Company Overview - Univest (UVSP) is headquartered in Souderton and operates in the Finance sector, with a year-to-date stock price change of 3.46% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.88%, which is higher than the Banks - Northeast industry's yield of 2.69% and the S&P 500's yield of 1.48% [3] Dividend Performance - Univest's current annualized dividend of $0.88 has increased by 4.8% from the previous year [4] - Over the past 5 years, the company has raised its dividend twice, achieving an average annual increase of 1.61% [4] - The current payout ratio is 32%, indicating that the company distributes 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Univest's earnings in 2025 is $2.76 per share, reflecting a year-over-year earnings growth rate of 10.40% [5] Investment Considerations - Univest is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned well in the context of rising interest rates, which typically challenge high-yielding stocks [6]

Company Overview - Univest (UVSP) is headquartered in Souderton and operates as a finance stock with a year-to-date price change of -0.14% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.99%, which is higher than the Banks - Northeast industry's yield of 2.67% and the S&P 500's yield of 1.48% [3] Dividend Performance - The current annualized dividend of $0.88 represents a 4.8% increase from the previous year [4] - Over the past five years, Univest has increased its dividend two times on a year-over-year basis, averaging an annual increase of 1.61% [4] - The company's current payout ratio is 32%, indicating that it pays out 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Univest's earnings per share for 2025 is $2.76, reflecting a year-over-year growth rate of 10.40% [5] - The company is positioned as an attractive dividend play, supported by solid earnings growth prospects [6] Investment Appeal - Univest is considered a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 2 (Buy) [6]

PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Univest Financial Corporation [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements of Univest Financial Corporation, including balance sheets, income statements, comprehensive income statements, statements of changes in shareholders' equity, and cash flow statements, along with detailed notes. These statements provide a snapshot of the company's financial position and performance for the three and six months ended June 30, 2025, and comparable prior periods [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's financial position, including assets, liabilities, and shareholders' equity, at specific reporting dates | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | **Assets** | | | | Cash and cash equivalents | $160,365 | $328,844 | | Total assets | $7,939,056 | $8,128,417 | | **Liabilities** | | | | Total deposits | $6,582,660 | $6,759,259 | | Total liabilities | $7,022,323 | $7,241,116 | | **Shareholders' Equity** | | | | Total shareholders' equity | $916,733 | $887,301 | - Total assets decreased by **$189.36 million (2.3%)** from December 31, 2024, primarily due to a significant decrease in cash and cash equivalents[10](index=10&type=chunk)[186](index=186&type=chunk) - Total liabilities decreased by **$218.79 million (3.0%)**, mainly driven by a reduction in total deposits and long-term debt[10](index=10&type=chunk)[200](index=200&type=chunk) - Total shareholders' equity increased by **$29.43 million (3.3%)**, primarily due to an increase in retained earnings and a decrease in accumulated other comprehensive loss[10](index=10&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This statement details the company's revenues, expenses, and net income over specific reporting periods | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Total interest income | $105,706 | $99,832 | $209,122 | $198,441 | | Total interest expense | $46,165 | $48,805 | $92,800 | $95,947 | | Net interest income | $59,541 | $51,027 | $116,322 | $102,494 | | Provision for credit losses | $5,694 | $707 | $8,005 | $2,139 | | Total noninterest income | $21,501 | $20,980 | $43,916 | $46,575 | | Total noninterest expense | $50,332 | $48,708 | $99,660 | $98,782 | | Net income | $19,978 | $18,107 | $42,373 | $38,412 | | Basic EPS | $0.69 | $0.62 | $1.46 | $1.31 | | Diluted EPS | $0.69 | $0.62 | $1.45 | $1.30 | - Net income increased by **10.3%** for both the three and six months ended June 30, 2025, compared to the prior year periods, reaching **$19.98 million** and **$42.37 million**, respectively[12](index=12&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) - Diluted EPS increased by **11.3% to $0.69** for the three months and **11.5% to $1.45** for the six months ended June 30, 2025, year-over-year[12](index=12&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement reports net income and other comprehensive income components, providing a complete view of changes in equity from non-owner sources | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net