• Univest Financial Corporation Reports Fourth Quarter and 2023 Results

    المصدر: Nasdaq GlobeNewswire / 24 يناير 2024 16:15:01   America/New_York

    SOUDERTON, Pa., Jan. 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 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availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.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) 12/31/23 09/30/23 06/30/23 03/31/23 12/31/22     
    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) 12/31/23 09/30/23 06/30/23 03/31/23 12/31/22 12/31/23 12/31/22 
    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) 12/31/23 09/30/23 06/30/23 03/31/23 12/31/22
    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)  12/31/23 09/30/23 06/30/23 03/31/23 12/31/22
    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.          


    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:12/31/23 09/30/23 06/30/23 03/31/23 12/31/22 12/31/23 12/31/22 
    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)  12/31/23 09/30/23 06/30/23 03/31/23 12/31/22 12/31/23 12/31/22
                      
    Return on average assets   0.82%  0.88%  0.91%  1.18%  1.35%  0.94%  1.12%
    Return on average assets, excluding restructuring  0.83%  0.88%  0.96%  1.18%  1.36%  0.96%  1.13%
    charges (1)                 
    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  7.99%  8.32%  8.88%  10.81%  12.40%  8.97%  10.14%
    restructuring charges (1)               
    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  10.32%  10.77%  11.52%  14.11%  16.33%  11.64%  13.39%
    restructuring charges (1)(3)               
    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 to GAAP performance measures is included below.        
    (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.       
    (3) Net income before amortization of intangibles to average tangible common equity.            
                      



    Univest Financial Corporation 
    Average Balances and Interest Rates (Unaudited) 
      For the Three Months Ended,   
    Tax Equivalent BasisDecember 31, 2023 September 30, 2023 
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$280,693 $3,8045.38%$143,109 $1,8655.17%
    Obligations of state and political subdivisions* 2,277  142.44  2,281  162.78 
    Other debt and equity securities 487,310  3,6782.99  504,060  3,5402.79 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 41,361  7677.36  40,406  7126.99 
    Total interest-earning deposits, investments and other interest-earning assets 811,641  8,2634.04  689,856  6,1333.53 
             
    Commercial, financial, and agricultural loans 973,450  17,4857.13  995,355  17,5456.99 
    Real estate—commercial and construction loans 3,590,477  50,7155.60  3,552,709  49,5485.53 
    Real estate—residential loans 1,585,705  19,1334.79  1,543,360  18,2704.70 
    Loans to individuals 27,667  5588.00  26,538  5257.85 
    Municipal loans and leases * 230,394  2,4384.20  234,685  2,4304.11 
    Lease financings 186,540  2,8976.16  184,522  2,9286.30 
         Gross loans and leases 6,594,233  93,2265.61  6,537,169  91,2465.54 
    Total interest-earning assets 7,405,874  101,4895.44  7,227,025  97,3795.35 
    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 $8,4092.80%$1,070,063 $6,7032.49%
    Money market savings 1,845,153  21,1334.54  1,645,210  17,8504.30 
    Regular savings 784,937  8740.44  828,672  8610.41 
    Time deposits 1,188,054  12,7484.26  1,140,622  11,6684.06 
         Total time and interest-bearing deposits 5,011,530  43,1643.42  4,684,567  37,0823.14 
             
    Short-term borrowings 9,814  10.04  93,028  1,1174.76 
    Long-term debt 318,805  3,0263.77  320,000  3,0363.76 
    Subordinated notes 148,693  2,2816.09  148,568  2,2816.09 
         Total borrowings 477,312  5,3084.41  561,596  6,4344.55 
         Total interest-bearing liabilities 5,488,842  48,4723.50  5,246,163  43,5163.29 
    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 adjustments.
                   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, 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 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  
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$280,693 $3,8045.38%$57,059 $4873.39%
    Obligations of state and political subdivisions* 2,277  142.44  2,266  172.98 
    Other debt and equity securities 487,310  3,6782.99  503,451  3,3162.61 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 41,361  7677.36  29,401  4936.65 
    Total interest-earning deposits, investments and other interest-earning assets 811,641  8,2634.04  592,177  4,3132.89 
             
