0000102212FALSE00001022122024-10-232024-10-23

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): October 23, 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 classTrading SymbolName of exchange on which registered
Common Stock, $5 par valueUVSPThe 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 2.02Results of Operations and Financial Condition
On October 23, 2024, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2024 third quarter earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
Exhibit No.  Description of Document
99.1  
104The 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
October 24, 2024


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



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 THIRD QUARTER RESULTS

SOUDERTON, Pa., October 23, 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 September 30, 2024 was $18.6 million, or $0.63 diluted earnings per share, compared to net income of $17.0 million, or $0.58 diluted earnings per share, for the quarter ended September 30, 2023.

Loans
Gross loans and leases increased $45.9 million, or 0.7% (2.8% annualized), from June 30, 2024, primarily due to increases in commercial real estate and residential mortgage loans, partially offset by decreases in construction and commercial loans. Gross loans and leases increased $163.5 million, or 2.5% (3.3% annualized), from December 31, 2023, primarily due to increases in commercial, commercial real estate and residential mortgage loans, partially offset by a decrease in construction loans.

Deposits and Liquidity
Total deposits increased $358.8 million, or 5.5% (22.0% annualized), from June 30, 2024, primarily due to seasonal increases in public funds partially offset by decreases in commercial, consumer and brokered deposits. Total deposits increased $478.4 million, or 7.5% (10.0% annualized), from December 31, 2023, primarily due to increases in commercial, brokered, and seasonal public funds deposits. Noninterest-bearing deposits totaled $1.3 billion and represented 19.3% of total deposits at September 30, 2024, compared to $1.4 billion representing 21.5% of total deposits at June 30, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.4 billion at September 30, 2024 and June 30, 2024. This represented 20.3% of total deposits at September 30, 2024, compared to 22.1% at June 30, 2024.



As of September 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $504.7 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at September 30, 2024, of which $1.8 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at September 30, 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 $53.2 million for the third quarter of 2024 decreased $386 thousand, or 0.7%, from the third quarter of 2023 and increased $2.2 million, or 4.3%, from the second quarter of 2024. The decrease in net interest income for the three months ended September 30, 2024 compared to the same period in the prior year reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which exceeded the increase in interest income from asset yield expansion and the increase in average interest-earning assets. However, we continue to see indicators of stabilization in cost of funds and our funding mix. The increase in net interest income for the three months ended September 30, 2024 compared to the three months ended June 30, 2024 was due to higher average balances of interest-earning assets and increased yields on these assets, partially offset by higher interest-bearing liability balances and costs.

Net interest margin, on a tax-equivalent basis, was 2.82% for the third quarter of 2024, compared to 2.84% for the second quarter of 2024 and 2.96% for the third quarter of 2023. Excess liquidity reduced net interest margin by approximately nine basis points for the quarter ended September 30, 2024 compared to approximately two basis points for the quarter ended June 30, 2024 and approximately four basis points for the quarter ended September 30, 2023. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 2.91% for the quarter ended September 30, 2024 compared to 2.86% for the quarter ended June 30, 2024 and 3.00% for the quarter ended September 30, 2023.

Noninterest Income
Noninterest income for the quarter ended September 30, 2024 was $20.2 million, an increase of $1.5 million, or 7.8%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $476 thousand, or 9.8%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increased assets under management and supervision driven by new business and market appreciation. Insurance commission and fee income increased $386 thousand, or 8.0%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase in commercial lines premiums. Other income increased $1.2 million, or 512.3%, for the quarter


ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to an increase of $705 thousand in gains on the sale of Small Business Administration loans.

Other service fee income decreased $1.2 million, or 39.9%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a $785 thousand valuation allowance recorded on mortgage servicing rights driven by the increase in prepayment speed assumptions as a result of the decrease in interest rates during the quarter. Additionally, net servicing fees on sold mortgage loans decreased by $307 thousand, primarily attributable to the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024 and increased amortization driven by prepayments.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2024 was $48.6 million, a decrease of $436 thousand, or 0.9%, from the comparable period in the prior year.

Other expense decreased $808 thousand, or 11.0%, for the quarter ended September 30, 2024 primarily due to decreases in retirement plan costs, insurance expense, recruiter fees, and bank shares tax expense.

