Univest Financial Corporation Reports First Quarter Results

Rhea-AI Summary

Univest Financial (NASDAQ: UVSP) reported Q1 2025 net income of $22.4 million, or $0.77 diluted earnings per share, up from $20.3 million ($0.69 per share) in Q1 2024. The company announced a 4.8% dividend increase to $0.22 per share.

Key financial highlights include:

• Net interest income increased 10.3% year-over-year to $56.8 million
• Net interest margin improved to 3.09% from 2.88% in Q1 2024
• Gross loans increased 3.9% year-over-year to $254.0 million
• Total deposits grew 4.0% year-over-year to $253.1 million

The quarter included $1.0 million in tax-free bank owned life insurance death benefits. Nonperforming assets were $34.0 million, and the allowance for credit losses remained stable at 1.28% of loans.

Positive

• Net income increased 10.3% year-over-year to $22.4 million
• Net interest margin improved to 3.09% from 2.88%
• Gross loans grew 3.9% year-over-year
• Total deposits increased 4.0% year-over-year
• Quarterly dividend increased by 4.8%

Negative

• Noninterest income decreased 12.4% year-over-year
• Net loan charge-offs increased to $1.7 million from $1.4 million year-over-year
• Total deposits decreased 1.5% from previous quarter
• Insurance commission and fee income declined 4.3% year-over-year

Insights

Financial Analyst

Univest delivered 10.3% higher earnings, expanded interest margins, and raised dividends 4.8%, showing fundamental improvement despite one-time factors.

Univest Financial reported Q1 2025 net income of $22.4 million ($0.77 per diluted share), representing a solid 10.3% increase from $20.3 million ($0.69 per share) in Q1 2024. Results included a non-recurring $1.0 million tax-free BOLI death benefit contributing $0.04 to EPS. The board approved a 4.8% dividend increase to $0.22 per share, the first increase since May 2022.

Net interest income grew 10.3% year-over-year to $56.8 million, with net interest margin expanding to 3.09% from 2.88% a year ago. Excluding excess liquidity effects, the core margin improved to 3.12% from 2.91%, reflecting better yields on interest-earning assets and reduced funding costs.

Noninterest income decreased 12.4% to $22.4 million, primarily due to a $3.4 million one-time gain from mortgage servicing rights sale in Q1 2024. Excluding this effect, several core fee income sources showed growth, including investment advisory fees (+8.1%) and service charges (+17.3%). Operating expenses decreased 1.5% to $49.3 million, mainly from lower compensation and benefits costs.

Loan portfolios grew 3.9% year-over-year, with increases in commercial, commercial real estate, and residential mortgage loans. Nonperforming assets totaled $34.0 million, up slightly from $33.2 million at year-end but down from $40.0 million a year ago. The allowance for credit losses ratio held steady at 1.28% of loans.

During the quarter, the bank repurchased 221,760 shares at an average price of $29.22, with 1,178,394 shares remaining available under the current repurchase authorization.

Banking Industry Specialist

Univest effectively managed its deposit mix and funding structure while achieving significant margin expansion despite seasonal deposit outflows.

Univest's Q1 results demonstrate effective balance sheet management amid ongoing banking sector challenges. Total deposits decreased 1.5% quarter-over-quarter to $6.66 billion, primarily from seasonal public funds outflows and decreases in commercial and consumer deposits. However, year-over-year deposit growth remained positive at 4.0%.

The deposit composition showed improvement with noninterest-bearing deposits comprising 21.5% of total deposits, up from 20.9% at year-end. Notably, unprotected deposits (exceeding FDIC insurance limits and not otherwise secured) represented just 21.9% of total deposits, limiting potential liquidity risk.

The bank strategically replaced $50 million in matured FHLB advances with brokered deposits. Liquidity resources remained substantial with $169.1 million in cash and cash equivalents and $2.3 billion in available committed borrowing capacity.

Net interest margin expanded significantly to 3.09%, up 21 basis points from both the previous quarter and year-ago period. This improvement occurred despite excess liquidity reducing the margin by approximately 3 basis points.

