EX-99.1 3 exhibit991earningsrelease0.htm EX-99.1 Document

Exhibit 99.1
NEWS
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CONTACT:     Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net                     

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION REPORTS FIRST QUARTER RESULTS
(Announces 5% increase in dividend and plan to commence quarterly share repurchases)

SOUDERTON, Pa., April 27, 2022 - Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced net income for the quarter ended March 31, 2022 was $20.3 million, or $0.68 diluted earnings per share, compared to net income of $32.6 million, or $1.11 diluted earnings per share, for the quarter ended March 31, 2021.

Expansion Markets
The Corporation announced expansion into two new markets with the hiring of Chris Trombetta, Market President of the Western Pennsylvania ("PA") region, and Matthew Cohen, Market President of the Maryland region. Mr. Trombetta joins Univest from a regional bank where he served as SVP and Commercial Banking Team Leader for Western PA. Mr. Cohen joins Univest from a regional bank where he served as the Business Banking Regional Manager in Baltimore. Messrs. Trombetta and Cohen each will be working to identify a site in their respective regions to serve as the Corporation's regional headquarters. In addition to building commercial lending teams, Messrs. Trombetta and Cohen will be working with Univest's various lines of business to ensure that they collectively bring the full suite of products and services into these new markets. Jeffrey Schweitzer, President and CEO, commented on the recent additions and the expansion markets, "We are very excited to welcome Chris and Matt to the Univest family and are thrilled about the opportunity to enter these new markets. The success we have seen in our Central PA region demonstrates our ability to enter and grow in new markets. Our Central PA region started as a lift out of fifteen employees in 2016 and has grown to a team of over sixty-five with $1.2 billion in loans outstanding."



Digital Transformation
During the first quarter of 2022, the Corporation began development of a comprehensive digital platform which will blend our core operating systems together and allow Univest to seamlessly sell existing products and services, digitally, across an expanded footprint. Mr. Schweitzer commented, "This platform will enable us to achieve our long-term vision for a hub and spoke approach, creating an operating model that allows Univest to lean on digital capabilities as the 'spoke' and regional headquarters as the 'hubs'." The Corporation expects to launch the new digital platform by the end of the first quarter of 2023. The first quarter of 2022 results include approximately $779 thousand in expenses related to this initiative.

Dividend and Share Repurchases
On April 27, 2022, Univest declared a quarterly cash dividend of $0.21 per share to be paid on May 25, 2022 to shareholders of record as of May 11, 2022. This dividend represents an increase of $0.01 per share, or 5.0%, and is the first change in our dividend since 2006. While the Corporation has not repurchased stock in the open market since March of 2020, the Corporation intends to begin repurchasing approximately 150,000 shares per quarter. There are currently 679,174 shares available for repurchase under the Corporation's existing Repurchase Plan.

Mr. Schweitzer commented, "The dividend increase and planned repurchase activity reflect the strong capital position of the Corporation, the benefit of the rising interest rates on our profitability, and our commitment to returning value to our shareholders."

Paycheck Protection Program
As of March 31, 2022, $10.3 million in Paycheck Protection Program ("PPP") loans remained outstanding. During the quarter, $591 thousand was recorded as net interest income related to these loans, of which $552 thousand was the result of recognition of associated net deferred loan fees upon forgiveness and pay downs of PPP loans totaling $22.0 million. As of March 31, 2022, the Corporation had $272 thousand of net deferred fees on the balance sheet, which represented approximately 1.5% of the initial deferred fee amount.

Loans
Gross loans and leases, excluding PPP loans1, increased $112.2 million, or 8.5% (annualized), from December 31, 2021 primarily due to increases in commercial real estate and residential mortgage loans. Gross loans and leases, excluding PPP loans1, increased $503.9 million, or 10.3%, from March 31, 2021 primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.
1 Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


Deposits
Total deposits decreased $7.2 million, or 0.5% (annualized), from December 31, 2021, primarily due to decreases in consumer and public funds deposits offset by an increase in commercial deposits. Total deposits increased $736.3 million, or 13.9%, from March 31, 2021, primarily due to increases in commercial, consumer and public funds deposits.
Net Interest Income and Margin
Net interest income of $46.7 million for the first quarter of 2022 increased $1.2 million, or 2.7%, from the first quarter of 2021. The increase in net interest income for the first quarter of 2022 compared to the first quarter of 2021 was due to loan and investment balance growth outpacing declines in yield on interest-bearing assets and a decrease in the cost of interest-bearing liabilities, offset by a decrease in PPP loan income.