Professional fees decreased $184 thousand, or 10.4%, for the quarter ended September 30, 2024 primarily driven by a reduction in consultant fees. Deposit insurance premiums decreased $161 thousand, or 12.8%, for the quarter ended September 30, 2024 driven by an improvement in the financial ratios that contribute to our deposit insurance assessment rate.

Salaries, benefits and commissions increased $724 thousand, or 2.4%, for the quarter ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to increases in salary expense and an increase in incentive compensation due to increased profitability, partially offset by an increase in compensation capitalized driven by higher loan production.

Tax Provision
The effective income tax rate was 20.6% for the quarter ended September 30, 2024, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2023. The effective tax rates for the three months ended September 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. The increase in effective tax rate in the quarter was primarily due to increases in state tax rates.



Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $36.6 million at September 30, 2024 and June 30, 2024, and $40.1 million at September 30, 2023.

Net loan and lease charge-offs were $820 thousand for the three months ended September 30, 2024 compared to $809 thousand and $969 thousand for the three months ended June 30, 2024 and September 30, 2023, respectively.

The provision for credit losses was $1.4 million for the three months ended September 30, 2024 compared to $707 thousand and $2.0 million for the three months ended June 30, 2024 and September 30, 2023, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2024, June 30, 2024 and September 30, 2023.

Dividend and Share Repurchases
On October 23, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 20, 2024 to shareholders of record as of November 6, 2024. During the quarter ended September 30, 2024, the Corporation repurchased 156,728 shares of common stock at an average price of $26.47 per share. Including brokerage fees and excise tax, the average price per share was $26.76. As of September 30, 2024, 539,646 shares are available for repurchase under the Share Repurchase Plan. On October 23, 2024, the Corporation’s Board of Directors approved an increase of 1,000,000 shares available for repurchase under the Corporation’s share repurchase program.

Conference Call
Univest will host a conference call to discuss third quarter 2024 results on Thursday, October 24, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=27c257f2&confId=71976. The general public can access the call by dialing 1-833-470-1428; using Access Code 752766. A replay of the conference call will be available through December 24, 2024 by dialing 1-866-813-9403; using Access Code 807549.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.2 billion in assets and $5.3 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2024. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  
# # #
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and


uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (5) our ability to access cost-effective funding; (6) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (7) economic assumptions or changes in our methodology, either of which 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)
September 30, 2024
(Dollars in thousands)
Balance Sheet (Period End)9/30/20246/30/20243/31/202412/31/20239/30/2023
ASSETS
Cash and due from banks $78,346 $66,808 $49,318 $72,815 $68,900 
Interest-earning deposits with other banks 426,354 124,103 152,288 176,984 221,441 
Cash and cash equivalents504,700 190,911 201,606 249,799 290,341 
Investment securities held-to-maturity137,681 140,112 143,474 145,777 149,451 
Investment securities available for sale, net of allowance for credit losses354,100 342,776 350,819 351,553 334,538 
Investments in equity securities2,406 2,995 3,355 3,293 4,054 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost40,235 37,438 37,394 40,499 42,417 
Loans held for sale17,131 28,176 13,188 11,637 16,473 
Loans and leases held for investment6,730,734 6,684,837 6,579,086 6,567,214 6,574,958 
Less: Allowance for credit losses, loans and leases (86,041)(85,745)(85,632)(85,387)(83,837)
Net loans and leases held for investment6,644,693 6,599,092 6,493,454 6,481,827 6,491,121 
Premises and equipment, net 47,411 48,174 48,739 51,441 51,287 
Operating lease right-of-use assets29,260 29,985 30,702 31,795 31,053 
Goodwill175,510 175,510 175,510 175,510 175,510 
Other intangibles, net of accumulated amortization7,158 7,701 7,473 10,950 11,079 
Bank owned life insurance138,744 137,823 137,896 131,344 130,522 
Accrued interest and other assets 106,708 114,753 102,958 95,203 100,220 
Total assets $8,205,737 $7,855,446 $7,746,568 $7,780,628 $7,828,066 
LIABILITIES
Noninterest-bearing deposits$1,323,953 $1,397,308 $1,401,806 $1,468,320 $1,432,559 
Interest-bearing deposits:5,530,195 5,098,014 5,003,552 4,907,461 5,006,606 
Total deposits 6,854,148 6,495,322 6,405,358 6,375,781 6,439,165 
Short-term borrowings8,256 11,781 4,816 6,306 14,676 
Long-term debt 225,000 250,000 250,000 310,000 320,000 
Subordinated notes 149,136 149,011 148,886 148,761 148,636 
Operating lease liabilities32,246 33,015 33,744 34,851 34,017 
Accrued expenses and other liabilities 59,880 62,180 60,095 65,721 64,374 
Total liabilities 7,328,666 7,001,309 6,902,899 6,941,420 7,020,868 
SHAREHOLDERS' EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued157,784 157,784 157,784 157,784 157,784 
Additional paid-in capital301,262 300,166 298,914 301,066 300,171 
Retained earnings512,938 500,482 488,790 474,691 464,634 
Accumulated other comprehensive loss, net of tax benefit(41,623)(54,124)(54,740)(50,646)(71,586)
Treasury stock, at cost(53,290)(50,171)(47,079)(43,687)(43,805)
Total shareholders’ equity877,071 854,137 843,669 839,208 807,198 
Total liabilities and shareholders’ equity$8,205,737 $7,855,446 $7,746,568 $7,780,628 $7,828,066 
For the three months ended,For the nine months ended,
Balance Sheet (Average)9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
Assets$8,005,265 $7,721,540 $7,696,575 $7,865,634 $7,693,983 $7,808,514 $7,453,070 
Investment securities, net of allowance for credit losses493,334 493,140 500,983 489,587 506,341 495,810 513,704 
Loans and leases, gross6,730,791 6,640,536 6,577,365 6,594,233 6,537,169 6,649,860 6,359,498 
Deposits6,641,324 6,353,752 6,303,854 6,470,141 6,222,710 6,433,737 5,968,659 
Shareholders' equity864,406 844,572 842,546 814,941 811,515 850,559 802,541 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2024
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)9/30/20246/30/20243/31/202412/31/20239/30/2023
Commercial, financial and agricultural$1,044,043 $1,055,332 $1,014,568 $989,723 $1,050,004 
Real estate-commercial3,442,083 3,373,889 3,283,729 3,302,798 3,275,140 
Real estate-construction285,616 313,229 379,995 394,462 427,561 
Real estate-residential secured for business purpose530,674 532,628 524,196 517,002 516,471 
Real estate-residential secured for personal purpose969,562 952,665 922,412 909,015 861,122 
Real estate-home equity secured for personal purpose182,901 179,150 177,446 179,282 176,855 
Loans to individuals26,794 26,430 27,200 27,749 27,331 
Lease financings249,061 251,514 249,540 247,183 240,474 
Total loans and leases held for investment, net of deferred income6,730,734 6,684,837 6,579,086 6,567,214 6,574,958 
Less: Allowance for credit losses, loans and leases(86,041)(85,745)(85,632)(85,387)(83,837)
Net loans and leases held for investment$6,644,693 $6,599,092 $6,493,454 $6,481,827 $6,491,121 
Asset Quality Data (Period End)9/30/20246/30/20243/31/202412/31/20239/30/2023
Nonaccrual loans and leases, including nonaccrual loans held for sale*$15,319 $16,200 $20,363 $20,527 $18,085 
Accruing loans and leases 90 days or more past due310 205 268 534 2,135 
Total nonperforming loans and leases15,629 16,405 20,631 21,061 20,220 
Other real estate owned20,915 20,007 19,220 19,032 19,916 
Repossessed assets79 149 167 — — 
Total nonperforming assets$36,623 $36,561 $40,018 $40,093 $40,136 
Nonaccrual loans and leases / Loans and leases held for investment0.23 %0.24 %0.31 %0.31 %0.28 %
Nonperforming loans and leases / Loans and leases held for investment0.23 %0.25 %0.32 %0.32 %0.31 %
Nonperforming assets / Total assets0.45 %0.47 %0.52 %0.52 %0.51 %
Allowance for credit losses, loans and leases$86,041 $85,745 $85,632 $85,387 $83,837 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.28 %1.28 %1.30 %1.30 %1.28 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases561.66 %529.29 %420.53 %415.97 %463.57 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases550.52 %522.68 %415.06 %405.43 %414.62 %
*Includes a $5.8 million loan held for sale at September 30, 2023.
For the three months ended,For the nine months ended,
9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
Net loan and lease charge-offs$820 $809 $1,406 $1,074 $969 $3,035 $4,323 
Net loan and lease charge-offs (annualized)/Average loans and leases0.05 %0.05 %0.09 %0.06 %0.06 %0.06 %0.09 %