Credit metrics remained largely stable with the allowance for credit losses at 1.28% of loans, unchanged from the previous quarter. However, net charge-offs increased to $1.7 million for the quarter, up from $767 thousand in Q4 2024 and $1.4 million a year ago, indicating some potential pressure in the loan portfolio. The provision for credit losses was $2.3 million, slightly below the previous quarter's $2.4 million but above the $1.4 million from Q1 2024.

(Announces 4.8% increase in dividend)

SOUDERTON, Pa., April 23, 2025 (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 March 31, 2025 of $22.4 million, or $0.77 diluted earnings per share, compared to net income of $20.3 million, or $0.69 diluted earnings per share, for the quarter ended March 31, 2024.

Dividend
On April 23, 2025, Univest declared a quarterly cash dividend of $0.22 per share to be paid on May 21, 2025 to shareholders of record as of May 7, 2025, which represents an increase of $0.01 per share, or 4.8%. Univest had last increased its dividend by $0.01 per share in May 2022.

One-Time Items
The financial results for the quarter included tax-free bank owned life insurance ("BOLI") death benefits claims of $1.0 million, which represented $0.04 diluted earnings per share.

Loans
Gross loans and leases increased $6.5 million, or 0.1% (0.4% annualized), from December 31, 2024. Gross loans and leases increased $254.0 million, or 3.9%, from March 31, 2024, primarily due to increases in commercial, commercial real estate, residential mortgage loans and home equity loans, partially offset by decreases in construction loans and lease financings.

Deposits, Borrowings and Liquidity
Total deposits decreased $100.8 million, or 1.5% (6.0% annualized), from December 31, 2024, primarily due to seasonal declines in public funds deposits and decreases in commercial and consumer deposits, partially offset by an increase in brokered deposits. Total deposits increased $253.1 million, or 4.0%, from March 31, 2024, due to increases in consumer, commercial, and public funds deposits, partially offset by a decrease in brokered deposits. Noninterest-bearing deposits totaled $1.4 billion and represented 21.5% of total deposits at March 31, 2025, compared to $1.4 billion representing 20.9% of total deposits at December 31, 2024. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at March 31, 2025 and December 31, 2024. This represented 21.9% of total deposits at March 31, 2025, compared to 22.0% at December 31, 2024.

Total borrowings decreased $57.0 million, or 14.8%, from December 31, 2024, primarily due to maturities of long-term FHLB advances totaling $50.0 million. These borrowings were replaced with brokered deposits during the quarter.

As of March 31, 2025, the Corporation and its subsidiaries reported cash and cash equivalents totaling $169.1 million and had committed borrowing capacity of $3.7 billion, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $468.0 million at March 31, 2025. 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 $56.8 million for the first quarter of 2025 increased $5.3 million, or 10.3%, from the first quarter of 2024 and $1.3 million, or 2.4%, from the fourth quarter of 2024. The increase in net interest income for the first quarter of 2025 compared to the first quarter of 2024 was driven by higher average balances of loans and increased yields on interest earning assets, as well as a reduction in our overall cost of funds. The increase in net interest income for the first quarter of 2025 compared to the fourth quarter of 2024 was primarily driven by lower average balances of interest-bearing liabilities and related costs outpacing decreases in income from interest-earning deposits with other banks.

Net interest margin, on a tax-equivalent basis, was 3.09% for the first quarter of 2025, compared to 2.88% for the first and fourth quarters of 2024. Excess liquidity reduced net interest margin by approximately three basis points for the quarter ended March 31, 2025 compared to approximately 14 basis points for the quarter ended December 31, 2024 and approximately three basis points for the quarter ended March 31, 2024. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.12% for the quarter ended March 31, 2025 compared to 3.02% for the quarter ended December 31, 2024 and 2.91% for the quarter ended March 31, 2024.

Noninterest Income
Noninterest income for the quarter ended March 31, 2025 was $22.4 million, a decrease of $3.2 million, or 12.4%, from the comparable period in the prior year.

Other service fee income decreased $3.7 million, or 57.8%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to a $3.4 million net gain from the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024. Additionally, net servicing fees on sold mortgage loans decreased by $177 thousand, primarily attributable to the previously mentioned sale of mortgage servicing rights.

Other income decreased $780 thousand, or 76.1%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to decreases in other real estate owned income, fees on risk participation agreements for interest rate swaps and gains on sale of Small Business Administration loans.

