0000102212FALSE00001022122024-07-242024-07-24

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): July 24, 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 July 24, 2024, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2024 second quarter earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.
On July 24, 2024, the Board of Directors of the Corporation appointed Domenick A. Cama to serve as an Alternate Director of the Corporation, effective August 1, 2024, and to serve as a Class I Director, effective October 1, 2024. Mr. Cama's term as an Alternate Director will end upon his appointment as a Class I Director effective October 1, 2024. Mr. Cama's term as a Class I Director will expire at the 2027 annual shareholders meeting.
Prior to his appointment as an Alternate Director to the Corporation's Board of Directors, Mr. Cama most recently served as the President of the NYC Metro and New Jersey Market for Citizens Financial Group until his retirement in 2024. Prior to Investor's acquisition by Citizens Financial Group in 2022, Mr. Cama was the President and Chief Operating Officer of Investors Bancorp and Investors Bank since 2008 and a member of the Board of Directors of Investors Bancorp and Investors Bank since 2011. Mr. Cama also served as Investors Bank's Chief Financial Officer from 2003-2008. During his tenure as CFO, Mr. Cama had primary responsibility for the Company’s successful conversion to a publicly traded stock company. Mr. Cama currently serves on the boards of Catholic Charities of Brooklyn and Queens and the Cathedral Club of Brooklyn. Mr. Cama holds a Bachelor’s degree in Economics and a Master’s degree in Finance from Pace University.

On July 24, 2024, the Board of Directors of the Corporation appointed Anne Vazquez, who is presently serving as an Alternate Director of the Corporation, as a Class III director, effective October 1, 2024. Ms. Vazquez's term will expire at the 2026 annual shareholders meeting.
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
July 25, 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
logo.jpg

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

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION REPORTS SECOND QUARTER RESULTS

SOUDERTON, Pa., July 24, 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 June 30, 2024 was $18.1 million, or $0.62 diluted earnings per share, compared to net income of $16.8 million, or $0.57 diluted earnings per share, for the quarter ended June 30, 2023.

One-Time Items
The financial results for the quarter included tax-free bank owned life insurance ("BOLI") death benefit claims of $171 thousand, which represented $0.01 diluted earnings per share. The financial results for the second quarter of 2023 included a $1.3 million ($1.1 million after-tax), or $0.04 diluted earnings per share, restructuring charge associated with expense management strategies deployed in response to macroeconomic headwinds. Excluding these one-time items, diluted earnings per share was $0.61 for the quarters ended June 30, 2024 and June 30, 2023.

Loans
Gross loans and leases increased $105.8 million, or 1.6% (6.4% annualized), from March 31, 2024, and $117.6 million, or 1.8% (3.6% 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 $90.0 million, or 1.4% (5.6% annualized), from March 31, 2024, primarily due to increases in commercial and consumer deposits, partially offset by decreases in brokered and public funds deposits. Total deposits increased $119.5 million, or 1.9% (3.8% annualized), from December 31,


2023, primarily due to increases in commercial, consumer and brokered deposits, partially offset by a seasonal decrease in public funds deposits. Noninterest-bearing deposits represented 21.5% of total deposits at June 30, 2024, down from 21.9% at March 31, 2024. At June 30, 2024, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 22.1% of total deposits, down from 22.3% at March 31, 2024.

As of June 30, 2024, the Corporation reported on balance sheet cash and cash equivalents totaling $190.9 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.6 billion at June 30, 2024, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $459.0 million at June 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 $51.0 million for the second quarter of 2024 decreased $3.3 million, or 6.1%, from the second quarter of 2023 and $440 thousand, or 0.9%, from the first quarter of 2024. The decreases in net interest income for both comparison periods reflects the continued pressure on the cost of deposits due to the shift of balances from lower to higher cost deposit products which has 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 funding mix.

Net interest margin, on a tax-equivalent basis, was 2.84% for the second quarter of 2024, compared to 2.88% for the first quarter of 2024 and 3.14% for the second quarter of 2023. Excess liquidity reduced net interest margin by approximately two basis points for the quarter ended June 30, 2024 compared to approximately three basis points for the quarter ended March 31, 2024. Excess liquidity had no impact on net interest margin for the quarter ended June 30, 2023.

