0000102212FALSE00001022122024-01-242024-01-24

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): January 24, 2024
 _______________________ 
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 classTrading SymbolName of exchange on which registered
Common Stock, $5 par valueUVSPThe 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 2.02Results of Operations and Financial Condition
On January 24, 2024, Univest Financial Corporation (the “Corporation”), parent company of Univest Bank and Trust Co. (the "Bank"), issued a press release reporting 2023 fourth quarter and full year earnings. A copy of this press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 9.01Financial Statements and Exhibits
(a) Not applicable
(b) Not applicable
(c) Not applicable
(d) Exhibits
Exhibit No.  Description of Document
99.1  
104The 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
January 25, 2024


EXHIBIT INDEX
 
Exhibit No.  Description of Document
99.1  
104The cover page from the Corporation's Form 8-K, formatted in Inline XBRL



Exhibit 99.1
NEWS
logoa.jpg

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

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION
REPORTS FOURTH QUARTER and 2023 RESULTS


SOUDERTON, Pa., January 24, 2024 - 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 December 31, 2023 was $16.3 million, or $0.55 diluted earnings per share, compared to net income of $23.8 million, or $0.81 diluted earnings per share, for the quarter ended December 31, 2022.

Loans
Gross loans and leases decreased $7.7 million, or 0.1% (0.5% annualized), from September 30, 2023, primarily due to decreases in commercial and construction loans. Gross loans and leases increased $444.0 million, or 7.3%, from December 31, 2022, primarily due to increases in commercial real estate, residential mortgage loans and lease financings.
Deposits and Liquidity
Total deposits decreased $63.4 million, or 1.0% (3.9% annualized), from September 30, 2023, due to decreases in commercial, public funds and brokered deposits, partially offset by an increase in consumer deposits. Total deposits increased $462.3 million, or 7.8%, from December 31, 2022, primarily due to increases in public funds and brokered deposits partially, offset by decreases in commercial and consumer deposits. Noninterest-bearing deposits represented 23.0% of total deposits at December 31, 2023, up from 22.2% at September 30, 2023. At December 31, 2023, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, represented 23.3% of total deposits, up from 20.8% at September 30, 2023.



As of December 31, 2023, the Corporation had cash and cash equivalents totaling $249.8 million. The Corporation and its subsidiaries had committed borrowing capacity of $3.4 billion at December 31, 2023, of which $1.9 billion was available. The Corporation and its subsidiaries also maintained unused uncommitted funding sources from correspondent banks of $369.0 million at December 31, 2023. 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 $52.8 million for the three months ended December 31, 2023 decreased $830 thousand, or 1.5%, from the three months ended September 30, 2023, and $9.2 million, or 14.8%, from the three months ended December 31, 2022. The decrease in net interest income was due to increases in the cost of funds and the average balance of interest-bearing liabilities, partially offset by an increase in the yield and average balance of interest-earning assets.

Net interest margin, on a tax-equivalent basis, was 2.84% for the fourth quarter of 2023, compared to 2.96% for the third quarter of 2023 and 3.76% for the fourth quarter of 2022. Excess liquidity reduced net interest margin by approximately ten basis points for the quarter ended December 31, 2023 compared to approximately four basis points for the quarter ended September 30, 2023 and approximately one basis point for the quarter ended December 31, 2022.

Noninterest Income
Noninterest income for the quarter ended December 31, 2023 was $18.6 million, a decrease of $1.8 million, or 9.0%, from the comparable period in the prior year.

Investment advisory commission and fee income decreased $1.0 million, or 18.3%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year. This decrease was primarily driven by a $1.2 million adjustment recorded in the fourth quarter of 2022 for previously unrecorded revenue.

Bank owned life insurance ("BOLI") decreased $407 thousand, or 33.1%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to a death benefit claim of $526 thousand received in the fourth quarter of 2022.

Other income decreased $1.2 million, or 55.6%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to a $1.5 million decrease in interest rate swap income.



Net gain on mortgage banking activities increased $373 thousand, or 85.6%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to increased salable volume.

