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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 _______________________ 
FORM 8-K 
_______________________ 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 2024
 _______________________ 
UNIVEST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
  
Pennsylvania   0-7617   23-1886144
(State or other jurisdiction   (Commission   (I.R.S. Employer
of incorporation)   File Number)   Identification No.)
14 North Main Street, Souderton, Pennsylvania 18964
(Address of principal executive office)(Zip Code)
Registrant’s telephone number, including area code (215) 721-2400
Not applicable
(Former name or former address, if changed since last report)
 _______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b))
☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c))
Securities registered pursuant to Section 12(b) of the Act:
Title of class Trading Symbol Name of exchange on which registered
Common Stock, $5 par value UVSP The NASDAQ Stock Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02 Results of Operations and Financial Condition
On January 24, 2024, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2023 fourth quarter and full year earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
Exhibit No.    Description of Document
99.1   
104 The cover page from the Corporation's Form 8-K, formatted in Inline XBRL



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Univest Financial Corporation
By: /s/ Brian J. Richardson
Name: Brian J. Richardson
Title: Senior Executive Vice President,
Chief Financial Officer
January 25, 2024


EXHIBIT INDEX
 
Exhibit No.    Description of Document
99.1   
104 The cover page from the Corporation's Form 8-K, formatted in Inline XBRL


EX-99.1 2 exhibit991earningsrelease1.htm EX-99.1 Document

Exhibit 99.1
NEWS
logoa.jpg

CONTACT:     Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net                     

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION
REPORTS FOURTH QUARTER and 2023 RESULTS


SOUDERTON, Pa., January 24, 2024 - 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, 2023 was $16.3 million, or $0.55 diluted earnings per share, compared to net income of $23.8 million, or $0.81 diluted earnings per share, for the quarter ended December 31, 2022.

Loans
Gross loans and leases decreased $7.7 million, or 0.1% (0.5% annualized), from September 30, 2023, primarily due to decreases in commercial and construction loans. Gross loans and leases increased $444.0 million, or 7.3%, from December 31, 2022, primarily due to increases in commercial real estate, residential mortgage loans and lease financings.
Deposits and Liquidity
Total deposits decreased $63.4 million, or 1.0% (3.9% annualized), from September 30, 2023, due to decreases in commercial, public funds and brokered deposits, partially offset by an increase in consumer deposits. Total deposits increased $462.3 million, or 7.8%, from December 31, 2022, primarily due to increases in public funds and brokered deposits partially, offset by decreases in commercial and consumer deposits. Noninterest-bearing deposits represented 23.0% of total deposits at December 31, 2023, up from 22.2% at September 30, 2023. At December 31, 2023, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 23.3% of total deposits, up from 20.8% at September 30, 2023.



As of December 31, 2023, the Corporation had cash and cash equivalents totaling $249.8 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.4 billion at December 31, 2023, of which $1.9 billion was available. The Corporation and its subsidiaries also maintained unused uncommitted funding sources from correspondent banks of $369.0 million at December 31, 2023. 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 Margin
Net interest income of $52.8 million for the three months ended December 31, 2023 decreased $830 thousand, or 1.5%, from the three months ended September 30, 2023, and $9.2 million, or 14.8%, from the three months ended December 31, 2022. The decrease in net interest income was due to increases in the cost of funds and the average balance of interest-bearing liabilities, partially offset by an increase in the yield and average balance of interest-earning assets.

Net interest margin, on a tax-equivalent basis, was 2.84% for the fourth quarter of 2023, compared to 2.96% for the third quarter of 2023 and 3.76% for the fourth quarter of 2022. Excess liquidity reduced net interest margin by approximately ten basis points for the quarter ended December 31, 2023 compared to approximately four basis points for the quarter ended September 30, 2023 and approximately one basis point for the quarter ended December 31, 2022.

Noninterest Income
Noninterest income for the quarter ended December 31, 2023 was $18.6 million, a decrease of $1.8 million, or 9.0%, from the comparable period in the prior year.

Investment advisory commission and fee income decreased $1.0 million, or 18.3%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year. This decrease was primarily driven by a $1.2 million adjustment recorded in the fourth quarter of 2022 for previously unrecorded revenue.

Bank owned life insurance ("BOLI") decreased $407 thousand, or 33.1%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to a death benefit claim of $526 thousand received in the fourth quarter of 2022.

Other income decreased $1.2 million, or 55.6%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to a $1.5 million decrease in interest rate swap income.



Net gain on mortgage banking activities increased $373 thousand, or 85.6%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to increased salable volume.

