• Univest Financial Corporation Reports First Quarter Results

    ソース: Nasdaq GlobeNewswire / 24 4 2024 16:15:01   America/New_York

    SOUDERTON, Pa., April 24, 2024 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the "Bank") and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended March 31, 2024 was $20.3 million, or $0.69 diluted earnings per share, compared to net income of $21.0 million, or $0.71 diluted earnings per share, for the quarter ended March 31, 2023.

    One-Time Items
    The financial results for the quarter included a $3.4 million net gain ($2.7 million after-tax), or $0.09 diluted earnings per share, generated from the sale of mortgage servicing rights associated with $591.1 million of serviced loans.

    Loans
    Gross loans and leases increased $11.9 million, or 0.2% (0.8% annualized), from December 31, 2023, primarily due to increases in commercial loans and residential mortgage loans, partially offset by decreases in construction and commercial real estate loans. Gross loans and leases increased $339.3 million, or 5.4%, from March 31, 2023, primarily due to increases in commercial real estate, residential mortgage loans and lease financings, partially offset by a decrease in commercial loans.

    Deposits, Borrowings and Liquidity
    Total deposits increased $29.6 million, or 0.5% (2.0% annualized), from December 31, 2023, primarily due to increases in consumer and brokered deposits, partially offset by decreases in commercial and seasonal public funds deposits. Total deposits increased $570.7 million, or 9.8%, from March 31, 2023, primarily due to increases in consumer, public funds and brokered deposits, partially offset by a decrease in commercial deposits. Noninterest-bearing deposits represented 21.9% of total deposits at March 31, 2024, down from 23.0% at December 31, 2023. At March 31, 2024, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 22.3% of total deposits, down from 23.3% at December 31, 2023.

    Total borrowings decreased $61.4 million, or 13.2% (52.8% annualized), from December 31, 2023, primarily due to pay-downs of long-term FHLB advances of $60.0 million. These borrowings were replaced with $110.2 million of lower cost brokered deposits during the quarter.

    As of March 31, 2024, the Corporation had cash and cash equivalents totaling $201.6 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.4 billion at March 31, 2024, of which $2.1 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $334.0 million at March 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 Margin
    Net interest income of $51.5 million for the first quarter of 2024 decreased $7.9 million, or 13.2%, from the first quarter of 2023 and $1.3 million, or 2.5%, from the fourth quarter of 2023. The decrease in net interest income for the first quarter of 2024 compared to the first quarter of 2023 was due to an increase in the cost of funds and the average balance of interest-bearing liabilities, partially offset by an increase in asset yields and the average balance of interest-earning assets. The decrease in net interest income for the first quarter of 2024 compared to the fourth quarter of 2023 was due to a decrease in the average balance of interest-earning assets, including excess liquidity, and an increase in the cost of funds, partially offset by an increase in asset yields and a decrease in the average balance of interest-bearing liabilities.

    Net interest margin, on a tax-equivalent basis, was 2.88% for the first quarter of 2024, compared to 2.84% for the fourth quarter of 2023 and 3.58% for the first quarter of 2023. Excess liquidity reduced net interest margin by approximately three basis points for the quarter ended March 31, 2024 compared to approximately ten basis points for the quarter ended December 31, 2023. Excess liquidity had no impact on net interest margin for the quarter ended March 31, 2023.

    Noninterest Income
    Noninterest income for the quarter ended March 31, 2024 was $25.6 million, an increase of $5.9 million, or 30.1%, from the comparable period in the prior year.

    Other service fee income increased $3.3 million, or 108.6%, for the quarter ended March 31, 2024, primarily due to the net gain on the sale of mortgage servicing rights as previously mentioned.

    Insurance commission and fee income increased $714 thousand, or 11.0%, for the quarter ended March 31, 2024, primarily due to increases in premiums for group life and health and commercial lines and an increase in contingent commission income of $484 thousand, which were $2.3 million and $1.8 million for the quarters ended March 31, 2024 and 2023, respectively. Contingent income is largely recognized in the first quarter of the year.