income | $19,978 | $18,107 | $42,373 | $38,412 | | Other comprehensive income (loss), net of tax | $2,953 | $616 | $9,023 | $(3,478) | | Total comprehensive income | $22,931 | $18,723 | $51,396 | $34,934 | - Total comprehensive income significantly increased for both periods, reaching **$22.93 million** (3 months) and **$51.40 million** (6 months) in 2025, driven by net income growth and positive other comprehensive income[13](index=13&type=chunk)[16](index=16&type=chunk) - Other comprehensive income, net of tax, showed a substantial positive change, moving from a loss of **$3.48 million** in the six months ended June 30, 2024, to a gain of **$9.02 million** in the same period of 2025, primarily due to net unrealized gains on available-for-sale investment securities[16](index=16&type=chunk)[205](index=205&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This statement outlines changes in each component of shareholders' equity, including net income, dividends, and other comprehensive income | Metric | Balance at Dec 31, 2024 (Thousands) | Net Income (Thousands) | Other Comprehensive Income (Loss) (Thousands) | Cash Dividends Declared (Thousands) | Purchases of Treasury Stock (Thousands) | Balance at June 30, 2025 (Thousands) | | :----------------------------------- | :---------------------------------- | :--------------------- | :-------------------------------------------- | :---------------------------------- | :------------------------------------ | :--------------------------------- | | Total shareholders' equity | $887,301 | $42,373 | $9,023 | $(12,441) | $(11,440) | $916,733 | - Shareholders' equity increased by **$29.43 million** from December 31, 2024, to June 30, 2025, primarily driven by net income and other comprehensive income, partially offset by cash dividends and treasury stock repurchases[18](index=18&type=chunk)[205](index=205&type=chunk) - The company repurchased **394,517 shares** of treasury stock at a cost of **$11.44 million** during the six months ended June 30, 2025[18](index=18&type=chunk)[205](index=205&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement categorizes cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash provided by operating activities | $38,858 | $8,157 | | Net cash provided by (used in) investing activities | $24,109 | $(109,061) | | Net cash (used in) provided by financing activities | $(231,446) | $42,016 | | Net decrease in cash and cash equivalents | $(168,479) | $(58,888) | | Cash and cash equivalents at end of period | $160,365 | $190,911 | - Net cash provided by operating activities significantly increased to **$38.86 million** for the six months ended June 30, 2025, compared to **$8.16 million** in the prior year[22](index=22&type=chunk) - Investing activities shifted from a net cash outflow of **$109.06 million** in 2024 to a net cash inflow of **$24.11 million** in 2025, primarily due to changes in loans and leases[22](index=22&type=chunk) - Financing activities resulted in a net cash outflow of **$231.45 million** in 2025, a significant change from the **$42.02 million** inflow in 2024, mainly due to a net decrease in deposits and repayment of long-term debt[22](index=22&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 1. Summary of Significant Accounting Policies](index=10&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods used in preparing the financial statements - The financial statements are prepared in conformity with U.S. GAAP, requiring management estimates, particularly for fair value of available-for-sale investment securities and allowance for credit losses on loans and leases[24](index=24&type=chunk) - The Corporation does not expect recent FASB ASUs (2023-06, 2023-09, 2024-03, 2024-04) to have a material impact on its financial statements[25](index=25&type=chunk)[26](index=26&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 2. Earnings per Share](index=11&type=section&id=Note%202.%20Earnings%20per%20Share) This note provides details on the calculation of basic and diluted earnings per share | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic earnings per share | $0.69 | $0.62 | $1.46 | $1.31 | | Diluted earnings per share | $0.69 | $0.62 | $1.45 | $1.30 | | Weighted-average shares outstanding (basic, thousands) | 28,859 | 29,247 | 28,929 | 29,330 | | Weighted-average shares outstanding (diluted, thousands) | 29,047 | 29,353 | 29,155 | 29,453 | - Basic and diluted EPS increased year-over-year for both the three and six-month periods, reflecting improved net income[31](index=31&type=chunk) [Note 3. Investment Securities](index=12&type=section&id=Note%203.