Noninterest Expense
Noninterest expense for the quarter ended December 31, 2023 was $49.0 million, an increase of $1.7 million, or 3.6%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $293 thousand, or 1.0%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year. The increase reflects our expansion into Maryland and Western Pennsylvania, increased medical claims expense and reduced capitalized compensation, driven by lower loan production. These increases were partially offset by decreases due to the staff reduction that was announced during the second quarter of 2023 and a reduction in incentive compensation due to decreased profitability in current the year.

Deposit insurance premiums increased $642 thousand, or 90.7%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily driven by an increased industry-wide assessment rate and an increase in our assessment base. Data processing increased $405 thousand, or 10.0%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to our investments in technology in recent years and general price increases incurred in the second half of 2023. Other expense increased $343 thousand, or 4.9%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to increases in retirement plan costs of $236 thousand.

Tax Provision
The effective income tax rate was 20.3% for the quarter ended December 31, 2023, compared to an effective tax rate of 19.6% for the quarter ended December 31, 2022. The effective tax rates for the quarters ended December 31, 2023 and 2022 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $40.1 million at December 31, 2023 and September 30, 2023 and $33.5 million at December 31, 2022.

Net loan and lease charge-offs were $1.1 million for the three months ended December 31, 2023 compared to $969 thousand and $908 thousand for the three months ended September 30, 2023 and December 31, 2022, respectively. Net loan and lease charge-offs were $5.4 million and $3.9 million for the years ended December 31, 2023 and December 31, 2022, respectively.



The provision for credit losses was $1.9 million for the three months ended December 31, 2023 compared to $2.0 million and $5.4 million for the three months ended September 30, 2023 and December 31, 2022, respectively. The provision for credit losses was $10.8 million for the year ended December 31, 2023 compared to $12.2 million for the year ended December 31, 2022. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.30% at December 31, 2023 compared to 1.28% at September 30, 2023 and 1.29% December 31, 2022.

Dividend
On January 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 21, 2024 to shareholders of record as of February 7, 2024.