    Investment advisory commission and fee income increased $442 thousand, or 9.3%, for the quarter ended March 31, 2024, primarily due to new customer relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance. Service charges on deposit accounts increased $324 thousand, or 20.9%, for the quarter ended March 31, 2024, primarily due to increased treasury management income. Net gain on mortgage banking activities increased $314 thousand, or 50.2%, for the quarter ended March 31, 2024, primarily due to increased salable volume.

    Other income increased $554 thousand, or 117.6%, for the quarter ended March 31, 2024 compared to the three months ended March 31, 2023. Gains on the sale of Small Business Administration loans increased $239 thousand due to increased sale volume. Fees on risk participation agreements for interest rate swaps increased $141 thousand.

    Noninterest Expense
    Noninterest expense for the quarter ended March 31, 2024 was $50.1 million, an increase of $545 thousand, or 1.1%, from the comparable period in the prior year.

    Data processing increased $466 thousand, or 11.6%, for the quarter ended March 31, 2024, primarily due to our investments in technology in recent years, including the launch of our online small business loan and deposit products, and general price increases incurred in the second half of 2023. Salaries, benefits and commissions increased $324 thousand, or 1.0%, for the quarter ended March 31, 2024, primarily driven by decreased capitalized compensation, resulting from lower loan production in the current period, and increased medical claims expense. These increases were partially offset by decreased salary expense primarily due to staff reductions over the last twelve months.

    Other expense decreased $268 thousand, or 3.8%, for the quarter ended March 31, 2024, primarily due to decreases in retirement plan costs of $210 thousand. Professional fees decreased $253 thousand, or 13.0%, for the quarter ended March 31, 2024, primarily due to consultant fees incurred in the first quarter of 2023 related to our digital transformation initiative.

    Tax Provision
    The effective income tax rate was 20.5% for the quarter ended March 31, 2024, compared to an effective tax rate of 19.4% for the quarter ended March 31, 2023. The discrete tax effect of vested equity compensation awards unfavorably impacted the first quarter of 2024 by 74 basis points and favorably impacted the first quarter of 2023 by 76 basis points. Additionally, the effective tax rates for the three months ended March 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 Losses
    Nonperforming assets were $40.0 million at March 31, 2024, compared to $40.1 million at December 31, 2023 and $32.4 million at March 31, 2023.

    Net loan and lease charge-offs were $1.4 million for the three months ended March 31, 2024 compared to $1.1 million and $2.8 million for the three months ended December 31, 2023 and March 31, 2023, respectively.

    The provision for credit losses was $1.4 million for the three months ended March 31, 2024 compared to $1.9 million and $3.4 million for the three months ended December 31, 2023 and March 31, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.30% at March 31, 2024 and December 31, 2023 and 1.28% March 31, 2023.

    Dividend and Share Repurchases
    On April 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on May 22, 2024 to shareholders of record as of May 8, 2024. During the quarter ended March 31, 2024, the Corporation repurchased 315,507 shares of common stock at an average price of $20.25 per share. Including brokerage fees and excise tax, the average price per share was $20.48. As of March 31, 2024, 887,182 shares are available for repurchase under the Share Repurchase Plan.

    Conference Call
    Univest will host a conference call to discuss first quarter 2024 results on Thursday, April 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=1f74990c&confId=63330. The general public can access the call by dialing 1-833-470-1428; using Access Code 468018. A replay of the conference call will be available through May 25, 2024 by dialing 1-866-813-9403; using Access Code 450536.

