SOUDERTON, Pa., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Univest Financial Corporation ("Univest" or the "Corporation") (NASDAQ:UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2022 was $20.8 million, or $0.71 diluted earnings per share, compared to net income of $20.9 million, or $0.71 diluted earnings per share, for the quarter ended September 30, 2021.

One-Time Items

The financial results for the three and nine months ended September 30, 2022 included tax-free bank owned life insurance ("BOLI") death benefit claims of $446 thousand, which represented $0.02 diluted earnings per share for both periods.

Loans

Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans¹, increased $190.6 million, or 13.5% (annualized), from June 30, 2022, $568.8 million, or 14.4% (annualized), from December 31, 2021 and $680.6 million, or 13.2%, from September 30, 2021 primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.

Deposits

Total deposits increased $223.9 million, or 16.1% (annualized), from June 30, 2022, primarily due to increases in public funds deposits partially offset by decreases in commercial deposits. Total deposits decreased $268.1 million, or 5.9% (annualized), from December 31, 2021, primarily due to decreases in commercial and consumer deposits. Total deposits decreased $151.2 million, or 2.5%, from September 30, 2021, primarily due to a decrease in public funds deposits.

Net Interest Income and Margin

Net interest income of $58.3 million for the three months ended September 30, 2022 increased $6.8 million, or 13.2%, from the three months ended June 30, 2022, and $9.6 million, or 19.6%, from the three months ended September 30, 2021. The increase in net interest income for the three months ended September 30, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity position of the Corporation's balance sheet.

Net interest margin, on a tax-equivalent basis, was 3.67% for the third quarter of 2022, compared to 3.19% for the second quarter of 2022 and 3.11% for the third quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended September 30, 2022 compared to 23 basis points for the quarter ended June 30, 2022 and 27 basis points for the quarter ended September 30, 2021. PPP loans had no impact on net interest margin for the quarter ended September 30, 2022 compared to one basis point for the quarter ended June 30, 2022 and 20 basis points for the quarter ended September 30, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.68% for the quarter ended September 30, 2022 compared to 3.41% for the quarter ended June 30, 2022 and 3.18% for the quarter ended September 30, 2021.

Noninterest Income

Noninterest income for the quarter ended September 30, 2022 was $18.0 million, a decrease of $2.6 million, or 12.6%, compared to the third quarter of 2021.

Net gain on mortgage banking activities decreased $2.4 million, or 74.7%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of margins. BOLI increased $228 thousand, or 24.6%, for the quarter compared to the comparable period in the prior year, primarily due to death benefit claims of $446 thousand in the third quarter of 2022. Investment advisory commission and fee income decreased $597 thousand, or 12.4%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to reduced assets under management, which was driven by market performance.

Other income decreased $758 thousand, or 46.6%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. Gains on the sale of Small Business Administration loans decreased $520 thousand for the quarter due to decreased sale activity. Fees on risk participation agreements for interest rate swaps decreased $171 thousand for the quarter driven by a decrease in customer demand due to the current interest rate environment.

Insurance commission and fee income increased $605 thousand, or 15.8%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.

Other service fee income increased $548 thousand, or 21.3%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. Mortgage servicing fees increased $336 thousand for the quarter driven by reduced amortization as a result of a decrease in prepayment speeds.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2022 was $46.7 million, an increase of $3.4 million, or 7.9%, compared to the third quarter of 2021. The results for the three months ended September 30, 2022 included approximately $1.2 million in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to seamlessly sell existing products and services, digitally, across an expanded footprint.

Salaries, benefits and commissions increased $2.8 million, or 10.4%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western PA, and annual merit increases.

Professional fees increased $347 thousand, or 16.0%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. The increase for the three months ended September 30, 2022 was primarily due to $1.0 million in consultant fees attributable to the previously discussed digital transformation initiative, as compared to our $585 thousand investment in our Diversity, Equity and Inclusion program, training initiatives and treasury management product enhancements for the three months ended September 30, 2021.

Data processing expenses increased $627 thousand, or 19.2%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology including $180 thousand in support of the previously discussed digital transformation initiative for the respective period.