Noninterest Expense
Noninterest expense for the quarter ended December 31, 2023 was $49.0 million, an increase of $1.7 million, or 3.6%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $293 thousand, or 1.0%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year. The increase reflects our expansion into Maryland and Western Pennsylvania, increased medical claims expense and reduced capitalized compensation, driven by lower loan production. These increases were partially offset by decreases due to the staff reduction that was announced during the second quarter of 2023 and a reduction in incentive compensation due to decreased profitability in current the year.

Deposit insurance premiums increased $642 thousand, or 90.7%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily driven by an increased industry-wide assessment rate and an increase in our assessment base. Data processing increased $405 thousand, or 10.0%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to our investments in technology in recent years and general price increases incurred in the second half of 2023. Other expense increased $343 thousand, or 4.9%, for the quarter ended December 31, 2023 compared to the comparable period in the prior year, primarily due to increases in retirement plan costs of $236 thousand.

Tax Provision
The effective income tax rate was 20.3% for the quarter ended December 31, 2023, compared to an effective tax rate of 19.6% for the quarter ended December 31, 2022. The effective tax rates for the quarters ended December 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 $40.1 million at December 31, 2023 and September 30, 2023 and $33.5 million at December 31, 2022.

Net loan and lease charge-offs were $1.1 million for the three months ended December 31, 2023 compared to $969 thousand and $908 thousand for the three months ended September 30, 2023 and December 31, 2022, respectively. Net loan and lease charge-offs were $5.4 million and $3.9 million for


the years ended December 31, 2023 and December 31, 2022, respectively.

The provision for credit losses was $1.9 million for the three months ended December 31, 2023 compared to $2.0 million and $5.4 million for the three months ended September 30, 2023 and December 31, 2022, respectively. The provision for credit losses was $10.8 million for the year ended December 31, 2023 compared to $12.2 million for the year ended December 31, 2022. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.30% at December 31, 2023 compared to 1.28% at September 30, 2023 and 1.29% December 31, 2022.

Dividend
On January 24, 2024, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 21, 2024 to shareholders of record as of February 7, 2024.