    About Univest Financial Corporation
    Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.7 billion in assets and $5.0 billion in assets under management and supervision through its Wealth Management lines of business at March 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; (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) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market; (7) economic assumptions that may impact our allowance for credit losses calculation; (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) technological issues that may adversely affect our operations or those of our customers; (11) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (12) changes in the securities markets; (13) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (14) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (15) 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)
    March 31, 2024
    (Dollars in thousands)          
               
    Balance Sheet (Period End) 03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
    ASSETS          
    Cash and due from banks $49,318  $72,815  $68,900  $80,795  $71,215 
    Interest-earning deposits with other banks  152,288   176,984   221,441   59,616   67,109 
    Cash and cash equivalents  201,606   249,799   290,341   140,411   138,324 
    Investment securities held-to-maturity  143,474   145,777   149,451   153,509   151,347 
    Investment securities available for sale, net of allowance for credit losses  350,819   351,553   334,538   356,164   367,656 
    Investments in equity securities  3,355   3,293   4,054   3,443   3,105 
    Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost  37,394   40,499   42,417   42,811   43,792 
    Loans held for sale  13,188   11,637   16,473   29,526   5,425 
    Loans and leases held for investment  6,579,086   6,567,214   6,574,958   6,462,238   6,239,804 
    Less: Allowance for credit losses, loans and leases  (85,632)  (85,387)  (83,837)  (82,709)  (80,034)
    Net loans and leases held for investment  6,493,454   6,481,827   6,491,121   6,379,529   6,159,770 
    Premises and equipment, net  48,739   51,441   51,287   52,058   52,334 
    Operating lease right-of-use assets  30,702   31,795   31,053   30,237   31,663 
    Goodwill  175,510   175,510   175,510   175,510   175,510 
    Other intangibles, net of accumulated amortization  7,473   10,950   11,079   10,923   11,044 
    Bank owned life insurance  137,896   131,344   130,522   129,715   128,926 
    Accrued interest and other assets  102,958   95,203   100,220   96,314   90,095 
    Total assets $7,746,568  $7,780,628  $7,828,066  $7,600,150  $7,358,991 
               
    LIABILITIES          
    Noninterest-bearing deposits $1,401,806  $1,468,320  $1,432,559  $1,582,767  $1,799,225 
    Interest-bearing deposits:  5,003,552   4,907,461   5,006,606   4,404,635   4,035,432 
    Total deposits  6,405,358   6,375,781   6,439,165   5,987,402   5,834,657 
    Short-term borrowings  4,816   6,306   14,676   244,666   271,881 
    Long-term debt  250,000   310,000   320,000   320,000   220,000 
    Subordinated notes  148,886   148,761   148,636   148,510   148,385 
    Operating lease liabilities  33,744   34,851   34,017   33,428   34,846 
    Accrued expenses and other liabilities  60,095   65,721   64,374   60,922   50,726 
    Total liabilities  6,902,899   6,941,420   7,020,868   6,794,928   6,560,495 
               
    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  298,914   301,066   300,171   299,212   298,167 
    Retained earnings  488,790   474,691   464,634   453,806   443,493 
    Accumulated other comprehensive loss, net of tax benefit  (54,740)  (50,646)  (71,586)  (61,034)  (55,550)
    Treasury stock, at cost  (47,079)  (43,687)  (43,805)  (44,546)  (45,398)
    Total shareholders’ equity  843,669   839,208   807,198   805,222   798,496 
    Total liabilities and shareholders’ equity $7,746,568  $7,780,628  $7,828,066  $7,600,150  $7,358,991 
               
               
      For the three months ended,
    Balance Sheet (Average) 03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
    Assets $7,696,575  $7,865,634  $7,693,983  $7,440,798  $7,219,211 
    Investment securities, net of allowance for credit losses  500,983   489,587   506,341   518,995   515,880 
    Loans and leases, gross  6,577,365   6,594,233   6,537,169   6,372,342   6,164,890 
    Deposits  6,303,854   6,470,141   6,222,710   5,844,582   5,834,415 
    Shareholders' equity  842,546   814,941   811,515   806,709   789,153 
               


    Univest Financial Corporation
    Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
    March 31, 2024
    (Dollars in thousands)          
               