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
(Dollars in thousands, except per share data)
For the three months ended,For the nine months ended,
For the period:9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
Interest income$106,438 $99,832 $98,609 $101,232 $97,106 $304,879 $270,498 
Interest expense53,234 48,805 47,142 48,472 43,516 149,181 103,261 
Net interest income53,204 51,027 51,467 52,760 53,590 155,698 167,237 
Provision for credit losses1,414 707 1,432 1,931 2,024 3,553 8,839 
Net interest income after provision for credit losses51,790 50,320 50,035 50,829 51,566 152,145 158,398 
Noninterest income:
Trust fee income2,110 2,008 2,108 1,943 1,910 6,226 5,789 
Service charges on deposit accounts2,037 1,982 1,871 1,960 1,816 5,890 5,088 
Investment advisory commission and fee income5,319 5,238 5,194 4,561 4,843 15,751 14,303 
Insurance commission and fee income5,238 5,167 7,201 4,596 4,852 17,606 16,447 
Other service fee income1,815 3,044 6,415 2,967 3,020 11,274 9,414 
Bank owned life insurance income921 1,086 842 823 806 2,849 2,362 
Net gain on sales of investment securities18 — — — — 18 — 
Net gain on mortgage banking activities1,296 1,710 939 809 1,216 3,945 2,880 
Other income1,396 745 1,025 961 228 3,166 1,921 
Total noninterest income20,150 20,980 25,595 18,620 18,691 66,725 58,204 
Noninterest expense:
Salaries, benefits and commissions30,702 30,187 31,338 29,321 29,978 92,227 90,867 
Net occupancy2,723 2,679 2,872 2,751 2,594 8,274 7,935 
Equipment1,107 1,088 1,111 1,066 1,087 3,306 3,066 
Data processing4,154 4,161 4,495 4,444 4,189 12,810 12,355 
Professional fees1,579 1,466 1,688 1,768 1,763 4,733 5,373 
Marketing and advertising490 715 416 632 555 1,621 1,548 
Deposit insurance premiums1,097 1,098 1,135 1,350 1,258 3,330 3,475 
Intangible expenses164 188 187 212 220 539 726 
Restructuring charges— — — 189 — — 1,330 
Other expense6,536 7,126 6,832 7,313 7,344 20,494 21,641 
Total noninterest expense48,552 48,708 50,074 49,046 48,988 147,334 148,316 
Income before taxes23,388 22,592 25,556 20,403 21,269 71,536 68,286 
Income tax expense4,810 4,485 5,251 4,149 4,253 14,546 13,436 
Net income$18,578 $18,107 $20,305 $16,254 $17,016 $56,990 $54,850 
Net income per share:
Basic$0.64 $0.62 $0.69 $0.55 $0.58 $1.95 $1.86 
Diluted$0.63 $0.62 $0.69 $0.55 $0.58 $1.94 $1.86 
Dividends declared per share$0.21 $0.21 $0.21 $0.21 $0.21 $0.63 $0.63 
Weighted average shares outstanding29,132,948 29,246,977 29,413,999 29,500,147 29,479,066 29,264,161 29,410,852 
Period end shares outstanding29,081,108 29,190,640 29,337,919 29,511,721 29,508,128 29,081,108 29,508,128 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2024
For the three months ended,For the nine months ended,
Profitability Ratios (annualized)9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
Return on average assets0.92 %0.94 %1.06 %0.82 %0.88 %0.97 %0.98 %
Return on average assets, excluding restructuring charges (1)0.92 %0.94 %1.06 %0.83 %0.88 %0.97 %1.00 %
Return on average shareholders' equity8.55 %8.62 %9.69 %7.91 %8.32 %8.95 %9.14 %
Return on average shareholders' equity, excluding restructuring charges (1)8.55 %8.62 %9.69 %7.99 %8.32 %8.95 %9.31 %
Return on average tangible common equity (1)(3)10.84 %11.01 %12.38 %10.23 %10.77 %11.40 %11.87 %
Return on average tangible common equity, excluding restructuring charges (1)(3)10.84 %11.01 %12.38 %10.32 %10.77 %11.40 %12.10 %
Net interest margin (FTE)2.82 %2.84 %2.88 %2.84 %2.96 %2.85 %3.22 %
Efficiency ratio (2)65.7 %67.1 %64.6 %68.3 %67.3 %65.8 %65.3 %
Efficiency ratio, excluding restructuring charges (1)(2)65.7 %67.1 %64.6 %68.0 %67.3 %65.8 %64.7 %
Capitalization Ratios
Dividends declared to net income33.0 %33.9 %30.5 %38.1 %36.4 %32.4 %33.8 %
Shareholders' equity to assets (Period End)10.69 %10.87 %10.89 %10.79 %10.31 %10.69 %10.31 %
