8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 _______________________ 

FORM 8-K 

_______________________ 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 26, 2023

 _______________________ 

UNIVEST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

  

Pennsylvania	0-7617	23-1886144
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

14 North Main Street, Souderton, Pennsylvania 18964

(Address of principal executive office)(Zip Code)

Registrant’s telephone number, including area code (215) 721-2400

Not applicable

(Former name or former address, if changed since last report)

 _______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b))
☐	Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c))

Securities registered pursuant to Section 12(b) of the Act:

Title of class	Trading Symbol	Name of exchange on which registered
Common Stock, $5 par value	UVSP	The NASDAQ Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company	☐
If an emerging growth company, indicated by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	¨

Item 2.02 Results of Operations and Financial Condition

On April 26, 2023, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2023 first quarter earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits

Exhibit No.	Description of Document
99.1	Press release issued by Univest Financial Corporation on April 26, 2023
104	The cover page from the Corporation's Form 8-K, formatted in Inline XBRL

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Univest Financial Corporation
By:	/s/ Brian J. Richardson
Name:	Brian J. Richardson
Title:	Senior Executive Vice President,
	Chief Financial Officer

April 27, 2023

EXHIBIT INDEX

 

Exhibit No.	Description of Document
99.1	Press release issued by Univest Financial Corporation on April 26, 2023
104	The cover page from the Corporation's Form 8-K, formatted in Inline XBRL

EX-99.1

Exhibit 99.1

NEWS

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

SOUDERTON, Pa., April 26, 2023 - 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, 2023 was $21.0 million, or $0.71 diluted earnings per share, compared to net income of $20.3 million, or $0.68 diluted earnings per share, for the quarter ended March 31, 2022.

Loans

Gross loans and leases increased $116.6 million, or 1.9% (7.6% annualized), from December 31, 2022, primarily due to increases in commercial real estate, residential mortgage loans, and lease financings. Gross loans and leases increased $839.0 million, or 15.5%, from March 31, 2022, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.

Deposits and Liquidity

Total deposits decreased $78.9 million, or 1.3% (5.2% annualized), from December 31, 2022, primarily due to decreases in commercial and consumer deposits partially offset by increases in public funds and brokered deposits. Total deposits decreased $213.3 million, or 3.5%, from March 31, 2022, primarily due to decreases in commercial and consumer deposits partially offset by increases in public funds and brokered deposits. While we experienced certain expected outflows during the quarter, we saw net deposit inflows of $81.1 million during the month of March. Noninterest-bearing deposits represented 30.8% of total deposits at March 31, 2023, down from 34.6% at December 31, 2022. At March 31, 2023, uninsured deposits, adjusted to exclude internal accounts and collateralized trust and public funds deposit accounts, represented 27.2% of total deposits.

The Corporation and its subsidiaries had committed borrowing capacity of $3.1 billion at March 31, 2023, of which $1.9 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $410.0 million at March 31, 2023, of which $320.0 million was available. 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 $59.3 million for the first quarter of 2023 increased$12.7 million, or 27.1%, from the first quarter of 2022 and decreased $2.6 million, or 4.2%, from the fourth quarter of 2022. The increase in net interest income for the first quarter of 2023 compared to the first quarter of 2022 was largely due to significant loan balance growth and an increase in asset yields, offset by increases in the average balance of borrowings and the cost of funds.

Net interest margin, on a tax-equivalent basis, was 3.58% for the first quarter of 2023, compared to 3.76% for the fourth quarter of 2022 and 2.89% for the first quarter of 2022. Excess liquidity had no impact on net interest margin for the quarter ended March 31, 2023. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended December 31, 2022 and 33 basis points for the quarter ended March 31, 2022. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 3.77% for the quarter ended December 31, 2022 and 3.22% for the quarter ended March 31, 2022.

Noninterest Income

Noninterest income for the quarter ended March 31, 2023 was $19.7 million, a decrease of $790 thousand, or 3.9%, from the comparable period in the prior year.

Net gain on mortgage banking activities decreased $1.3 million, or 67.6%, for the quarter primarily due to a decrease in loan sales and a contraction of gain on sale margins due to the higher interest rate environment in 2023. Investment advisory commission and fee income decreased $400 thousand, or 7.8%, for the quarter ended March 31, 2023, primarily driven by reduced assets under management and supervision due to market volatility.