    Summary of Major Loan and Lease Categories (Period End) 03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
    Commercial, financial and agricultural $1,014,568  $989,723  $1,050,004  $1,039,265  $1,032,753 
    Real estate-commercial  3,283,729   3,302,798   3,275,140   3,221,993   3,128,210 
    Real estate-construction  379,995   394,462   427,561   413,404   376,569 
    Real estate-residential secured for business purpose  524,196   517,002   516,471   517,521   498,505 
    Real estate-residential secured for personal purpose  922,412   909,015   861,122   832,632   779,557 
    Real estate-home equity secured for personal purpose  177,446   179,282   176,855   175,090   172,073 
    Loans to individuals  27,200   27,749   27,331   25,544   28,656 
    Lease financings  249,540   247,183   240,474   236,789   223,481 
    Total loans and leases held for investment, net of deferred income  6,579,086   6,567,214   6,574,958   6,462,238   6,239,804 
    Less: Allowance for credit losses, loans and leases  (85,632)  (85,387)  (83,837)  (82,709)  (80,034)
    Net loans and leases held for investment $6,493,454  $6,481,827  $6,491,121  $6,379,529  $6,159,770 
               
               
    Asset Quality Data (Period End)  03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
    Nonaccrual loans and leases, including nonaccrual loans held for sale* $20,363  $20,527  $18,085  $15,087  $11,362 
    Accruing loans and leases 90 days or more past due  268   534   2,135   55   1,996 
    Total nonperforming loans and leases  20,631   21,061   20,220   15,142   13,358 
    Other real estate owned  19,220   19,032   19,916   19,345   19,000 
    Repossessed assets  167   -   -   -   - 
    Total nonperforming assets $40,018  $40,093  $40,136  $34,487  $32,358 
    Nonaccrual loans and leases / Loans and leases held for investment  0.31%   0.31%   0.28%   0.23%   0.18% 
    Nonperforming loans and leases / Loans and leases held for investment  0.31%   0.32%   0.31%   0.23%   0.21% 
    Nonperforming assets / Total assets  0.52%   0.52%   0.51%   0.45%   0.44% 
               
    Allowance for credit losses, loans and leases $85,632  $85,387  $83,837  $82,709  $80,034 
    Allowance for credit losses, loans and leases / Loans and leases held for investment  1.30%   1.30%   1.28%   1.28%   1.28% 
    Allowance for credit losses, loans and leases / Nonaccrual loans and leases  420.53%   415.97%   463.57%   548.21%   704.40% 
    Allowance for credit losses, loans and leases / Nonperforming loans and leases  415.06%   405.43%   414.62%   546.22%   599.15% 
    *Includes a $5.8 million loan held for sale at September 30, 2023.          
               
      For the three months ended,
      03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
    Net loan and lease charge-offs $1,406  $1,074  $969  $512  $2,842 
    Net loan and lease charge-offs (annualized)/Average loans and leases  0.09%   0.06%   0.06%   0.03%   0.19% 
               