Net gain on mortgage banking activities decreased $292 thousand, or 31.1%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to decreased salable volume.

Insurance commission and fee income decreased $312 thousand, or 4.3%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to a decrease in contingent income of $700 thousand, which was $1.6 million and $2.3 million, for the three months ended March 31, 2025 and 2024, respectively. Contingent income is largely recognized in the first quarter of the year. The decrease was partially offset by an increase of $404 thousand in revenue for commercial lines.

BOLI income increased $1.1 million, or 132.7%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to the previously discussed death benefits claims.

Investment advisory commission and fee income increased $419 thousand, or 8.1%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to new customer relationships and appreciation of assets under management and supervision.

Service charges on deposit accounts increased $323 thousand, or 17.3%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to an increase in treasury management income.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2025 was $49.3 million, a decrease of $746 thousand, or 1.5%, from the comparable period in the prior year.

Salaries, benefits and commissions decreased $512 thousand, or 1.6%, for the quarter ended March 31, 2025 compared to the comparable period in the prior year, primarily due to an increase in compensation capitalized and a decrease in medical claims expense, partially offset by an increase in incentive compensation due to increased profitability.

Tax Provision
The effective income tax rate was 18.7% and 20.5% for the quarters ended March 31, 2025 and March 31, 2024, respectively. The discrete tax effect of vested equity compensation awards favorably impacted the first quarter of 2025 by 71 basis points and unfavorably impacted the first quarter of 2024 by 74 basis points. Additionally, the effective tax rate for the three months ended March 31, 2025 was favorably impacted by 76 basis points from the proceeds of BOLI death benefits. Excluding the discrete impact of vested equity compensation awards and BOLI death benefits, the effective tax rate was 20.2% for the three months ended March 31, 2025 compared to 19.8% for the three months ended March 31, 2024.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $34.0 million at March 31, 2025, $33.2 million at December 31, 2024, and $40.0 million at March 31, 2024.

Net loan and lease charge-offs were $1.7 million for the three months ended March 31, 2025 compared to $767 thousand and $1.4 million for the three months ended December 31, 2024 and March 31, 2024, respectively.

The provision for credit losses was $2.3 million for the three months ended March 31, 2025 compared to $2.4 million and $1.4 million for the three months ended December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at March 31, 2025 and December 31, 2024, and 1.30% at March 31, 2024.

Share Repurchases
During the quarter ended March 31, 2025, the Corporation repurchased 221,760 shares of common stock at an average price of $29.22 per share. Including brokerage fees and excise tax, the average price per share was $29.54. As of March 31, 2025, 1,178,394 shares are available for repurchase under the Share Repurchase Plan.

Conference Call
Univest will host a conference call to discuss first quarter 2025 results on Thursday, April 24, 2025 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=175e015e&confId=80607. The general public can access the call by dialing 1-833-470-1428; using Access Code 021974. A replay of the conference call will be available through May 1, 2025 by dialing 1-866-813-9403; using Access Code 718470.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.0 billion in assets and $5.2 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2025. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  