Tax Provision

The effective income tax rate was 19.7% for the nine months ended September 30, 2022, compared to an effective income tax rate of 19.4% for the nine months ended September 30, 2021. The effective tax rate for the nine months ended September 30, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rate for the nine months ended September 30, 2022 was favorably impacted by discrete tax benefits and proceeds from BOLI death benefits. Excluding these items, the effective tax rate was 20.1% for the nine months ended September 30, 2022.

Asset Quality and Provision for Credit Losses

Nonperforming assets were $33.0 million at September 30, 2022, compared to $34.8 million at June 30, 2022 and $37.1 million at September 30, 2021.

Net loan and lease charge-offs were $1.2 million and $1.7 million for the three months ended September 30, 2022 and June 30, 2022, respectively, compared to net loan and lease recoveries of $75 thousand for the three months ended September 30, 2021. Net loan and lease charge-offs were $3.0 million and $456 thousand for the nine months ended September 30, 2022 and September 30, 2021, respectively.

The provision for credit losses was $3.6 million for the third quarter of 2022 compared to a provision for credit losses of $6.7 million for the second quarter of 2022 and a reversal of provision of $182 thousand for the third quarter of 2021. The provision for credit losses was $6.8 million for the nine months ended September 30, 2022 compared to a reversal of provision for credit losses of $11.5 million for the comparable period in the prior year. 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, 2022 compared to 1.27% at June 30, 2022 and 1.34% at September 30, 2021.

Share Repurchases

During the three months ended September 30, 2022, the Corporation repurchased 150,000 shares at an average price of $25.41, for an aggregate cost of $3.8 million. During the nine months ended September 30, 2022, the Corporation repurchased 450,000 shares at an average price of $25.29, for an aggregate cost of $11.4 million. As of September 30, 2022, the Corporation has 229,174 shares remaining to repurchase under the program that was approved on May 27, 2015. On October 26, 2022, the Corporation's Board of Directors approved an increase of 1,000,000 in the shares available for repurchase under the Corporation's share repurchase program.

Dividend

On October 26, 2022, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 23, 2022 to shareholders of record as of November 9, 2022.

Conference Call

Univest will host a conference call to discuss third quarter 2022 results on Thursday, October 27, 2022 at 9:00 a.m. EDT. Participants may preregister at https://www.netroadshow.com/events/login?show=7205620b&confId=42951. The general public can access the call by dialing 1-844-200-6205; using Access Code 478630. A replay of the conference call will be available through November 24, 2022 by dialing 1-866-813-9403; using Access Code: 211821.

¹Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included within this document.

About Univest Financial Corporation

Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $6.9 billion in assets and $4.0 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2022. 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 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 results, business 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 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 economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; and/or (11) 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, 2022
(Dollars in thousands)

Balance Sheet (Period End)	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21
ASSETS
Cash and due from banks	$	65,859		$	59,590		$	57,307		$	49,202		$	67,517
Interest-earning deposits with other banks		47,451			35,187			716,474			840,948			834,840
Cash and cash equivalents		113,310			94,777			773,781			890,150			902,357
Investment securities held-to-maturity		159,170			159,808			166,339			176,983			112,643
Investment securities available for sale, net of allowance for credit losses		347,479			351,382			349,994			317,007			277,773
Investments in equity securities		2,994			2,934			2,569			2,999			2,961
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		29,475			29,116			26,330			28,186			28,679
Loans held for sale		9,087			8,352			14,521			21,600			29,093
Loans and leases held for investment		5,849,259			5,661,777			5,400,786			5,310,017			5,252,045
Less: Allowance for credit losses, loans and leases		(74,929	)		(72,011	)		(68,286	)		(71,924	)		(70,146	)
Net loans and leases held for investment		5,774,330			5,589,766			5,332,500			5,238,093			5,181,899
Premises and equipment, net		50,533			50,080			50,429			56,882			55,354
Operating lease right-of-use assets		30,654			30,929			30,498			30,407			31,570
Goodwill		175,510			175,510			175,510			175,510			172,559
Other intangibles, net of accumulated amortization		11,650			11,728			11,784			11,848			9,359
Bank owned life insurance		120,035			120,103			119,398			118,699			117,981
Accrued interest and other assets		83,170			76,328			54,087			54,057			57,624
Total assets	$	6,907,397		$	6,700,813		$	7,107,740		$	7,122,421		$	6,979,852