Conference Call
Univest will host a conference call to discuss fourth quarter 2023 results on Thursday, January 25, 2024 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=bfe2e840&confId=59386. The general public can access the call by dialing 1-833-470-1428; using Access Code 989044. A replay of the conference call will be available through February 22, 2024 by dialing 1-866-813-9403; using Access Code 607497.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.8 billion in assets and $4.7 billion in assets under management and supervision through its Wealth Management lines of business at December 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 of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs; (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 and 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) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (9) technological issues that may adversely affect our operations or those of our customers; (10) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (11) changes in the securities markets; (12) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (13) our ability to enter into new markets successfully and capitalize on growth opportunities and/or (14) 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)
December 31, 2023
(Dollars in thousands)
Balance Sheet (Period End)12/31/20239/30/20236/30/20233/31/202312/31/2022
ASSETS
Cash and due from banks $72,815 $68,900 $80,795 $71,215 $84,176 
Interest-earning deposits with other banks 176,984 221,441 59,616 67,109 68,623 
Cash and cash equivalents249,799 290,341 140,411 138,324 152,799 
Investment securities held-to-maturity145,777 149,451 153,509 151,347 154,727 
Investment securities available for sale, net of allowance for credit losses351,553 334,538 356,164 367,656 350,256 
Investments in equity securities3,293 4,054 3,443 3,105 2,579 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost40,499 42,417 42,811 43,792 33,841 
Loans held for sale11,637 16,473 29,526 5,425 5,037 
Loans and leases held for investment6,567,214 6,574,958 6,462,238 6,239,804 6,123,230 
Less: Allowance for credit losses, loans and leases (85,387)(83,837)(82,709)(80,034)(79,004)
Net loans and leases held for investment6,481,827 6,491,121 6,379,529 6,159,770 6,044,226 
Premises and equipment, net 51,441 51,287 52,058 52,334 50,939 
Operating lease right-of-use assets31,795 31,053 30,237 31,663 30,059 
Goodwill175,510 175,510 175,510 175,510 175,510 
Other intangibles, net of accumulated amortization10,950 11,079 10,923 11,044 11,384 
Bank owned life insurance131,344 130,522 129,715 128,926 120,297 
Accrued interest and other assets 91,793 100,220 96,314 90,095 90,362 
Total assets $7,777,218 $7,828,066 $7,600,150 $7,358,991 $7,222,016 
LIABILITIES
Noninterest-bearing deposits$1,468,320 $1,432,559 $1,582,767 $1,799,225 $2,047,263 
Interest-bearing deposits:4,907,461 5,006,606 4,404,635 4,035,432 3,866,263 
Total deposits 6,375,781 6,439,165 5,987,402 5,834,657 5,913,526 
Short-term borrowings6,306 14,676 244,666 271,881 197,141 
Long-term debt 310,000 320,000 320,000 220,000 95,000 
Subordinated notes 148,761 148,636 148,510 148,385 148,260 
Operating lease liabilities34,851 34,017 33,428 34,846 33,153 
Accrued expenses and other liabilities 62,311 64,374 60,922 50,726 58,436 
Total liabilities 6,938,010 7,020,868 6,794,928 6,560,495 6,445,516 
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 capital301,066 300,171 299,212 298,167 300,808 
Retained earnings474,691 464,634 453,806 443,493 428,637 
Accumulated other comprehensive loss, net of tax benefit(50,646)(71,586)(61,034)(55,550)(62,104)
Treasury stock, at cost(43,687)(43,805)(44,546)(45,398)(48,625)
Total shareholders’ equity839,208 807,198 805,222 798,496 776,500 
Total liabilities and shareholders’ equity$7,777,218 $7,828,066 $7,600,150 $7,358,991 $7,222,016 
For the three months ended,For the twelve months ended,
Balance Sheet (Average)12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Assets$7,865,523 $7,693,983 $7,440,798 $7,219,211 $7,019,381 $7,557,030 $6,956,292 
Investment securities, net of allowance for credit losses489,587 506,341 518,995 515,880 505,717 507,625 515,192 
Loans and leases, gross6,594,233 6,537,169 6,372,342 6,164,890 5,979,581 6,418,664 5,651,265 
Deposits6,470,141 6,222,710 5,844,582 5,834,415 5,837,823 6,095,058 5,841,832 
Shareholders' equity814,941 811,515 806,709 789,153 767,192 805,667 771,499 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
December 31, 2023
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)12/31/20239/30/20236/30/20233/31/202312/31/2022
Commercial, financial and agricultural$989,723 $1,050,004 $1,039,265 $1,032,753 $1,088,928 
Real estate-commercial3,302,798 3,275,140 3,221,993 3,128,210 3,027,955 
Real estate-construction394,462 427,561 413,404 376,569 381,811 
Real estate-residential secured for business purpose517,002 516,471 517,521 498,505 478,254 
Real estate-residential secured for personal purpose909,015 861,122 832,632 779,557 730,395 
Real estate-home equity secured for personal purpose179,282 176,855 175,090 172,073 176,699 
Loans to individuals27,749 27,331 25,544 28,656 27,873 
Lease financings247,183 240,474 236,789 223,481 211,315 
Total loans and leases held for investment, net of deferred income6,567,214 6,574,958 6,462,238 6,239,804 6,123,230 
Less: Allowance for credit losses, loans and leases(85,387)(83,837)(82,709)(80,034)(79,004)
Net loans and leases held for investment$6,481,827 $6,491,121 $6,379,529 $6,159,770 $6,044,226 
Asset Quality Data (Period End)12/31/20239/30/20236/30/20233/31/202312/31/2022
Nonaccrual loans and leases, including nonaccrual loans held for sale*$20,527 $18,085 $15,087 $11,362 $13,353 
Accruing loans and leases 90 days or more past due534 2,135 55 1,996 875 
Total nonperforming loans and leases21,061 20,220 15,142 13,358 14,228 
Other real estate owned19,032 19,916 19,345 19,000 19,258 
Total nonperforming assets$40,093 $40,136 $34,487 $32,358 $33,486 
Nonaccrual loans and leases / Loans and leases held for investment0.31 %0.28 %0.23 %0.18 %0.22 %
Nonperforming loans and leases / Loans and leases held for investment0.32 %0.31 %0.23 %0.21 %0.23 %
Nonperforming assets / Total assets0.52 %0.51 %0.45 %0.44 %0.46 %
Allowance for credit losses, loans and leases$85,387 $83,837 $82,709 $80,034 $79,004 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.30 %1.28 %1.28 %1.28 %1.29 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases415.97 %463.57 %548.21 %704.40 %591.66 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases405.43 %414.62 %546.22 %599.15 %555.27 %
*Includes a $5.8 million loan held for sale at September 30, 2023.
For the three months ended,For the twelve months ended,
12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Net loan and lease charge-offs$1,074 $969 $512 $2,842 $908 $5,397 $3,895 
Net loan and lease charge-offs (annualized)/Average loans and leases0.06 %0.06 %0.03 %0.19 %0.06 %0.08 %0.07 %