Net interest margin, on a tax-equivalent basis, was 2.89% for the first quarter of 2022, compared to 2.86% for the fourth quarter of 2021 and 3.12% for the first quarter of 2021. Excess liquidity reduced net interest margin by approximately 33 basis points for the quarter ended March 31, 2022 compared to 43 basis points for the quarter ended December 31, 2021 and 11 basis points for the quarter ended March 31, 2021. 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 three basis points for the quarter ended March 31, 2022 compared to eight basis points for the quarter ended December 31, 2021 and four basis points for the quarter ended March 31, 2021. As PPP loans are forgiven, the associated deferred fees are recognized in earnings, which occurred with greater frequency in 2021 as compared to 2022. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.19% for the quarter ended March 31, 2022 compared to 3.21% for the quarter ended December 31, 2021 and 3.19% for the quarter ended March 31, 2021.

Noninterest Income
Noninterest income for the quarter ended March 31, 2022 was $20.5 million, a decrease of $2.8 million, or 12.0%, compared to the first quarter of 2021.

Net gain on mortgage banking activities decreased $4.0 million, or 67.5%, for the quarter primarily due to a decrease in loan sales and a contraction of margins. Other income decreased $642 thousand, or 46.9%, for the quarter ended March 31, 2022, primarily due to a decrease of $657 thousand in fees on risk participation agreements for interest rate swaps driven by a decrease in customer demand.



Investment advisory commission and fee income increased $455 thousand, or 9.7%, for the quarter ended March 31, 2022, primarily due to new customer relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance. Insurance commission and fee income increased $615 thousand, or 12.4%, for the quarter ended March 31, 2022, primarily due to incremental revenue attributable to the insurance agency the Corporation acquired in the fourth quarter of 2021.

Other service fee income increased $564 thousand, or 25.7%, for the quarter ended March 31, 2022. Interchange fee income increased $176 thousand for the quarter ended March 31, 2022 due to increased customer activity. Mortgage servicing fees increased $262 thousand for the quarter ended March 31, 2022 driven by reduced amortization as a result of a decrease in prepayment speeds.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2022 was $45.4 million, an increase of $5.9 million, or 14.9%, compared to the first quarter of 2021.

Salaries, benefits and commissions increased $3.5 million, or 14.0%, for the quarter ended March 31, 2022. These increases reflect our continued investment in revenue producing staff across all business lines, including the acquisition of the Paul I. Schaeffer insurance agency, and annual merit increases. Additionally, during the first quarter of 2022, we incurred $387 thousand of short-term incremental guaranties related to the hiring of new producers in our Mortgage Banking line of business. Finally, the first quarter of 2021 was benefited by $582 thousand of incremental capitalized compensation related to the origination of PPP loans.

Data processing expenses increased $517 thousand, or 17.0%, for the quarter ended March 31, 2022 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, outsourced data processing solutions, and $103 thousand in support of our digital transformation initiative.

Professional fees increased $390 thousand, or 22.3%, for the quarter ended March 31, 2022, primarily attributable to $658 thousand in consultant fees spent in support of our digital transformation initiative, as compared to our $276 thousand investment in support of our Diversity, Equity and Inclusion training initiatives in the quarter ended March 31, 2021. Deposit insurance premiums increased $257 thousand, or 40.4%, for the quarter ended March 31, 2022, attributable to an increased assessment base primarily driven by excess liquidity.



Other expense increased $993 thousand, or 19.4%, for the quarter ended March 31, 2022 driven by increases in recruiting costs of $282 thousand due to increased hiring activity and travel and entertainment expenses of $265 thousand, which have begun to normalize as the markets we operate in continue to remain open. Additionally, we incurred costs of $330 thousand as a result of a customer who was defrauded.