%20Investment%20Securities) This note details the composition, fair value, and unrealized gains or losses of the company's investment securities portfolio | Security Type | Amortized Cost (June 30, 2025, Thousands) | Fair Value (June 30, 2025, Thousands) | Amortized Cost (Dec 31, 2024, Thousands) | Fair Value (Dec 31, 2024, Thousands) | | :----------------------------------- | :---------------------------------------- | :------------------------------------ | :--------------------------------------- | :----------------------------------- | | Held-to-maturity securities | $128,455 | $113,166 | $134,111 | $115,007 | | Available-for-sale securities | $400,676 | $366,421 | $402,651 | $357,361 | | Total | $529,131 | $479,587 | $536,762 | $472,368 | - At June 30, 2025, held-to-maturity securities in an unrealized loss position totaled **$111.9 million** (unrealized losses of **$15.3 million**), primarily federal agency mortgage-backed securities[37](index=37&type=chunk) - Available-for-sale securities in an unrealized loss position were **$286.5 million** (unrealized losses of **$34.9 million**), mainly federal agency mortgage-backed securities and investment grade corporate bonds[38](index=38&type=chunk) - The allowance for credit losses on available-for-sale corporate bonds decreased from **$(839) thousand** at December 31, 2024, to **$(17) thousand** at June 30, 2025, largely due to a **$719 thousand** reversal on investment grade corporate bonds[40](index=40&type=chunk)[41](index=41&type=chunk) [Note 4. Loans and Leases](index=15&type=section&id=Note%204.%20Loans%20and%20Leases) This note provides a breakdown of the loan and lease portfolio, including asset quality and allowance for credit losses | Loan Category | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Commercial, financial and agricultural | $1,052,246 | $1,037,835 | | Real estate-commercial | $3,485,615 | $3,530,451 | | Real estate-construction | $302,424 | $274,483 | | Real estate-residential secured for business purpose | $535,210 | $536,095 | | Real estate-residential secured for personal purpose | $984,166 | $994,972 | | Real estate-home equity secured for personal purpose | $195,014 | $186,836 | | Loans to individuals | $14,069 | $21,250 | | Lease financings | $232,441 | $244,661 | | Total loans and leases held for investment | $6,801,185 | $6,826,583 | | Less: Allowance for credit losses | $(86,989) | $(87,091) | | Net loans and leases held for investment | $6,714,196 | $6,739,492 | - Total loans and leases held for investment decreased by **$25.4 million (0.4%)** from December 31, 2024, primarily due to decreases in commercial real estate and residential mortgage loans, partially offset by increases in commercial, construction, and home equity loans[43](index=43&type=chunk)[189](index=189&type=chunk) - Nonaccrual loans and leases increased significantly to **$27.91 million** at June 30, 2025, from **$12.67 million** at December 31, 2024, largely due to a **$23.7 million** commercial loan placed on nonaccrual status with a **$7.3 million** charge-off[47](index=47&type=chunk)[172](index=172&type=chunk)[192](index=192&type=chunk) - The allowance for credit losses on loans and leases remained stable at **1.28%** of total loans and leases held for investment at June 30, 2025, and December 31, 2024[173](index=173&type=chunk)[196](index=196&type=chunk) [Note 5. Goodwill and Other Intangible Assets](index=29&type=section&id=Note%205.%20Goodwill%20and%20Other%20Intangible%20Assets) This note details the company's goodwill and other intangible assets, including amortization and impairment information | Intangible Asset Type | Net Carrying Amount (June 30, 2025, Thousands) | Net Carrying Amount (Dec 31, 2024, Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Goodwill | $175,510 | $175,510 | | Core deposit intangibles | $96 | $191 | | Customer related intangibles | $962 | $1,128 | | Servicing rights | $6,909 | $6,990 | | Total amortized intangible assets | $7,967 | $8,309 | - Goodwill remained unchanged at **$175.51 million**, with no impairment recognized during the six months ended June 30, 2025[79](index=79&type=chunk)[199](index=199&type=chunk) - Amortization expense for core deposit and customer-related intangibles was **$261 thousand** for the six months ended June 30, 2025, down from **$350 thousand** in the prior year[198](index=198&type=chunk) - Servicing rights had a net carrying amount of **$6.91 million** at June 30, 2025, with an estimated amortization expense of **$1.12 million** for the remainder of 2025[79](index=79&type=chunk)[81](index=81&type=chunk)[130](index=130&type=chunk) [Note 6. Deposits](index=31&type=section&id=Note%206.%20Deposits) This note provides a breakdown of deposit types, interest rates, and changes in deposit balances | Deposit Type | Amount (June 30, 2025, Thousands) | Weighted Average Interest Rate (June 30, 2025) | Amount (Dec 31, 2024, Thousands) | Weighted Average Interest Rate (Dec 31, 2024) | | :----------------------------------- | :-------------------------------- | :--------------------------------------------- | :------------------------------- | :-------------------------------------------- | | Noninterest-bearing deposits | $1,461,189 | 0.00% | $1,414,635 | 0.00% | | Demand deposits | $2,896,516 | 3.31% | $3,186,597 | 3.25% | | Savings deposits | $723,996 | 0.45% | $704,321 | 0.44% | | Time deposits | $1,500,959 | 4.04% | $1,453,706 | 4.40% | | Total deposits | $6,582,660 | 2.43% | $6,759,259 | 2.52% | - Total deposits decreased by **$176.6 million (2.6%)** from December 31, 2024, primarily due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits[201](index=201&type=chunk) - Noninterest-bearing deposits increased to **$1.46 billion**, representing **22.2%** of total deposits at June 30, 2025, up from **20.9%** at December 31, 2024[201](index=201&type=chunk) - The weighted average interest rate on total deposits decreased to **2.43%** at June 30, 2025, from **2.52%** at December 31, 2024[82](index=82&type=chunk) [Note 7. Borrowings](index=31&type=section&id=Note%207.