LIABILITIES
Noninterest-bearing deposits	$	1,968,422		$	2,062,538		$	2,136,467		$	2,065,423		$	1,861,007
Interest-bearing deposits:		3,818,554			3,500,510			3,911,465			3,989,701			4,077,147
Total deposits		5,786,976			5,563,048			6,047,932			6,055,124			5,938,154
Short-term borrowings		80,711			97,606			18,976			20,106			14,101
Long-term debt		95,000			95,000			95,000			95,000			95,000
Subordinated notes		99,107			99,030			98,952			98,874			98,797
Operating lease liabilities		33,718			33,951			33,566			33,453			34,641
Accrued expenses and other liabilities		57,698			48,253			39,459			46,070			43,136
Total liabilities		6,153,210			5,936,888			6,333,885			6,348,627			6,223,829

SHAREHOLDER'S 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		299,791			298,800			297,945			299,181			298,033
Retained earnings		410,942			396,295			389,332			375,124			363,607
Accumulated other comprehensive loss, net of tax benefit		(64,985	)		(42,781	)		(31,909	)		(16,353	)		(20,073	)
Treasury stock, at cost		(49,345	)		(46,173	)		(39,297	)		(41,942	)		(43,328	)
Total shareholders' equity		754,187			763,925			773,855			773,794			756,023
Total liabilities and shareholders' equity	$	6,907,397		$	6,700,813		$	7,107,740		$	7,122,421		$	6,979,852


	For the three months ended,															For the nine months ended,
Balance Sheet (Average)	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21			09/30/22		09/30/21
Assets	$	6,797,466		$	6,962,401		$	7,047,980		$	7,088,289		$	6,698,177		$	6,935,031	$	6,509,576
Investment securities, net of allowance for credit losses		517,335			515,741			522,128			469,588			395,280			518,383		385,192
Loans and leases, gross		5,752,119			5,520,580			5,344,698			5,255,279			5,320,411			5,540,624		5,345,119
Deposits		5,645,291			5,903,173			5,984,815			6,041,798			5,666,725			5,843,182		5,439,345
Shareholders' equity		773,099			771,410			774,358			762,334			746,185			772,951		725,061


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2022
(Dollars in thousands)

Summary of Major Loan and Lease Categories (Period End)	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21
Commercial, financial and agricultural	$	1,052,733		$	1,028,354		$	932,485		$	956,396		$	927,015
Paycheck Protection Program		2,207			5,358			10,298			31,748			85,601
Real estate-commercial		2,936,204			2,870,286			2,816,737			2,718,535			2,669,898
Real estate-construction		329,915			319,449			285,083			283,918			260,874
Real estate-residential secured for business purpose		443,837			419,652			412,486			409,900			412,001
Real estate-residential secured for personal purpose		685,771			629,144			568,735			540,566			535,705
Real estate-home equity secured for personal purpose		175,843			168,536			160,134			158,909			159,029
Loans to individuals		26,679			27,061			26,249			25,504			26,458
Lease financings		196,070			193,937			188,579			184,541			175,464
Total loans and leases held for investment, net of deferred income		5,849,259			5,661,777			5,400,786			5,310,017			5,252,045
Less: Allowance for credit losses, loans and leases		(74,929	)		(72,011	)		(68,286	)		(71,924	)		(70,146	)
Net loans and leases held for investment	$	5,774,330		$	5,589,766		$	5,332,500		$	5,238,093		$	5,181,899


Asset Quality Data (Period End)	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases	$	13,620		$	13,355		$	30,876		$	33,210		$	34,528
Accruing loans and leases 90 days or more past due		416			2,784			274			498			2,204
Accruing troubled debt restructured loans and leases		50			50			51			51			51
Total nonperforming loans and leases		14,086			16,189			31,201			33,759			36,783
Other real estate owned		18,960			18,604			279			279			279
Total nonperforming assets	$	33,046		$	34,793		$	31,480		$	34,038		$	37,062
Nonaccrual loans and leases / Loans and leases held for investment		0.23	%		0.24	%		0.57	%		0.63	%		0.66	%
Nonperforming loans and leases / Loans and leases held for investment		0.24	%		0.29	%		0.58	%		0.64	%		0.70	%
Nonperforming assets / Total assets		0.48	%		0.52	%		0.44	%		0.48	%		0.53	%