This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) fluctuations in real estate values and both residential and commercial real estate market conditions; (5) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (6) our ability to access cost-effective funding; (7) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (8) changes in the economic assumptions or methodology used to calculate our allowance for credit losses; (9) legislative, regulatory, accounting or tax changes; (10) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (11) the imposition of tariffs or other domestic or international governmental policies; (12) the failure to maintain current technologies and to successfully implement future information technology enhancements; (13) technological issues that may adversely affect our operations or those of our customers; (14) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (15) changes in the securities markets; (16) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (17) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (18) 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)
March 31, 2025
(Dollars in thousands)
Balance Sheet (Period End)	03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
ASSETS
Cash and due from banks	$	73,319			$	75,998			$	78,346			$	66,808			$	49,318
Interest-earning deposits with other banks		95,815				252,846				426,354				124,103				152,288
Cash and cash equivalents		169,134				328,844				504,700				190,911				201,606
Investment securities held-to-maturity		130,889				134,111				137,681				140,112				143,474
Investment securities available for sale, net of allowance for credit losses		364,503				357,361				354,100				342,776				350,819
Investments in equity securities		1,667				2,506				2,406				2,995				3,355
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		35,732				38,980				40,235				37,438				37,394
Loans held for sale		13,150				16,653				17,131				28,176				13,188
Loans and leases held for investment		6,833,037				6,826,583				6,730,734				6,684,837				6,579,086
Less: Allowance for credit losses, loans and leases		(87,790	)			(87,091	)			(86,041	)			(85,745	)			(85,632	)
Net loans and leases held for investment		6,745,247				6,739,492				6,644,693				6,599,092				6,493,454
Premises and equipment, net		47,175				46,671				47,411				48,174				48,739
Operating lease right-of-use assets		27,182				28,531				29,260				29,985				30,702
Goodwill		175,510				175,510				175,510				175,510				175,510
Other intangibles, net of accumulated amortization		8,061				8,309				7,158				7,701				7,473
Bank owned life insurance		139,482				139,351				138,744				137,823				137,896
Accrued interest and other assets		117,435				112,098				106,708				114,753				102,958
Total assets	$	7,975,167			$	8,128,417			$	8,205,737			$	7,855,446			$	7,746,568
LIABILITIES
Noninterest-bearing deposits	$	1,433,995			$	1,414,635			$	1,323,953			$	1,397,308			$	1,401,806
Interest-bearing deposits:		5,224,503				5,344,624				5,530,195				5,098,014				5,003,552
Total deposits		6,658,498				6,759,259				6,854,148				6,495,322				6,405,358
Short-term borrowings		4,031				11,181				8,256				11,781				4,816
Long-term debt		175,000				225,000				225,000				250,000				250,000
Subordinated notes		149,386				149,261				149,136				149,011				148,886
Operating lease liabilities		30,062				31,485				32,246				33,015				33,744
Accrued expenses and other liabilities		54,718				64,930				59,880				62,180				60,095
Total liabilities		7,071,695				7,241,116				7,328,666				7,001,309				6,902,899
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		300,634				302,829				301,262				300,166				298,914
Retained earnings		541,776				525,780				512,938				500,482				488,790
Accumulated other comprehensive loss, net of tax benefit		(37,922	)			(43,992	)			(41,623	)			(54,124	)			(54,740	)
Treasury stock, at cost		(58,800	)			(55,100	)			(53,290	)			(50,171	)			(47,079	)
Total shareholders’ equity		903,472				887,301				877,071				854,137				843,669
Total liabilities and shareholders’ equity	$	7,975,167			$	8,128,417			$	8,205,737			$	7,855,446			$	7,746,568
	For the three months ended,
Balance Sheet (Average)	03/31/25				12/31/24				06/30/24				03/31/24				12/31/23
Assets	$	7,981,043			$	8,163,347			$	8,005,265			$	7,721,540			$	7,696,575
Investment securities, net of allowance for credit losses		500,078				500,748				493,334				493,140				500,983
Loans and leases, gross		6,856,503				6,758,649				6,730,791				6,640,536				6,577,365
Deposits		6,617,653				6,804,483				6,641,324				6,353,752				6,303,854
Shareholders' equity		896,811				880,237				864,406				844,572				842,546