Noninterest Income
Noninterest income for the quarter ended June 30, 2024 was $21.0 million, an increase of $1.1 million, or 5.8%, from the comparable period in the prior year.

Net gain on mortgage banking activities increased $671 thousand, or 64.6%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to increased salable volume. Investment advisory commission and fee income increased $530 thousand, or 11.3%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to increased assets under management driven by market appreciation and new customer relationships. Bank owned life insurance income increased $297 thousand, or 37.6%, for the quarter ended June 30,


2024 compared to the three months ended June 30, 2023, primarily due to the previously discussed death benefit claims. Service charges on deposit accounts increased $257 thousand, or 14.9%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to increased treasury management income.

Other service fee income decreased $274 thousand, or 8.3%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to reduced servicing fees resulting from the sale of the mortgage servicing rights in the first quarter of 2024 associated with $591.1 million of serviced loans.

Other income decreased $477 thousand, or 39.0%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023. Fees on risk participation agreements for interest rate swaps decreased $710 thousand due to reduced customer demand. Additionally, the second quarter of 2023 included a loss of $250 thousand on the sale of an interest in a shared national credit.

Noninterest Expense
Noninterest expense for the quarter ended June 30, 2024 was $48.7 million, a decrease of $1.1 million, or 2.2%, from the comparable period in the prior year.

As previously discussed, the second quarter of 2023 included restructuring charges of $1.3 million. Excluding restructuring charges, noninterest expense for the quarter ended June 30, 2024 increased $239 thousand, or 0.5%, from the comparable period in the prior year, which reflects the benefit of the various expense management strategies deployed during 2023.

Salaries, benefits and commissions increased $312 thousand, or 1.0%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023, primarily due to decreased capitalized compensation driven by lower loan production, partially offset by decreased salary expense due to staff reductions over the last twelve months.

Tax Provision
The effective income tax rate was 19.9% for the quarter ended June 30, 2024, compared to an effective tax rate of 19.8% for the quarter ended June 30, 2023. The effective tax rates for the three months ended June 30, 2024 and 2023 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rate for the three months ended June 30, 2024 was favorably impacted by proceeds from BOLI death benefits. Excluding these BOLI death benefits, the effective tax rate was 20.0% for the three months ended June 30, 2024.



Asset Quality and Provision for Credit Losses
Nonperforming assets were $36.6 million at June 30, 2024, compared to $40.0 million at March 31, 2024 and $34.5 million at June 30, 2023. The decrease in nonperforming assets from March 31, 2024 was primarily due to pay-downs of $2.2 million on two nonaccrual construction loans to one borrower.

Net loan and lease charge-offs were $809 thousand for the three months ended June 30, 2024 compared to $1.4 million and $512 thousand for the three months ended March 31, 2024 and June 30, 2023, respectively.

The provision for credit losses was $707 thousand for the three months ended June 30, 2024 compared to $1.4 million and $3.4 million for the three months ended March 31, 2024 and June 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 June 30, 2024 and June 30, 2023, and 1.30% at March 31, 2024.

Dividend and Share Repurchases
On July 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on August 21, 2024 to shareholders of record as of August 7, 2024. During the quarter ended June 30, 2024, the Corporation repurchased 190,808 shares of common stock at an average price of $20.93 per share. Including brokerage fees and excise tax, the average price per share was $21.17. As of June 30, 2024, 696,374 shares are available for repurchase under the Share Repurchase Plan.