Tangible common equity to tangible assets (1)8.71 %8.81 %8.80 %8.70 %8.22 %8.71 %8.22 %
Common equity book value per share$30.16 $29.26 $28.76 $28.44 $27.36 $30.16 $27.36 
Tangible common equity book value per share (1)$24.05 $23.17 $22.70 $22.41 $21.32 $24.05 $21.32 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.53 %9.74 %9.65 %9.36 %9.43 %9.53 %9.43 %
Common equity tier 1 risk-based capital ratio10.88 %10.72 %10.71 %10.58 %10.32 %10.88 %10.32 %
Tier 1 risk-based capital ratio10.88 %10.72 %10.71 %10.58 %10.32 %10.88 %10.32 %
Total risk-based capital ratio14.27 %14.09 %14.11 %13.90 %13.58 %14.27 %13.58 %
(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 BasisSeptember 30, 2024June 30, 2024
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$270,724 $3,624 5.33 %$84,546 $1,108 5.27 %
Obligations of state and political subdivisions*1,283 7 2.17 1,269 7 2.22 
Other debt and equity securities492,051 3,706 3.00 491,871 3,741 3.06 
Federal Home Loan Bank, Federal Reserve Bank and other stock38,769 742 7.61 37,286 700 7.55 
Total interest-earning deposits, investments and other interest-earning assets802,827 8,079 4.00 614,972 5,556 3.63 
Commercial, financial, and agricultural loans997,465 18,459 7.36 983,615 17,447 7.13 
Real estate—commercial and construction loans3,592,556 52,672 5.83 3,549,206 50,577 5.73 
Real estate—residential loans1,692,361 21,127 4.97 1,660,489 20,413 4.94 
Loans to individuals26,651 549 8.20 26,821 542 8.13 
Tax-exempt loans and leases232,159 2,565 4.40 230,495 2,476 4.32 
Lease financings189,599 3,275 6.87 189,910 3,105 6.58 
     Gross loans and leases6,730,791 98,647 5.83 6,640,536 94,560 5.73 
          Total interest-earning assets7,533,618 106,726 5.64 7,255,508 100,116 5.55 
Cash and due from banks62,902 56,387 
Allowance for credit losses, loans and leases(86,517)(86,293)
Premises and equipment, net47,989 48,725 
Operating lease right-of-use assets29,620 30,344 
Other assets417,653 416,869 
      Total assets$8,005,265 $7,721,540 
Liabilities:
Interest-bearing checking deposits$1,215,166 $8,824 2.89 %$1,094,150 $7,311 2.69 %
Money market savings1,849,628 21,213 4.56 1,692,759 19,131 4.55 
Regular savings727,395 878 0.48 759,960 929 0.49 
Time deposits1,491,560 17,255 4.60 1,422,113 16,134 4.56 
Total time and interest-bearing deposits5,283,749 48,170 3.63 4,968,982 43,505 3.52 
Short-term borrowings8,210 1 0.05 29,506 242 2.30 
Long-term debt247,826 2,781 4.46 250,000 2,777 4.47 
Subordinated notes149,068 2,282 6.09 148,943 2,281 6.16 
     Total borrowings405,104 5,064 4.97 428,449 5,300 4.98 
     Total interest-bearing liabilities5,688,853 53,234 3.72 5,397,431 48,805 3.64 
Noninterest-bearing deposits1,357,575 1,384,770 
Operating lease liabilities32,627 33,382 
Accrued expenses and other liabilities61,804 61,385 
     Total liabilities7,140,859 6,876,968 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")7,046,428 3.01 6,782,201 2.89 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,565 299,426 
Retained earnings and other equity406,057 387,362 
     Total shareholders' equity864,406 844,572 
     Total liabilities and shareholders' equity$8,005,265 $7,721,540 
Net interest income$53,492 $51,311 
Net interest spread1.92 1.91 
Effect of net interest-free funding sources0.90 0.93 
Net interest margin2.82 %2.84 %
Ratio of average interest-earning assets to average interest-bearing liabilities132.43 %134.43 %
*Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $897 thousand and $698 thousand for the three months ended September 30, 2024 and June 30, 2024.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended September 30, 2024 and June 30, 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended September 30,
Tax Equivalent Basis20242023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$270,724 $3,624 5.33 %$143,109 $1,865 5.17 %