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
March 31, 2025
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)	03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
Commercial, financial and agricultural	$	1,034,361			$	1,037,835			$	1,044,043			$	1,055,332			$	1,014,568
Real estate-commercial		3,546,402				3,530,451				3,442,083				3,373,889				3,283,729
Real estate-construction		281,785				274,483				285,616				313,229				379,995
Real estate-residential secured for business purpose		536,082				536,095				530,674				532,628				524,196
Real estate-residential secured for personal purpose		992,767				994,972				969,562				952,665				922,412
Real estate-home equity secured for personal purpose		189,119				186,836				182,901				179,150				177,446
Loans to individuals		16,930				21,250				26,794				26,430				27,200
Lease financings		235,591				244,661				249,061				251,514				249,540
Total loans and leases held for investment, net of deferred income		6,833,037				6,826,583				6,730,734				6,684,837				6,579,086
Less: Allowance for credit losses, loans and leases		(87,790	)			(87,091	)			(86,041	)			(85,745	)			(85,632	)
Net loans and leases held for investment	$	6,745,247			$	6,739,492			$	6,644,693			$	6,599,092			$	6,493,454
Asset Quality Data (Period End)	03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
Nonaccrual loans and leases, including nonaccrual loans held for sale	$	11,126			$	12,667			$	15,319			$	16,200			$	20,363
Accruing loans and leases 90 days or more past due		322				321				310				205				268
Total nonperforming loans and leases		11,448				12,988				15,629				16,405				20,631
Other real estate owned		22,433				20,141				20,915				20,007				19,220
Repossessed assets		79				76				79				149				167
Total nonperforming assets	$	33,960			$	33,205			$	36,623			$	36,561			$	40,018
Nonaccrual loans and leases / Loans and leases held for investment		0.16	%			0.19	%			0.23	%			0.24	%			0.31	%
Nonperforming loans and leases / Loans and leases held for investment		0.17	%			0.19	%			0.23	%			0.25	%			0.31	%
Nonperforming assets / Total assets		0.43	%			0.41	%			0.45	%			0.47	%			0.52	%
Allowance for credit losses, loans and leases	$	87,790			$	87,091			$	86,041			$	85,745			$	85,632
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%			1.28	%			1.28	%			1.28	%			1.30	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases		789.05	%			687.54	%			561.66	%			529.29	%			420.53	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases		766.86	%			670.55	%			550.52	%			522.68	%			415.06	%
	For the three months ended,
	03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
Net loan and lease charge-offs	$	1,686			$	767			$	820			$	809			$	1,406
Net loan and lease charge-offs (annualized)/Average loans and leases		0.10	%			0.05	%			0.05	%			0.05	%			0.09	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2025
(Dollars in thousands, except per share data)
	For the three months ended,
For the period:	03/31/25			12/31/24			09/30/24			06/30/24			03/31/24
Interest income	$	103,416		$	107,476		$	106,438		$	99,832		$	98,609
Interest expense		46,635			52,004			53,234			48,805			47,142
Net interest income		56,781			55,472			53,204			51,027			51,467
Provision for credit losses		2,311			2,380			1,414			707			1,432
Net interest income after provision for credit losses		54,470			53,092			51,790			50,320			50,035
Noninterest income:
Trust fee income		2,161			2,265			2,110			2,008			2,108
Service charges on deposit accounts		2,194			2,192			2,037			1,982			1,871
Investment advisory commission and fee income		5,613			5,457			5,319			5,238			5,194
Insurance commission and fee income		6,889			4,743			5,238			5,167			7,201
Other service fee income		2,707			3,473			1,815			3,044			6,415
Bank owned life insurance income		1,959			1,012			921			1,086			842
Net gain on sales of investment securities		-			-			18			-			-
Net gain on mortgage banking activities		647			1,320			1,296			1,710			939
Other income		245			868			1,396			745			1,025
Total noninterest income		22,415			21,330			20,150			20,980			25,595
Noninterest expense:
Salaries, benefits and commissions		30,826			31,518			30,702			30,187			31,338
Net occupancy		2,853			2,751			2,723			2,679			2,872
Equipment		1,122			1,147			1,107			1,088			1,111
Data processing		4,364			4,146			4,154			4,161			4,495
Professional fees		1,797			1,669			1,579			1,466			1,688
Marketing and advertising		353			552			490			715			416
Deposit insurance premiums		1,151			1,102			1,097			1,098			1,135
Intangible expenses		130			155			164			188			187
Other expense		6,732			7,618			6,536			7,126			6,832
Total noninterest expense		49,328			50,658			48,552			48,708			50,074
Income before taxes		27,557			23,764			23,388			22,592			25,556
Income tax expense		5,162			4,823			4,810			4,485			5,251
Net income	$	22,395		$	18,941		$	18,578		$	18,107		$	20,305
Net income per share:
Basic	$	0.77		$	0.65		$	0.64		$	0.62		$	0.69
Diluted	$	0.77		$	0.65		$	0.63		$	0.62		$	0.69
Dividends declared per share	$	0.21		$	0.21		$	0.21		$	0.21		$	0.21
Weighted average shares outstanding		29,000,567			29,070,039			29,132,948			29,246,977			29,413,999
Period end shares outstanding		28,962,648			29,045,877			29,081,108			29,190,640			29,337,919

