Document

As of September 30, 2021, $85.6 million in PPP loan originations remain outstanding. During the quarter, we recorded income of $4.2 million within net interest income related to these loans, of which $3.7 million was the result of recognition of associated net deferred loan fees upon forgiveness and pay downs of PPP loans totaling $171.4 million. During the nine months ended September 30, 2021, we recorded income of $13.5 million within net interest income related to these loans, of which $8.6 million was the result of recognition of associated net deferred loan fees upon forgiveness and pay downs of PPP loans totaling $575.3 million. As of September 30, 2021, we had $2.4 million of net deferred fees on our balance sheet, which represented approximately 13.2% of the initial deferred fee amount.

Net interest margin, on a tax-equivalent basis, was 3.11% for the third quarter of 2021, compared to 3.15% for the second quarter of 2021 and 3.02% for the third quarter of 2020. Excess liquidity reduced net interest margin by approximately 27 basis points for the quarter ended September 30, 2021 compared to ten basis points for the quarter ended June 30, 2021 and 18 basis points for the quarter ended September 30, 2020. This excess liquidity was primarily driven by strong growth of deposit balances since the beginning of the COVID-19 pandemic, primarily due to the various pandemic-related stimulus initiatives. PPP loans had a favorable impact on net interest margin of 20 basis points for the quarter ended September 30, 2021 compared to 11 basis points for the quarter ended June 30, 2021 and an unfavorable impact of ten basis points for the quarter ended September 30, 2020. As PPP loans are forgiven, the associated deferred fees are recognized in earnings, which occurred with greater frequency in 2021 as compared to 2020. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.18% for the quarter ended September 30, 2021 compared to 3.14% for the quarter ended June 30, 2021 and 3.30% for the quarter ended September 30, 2020.

Net interest margin, on a tax-equivalent basis, was 3.13% for the nine months ended September 20, 2021, compared to 3.21% for the nine months ended September 30, 2020. Excess liquidity reduced net interest margin by approximately 16 basis points for the nine months ended September 30, 2021 compared to 14 basis points for the nine months ended September 30, 2020. This excess liquidity was primarily driven by strong growth of deposit balances since the beginning of the COVID-19 pandemic, primarily due to the various pandemic-related stimulus initiatives. PPP loans had a favorable impact on net interest margin of 12 basis points for the nine months ended September 30, 2021 compared to an unfavorable impact of seven basis points for the nine months ended September 30, 2020. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.17% for the nine months ended September 30, 2021 compared to 3.42% for the nine months ended September 30, 2020.

periods in the prior year. The decrease for the three months ended September 30, 2021 was primarily due to a decrease in volume and a contraction of margins. Investment advisory commission and fee income increased $791 thousand, or 19.8%, for the quarter and $2.3 million, or 19.1%, for the nine months ended September 30, 2021 compared to the comparable periods in the prior year, due to increased assets under management driven by favorable market conditions and new customer relationships. BOLI income increased $184 thousand, or 24.8%, for the quarter and $1.1 million, or 47.8%, for the nine months ended September 30, 2021 compared to the comparable periods in the prior year, primarily due to proceeds from BOLI death benefits of $893 thousand and $196 thousand received in the second and third quarter of 2021, respectively.

Other income decreased $546 thousand, or 25.1%, for the quarter and $543 thousand, or 13.5%, for the nine months ended September 30, 2021 compared to comparable periods in the prior year. Fees on risk participation agreements for interest rate swaps decreased $1.9 million and $2.3 million during the three and nine months ended September 30, 2021, respectively, compared to comparable periods in the prior year driven by a decrease in customer demand. Gain on the sale of SBA loans increased $897 thousand and $922 thousand during the three and nine months ended September 30, 2021, respectively. This increase was reflective of the Corporation's commitment to delivering comprehensive financial solutions to small businesses and the expansion of the SBA lending team during the first half of 2021. Net gains or losses related to valuations and sales of other real estate owned increased $297 thousand for the three and nine months ended September 30, 2021 compared to comparable periods in the prior year, primarily due to a $300 thousand valuation adjustment on other real estate owned during the third quarter of 2020. Other income increased $456 thousand for the nine months ended September 30, 2021 primarily driven by a gain on the value of equity securities measured at fair value of $164 thousand compared to a loss of $321 thousand for the nine months ended September 30, 2020.

