EX-99.1 2 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


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)3/31/202312/31/20229/30/20226/30/20223/31/2022
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 equivalents138,324 152,799 113,310 94,777 773,781 
Investment securities held-to-maturity151,347 154,727 159,170 159,808 166,339 
Investment securities available for sale, net of allowance for credit losses367,656 350,256 347,479 351,382 349,994 
Investments in equity securities3,105 2,579 2,994 2,934 2,569 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost43,792 33,841 29,475 29,116 26,330 
Loans held for sale5,425 5,037 9,087 8,352 14,521 
Loans and leases held for investment6,239,804 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 investment6,159,770 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 assets31,663 30,059 30,654 30,929 30,498 
Goodwill175,510 175,510 175,510 175,510 175,510 
Other intangibles, net of accumulated amortization11,044 11,384 11,650 11,728 11,784 
Bank owned life insurance128,926 120,297 120,035 120,103 119,398 
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 borrowings271,881 197,141 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 liabilities34,846 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 issued157,784 157,784 157,784 157,784 157,784 
Additional paid-in capital298,167 300,808 299,791 298,800 297,945 
Retained earnings443,493 428,637 410,942 396,295 389,332 
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’ equity798,496 776,500 754,187 763,925 773,855 
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)3/31/202312/31/20229/30/20226/30/20223/31/2022
Assets$7,219,211 $7,019,381 $6,797,466 $6,962,401 $7,047,980 
Investment securities, net of allowance for credit losses515,880 505,717 517,335 515,741 522,128 
Loans and leases, gross6,164,890 5,979,581 5,752,119 5,520,580 5,344,698 
Deposits5,834,415 5,837,823 5,645,291 5,903,173 5,984,815 
Shareholders' equity789,153 767,192 773,099 771,410 774,358 


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)3/31/202312/31/20229/30/20226/30/20223/31/2022
Commercial, financial and agricultural$1,032,753 $1,088,928 $1,054,940 $1,033,712 $942,783 
Real estate-commercial3,128,210 3,027,955 2,936,204 2,870,286 2,816,737 
Real estate-construction376,569 381,811 329,915 319,449 285,083 
Real estate-residential secured for business purpose498,505 478,254 443,837 419,652 412,486 
Real estate-residential secured for personal purpose779,557 730,395 685,771 629,144 568,735 
Real estate-home equity secured for personal purpose172,073 176,699 175,843 168,536 160,134 
Loans to individuals28,656 27,873 26,679 27,061 26,249 
Lease financings223,481 211,315 196,070 193,937 188,579 
Total loans and leases held for investment, net of deferred income6,239,804 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)3/31/202312/31/20229/30/20226/30/20223/31/2022
Nonaccrual loans and leases$11,362 $13,353 $13,620 $13,355 $30,876 
Accruing loans and leases 90 days or more past due1,996 875 416 2,784 274 
Total nonperforming loans and leases13,358 14,228 14,036 16,139 31,150 
Other real estate owned19,000 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 investment0.18 %0.22 %0.23 %0.24 %0.57 %
Nonperforming loans and leases / Loans and leases held for investment0.21 %0.23 %0.24 %0.29 %0.58 %
Nonperforming assets / Total assets0.44 %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 investment1.28 %1.29 %1.28 %1.27 %1.26 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment704.40 %591.66 %550.14 %539.21 %221.16 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment599.15 %555.27 %533.83 %446.19 %219.22 %
For the three months ended,
3/31/202312/31/20229/30/20226/30/20223/31/2022
Net loan and lease charge-offs$2,842 $908 $1,196 $1,715 $76 
Net loan and lease charge-offs (annualized)/Average loans and leases0.19 %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:3/31/202312/31/20229/30/20226/30/20223/31/2022
Interest income$83,253 $77,401 $66,877 $56,717 $51,198 
Interest expense23,936 15,485 8,627 5,246 4,538 
Net interest income59,317 61,916 58,250 51,471 46,660 
Provision (reversal of provision) for credit losses3,387 5,416 3,558 6,674 (3,450)
Net interest income after provision for credit losses55,930 56,500 54,692 44,797 50,110 
Noninterest income:
Trust fee income1,955 1,808 1,835 1,998 2,102 