Conference Call
Univest will host a conference call to discuss fourth quarter 2023 results on Thursday, January 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=bfe2e840&confId=59386. The general public can access the call by dialing 1-833-470-1428; using Access Code 989044. A replay of the conference call will be available through February 22, 2024 by dialing 1-866-813-9403; using Access Code 607497.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.8 billion in assets and $4.7 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 2023. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  
# # #
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs; (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) changes in economic conditions nationally and in our market; (6) economic assumptions that may impact our allowance for credit losses calculation; (7) legislative, regulatory, accounting or tax changes; (8) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (9) technological issues that may adversely affect our operations or those of our customers; (10) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (11) changes in the securities markets; (12) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (13) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (14) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP - ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2023
(Dollars in thousands)
Balance Sheet (Period End) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
ASSETS
Cash and due from banks $ 72,815  $ 68,900  $ 80,795  $ 71,215  $ 84,176 
Interest-earning deposits with other banks 176,984  221,441  59,616  67,109  68,623 
Cash and cash equivalents 249,799  290,341  140,411  138,324  152,799 
Investment securities held-to-maturity 145,777  149,451  153,509  151,347  154,727 
Investment securities available for sale, net of allowance for credit losses 351,553  334,538  356,164  367,656  350,256 
Investments in equity securities 3,293  4,054  3,443  3,105  2,579 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost 40,499  42,417  42,811  43,792  33,841 
Loans held for sale 11,637  16,473  29,526  5,425  5,037 
Loans and leases held for investment 6,567,214  6,574,958  6,462,238  6,239,804  6,123,230 
Less: Allowance for credit losses, loans and leases (85,387) (83,837) (82,709) (80,034) (79,004)
Net loans and leases held for investment 6,481,827  6,491,121  6,379,529  6,159,770  6,044,226 
Premises and equipment, net 51,441  51,287  52,058  52,334  50,939 
Operating lease right-of-use assets 31,795  31,053  30,237  31,663  30,059 
Goodwill 175,510  175,510  175,510  175,510  175,510 
Other intangibles, net of accumulated amortization 10,950  11,079  10,923  11,044  11,384 
Bank owned life insurance 131,344  130,522  129,715  128,926  120,297 
Accrued interest and other assets 91,793  100,220  96,314  90,095  90,362 
Total assets $ 7,777,218  $ 7,828,066  $ 7,600,150  $ 7,358,991  $ 7,222,016 
LIABILITIES
Noninterest-bearing deposits $ 1,468,320  $ 1,432,559  $ 1,582,767  $ 1,799,225  $ 2,047,263 
Interest-bearing deposits: 4,907,461  5,006,606  4,404,635  4,035,432  3,866,263 
Total deposits 6,375,781  6,439,165  5,987,402  5,834,657  5,913,526 
Short-term borrowings 6,306  14,676  244,666  271,881  197,141 
Long-term debt 310,000  320,000  320,000  220,000  95,000 
Subordinated notes 148,761  148,636  148,510  148,385  148,260 
Operating lease liabilities 34,851  34,017  33,428  34,846  33,153 
Accrued expenses and other liabilities 62,311  64,374  60,922  50,726  58,436 
Total liabilities 6,938,010  7,020,868  6,794,928  6,560,495  6,445,516 
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 301,066  300,171  299,212  298,167  300,808 
Retained earnings 474,691  464,634  453,806  443,493  428,637 
Accumulated other comprehensive loss, net of tax benefit (50,646) (71,586) (61,034) (55,550) (62,104)
Treasury stock, at cost (43,687) (43,805) (44,546) (45,398) (48,625)
Total shareholders’ equity 839,208  807,198  805,222  798,496  776,500 
Total liabilities and shareholders’ equity $ 7,777,218  $ 7,828,066  $ 7,600,150  $ 7,358,991  $ 7,222,016 
For the three months ended, For the twelve months ended,
Balance Sheet (Average) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Assets $ 7,865,523  $ 7,693,983  $ 7,440,798  $ 7,219,211  $ 7,019,381  $ 7,557,030  $ 6,956,292 
Investment securities, net of allowance for credit losses 489,587  506,341  518,995  515,880  505,717  507,625  515,192 
Loans and leases, gross 6,594,233  6,537,169  6,372,342  6,164,890  5,979,581  6,418,664  5,651,265 
Deposits 6,470,141  6,222,710  5,844,582  5,834,415  5,837,823  6,095,058  5,841,832 
Shareholders' equity 814,941  811,515  806,709  789,153  767,192  805,667  771,499 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
December 31, 2023
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Commercial, financial and agricultural $ 989,723  $ 1,050,004  $ 1,039,265  $ 1,032,753  $ 1,088,928 
Real estate-commercial 3,302,798  3,275,140  3,221,993  3,128,210  3,027,955 
Real estate-construction 394,462  427,561  413,404  376,569  381,811 
Real estate-residential secured for business purpose 517,002  516,471  517,521  498,505  478,254 
Real estate-residential secured for personal purpose 909,015  861,122  832,632  779,557  730,395 
Real estate-home equity secured for personal purpose 179,282  176,855  175,090  172,073  176,699 
Loans to individuals 27,749  27,331  25,544  28,656  27,873 
Lease financings 247,183  240,474  236,789  223,481  211,315 
Total loans and leases held for investment, net of deferred income 6,567,214  6,574,958  6,462,238  6,239,804  6,123,230 
Less: Allowance for credit losses, loans and leases (85,387) (83,837) (82,709) (80,034) (79,004)
Net loans and leases held for investment $ 6,481,827  $ 6,491,121  $ 6,379,529  $ 6,159,770  $ 6,044,226 
Asset Quality Data (Period End) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022
Nonaccrual loans and leases, including nonaccrual loans held for sale* $ 20,527  $ 18,085  $ 15,087  $ 11,362  $ 13,353 
Accruing loans and leases 90 days or more past due 534  2,135  55  1,996  875 
Total nonperforming loans and leases 21,061  20,220  15,142  13,358  14,228 
Other real estate owned 19,032  19,916  19,345  19,000  19,258 
Total nonperforming assets $ 40,093  $ 40,136  $ 34,487  $ 32,358  $ 33,486 
Nonaccrual loans and leases / Loans and leases held for investment 0.31  % 0.28  % 0.23  % 0.18  % 0.22  %
Nonperforming loans and leases / Loans and leases held for investment 0.32  % 0.31  % 0.23  % 0.21  % 0.23  %
Nonperforming assets / Total assets 0.52  % 0.51  % 0.45  % 0.44  % 0.46  %
Allowance for credit losses, loans and leases $ 85,387  $ 83,837  $ 82,709  $ 80,034  $ 79,004 
Allowance for credit losses, loans and leases / Loans and leases held for investment 1.30  % 1.28  % 1.28  % 1.28  % 1.29  %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases 415.97  % 463.57  % 548.21  % 704.40  % 591.66  %
Allowance for credit losses, loans and leases / Nonperforming loans and leases 405.43  % 414.62  % 546.22  % 599.15  % 555.27  %
*Includes a $5.8 million loan held for sale at September 30, 2023.
For the three months ended, For the twelve months ended,
12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Net loan and lease charge-offs $ 1,074  $ 969  $ 512  $ 2,842  $ 908  $ 5,397  $ 3,895 
Net loan and lease charge-offs (annualized)/Average loans and leases 0.06  % 0.06  % 0.03  % 0.19  % 0.06  % 0.08  % 0.07  %