Conference Call
Univest will host a conference call to discuss second quarter 2024 results on Thursday, July 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=962df298&confId=68082. The general public can access the call by dialing 1-833-470-1428; using Access Code 117459. A replay of the conference call will be available through September 23, 2024 by dialing 1-866-813-9403; using Access Code 310450.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.9 billion in assets and $5.0 billion in assets under management and supervision through its Wealth Management lines of business at June 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; (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; (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)
June 30, 2024
(Dollars in thousands)
Balance Sheet (Period End)6/30/20243/31/202412/31/20239/30/20236/30/2023
ASSETS
Cash and due from banks $66,808 $49,318 $72,815 $68,900 $80,795 
Interest-earning deposits with other banks 124,103 152,288 176,984 221,441 59,616 
Cash and cash equivalents190,911 201,606 249,799 290,341 140,411 
Investment securities held-to-maturity140,112 143,474 145,777 149,451 153,509 
Investment securities available for sale, net of allowance for credit losses342,776 350,819 351,553 334,538 356,164 
Investments in equity securities2,995 3,355 3,293 4,054 3,443 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost37,438 37,394 40,499 42,417 42,811 
Loans held for sale28,176 13,188 11,637 16,473 29,526 
Loans and leases held for investment6,684,837 6,579,086 6,567,214 6,574,958 6,462,238 
Less: Allowance for credit losses, loans and leases (85,745)(85,632)(85,387)(83,837)(82,709)
Net loans and leases held for investment6,599,092 6,493,454 6,481,827 6,491,121 6,379,529 
Premises and equipment, net 48,174 48,739 51,441 51,287 52,058 
Operating lease right-of-use assets29,985 30,702 31,795 31,053 30,237 
Goodwill175,510 175,510 175,510 175,510 175,510 
Other intangibles, net of accumulated amortization7,701 7,473 10,950 11,079 10,923 
Bank owned life insurance137,823 137,896 131,344 130,522 129,715 
Accrued interest and other assets 114,753 102,958 95,203 100,220 96,314 
Total assets $7,855,446 $7,746,568 $7,780,628 $7,828,066 $7,600,150 
LIABILITIES
Noninterest-bearing deposits$1,397,308 $1,401,806 $1,468,320 $1,432,559 $1,582,767 
Interest-bearing deposits:5,098,014 5,003,552 4,907,461 5,006,606 4,404,635 
Total deposits 6,495,322 6,405,358 6,375,781 6,439,165 5,987,402 
Short-term borrowings11,781 4,816 6,306 14,676 244,666 
Long-term debt 250,000 250,000 310,000 320,000 320,000 
Subordinated notes 149,011 148,886 148,761 148,636 148,510 
Operating lease liabilities33,015 33,744 34,851 34,017 33,428 
Accrued expenses and other liabilities 62,180 60,095 65,721 64,374 60,922 
Total liabilities 7,001,309 6,902,899 6,941,420 7,020,868 6,794,928 
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 capital300,166 298,914 301,066 300,171 299,212 
Retained earnings500,482 488,790 474,691 464,634 453,806 
Accumulated other comprehensive loss, net of tax benefit(54,124)(54,740)(50,646)(71,586)(61,034)
Treasury stock, at cost(50,171)(47,079)(43,687)(43,805)(44,546)
Total shareholders’ equity854,137 843,669 839,208 807,198 805,222 
Total liabilities and shareholders’ equity$7,855,446 $7,746,568 $7,780,628 $7,828,066 $7,600,150 
For the three months ended,For the six months ended,
Balance Sheet (Average)6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Assets$7,721,540 $7,696,575 $7,865,634 $7,693,983 $7,440,798 $7,709,058 $7,330,616 
Investment securities, net of allowance for credit losses493,140 500,983 489,587 506,341 518,995 497,061 517,446 
Loans and leases, gross6,640,536 6,577,365 6,594,233 6,537,169 6,372,342 6,608,950 6,269,190 
Deposits6,353,752 6,303,854 6,470,141 6,222,710 5,844,582 6,328,804 5,839,526 
Shareholders' equity844,572 842,546 814,941 811,515 806,709 843,559 797,980 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
June 30, 2024
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)6/30/20243/31/202412/31/20239/30/20236/30/2023
Commercial, financial and agricultural$1,055,332 $1,014,568 $989,723 $1,050,004 $1,039,265 
Real estate-commercial3,373,889 3,283,729 3,302,798 3,275,140 3,221,993 
Real estate-construction313,229 379,995 394,462 427,561 413,404 
Real estate-residential secured for business purpose532,628 524,196 517,002 516,471 517,521 
Real estate-residential secured for personal purpose952,665 922,412 909,015 861,122 832,632 
Real estate-home equity secured for personal purpose179,150 177,446 179,282 176,855 175,090 
Loans to individuals26,430 27,200 27,749 27,331 25,544 
Lease financings251,514 249,540 247,183 240,474 236,789 
Total loans and leases held for investment, net of deferred income6,684,837 6,579,086 6,567,214 6,574,958 6,462,238 
Less: Allowance for credit losses, loans and leases(85,745)(85,632)(85,387)(83,837)(82,709)
Net loans and leases held for investment$6,599,092 $6,493,454 $6,481,827 $6,491,121 $6,379,529 
Asset Quality Data (Period End)6/30/20243/31/202412/31/20239/30/20236/30/2023
Nonaccrual loans and leases, including nonaccrual loans held for sale*$16,200 $20,363 $20,527 $18,085 $15,087 
Accruing loans and leases 90 days or more past due205 268 534 2,135 55 
Total nonperforming loans and leases16,405 20,631 21,061 20,220 15,142 
Other real estate owned20,007 19,220 19,032 19,916 19,345 
Repossessed assets149 167 — — — 
Total nonperforming assets$36,561 $40,018 $40,093 $40,136 $34,487 
Nonaccrual loans and leases / Loans and leases held for investment0.24 %0.31 %0.31 %0.28 %0.23 %
Nonperforming loans and leases / Loans and leases held for investment0.25 %0.32 %0.32 %0.31 %0.23 %
Nonperforming assets / Total assets0.47 %0.52 %0.52 %0.51 %0.45 %
Allowance for credit losses, loans and leases$85,745 $85,632 $85,387 $83,837 $82,709 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.28 %1.30 %1.30 %1.28 %1.28 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases529.29 %420.53 %415.97 %463.57 %548.21 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases522.68 %415.06 %405.43 %414.62 %546.22 %
*Includes a $5.8 million loan held for sale at September 30, 2023.
For the three months ended,For the six months ended,
6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Net loan and lease charge-offs$809 $1,406 $1,074 $969 $512 $2,215 $3,354 
Net loan and lease charge-offs (annualized)/Average loans and leases0.05 %0.09 %0.06 %0.06 %0.03 %0.07 %0.11 %