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2023
(Dollars in thousands, except per share data)
For the three months ended,For the twelve months ended,
For the period:12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Interest income$101,232 $97,106 $90,139 $83,253 $77,401 $371,730 $252,193 
Interest expense48,472 43,516 35,809 23,936 15,485 151,733 33,896 
Net interest income52,760 53,590 54,330 59,317 61,916 219,997 218,297 
Provision for credit losses1,931 2,024 3,428 3,387 5,416 10,770 12,198 
Net interest income after provision for credit losses50,829 51,566 50,902 55,930 56,500 209,227 206,099 
Noninterest income:
Trust fee income1,943 1,910 1,924 1,955 1,808 7,732 7,743 
Service charges on deposit accounts1,960 1,816 1,725 1,547 1,575 7,048 6,175 
Investment advisory commission and fee income4,561 4,843 4,708 4,752 5,585 18,864 19,748 
Insurance commission and fee income4,596 4,852 5,108 6,487 4,424 21,043 19,065 
Other service fee income2,967 3,020 3,318 3,076 3,236 12,381 12,425 
Bank owned life insurance income823 806 789 767 1,230 3,185 3,787 
Net gain on sales of investment securities— — — — — — 30 
Net gain on mortgage banking activities809 1,216 1,039 625 436 3,689 4,412 
Other income961 228 1,222 471 2,164 2,882 4,500 
Total noninterest income18,620 18,691 19,833 19,680 20,458 76,824 77,885 
Noninterest expense:
Salaries, benefits and commissions29,321 29,978 29,875 31,014 29,028 120,188 115,806 
Net occupancy2,751 2,594 2,614 2,727 2,551 10,686 10,193 
Equipment1,066 1,087 986 993 977 4,132 3,904 
Data processing4,444 4,189 4,137 4,029 4,039 16,799 15,215 
Professional fees1,768 1,763 1,669 1,941 1,829 7,141 9,332 
Marketing and advertising632 555 622 371 739 2,180 2,462 
Deposit insurance premiums1,350 1,258 1,116 1,101 708 4,825 3,075 
Intangible expenses212 220 253 253 301 938 1,293 
Restructuring charges189 — 1,330 — 184 1,519 184 
Other expense7,313 7,344 7,197 7,100 6,970 28,954 25,310 
Total noninterest expense49,046 48,988 49,799 49,529 47,326 197,362 186,774 
Income before taxes20,403 21,269 20,936 26,081 29,632 88,689 97,210 
Income tax expense4,149 4,253 4,136 5,047 5,796 17,585 19,090 
Net income$16,254 $17,016 $16,800 $21,034 $23,836 $71,104 $78,120 
Net income per share:
Basic$0.55 $0.58 $0.57 $0.72 $0.82 $2.42 $2.66 
Diluted$0.55 $0.58 $0.57 $0.71 $0.81 $2.41 $2.64 
Dividends declared per share$0.21 $0.21 $0.21 $0.21 $0.21 $0.84 $0.83 
Weighted average shares outstanding29,500,147 29,479,066 29,439,392 29,312,265 29,251,293 29,433,359 29,392,606 
Period end shares outstanding29,511,721 29,508,128 29,471,124 29,427,696 29,271,915 29,511,721 29,271,915 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2023
For the three months ended,For the twelve months ended,
Profitability Ratios (annualized)12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Return on average assets0.82 %0.88 %0.91 %1.18 %1.35 %0.94 %1.12 %
Return on average assets, excluding restructuring charges (1)0.83 %0.88 %0.96 %1.18 %1.36 %0.96 %1.13 %
Return on average shareholders' equity7.91 %8.32 %8.35 %10.81 %12.33 %8.83 %10.13 %
Return on average shareholders' equity, excluding restructuring charges (1)7.99 %8.32 %8.88 %10.81 %12.40 %8.97 %10.14 %
Return on average tangible common equity (1)(3)10.23 %10.77 %10.85 %14.11 %16.23 %11.45 %13.36 %
Return on average tangible common equity, excluding restructuring charges (1)(3)10.32 %10.77 %11.52 %14.11 %16.33 %11.64 %13.39 %
Net interest margin (FTE)2.84 %2.96 %3.14 %3.58 %3.76 %3.12 %3.38 %
Efficiency ratio (2)68.3 %67.3 %66.7 %62.2 %56.9 %66.0 %62.4 %
Efficiency ratio, excluding restructuring charges (1)(2)68.0 %67.3 %64.9 %62.2 %56.7 %65.5 %62.4 %
Capitalization Ratios
Dividends declared to net income38.1 %36.4 %36.8 %29.2 %25.8 %34.8 %31.2 %
Shareholders' equity to assets (Period End)10.79 %10.31 %10.59 %10.85 %10.75 %10.79 %10.75 %
Tangible common equity to tangible assets (1)8.70 %8.22 %8.45 %8.63 %8.49 %8.70 %8.49 %