Service charges on deposit accounts1,547 1,575 1,522 1,574 1,504 
Investment advisory commission and fee income4,752 5,585 4,199 4,812 5,152 
Insurance commission and fee income6,487 4,424 4,442 4,629 5,570 
Other service fee income3,076 3,236 3,124 3,309 2,756 
Bank owned life insurance income767 1,230 1,153 705 699 
Net gain on sales of investment securities— — — — 30 
Net gain on mortgage banking activities625 436 817 1,230 1,929 
Other income471 2,164 867 741 728 
Total noninterest income19,680 20,458 17,959 18,998 20,470 
Noninterest expense:
Salaries, benefits and commissions31,014 29,028 29,400 29,133 28,245 
Net occupancy2,727 2,551 2,504 2,422 2,716 
Equipment993 977 968 977 982 
Data processing4,029 4,039 3,901 3,708 3,567 
Professional fees1,941 1,829 2,521 2,844 2,138 
Marketing and advertising371 739 605 693 425 
Deposit insurance premiums1,101 708 662 812 893 
Intangible expenses253 301 309 342 341 
Restructuring charges— 184 — — — 
Other expense7,100 6,970 5,795 6,440 6,105 
Total noninterest expense49,529 47,326 46,665 47,371 45,412 
Income before taxes26,081 29,632 25,986 16,424 25,168 
Income tax expense5,047 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 outstanding29,312,265 29,251,293 29,290,829 29,490,154 29,542,467 
Period end shares outstanding29,427,696 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)3/31/202312/31/20229/30/20226/30/20223/31/2022
Return on average assets1.18 %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' equity10.81 %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 income29.2 %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 ratio9.71 %9.81 %9.87 %9.45 %9.35 %
Common equity tier 1 risk-based capital ratio10.43 %10.37 %10.51 %10.62 %11.07 %
Tier 1 risk-based capital ratio10.43 %10.37 %10.51 %10.62 %11.07 %
Total risk-based capital ratio13.78 %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 BasisMarch 31, 2023December 31, 2022
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
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 securities513,594 3,495 2.76 503,451 3,316 2.61 
Federal Home Loan Bank, Federal Reserve Bank and other stock34,742 609 7.11 29,401 493 6.65 
Total interest-earning deposits, investments and other interest-earning assets598,457 4,600 3.12 592,177 4,313 2.89 
Commercial, financial, and agricultural loans991,876 15,538 6.35 1,007,121 14,471 5.70 
Real estate—commercial and construction loans3,342,199 42,421 5.15 3,223,822 39,459 4.86 
Real estate—residential loans1,408,292 15,730 4.53 1,335,220 14,340 4.26 
Loans to individuals27,254 449 6.68 26,772 401 5.94 
Municipal loans and leases*229,955 2,341 4.13 233,684 2,433 4.13 
Lease financings165,314 2,541 6.23 152,962 2,416 6.27 
     Gross loans and leases6,164,890 79,020 5.20 5,979,581 73,520 4.88 
          Total interest-earning assets6,763,347 83,620 5.01 6,571,758 77,833 4.70 
Cash and due from banks58,035 56,428 
Allowance for credit losses, loans and leases(79,977)(75,390)
Premises and equipment, net51,583 50,803 
Operating lease right-of-use assets31,303 30,413 
Other assets394,920 385,369 
      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 savings1,489,129 11,081 3.02 1,365,502 7,670 2.23 
Regular savings985,716 669 0.28 1,045,261 492 0.19 
Time deposits566,308 3,422 2.45 433,010 1,586 1.45 
Total time and interest-bearing deposits3,899,044 18,336 1.91 3,767,785 12,494 1.32 
Short-term borrowings240,318 2,728 4.60 101,126 852 3.34 
Long-term debt112,222 591 2.14 95,000 324 1.35 
Subordinated notes148,319 2,281 6.24 124,250 1,815 5.80 
     Total borrowings500,859 5,600 4.53 320,376 2,991 3.70 
     Total interest-bearing liabilities4,399,903 23,936 2.21 4,088,161 15,485 1.50 
Noninterest-bearing deposits1,935,371 2,070,038 
Operating lease liabilities34,438 33,492 
Accrued expenses and other liabilities60,346 60,498 
     Total liabilities6,430,058 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 stock157,784 157,784 
Additional paid-in capital300,293 300,121 
Retained earnings and other equity331,076 309,287 
     Total shareholders' equity789,153 767,192 
     Total liabilities and shareholders' equity$7,219,211 $7,019,381 
Net interest income$59,684 $62,348 
Net interest spread2.80 3.20 
Effect of net interest-free funding sources0.78 0.56 
Net interest margin3.58 %3.76 %
Ratio of average interest-earning assets to average interest-bearing liabilities153.72 %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 Basis20232022