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2024
(Dollars in thousands, except per share data)
For the three months ended,For the six months ended,
For the period:6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Interest income$99,832 $98,609 $101,232 $97,106 $90,139 $198,441 $173,392 
Interest expense48,805 47,142 48,472 43,516 35,809 95,947 59,745 
Net interest income51,027 51,467 52,760 53,590 54,330 102,494 113,647 
Provision for credit losses707 1,432 1,931 2,024 3,428 2,139 6,815 
Net interest income after provision for credit losses50,320 50,035 50,829 51,566 50,902 100,355 106,832 
Noninterest income:
Trust fee income2,008 2,108 1,943 1,910 1,924 4,116 3,879 
Service charges on deposit accounts1,982 1,871 1,960 1,816 1,725 3,853 3,272 
Investment advisory commission and fee income5,238 5,194 4,561 4,843 4,708 10,432 9,460 
Insurance commission and fee income5,167 7,201 4,596 4,852 5,108 12,368 11,595 
Other service fee income3,044 6,415 2,967 3,020 3,318 9,459 6,394 
Bank owned life insurance income1,086 842 823 806 789 1,928 1,556 
Net gain on mortgage banking activities1,710 939 809 1,216 1,039 2,649 1,664 
Other income745 1,025 961 228 1,222 1,770 1,693 
Total noninterest income20,980 25,595 18,620 18,691 19,833 46,575 39,513 
Noninterest expense:
Salaries, benefits and commissions30,187 31,338 29,321 29,978 29,875 61,525 60,889 
Net occupancy2,679 2,872 2,751 2,594 2,614 5,551 5,341 
Equipment1,088 1,111 1,066 1,087 986 2,199 1,979 
Data processing4,161 4,495 4,444 4,189 4,137 8,656 8,166 
Professional fees1,466 1,688 1,768 1,763 1,669 3,154 3,610 
Marketing and advertising715 416 632 555 622 1,131 993 
Deposit insurance premiums1,098 1,135 1,350 1,258 1,116 2,233 2,217 
Intangible expenses188 187 212 220 253 375 506 
Restructuring charges— — 189 — 1,330 — 1,330 
Other expense7,126 6,832 7,313 7,344 7,197 13,958 14,297 
Total noninterest expense48,708 50,074 49,046 48,988 49,799 98,782 99,328 
Income before taxes22,592 25,556 20,403 21,269 20,936 48,148 47,017 
Income tax expense4,485 5,251 4,149 4,253 4,136 9,736 9,183 
Net income$18,107 $20,305 $16,254 $17,016 $16,800 $38,412 $37,834 
Net income per share:
Basic$0.62 $0.69 $0.55 $0.58 $0.57 $1.31 $1.29 
Diluted$0.62 $0.69 $0.55 $0.58 $0.57 $1.30 $1.28 
Dividends declared per share$0.21 $0.21 $0.21 $0.21 $0.21 $0.42 $0.42 
Weighted average shares outstanding29,246,977 29,413,999 29,500,147 29,479,066 29,439,392 29,330,488 29,376,179 
Period end shares outstanding29,190,640 29,337,919 29,511,721 29,508,128 29,471,124 29,190,640 29,471,124 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2024
For the three months ended,For the six months ended,
Profitability Ratios (annualized)6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Return on average assets0.94 %1.06 %0.82 %0.88 %0.91 %1.00 %1.04 %
Return on average assets, excluding restructuring charges (1)0.94 %1.06 %0.83 %0.88 %0.96 %1.00 %1.07 %
Return on average shareholders' equity8.62 %9.69 %7.91 %8.32 %8.35 %9.16 %9.56 %
Return on average shareholders' equity, excluding restructuring charges (1)8.62 %9.69 %7.99 %8.32 %8.88 %9.16 %9.83 %
Return on average tangible common equity (1)(3)11.01 %12.38 %10.23 %10.77 %10.85 %11.69 %12.45 %
Return on average tangible common equity, excluding restructuring charges (1)(3)11.01 %12.38 %10.32 %10.77 %11.52 %11.69 %12.79 %
Net interest margin (FTE)2.84 %2.88 %2.84 %2.96 %3.14 %2.86 %3.35 %
Efficiency ratio (2)67.1 %64.6 %68.3 %67.3 %66.7 %65.8 %64.4 %
Efficiency ratio, excluding restructuring charges (1)(2)67.1 %64.6 %68.0 %67.3 %64.9 %65.8 %63.5 %
Capitalization Ratios
Dividends declared to net income33.9 %30.5 %38.1 %36.4 %36.8 %32.1 %32.6 %
Shareholders' equity to assets (Period End)10.87 %10.89 %10.79 %10.31 %10.59 %10.87 %10.59 %
Tangible common equity to tangible assets (1)8.81 %8.80 %8.70 %8.22 %8.45 %8.81 %8.45 %
