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availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.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 Basis	December 31, 2023							September 30, 2023
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	280,693		$	3,804	5.38	%	$	143,109		$	1,865	5.17	%
Obligations of state and political subdivisions*		2,277			14	2.44			2,281			16	2.78
Other debt and equity securities		487,310			3,678	2.99			504,060			3,540	2.79
Federal Home Loan Bank, Federal Reserve Bank and other stock		41,361			767	7.36			40,406			712	6.99
Total interest-earning deposits, investments and other interest-earning assets		811,641			8,263	4.04			689,856			6,133	3.53

Commercial, financial, and agricultural loans		973,450			17,485	7.13			995,355			17,545	6.99
Real estate—commercial and construction loans		3,590,477			50,715	5.60			3,552,709			49,548	5.53
Real estate—residential loans		1,585,705			19,133	4.79			1,543,360			18,270	4.70
Loans to individuals		27,667			558	8.00			26,538			525	7.85
Municipal loans and leases *		230,394			2,438	4.20			234,685			2,430	4.11
Lease financings		186,540			2,897	6.16			184,522			2,928	6.30
Gross loans and leases		6,594,233			93,226	5.61			6,537,169			91,246	5.54
Total interest-earning assets		7,405,874			101,489	5.44			7,227,025			97,379	5.35
Cash and due from banks		54,981							62,673
Allowance for credit losses, loans and leases		(84,386	)						(83,827	)
Premises and equipment, net		51,489							52,071
Operating lease right-of-use assets		31,251							31,647
Other assets		406,314							404,394
Total assets	$	7,865,523						$	7,693,983

Liabilities:
Interest-bearing checking deposits	$	1,193,386		$	8,409	2.80	%	$	1,070,063		$	6,703	2.49	%
Money market savings		1,845,153			21,133	4.54			1,645,210			17,850	4.30
Regular savings		784,937			874	0.44			828,672			861	0.41
Time deposits		1,188,054			12,748	4.26			1,140,622			11,668	4.06
Total time and interest-bearing deposits		5,011,530			43,164	3.42			4,684,567			37,082	3.14

Short-term borrowings		9,814			1	0.04			93,028			1,117	4.76
Long-term debt		318,805			3,026	3.77			320,000			3,036	3.76
Subordinated notes		148,693			2,281	6.09			148,568			2,281	6.09
Total borrowings		477,312			5,308	4.41			561,596			6,434	4.55
Total interest-bearing liabilities		5,488,842			48,472	3.50			5,246,163			43,516	3.29
Noninterest-bearing deposits		1,458,610							1,538,143
Operating lease liabilities		34,255							34,788
Accrued expenses and other liabilities		68,875							63,374
Total liabilities		7,050,582							6,882,468
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,947,452				2.77			6,784,306				2.54

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,558							299,575
Retained earnings and other equity		356,599							354,156
Total shareholders' equity		814,941							811,515
Total liabilities and shareholders' equity	$	7,865,523						$	7,693,983
Net interest income				$	53,017						$	53,863

Net interest spread						1.94							2.06
Effect of net interest-free funding sources						0.90							0.90
Net interest margin						2.84	%						2.96	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.93	%						137.76	%

* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting 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
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	280,693		$	3,804	5.38	%	$	57,059		$	487	3.39	%
Obligations of state and political subdivisions*		2,277			14	2.44			2,266			17	2.98
Other debt and equity securities		487,310			3,678	2.99			503,451			3,316	2.61
Federal Home Loan Bank, Federal Reserve Bank and other stock		41,361			767	7.36			29,401			493	6.65
Total interest-earning deposits, investments and other interest-earning assets		811,641			8,263	4.04			592,177			4,313	2.89

Commercial, financial, and agricultural loans		973,450			17,485	7.13			1,007,121			14,471	5.70
Real estate—commercial and construction loans		3,590,477			50,715	5.60			3,223,822			39,459	4.86
Real estate—residential loans		1,585,705			19,133	4.79			1,335,220			14,340	4.26
Loans to individuals		27,667			558	8.00			26,772			401	5.94
Municipal loans and leases*		230,394			2,438	4.20			233,684			2,433	4.13
Lease financings		186,540			2,897	6.16			152,962			2,416	6.27
Gross loans and leases		6,594,233			93,226	5.61			5,979,581			73,520	4.88
Total interest-earning assets		7,405,874			101,489	5.44			6,571,758			77,833	4.70
Cash and due from banks		54,981							56,428
Allowance for credit losses, loans and leases		(84,386	)						(75,390	)
Premises and equipment, net		51,489							50,803
Operating lease right-of-use assets		31,251							30,413
Other assets		406,314							385,369
Total assets	$	7,865,523						$	7,019,381

Liabilities:
Interest-bearing checking deposits	$	1,193,386		$	8,409	2.80	%	$	924,012		$	2,746	1.18	%
Money market savings		1,845,153			21,133	4.54			1,365,502			7,670	2.23
Regular savings		784,937			874	0.44			1,045,261			492	0.19
Time deposits		1,188,054			12,748	4.26			433,010			1,586	1.45
Total time and interest-bearing deposits		5,011,530			43,164	3.42			3,767,785			12,494	1.32