Professional fees increased $853 thousand, or 64.6%, for the quarter and $2.0 million, or 52.2%, for the nine months ended September 30, 2021 from the comparable periods in the prior year, primarily attributable to increased consultant fees in support of our Diversity, Equity and Inclusion program, training initiatives and treasury management product enhancements. During the first nine months of 2021, we have spent $1.4 million on these initiatives and we expect to incur approximately $70 thousand of additional expenses related to these initiatives in the fourth quarter of 2021. These expenses are not expected to re-occur in subsequent periods. Data processing expenses increased $412 thousand, or 14.4%, for the quarter and $1.0 million, or 12.1%, for the nine months ended September 30, 2021 compared to the comparable periods in the prior year, primarily due to continued investments in our end-to-end loan origination solution for loans below $1.0 million, customer relationship management software, internal infrastructure improvements and outsourced data processing solutions.

Net loan and lease charge-offs were $456 thousand for the nine months ended September 30, 2021 compared to $4.0 million for the same period in the prior year. The reversal of provision for credit losses was $11.5 million for the nine months ended September 30, 2021, of which $18.7 million (after-tax benefit of $14.8 million), or $0.50 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporation’s CECL model partially offset by an increase in reserves for loans, unfunded commitments and investment securities. The provision for credit losses was $49.5 million for the comparable period in the prior year, of which $40.5 million (after-tax charge of $32.0 million), or $1.10 diluted earnings per share, was attributable to adverse changes in economic-related assumptions.

This press release of Univest 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 capital management strategies, markets and products 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 to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) changes in interest rates; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and credit loss provisions; (4) general 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 that may adversely affect the businesses in which Univest is engaged; (7) technological issues that may adversely affect Univest financial operations or those of our customers; (8) changes in the securities markets or (9) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

Additionally, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: (1) demand for our products and services may decline; (2) if the economy is unable to remain open, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase; (3) collateral for loans, especially real estate, may decline in value; (4) our allowance for credit losses may have to be increased if economic conditions worsen or if borrowers experience financial difficulties; (5) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (6) a material decrease in net income or a net loss over several quarters could result in the elimination of or a decrease in the rate of our quarterly cash dividend; (7) our wealth management revenues may decline with continuing market turmoil; (8) litigation, regulatory enforcement risk and reputation risk regarding our participation in the Paycheck Protection Program and the risk that the Small Business Administration may not fund some or all PPP loan guarantees; (9) our cyber security risks are increased as the result of an increase in the number of employees working remotely; and (10) Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2021
(Dollars in thousands)

Balance Sheet (Period End)	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Assets	$	6,979,852		$	6,356,305		$	6,416,665		$	6,336,496		$	6,382,831
Cash and cash equivalents	902,357			203,449			187,317			219,858			387,676
Investment securities, net of allowance for credit losses	393,377			397,426			377,506			373,176			368,830
Loans held for sale	29,093			27,322			22,636			37,039			14,465
Loans and leases held for investment, gross	5,252,045			5,327,313			5,415,006			5,306,841			5,211,856
Allowance for credit losses, loans and leases	70,146			71,355			71,497			83,044			91,870
Loans and leases held for investment, net	5,181,899			5,255,958			5,343,509			5,223,797			5,119,986
Total deposits	5,938,154			5,318,704			5,311,592			5,242,715			5,211,603
Noninterest-bearing deposits	1,861,007			1,872,031			1,857,547			1,690,663			1,714,505
Interest-bearing demand, money market and savings	3,583,107			2,954,450			2,979,834			2,988,277			2,940,879
Time deposits	494,040			492,223			474,211			563,775			556,219
Borrowings	207,898			218,970			295,293			311,421			416,104
Shareholders' equity	756,023			739,998			722,455			692,472			669,107

Balance Sheet (Average)	For the three months ended,															For the nine months ended,
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Assets	$	6,698,177		$	6,443,629		$	6,383,463		$	6,353,519		$	6,265,605		$	6,509,576		$	5,892,918
Investment securities, net of allowance for credit losses	395,280			385,694			374,369			369,511			385,221			385,192			412,924
Loans and leases, gross	5,320,411			5,389,110			5,325,897			5,253,720			5,070,037			5,345,119			4,766,274
Deposits	5,666,725			5,351,089			5,296,147			5,222,452			5,030,398			5,439,345			4,726,132
Shareholders' equity	746,185			728,750			699,736			676,426			661,947			725,061			665,439