    Commercial, financial, and agricultural loans 973,450  17,4857.13  1,007,121  14,4715.70 
    Real estate—commercial and construction loans 3,590,477  50,7155.60  3,223,822  39,4594.86 
    Real estate—residential loans 1,585,705  19,1334.79  1,335,220  14,3404.26 
    Loans to individuals 27,667  5588.00  26,772  4015.94 
    Municipal loans and leases* 230,394  2,4384.20  233,684  2,4334.13 
    Lease financings 186,540  2,8976.16  152,962  2,4166.27 
         Gross loans and leases 6,594,233  93,2265.61  5,979,581  73,5204.88 
    Total interest-earning assets 7,405,874  101,4895.44  6,571,758  77,8334.70 
    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 $8,4092.80%$924,012 $2,7461.18%
    Money market savings 1,845,153  21,1334.54  1,365,502  7,6702.23 
    Regular savings 784,937  8740.44  1,045,261  4920.19 
    Time deposits 1,188,054  12,7484.26  433,010  1,5861.45 
         Total time and interest-bearing deposits 5,011,530  43,1643.42  3,767,785  12,4941.32 
             
    Short-term borrowings 9,814  10.04  101,126  8523.34 
    Long-term debt 318,805  3,0263.77  95,000  3241.35 
    Subordinated notes 148,693  2,2816.09  124,250  1,8155.80 
         Total borrowings 477,312  5,3084.41  320,376  2,9913.70 
         Total interest-bearing liabilities 5,488,842  48,4723.50  4,088,161  15,4851.50 
    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  
     AverageIncome/Average AverageIncome/Average 
    (Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
    Assets:        
    Interest-earning deposits with other banks$130,309 $6,6605.11%$325,875 $1,9200.59%
    U.S. government obligations -  --  1,929  402.07 
    Obligations of state and political subdivisions* 2,282  622.72  2,302  713.08 
    Other debt and equity securities 505,343  14,2252.81  510,961  11,3922.23 
    Federal Home Loan Bank, Federal Reserve Bank and other stock 40,092  2,8697.16  27,784  1,6275.86 
    Total interest-earning deposits, investments and other interest-earning assets 678,026  23,8163.51  868,851  15,0501.73 
             
    Commercial, financial, and agricultural loans 991,505  67,4876.81  963,755  43,8614.55 
    Real estate—commercial and construction loans 3,483,576  188,6445.42  3,060,689  127,9064.18 
    Real estate—residential loans 1,505,799  70,3494.67  1,219,275  47,4723.89 
    Loans to individuals 27,063  2,0117.43  26,642  1,3254.97 
    Municipal loans and leases* 232,501  9,5974.13  236,858  9,7034.10 
    Lease financings 178,220  11,0256.19  144,046  8,7916.10 
         Gross loans and leases 6,418,664  349,1135.44  5,651,265  239,0584.23 
    Total interest-earning assets 7,096,690  372,9295.25  6,520,116  254,1083.90 
    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 $23,6682.29%$884,656 $5,0100.57%
    Money market savings 1,611,169  64,1533.98  1,389,226  13,8351.00 
    Regular savings 871,332  3,2490.37  1,056,019  1,2690.12 
    Time deposits 931,944  34,9793.75  443,845  5,3081.20 
         Total time and interest-bearing deposits 4,448,772  126,0492.83  3,773,746  25,4220.67 
             
    Short-term borrowings 148,776  7,0954.77  60,468  1,3892.30 
    Long-term debt 263,877  9,4643.59  95,000  1,2871.35 
    Subordinated notes 148,507  9,1256.14  105,356  5,7985.50 
         Total borrowings 561,160  25,6844.58  260,824  8,4743.25 
         Total interest-bearing liabilities 5,009,932  151,7333.03  4,034,570  33,8960.84 
    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 DescriptionTotal 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 FinancingsTotal 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
                      
     
     
    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, As of or for the twelve months ended, 
    (Dollars in thousands)12/31/23 09/30/23 06/30/23 03/31/23 12/31/22 12/31/23 12/31/22 
    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 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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