Short-term borrowings		9,814			1	0.04			101,126			852	3.34
Long-term debt		318,805			3,026	3.77			95,000			324	1.35
Subordinated notes		148,693			2,281	6.09			124,250			1,815	5.80
Total borrowings		477,312			5,308	4.41			320,376			2,991	3.70
Total interest-bearing liabilities		5,488,842			48,472	3.50			4,088,161			15,485	1.50
Noninterest-bearing deposits		1,458,610							2,070,038
Operating lease liabilities		34,255							33,492
Accrued expenses and other liabilities		68,875							60,498
Total liabilities		7,050,582							6,252,189
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,947,452				2.77			6,158,199				1.00

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,558							300,121
Retained earnings and other equity		356,599							309,287
Total shareholders' equity		814,941							767,192
Total liabilities and shareholders' equity	$	7,865,523						$	7,019,381
Net interest income				$	53,017						$	62,348

Net interest spread						1.94							3.20
Effect of net interest-free funding sources						0.90							0.56
Net interest margin						2.84	%						3.76	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.93	%						160.75	%

* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $428 thousand and $516 thousand for the three months
ended December 31, 2023 and 2022, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been
included in the average loan balances. Tax-equivalent amounts for the three months ended December 31, 2023 and 2022 have
been calculated using the Corporation's federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Twelve Months Ended December 31,
Tax Equivalent Basis					2023							2022
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	130,309		$	6,660	5.11	%	$	325,875		$	1,920	0.59	%
U.S. government obligations		-			-	-			1,929			40	2.07
Obligations of state and political subdivisions*		2,282			62	2.72			2,302			71	3.08
Other debt and equity securities		505,343			14,225	2.81			510,961			11,392	2.23
Federal Home Loan Bank, Federal Reserve Bank and other stock		40,092			2,869	7.16			27,784			1,627	5.86
Total interest-earning deposits, investments and other interest-earning assets		678,026			23,816	3.51			868,851			15,050	1.73

Commercial, financial, and agricultural loans		991,505			67,487	6.81			963,755			43,861	4.55
Real estate—commercial and construction loans		3,483,576			188,644	5.42			3,060,689			127,906	4.18
Real estate—residential loans		1,505,799			70,349	4.67			1,219,275			47,472	3.89
Loans to individuals		27,063			2,011	7.43			26,642			1,325	4.97
Municipal loans and leases*		232,501			9,597	4.13			236,858			9,703	4.10
Lease financings		178,220			11,025	6.19			144,046			8,791	6.10
Gross loans and leases		6,418,664			349,113	5.44			5,651,265			239,058	4.23
Total interest-earning assets		7,096,690			372,929	5.25			6,520,116			254,108	3.90
Cash and due from banks		58,593							57,196
Allowance for credit losses, loans and leases		(82,474	)						(72,069	)
Premises and equipment, net		51,921							51,362
Operating lease right-of-use assets		31,351							30,443
Other assets		400,949							369,244
Total assets	$	7,557,030						$	6,956,292

Liabilities:
Interest-bearing checking deposits	$	1,034,327		$	23,668	2.29	%	$	884,656		$	5,010	0.57	%
Money market savings		1,611,169			64,153	3.98			1,389,226			13,835	1.00
Regular savings		871,332			3,249	0.37			1,056,019			1,269	0.12
Time deposits		931,944			34,979	3.75			443,845			5,308	1.20
Total time and interest-bearing deposits		4,448,772			126,049	2.83			3,773,746			25,422	0.67

Short-term borrowings		148,776			7,095	4.77			60,468			1,389	2.30
Long-term debt		263,877			9,464	3.59			95,000			1,287	1.35
Subordinated notes		148,507			9,125	6.14			105,356			5,798	5.50
Total borrowings		561,160			25,684	4.58			260,824			8,474	3.25
Total interest-bearing liabilities		5,009,932			151,733	3.03			4,034,570			33,896	0.84
Noninterest-bearing deposits		1,646,286							2,068,086
Operating lease liabilities		34,474							33,508
Accrued expenses and other liabilities		60,671							48,629
Total liabilities		6,751,363							6,184,793
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,656,218				2.28			6,102,656				0.56

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		299,804							299,121
Retained earnings and other equity		348,079							314,594
Total shareholders' equity		805,667							771,499
Total liabilities and shareholders' equity	$	7,557,030						$	6,956,292
Net interest income				$	221,196						$	220,212

Net interest spread						2.22							3.06
Effect of net interest-free funding sources						0.90							0.32
Net interest margin						3.12	%						3.38	%
Ratio of average interest-earning assets to average interest-bearing liabilities		141.65	%						161.61	%

* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $2.1 million and $1.8 million for the twelve months ended
December 31, 2023 and 2022, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been
included in the average loan balances. Tax-equivalent amounts for the twelve months ended December 31, 2023 and 2022 have
been calculated using the Corporation's federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
December 31, 2023

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


Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose	$	909,015
Real Estate-Home Equity Secured for Personal Purpose		179,282
Loans to Individuals		27,749
Lease Financings		247,183
Total - Consumer Loans and Lease Financings	$	1,363,229

Total	$	6,567,214

Univest Financial Corporation
Non-GAAP Reconciliation
December 31, 2023



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

Univest Financial Corporation Reports Fourth Quarter and 2023 Results