Asset Quality Data (Period End)
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale	$	34,528		$	37,466		$	29,996		$	31,692		$	30,019
Accruing loans and leases 90 days or more past due	2,204			750			664			1,392			3,573
Accruing troubled debt restructured loans and leases	51			52			52			53			53
Total nonperforming loans and leases	36,783			38,268			30,712			33,137			33,645
Other real estate owned	279			279			7,481			7,355			8,270
Total nonperforming assets	$	37,062		$	38,547		$	38,193		$	40,492		$	41,915
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale	0.66		%	0.70		%	0.55		%	0.60		%	0.58		%
Nonperforming loans and leases / Loans and leases held for investment	0.70		%	0.72		%	0.57		%	0.62		%	0.65		%
Nonperforming assets / Total assets	0.53		%	0.61		%	0.60		%	0.64		%	0.66		%

Allowance for credit losses, loans and leases	$	70,146		$	71,355		$	71,497		$	83,044		$	91,870
Allowance for credit losses, loans and leases / Loans and leases held for investment	1.34		%	1.34		%	1.32		%	1.56		%	1.76		%
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)	1.36		%	1.41		%	1.46		%	1.72		%	1.95		%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment	203.16		%	212.97		%	238.36		%	262.03		%	306.04		%
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment	190.70		%	208.00		%	232.80		%	250.61		%	273.06		%

	For the three months ended,															For the nine months ended,
	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Net loan and lease (recoveries) charge-offs	$	(75)		$	243		$	288		$	618		$	(35)		$	456		$	4,030
Net loan and lease (recoveries) charge-offs (annualized)/Average loans and leases	(0.01		%)	0.02		%	0.02		%	0.05		%	—		%	0.01		%	0.11		%
(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, 2021
(Dollars in thousands, except per share data)
	For the three months ended,										For the nine months ended,
For the period:	9/30/2021		6/30/2021		3/31/2021		12/31/2020		9/30/2020		9/30/2021		9/30/2020
Interest income	$	53,571	$	52,441	$	51,457	$	51,334	$	50,612	$	157,469	$	152,611
Interest expense	4,884		5,684		6,043		6,813		6,758		16,611		22,771
Net interest income	48,687		46,757		45,414		44,521		43,854		140,858		129,840
(Reversal of provision) provision for credit losses	(182)		(59)		(11,283)		(8,721)		3,935		(11,524)		49,515
Net interest income after provision for credit losses	48,869		46,816		56,697		53,242		39,919		152,382		80,325
Noninterest income:
Trust fee income	2,126		2,157		2,034		1,974		1,915		6,317		5,729
Service charges on deposit accounts	1,422		1,314		1,282		1,371		1,187		4,018		3,474
Investment advisory commission and fee income	4,796		4,558		4,697		4,144		4,005		14,051		11,800
Insurance commission and fee income	3,837		3,839		4,955		3,512		3,776		12,631		12,575
Other service fee income	2,576		2,748		2,192		2,092		2,093		7,516		5,451
Bank owned life insurance income	925		1,620		717		733		741		3,262		2,207
Net gain on sales of investment securities	21		54		65		54		57		140		817
Net gain on mortgage banking activities	3,224		3,461		5,938		4,323		5,860		12,623		12,119


Other income	1,625		479		1,370		1,936		2,171		3,474		4,017
Total noninterest income	20,552		20,230		23,250		20,139		21,805		64,032		58,189
Noninterest expense:
Salaries, benefits and commissions	26,641		25,396		24,780		23,613		24,059		76,817		69,595
Net occupancy	2,525		2,656		2,739		2,697		2,609		7,920		7,661
Equipment	1,000		968		946		951		972		2,914		2,890
Data processing	3,274		3,064		3,050		2,961		2,862		9,388		8,372
Professional fees	2,174		2,015		1,748		1,436		1,321		5,937		3,902
Marketing and advertising	539		561		280		575		463		1,380		1,400
Deposit insurance premiums	765		613		636		765		707		2,014		1,826
Intangible expenses	214		249		249		282		283		712		934