    Univest Financial Corporation 
    Consolidated Selected Financial Data (Unaudited) 
    March 31, 2024 
    (Dollars in thousands, except per share data)           
      For the three months ended, 
    For the period: 03/31/24 12/31/23 09/30/23 06/30/23 03/31/23 
    Interest income $98,609 $101,232 $97,106 $90,139 $83,253 
    Interest expense  47,142  48,472  43,516  35,809  23,936 
    Net interest income  51,467  52,760  53,590  54,330  59,317 
    Provision for credit losses  1,432  1,931  2,024  3,428  3,387 
    Net interest income after provision for credit losses  50,035  50,829  51,566  50,902  55,930 
    Noninterest income:           
    Trust fee income  2,108  1,943  1,910  1,924  1,955 
    Service charges on deposit accounts  1,871  1,960  1,816  1,725  1,547 
    Investment advisory commission and fee income  5,194  4,561  4,843  4,708  4,752 
    Insurance commission and fee income  7,201  4,596  4,852  5,108  6,487 
    Other service fee income  6,415  2,967  3,020  3,318  3,076 
    Bank owned life insurance income  842  823  806  789  767 
    Net gain on mortgage banking activities  939  809  1,216  1,039  625 
    Other income  1,025  961  228  1,222  471 
    Total noninterest income  25,595  18,620  18,691  19,833  19,680 
    Noninterest expense:           
    Salaries, benefits and commissions  31,338  29,321  29,978  29,875  31,014 
    Net occupancy  2,872  2,751  2,594  2,614  2,727 
    Equipment  1,111  1,066  1,087  986  993 
    Data processing  4,495  4,444  4,189  4,137  4,029 
    Professional fees  1,688  1,768  1,763  1,669  1,941 
    Marketing and advertising  416  632  555  622  371 
    Deposit insurance premiums  1,135  1,350  1,258  1,116  1,101 
    Intangible expenses  187  212  220  253  253 
    Restructuring charges  -  189  -  1,330  - 
    Other expense  6,832  7,313  7,344  7,197  7,100 
    Total noninterest expense  50,074  49,046  48,988  49,799  49,529 
    Income before taxes  25,556  20,403  21,269  20,936  26,081 
    Income tax expense  5,251  4,149  4,253  4,136  5,047 
    Net income $20,305 $16,254 $17,016 $16,800 $21,034 
    Net income per share:           
    Basic $0.69 $0.55 $0.58 $0.57 $0.72 
    Diluted $0.69 $0.55 $0.58 $0.57 $0.71 
    Dividends declared per share $0.21 $0.21 $0.21 $0.21 $0.21 
    Weighted average shares outstanding  29,413,999  29,500,147  29,479,066  29,439,392  29,312,265 
    Period end shares outstanding  29,337,919  29,511,721  29,508,128  29,471,124  29,427,696 
                     


    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    March 31, 2024
                  
         For the three months ended,
    Profitability Ratios (annualized)  03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
                  
    Return on average assets   1.06%   0.82%   0.88%   0.91%   1.18% 
    Return on average assets, excluding restructuring  1.06%   0.83%   0.88%   0.96%   1.18% 
    charges (1)             
    Return on average shareholders' equity  9.69%   7.91%   8.32%   8.35%   10.81% 
    Return on average shareholders' equity, excluding  9.69%   7.99%   8.32%   8.88%   10.81% 
    restructuring charges (1)           
    Return on average tangible common equity (1)(3)  12.38%   10.23%   10.77%   10.85%   14.11% 
    Return on average tangible common equity, excluding  12.38%   10.32%   10.77%   11.52%   14.11% 
    restructuring charges (1)(3)           
    Net interest margin (FTE)   2.88%   2.84%   2.96%   3.14%   3.58% 
    Efficiency ratio (2)    64.6%   68.3%   67.3%   66.7%   62.2% 
    Efficiency ratio, excluding restructuring charges (1)(2)  64.6%   68.0%   67.3%   64.9%   62.2% 
                  
    Capitalization Ratios            
                  
    Dividends declared to net income   30.5%   38.1%   36.4%   36.8%   29.2% 
    Shareholders' equity to assets (Period End)  10.89%   10.79%   10.31%   10.59%   10.85% 
    Tangible common equity to tangible assets (1)  8.80%   8.70%   8.22%   8.45%   8.63% 
    Common equity book value per share $28.76  $28.44  $27.36  $27.32  $27.13 
    Tangible common equity book value per share (1) $22.70  $22.41  $21.32  $21.27  $21.07 
                  
    Regulatory Capital Ratios (Period End)           
    Tier 1 leverage ratio    9.65%   9.36%   9.43%   9.59%   9.71% 
    Common equity tier 1 risk-based capital ratio  10.71%   10.58%   10.32%   10.26%   10.43% 
    Tier 1 risk-based capital ratio   10.71%   10.58%   10.32%   10.26%   10.43% 
    Total risk-based capital ratio   14.11%   13.90%   13.58%   13.54%   13.78% 
                  
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.    
    (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.   
    (3) Net income before amortization of intangibles to average tangible common equity.
                  