Insurance commission and fee income increased $917 thousand, or 16.5%, for the quarter ended March 31, 2023, primarily due to increases in premiums for group life and health and commercial lines and an increase in contingent commission income of $651 thousand, which was $1.8 million and $1.2 million for the quarters ended March 31, 2023 and 2022, respectively. Contingent income is largely recognized in the first quarter of the year.

Noninterest Expense

Noninterest expense for the quarter ended March 31, 2023 was $49.5 million, an increase of $4.1 million, or 9.1%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $2.8 million, or 9.8%, for the quarter ended March 31, 2023. This increase reflects our expansion into Maryland and Western Pennsylvania and annual merit increases. Additionally, capitalized compensation decreased by $480 thousand due to reduced loan production.

Data processing expenses increased $462 thousand, or 13.0%, for the quarter ended March 31, 2023, primarily due to our investments in technology in recent years and general price increases incurred in the second half of 2022. Other expense increased $1.0 million, or 16.3%, for the quarter ended March 31, 2023, primarily due to increases in retirement plan costs of $407 thousand, which was primarily driven by the current interest rate environment, and Bank Shares tax expense of $110 thousand driven by year over year growth of the Bank's Shareholders' Equity.

Tax Provision

The effective income tax rate was 19.4% for the quarter ended March 31, 2023, compared to an effective income tax rate of 19.3% for the quarter ended March 31, 2022, which were favorably impacted by 7 and 8 basis points, respectively, of discrete tax benefits resulting from equity compensation awards vesting in the respective quarters. Additionally, the effective tax rates for the three months ended March 31, 2023 and 2022 reflected 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 $32.4 million at March 31, 2023, compared to $33.5 million at December 31, 2022 and $31.4 million at March 31, 2022.

Net loan and lease charge-offs were $2.8 million during the first quarter of 2023 compared to $76 thousand for the quarter ended March 31, 2022. During the first quarter of 2023, $2.4 million of charge-offs were recorded against two existing nonaccrual commercial loans to one borrower. As of December 31, 2022, the allowance for credit losses included a $2.1 million specific reserve for this relationship.

The provision for credit losses was $3.4 million for the first quarter of 2023 compared to a reversal of provision for credit losses of $3.5 million for the quarter ended March 31, 2022. 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, 2023 compared to 1.29% at December 31, 2022 and 1.26% at March 31, 2022.

Dividend

On April 26, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on May 24, 2023 to shareholders of record as of May 10, 2023.

Conference Call

Univest will host a conference call to discuss first quarter 2023 results on Thursday, April 27, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=c7437c5e&confId=49225.The general public can access the call by dialing 1-833-470-1428; using Access Code 409762. A replay of the conference call will be available through May 27, 2023 by dialing 1-866-813-9403; using Access Code: 839460.