Common equity book value per share$28.44 $27.36 $27.32 $27.13 $26.53 $28.44 $26.53 
Tangible common equity book value per share (1)$22.41 $21.32 $21.27 $21.07 $20.42 $22.41 $20.42 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.36 %9.43 %9.59 %9.71 %9.81 %9.36 %9.81 %
Common equity tier 1 risk-based capital ratio10.61 %10.32 %10.26 %10.43 %10.37 %10.61 %10.37 %
Tier 1 risk-based capital ratio10.61 %10.32 %10.26 %10.43 %10.37 %10.61 %10.37 %
Total risk-based capital ratio13.93 %13.58 %13.54 %13.78 %13.67 %13.93 %13.67 %
(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 BasisDecember 31, 2023September 30, 2023
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$280,693 $3,804 5.38 %$143,109 $1,865 5.17 %
Obligations of state and political subdivisions*2,277 14 2.44 2,281 16 2.78 
Other debt and equity securities487,310 3,678 2.99 504,060 3,540 2.79 
Federal Home Loan Bank, Federal Reserve Bank and other stock41,361 767 7.36 40,406 712 6.99 
Total interest-earning deposits, investments and other interest-earning assets811,641 8,263 4.04 689,856 6,133 3.53 
Commercial, financial, and agricultural loans973,450 17,485 7.13 995,355 17,545 6.99 
Real estate—commercial and construction loans3,590,477 50,715 5.60 3,552,709 49,548 5.53 
Real estate—residential loans1,585,705 19,133 4.79 1,543,360 18,270 4.70 
Loans to individuals27,667 558 8.00 26,538 525 7.85 
Municipal loans and leases*230,394 2,438 4.20 234,685 2,430 4.11 
Lease financings186,540 2,897 6.16 184,522 2,928 6.30 
     Gross loans and leases6,594,233 93,226 5.61 6,537,169 91,246 5.54 
          Total interest-earning assets7,405,874 101,489 5.44 7,227,025 97,379 5.35 
Cash and due from banks54,981 62,673 
Allowance for credit losses, loans and leases(84,386)(83,827)
Premises and equipment, net51,489 52,071 
Operating lease right-of-use assets31,251 31,647 
Other assets406,314 404,394 
      Total assets$7,865,523 $7,693,983 
Liabilities:
Interest-bearing checking deposits$1,193,386 $8,409 2.80 %$1,070,063 $6,703 2.49 %
Money market savings1,845,153 21,133 4.54 1,645,210 17,850 4.30 
Regular savings784,937 874 0.44 828,672 861 0.41 
Time deposits1,188,054 12,748 4.26 1,140,622 11,668 4.06 
Total time and interest-bearing deposits5,011,530 43,164 3.42 4,684,567 37,082 3.14 
Short-term borrowings9,814 1 0.04 93,028 1,117 4.76 
Long-term debt318,805 3,026 3.77 320,000 3,036 3.76 
Subordinated notes148,693 2,281 6.09 148,568 2,281 6.09 
     Total borrowings477,312 5,308 4.41 561,596 6,434 4.55 
     Total interest-bearing liabilities5,488,842 48,472 3.50 5,246,163 43,516 3.29 
Noninterest-bearing deposits1,458,610 1,538,143 
Operating lease liabilities34,255 34,788 
Accrued expenses and other liabilities68,875 63,374 
     Total liabilities7,050,582 6,882,468 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,947,452 2.77 6,784,306 2.54 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,558 299,575 
Retained earnings and other equity356,599 354,156 
     Total shareholders' equity814,941 811,515 
     Total liabilities and shareholders' equity$7,865,523 $7,693,983 
Net interest income$53,017 $53,863 
Net interest spread1.94 2.06 
Effect of net interest-free funding sources0.90 0.90 
Net interest margin2.84 %2.96 %
Ratio of average interest-earning assets to average interest-bearing liabilities134.93 %137.76 %
*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 $428 thousand and $563 thousand for the three months ended December 31, 2023 and September 30, 2023.
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 December 31, 2023 and September 30, 2023 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 December 31,
Tax Equivalent Basis20232022
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$280,693 $3,804 5.38 %$57,059 $487 3.39 %
Obligations of state and political subdivisions*2,277 14 2.44 2,266 17 2.98 