Allowance for credit losses, loans and leases	$	74,929		$	72,011		$	68,286		$	71,924		$	70,146
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%		1.27	%		1.26	%		1.35	%		1.34	%
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)		1.28	%		1.27	%		1.27	%		1.36	%		1.36	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment		550.14	%		539.21	%		221.16	%		216.57	%		203.16	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment		531.94	%		444.81	%		218.86	%		213.05	%		190.70	%

	For the three months ended,															For the nine months ended,
	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21			09/30/22			09/30/21
Net loan and lease charge-offs (recoveries)	$	1,196		$	1,715		$	76		$	(243	)	$	(75	)	$	2,987		$	456
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases		0.08	%		0.12	%		0.01	%		(0.02	%)		(0.01	%)		0.07	%		0.01	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included at the end of this document.

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2022
(Dollars in thousands, except per share data)
	For the three months ended,												For the nine months ended,
For the period:	09/30/22		06/30/22		03/31/22			12/31/21		09/30/21			09/30/22		09/30/21
Interest income	$	66,877	$	56,717	$	51,198		$	52,262	$	53,571		$	174,792	$	157,469
Interest expense		8,627		5,246		4,538			4,737		4,884			18,411		16,611
Net interest income		58,250		51,471		46,660			47,525		48,687			156,381		140,858
Provision (reversal of provision) for credit losses		3,558		6,674		(3,450	)		1,392		(182	)		6,782		(11,524	)
Net interest income after provision for credit losses		54,692		44,797		50,110			46,133		48,869			149,599		152,382
Noninterest income:
Trust fee income		1,835		1,998		2,102			2,086		2,126			5,935		6,317
Service charges on deposit accounts		1,522		1,574		1,504			1,486		1,422			4,600		4,018
Investment advisory commission and fee income		4,199		4,812		5,152			4,885		4,796			14,163		14,051
Insurance commission and fee income		4,442		4,629		5,570			3,726		3,837			14,641		12,631
Other service fee income		3,124		3,309		2,756			2,759		2,576			9,189		7,516
Bank owned life insurance income		1,153		705		699			719		925			2,557		3,262
Net gain on sales of investment securities		-		-		30			5		21			30		140
Net gain on mortgage banking activities		817		1,230		1,929			2,518		3,224			3,976		12,623
Other income		867		741		728			1,008		1,625			2,336		3,474
Total noninterest income		17,959		18,998		20,470			19,192		20,552			57,427		64,032
Noninterest expense:
Salaries, benefits and commissions		29,400		29,133		28,245			27,374		26,641			86,778		76,817
Net occupancy		2,504		2,422		2,716			2,477		2,525			7,642		7,920
Equipment		968		977		982			985		1,000			2,927		2,914
Data processing		3,901		3,708		3,567			3,355		3,274			11,176		9,388
Professional fees		2,521		2,844		2,138			1,750		2,174			7,503		5,937
Marketing and advertising		605		693		425			683		539			1,723		1,380
Deposit insurance premiums		662		812		893			698		765			2,367		2,014
Intangible expenses		309		342		341			267		214			992		712
Other expense		5,795		6,440		6,105			5,746		6,116			18,340		16,992
Total noninterest expense		46,665		47,371		45,412			43,335		43,248			139,448		124,074
Income before taxes		25,986		16,424		25,168			21,990		26,173			67,578		92,340
Income tax expense		5,185		3,258		4,851			4,578		5,262			13,294		17,951
Net income	$	20,801	$	13,166	$	20,317		$	17,412	$	20,911		$	54,284	$	74,389
Net income per share:
Basic	$	0.71	$	0.45	$	0.69		$	0.59	$	0.71		$	1.85	$	2.53
Diluted	$	0.71	$	0.45	$	0.68		$	0.59	$	0.71		$	1.84	$	2.52
Dividends declared per share	$	0.21	$	0.21	$	0.20		$	0.20	$	0.20		$	0.62	$	0.60
Weighted average shares outstanding		29,290,829		29,490,154		29,542,467			29,471,304		29,420,256			29,440,228		29,379,774
Period end shares outstanding		29,242,451		29,365,775		29,636,425			29,500,542		29,438,402			29,242,451		29,438,402