Common equity book value per share$29.26 $28.76 $28.44 $27.36 $27.32 $29.26 $27.32 
Tangible common equity book value per share (1)$23.17 $22.70 $22.41 $21.32 $21.27 $23.17 $21.27 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.74 %9.65 %9.36 %9.43 %9.59 %9.74 %9.59 %
Common equity tier 1 risk-based capital ratio10.72 %10.71 %10.58 %10.32 %10.26 %10.72 %10.26 %
Tier 1 risk-based capital ratio10.72 %10.71 %10.58 %10.32 %10.26 %10.72 %10.26 %
Total risk-based capital ratio14.09 %14.11 %13.90 %13.58 %13.54 %14.09 %13.54 %
(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 BasisJune 30, 2024March 31, 2024
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$84,546 $1,108 5.27 %$120,845 $1,609 5.36 %
Obligations of state and political subdivisions*1,269 7 2.22 1,951 12 2.47 
Other debt and equity securities491,871 3,741 3.06 499,032 3,647 2.94 
Federal Home Loan Bank, Federal Reserve Bank and other stock37,286 700 7.55 39,115 724 7.44 
Total interest-earning deposits, investments and other interest-earning assets614,972 5,556 3.63 660,943 5,992 3.65 
Commercial, financial, and agricultural loans983,615 17,447 7.13 934,649 16,523 7.11 
Real estate—commercial and construction loans3,549,206 50,577 5.73 3,575,142 50,641 5.70 
Real estate—residential loans1,660,489 20,413 4.94 1,618,188 19,555 4.86 
Loans to individuals26,821 542 8.13 27,315 548 8.07 
Municipal loans and leases*230,495 2,476 4.32 232,380 2,464 4.26 
Lease financings189,910 3,105 6.58 189,691 3,169 6.72 
     Gross loans and leases6,640,536 94,560 5.73 6,577,365 92,900 5.68 
          Total interest-earning assets7,255,508 100,116 5.55 7,238,308 98,892 5.49 
Cash and due from banks56,387 54,870 
Allowance for credit losses, loans and leases(86,293)(86,495)
Premises and equipment, net48,725 50,592 
Operating lease right-of-use assets30,344 31,121 
Other assets416,869 408,179 
      Total assets$7,721,540 $7,696,575 
Liabilities:
Interest-bearing checking deposits$1,094,150 $7,311 2.69 %$1,180,696 $8,218 2.80 %
Money market savings1,692,759 19,131 4.55 1,705,291 19,220 4.53 
Regular savings759,960 929 0.49 769,926 905 0.47 
Time deposits1,422,113 16,134 4.56 1,238,878 13,630 4.42 
Total time and interest-bearing deposits4,968,982 43,505 3.52 4,894,791 41,973 3.45 
Short-term borrowings29,506 242 2.30 10,127 5 0.20 
Long-term debt250,000 2,777 4.47 292,486 2,883 3.96 
Subordinated notes148,943 2,281 6.16 148,818 2,281 6.16 
     Total borrowings428,449 5,300 4.98 451,431 5,169 4.61 
     Total interest-bearing liabilities5,397,431 48,805 3.64 5,346,222 47,142 3.55 
Noninterest-bearing deposits1,384,770 1,409,063 
Operating lease liabilities33,382 34,166 
Accrued expenses and other liabilities61,385 64,578 
     Total liabilities6,876,968 6,854,029 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,782,201 2.89 6,755,285 2.81 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital299,426 300,679 
Retained earnings and other equity387,362 384,083 
     Total shareholders' equity844,572 842,546 
     Total liabilities and shareholders' equity$7,721,540 $7,696,575 
Net interest income$51,311 $51,750 
Net interest spread1.91 1.94 
Effect of net interest-free funding sources0.93 0.94 
Net interest margin2.84 %2.88 %
Ratio of average interest-earning assets to average interest-bearing liabilities134.43 %135.39 %
*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 $698 thousand and $453 thousand for the three months ended June 30, 2024 and March 31, 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 June 30, 2024 and March 31, 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 June 30,
Tax Equivalent Basis20242023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$84,546 $1,108 5.27 %$46,897 $512 4.38 %
Obligations of state and political subdivisions*1,269 7 2.22 2,284 15 2.63 