Tax Provision
The effective income tax rate was 19.3% for the quarters ended March 31, 2022 and March 31, 2021, which were favorably impacted by 8 and 4 basis points, respectively, of discrete tax benefits resulting from equity compensation awards vesting in the respective quarters. Additionally, the effective tax rate reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $31.5 million at March 31, 2022, compared to $34.0 million at December 31, 2021 and $38.2 million at March 31, 2021.

Net loan and lease charge-offs were $76 thousand during the first quarter of 2022 compared to $288 thousand for the quarter ended March 31, 2021. The reversal of provision for credit losses was $3.5 million for the first quarter of 2022, of which $5.7 million (after-tax benefit of $4.5 million), or $0.15 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporation’s CECL model, partially offset by increases in reserves for loans, unfunded commitments and investment securities. The reversal of provision for credit losses was $11.3 million for the quarter ended March 31, 2021, of which $12.9 million (after-tax benefit of $10.2 million), or $0.35 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporation’s CECL model partially offset by a reserve increase attributable to loan growth.

The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.26% at March 31, 2022, compared to 1.35% at December 31, 2021, and 1.32% at March 31, 2021. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment, excluding PPP loans2, was 1.27% at March 31, 2022 compared to 1.36% at December 31, 2021 and 1.46% at March 31, 2021.

Conference Call
Univest will host a conference call to discuss first quarter 2022 results on Thursday, April 28, 2022 at 9:00 a.m. EST. Participants may preregister at https://www.incommglobalevents.com/registration/q4inc/10559/univest-financial-corporation-to-hold-first-quarter-2022-earnings-call/. The general public can access the
2 Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


call by dialing 1-844-200-6205; using Access Code 206799. A replay of the conference call will be available through May 28, 2022 by dialing 1-866-813-9403; using Access Code: 439536.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.1 billion in assets and $4.6 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2022. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  
# # #
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future results 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 changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations of lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and credit loss provisions; (4) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory or tax changes that may adversely affect businesses; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the current or anticipated impact of military conflict, terrorism or other geopolitical events; or (10) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

Additionally, it is difficult to predict the continued effects 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. 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 economic conditions worsen, loan delinquencies, problem assets, and foreclosures may increase and our allowance for credit losses may have to be increased; (3) collateral for loans, especially real estate, may decline in value; (4) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (5) 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; (6) our wealth management revenues may decline with market turmoil; and (7) our cyber security risks may increase as the result of an increase in the number of employees working remotely. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