Other debt and equity securities487,310 3,678 2.99 503,451 3,316 2.61 
Federal Home Loan Bank, Federal Reserve Bank and other stock41,361 767 7.36 29,401 493 6.65 
Total interest-earning deposits, investments and other interest-earning assets811,641 8,263 4.04 592,177 4,313 2.89 
Commercial, financial, and agricultural loans973,450 17,485 7.13 1,007,121 14,471 5.70 
Real estate—commercial and construction loans3,590,477 50,715 5.60 3,223,822 39,459 4.86 
Real estate—residential loans1,585,705 19,133 4.79 1,335,220 14,340 4.26 
Loans to individuals27,667 558 8.00 26,772 401 5.94 
Municipal loans and leases*230,394 2,438 4.20 233,684 2,433 4.13 
Lease financings186,540 2,897 6.16 152,962 2,416 6.27 
     Gross loans and leases6,594,233 93,226 5.61 5,979,581 73,520 4.88 
          Total interest-earning assets7,405,874 101,489 5.44 6,571,758 77,833 4.70 
Cash and due from banks54,981 56,428 
Allowance for credit losses, loans and leases(84,386)(75,390)
Premises and equipment, net51,489 50,803 
Operating lease right-of-use assets31,251 30,413 
Other assets406,314 385,369 
      Total assets$7,865,523 $7,019,381 
Liabilities:
Interest-bearing checking deposits$1,193,386 $8,409 2.80 %$924,012 $2,746 1.18 %
Money market savings1,845,153 21,133 4.54 1,365,502 7,670 2.23 
Regular savings784,937 874 0.44 1,045,261 492 0.19 
Time deposits1,188,054 12,748 4.26 433,010 1,586 1.45 
Total time and interest-bearing deposits5,011,530 43,164 3.42 3,767,785 12,494 1.32 
Short-term borrowings9,814 1 0.04 101,126 852 3.34 
Long-term debt318,805 3,026 3.77 95,000 324 1.35 
Subordinated notes148,693 2,281 6.09 124,250 1,815 5.80 
     Total borrowings477,312 5,308 4.41 320,376 2,991 3.70 
     Total interest-bearing liabilities5,488,842 48,472 3.50 4,088,161 15,485 1.50 
Noninterest-bearing deposits1,458,610 2,070,038 
Operating lease liabilities34,255 33,492 
Accrued expenses and other liabilities68,875 60,498 
     Total liabilities7,050,582 6,252,189 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,947,452 2.77 6,158,199 1.00 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital300,558 300,121 
Retained earnings and other equity356,599 309,287 
     Total shareholders' equity814,941 767,192 
     Total liabilities and shareholders' equity$7,865,523 $7,019,381 
Net interest income$53,017 $62,348 
Net interest spread1.94 3.20 
Effect of net interest-free funding sources0.90 0.56 
Net interest margin2.84 %3.76 %
Ratio of average interest-earning assets to average interest-bearing liabilities134.93 %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 adjustments.
Net interest income includes net deferred costs amortization of $428 thousand and $516 thousand for the three months ended December 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 December 31, 2023 and 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 Twelve Months Ended December 31,
Tax Equivalent Basis20232022
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$130,309 $6,660 5.11 %$325,875 $1,920 0.59 %
U.S. government obligations— — — 1,929 40 2.07 
Obligations of state and political subdivisions*2,282 62 2.72 2,302 71 3.08 
Other debt and equity securities505,343 14,225 2.81 510,961 11,392 2.23 
Federal Home Loan Bank, Federal Reserve Bank and other stock40,092 2,869 7.16 27,784 1,627 5.86 
Total interest-earning deposits, investments and other interest-earning assets678,026 23,816 3.51 868,851 15,050 1.73 
Commercial, financial, and agricultural loans991,505 67,487 6.81 963,755 43,861 4.55 
Real estate—commercial and construction loans3,483,576 188,644 5.42 3,060,689 127,906 4.18 
Real estate—residential loans1,505,799 70,349 4.67 1,219,275 47,472 3.89 
Loans to individuals27,063 2,011 7.43 26,642 1,325 4.97 
Municipal loans and leases*232,501 9,597 4.13 236,858 9,703 4.10 
Lease financings178,220 11,025 6.19 144,046 8,791 6.10 
     Gross loans and leases6,418,664 349,113 5.44 5,651,265 239,058 4.23 