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2025
	For the three months ended,
Profitability Ratios (annualized)	03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
Return on average assets		1.14	%			0.92	%			0.92	%			0.94	%			1.06	%
Return on average shareholders' equity		10.13	%			8.56	%			8.55	%			8.62	%			9.69	%
Return on average tangible common equity (1)(3)		12.69	%			10.79	%			10.84	%			11.01	%			12.38	%
Net interest margin (FTE)		3.09	%			2.88	%			2.82	%			2.84	%			2.88	%
Efficiency ratio (2)		61.6	%			65.5	%			65.7	%			67.1	%			64.6	%
Capitalization Ratios
Dividends declared to net income		27.2	%			32.2	%			33.0	%			33.9	%			30.5	%
Shareholders' equity to assets (Period End)		11.33	%			10.92	%			10.69	%			10.87	%			10.89	%
Tangible common equity to tangible assets (1)		9.31	%			8.92	%			8.71	%			8.81	%			8.80	%
Common equity book value per share	$	31.19			$	30.55			$	30.16			$	29.26			$	28.76
Tangible common equity book value per share (1)	$	25.06			$	24.43			$	24.05			$	23.17			$	22.70
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.80	%			9.51	%			9.53	%			9.74	%			9.65	%
Common equity tier 1 risk-based capital ratio		10.97	%			10.85	%			10.88	%			10.72	%			10.71	%
Tier 1 risk-based capital ratio		10.97	%			10.85	%			10.88	%			10.72	%			10.71	%
Total risk-based capital ratio		14.35	%			14.19	%			14.27	%			14.09	%			14.11	%
(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	March 31, 2025							December 31, 2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	119,997		$	1,360	4.60	%	$	402,753		$	4,852	4.79	%
Obligations of state and political subdivisions*		879			4	1.85			1,290			7	2.16
Other debt and equity securities		499,199			4,019	3.27			499,458			3,815	3.04
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,561			687	7.42			39,407			746	7.53
Total interest-earning deposits, investments and other interest-earning assets		657,636			6,070	3.74			942,908			9,420	3.97
Commercial, financial, and agricultural loans		990,860			17,020	6.97			972,840			17,492	7.15
Real estate—commercial and construction loans		3,704,232			52,676	5.77			3,631,142			53,163	5.82
Real estate—residential loans		1,729,146			21,542	5.05			1,708,795			21,249	4.95
Loans to individuals		19,438			393	8.20			25,803			522	8.05
Tax-exempt loans and leases		230,133			2,861	5.04			233,036			2,652	4.53
Lease financings		182,694			3,240	7.19			187,033			3,296	7.01
Gross loans and leases		6,856,503			97,732	5.78			6,758,649			98,374	5.79
Total interest-earning assets		7,514,139			103,802	5.60			7,701,557			107,794	5.57
Cash and due from banks		56,690							56,989
Allowance for credit losses, loans and leases		(87,822	)						(86,812	)
Premises and equipment, net		46,852							47,155
Operating lease right-of-use assets		27,761							28,891
Other assets		423,423							415,567
Total assets	$	7,981,043						$	8,163,347
Liabilities:
Interest-bearing checking deposits	$	1,222,012		$	7,075	2.35	%	$	1,275,348		$	8,504	2.65	%
Money market savings		1,840,194			18,035	3.97			1,954,246			20,653	4.20
Regular savings		702,543			763	0.44			705,222			817	0.46
Time deposits		1,476,495			16,106	4.42			1,499,998			17,247	4.57
Total time and interest-bearing deposits		5,241,244			41,979	3.25			5,434,814			47,221	3.46
Short-term borrowings		6,909			14	0.82			7,102			1	0.06
Long-term debt		217,500			2,361	4.40			225,000			2,501	4.42
Subordinated notes		149,319			2,281	6.20			149,194			2,281	6.08
Total borrowings		373,728			4,656	5.05			381,296			4,783	4.99
Total interest-bearing liabilities		5,614,972			46,635	3.37			5,816,110			52,004	3.56
Noninterest-bearing deposits		1,376,409							1,369,669
Operating lease liabilities		30,675							31,864
Accrued expenses and other liabilities		62,176							65,467
Total liabilities		7,084,232							7,283,110
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,991,381				2.71			7,185,779				2.88
Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		302,653							301,895
Retained earnings and other equity		436,374							420,558
Total shareholders' equity		896,811							880,237
Total liabilities and shareholders' equity	$	7,981,043						$	8,163,347
Net interest income				$	57,167						$	55,790
Net interest spread						2.23							2.01
Effect of net interest-free funding sources						0.86							0.87
Net interest margin						3.09	%						2.88	%
Ratio of average interest-earning assets to average interest-bearing liabilities		133.82	%						132.42	%
* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $554 thousand and $676 thousand for the three months ended March 31,
2025 and December 31, 2024, 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 March 31, 2025 and December 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 March 31,
Tax Equivalent Basis	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	119,997		$	1,360	4.60	%	$	120,845		$	1,609	5.36	%
Obligations of state and political subdivisions*		879			4	1.85			1,951			12	2.47