(UVSP - ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2022
(Dollars in thousands)
Balance Sheet (Period End)3/31/202212/31/20219/30/20216/30/20213/31/2021
ASSETS
Cash and due from banks $57,307 $49,202 $67,517 $50,358 $35,117 
Interest-earning deposits with other banks 716,474 840,948 834,840 153,091 152,200 
Cash and cash equivalents773,781 890,150 902,357 203,449 187,317 
Investment securities held-to-maturity166,339 176,983 112,643 119,692 135,153 
Investment securities available for sale, net of allowance for credit losses349,994 317,007 277,773 274,862 238,829 
Investments in equity securities2,569 2,999 2,961 2,872 3,524 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost26,330 28,186 28,679 25,228 25,571 
Loans held for sale14,521 21,600 29,093 27,322 22,636 
Loans and leases held for investment5,400,786 5,310,017 5,252,045 5,327,313 5,415,006 
Less: Allowance for credit losses, loans and leases (68,286)(71,924)(70,146)(71,355)(71,497)
Net loans and leases held for investment5,332,500 5,238,093 5,181,899 5,255,958 5,343,509 
Premises and equipment, net 50,429 56,882 55,354 56,067 55,650 
Operating lease right-of-use assets30,498 30,407 31,570 33,688 34,317 
Goodwill175,510 175,510 172,559 172,559 172,559 
Other intangibles, net of accumulated amortization11,784 11,848 9,359 9,396 9,225 
Bank owned life insurance119,398 118,699 117,981 117,765 118,435 
Accrued interest and other assets 54,087 54,057 57,624 57,447 69,940 
Total assets $7,107,740 $7,122,421 $6,979,852 $6,356,305 $6,416,665 
LIABILITIES
Noninterest-bearing deposits$2,136,467 $2,065,423 $1,861,007 $1,872,031 $1,857,547 
Interest-bearing deposits:3,911,465 3,989,701 4,077,147 3,446,673 3,454,045 
Total deposits 6,047,932 6,055,124 5,938,154 5,318,704 5,311,592 
Short-term borrowings18,976 20,106 14,101 25,251 26,676 
Long-term debt 95,000 95,000 95,000 95,000 95,000 
Subordinated notes 98,952 98,874 98,797 98,719 173,617 
Operating lease liabilities33,566 33,453 34,641 37,131 37,737 
Accrued expenses and other liabilities 39,459 46,070 43,136 41,502 49,588 
Total liabilities 6,333,885 6,348,627 6,223,829 5,616,307 5,694,210 
SHAREHOLDER'S 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 capital297,945 299,181 298,033 297,208 296,177 
Retained earnings389,332 375,124 363,607 348,579 333,581 
Accumulated other comprehensive loss, net of tax benefit(31,909)(16,353)(20,073)(19,545)(20,440)
Treasury stock, at cost(39,297)(41,942)(43,328)(44,028)(44,647)
Total shareholders’ equity773,855 773,794 756,023 739,998 722,455 
Total liabilities and shareholders’ equity$7,107,740 $7,122,421 $6,979,852 $6,356,305 $6,416,665 
For the three months ended,
Balance Sheet (Average)3/31/202212/31/20219/30/20216/30/20213/31/2021
Assets$7,047,980 $7,088,289 $6,698,177 $6,443,629 $6,383,463 
Investment securities, net of allowance for credit losses522,128 469,588 395,280 385,694 374,369 
Loans and leases, gross5,344,698 5,255,279 5,320,411 5,389,110 5,325,897 
Deposits5,984,815 6,041,798 5,666,725 5,351,089 5,296,147 
Shareholders' equity774,358 762,334 746,185 728,750 699,736 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
March 31, 2022
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)3/31/202212/31/20219/30/20216/30/20213/31/2021
Commercial, financial and agricultural$932,485 $956,396 $927,015 $920,621 $871,996 
Paycheck Protection Program10,298 31,748 85,601 252,849 528,452 
Real estate-commercial2,816,737 2,718,535 2,669,898 2,600,919 2,531,700 
Real estate-construction285,083 283,918 260,874 274,529 249,652 
Real estate-residential secured for business purpose412,486 409,900 412,001 407,664 387,801 
Real estate-residential secured for personal purpose568,735 540,566 535,705 513,330 494,349 
Real estate-home equity secured for personal purpose160,134 158,909 159,029 160,018 162,529 
Loans to individuals26,249 25,504 26,458 25,845 25,468 
Lease financings188,579 184,541 175,464 171,538 163,059 
Total loans and leases held for investment, net of deferred income5,400,786 5,310,017 5,252,045 5,327,313 5,415,006 
Less: Allowance for credit losses, loans and leases(68,286)(71,924)(70,146)(71,355)(71,497)
Net loans and leases held for investment$5,332,500 $5,238,093 $5,181,899 $5,255,958 $5,343,509 
Asset Quality Data (Period End)3/31/202212/31/20219/30/20216/30/20213/31/2021