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2023
(Dollars in thousands, except per share data)
For the three months ended, For the twelve months ended,
For the period: 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Interest income $ 101,232  $ 97,106  $ 90,139  $ 83,253  $ 77,401  $ 371,730  $ 252,193 
Interest expense 48,472  43,516  35,809  23,936  15,485  151,733  33,896 
Net interest income 52,760  53,590  54,330  59,317  61,916  219,997  218,297 
Provision for credit losses 1,931  2,024  3,428  3,387  5,416  10,770  12,198 
Net interest income after provision for credit losses 50,829  51,566  50,902  55,930  56,500  209,227  206,099 
Noninterest income:
Trust fee income 1,943  1,910  1,924  1,955  1,808  7,732  7,743 
Service charges on deposit accounts 1,960  1,816  1,725  1,547  1,575  7,048  6,175 
Investment advisory commission and fee income 4,561  4,843  4,708  4,752  5,585  18,864  19,748 
Insurance commission and fee income 4,596  4,852  5,108  6,487  4,424  21,043  19,065 
Other service fee income 2,967  3,020  3,318  3,076  3,236  12,381  12,425 
Bank owned life insurance income 823  806  789  767  1,230  3,185  3,787 
Net gain on sales of investment securities —  —  —  —  —  —  30 
Net gain on mortgage banking activities 809  1,216  1,039  625  436  3,689  4,412 
Other income 961  228  1,222  471  2,164  2,882  4,500 
Total noninterest income 18,620  18,691  19,833  19,680  20,458  76,824  77,885 
Noninterest expense:
Salaries, benefits and commissions 29,321  29,978  29,875  31,014  29,028  120,188  115,806 
Net occupancy 2,751  2,594  2,614  2,727  2,551  10,686  10,193 
Equipment 1,066  1,087  986  993  977  4,132  3,904 
Data processing 4,444  4,189  4,137  4,029  4,039  16,799  15,215 
Professional fees 1,768  1,763  1,669  1,941  1,829  7,141  9,332 
Marketing and advertising 632  555  622  371  739  2,180  2,462 
Deposit insurance premiums 1,350  1,258  1,116  1,101  708  4,825  3,075 
Intangible expenses 212  220  253  253  301  938  1,293 
Restructuring charges 189  —  1,330  —  184  1,519  184 
Other expense 7,313  7,344  7,197  7,100  6,970  28,954  25,310 
Total noninterest expense 49,046  48,988  49,799  49,529  47,326  197,362  186,774 
Income before taxes 20,403  21,269  20,936  26,081  29,632  88,689  97,210 
Income tax expense 4,149  4,253  4,136  5,047  5,796  17,585  19,090 
Net income $ 16,254  $ 17,016  $ 16,800  $ 21,034  $ 23,836  $ 71,104  $ 78,120 
Net income per share:
Basic $ 0.55  $ 0.58  $ 0.57  $ 0.72  $ 0.82  $ 2.42  $ 2.66 
Diluted $ 0.55  $ 0.58  $ 0.57  $ 0.71  $ 0.81  $ 2.41  $ 2.64 
Dividends declared per share $ 0.21  $ 0.21  $ 0.21  $ 0.21  $ 0.21  $ 0.84  $ 0.83 
Weighted average shares outstanding 29,500,147  29,479,066  29,439,392  29,312,265  29,251,293  29,433,359  29,392,606 
Period end shares outstanding 29,511,721  29,508,128  29,471,124  29,427,696  29,271,915  29,511,721  29,271,915 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2023
For the three months ended, For the twelve months ended,
Profitability Ratios (annualized) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Return on average assets 0.82  % 0.88  % 0.91  % 1.18  % 1.35  % 0.94  % 1.12  %
Return on average assets, excluding restructuring charges (1) 0.83  % 0.88  % 0.96  % 1.18  % 1.36  % 0.96  % 1.13  %
Return on average shareholders' equity 7.91  % 8.32  % 8.35  % 10.81  % 12.33  % 8.83  % 10.13  %
Return on average shareholders' equity, excluding restructuring charges (1) 7.99  % 8.32  % 8.88  % 10.81  % 12.40  % 8.97  % 10.14  %
Return on average tangible common equity (1)(3) 10.23  % 10.77  % 10.85  % 14.11  % 16.23  % 11.45  % 13.36  %
Return on average tangible common equity, excluding restructuring charges (1)(3) 10.32  % 10.77  % 11.52  % 14.11  % 16.33  % 11.64  % 13.39  %
Net interest margin (FTE) 2.84  % 2.96  % 3.14  % 3.58  % 3.76  % 3.12  % 3.38  %
Efficiency ratio (2) 68.3  % 67.3  % 66.7  % 62.2  % 56.9  % 66.0  % 62.4  %
Efficiency ratio, excluding restructuring charges (1)(2) 68.0  % 67.3  % 64.9  % 62.2  % 56.7  % 65.5  % 62.4  %
Capitalization Ratios
Dividends declared to net income 38.1  % 36.4  % 36.8  % 29.2  % 25.8  % 34.8  % 31.2  %
Shareholders' equity to assets (Period End) 10.79  % 10.31  % 10.59  % 10.85  % 10.75  % 10.79  % 10.75  %