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2022



	For the three months ended,															For the nine months ended,
Profitability Ratios (annualized)	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21			09/30/22			09/30/21

Return on average assets		1.21	%		0.76	%		1.17	%		0.97	%		1.24	%		1.05	%		1.53	%
Return on average shareholders' equity		10.67	%		6.85	%		10.64	%		9.06	%		11.12	%		9.39	%		13.72	%
Return on average tangible common equity (1)(3)		14.06	%		9.10	%		14.04	%		11.93	%		14.63	%		12.40	%		18.21	%
Net interest margin (FTE)		3.67	%		3.19	%		2.89	%		2.86	%		3.11	%		3.25	%		3.13	%
Efficiency ratio (2)		60.6	%		66.6	%		67.0	%		64.3	%		61.8	%		64.6	%		59.8	%

Capitalization Ratios

Dividends declared to net income		29.7	%		47.1	%		29.1	%		33.9	%		28.1	%		33.7	%		23.7	%
Shareholders' equity to assets (Period End)		10.92	%		11.40	%		10.89	%		10.86	%		10.83	%		10.92	%		10.83	%
Tangible common equity to tangible assets (1)		8.55	%		8.97	%		8.58	%		8.56	%		8.55	%		8.55	%		8.55	%
Common equity book value per share	$	25.79		$	26.01		$	26.11		$	26.23		$	25.68		$	25.79		$	25.68
Tangible common equity book value per share (1)	$	19.67		$	19.91		$	20.06		$	20.14		$	19.75		$	19.67		$	19.75

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.87	%		9.45	%		9.35	%		9.13	%		9.53	%		9.87	%		9.53	%
Common equity tier 1 risk-based capital ratio		10.51	%		10.62	%		11.07	%		11.08	%		11.15	%		10.51	%		11.15	%
Tier 1 risk-based capital ratio		10.51	%		10.62	%		11.07	%		11.08	%		11.15	%		10.51	%		11.15	%
Total risk-based capital ratio		13.10	%		13.23	%		13.73	%		13.77	%		13.87	%		13.10	%		13.87	%

(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	September 30, 2022							June 30, 2022
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	49,476		$	252	2.02	%	$	474,260		$	824	0.70	%
U.S. government obligations		565			3	2.11			2,000			11	2.21
Obligations of state and political subdivisions*		2,308			18	3.09			2,302			17	2.96
Other debt and equity securities		514,462			3,010	2.32			511,439			2,727	2.14
Federal Home Loan Bank, Federal Reserve Bank and other stock		28,368			435	6.08			26,221			344	5.26
Total interest-earning deposits, investments and other interest-earning assets		595,179			3,718	2.48			1,016,222			3,923	1.55

Commercial, financial, and agricultural loans		977,549			11,996	4.87			937,846			9,037	3.86
Paycheck Protection Program loans		3,754			40	4.23			7,644			155	8.13
Real estate—commercial and construction loans		3,105,821			34,100	4.36			3,004,509			28,527	3.81
Real estate—residential loans		1,256,509			12,492	3.94			1,166,201			10,758	3.70
Loans to individuals		27,197			381	5.56			26,782			305	4.57
Municipal loans and leases *		235,433			2,432	4.10			235,922			2,404	4.09
Lease financings		145,856			2,195	5.97			141,676			2,105	5.96
Gross loans and leases		5,752,119			63,636	4.39			5,520,580			53,291	3.87
Total interest-earning assets		6,347,298			67,354	4.21			6,536,802			57,214	3.51
Cash and due from banks		62,930							55,634
Allowance for credit losses, loans and leases		(72,355	)						(68,426	)
Premises and equipment, net		50,476							50,266
Operating lease right-of-use assets		30,740							30,222
Other assets		378,377							357,903
Total assets	$	6,797,466						$	6,962,401

Liabilities:
Interest-bearing checking deposits	$	881,395		$	1,251	0.56	%	$	851,324		$	570	0.27	%
Money market savings		1,246,795			3,709	1.18			1,405,536			1,552	0.44
Regular savings		1,086,191			302	0.11			1,070,480			237	0.09
Time deposits		416,539			1,189	1.13			452,989			1,227	1.09
Total time and interest-bearing deposits		3,630,920			6,451	0.70			3,780,329			3,586	0.38