Other debt and equity securities		499,199			4,019	3.27			499,032			3,647	2.94
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,561			687	7.42			39,115			724	7.44
Total interest-earning deposits, investments and other interest-earning assets		657,636			6,070	3.74			660,943			5,992	3.65
Commercial, financial, and agricultural loans		990,860			17,020	6.97			934,649			16,523	7.11
Real estate—commercial and construction loans		3,704,232			52,676	5.77			3,575,142			50,641	5.70
Real estate—residential loans		1,729,146			21,542	5.05			1,618,188			19,555	4.86
Loans to individuals		19,438			393	8.20			27,315			548	8.07
Tax-exempt loans and leases		230,133			2,861	5.04			232,380			2,464	4.26
Lease financings		182,694			3,240	7.19			189,691			3,169	6.72
Gross loans and leases		6,856,503			97,732	5.78			6,577,365			92,900	5.68
Total interest-earning assets		7,514,139			103,802	5.60			7,238,308			98,892	5.49
Cash and due from banks		56,690							54,870
Allowance for credit losses, loans and leases		(87,822	)						(86,495	)
Premises and equipment, net		46,852							50,592
Operating lease right-of-use assets		27,761							31,121
Other assets		423,423							408,179
Total assets	$	7,981,043						$	7,696,575
Liabilities:
Interest-bearing checking deposits	$	1,222,012		$	7,075	2.35	%	$	1,180,696		$	8,218	2.80	%
Money market savings		1,840,194			18,035	3.97			1,705,291			19,220	4.53
Regular savings		702,543			763	0.44			769,926			905	0.47
Time deposits		1,476,495			16,106	4.42			1,238,878			13,630	4.42
Total time and interest-bearing deposits		5,241,244			41,979	3.25			4,894,791			41,973	3.45
Short-term borrowings		6,909			14	0.82			10,127			5	0.20
Long-term debt		217,500			2,361	4.40			292,486			2,883	3.96
Subordinated notes		149,319			2,281	6.20			148,818			2,281	6.16
Total borrowings		373,728			4,656	5.05			451,431			5,169	4.61
Total interest-bearing liabilities		5,614,972			46,635	3.37			5,346,222			47,142	3.55
Noninterest-bearing deposits		1,376,409							1,409,063
Operating lease liabilities		30,675							34,166
Accrued expenses and other liabilities		62,176							64,578
Total liabilities		7,084,232							6,854,029
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,991,381				2.71			6,755,285				2.81
Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		302,653							300,679
Retained earnings and other equity		436,374							384,083
Total shareholders' equity		896,811							842,546
Total liabilities and shareholders' equity	$	7,981,043						$	7,696,575
Net interest income				$	57,167						$	51,750
Net interest spread						2.23							1.94
Effect of net interest-free funding sources						0.86							0.94
Net interest margin						3.09	%						2.88	%
Ratio of average interest-earning assets to average interest-bearing liabilities		133.82	%						135.39	%
* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $554 thousand and $453 thousand for the three months ended
March 31, 2025 and 2024, 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 March 31, 2025 and 2024 have been
calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
March 31, 2025
(Dollars in thousands)
Industry Description	Total Outstanding Balance			% of Commercial Loan Portfolio
CRE - Retail	$	469,397		8.7	%
Animal Production		394,279		7.3
CRE - Multi-family		360,743		6.7
CRE - Office		299,751		5.6
CRE - 1-4 Family Residential Investment		278,386		5.2
CRE - Industrial / Warehouse		253,136		4.7
Hotels & Motels (Accommodation)		207,710		3.8
Specialty Trade Contractors		189,427		3.5
Nursing and Residential Care Facilities		177,053		3.3
Motor Vehicle and Parts Dealers		146,911		2.7
Merchant Wholesalers, Durable Goods		146,037		2.7
Homebuilding (tract developers, remodelers)		140,612		2.6
Repair and Maintenance		134,183		2.5
Crop Production		110,882		2.1
CRE - Mixed-Use - Residential		109,872		2.0
Wood Product Manufacturing		101,606		1.9
Professional, Scientific, and Technical Services		95,730		1.8
Food Services and Drinking Places		86,916		1.6
Administrative and Support Services		83,145		1.5
Merchant Wholesalers, Nondurable Goods		83,088		1.5
Fabricated Metal Product Manufacturing		78,181		1.4
Real Estate Lenders, Secondary Market Financing		75,461		1.4
Religious Organizations, Advocacy Groups		65,857		1.2
CRE - Mixed-Use - Commercial		64,683		1.2
Miniwarehouse / Self-Storage		64,553		1.2
Personal and Laundry Services		64,508		1.2
Education		62,362		1.2
Amusement, Gambling, and Recreation Industries		61,437		1.1
Food Manufacturing		56,400		1.0
Industries with >$50 million in outstandings	$	4,462,306		82.7	%
Industries with <$50 million in outstandings	$	936,324		17.3	%
Total Commercial Loans	$	5,398,630		100.0	%
Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		992,767
Real Estate-Home Equity Secured for Personal Purpose		189,119
Loans to Individuals		16,930
Lease Financings		235,591
Total - Consumer Loans and Lease Financings	$	1,434,407
Total	$	6,833,037