About Univest Financial Corporation

Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.4 billion in assets and $4.3 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2023. 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, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio; (5) changes in economic conditions nationally and in our market; (6) economic assumptions that may impact our allowance for credit losses calculation; (7) legislative, regulatory, accounting or tax changes; (8) technological issues that may adversely affect our operations or those of our customers; (9) changes in the securities markets; (10) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (11) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (12) potential recessionary conditions and/or (13) 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, 2023
(Dollars in thousands)
Balance Sheet (Period End)	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
ASSETS
Cash and due from banks	$	71,215	$	84,176	$	65,859	$	59,590	$	57,307
Interest-earning deposits with other banks	67,109		68,623		47,451		35,187		716,474
Cash and cash equivalents	138,324		152,799		113,310		94,777		773,781
Investment securities held-to-maturity	151,347		154,727		159,170		159,808		166,339
Investment securities available for sale, net of allowance for credit losses	367,656		350,256		347,479		351,382		349,994
Investments in equity securities	3,105		2,579		2,994		2,934		2,569
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost	43,792		33,841		29,475		29,116		26,330
Loans held for sale	5,425		5,037		9,087		8,352		14,521
Loans and leases held for investment	6,239,804		6,123,230		5,849,259		5,661,777		5,400,786
Less: Allowance for credit losses, loans and leases	(80,034)		(79,004)		(74,929)		(72,011)		(68,286)
Net loans and leases held for investment	6,159,770		6,044,226		5,774,330		5,589,766		5,332,500
Premises and equipment, net	52,334		50,939		50,533		50,080		50,429
Operating lease right-of-use assets	31,663		30,059		30,654		30,929		30,498
Goodwill	175,510		175,510		175,510		175,510		175,510
Other intangibles, net of accumulated amortization	11,044		11,384		11,650		11,728		11,784
Bank owned life insurance	128,926		120,297		120,035		120,103		119,398
Accrued interest and other assets	90,095		90,362		83,170		76,328		54,087
Total assets	$	7,358,991	$	7,222,016	$	6,907,397	$	6,700,813	$	7,107,740
LIABILITIES
Noninterest-bearing deposits	$	1,799,225	$	2,047,263	$	1,968,422	$	2,062,538	$	2,136,467
Interest-bearing deposits:	4,035,432		3,866,263		3,818,554		3,500,510		3,911,465
Total deposits	5,834,657		5,913,526		5,786,976		5,563,048		6,047,932
Short-term borrowings	271,881		197,141		80,711		97,606		18,976
Long-term debt	220,000		95,000		95,000		95,000		95,000
Subordinated notes	148,385		148,260		99,107		99,030		98,952
Operating lease liabilities	34,846		33,153		33,718		33,951		33,566
Accrued expenses and other liabilities	50,726		58,436		57,698		48,253		39,459
Total liabilities	6,560,495		6,445,516		6,153,210		5,936,888		6,333,885
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	298,167		300,808		299,791		298,800		297,945
Retained earnings	443,493		428,637		410,942		396,295		389,332
Accumulated other comprehensive loss, net of tax benefit	(55,550)		(62,104)		(64,985)		(42,781)		(31,909)
Treasury stock, at cost	(45,398)		(48,625)		(49,345)		(46,173)		(39,297)
Total shareholders’ equity	798,496		776,500		754,187		763,925		773,855
Total liabilities and shareholders’ equity	$	7,358,991	$	7,222,016	$	6,907,397	$	6,700,813	$	7,107,740
	For the three months ended,
Balance Sheet (Average)	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Assets	$	7,219,211	$	7,019,381	$	6,797,466	$	6,962,401	$	7,047,980
Investment securities, net of allowance for credit losses	515,880		505,717		517,335		515,741		522,128
Loans and leases, gross	6,164,890		5,979,581		5,752,119		5,520,580		5,344,698
Deposits	5,834,415		5,837,823		5,645,291		5,903,173		5,984,815
Shareholders' equity	789,153		767,192		773,099		771,410		774,358