Short-term borrowings		104,453			524	1.99			17,253			11	0.26
Long-term debt		95,000			324	1.35			95,000			321	1.36
Subordinated notes		99,065			1,328	5.32			98,988			1,328	5.38
Total borrowings		298,518			2,176	2.89			211,241			1,660	3.15
Total interest-bearing liabilities		3,929,438			8,627	0.87			3,991,570			5,246	0.53
Noninterest-bearing deposits		2,014,371							2,122,844
Operating lease liabilities		33,786							33,300
Accrued expenses and other liabilities		46,772							43,277
Total liabilities		6,024,367							6,190,991

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		299,135							298,241
Retained earnings and other equity		316,180							315,385
Total shareholders' equity		773,099							771,410
Total liabilities and shareholders' equity	$	6,797,466						$	6,962,401
Net interest income				$	58,727						$	51,968

Net interest spread						3.34							2.98
Effect of net interest-free funding sources						0.33							0.21
Net interest margin						3.67	%						3.19	%
Ratio of average interest-earning assets to average interest-bearing liabilities		161.53	%						163.77	%

* 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 of $(498) thousand and $(618) thousand for the three months ended September 30, 2022 and June 30, 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 September 30, 2022 and June 30, 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 Three Months Ended September 30,
Tax Equivalent Basis	2022							2021
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	49,476		$	252	2.02	%	$	530,191		$	189	0.14	%
U.S. government obligations		565			3	2.11			6,999			36	2.04
Obligations of state and political subdivisions*		2,308			18	3.09			2,992			24	3.18
Other debt and equity securities		514,462			3,010	2.32			385,289			1,516	1.56
Federal Home Loan Bank, Federal Reserve Bank and other stock		28,368			435	6.08			26,713			334	4.96
Total interest-earning deposits, investments and other interest-earning assets		595,179			3,718	2.48			952,184			2,099	0.87

Commercial, financial, and agricultural loans		977,549			11,996	4.87			880,986			7,412	3.34
Paycheck Protection Program loans		3,754			40	4.23			162,611			4,162	10.15
Real estate—commercial and construction loans		3,105,821			34,100	4.36			2,784,398			25,634	3.65
Real estate—residential loans		1,256,509			12,492	3.94			1,100,799			10,171	3.67
Loans to individuals		27,197			381	5.56			26,048			253	3.85
Municipal loans and leases*		235,433			2,432	4.10			247,603			2,504	4.01
Lease financings		145,856			2,195	5.97			117,966			1,856	6.24
Gross loans and leases		5,752,119			63,636	4.39			5,320,411			51,992	3.88
Total interest-earning assets		6,347,298			67,354	4.21			6,272,595			54,091	3.42
Cash and due from banks		62,930							59,642
Allowance for credit losses, loans and leases		(72,355	)						(72,606	)
Premises and equipment, net		50,476							55,685
Operating lease right-of-use assets		30,740							31,998
Other assets		378,377							350,863
Total assets	$	6,797,466						$	6,698,177

Liabilities:
Interest-bearing checking deposits	$	881,395		$	1,251	0.56	%	$	857,098		$	537	0.25	%
Money market savings		1,246,795			3,709	1.18			1,382,832			922	0.26
Regular savings		1,086,191			302	0.11			998,568			281	0.11
Time deposits		416,539			1,189	1.13			496,702			1,490	1.19
Total time and interest-bearing deposits		3,630,920			6,451	0.70			3,735,200			3,230	0.34

Short-term borrowings		104,453			524	1.99			15,116			2	0.05
Long-term debt		95,000			324	1.35			95,000			324	1.35
Subordinated notes		99,065			1,328	5.32			98,754			1,328	5.34
Total borrowings		298,518			2,176	2.89			208,870			1,654	3.14
Total interest-bearing liabilities		3,929,438			8,627	0.87			3,944,070			4,884	0.49
Noninterest-bearing deposits		2,014,371							1,931,525
Operating lease liabilities		33,786							35,094
Accrued expenses and other liabilities		46,772							41,303
Total liabilities		6,024,367							5,951,992

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		299,135							297,482
Retained earnings and other equity		316,180							290,919
Total shareholders' equity		773,099							746,185
Total liabilities and shareholders' equity	$	6,797,466						$	6,698,177
Net interest income				$	58,727						$	49,207