Obligations of state and political subdivisions*1,283 7 2.17 2,281 16 2.78 
Other debt and equity securities492,051 3,706 3.00 504,060 3,540 2.79 
Federal Home Loan Bank, Federal Reserve Bank and other stock38,769 742 7.61 40,406 712 6.99 
Total interest-earning deposits, investments and other interest-earning assets802,827 8,079 4.00 689,856 6,133 3.53 
Commercial, financial, and agricultural loans997,465 18,459 7.36 995,355 17,545 6.99 
Real estate—commercial and construction loans3,592,556 52,672 5.83 3,552,709 49,548 5.53 
Real estate—residential loans1,692,361 21,127 4.97 1,543,360 18,270 4.70 
Loans to individuals26,651 549 8.20 26,538 525 7.85 
Tax-exempt loans and leases232,159 2,565 4.40 234,685 2,430 4.11 
Lease financings189,599 3,275 6.87 184,522 2,928 6.30 
     Gross loans and leases6,730,791 98,647 5.83 6,537,169 91,246 5.54 
          Total interest-earning assets7,533,618 106,726 5.64 7,227,025 97,379 5.35 
Cash and due from banks62,902 62,673 
Allowance for credit losses, loans and leases(86,517)(83,827)
Premises and equipment, net47,989 52,071 
Operating lease right-of-use assets29,620 31,647 
Other assets417,653 404,394 
      Total assets$8,005,265 $7,693,983 
Liabilities:
Interest-bearing checking deposits$1,215,166 $8,824 2.89 %$1,070,063 $6,703 2.49 %
Money market savings1,849,628 21,213 4.56 1,645,210 17,850 4.30 
Regular savings727,395 878 0.48 828,672 861 0.41 
Time deposits1,491,560 17,255 4.60 1,140,622 11,668 4.06 
Total time and interest-bearing deposits5,283,749 48,170 3.63 4,684,567 37,082 3.14 
Short-term borrowings8,210 1 0.05 93,028 1,117 4.76 
Long-term debt247,826 2,781 4.46 320,000 3,036 3.76 
Subordinated notes149,068 2,282 6.09 148,568 2,281 6.09 
     Total borrowings405,104 5,064 4.97 561,596 6,434 4.55 
     Total interest-bearing liabilities5,688,853 53,234 3.72 5,246,163 43,516 3.29 
Noninterest-bearing deposits1,357,575 1,538,143 
Operating lease liabilities32,627 34,788 
Accrued expenses and other liabilities61,804 63,374 
     Total liabilities7,140,859 6,882,468 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")7,046,428 3.01 6,784,306 2.54 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,565 299,575 
Retained earnings and other equity406,057 354,156 
     Total shareholders' equity864,406 811,515 
     Total liabilities and shareholders' equity$8,005,265 $7,693,983 
Net interest income$53,492 $53,863 
Net interest spread1.92 2.06 
Effect of net interest-free funding sources0.90 0.90 
Net interest margin2.82 %2.96 %
Ratio of average interest-earning assets to average interest-bearing liabilities132.43 %137.76 %
*Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $897 thousand and $563 thousand for the three months ended September 30, 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 September 30, 2024 and 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 Nine Months Ended September 30,
Tax Equivalent Basis20242023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$159,114 $6,341 5.32 %$79,630 $2,856 4.80 %
Obligations of state and political subdivisions*1,500 26 2.32 2,284 48 2.81 
Other debt and equity securities494,310 11,094 3.00 511,420 10,547 2.76 
Federal Home Loan Bank, Federal Reserve Bank and other stock38,392 2,166 7.54 39,664 2,102 7.09 
Total interest-earning deposits, investments and other interest-earning assets693,316 19,627 3.78 632,998 15,553 3.29 
Commercial, financial, and agricultural loans972,003 52,429 7.21 997,590 50,002 6.70 
Real estate—commercial and construction loans3,572,375 153,890 5.75 3,447,551 137,929 5.35 
Real estate—residential loans1,657,142 61,095 4.92 1,478,871 51,216 4.63 
Loans to individuals26,928 1,639 8.13 26,859 1,453 7.23 
Tax-exempt loans and leases231,679 7,505 4.33 233,211 7,159 4.10 
Lease financings189,733 9,549 6.72 175,416 8,128 6.20 