Tangible common equity to tangible assets (1) 8.70  % 8.22  % 8.45  % 8.63  % 8.49  % 8.70  % 8.49  %
Common equity book value per share $ 28.44  $ 27.36  $ 27.32  $ 27.13  $ 26.53  $ 28.44  $ 26.53 
Tangible common equity book value per share (1) $ 22.41  $ 21.32  $ 21.27  $ 21.07  $ 20.42  $ 22.41  $ 20.42 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio 9.36  % 9.43  % 9.59  % 9.71  % 9.81  % 9.36  % 9.81  %
Common equity tier 1 risk-based capital ratio 10.61  % 10.32  % 10.26  % 10.43  % 10.37  % 10.61  % 10.37  %
Tier 1 risk-based capital ratio 10.61  % 10.32  % 10.26  % 10.43  % 10.37  % 10.61  % 10.37  %
Total risk-based capital ratio 13.93  % 13.58  % 13.54  % 13.78  % 13.67  % 13.93  % 13.67  %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended,
Tax Equivalent Basis December 31, 2023 September 30, 2023
Average Income/ Average Average Income/ Average
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 280,693  $ 3,804  5.38  % $ 143,109  $ 1,865  5.17  %
Obligations of state and political subdivisions* 2,277  14  2.44  2,281  16  2.78 
Other debt and equity securities 487,310  3,678  2.99  504,060  3,540  2.79 
Federal Home Loan Bank, Federal Reserve Bank and other stock 41,361  767  7.36  40,406  712  6.99 
Total interest-earning deposits, investments and other interest-earning assets 811,641  8,263  4.04  689,856  6,133  3.53 
Commercial, financial, and agricultural loans 973,450  17,485  7.13  995,355  17,545  6.99 
Real estate—commercial and construction loans 3,590,477  50,715  5.60  3,552,709  49,548  5.53 
Real estate—residential loans 1,585,705  19,133  4.79  1,543,360  18,270  4.70 
Loans to individuals 27,667  558  8.00  26,538  525  7.85 
Municipal loans and leases* 230,394  2,438  4.20  234,685  2,430  4.11 
Lease financings 186,540  2,897  6.16  184,522  2,928  6.30 
     Gross loans and leases 6,594,233  93,226  5.61  6,537,169  91,246  5.54 
          Total interest-earning assets 7,405,874  101,489  5.44  7,227,025  97,379  5.35 
Cash and due from banks 54,981  62,673 
Allowance for credit losses, loans and leases (84,386) (83,827)
Premises and equipment, net 51,489  52,071 
Operating lease right-of-use assets 31,251  31,647 
Other assets 406,314  404,394 
      Total assets $ 7,865,523  $ 7,693,983 
Liabilities:
Interest-bearing checking deposits $ 1,193,386  $ 8,409  2.80  % $ 1,070,063  $ 6,703  2.49  %
Money market savings 1,845,153  21,133  4.54  1,645,210  17,850  4.30 
Regular savings 784,937  874  0.44  828,672  861  0.41 
Time deposits 1,188,054  12,748  4.26  1,140,622  11,668  4.06 
Total time and interest-bearing deposits 5,011,530  43,164  3.42  4,684,567  37,082  3.14 
Short-term borrowings 9,814  1  0.04  93,028  1,117  4.76 
Long-term debt 318,805  3,026  3.77  320,000  3,036  3.76 
Subordinated notes 148,693  2,281  6.09  148,568  2,281  6.09 
     Total borrowings 477,312  5,308  4.41  561,596  6,434  4.55 
     Total interest-bearing liabilities 5,488,842  48,472  3.50  5,246,163  43,516  3.29 
Noninterest-bearing deposits 1,458,610  1,538,143 
Operating lease liabilities 34,255  34,788 
Accrued expenses and other liabilities 68,875  63,374 
     Total liabilities 7,050,582  6,882,468 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,947,452  2.77  6,784,306  2.54 
Shareholders' Equity:
Common stock 157,784  157,784 
Additional paid-in capital 300,558  299,575 
Retained earnings and other equity 356,599  354,156 
     Total shareholders' equity 814,941  811,515 
     Total liabilities and shareholders' equity $ 7,865,523  $ 7,693,983 
Net interest income $ 53,017  $ 53,863 
Net interest spread 1.94  2.06 
Effect of net interest-free funding sources 0.90  0.90 
Net interest margin 2.84  % 2.96  %
Ratio of average interest-earning assets to average interest-bearing liabilities 134.93  % 137.76  %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustment.
Net interest income includes net deferred costs amortization of $428 thousand and $563 thousand for the three months ended December 31, 2023 and September 30, 2023.
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 December 31, 2023 and September 30, 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended December 31,
Tax Equivalent Basis 2023 2022
Average Income/ Average Average Income/ Average