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale$30,876 $33,210 $34,528 $37,466 $29,996 
Accruing loans and leases 90 days or more past due274 498 2,204 750 664 
Accruing troubled debt restructured loans and leases51 51 51 52 52 
Total nonperforming loans and leases31,201 33,759 36,783 38,268 30,712 
Other real estate owned279 279 279 279 7,481 
Total nonperforming assets$31,480 $34,038 $37,062 $38,547 $38,193 
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale0.57 %0.63 %0.66 %0.70 %0.55 %
Nonperforming loans and leases / Loans and leases held for investment0.58 %0.64 %0.70 %0.72 %0.57 %
Nonperforming assets / Total assets0.44 %0.48 %0.53 %0.61 %0.60 %
Allowance for credit losses, loans and leases$68,286 $71,924 $70,146 $71,355 $71,497 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.26 %1.35 %1.34 %1.34 %1.32 %
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)1.27 %1.36 %1.36 %1.41 %1.46 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment221.16 %216.57 %203.16 %212.97 %238.36 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment218.86 %213.05 %190.70 %208.00 %232.80 %
For the three months ended,
3/31/202212/31/20219/30/20216/30/20213/31/2021
Net loan and lease charge-offs (recoveries)$76 $(243)$(75)$243 $288 
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases0.01 %(0.02)%(0.01)%0.02 %0.02 %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2022
(Dollars in thousands, except per share data)
For the three months ended,
For the period:3/31/202212/31/20219/30/20216/30/20213/31/2021
Interest income$51,198 $52,262 $53,571 $52,441 $51,457 
Interest expense4,538 4,737 4,884 5,684 6,043 
Net interest income46,660 47,525 48,687 46,757 45,414 
(Reversal of provision) provision for credit losses(3,450)1,392 (182)(59)(11,283)
Net interest income after provision for credit losses50,110 46,133 48,869 46,816 56,697 
Noninterest income:
Trust fee income2,102 2,086 2,126 2,157 2,034 
Service charges on deposit accounts1,504 1,486 1,422 1,314 1,282 
Investment advisory commission and fee income5,152 4,885 4,796 4,558 4,697 
Insurance commission and fee income5,570 3,726 3,837 3,839 4,955 
Other service fee income2,756 2,759 2,576 2,748 2,192 
Bank owned life insurance income699 719 925 1,620 717 
Net gain on sales of investment securities30 5 21 54 65 
Net gain on mortgage banking activities1,929 2,518 3,224 3,461 5,938 
Other income728 1,008 1,625 479 1,370 
Total noninterest income20,470 19,192 20,552 20,230 23,250 
Noninterest expense:
Salaries, benefits and commissions28,245 27,374 26,641 25,396 24,780 
Net occupancy2,716 2,477 2,525 2,656 2,739 
Equipment982 985 1,000 968 946 
Data processing3,567 3,355 3,274 3,064 3,050 
Professional fees2,138 1,750 2,174 2,015 1,748 
Marketing and advertising425 683 539 561 280 
Deposit insurance premiums893 698 765 613 636 
Intangible expenses341 267 214 249 249 
Other expense6,105 5,746 6,116 5,764 5,112 
Total noninterest expense45,412 43,335 43,248 41,286 39,540 
Income before taxes25,168 21,990 26,173 25,760 40,407 
Income tax expense4,851 4,578 5,262 4,885 7,804 
Net income$20,317 $17,412 $20,911 $20,875 $32,603 
Net income per share:
Basic$0.69 $0.59 $0.71 $0.71 $1.11 
Diluted$0.68 $0.59 $0.71 $0.71 $1.11 
Dividends declared per share$0.20 $0.20 $0.20 $0.20 $0.20 
Weighted average shares outstanding29,542,467 29,471,304 29,420,256 29,389,525 29,327,432 
Period end shares outstanding29,636,425 29,500,542 29,438,402 29,411,731 29,379,575 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2022
For the three months ended,
Profitability Ratios (annualized)3/31/202212/31/20219/30/20216/30/20213/31/2021
Return on average assets1.17 %0.97 %1.24 %1.30 %2.07 %
Return on average shareholders' equity10.64 %9.06 %11.12 %11.49 %18.90 %
Return on average tangible common equity (1)(3)14.04 %11.93 %14.63 %15.26 %25.35 %
Net interest margin (FTE)2.89 %2.86 %3.11 %3.15 %3.12 %
Efficiency ratio (2)67.0 %64.3 %61.8 %60.7 %57.0 %
Capitalization Ratios
Dividends declared to net income29.1 %33.9 %28.1 %28.2 %18.0 %
Shareholders' equity to assets (Period End)10.89 %10.86 %10.83 %11.64 %11.26 %
Tangible common equity to tangible assets (1)8.58 %8.56 %8.55 %9.15 %8.77 %
Common equity book value per share$26.11 $26.23 $25.68 $25.16 $24.59 