Other debt and equity securities491,871 3,741 3.06 516,711 3,512 2.73 
Federal Home Loan Bank, Federal Reserve Bank and other stock37,286 700 7.55 43,783 781 7.15 
Total interest-earning deposits, investments and other interest-earning assets614,972 5,556 3.63 609,675 4,820 3.17 
Commercial, financial, and agricultural loans983,615 17,447 7.13 1,005,499 16,919 6.75 
Real estate—commercial and construction loans3,549,206 50,577 5.73 3,445,431 45,960 5.35 
Real estate—residential loans1,660,489 20,413 4.94 1,483,478 17,216 4.65 
Loans to individuals26,821 542 8.13 26,794 479 7.17 
Municipal loans and leases*230,495 2,476 4.32 234,940 2,388 4.08 
Lease financings189,910 3,105 6.58 176,200 2,659 6.05 
     Gross loans and leases6,640,536 94,560 5.73 6,372,342 85,621 5.39 
          Total interest-earning assets7,255,508 100,116 5.55 6,982,017 90,441 5.20 
Cash and due from banks56,387 58,675 
Allowance for credit losses, loans and leases(86,293)(81,641)
Premises and equipment, net48,725 52,540 
Operating lease right-of-use assets30,344 31,200 
Other assets416,869 398,007 
      Total assets$7,721,540 $7,440,798 
Liabilities:
Interest-bearing checking deposits$1,094,150 $7,311 2.69 %$1,011,889 $5,392 2.14 %
Money market savings1,692,759 19,131 4.55 1,460,899 14,089 3.87 
Regular savings759,960 929 0.49 888,680 845 0.38 
Time deposits1,422,113 16,134 4.56 823,665 7,141 3.48 
Total time and interest-bearing deposits4,968,982 43,505 3.52 4,185,133 27,467 2.63 
Short-term borrowings29,506 242 2.30 255,090 3,249 5.11 
Long-term debt250,000 2,777 4.47 301,593 2,811 3.74 
Subordinated notes148,943 2,281 6.16 148,443 2,282 6.17 
     Total borrowings428,449 5,300 4.98 705,126 8,342 4.75 
     Total interest-bearing liabilities5,397,431 48,805 3.64 4,890,259 35,809 2.94 
Noninterest-bearing deposits1,384,770 1,659,449 
Operating lease liabilities33,382 34,415 
Accrued expenses and other liabilities61,385 49,966 
     Total liabilities6,876,968 6,634,089 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,782,201 2.89 6,549,708 2.19 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital299,426 298,788 
Retained earnings and other equity387,362 350,137 
     Total shareholders' equity844,572 806,709 
     Total liabilities and shareholders' equity$7,721,540 $7,440,798 
Net interest income$51,311 $54,632 
Net interest spread1.91 2.26 
Effect of net interest-free funding sources0.93 0.88 
Net interest margin2.84 %3.14 %
Ratio of average interest-earning assets to average interest-bearing liabilities134.43 %142.77 %
*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 amortization of $698 thousand and $668 thousand for the three months ended June 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 June 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 Six Months Ended June 30,
Tax Equivalent Basis20242023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$102,696 $2,717 5.32 %$47,364 $991 4.22 %
Obligations of state and political subdivisions*1,610 19 2.37 2,285 32 2.82 
Other debt and equity securities495,451 7,388 3.00 515,161 7,007 2.74 
Federal Home Loan Bank, Federal Reserve Bank and other stock38,201 1,424 7.50 39,287 1,390 7.13 
Total interest-earning deposits, investments and other interest-earning assets637,958 11,548 3.64 604,097 9,420 3.14 
Commercial, financial, and agricultural loans959,132 33,970 7.12 998,726 32,457 6.55 
Real estate—commercial and construction loans3,562,174 101,218 5.71 3,394,100 88,381 5.25 
Real estate—residential loans1,639,339 39,968 4.90 1,446,093 32,946 4.59 
Loans to individuals27,068 1,090 8.10 27,023 928 6.93 
Municipal loans and leases*231,437 4,940 4.29 232,461 4,729 4.10 
Lease financings189,800 6,274 6.65 170,787 5,200 6.14 
     Gross loans and leases6,608,950 187,460 5.70 6,269,190 164,641 5.30 