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
March 31, 2023
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Commercial, financial and agricultural	$	1,032,753		$	1,088,928		$	1,054,940		$	1,033,712		$	942,783
Real estate-commercial	3,128,210			3,027,955			2,936,204			2,870,286			2,816,737
Real estate-construction	376,569			381,811			329,915			319,449			285,083
Real estate-residential secured for business purpose	498,505			478,254			443,837			419,652			412,486
Real estate-residential secured for personal purpose	779,557			730,395			685,771			629,144			568,735
Real estate-home equity secured for personal purpose	172,073			176,699			175,843			168,536			160,134
Loans to individuals	28,656			27,873			26,679			27,061			26,249
Lease financings	223,481			211,315			196,070			193,937			188,579
Total loans and leases held for investment, net of deferred income	6,239,804			6,123,230			5,849,259			5,661,777			5,400,786
Less: Allowance for credit losses, loans and leases	(80,034)			(79,004)			(74,929)			(72,011)			(68,286)
Net loans and leases held for investment	$	6,159,770		$	6,044,226		$	5,774,330		$	5,589,766		$	5,332,500
Asset Quality Data (Period End)	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Nonaccrual loans and leases	$	11,362		$	13,353		$	13,620		$	13,355		$	30,876
Accruing loans and leases 90 days or more past due	1,996			875			416			2,784			274
Total nonperforming loans and leases	13,358			14,228			14,036			16,139			31,150
Other real estate owned	19,000			19,258			18,960			18,604			279
Total nonperforming assets	$	32,358		$	33,486		$	32,996		$	34,743		$	31,429
Nonaccrual loans and leases / Loans and leases held for investment	0.18		%	0.22		%	0.23		%	0.24		%	0.57		%
Nonperforming loans and leases / Loans and leases held for investment	0.21		%	0.23		%	0.24		%	0.29		%	0.58		%
Nonperforming assets / Total assets	0.44		%	0.46		%	0.48		%	0.52		%	0.44		%
Allowance for credit losses, loans and leases	$	80,034		$	79,004		$	74,929		$	72,011		$	68,286
Allowance for credit losses, loans and leases / Loans and leases held for investment	1.28		%	1.29		%	1.28		%	1.27		%	1.26		%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment	704.40		%	591.66		%	550.14		%	539.21		%	221.16		%
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment	599.15		%	555.27		%	533.83		%	446.19		%	219.22		%
	For the three months ended,
	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Net loan and lease charge-offs	$	2,842		$	908		$	1,196		$	1,715		$	76
Net loan and lease charge-offs (annualized)/Average loans and leases	0.19		%	0.06		%	0.08		%	0.12		%	0.01		%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2023
(Dollars in thousands, except per share data)
	For the three months ended,
For the period:	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Interest income	$	83,253	$	77,401	$	66,877	$	56,717	$	51,198
Interest expense	23,936		15,485		8,627		5,246		4,538
Net interest income	59,317		61,916		58,250		51,471		46,660
Provision (reversal of provision) for credit losses	3,387		5,416		3,558		6,674		(3,450)
Net interest income after provision for credit losses	55,930		56,500		54,692		44,797		50,110
Noninterest income:
Trust fee income	1,955		1,808		1,835		1,998		2,102
Service charges on deposit accounts	1,547		1,575		1,522		1,574		1,504
Investment advisory commission and fee income	4,752		5,585		4,199		4,812		5,152
Insurance commission and fee income	6,487		4,424		4,442		4,629		5,570
Other service fee income	3,076		3,236		3,124		3,309		2,756
Bank owned life insurance income	767		1,230		1,153		705		699
Net gain on sales of investment securities	—		—		—		—		30
Net gain on mortgage banking activities	625		436		817		1,230		1,929
Other income	471		2,164		867		741		728
Total noninterest income	19,680		20,458		17,959		18,998		20,470
Noninterest expense:
Salaries, benefits and commissions	31,014		29,028		29,400		29,133		28,245
Net occupancy	2,727		2,551		2,504		2,422		2,716
Equipment	993		977		968		977		982
Data processing	4,029		4,039		3,901		3,708		3,567
Professional fees	1,941		1,829		2,521		2,844		2,138
Marketing and advertising	371		739		605		693		425
Deposit insurance premiums	1,101		708		662		812		893
Intangible expenses	253		301		309		342		341
Restructuring charges	—		184		—		—		—
Other expense	7,100		6,970		5,795		6,440		6,105
Total noninterest expense	49,529		47,326		46,665		47,371		45,412
Income before taxes	26,081		29,632		25,986		16,424		25,168
Income tax expense	5,047		5,796		5,185		3,258		4,851
Net income	$	21,034	$	23,836	$	20,801	$	13,166	$	20,317
Net income per share:
Basic	$	0.72	$	0.82	$	0.71	$	0.45	$	0.69
Diluted	$	0.71	$	0.81	$	0.71	$	0.45	$	0.68
Dividends declared per share	$	0.21	$	0.21	$	0.21	$	0.21	$	0.20
Weighted average shares outstanding	29,312,265		29,251,293		29,290,829		29,490,154		29,542,467
Period end shares outstanding	29,427,696		29,271,915		29,242,451		29,365,775		29,636,425