Tangible common equity book value per share (1)$20.06 $20.14 $19.75 $19.22 $18.64 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.35 %9.13 %9.53 %9.64 %9.45 %
Common equity tier 1 risk-based capital ratio11.07 %11.08 %11.15 %11.04 %11.08 %
Tier 1 risk-based capital ratio11.07 %11.08 %11.15 %11.04 %11.08 %
Total risk-based capital ratio13.73 %13.77 %13.87 %13.82 %15.13 %
(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 BasisMarch 31, 2022December 31, 2021
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$733,173 $357 0.20 %$914,287 $370 0.16 %
U.S. government obligations5,222 26 2.02 6,999 37 2.10 
Obligations of state and political subdivisions*2,332 19 3.30 2,334 19 3.23 
Other debt and equity securities514,574 2,339 1.84 460,255 1,845 1.59 
Federal Home Loan Bank, Federal Reserve Bank and other stock27,115 355 5.31 28,402 375 5.24 
Total interest-earning deposits, investments and other interest-earning assets1,282,416 3,096 0.98 1,412,277 2,646 0.74 
Commercial, financial, and agricultural loans901,555 7,571 3.41 869,471 7,022 3.20 
Paycheck Protection Program loans18,402 591 13.02 53,745 1,568 11.57 
Real estate—commercial and construction loans2,904,602 25,820 3.61 2,826,720 26,669 3.74 
Real estate—residential loans1,116,356 9,882 3.59 1,107,911 10,165 3.64 
Loans to individuals25,799 238 3.74 26,462 249 3.73 
Municipal loans and leases*242,508 2,434 4.07 245,038 2,515 4.07 
Lease financings135,476 2,075 6.21 125,932 1,951 6.15 
     Gross loans and leases5,344,698 48,611 3.69 5,255,279 50,139 3.79 
          Total interest-earning assets6,627,114 51,707 3.16 6,667,556 52,785 3.14 
Cash and due from banks53,698 54,958 
Allowance for credit losses, loans and leases(72,067)(71,020)
Premises and equipment, net53,948 56,087 
Operating lease right-of-use assets30,394 31,048 
Other assets354,893 349,660 
      Total assets$7,047,980 $7,088,289 
Liabilities:
Interest-bearing checking deposits$881,462 $443 0.20 %$939,478 $493 0.21 %
Money market savings1,542,581 904 0.24 1,616,890 968 0.24 
Regular savings1,021,550 238 0.09 997,814 253 0.10 
Time deposits473,589 1,306 1.12 487,434 1,370 1.12 
Total time and interest-bearing deposits3,919,182 2,891 0.30 4,041,616 3,084 0.30 
Short-term borrowings17,636 2 0.05 14,144 1 0.03 
Long-term debt95,000 317 1.35 95,000 325 1.36 
Subordinated notes98,911 1,328 5.45 98,833 1,327 5.33 
     Total borrowings211,547 1,647 3.16 207,977 1,653 3.15 
     Total interest-bearing liabilities4,130,729 4,538 0.45 4,249,593 4,737 0.44 
Noninterest-bearing deposits2,065,633 2,000,182 
Operating lease liabilities33,452 34,114 
Accrued expenses and other liabilities43,808 42,066 
     Total liabilities6,273,622 6,325,955 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital298,975 298,508 
Retained earnings and other equity317,599 306,042 
     Total shareholders' equity774,358 762,334 
     Total liabilities and shareholders' equity$7,047,980 $7,088,289 
Net interest income$47,169 $48,048 
Net interest spread2.71 2.70 
Effect of net interest-free funding sources0.18 0.16 
Net interest margin2.89 %2.86 %
Ratio of average interest-earning assets to average interest-bearing liabilities160.43 %156.90 %
*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 adjustment.
Net interest income includes net deferred (costs) fees of $(136) thousand and $707 thousand for the three months ended March 31, 2022 and December 31, 2021.
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, 2022 and December 31, 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 March 31,
Tax Equivalent Basis20222021
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$733,173 $357 0.20 %$237,548 $56 0.10 %
U.S. government obligations5,222 26 2.02 6,998 36 2.09 
Obligations of state and political subdivisions*2,332 19 3.30 11,544 105 3.69 
Other debt and equity securities514,574 2,339 1.84 355,827 1,267 1.44 
Federal Home Loan Bank, Federal Reserve Bank and other stock27,115 355 5.31 26,368 348 5.35 
Total interest-earning deposits, investments and other interest-earning assets1,282,416 3,096 0.98 638,285 1,812 1.15 
Commercial, financial, and agricultural loans901,555 7,571 3.41 782,208 6,798 3.52 
Paycheck Protection Program loans18,402 591 13.02 506,939 4,524 3.62 
Real estate—commercial and construction loans2,904,602 25,820 3.61 2,621,981 24,458 3.78 