          Total interest-earning assets7,246,908 199,008 5.52 6,873,287 174,061 5.11 
Cash and due from banks55,628 58,356 
Allowance for credit losses, loans and leases(86,394)(80,813)
Premises and equipment, net49,659 52,064 
Operating lease right-of-use assets30,733 31,251 
Other assets412,524 396,471 
      Total assets$7,709,058 $7,330,616 
Liabilities:
Interest-bearing checking deposits$1,137,423 $15,529 2.75 %$935,316 $8,556 1.84 %
Money market savings1,699,025 38,351 4.54 1,474,936 25,170 3.44 
Regular savings764,943 1,834 0.48 936,930 1,514 0.33 
Time deposits1,330,496 29,764 4.50 695,697 10,563 3.06 
Total time and interest-bearing deposits4,931,887 85,478 3.49 4,042,879 45,803 2.28 
Short-term borrowings19,816 247 2.51 247,745 5,977 4.87 
Long-term debt271,243 5,660 4.20 207,431 3,402 3.31 
Subordinated notes148,881 4,562 6.16 148,381 4,563 6.20 
     Total borrowings439,940 10,469 4.79 603,557 13,942 4.66 
     Total interest-bearing liabilities5,371,827 95,947 3.59 4,646,436 59,745 2.59 
Noninterest-bearing deposits1,396,917 1,796,647 
Operating lease liabilities33,774 34,427 
Accrued expenses and other liabilities62,981 55,126 
     Total liabilities6,865,499 6,532,636 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,768,744 2.85 6,443,083 1.87 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,052 299,537 
Retained earnings and other equity385,723 340,659 
     Total shareholders' equity843,559 797,980 
     Total liabilities and shareholders' equity$7,709,058 $7,330,616 
Net interest income$103,061 $114,316 
Net interest spread1.93 2.52 
Effect of net interest-free funding sources0.93 0.83 
Net interest margin2.86 %3.35 %
Ratio of average interest-earning assets to average interest-bearing liabilities134.91 %147.93 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $1.2 million and $1.1 million for the six months ended June 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 six months ended June 30, 2024 and 2023 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
June 30, 2024
(Dollars in thousands)
Industry DescriptionTotal Outstanding Balance % of Commercial Loan Portfolio
CRE - Retail$463,491 8.8 %
Animal Production375,487 7.1 
CRE - Multi-family325,585 6.2 
CRE - Office298,039 5.6 
CRE - 1-4 Family Residential Investment296,044 5.6 
CRE - Industrial / Warehouse251,100 4.8 
Hotels & Motels (Accommodation)191,217 3.6 
Education173,353 3.3 
Specialty Trade Contractors171,939 3.3 
Nursing and Residential Care Facilities148,501 2.8 
Motor Vehicle and Parts Dealers129,299 2.5 
Homebuilding (tract developers, remodelers)125,566 2.4 
Merchant Wholesalers, Durable Goods122,533 2.3 
Repair and Maintenance119,142 2.3 
CRE - Mixed-Use - Residential113,672 2.2 
Crop Production103,513 2.0 
Wood Product Manufacturing88,586 1.7 
Rental and Leasing Services82,505 1.6 
Real Estate Lenders, Secondary Market Financing82,330 1.6 
Religious Organizations, Advocacy Groups74,855 1.4 
Personal and Laundry Services72,545 1.4 
Fabricated Metal Product Manufacturing72,314 1.4 
CRE - Mixed-Use - Commercial71,697 1.4 
Merchant Wholesalers, Nondurable Goods71,029 1.3 
Amusement, Gambling, and Recreation Industries69,393 1.3 
Private Equity & Special Purpose Entities (except 52592)69,086 1.3 
Food Services and Drinking Places67,600 1.3 
Administrative and Support Services67,470 1.3 
Miniwarehouse / Self-Storage65,136 1.2 
Food Manufacturing58,430 1.1 
Truck Transportation54,629 1.0 
Industries with >$50 million in outstandings$4,476,086 84.9 %
Industries with <$50 million in outstandings $798,992 15.1 %
Total Commercial Loans$5,275,078 100.0 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$952,665 
Real Estate-Home Equity Secured for Personal Purpose179,150 
Loans to Individuals26,430 
Lease Financings251,514 
Total Consumer Loans and Lease Financings$1,409,759 
Total$6,684,837 