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 280,693  $ 3,804  5.38  % $ 57,059  $ 487  3.39  %
Obligations of state and political subdivisions* 2,277  14  2.44  2,266  17  2.98 
Other debt and equity securities 487,310  3,678  2.99  503,451  3,316  2.61 
Federal Home Loan Bank, Federal Reserve Bank and other stock 41,361  767  7.36  29,401  493  6.65 
Total interest-earning deposits, investments and other interest-earning assets 811,641  8,263  4.04  592,177  4,313  2.89 
Commercial, financial, and agricultural loans 973,450  17,485  7.13  1,007,121  14,471  5.70 
Real estate—commercial and construction loans 3,590,477  50,715  5.60  3,223,822  39,459  4.86 
Real estate—residential loans 1,585,705  19,133  4.79  1,335,220  14,340  4.26 
Loans to individuals 27,667  558  8.00  26,772  401  5.94 
Municipal loans and leases* 230,394  2,438  4.20  233,684  2,433  4.13 
Lease financings 186,540  2,897  6.16  152,962  2,416  6.27 
     Gross loans and leases 6,594,233  93,226  5.61  5,979,581  73,520  4.88 
          Total interest-earning assets 7,405,874  101,489  5.44  6,571,758  77,833  4.70 
Cash and due from banks 54,981  56,428 
Allowance for credit losses, loans and leases (84,386) (75,390)
Premises and equipment, net 51,489  50,803 
Operating lease right-of-use assets 31,251  30,413 
Other assets 406,314  385,369 
      Total assets $ 7,865,523  $ 7,019,381 
Liabilities:
Interest-bearing checking deposits $ 1,193,386  $ 8,409  2.80  % $ 924,012  $ 2,746  1.18  %
Money market savings 1,845,153  21,133  4.54  1,365,502  7,670  2.23 
Regular savings 784,937  874  0.44  1,045,261  492  0.19 
Time deposits 1,188,054  12,748  4.26  433,010  1,586  1.45 
Total time and interest-bearing deposits 5,011,530  43,164  3.42  3,767,785  12,494  1.32 
Short-term borrowings 9,814  1  0.04  101,126  852  3.34 
Long-term debt 318,805  3,026  3.77  95,000  324  1.35 
Subordinated notes 148,693  2,281  6.09  124,250  1,815  5.80 
     Total borrowings 477,312  5,308  4.41  320,376  2,991  3.70 
     Total interest-bearing liabilities 5,488,842  48,472  3.50  4,088,161  15,485  1.50 
Noninterest-bearing deposits 1,458,610  2,070,038 
Operating lease liabilities 34,255  33,492 
Accrued expenses and other liabilities 68,875  60,498 
     Total liabilities 7,050,582  6,252,189 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,947,452  2.77  6,158,199  1.00 
Shareholders' Equity:
Common stock 157,784  157,784 
Additional paid-in capital 300,558  300,121 
Retained earnings and other equity 356,599  309,287 
     Total shareholders' equity 814,941  767,192 
     Total liabilities and shareholders' equity $ 7,865,523  $ 7,019,381 
Net interest income $ 53,017  $ 62,348 
Net interest spread 1.94  3.20 
Effect of net interest-free funding sources 0.90  0.56 
Net interest margin 2.84  % 3.76  %
Ratio of average interest-earning assets to average interest-bearing liabilities 134.93  % 160.75  %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $428 thousand and $516 thousand for the three months ended December 31, 2023 and 2022, 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 December 31, 2023 and 2022 have been calculated 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 2023 2022
Average Income/ Average Average Income/ Average
(Dollars in thousands) Balance Expense Rate Balance Expense Rate
Assets:
Interest-earning deposits with other banks $ 130,309  $ 6,660  5.11  % $ 325,875  $ 1,920  0.59  %
U.S. government obligations —  —  —  1,929  40  2.07 
Obligations of state and political subdivisions* 2,282  62  2.72  2,302  71  3.08 
Other debt and equity securities 505,343  14,225  2.81  510,961  11,392  2.23 
Federal Home Loan Bank, Federal Reserve Bank and other stock 40,092  2,869  7.16  27,784  1,627  5.86 
Total interest-earning deposits, investments and other interest-earning assets 678,026  23,816  3.51  868,851  15,050  1.73 
Commercial, financial, and agricultural loans 991,505  67,487  6.81  963,755  43,861  4.55 
Real estate—commercial and construction loans 3,483,576  188,644  5.42  3,060,689  127,906  4.18 
Real estate—residential loans 1,505,799  70,349  4.67  1,219,275  47,472  3.89 
Loans to individuals 27,063  2,011  7.43  26,642  1,325  4.97 
Municipal loans and leases* 232,501  9,597  4.13  236,858  9,703  4.10 