Univest Financial Corporation
Non-GAAP Reconciliation
March 31, 2025
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,
(Dollars in thousands)				03/31/25				12/31/24				09/30/24				06/30/24				03/31/24
Net income				$	22,395			$	18,941			$	18,578			$	18,107			$	20,305
Amortization of intangibles, net of tax					103				122				130				149				148
Net income before amortization of intangibles				$	22,498			$	19,063			$	18,708			$	18,256			$	20,453
Shareholders' equity				$	903,472			$	887,301			$	877,071			$	854,137			$	843,669
Goodwill					(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Other intangibles (a)					(2,104	)			(2,263	)			(2,147	)			(2,157	)			(2,273	)
Tangible common equity				$	725,858			$	709,528			$	699,414			$	676,470			$	665,886
Total assets				$	7,975,167			$	8,128,417			$	8,205,737			$	7,855,446			$	7,746,568
Goodwill					(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Other intangibles (a)					(2,104	)			(2,263	)			(2,147	)			(2,157	)			(2,273	)
Tangible assets				$	7,797,553			$	7,950,644			$	8,028,080			$	7,677,779			$	7,568,785
Average shareholders' equity				$	896,811			$	880,237			$	864,406			$	844,572			$	842,546
Average goodwill					(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Average other intangibles (a)					(2,162	)			(2,146	)			(2,086	)			(2,222	)			(2,318	)
Average tangible common equity				$	719,139			$	702,581			$	686,810			$	666,840			$	664,718
(a) Amount does not include mortgage servicing rights

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

FAQ

What was Univest Financial's (UVSP) earnings per share in Q1 2025?

Univest Financial reported diluted earnings per share of $0.77 in Q1 2025, compared to $0.69 in Q1 2024.

How much did UVSP increase its dividend in April 2025?

Univest increased its quarterly dividend by 4.8% to $0.22 per share, representing a $0.01 increase.

What was Univest's (UVSP) net interest margin in Q1 2025?

Univest's net interest margin was 3.09% in Q1 2025, up from 2.88% in Q1 2024.

How much did UVSP's total deposits grow year-over-year in Q1 2025?

Total deposits increased by $253.1 million, or 4.0%, compared to March 31, 2024.

What was UVSP's loan growth in Q1 2025 compared to Q1 2024?

Gross loans increased by $254.0 million, or 3.9%, from March 31, 2024.