    Univest Financial Corporation 
    Average Balances and Interest Rates (Unaudited) 
      For the Three Months Ended,   
    Tax Equivalent BasisMarch 31, 2024 December 31, 2023 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$120,845 $1,6095.36%$280,693 $3,8045.38%
    Obligations of state and political subdivisions* 1,951  122.47  2,277  142.44 
    Other debt and equity securities 499,032  3,6472.94  487,310  3,6782.99 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 39,115  7247.44  41,361  7677.36 
    Total interest-earning deposits, investments and other interest-earning assets 660,943  5,9923.65  811,641  8,2634.04 
             
    Commercial, financial, and agricultural loans 934,649  16,5237.11  973,450  17,4857.13 
    Real estate—commercial and construction loans 3,575,142  50,6415.70  3,590,477  50,7155.60 
    Real estate—residential loans 1,618,188  19,5554.86  1,585,705  19,1334.79 
    Loans to individuals 27,315  5488.07  27,667  5588.00 
    Municipal loans and leases * 232,380  2,4644.26  230,394  2,4384.20 
    Lease financings 189,691  3,1696.72  186,540  2,8976.16 
    Gross loans and leases 6,577,365  92,9005.68  6,594,233  93,2265.61 
    Total interest-earning assets 7,238,308  98,8925.49  7,405,874  101,4895.44 
    Cash and due from banks 54,870     54,981    
    Allowance for credit losses, loans and leases (86,495)    (84,386)   
    Premises and equipment, net 50,592     51,489    
    Operating lease right-of-use assets 31,121     31,251    
    Other assets 408,179     406,425    
    Total assets$7,696,575    $7,865,634    
             
    Liabilities:        
    Interest-bearing checking deposits$1,180,696 $8,2182.80%$1,193,386 $8,4092.80%
    Money market savings 1,705,291  19,2204.53  1,845,153  21,1334.54 
    Regular savings 769,926  9050.47  784,937  8740.44 
    Time deposits 1,238,878  13,6304.42  1,188,054  12,7484.26 
    Total time and interest-bearing deposits 4,894,791  41,9733.45  5,011,530  43,1643.42 
             
    Short-term borrowings 10,127  50.20  9,814  10.04 
    Long-term debt 292,486  2,8833.96  318,805  3,0263.77 
    Subordinated notes 148,818  2,2816.16  148,693  2,2816.09 
    Total borrowings 451,431  5,1694.61  477,312  5,3084.41 
    Total interest-bearing liabilities 5,346,222  47,1423.55  5,488,842  48,4723.50 
    Noninterest-bearing deposits 1,409,063     1,458,610    
    Operating lease liabilities 34,166     34,255    
    Accrued expenses and other liabilities 64,578     68,986    
    Total liabilities 1,507,807     7,050,693    
    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,854,029  2.81  6,947,452  2.77 
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 300,679     300,558    
    Retained earnings and other equity 384,083     356,599    
    Total shareholders' equity 842,546     814,941    
    Total liabilities and shareholders' equity$7,696,575    $7,865,634    
    Net interest income $51,750   $53,017  
             
    Net interest spread  1.94   1.94 
    Effect of net interest-free funding sources  0.94   0.90 
    Net interest margin  2.88%  2.84%
    Ratio of average interest-earning assets to average interest-bearing liabilities 135.39%    134.93%   
             