Lease financings 178,220  11,025  6.19  144,046  8,791  6.10 
     Gross loans and leases 6,418,664  349,113  5.44  5,651,265  239,058  4.23 
          Total interest-earning assets 7,096,690  372,929  5.25  6,520,116  254,108  3.90 
Cash and due from banks 58,593  57,196 
Allowance for credit losses, loans and leases (82,474) (72,069)
Premises and equipment, net 51,921  51,362 
Operating lease right-of-use assets 31,351  30,443 
Other assets 400,949  369,244 
      Total assets $ 7,557,030  $ 6,956,292 
Liabilities:
Interest-bearing checking deposits $ 1,034,327  $ 23,668  2.29  % $ 884,656  $ 5,010  0.57  %
Money market savings 1,611,169  64,153  3.98  1,389,226  13,835  1.00 
Regular savings 871,332  3,249  0.37  1,056,019  1,269  0.12 
Time deposits 931,944  34,979  3.75  443,845  5,308  1.20 
Total time and interest-bearing deposits 4,448,772  126,049  2.83  3,773,746  25,422  0.67 
Short-term borrowings 148,776  7,095  4.77  60,468  1,389  2.30 
Long-term debt 263,877  9,464  3.59  95,000  1,287  1.35 
Subordinated notes 148,507  9,125  6.14  105,356  5,798  5.50 
     Total borrowings 561,160  25,684  4.58  260,824  8,474  3.25 
     Total interest-bearing liabilities 5,009,932  151,733  3.03  4,034,570  33,896  0.84 
Noninterest-bearing deposits 1,646,286  2,068,086 
Operating lease liabilities 34,474  33,508 
Accrued expenses and other liabilities 60,671  48,629 
     Total liabilities 6,751,363  6,184,793 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,656,218  2.28  6,102,656  0.56 
Shareholders' Equity:
Common stock 157,784  157,784 
Additional paid-in capital 299,804  299,121 
Retained earnings and other equity 348,079  314,594 
     Total shareholders' equity 805,667  771,499 
     Total liabilities and shareholders' equity $ 7,557,030  $ 6,956,292 
Net interest income $ 221,196  $ 220,212 
Net interest spread 2.22  3.06 
Effect of net interest-free funding sources 0.90  0.32 
Net interest margin 3.12  % 3.38  %
Ratio of average interest-earning assets to average interest-bearing liabilities 141.65  % 161.61  %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $2.1 million and $1.8 million for the twelve months ended December 31, 2023 and 2022, 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 twelve months ended December 31, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
December 31, 2023
(Dollars in thousands)
Industry Description Total Outstanding Balance % of Commercial Loan Portfolio
CRE - Retail $ 469,890  9.0  %
Animal Production 361,597  6.9 
CRE - Multi-family 320,176  6.2 
CRE - Office 299,718  5.8 
CRE - 1-4 Family Residential Investment 285,559  5.5 
CRE - Industrial / Warehouse 248,611  4.8 
Hotels & Motels (Accommodation) 190,639  3.7 
Specialty Trade Contractors 164,798  3.2 
Education 161,325  3.1 
Homebuilding (tract developers, remodelers) 153,239  2.9 
Nursing and Residential Care Facilities 150,666  2.9 
Motor Vehicle and Parts Dealers 138,581  2.7 
Merchant Wholesalers, Durable Goods 118,351  2.3 
CRE - Mixed-Use - Residential 110,458  2.1 
Crop Production 103,285  2.0 
Repair and Maintenance 97,682  1.9 
Wood Product Manufacturing 85,292  1.6 
Real Estate Lenders, Secondary Market Financing 80,755  1.6 
Rental and Leasing Services 79,767  1.5 
Fabricated Metal Product Manufacturing 73,545  1.4 
CRE - Mixed-Use - Commercial 72,685  1.4 
Religious Organizations, Advocacy Groups 72,685  1.4 
Personal and Laundry Services 72,117  1.4 
Administrative and Support Services 70,754  1.4 
Amusement, Gambling, and Recreation Industries 70,686  1.4 
Merchant Wholesalers, Nondurable Goods 65,491  1.3 
Food Services and Drinking Places 65,143  1.3 
Private Equity & Special Purpose Entities (except 52592) 63,447  1.2 
Miniwarehouse / Self-Storage 61,964  1.2 
Food Manufacturing 59,662  1.1 
Truck Transportation 53,306  1.0 
Industries with >$50 million in outstandings $ 4,421,874  85.0  %
Industries with <$50 million in outstandings $ 782,111  15.0  %
Total Commercial Loans $ 5,203,985  100.0  %
Consumer Loans and Lease Financings Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose $ 909,015 
Real Estate-Home Equity Secured for Personal Purpose 179,282 
Loans to Individuals 27,749 
Lease Financings 247,183 
Total Consumer Loans and Lease Financings $ 1,363,229 
Total $ 6,567,214 