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
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 securities513,594 3,495 2.76 514,574 2,339 1.84 
Federal Home Loan Bank, Federal Reserve Bank and other stock34,742 609 7.11 27,115 355 5.31 
Total interest-earning deposits, investments and other interest-earning assets598,457 4,600 3.12 1,282,416 3,096 0.98 
Commercial, financial, and agricultural loans991,876 15,538 6.35 919,957 8,162 3.60 
Real estate—commercial and construction loans3,342,199 42,421 5.15 2,904,602 25,820 3.61 
Real estate—residential loans1,408,292 15,730 4.53 1,116,356 9,882 3.59 
Loans to individuals27,254 449 6.68 25,799 238 3.74 
Municipal loans and leases*229,955 2,341 4.13 242,508 2,434 4.07 
Lease financings165,314 2,541 6.23 135,476 2,075 6.21 
     Gross loans and leases6,164,890 79,020 5.20 5,344,698 48,611 3.69 
          Total interest-earning assets6,763,347 83,620 5.01 6,627,114 51,707 3.16 
Cash and due from banks58,035 53,698 
Allowance for credit losses, loans and leases(79,977)(72,067)
Premises and equipment, net51,583 53,948 
Operating lease right-of-use assets31,303 30,394 
Other assets394,920 354,893 
      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 savings1,489,129 11,081 3.02 1,542,581 904 0.24 
Regular savings985,716 669 0.28 1,021,550 238 0.09 
Time deposits566,308 3,422 2.45 473,589 1,306 1.12 
Total time and interest-bearing deposits3,899,044 18,336 1.91 3,919,182 2,891 0.30 
Short-term borrowings240,318 2,728 4.60 17,636 2 0.05 
Long-term debt112,222 591 2.14 95,000 317 1.35 
Subordinated notes148,319 2,281 6.24 98,911 1,328 5.45 
     Total borrowings500,859 5,600 4.53 211,547 1,647 3.16 
     Total interest-bearing liabilities4,399,903 23,936 2.21 4,130,729 4,538 0.45 
Noninterest-bearing deposits1,935,371 2,065,633 
Operating lease liabilities34,438 33,452 
Accrued expenses and other liabilities60,346 43,808 
     Total liabilities6,430,058 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 stock157,784 157,784 
Additional paid-in capital300,293 298,975 
Retained earnings and other equity331,076 317,599 
     Total shareholders' equity789,153 774,358 
     Total liabilities and shareholders' equity$7,219,211 $7,047,980 
Net interest income$59,684 $47,169 
Net interest spread2.80 2.71 
Effect of net interest-free funding sources0.78 0.18 
Net interest margin3.58 %2.89 %
Ratio of average interest-earning assets to average interest-bearing liabilities153.72 %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 DescriptionTotal Outstanding Balance % of Commercial Loan Portfolio
CRE - Retail$443,932 8.8 %
Animal Production341,832 6.8 
CRE - Office308,583 6.1 
CRE - Multi-family294,816 5.8 
CRE - 1-4 Family Residential Investment269,295 5.3 
Hotels & Motels (Accommodation)207,019 4.1 
CRE - Industrial / Warehouse199,372 4.0 
Nursing and Residential Care Facilities165,160 3.3 
Homebuilding (tract developers, remodelers)156,753 3.1 
Education155,441 3.1 
Specialty Trade Contractors149,939 3.0 
Merchant Wholesalers, Durable Goods128,837 2.6 
Motor Vehicle and Parts Dealers123,448 2.5 
CRE - Mixed-Use - Residential111,124 2.2 
Crop Production93,487 1.9 
Administrative and Support Services85,589 1.7 
Rental and Leasing Services79,800 1.6 
Wood Product Manufacturing78,939 1.6 
CRE - Mixed-Use - Commercial78,628 1.6 
Real Estate Lenders, Secondary Market Financing76,798 1.5 
Religious Organizations, Advocacy Groups74,590 1.5 
Fabricated Metal Product Manufacturing70,896 1.4 
Merchant Wholesalers, Nondurable Goods68,129 1.3 
Food Services and Drinking Places66,605 1.3 
Food Manufacturing66,425 1.3 
Personal and Laundry Services64,434 1.3 
Amusement, Gambling, and Recreation Industries61,295 1.2 
Repair and Maintenance56,749 1.1 
Miniwarehouse / Self-Storage56,336 1.1 
Private Equity & Special Purpose Entities (excluding Trusts, Estates and Agency Accounts)54,918 1.1 
Truck Transportation52,263 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 FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$779,557 
Real Estate-Home Equity Secured for Personal Purpose172,073 
Loans to Individuals28,656 
Lease Financings223,481 
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)3/31/202312/31/20229/30/20226/30/20223/31/2022
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 tax200 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