Net interest spread						3.34							2.93
Effect of net interest-free funding sources						0.33							0.18
Net interest margin						3.67	%						3.11	%
Ratio of average interest-earning assets to average interest-bearing liabilities		161.53	%						159.04	%

* 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) fees of $(498) thousand and $3.0 million for the three months ended September 30, 2022 and 2021, 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, 2022 and 2021 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 Basis	2022							2021
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	416,466		$	1,433	0.46	%	$	328,768		$	291	0.12	%
U.S. government obligations		2,578			40	2.07			6,999			107	2.04
Obligations of state and political subdivisions*		2,314			54	3.12			6,838			187	3.66
Other debt and equity securities		513,491			8,076	2.10			371,355			4,147	1.49
Federal Home Loan Bank, Federal Reserve Bank and other stock		27,239			1,134	5.57			26,319			1,042	5.29
Total interest-earning deposits, investments and other interest-earning assets		962,088			10,737	1.49			740,279			5,774	1.04

Commercial, financial, and agricultural loans		939,261			28,604	4.07			830,248			21,120	3.40
Paycheck Protection Program loans		9,880			786	10.64			358,231			13,464	5.03
Real estate—commercial and construction loans		3,005,714			88,447	3.93			2,703,100			75,023	3.71
Real estate—residential loans		1,180,202			33,132	3.75			1,067,855			29,880	3.74
Loans to individuals		26,598			924	4.64			25,925			769	3.97
Municipal loans and leases*		237,928			7,270	4.09			248,191			7,632	4.11
Lease financings		141,041			6,375	6.04			111,569			5,412	6.49
Gross loans and leases		5,540,624			165,538	3.99			5,345,119			153,300	3.83
Total interest-earning assets		6,502,712			176,275	3.62			6,085,398			159,074	3.49
Cash and due from banks		57,455							55,983
Allowance for credit losses, loans and leases		(70,950	)						(76,265	)
Premises and equipment, net		51,551							55,803
Operating lease right-of-use assets		30,453							33,334
Other assets		363,810							355,323
Total assets	$	6,935,031						$	6,509,576

Liabilities:
Interest-bearing checking deposits	$	871,393		$	2,264	0.35	%	$	820,800		$	1,514	0.25	%
Money market savings		1,397,220			6,165	0.59			1,282,470			2,606	0.27
Regular savings		1,059,644			777	0.10			979,013			861	0.12
Time deposits		447,497			3,722	1.11			502,414			4,808	1.28
Total time and interest-bearing deposits		3,775,754			12,928	0.46			3,584,697			9,789	0.37

Short-term borrowings		46,765			537	1.54			17,363			7	0.05
Long-term debt		95,000			962	1.35			97,088			993	1.37
Subordinated notes		98,989			3,984	5.38			151,060			5,822	5.15
Total borrowings		240,754			5,483	3.04			265,511			6,822	3.44
Total interest-bearing liabilities		4,016,508			18,411	0.61			3,850,208			16,611	0.58
Noninterest-bearing deposits		2,067,428							1,854,648
Operating lease liabilities		33,514							36,636
Accrued expenses and other liabilities		44,630							43,023
Total liabilities		6,162,080							5,784,515

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		298,784							296,744
Retained earnings and other equity		316,383							270,533
Total shareholders' equity		772,951							725,061
Total liabilities and shareholders' equity	$	6,935,031						$	6,509,576
Net interest income				$	157,864						$	142,463

Net interest spread						3.01							2.91
Effect of net interest-free funding sources						0.24							0.22
Net interest margin						3.25	%						3.13	%
Ratio of average interest-earning assets to average interest-bearing liabilities		161.90	%						158.05	%

* 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) fees of $(1.3) million and $8.0 million for the nine months ended September 30, 2022 and 2021, 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, 2022 and 2021 have been calculated using the Corporation's federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2022