    * 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 453 thousand and $428 thousand for the three months ended March 31, 2024 and December 31, 2023, respectively.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended March 31, 2024 and December 31, 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 March 31,   
    Tax Equivalent Basis  2024    2023  
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$120,845 $1,6095.36%$47,835 $4794.06%
    Obligations of state and political subdivisions* 1,951  122.47  2,286  173.02 
    Other debt and equity securities 499,032  3,6472.94  513,594  3,4952.76 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 39,115  7247.44  34,742  6097.11 
    Total interest-earning deposits, investments and other interest-earning assets 660,943  5,9923.65  598,457  4,6003.12 
             
    Commercial, financial, and agricultural loans 934,649  16,5237.11  991,876  15,5386.35 
    Real estate—commercial and construction loans 3,575,142  50,6415.70  3,342,199  42,4215.15 
    Real estate—residential loans 1,618,188  19,5554.86  1,408,292  15,7304.53 
    Loans to individuals 27,315  5488.07  27,254  4496.68 
    Municipal loans and leases* 232,380  2,4644.26  229,955  2,3414.13 
    Lease financings 189,691  3,1696.72  165,314  2,5416.23 
    Gross loans and leases 6,577,365  92,9005.68  6,164,890  79,0205.20 
    Total interest-earning assets 7,238,308  98,8925.49  6,763,347  83,6205.01 
    Cash and due from banks 54,870     58,035    
    Allowance for credit losses, loans and leases (86,495)    (79,977)   
    Premises and equipment, net 50,592     51,583    
    Operating lease right-of-use assets 31,121     31,303    
    Other assets 408,179     394,920    
    Total assets$7,696,575    $7,219,211    
             
    Liabilities:        
    Interest-bearing checking deposits$1,180,696 $8,2182.80%$857,891 $3,1641.50%
    Money market savings 1,705,291  19,2204.53  1,489,129  11,0813.02 
    Regular savings 769,926  9050.47  985,716  6690.28 
    Time deposits 1,238,878  13,6304.42  566,308  3,4222.45 
    Total time and interest-bearing deposits 4,894,791  41,9733.45  3,899,044  18,3361.91 
             
    Short-term borrowings 10,127  50.20  240,318  2,7284.60 
    Long-term debt 292,486  2,8833.96  112,222  5912.14 
    Subordinated notes 148,818  2,2816.16  148,319  2,2816.24 
    Total borrowings 451,431  5,1694.61  500,859  5,6004.53 
    Total interest-bearing liabilities 5,346,222  47,1423.55  4,399,903  23,9362.21 
    Noninterest-bearing deposits 1,409,063     1,935,371    
    Operating lease liabilities 34,166     34,438    
    Accrued expenses and other liabilities 64,578     60,346    
    Total liabilities 1,507,807     6,430,058    
    Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 6,854,029  2.81  6,335,274  1.53 
             
    Shareholders' Equity:        
    Common stock 157,784     157,784    
    Additional paid-in capital 300,679     300,293    
    Retained earnings and other equity 384,083     331,076    
    Total shareholders' equity 842,546     789,153    
    Total liabilities and shareholders' equity$7,696,575    $7,219,211    
    Net interest income $51,750   $59,684  
             
    Net interest spread  1.94   2.80 
    Effect of net interest-free funding sources  0.94   0.78 
    Net interest margin  2.88%  3.58%
    Ratio of average interest-earning assets to average interest-bearing liabilities 135.39%    153.72%   
             
    * 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 $453 thousand and $465 thousand for the three months ended March 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 included in the average loan balances. Tax-equivalent amounts for the three months ended March 31, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%. 
             