Restructuring charges	—		—		—		1,439		—		—		—
Other expense	6,116		5,764		5,112		7,015		5,251		16,992		16,684
Total noninterest expense	43,248		41,286		39,540		41,734		38,527		124,074		113,264
Income before taxes	26,173		25,760		40,407		31,647		23,197		92,340		25,250
Income tax expense	5,262		4,885		7,804		5,773		5,078		17,951		4,208
Net income	$	20,911	$	20,875	$	32,603	$	25,874	$	18,119	$	74,389	$	21,042
Net income per share:
Basic	$	0.71	$	0.71	$	1.11	$	0.88	$	0.62	$	2.53	$	0.72
Diluted	$	0.71	$	0.71	$	1.11	$	0.88	$	0.62	$	2.52	$	0.72
Dividends declared per share (1)	$	0.20	$	0.20	$	0.20	$	—	$	0.20	$	0.60	$	0.60
Weighted average shares outstanding	29,420,256		29,389,525		29,327,432		29,274,915		29,226,627		29,379,774		29,233,317
Period end shares outstanding	29,438,402		29,411,731		29,379,575		29,295,052		29,241,302		29,438,402		29,241,302

(1) As announced in the September 30, 2020 Earnings Release, the Corporation changed the timing of future dividend declarations and payments.


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2021

	For the three months ended,															For the nine months ended,
Profitability Ratios (annualized)	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Return on average assets	1.24		%	1.30		%	2.07		%	1.62		%	1.15		%	1.53		%	0.48		%
Return on average assets, excluding restructuring charges (1)	1.24		%	1.30		%	2.07		%	1.69		%	1.15		%	1.53		%	0.48		%
Return on average shareholders' equity	11.12		%	11.49		%	18.90		%	15.22		%	10.89		%	13.72		%	4.22		%
Return on average shareholders' equity, excluding restructuring charges (1)	11.12		%	11.49		%	18.90		%	15.89		%	10.89		%	13.72		%	4.22		%
Return on average tangible common equity (1)	14.51		%	15.11		%	25.20		%	20.54		%	14.82		%	18.07		%	5.74		%
Return on average tangible common equity, excluding restructuring charges (1)	14.51		%	15.11		%	25.20		%	21.44		%	14.82		%	18.07		%	5.74		%
Net interest margin (FTE)	3.11		%	3.15		%	3.12		%	3.02		%	3.02		%	3.13		%	3.21		%
Efficiency ratio (2)	61.8		%	60.7		%	57.0		%	63.8		%	58.0		%	59.8		%	59.5		%
Efficiency ratio, excluding restructuring charges (1) (2)	61.8		%	60.7		%	57.0		%	61.6		%	58.0		%	59.8		%	59.5		%

Capitalization Ratios
Dividends declared to net income (3)	28.1		%	28.2		%	18.0		%	—		%	32.3		%	23.7		%	83.3		%
Shareholders' equity to assets (Period End)	10.83		%	11.64		%	11.26		%	10.93		%	10.48		%	10.83		%	10.48		%
Tangible common equity to tangible assets (1)	8.55		%	9.15		%	8.77		%	8.40		%	7.95		%	8.55		%	7.95		%
Common equity book value per share	$	25.68		$	25.16		$	24.59		$	23.64		$	22.88		$	25.68		$	22.88
Tangible common equity book value per share (1)	$	19.75		$	19.22		$	18.64		$	17.66		$	16.88		$	19.75		$	16.88

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio	9.53		%	9.64		%	9.45		%	9.08		%	8.97		%	9.53		%	8.97		%
Common equity tier 1 risk-based capital ratio	11.15		%	11.04		%	11.08		%	10.76		%	10.52		%	11.15		%	10.52		%
Tier 1 risk-based capital ratio	11.15		%	11.04		%	11.08		%	10.76		%	10.52		%	11.15		%	10.52		%
Total risk-based capital ratio	13.87		%	13.82		%	15.13		%	15.31		%	15.35		%	13.87		%	15.35		%
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance 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) As announced in the September 30, 2020 Earnings Release, the Corporation changed the timing of future dividend declarations and payments.


Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Three Months Ended,
Tax Equivalent Basis	September 30, 2021						June 30, 2021
	Average		Income/		Average		Average		Income/		Average
(Dollars in thousands)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning deposits with other banks	$	530,191	$	189	0.14	%	$	215,349	$	46	0.09	%
U.S. government obligations	6,999		36		2.04		6,999		35		2.01
Obligations of state and political subdivisions	2,992		24		3.18		6,070		58		3.83
Other debt and equity securities	385,289		1,516		1.56		372,625		1,364		1.47
Federal Home Loan Bank, Federal Reserve Bank and other stock	26,713		334		4.96		25,872		360		5.58
Total interest-earning deposits, investments and other interest-earning assets	952,184		2,099		0.87		626,915		1,863		1.19
Commercial, financial, and agricultural loans	880,986		7,412		3.34		826,464		6,910		3.35
Paycheck Protection Program loans	162,611		4,162		10.15		408,928		4,778		4.69
Real estate—commercial and construction loans	2,784,398		25,634		3.65		2,701,137		24,931		3.70
Real estate—residential loans	1,100,799		10,171		3.67		1,065,065		9,836		3.70
Loans to individuals	26,048		253		3.85		25,284		251		3.98
Municipal loans and leases	247,603		2,504		4.01		251,311		2,598		4.15
Lease financings	117,966		1,856		6.24		110,921		1,819		6.58
Gross loans and leases	5,320,411		51,992		3.88		5,389,110		51,123		3.80
Total interest-earning assets	6,272,595		54,091		3.42		6,016,025		52,986		3.53
Cash and due from banks	59,642						52,948
Allowance for credit losses, loans and leases	(72,606)						(73,052)
Premises and equipment, net	55,685						55,903
Operating lease right-of-use assets	31,998						33,992
Other assets	350,863						357,813
Total assets	$	6,698,177					$	6,443,629
Liabilities:
Interest-bearing checking deposits	$	857,098	$	537	0.25	%	$	786,931	$	487	0.25	%
Money market savings	1,382,832		922		0.26		1,219,375		831		0.27
Regular savings	998,568		281		0.11		978,807		282		0.12
Time deposits	496,702		1,490		1.19		485,060		1,559		1.29
Total time and interest-bearing deposits	3,735,200		3,230		0.34		3,470,173		3,159		0.37
Short-term borrowings	15,116		2		0.05		19,109		3		0.06
Long-term debt	95,000		324		1.35		95,000		321		1.36
Subordinated notes	98,754		1,328		5.34		172,016		2,201		5.13
Total borrowings	208,870		1,654		3.14		286,125		2,525		3.54
Total interest-bearing liabilities	3,944,070		4,884		0.49		3,756,298		5,684		0.61
Noninterest-bearing deposits	1,931,525						1,880,916
Operating lease liabilities	35,094						37,426
Accrued expenses and other liabilities	41,303						40,239
Total liabilities	5,951,992						5,714,879
Shareholders' Equity:
Common stock	157,784						157,784
Additional paid-in capital	297,482						296,599
Retained earnings and other equity	290,919						274,367
Total shareholders' equity	746,185						728,750
Total liabilities and shareholders' equity	$	6,698,177					$	6,443,629
Net interest income			$	49,207					$	47,302
Net interest spread					2.93						2.92
Effect of net interest-free funding sources					0.18						0.23
Net interest margin					3.11	%					3.15	%
Ratio of average interest-earning assets to average interest-bearing liabilities	159.04		%				160.16		%

Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustment.
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, 2021 and June 30, 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 Three Months Ended September 30,
Tax Equivalent Basis	2021						2020
	Average		Income/		Average		Average		Income/		Average
(Dollars in thousands)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning deposits with other banks	$	530,191	$	189	0.14	%	$	368,181	$	100	0.11	%
U.S. government obligations	6,999		36		2.04		6,998		36		2.05
Obligations of state and political subdivisions	2,992		24		3.18		18,004		167		3.69
Other debt and equity securities	385,289		1,516		1.56		360,219		1,610		1.78
Federal Home Loan Bank, Federal Reserve Bank and other stock	26,713		334		4.96		28,651		419		5.82
Total interest-earning deposits, investments and other interest-earning assets	952,184		2,099		0.87		782,053		2,332		1.19
Commercial, financial, and agricultural loans	880,986		7,412		3.34		807,376		7,330		3.61
Paycheck Protection Program loans	162,611		4,162		10.15		500,549		2,811		2.23
Real estate—commercial and construction loans	2,784,398		25,634		3.65		2,358,971		23,547		3.97
Real estate—residential loans	1,100,799		10,171		3.67		1,009,407		10,380		4.09
Loans to individuals	26,048		253		3.85		28,663		309		4.29
Municipal loans and leases	247,603		2,504		4.01		267,364		2,839		4.22
Lease financings	117,966		1,856		6.24		97,707		1,662		6.77
Gross loans and leases	5,320,411		51,992		3.88		5,070,037		48,878		3.84
Total interest-earning assets	6,272,595		54,091		3.42		5,852,090		51,210		3.48
Cash and due from banks	59,642						56,715
Allowance for credit losses, loans and leases	(72,606)						(87,046)
Premises and equipment, net	55,685						55,755
Operating lease right-of-use assets	31,998						33,875
Other assets	350,863						354,216
Total assets	$	6,698,177					$	6,265,605
Liabilities:
Interest-bearing checking deposits	$	857,098	$	537	0.25	%	$	725,580	$	468	0.26	%
Money market savings	1,382,832		922		0.26		1,116,628		897		0.32
Regular savings	998,568		281		0.11		901,716		449		0.20
Time deposits	496,702		1,490		1.19		525,656		2,214		1.68
Total time and interest-bearing deposits	3,735,200		3,230		0.34		3,269,580		4,028		0.49
Short-term borrowings	15,116		2		0.05		130,359		97		0.30
Long-term debt	95,000		324		1.35		208,776		742		1.41
Subordinated notes	98,754		1,328		5.34		155,945		1,891		4.82
Total borrowings	208,870		1,654		3.14		495,080		2,730		2.19
Total interest-bearing liabilities	3,944,070		4,884		0.49		3,764,660		6,758		0.71
Noninterest-bearing deposits	1,931,525						1,760,818
Operating lease liabilities	35,094						37,170
Accrued expenses and other liabilities	41,303						41,010
Total liabilities	5,951,992						5,603,658
Shareholders' Equity:
Common stock	157,784						157,784
Additional paid-in capital	297,482						296,272
Retained earnings and other equity	290,919						207,891
Total shareholders' equity	746,185						661,947
Total liabilities and shareholders' equity	$	6,698,177					$	6,265,605
Net interest income			$	49,207					$	44,452
Net interest spread					2.93						2.77
Effect of net interest-free funding sources					0.18						0.25
Net interest margin					3.11	%					3.02	%
Ratio of average interest-earning assets to average interest-bearing liabilities	159.04		%				155.45		%


Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
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, 2021 and 2020 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	2021						2020
	Average		Income/		Average		Average		Income/		Average
(Dollars in thousands)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning deposits with other banks	$	328,768	$	291	0.12	%	$	267,023	$	492	0.25	%
U.S. government obligations	6,999		107		2.04		7,176		109		2.03
Obligations of state and political subdivisions	6,838		187		3.66		26,019		696		3.57
Other debt and equity securities	371,355		4,147		1.49		379,729		6,460		2.27
Federal Home Loan Bank, Federal Reserve Bank and other stock	26,319		1,042		5.29		29,689		1,308		5.88
Total interest-earning deposits, investments and other interest-earning assets	740,279		5,774		1.04		709,636		9,065		1.71
Commercial, financial, and agricultural loans	830,248		21,120		3.40		815,178		23,291		3.82
Paycheck Protection Program loans	358,231		13,464		5.03		291,173		4,939		2.27
Real estate—commercial and construction loans	2,703,100		75,023		3.71		2,244,143		70,574		4.20
Real estate—residential loans	1,067,855		29,880		3.74		1,001,904		31,702		4.23
Loans to individuals	25,925		769		3.97		29,251		1,043		4.76
Municipal loans and leases	248,191		7,632		4.11		291,845		9,081		4.16
Lease financings	111,569		5,412		6.49		92,780		4,808		6.92
Gross loans and leases	5,345,119		153,300		3.83		4,766,274		145,438		4.08
Total interest-earning assets	6,085,398		159,074		3.49		5,475,910		154,503		3.77
Cash and due from banks	55,983						51,544
Allowance for credit losses, loans and leases	(76,265)						(66,977)
Premises and equipment, net	55,803						55,967
Operating lease right-of-use assets	33,334						34,278
Other assets	355,323						342,196
Total assets	$	6,509,576					$	5,892,918
Liabilities:
Interest-bearing checking deposits	$	820,800	$	1,514	0.25	%	$	642,935	$	1,636	0.34	%
Money market savings	1,282,470		2,606		0.27		1,079,279		4,653		0.58
Regular savings	979,013		861		0.12		863,772		1,716		0.27
Time deposits	502,414		4,808		1.28		568,517		7,801		1.83
Total time and interest-bearing deposits	3,584,697		9,789		0.37		3,154,503		15,806		0.67
Short-term borrowings	17,363		7		0.05		110,689		325		0.39
Long-term debt	97,088		993		1.37		196,053		2,268		1.55
Subordinated notes	151,060		5,822		5.15		115,376		4,372		5.06
Total borrowings	265,511		6,822		3.44		422,118		6,965		2.20
Total interest-bearing liabilities	3,850,208		16,611		0.58		3,576,621		22,771		0.85
Noninterest-bearing deposits	1,854,648						1,571,629
Operating lease liabilities	36,636						37,538
Accrued expenses and other liabilities	43,023						41,691
Total liabilities	5,784,515						5,227,479
Shareholders' Equity:
Common stock	157,784						157,784
Additional paid-in capital	296,744						295,759
Retained earnings and other equity	270,533						211,896
Total shareholders' equity	725,061						665,439
Total liabilities and shareholders' equity	$	6,509,576					$	5,892,918
Net interest income			$	142,463					$	131,732
Net interest spread					2.91						2.92
Effect of net interest-free funding sources					0.22						0.29
Net interest margin					3.13	%					3.21	%
Ratio of average interest-earning assets to average interest-bearing liabilities	158.05		%				153.10		%


Note 1: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
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, 2021 and 2020 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)

(Dollars in thousands)	As of September 30, 2021
Industry Description	Total Outstanding Balance (excl PPP)		% of Commercial Loan Portfolio		$ Balance of Modified Loans (1)		Modified Loans as a % of Portfolio (excl PPP) (1)
CRE - Retail	$	365,379	8.6	%	$	—	—	%
Animal Production	291,723		6.8		—		—
CRE - 1-4 Family Residential Investment	255,116		6.0		—		—
CRE - Office	240,011		5.6		—		—
CRE - Multi-family	206,667		4.8		—		—
CRE - Industrial / Warehouse	180,421		4.2		—		—
Nursing and Residential Care Facilities	171,482		4.0		—		—
Hotels & Motels (Accommodation)	170,042		4.0		10,613		6.2
Education	156,395		3.7		—		—
Specialty Trade Contractors	122,222		2.9		—		—
CRE - Mixed-Use - Residential	120,873		2.8		—		—
CRE - Medical Office	103,553		2.4		—		—
Real Estate Lenders, Secondary Market Financing	98,983		2.3		—		—
Homebuilding (tract developers, remodelers)	92,782		2.2		—		—
Merchant Wholesalers, Durable Goods	87,849		2.1		—		—
Crop Production	75,439		1.8		—		—
Private Equity & Special Purpose Entities	74,026		1.7		—		—
Rental and Leasing Services	70,499		1.7		—		—
Motor Vehicle and Parts Dealers	66,880		1.6		—		—
Food Manufacturing	65,857		1.5		—		—
Wood Product Manufacturing	64,403		1.5		—		—
Fabricated Metal Product Manufacturing	60,991		1.4		—		—
Merchant Wholesalers, Nondurable Goods	60,276		1.4		—		—
Food Services and Drinking Places	57,794		1.3		—		—
Administrative and Support Services	53,430		1.3		104		0.2
Miniwarehouse/Self-Storage	52,815		1.2		—		—
Industries with >$50 million in outstandings	$	3,365,908	78.8	%	$	10,717	0.3	%
Industries with <$50 million in outstandings	$	903,880	21.2	%	$	6,878	0.8	%
Total Commercial Loans	$	4,269,788	100.0	%	$	17,595	0.4	%

