.75%Money market savings 1,797,074  34,9803.93  1,699,025  38,3514.54 Regular savings 701,648  1,5120.43  764,943  1,8340.48 Time deposits 1,508,930  32,3674.33  1,330,496  29,7644.50 Total time and interest-bearing deposits 5,227,098  83,7343.23  4,931,887  85,4783.49          Short-term borrowings 6,076  150.50  19,816  2472.51 Long-term debt 208,978  4,4894.33  271,243  5,6604.20 Subordinated notes 149,382  4,5626.16  148,881  4,5626.16 Total borrowings 364,436  9,0665.02  439,940  10,4694.79 Total interest-bearing liabilities 5,591,534  92,8003.35  5,371,827  95,9473.59 Noninterest-bearing deposits 1,398,396     1,396,917    Operating lease liabilities 30,236     33,774    Accrued expenses and other liabilities 57,382     62,981    Total liabilities 7,077,548     6,865,499    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,989,930  2.68  6,768,744  2.85          Shareholders' Equity:        Common stock 157,784     157,784    Additional paid-in capital 301,830     300,052    Retained earnings and other equity 443,092     385,723    Total shareholders' equity 902,706     843,559    Total liabilities and shareholders' equity$7,980,254    $7,709,058    Net interest income $117,124   $103,061           Net interest spread  2.28   1.93 Effect of net interest-free funding sources  0.86   0.93 Net interest margin  3.14%  2.86%Ratio of average interest-earning assets to average interest-bearing liabilities 134.37%    134.91%            * 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 $1.2 million for the six months ended June 30, 2025 and 2024.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.          Univest Financial CorporationLoan Portfolio Overview (Unaudited)June 30, 2025     (Dollars in thousands)    Industry DescriptionTotal Outstanding Balance  % of Commercial Loan Portfolio CRE - Retail$453,445 8.4%Animal Production 401,946 7.5 CRE - Multi-family 360,345 6.7 CRE - 1-4 Family Residential Investment 279,322 5.2 CRE - Office 262,374 4.9 Hotels & Motels (Accommodation) 222,878 4.1 CRE - Industrial / Warehouse 222,234 4.1 Specialty Trade Contractors 197,138 3.7 Nursing and Residential Care Facilities 167,978 3.1 Homebuilding (tract developers, remodelers) 154,166 2.9 Merchant Wholesalers, Durable Goods 140,876 2.6 Repair and Maintenance 135,318 2.5 Motor Vehicle and Parts Dealers 132,852 2.5 Crop Production 113,684 2.1 CRE - Mixed-Use - Residential 113,422 2.1 Wood Product Manufacturing 99,041 1.8 Food Services and Drinking Places 88,822 1.7 Real Estate Lenders, Secondary Market Financing 87,750 1.6 Administrative and Support Services 86,092 1.6 Professional, Scientific, and Technical Services 85,567 1.6 Merchant Wholesalers, Nondurable Goods 81,836 1.5 Private Equity & Special Purpose Entities (except 52592) 76,957 1.4 CRE - Mixed-Use - Commercial 76,067 1.4 Fabricated Metal Product Manufacturing 72,635 1.4 Amusement, Gambling, and Recreation Industries 69,971 1.3 Education 65,839 1.2 Religious Organizations, Advocacy Groups 65,568 1.2 Personal and Laundry Services 63,886 1.2 Miniwarehouse / Self-Storage 63,531 1.2 Food Manufacturing 53,682 1.0 Industries with >$50 million in outstandings$4,495,222 83.6%Industries with <$50 million in outstandings$880,273 16.4%Total Commercial Loans$5,375,495 100.0%          Consumer Loans and Lease FinancingsTotal Outstanding Balance   Real Estate-Residential Secured for Personal Purpose 984,166   Real Estate-Home Equity Secured for Personal Purpose 195,014   Loans to Individuals 14,069   Lease Financings 232,441   Total - Consumer Loans and Lease Financings$1,425,690        Total$6,801,185         Univest Financial CorporationNon-GAAP ReconciliationJune 30, 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, As of or for the six months ended,(Dollars in thousands)06/30/25 03/31/25 12/31/24 09/30/24 06/30/24 06/30/25 06/30/24Net income$19,978  $22,395  $18,941  $18,578  $18,107  $42,373  $38,412 Amortization of intangibles, net of tax 103   103   122   130   149   206   296 Net income before amortization of intangibles$20,081  $22,498  $19,063  $18,708  $18,256  $42,579  $38,708               Shareholders' equity$916,733  $903,472  $887,301  $877,071  $854,137  $916,733  $854,137 Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)Other intangibles (a) (2,040)  (2,104)  (2,263)  (2,147)  (2,157)  (2,040)  (2,157)Tangible common equity$739,183  $725,858  $709,528  $699,414  $676,470  $739,183  $676,470               Total assets$7,939,056  $7,975,167  $8,128,417  $8,205,737  $7,855,446  $7,939,056  $7,855,446 Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)Other intangibles (a) (2,040)  (2,104)  (2,263)  (2,147)  (2,157)  (2,040)  (2,157)Tangible assets$7,761,506  $7,797,553  $7,950,644  $8,028,080  $7,677,779  $7,761,506  $7,677,779               Average shareholders' equity$908,536  $896,811  $880,237  $864,406  $844,572  $902,706  $843,559 Average goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)Average other intangibles (a) (2,068)  (2,162)  (2,146)  (2,086)  (2,222)  (2,114)  (2,271)Average tangible common equity$730,958  $719,139  $702,581  $686,810  $666,840  $725,082  $665,778               (a) Amount does not include mortgage servicing rights

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