Real estate—residential loans1,116,356 9,882 3.59 1,037,000 9,873 3.86 
Loans to individuals25,799 238 3.74 26,447 265 4.06 
Municipal loans and leases*242,508 2,434 4.07 245,638 2,530 4.18 
Lease financings135,476 2,075 6.21 105,684 1,737 6.67 
     Gross loans and leases5,344,698 48,611 3.69 5,325,897 50,185 3.82 
          Total interest-earning assets6,627,114 51,707 3.16 5,964,182 51,997 3.54 
Cash and due from banks53,698 55,311 
Allowance for credit losses, loans and leases(72,067)(83,254)
Premises and equipment, net53,948 55,826 
Operating lease right-of-use assets30,394 34,033 
Other assets354,893 357,365 
      Total assets$7,047,980 $6,383,463 
Liabilities:
Interest-bearing checking deposits$881,462 $443 0.20 %$817,940 $490 0.24 %
Money market savings1,542,581 904 0.24 1,243,673 853 0.28 
Regular savings1,021,550 238 0.09 959,232 298 0.13 
Time deposits473,589 1,306 1.12 525,800 1,759 1.36 
Total time and interest-bearing deposits3,919,182 2,891 0.30 3,546,645 3,400 0.39 
Short-term borrowings17,636 2 0.05 17,894 2 0.05 
Long-term debt95,000 317 1.35 101,333 348 1.39 
Subordinated notes98,911 1,328 5.45 183,340 2,293 5.07 
     Total borrowings211,547 1,647 3.16 302,567 2,643 3.54 
     Total interest-bearing liabilities4,130,729 4,538 0.45 3,849,212 6,043 0.64 
Noninterest-bearing deposits2,065,633 1,749,502 
Operating lease liabilities33,452 37,415 
Accrued expenses and other liabilities43,808 47,598 
     Total liabilities6,273,622 5,683,727 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital298,975 296,136 
Retained earnings and other equity317,599 245,816 
     Total shareholders' equity774,358 699,736 
     Total liabilities and shareholders' equity$7,047,980 $6,383,463 
Net interest income$47,169 $45,954 
Net interest spread2.71 2.90 
Effect of net interest-free funding sources0.18 0.22 
Net interest margin2.89 %3.12 %
Ratio of average interest-earning assets to average interest-bearing liabilities160.43 %154.95 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred (costs) fees of $(136) thousand and $2.3 million for the three months ended March 31, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended March 31, 2022 and 2021 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 March 31, 2022
Industry DescriptionTotal Outstanding Balance (excl PPP)% of Commercial Loan Portfolio$ Balance of Modified Loans (1)Modified Loans as a % of Portfolio (excl PPP) (1)
CRE - Retail$359,125 8.1 %$— — %
Animal Production310,747 7.0 — — 
CRE - Multi-family244,480 5.5 — — 
CRE - 1-4 Family Residential Investment234,653 5.3 — — 
CRE - Office231,125 5.2 — — 
Hotels & Motels (Accommodation)186,497 4.2 1,437 0.8 
Nursing and Residential Care Facilities168,896 3.8 — — 
CRE - Industrial / Warehouse160,318 3.6 — — 
Education151,238 3.4 — — 
Specialty Trade Contractors133,455 3.0 — — 
CRE - Mixed-Use - Residential116,479 2.6 — — 
CRE - Medical Office108,836 2.4 — — 
Homebuilding (tract developers, remodelers)101,112 2.3 — — 
Merchant Wholesalers, Durable Goods93,073 2.1 — — 
Motor Vehicle and Parts Dealers89,723 2.0 — — 
Crop Production85,886 1.9 — — 
Food Manufacturing78,597 1.8 — — 
Wood Product Manufacturing77,165 1.7 — — 
Rental and Leasing Services72,878 1.6 — — 
Food Services and Drinking Places71,327 1.6 473 0.7 
Administrative and Support Services69,578 1.6 — — 
Merchant Wholesalers, Nondurable Goods64,564 1.5 — — 
Personal and Laundry Services61,402 1.4 — — 
Fabricated Metal Product Manufacturing60,398 1.4 — — 
Religious Organizations, Advocacy Groups56,869 1.3 — — 
Miniwarehouse / Self-Storage54,382 1.2 — — 
Repair and Maintenance53,267 1.2 — — 
Industries with >$50 million in outstandings$3,496,070 78.6 %$1,910 0.1 %
Industries with <$50 million in outstandings $950,721 21.4 %$790 0.1 %
Total Commercial Loans$4,446,791 100.0 %$2,700 0.1 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance$ Balance of Modified Loans (1)Modified Loans as a % of Portfolio (excl PPP) (1)
Real Estate-Residential Secured for Personal Purpose$568,735 $— — %
Real Estate-Home Equity Secured for Personal Purpose160,134 — — 
Loans to Individuals26,249 — — 
Lease Financings188,579 — — 
Total Consumer Loans and Lease Financings$943,697 $— — %
Total$5,390,488 $2,700 0.1 %
(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 March 31, 2022.