Univest Financial Corporation
Non-GAAP Reconciliation
December 31, 2023
Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
As of or for the three months ended, As of or for the twelve months ended,
(Dollars in thousands) 12/31/2023 9/30/2023 6/30/2023 3/31/2023 12/31/2022 12/31/2023 12/31/2022
Restructuring charges (a) $ 189  $ —  $ 1,330  $ —  $ 184  $ 1,519  $ 184 
Tax effect of restructuring charges (40) —  (279) —  (39) (319) (39)
Restructuring charges, net of tax $ 149  $ —  $ 1,051  $ —  $ 145  $ 1,200  $ 145 
Net income $ 16,254  $ 17,016  $ 16,800  $ 21,034  $ 23,836  $ 71,104  $ 78,120 
Amortization of intangibles, net of tax 167  174  200  200  238  741  1,021 
Net income before amortization of intangibles $ 16,421  $ 17,190  $ 17,000  $ 21,234  $ 24,074  $ 71,845  $ 79,141 
Shareholders' equity $ 839,208  $ 807,198  $ 805,222  $ 798,496  $ 776,500  $ 839,208  $ 776,500 
Goodwill (175,510) (175,510) (175,510) (175,510) (175,510) (175,510) (175,510)
Other intangibles (b) (2,405) (2,558) (2,767) (3,054) (3,251) (2,405) (3,251)
Tangible common equity $ 661,293  $ 629,130  $ 626,945  $ 619,932  $ 597,739  $ 661,293  $ 597,739 
Total assets $ 7,777,218  $ 7,828,066  $ 7,600,150  $ 7,358,991  $ 7,222,016  $ 7,777,218  $ 7,222,016 
Goodwill (175,510) (175,510) (175,510) (175,510) (175,510) (175,510) (175,510)
Other intangibles (b) (2,405) (2,558) (2,767) (3,054) (3,251) (2,405) (3,251)
Tangible assets $ 7,599,303  $ 7,649,998  $ 7,421,873  $ 7,180,427  $ 7,043,255  $ 7,599,303  $ 7,043,255 
Average shareholders' equity $ 814,941  $ 811,515  $ 806,709  $ 789,153  $ 767,192  $ 805,667  $ 771,499 
Average goodwill (175,510) (175,510) (175,510) (175,510) (175,510) (175,510) (175,510)
Average other intangibles (b) (2,477) (2,680) (2,924) (3,137) (3,355) (2,802) (3,694)
Average tangible common equity $ 636,954  $ 633,325  $ 628,275  $ 610,506  $ 588,327  $ 627,355  $ 592,295 
(a) Associated with financial service center optimization and headcount rationalization expense management strategies
(b) Amount does not include mortgage servicing rights