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2023
	For the three months ended,
Profitability Ratios (annualized)	3/31/2023			12/31/2022			9/30/2022			6/30/2022			3/31/2022
Return on average assets	1.18		%	1.35		%	1.21		%	0.76		%	1.17		%
Return on average assets, excluding restructuring charges (1)	1.18		%	1.36		%	1.21		%	0.76		%	1.17		%
Return on average shareholders' equity	10.81		%	12.33		%	10.67		%	6.85		%	10.64		%
Return on average shareholders' equity, excluding restructuring charges (1)	10.81		%	12.40		%	10.67		%	6.85		%	10.64		%
Return on average tangible common equity (1)(3)	14.11		%	16.23		%	14.06		%	9.10		%	14.04		%
Return on average tangible common equity, excluding restructuring charges (1)(3)	14.11		%	16.33		%	14.06		%	9.10		%	14.04		%
Net interest margin (FTE)	3.58		%	3.76		%	3.67		%	3.19		%	2.89		%
Efficiency ratio (2)	62.2		%	56.9		%	60.6		%	66.6		%	67.0		%
Efficiency ratio, excluding restructuring charges (1)(2)	62.2		%	56.7		%	60.6		%	66.6		%	67.0		%
Capitalization Ratios
Dividends declared to net income	29.2		%	25.8		%	29.6		%	47.1		%	29.1		%
Shareholders' equity to assets (Period End)	10.85		%	10.75		%	10.92		%	11.40		%	10.89		%
Tangible common equity to tangible assets (1)	8.63		%	8.49		%	8.55		%	8.97		%	8.58		%
Common equity book value per share	$	27.13		$	26.53		$	25.79		$	26.01		$	26.11
Tangible common equity book value per share (1)	$	21.07		$	20.42		$	19.67		$	19.91		$	20.06
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio	9.71		%	9.81		%	9.87		%	9.45		%	9.35		%
Common equity tier 1 risk-based capital ratio	10.43		%	10.37		%	10.51		%	10.62		%	11.07		%
Tier 1 risk-based capital ratio	10.43		%	10.37		%	10.51		%	10.62		%	11.07		%
Total risk-based capital ratio	13.78		%	13.67		%	13.10		%	13.23		%	13.73		%
(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 Basis	March 31, 2023						December 31, 2022
	Average		Income/		Average		Average		Income/		Average
(Dollars in thousands)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning deposits with other banks	$	47,835	$	479	4.06	%	$	57,059	$	487	3.39	%
Obligations of state and political subdivisions*	2,286		17		3.02		2,266		17		2.98
Other debt and equity securities	513,594		3,495		2.76		503,451		3,316		2.61
Federal Home Loan Bank, Federal Reserve Bank and other stock	34,742		609		7.11		29,401		493		6.65
Total interest-earning deposits, investments and other interest-earning assets	598,457		4,600		3.12		592,177		4,313		2.89
Commercial, financial, and agricultural loans	991,876		15,538		6.35		1,007,121		14,471		5.70
Real estate—commercial and construction loans	3,342,199		42,421		5.15		3,223,822		39,459		4.86
Real estate—residential loans	1,408,292		15,730		4.53		1,335,220		14,340		4.26
Loans to individuals	27,254		449		6.68		26,772		401		5.94
Municipal loans and leases*	229,955		2,341		4.13		233,684		2,433		4.13
Lease financings	165,314		2,541		6.23		152,962		2,416		6.27
Gross loans and leases	6,164,890		79,020		5.20		5,979,581		73,520		4.88
Total interest-earning assets	6,763,347		83,620		5.01		6,571,758		77,833		4.70
Cash and due from banks	58,035						56,428
Allowance for credit losses, loans and leases	(79,977)						(75,390)
Premises and equipment, net	51,583						50,803
Operating lease right-of-use assets	31,303						30,413
Other assets	394,920						385,369
Total assets	$	7,219,211					$	7,019,381
Liabilities:
Interest-bearing checking deposits	$	857,891	$	3,164	1.50	%	$	924,012	$	2,746	1.18	%
Money market savings	1,489,129		11,081		3.02		1,365,502		7,670		2.23
Regular savings	985,716		669		0.28		1,045,261		492		0.19
Time deposits	566,308		3,422		2.45		433,010		1,586		1.45
Total time and interest-bearing deposits	3,899,044		18,336		1.91		3,767,785		12,494		1.32
Short-term borrowings	240,318		2,728		4.60		101,126		852		3.34
Long-term debt	112,222		591		2.14		95,000		324		1.35
Subordinated notes	148,319		2,281		6.24		124,250		1,815		5.80
Total borrowings	500,859		5,600		4.53		320,376		2,991		3.70
Total interest-bearing liabilities	4,399,903		23,936		2.21		4,088,161		15,485		1.50
Noninterest-bearing deposits	1,935,371						2,070,038
Operating lease liabilities	34,438						33,492
Accrued expenses and other liabilities	60,346						60,498
Total liabilities	6,430,058						6,252,189
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")	6,335,274				1.53		6,158,199				1.00
Shareholders' Equity:
Common stock	157,784						157,784
Additional paid-in capital	300,293						300,121
Retained earnings and other equity	331,076						309,287
Total shareholders' equity	789,153						767,192
Total liabilities and shareholders' equity	$	7,219,211					$	7,019,381
Net interest income			$	59,684					$	62,348
Net interest spread					2.80						3.20
Effect of net interest-free funding sources					0.78						0.56
Net interest margin					3.58	%					3.76	%
Ratio of average interest-earning assets to average interest-bearing liabilities	153.72		%				160.75		%
*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 amortization of $465 thousand and $516 thousand for the three months ended March 31, 2023 and December 31, 2022.
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, 2023 and December 31, 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
	For the Three Months Ended March 31,
Tax Equivalent Basis	2023						2022