Univest Financial Corporation
Non-GAAP Reconciliation
March 31, 2022
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)3/31/202212/31/20219/30/20216/30/20213/31/2021
Net income$20,317 $17,412 $20,911 $20,875 $32,603 
Amortization of intangibles, net of tax269 211 169 197 197 
Net income before amortization of intangibles$20,586 $17,623 $21,080 $21,072 $32,800 
Shareholders' equity$773,855 $773,794 $756,023 $739,998 $722,455 
Goodwill(175,510)(175,510)(172,559)(172,559)(172,559)
Other intangibles (a)(3,936)(4,210)(1,922)(2,073)(2,326)
Tangible common equity$594,409 $594,074 $581,542 $565,366 $547,570 
Total assets$7,107,740 $7,122,421 $6,979,852 $6,356,305 $6,416,665 
Goodwill(175,510)(175,510)(172,559)(172,559)(172,559)
Other intangibles (a)(3,936)(4,210)(1,922)(2,073)(2,326)
Tangible assets$6,928,294 $6,942,701 $6,805,371 $6,181,673 $6,241,780 
Average shareholders' equity$774,358 $762,334 $746,185 $728,750 $699,736 
Average goodwill(175,510)(173,553)(172,559)(172,559)(172,559)
Average other intangibles (a)(4,090)(2,696)(1,983)(2,209)(2,464)
Average tangible common equity$594,758 $586,085 $571,643 $553,982 $524,713 
Loans and leases held for investment, gross$5,400,786 $5,310,017 $5,252,045 $5,327,313 $5,415,006 
Paycheck Protection Program ("PPP") loans (10,298)(31,748)(85,601)(252,849)(528,452)
Gross loans and leases, excluding PPP loans$5,390,488 $5,278,269 $5,166,444 $5,074,464 $4,886,554 
Allowance for credit losses, loans and leases$68,286 $71,924 $70,146 $71,355 $71,497 
Gross loans and leases, excluding PPP loans5,390,488 5,278,269 5,166,444 5,074,464 4,886,554 
Allowance for credit losses, loans and leases as a percentage of gross loans and leases excluding PPP loans1.27 %1.36 %1.36 %1.41 %1.46 %
(a) Amount does not include mortgage servicing rights