     Gross loans and leases6,649,860 286,107 5.75 6,359,498 255,887 5.38 
          Total interest-earning assets7,343,176 305,734 5.56 6,992,496 271,440 5.19 
Cash and due from banks58,070 59,811 
Allowance for credit losses, loans and leases(86,435)(81,829)
Premises and equipment, net49,098 52,067 
Operating lease right-of-use assets30,359 31,384 
Other assets414,246 399,141 
      Total assets$7,808,514 $7,453,070 
Liabilities:
Interest-bearing checking deposits$1,163,526 $24,353 2.80 %$980,725 $15,259 2.08 %
Money market savings1,749,592 59,564 4.55 1,532,318 43,020 3.75 
Regular savings752,336 2,712 0.48 900,448 2,375 0.35 
Time deposits1,384,576 47,019 4.54 845,635 22,231 3.51 
Total time and interest-bearing deposits5,050,030 133,648 3.54 4,259,126 82,885 2.60 
Short-term borrowings15,919 248 2.08 195,606 7,094 4.85 
Long-term debt263,380 8,441 4.28 245,366 6,438 3.51 
Subordinated notes148,944 6,844 6.14 148,444 6,844 6.16 
     Total borrowings428,243 15,533 4.85 589,416 20,376 4.62 
     Total interest-bearing liabilities5,478,273 149,181 3.64 4,848,542 103,261 2.85 
Noninterest-bearing deposits1,383,707 1,709,533 
Operating lease liabilities33,389 34,548 
Accrued expenses and other liabilities62,586 57,906 
     Total liabilities6,957,955 6,650,529 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,861,980 2.90 6,558,075 2.11 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,224 299,550 
Retained earnings and other equity392,551 345,207 
     Total shareholders' equity850,559 802,541 
     Total liabilities and shareholders' equity$7,808,514 $7,453,070 
Net interest income$156,553 $168,179 
Net interest spread1.92 2.34 
Effect of net interest-free funding sources0.93 0.88 
Net interest margin2.85 %3.22 %
Ratio of average interest-earning assets to average interest-bearing liabilities134.04 %144.22 %
*Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $2.0 million and $1.7 million for the nine months ended September 30, 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 nine months ended September 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2024
(Dollars in thousands)
Industry DescriptionTotal Outstanding Balance % of Commercial Loan Portfolio
CRE - Retail$458,230 8.6 %
Animal Production384,554 7.2 
CRE - Multi-family340,181 6.4 
CRE - 1-4 Family Residential Investment295,454 5.6 
CRE - Office294,508 5.6 
CRE - Industrial / Warehouse254,019 4.8 
Hotels & Motels (Accommodation)186,130 3.5 
Specialty Trade Contractors180,486 3.4 
Nursing and Residential Care Facilities167,467 3.2 
Education167,282 3.2 
Motor Vehicle and Parts Dealers129,799 2.4 
Repair and Maintenance127,927 2.4 
Merchant Wholesalers, Durable Goods125,009 2.4 
Homebuilding (tract developers, remodelers)120,040 2.2 
CRE - Mixed-Use - Residential110,137 2.1 
Crop Production104,343 2.0 
Wood Product Manufacturing93,505 1.8 
Food Services and Drinking Places88,178 1.7 
Real Estate Lenders, Secondary Market Financing85,171 1.6 
Rental and Leasing Services79,876 1.5 
Religious Organizations, Advocacy Groups73,802 1.4 
Fabricated Metal Product Manufacturing72,794 1.4 
CRE - Mixed-Use - Commercial72,268 1.4 
Administrative and Support Services71,787 1.4 
Personal and Laundry Services71,184 1.3 
Merchant Wholesalers, Nondurable Goods69,363 1.3 
Amusement, Gambling, and Recreation Industries69,052 1.3 
Miniwarehouse / Self-Storage65,176 1.2 
Food Manufacturing61,472 1.1 
Truck Transportation52,570 1.0 
Industries with >$50 million in outstandings$4,471,764 84.3 %
Industries with <$50 million in outstandings $830,652 15.7 %
Total Commercial Loans$5,302,416 100.0 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$969,562 
Real Estate-Home Equity Secured for Personal Purpose182,901 
Loans to Individuals26,794 
Lease Financings249,061 
Total Consumer Loans and Lease Financings$1,428,318 
Total$6,730,734 


Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2024
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 nine months ended,
(Dollars in thousands)9/30/20246/30/20243/31/202412/31/20239/30/20239/30/20249/30/2023
Restructuring charges (a)$— $— $— $189 $— $— $1,330 
Tax effect of restructuring charges— — — (40)— — (279)
Restructuring charges, net of tax$— $— $— $149 $— $— $1,051 
Net income$18,578 $18,107 $20,305 $16,254 $17,016 $56,990 $54,850 
Amortization of intangibles, net of tax130 149 148 167 174 426 574 
Net income before amortization of intangibles$18,708 $18,256 $20,453 $16,421 $17,190 $57,416 $55,424 
Shareholders' equity$877,071 $854,137 $843,669 $839,208 $807,198 $877,071 $807,198 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,147)(2,157)(2,273)(2,405)(2,558)(2,147)(2,558)
Tangible common equity$699,414 $676,470 $665,886 $661,293 $629,130 $699,414 $629,130 
Total assets$8,205,737 $7,855,446 $7,746,568 $7,780,628 $7,828,066 $8,205,737 $7,828,066 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,147)(2,157)(2,273)(2,405)(2,558)(2,147)(2,558)
Tangible assets$8,028,080 $7,677,779 $7,568,785 $7,602,713 $7,649,998 $8,028,080 $7,649,998 
Average shareholders' equity$864,406 $844,572 $842,546 $814,941 $811,515 $850,559 $802,541 
Average goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Average other intangibles (b)(2,086)(2,222)(2,318)(2,477)(2,680)(2,209)(2,913)
Average tangible common equity$686,810 $666,840 $664,718 $636,954 $633,325 $672,840 $624,118 
(a) Associated with financial service center optimization and headcount rationalization expense management strategies
(b) Amount does not include mortgage servicing rights


v3.24.3
Cover
Oct. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 23, 2024
Entity Registrant Name UNIVEST FINANCIAL CORPORATION
Entity Incorporation, State or Country Code PA
Entity File Number 0-7617
Entity Tax Identification Number 23-1886144
Entity Address, Address Line One 14 North Main Street
Entity Address, City or Town Souderton
Entity Address, State or Province PA
Entity Address, Postal Zip Code 18964
City Area Code 215
Local Phone Number 721-2400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $5 par value
Trading Symbol UVSP
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000102212
Amendment Flag false
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