	Average		Income/		Average		Average		Income/		Average
(Dollars in thousands)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning deposits with other banks	$	47,835	$	479	4.06	%	$	733,173	$	357	0.20	%
U.S. government obligations	—		—		—		5,222		26		2.02
Obligations of state and political subdivisions*	2,286		17		3.02		2,332		19		3.30
Other debt and equity securities	513,594		3,495		2.76		514,574		2,339		1.84
Federal Home Loan Bank, Federal Reserve Bank and other stock	34,742		609		7.11		27,115		355		5.31
Total interest-earning deposits, investments and other interest-earning assets	598,457		4,600		3.12		1,282,416		3,096		0.98
Commercial, financial, and agricultural loans	991,876		15,538		6.35		919,957		8,162		3.60
Real estate—commercial and construction loans	3,342,199		42,421		5.15		2,904,602		25,820		3.61
Real estate—residential loans	1,408,292		15,730		4.53		1,116,356		9,882		3.59
Loans to individuals	27,254		449		6.68		25,799		238		3.74
Municipal loans and leases*	229,955		2,341		4.13		242,508		2,434		4.07
Lease financings	165,314		2,541		6.23		135,476		2,075		6.21
Gross loans and leases	6,164,890		79,020		5.20		5,344,698		48,611		3.69
Total interest-earning assets	6,763,347		83,620		5.01		6,627,114		51,707		3.16
Cash and due from banks	58,035						53,698
Allowance for credit losses, loans and leases	(79,977)						(72,067)
Premises and equipment, net	51,583						53,948
Operating lease right-of-use assets	31,303						30,394
Other assets	394,920						354,893
Total assets	$	7,219,211					$	7,047,980
Liabilities:
Interest-bearing checking deposits	$	857,891	$	3,164	1.50	%	$	881,462	$	443	0.20	%
Money market savings	1,489,129		11,081		3.02		1,542,581		904		0.24
Regular savings	985,716		669		0.28		1,021,550		238		0.09
Time deposits	566,308		3,422		2.45		473,589		1,306		1.12
Total time and interest-bearing deposits	3,899,044		18,336		1.91		3,919,182		2,891		0.30
Short-term borrowings	240,318		2,728		4.60		17,636		2		0.05
Long-term debt	112,222		591		2.14		95,000		317		1.35
Subordinated notes	148,319		2,281		6.24		98,911		1,328		5.45
Total borrowings	500,859		5,600		4.53		211,547		1,647		3.16
Total interest-bearing liabilities	4,399,903		23,936		2.21		4,130,729		4,538		0.45
Noninterest-bearing deposits	1,935,371						2,065,633
Operating lease liabilities	34,438						33,452
Accrued expenses and other liabilities	60,346						43,808
Total liabilities	6,430,058						6,273,622
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")	6,335,274				1.53		6,196,362				0.30
Shareholders' Equity:
Common stock	157,784						157,784
Additional paid-in capital	300,293						298,975
Retained earnings and other equity	331,076						317,599
Total shareholders' equity	789,153						774,358
Total liabilities and shareholders' equity	$	7,219,211					$	7,047,980
Net interest income			$	59,684					$	47,169
Net interest spread					2.80						2.71
Effect of net interest-free funding sources					0.78						0.18
Net interest margin					3.58	%					2.89	%
Ratio of average interest-earning assets to average interest-bearing liabilities	153.72		%				160.43		%
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $465 thousand and $136 thousand for the three months ended March 31, 2023 and 2022, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended March 31, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
March 31, 2023
(Dollars in thousands)
Industry Description	Total Outstanding Balance		% of Commercial Loan Portfolio
CRE - Retail	$	443,932	8.8	%
Animal Production	341,832		6.8
CRE - Office	308,583		6.1
CRE - Multi-family	294,816		5.8
CRE - 1-4 Family Residential Investment	269,295		5.3
Hotels & Motels (Accommodation)	207,019		4.1
CRE - Industrial / Warehouse	199,372		4.0
Nursing and Residential Care Facilities	165,160		3.3
Homebuilding (tract developers, remodelers)	156,753		3.1
Education	155,441		3.1
Specialty Trade Contractors	149,939		3.0
Merchant Wholesalers, Durable Goods	128,837		2.6
Motor Vehicle and Parts Dealers	123,448		2.5
CRE - Mixed-Use - Residential	111,124		2.2
Crop Production	93,487		1.9
Administrative and Support Services	85,589		1.7
Rental and Leasing Services	79,800		1.6
Wood Product Manufacturing	78,939		1.6
CRE - Mixed-Use - Commercial	78,628		1.6
Real Estate Lenders, Secondary Market Financing	76,798		1.5
Religious Organizations, Advocacy Groups	74,590		1.5
Fabricated Metal Product Manufacturing	70,896		1.4
Merchant Wholesalers, Nondurable Goods	68,129		1.3
Food Services and Drinking Places	66,605		1.3
Food Manufacturing	66,425		1.3
Personal and Laundry Services	64,434		1.3
Amusement, Gambling, and Recreation Industries	61,295		1.2
Repair and Maintenance	56,749		1.1
Miniwarehouse / Self-Storage	56,336		1.1
Private Equity & Special Purpose Entities (excluding Trusts, Estates and Agency Accounts)	54,918		1.1
Truck Transportation	52,263		1.0
Industries with >$50 million in outstandings	$	4,241,432	84.2	%
Industries with <$50 million in outstandings	$	794,605	15.8	%
Total Commercial Loans	$	5,036,037	100.0	%
Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose	$	779,557
Real Estate-Home Equity Secured for Personal Purpose	172,073
Loans to Individuals	28,656
Lease Financings	223,481
Total Consumer Loans and Lease Financings	$	1,203,767
Total	$	6,239,804