          Total interest-earning assets7,096,690 372,929 5.25 6,520,116 254,108 3.90 
Cash and due from banks58,593 57,196 
Allowance for credit losses, loans and leases(82,474)(72,069)
Premises and equipment, net51,921 51,362 
Operating lease right-of-use assets31,351 30,443 
Other assets400,949 369,244 
      Total assets$7,557,030 $6,956,292 
Liabilities:
Interest-bearing checking deposits$1,034,327 $23,668 2.29 %$884,656 $5,010 0.57 %
Money market savings1,611,169 64,153 3.98 1,389,226 13,835 1.00 
Regular savings871,332 3,249 0.37 1,056,019 1,269 0.12 
Time deposits931,944 34,979 3.75 443,845 5,308 1.20 
Total time and interest-bearing deposits4,448,772 126,049 2.83 3,773,746 25,422 0.67 
Short-term borrowings148,776 7,095 4.77 60,468 1,389 2.30 
Long-term debt263,877 9,464 3.59 95,000 1,287 1.35 
Subordinated notes148,507 9,125 6.14 105,356 5,798 5.50 
     Total borrowings561,160 25,684 4.58 260,824 8,474 3.25 
     Total interest-bearing liabilities5,009,932 151,733 3.03 4,034,570 33,896 0.84 
Noninterest-bearing deposits1,646,286 2,068,086 
Operating lease liabilities34,474 33,508 
Accrued expenses and other liabilities60,671 48,629 
     Total liabilities6,751,363 6,184,793 
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")6,656,218 2.28 6,102,656 0.56 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital299,804 299,121 
Retained earnings and other equity348,079 314,594 
     Total shareholders' equity805,667 771,499 
     Total liabilities and shareholders' equity$7,557,030 $6,956,292 
Net interest income$221,196 $220,212 
Net interest spread2.22 3.06 
Effect of net interest-free funding sources0.90 0.32 
Net interest margin3.12 %3.38 %
Ratio of average interest-earning assets to average interest-bearing liabilities141.65 %161.61 %
*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 $2.1 million and $1.8 million for the twelve months ended December 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 twelve months ended December 31, 2023 and 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
December 31, 2023
(Dollars in thousands)
Industry DescriptionTotal Outstanding Balance % of Commercial Loan Portfolio
CRE - Retail$469,890 9.0 %
Animal Production361,597 6.9 
CRE - Multi-family320,176 6.2 
CRE - Office299,718 5.8 
CRE - 1-4 Family Residential Investment285,559 5.5 
CRE - Industrial / Warehouse248,611 4.8 
Hotels & Motels (Accommodation)190,639 3.7 
Specialty Trade Contractors164,798 3.2 
Education161,325 3.1 
Homebuilding (tract developers, remodelers)153,239 2.9 
Nursing and Residential Care Facilities150,666 2.9 
Motor Vehicle and Parts Dealers138,581 2.7 
Merchant Wholesalers, Durable Goods118,351 2.3 
CRE - Mixed-Use - Residential110,458 2.1 
Crop Production103,285 2.0 
Repair and Maintenance97,682 1.9 
Wood Product Manufacturing85,292 1.6 
Real Estate Lenders, Secondary Market Financing80,755 1.6 
Rental and Leasing Services79,767 1.5 
Fabricated Metal Product Manufacturing73,545 1.4 
CRE - Mixed-Use - Commercial72,685 1.4 
Religious Organizations, Advocacy Groups72,685 1.4 
Personal and Laundry Services72,117 1.4 
Administrative and Support Services70,754 1.4 
Amusement, Gambling, and Recreation Industries70,686 1.4 
Merchant Wholesalers, Nondurable Goods65,491 1.3 
Food Services and Drinking Places65,143 1.3 
Private Equity & Special Purpose Entities (except 52592)63,447 1.2 
Miniwarehouse / Self-Storage61,964 1.2 
Food Manufacturing59,662 1.1 
Truck Transportation53,306 1.0 
Industries with >$50 million in outstandings$4,421,874 85.0 %
Industries with <$50 million in outstandings $782,111 15.0 %
Total Commercial Loans$5,203,985 100.0 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$909,015 
Real Estate-Home Equity Secured for Personal Purpose179,282 
Loans to Individuals27,749 
Lease Financings247,183 
Total Consumer Loans and Lease Financings$1,363,229 
Total$6,567,214 