Univest Financial Corporation
Non-GAAP Reconciliation
June 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 six months ended,
(Dollars in thousands)6/30/20243/31/202412/31/20239/30/20236/30/20236/30/20246/30/2023
Restructuring charges (a)$— $— $189 $— $1,330 $— $1,330 
Tax effect of restructuring charges— — (40)— (279)— (279)
Restructuring charges, net of tax$— $— $149 $— $1,051 $— $1,051 
Net income$18,107 $20,305 $16,254 $17,016 $16,800 $38,412 $37,834 
Amortization of intangibles, net of tax149 148 167 174 200 296 400 
Net income before amortization of intangibles$18,256 $20,453 $16,421 $17,190 $17,000 $38,708 $38,234 
Shareholders' equity$854,137 $843,669 $839,208 $807,198 $805,222 $854,137 $805,222 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,157)(2,273)(2,405)(2,558)(2,767)(2,157)(2,767)
Tangible common equity$676,470 $665,886 $661,293 $629,130 $626,945 $676,470 $626,945 
Total assets$7,855,446 $7,746,568 $7,780,628 $7,828,066 $7,600,150 $7,855,446 $7,600,150 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,157)(2,273)(2,405)(2,558)(2,767)(2,157)(2,767)
Tangible assets$7,677,779 $7,568,785 $7,602,713 $7,649,998 $7,421,873 $7,677,779 $7,421,873 
Average shareholders' equity$844,572 $842,546 $814,941 $811,515 $806,709 $843,559 $797,980 
Average goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Average other intangibles (b)(2,222)(2,318)(2,477)(2,680)(2,924)(2,271)(3,030)
Average tangible common equity$666,840 $664,718 $636,954 $633,325 $628,275 $665,778 $619,440 
(a) Associated with financial service center optimization and headcount rationalization expense management strategies
(b) Amount does not include mortgage servicing rights


v3.24.2
Cover
Jul. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 24, 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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