Univest Financial Corporation
Non-GAAP Reconciliation
March 31, 2023
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)	3/31/2023		12/31/2022		9/30/2022		6/30/2022		3/31/2022
Restructuring charges (a)	$	—	$	184	$	—	$	—	$	—
Tax effect of restructuring charges	—		(39)		—		—		—
Restructuring charges, net of tax	$	—	$	145	$	—	$	—	$	—
Net income	$	21,034	$	23,836	$	20,801	$	13,166	$	20,317
Amortization of intangibles, net of tax	200		238		244		270		269
Net income before amortization of intangibles	$	21,234	$	24,074	$	21,045	$	13,436	$	20,586
Shareholders' equity	$	798,496	$	776,500	$	754,187	$	763,925	$	773,855
Goodwill	(175,510)		(175,510)		(175,510)		(175,510)		(175,510)
Other intangibles (b)	(3,054)		(3,251)		(3,485)		(3,678)		(3,936)
Tangible common equity	$	619,932	$	597,739	$	575,192	$	584,737	$	594,409
Total assets	$	7,358,991	$	7,222,016	$	6,907,397	$	6,700,813	$	7,107,740
Goodwill	(175,510)		(175,510)		(175,510)		(175,510)		(175,510)
Other intangibles (b)	(3,054)		(3,251)		(3,485)		(3,678)		(3,936)
Tangible assets	$	7,180,427	$	7,043,255	$	6,728,402	$	6,521,625	$	6,928,294
Average shareholders' equity	$	789,153	$	767,192	$	773,099	$	771,410	$	774,358
Average goodwill	(175,510)		(175,510)		(175,510)		(175,510)		(175,510)
Average other intangibles (b)	(3,137)		(3,355)		(3,550)		(3,791)		(4,090)
Average tangible common equity	$	610,506	$	588,327	$	594,039	$	592,109	$	594,758
(a) Associated with the consolidation of two financial centers
(b) Amount does not include mortgage servicing rights

XML

Cover	Apr. 26, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Apr. 26, 2023
Entity Registrant Name	UNIVEST FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	PA
Entity File Number	0-7617
Entity Tax Identification Number	23-1886144
Entity Address, Address Line One	14 North Main Street
Entity Address, City or Town	Souderton
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18964
City Area Code	215
Local Phone Number	721-2400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $5 par value
Trading Symbol	UVSP
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000102212
Amendment Flag	false