Consumer Loans and Lease Financings	Total Outstanding Balance				$ Balance of Modified Loans (1)		Modified Loans as a % of Portfolio (excl PPP) (1)
Real Estate-Residential Secured for Personal Purpose	$	535,705			$	337	0.1	%
Real Estate-Home Equity Secured for Personal Purpose	159,029				—		—
Loans to Individuals	26,458				15		0.1
Lease Financings	175,464				107		0.1
Total Consumer Loans and Lease Financings	$	896,656			$	459	0.1	%

Total	$	5,166,444			$	18,054	0.3	%

(1) Loan modifications referenced above were made in accordance with Section 4013 of the CARES Act, the Consolidated Appropriations Act, 2021 and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and therefore were not classified as TDRs as of September 30, 2021.


Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2021

Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.




	As of or for the three months ended,															As of or for the nine months ended,
(Dollars in thousands)	9/30/2021			6/30/2021			3/31/2021			12/31/2020			9/30/2020			9/30/2021			9/30/2020
Restructuring charges (a)	$	—		$	—		$	—		$	1,439		$	—		$	—		$	—
Tax effect of restructuring charges	—			—			—			(302)			—			—			—
Restructuring charges, net of tax	$	—		$	—		$	—		$	1,137		$	—		$	—		$	—

Shareholders' equity	$	756,023		$	739,998		$	722,455		$	692,472		$	669,107		$	756,023		$	669,107
Goodwill	(172,559)			(172,559)			(172,559)			(172,559)			(172,559)			(172,559)			(172,559)
Other intangibles (b)	(1,922)			(2,073)			(2,326)			(2,580)			(2,866)			(1,922)			(2,866)
Tangible common equity	$	581,542		$	565,366		$	547,570		$	517,333		$	493,682		$	581,542		$	493,682

Total assets	$	6,979,852		$	6,356,305		$	6,416,665		$	6,336,496		$	6,382,831		$	6,979,852		$	6,382,831
Goodwill	(172,559)			(172,559)			(172,559)			(172,559)			(172,559)			(172,559)			(172,559)
Other intangibles (b)	(1,922)			(2,073)			(2,326)			(2,580)			(2,866)			(1,922)			(2,866)
Tangible assets	$	6,805,371		$	6,181,673		$	6,241,780		$	6,161,357		$	6,207,406		$	6,805,371		$	6,207,406

Average shareholders' equity	$	746,185		$	728,750		$	699,736		$	676,426		$	661,947		$	725,061		$	665,439
Average goodwill	(172,559)			(172,559)			(172,559)			(172,559)			(172,559)			(172,559)			(172,559)
Average other intangibles (b)	(1,983)			(2,209)			(2,464)			(2,734)			(3,019)			(2,217)			(3,332)
Average tangible common equity	$	571,643		$	553,982		$	524,713		$	501,133		$	486,369		$	550,285		$	489,548

Net income before taxes	$	26,173		$	25,760		$	40,407		$	31,647		$	23,197		$	92,340		$	25,250
Provision for credit losses	(182)			(59)			(11,283)			(8,721)			3,935			(11,524)			49,515
Pre-tax pre-provision income	$	25,991		$	25,701		$	29,124		$	22,926		$	27,132		$	80,816		$	74,765

Loans and leases held for investment, gross	$	5,252,045		$	5,327,313		$	5,415,006		$	5,306,841		$	5,211,856		$	5,252,045		$	5,211,856
Paycheck Protection Program ("PPP") loans	(85,601)			(252,849)			(528,452)			(483,773)			(501,580)			(85,601)			(501,580)
Gross loans and leases, excluding PPP loans	$	5,166,444		$	5,074,464		$	4,886,554		$	4,823,068		$	4,710,276		$	5,166,444		$	4,710,276

Allowance for credit losses, loans and leases	$	70,146		$	71,355		$	71,497		$	83,044		$	91,870		$	70,146		$	91,870
Gross loans and leases, excluding PPP loans	5,166,444			5,074,464			4,886,554			4,823,068			4,710,276			5,166,444			4,710,276
Allowance for credit losses, loans and leases as a percentage of gross loans and leases excluding PPP loans	1.36		%	1.41		%	1.46		%	1.72		%	1.95		%	1.36		%	1.95		%

(a) Associated with financial center optimization plan
(b) Amount does not include mortgage servicing rights


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