    Univest Financial Corporation
    Loan Portfolio Overview (Unaudited)
    March 31, 2024
         
    (Dollars in thousands)    
    Industry DescriptionTotal Outstanding Balance  % of Commercial Loan Portfolio 
    CRE - Retail$465,915 9.0%
    Animal Production 361,143 6.9 
    CRE - Multi-family 318,337 6.1 
    CRE - Office 298,301 5.7 
    CRE - 1-4 Family Residential Investment 289,167 5.6 
    CRE - Industrial / Warehouse 248,041 4.8 
    Hotels & Motels (Accommodation) 193,058 3.7 
    Specialty Trade Contractors 161,917 3.1 
    Education 153,971 3.0 
    Homebuilding (tract developers, remodelers) 152,798 2.9 
    Nursing and Residential Care Facilities 132,809 2.6 
    Motor Vehicle and Parts Dealers 132,677 2.6 
    Merchant Wholesalers, Durable Goods 122,481 2.4 
    CRE - Mixed-Use - Residential 116,749 2.2 
    Crop Production 104,137 2.0 
    Repair and Maintenance 103,139 2.0 
    Wood Product Manufacturing 90,017 1.7 
    Real Estate Lenders, Secondary Market Financing 86,382 1.7 
    Rental and Leasing Services 76,500 1.5 
    Fabricated Metal Product Manufacturing 75,371 1.4 
    CRE - Mixed-Use - Commercial 72,763 1.4 
    Religious Organizations, Advocacy Groups 71,715 1.4 
    Personal and Laundry Services 71,534 1.4 
    Administrative and Support Services 70,224 1.3 
    Amusement, Gambling, and Recreation Industries 68,644 1.3 
    Merchant Wholesalers, Nondurable Goods 67,775 1.3 
    Food Services and Drinking Places 66,625 1.3 
    Private Equity & Special Purpose Entities (except 52592) 66,517 1.3 
    Miniwarehouse / Self-Storage 61,996 1.2 
    Food Manufacturing 60,794 1.2 
    Truck Transportation 53,952 1.0 
    Industries with >$50 million in outstandings$4,415,449 84.9%
    Industries with <$50 million in outstandings$787,039 15.1%
    Total Commercial Loans$5,202,488 100.0%
         
         
    Consumer Loans and Lease FinancingsTotal Outstanding Balance   
    Real Estate-Residential Secured for Personal Purpose 922,412   
    Real Estate-Home Equity Secured for Personal Purpose 177,446   
    Loans to Individuals 27,200   
    Lease Financings 249,540   
    Total - Consumer Loans and Lease Financings$1,376,598   
         
    Total$6,579,086   
         


    Univest Financial Corporation
    Non-GAAP Reconciliation
    March 31, 2024
     
    Non-GAAP to GAAP Reconciliation
    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,
    (Dollars in thousands)03/31/24 12/31/23 09/30/23 06/30/23 03/31/23
    Restructuring charges (a)  $-  $189  $-  $1,330  $- 
    Tax effect of restructuring charges   -   (40)  -   (279)  - 
    Restructuring charges, net of tax  $-  $149  $-  $1,051  $- 
                 
    Net income$20,305  $16,254  $17,016  $16,800  $21,034 
    Amortization of intangibles, net of tax 148   167   174   200   200 
    Net income before amortization of intangibles$20,453  $16,421  $17,190  $17,000  $21,234 
                 
    Shareholders' equity$843,669  $839,208  $807,198  $805,222  $798,496 
    Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)
    Other intangibles (b)  (2,273)  (2,405)  (2,558)  (2,767)  (3,054)
    Tangible common equity$665,886  $661,293  $629,130  $626,945  $619,932 
                 
    Total assets$7,746,568  $7,780,628  $7,828,066  $7,600,150  $7,358,991 
    Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)
    Other intangibles (b)  (2,273)  (2,405)  (2,558)  (2,767)  (3,054)
    Tangible assets$7,568,785  $7,602,713  $7,649,998  $7,421,873  $7,180,427 
                 
    Average shareholders' equity$842,546  $814,941  $811,515  $806,709  $789,153 
    Average goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)
    Average other intangibles (b)  (2,318)  (2,477)  (2,680)  (2,924)  (3,137)
    Average tangible common equity$664,718  $636,954  $633,325  $628,275  $610,506 
                 
                 
    (a) Associated with branch optimization and headcount rationlization expense management strategies
    (b) Amount does not include mortgage servicing rights
                 

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

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