Univest Financial Corporation
Non-GAAP Reconciliation
December 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,As of or for the twelve months ended,
(Dollars in thousands)12/31/20239/30/20236/30/20233/31/202312/31/202212/31/202312/31/2022
Restructuring charges (a)$189 $— $1,330 $— $184 $1,519 $184 
Tax effect of restructuring charges(40)— (279)— (39)(319)(39)
Restructuring charges, net of tax$149 $— $1,051 $— $145 $1,200 $145 
Net income$16,254 $17,016 $16,800 $21,034 $23,836 $71,104 $78,120 
Amortization of intangibles, net of tax167 174 200 200 238 741 1,021 
Net income before amortization of intangibles$16,421 $17,190 $17,000 $21,234 $24,074 $71,845 $79,141 
Shareholders' equity$839,208 $807,198 $805,222 $798,496 $776,500 $839,208 $776,500 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,405)(2,558)(2,767)(3,054)(3,251)(2,405)(3,251)
Tangible common equity$661,293 $629,130 $626,945 $619,932 $597,739 $661,293 $597,739 
Total assets$7,777,218 $7,828,066 $7,600,150 $7,358,991 $7,222,016 $7,777,218 $7,222,016 
Goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Other intangibles (b)(2,405)(2,558)(2,767)(3,054)(3,251)(2,405)(3,251)
Tangible assets$7,599,303 $7,649,998 $7,421,873 $7,180,427 $7,043,255 $7,599,303 $7,043,255 
Average shareholders' equity$814,941 $811,515 $806,709 $789,153 $767,192 $805,667 $771,499 
Average goodwill(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)(175,510)
Average other intangibles (b)(2,477)(2,680)(2,924)(3,137)(3,355)(2,802)(3,694)
Average tangible common equity$636,954 $633,325 $628,275 $610,506 $588,327 $627,355 $592,295 
(a) Associated with financial service center optimization and headcount rationalization expense management strategies
(b) Amount does not include mortgage servicing rights


v3.23.4
Cover
Jan. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 24, 2024
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
Univest Financial (NASDAQ:UVSP)
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