(Dollars in thousands)
Industry Description		Total Outstanding Balance (excl PPP)	% of Commercial Loan Portfolio
CRE - Retail	$	378,087	7.9	%
Animal Production		332,130	7.0
CRE - Multi-family		263,698	5.5
CRE - 1-4 Family Residential Investment		249,149	5.2
CRE - Office		201,659	4.2
CRE - Industrial / Warehouse		185,952	3.9
Hotels & Motels (Accommodation)		170,627	3.6
Nursing and Residential Care Facilities		168,576	3.5
Education		155,122	3.3
Specialty Trade Contractors		147,227	3.1
Homebuilding (tract developers, remodelers)		133,902	2.8
Motor Vehicle and Parts Dealers		113,639	2.4
Merchant Wholesalers, Durable Goods		108,825	2.3
CRE - Medical Office		105,744	2.2
CRE - Mixed-Use - Residential		105,702	2.2
Crop Production		91,597	1.9
CRE - Mixed-Use - Commercial		85,172	1.8
Food Manufacturing		84,131	1.8
Wood Product Manufacturing		75,768	1.6
Rental and Leasing Services		74,514	1.6
Administrative and Support Services		73,558	1.5
Religious Organizations, Advocacy Groups		73,091	1.5
Merchant Wholesalers, Nondurable Goods		70,679	1.5
Food Services and Drinking Places		70,498	1.5
Personal and Laundry Services		60,651	1.3
Fabricated Metal Product Manufacturing		56,640	1.2
Repair and Maintenance		56,623	1.2
Miniwarehouse / Self-Storage		56,279	1.2
Truck Transportation		50,969	1.1
Industries with >$50 million in outstandings	$	3,800,209	79.8	%
Industries with <$50 million in outstandings	$	962,480	20.2	%
Total Commercial Loans	$	4,762,689	100.0	%


Consumer Loans and Lease Financings		Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose	$	685,771
Real Estate-Home Equity Secured for Personal Purpose		175,843
Loans to Individuals		26,679
Lease Financings		196,070
Total - Consumer Loans and Lease Financings	$	1,084,363

Total	$	5,847,052

Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2022


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 nine months ended,
(Dollars in thousands)	09/30/22			06/30/22			03/31/22			12/31/21			09/30/21			09/30/22			09/30/21
Net income	$	20,801		$	13,166		$	20,317		$	17,412		$	20,911		$	54,284		$	74,389
Amortization of intangibles, net of tax		244			270			269			211			169			784			562
Net income before amortization of intangibles	$	21,045		$	13,436		$	20,586		$	17,623		$	21,080		$	55,068		$	74,951

Shareholders' equity	$	754,187		$	763,925		$	773,855		$	773,794		$	756,023		$	754,187		$	756,023
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(172,559	)		(175,510	)		(172,559	)
Other intangibles (a)		(3,485	)		(3,678	)		(3,936	)		(4,210	)		(1,922	)		(3,485	)		(1,922	)
Tangible common equity	$	575,192		$	584,737		$	594,409		$	594,074		$	581,542		$	575,192		$	581,542

Total assets	$	6,907,397		$	6,700,813		$	7,107,740		$	7,122,421		$	6,979,852		$	6,907,397		$	6,979,852
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(172,559	)		(175,510	)		(172,559	)
Other intangibles (a)		(3,485	)		(3,678	)		(3,936	)		(4,210	)		(1,922	)		(3,485	)		(1,922	)
Tangible assets	$	6,728,402		$	6,521,625		$	6,928,294		$	6,942,701		$	6,805,371		$	6,728,402		$	6,805,371

Average shareholders' equity	$	773,099		$	771,410		$	774,358		$	762,334		$	746,185		$	772,951		$	725,061
Average goodwill		(175,510	)		(175,510	)		(175,510	)		(173,553	)		(172,559	)		(175,510	)		(172,559	)
Average other intangibles (a)		(3,550	)		(3,791	)		(4,090	)		(2,696	)		(1,983	)		(3,808	)		(2,217	)
Average tangible common equity	$	594,039		$	592,109		$	594,758		$	586,085		$	571,643		$	593,633		$	550,285

Loans and leases held for investment, gross	$	5,849,259		$	5,661,777		$	5,400,786		$	5,310,017		$	5,252,045		$	5,849,259		$	5,252,045
Paycheck Protection Program ("PPP") loans		(2,207	)		(5,358	)		(10,298	)		(31,748	)		(85,601	)		(2,207	)		(85,601	)
Gross loans and leases excluding PPP loans	$	5,847,052		$	5,656,419		$	5,390,488		$	5,278,269		$	5,166,444		$	5,847,052		$	5,166,444

(a) 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 Third Quarter Results