%20Borrowings) This note details the company's short-term and long-term borrowings, including interest rates and available capacity | Borrowing Type | Balance (June 30, 2025, Thousands) | Weighted Average Interest Rate (June 30, 2025) | Balance (Dec 31, 2024, Thousands) | Weighted Average Interest Rate (Dec 31, 2024) | | :----------------------------------- | :--------------------------------- | :--------------------------------------------- | :-------------------------------- | :-------------------------------------------- | | Short-term borrowings | $6,271 | 0.05% | $11,181 | 0.05% | | Long-term debt (FHLB advances) | $200,000 | 4.20% | $225,000 | 4.35% | | Subordinated notes | $149,511 | 6.08% | $149,261 | 6.08% | - Total borrowings decreased by **$29.7 million (7.7%)** from December 31, 2024, primarily due to **$75.0 million** in maturities of long-term FHLB advances, partially offset by **$50.0 million** in new FHLB advances[202](index=202&type=chunk) - The Corporation had **$2.3 billion** in available borrowing capacity from the FHLB and **$414.5 million** from the Federal Reserve Bank at June 30, 2025[85](index=85&type=chunk)[87](index=87&type=chunk) [Note 8. Retirement Plans and Other Postretirement Benefits](index=32&type=section&id=Note%208.%20Retirement%20Plans%20and%20Other%20Postretirement%20Benefits) This note outlines the costs and obligations associated with the company's retirement and postretirement benefit plans | Metric | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | | Retirement Plans Net periodic benefit (income) cost | $(184) | $86 | | Other Postretirement Benefits Net periodic benefit (income) cost | $27 | $25 | - Net periodic benefit cost for Retirement Plans shifted from an expense of **$86 thousand** in 2024 to an income of **$(184) thousand** in 2025 for the six-month period[91](index=91&type=chunk) - The Corporation expects to contribute **$156 thousand** to Retirement Plans and **$107 thousand** to Other Postretirement Benefit Plans in 2025[92](index=92&type=chunk) [Note 9. Stock-Based Incentive Plan](index=33&type=section&id=Note%209.%20Stock-Based%20Incentive%20Plan) This note describes the company's stock-based compensation arrangements, including expense recognition and outstanding awards | Metric | Six Months Ended June 30, 2025 | | :----------------------------------- | :----------------------------- | | Nonvested stock units at Dec 31, 2024 | 501,679 | | Granted | 196,666 | | Vested | (164,280) | | Nonvested stock units at June 30, 2025 | 531,375 | | Unrecognized compensation cost (thousands) | $8,807 | | Weighted-average period remaining (years) | 2.1 | - Stock-based compensation expense for restricted stock units was **$2.25 million** for the six months ended June 30, 2025, slightly up from **$2.23 million** in the prior year[96](index=96&type=chunk) - The total unrecognized compensation expense related to nonvested restricted stock units was **$8.81 million** at June 30, 2025, with a weighted-average recognition period of **2.1 years**[96](index=96&type=chunk) [Note 10. Accumulated Other Comprehensive (Loss) Income](index=34&type=section&id=Note%2010.%20Accumulated%20Other%20Comprehensive%20(Loss)%20Income) This note details the components of accumulated other comprehensive income (loss) and their changes over the period | Component | Balance, Dec 31, 2024 (Thousands) | Other Comprehensive Income (Loss) (Thousands) | Reclassification Adjustment (Thousands) | Balance, June 30, 2025 (Thousands) | | :----------------------------------- | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------- | | Net Unrealized Losses on Available-for-Sale Investment Securities | $(35,117) | $8,068 | — | $(27,049) | | Net Change Related to Derivatives Used for Cash Flow Hedges | $(2,422) | — | $896 | $(1,526) | | Net Change Related to Defined Benefit Pension Plans | $(6,453) | $59 | — | $(6,394) | | Accumulated Other Comprehensive Loss | $(43,992) | $8,127 | $896 | $(34,969) | - Accumulated other comprehensive loss decreased by **$9.02 million** from December 31, 2024, to June 30, 2025, primarily due to **$8.07 million** in net unrealized gains on available-for-sale investment securities[97](index=97&type=chunk)[205](index=205&type=chunk) [Note 11. Derivative Instruments and Hedging Activities](index=34&type=section&id=Note%2011.%20Derivative%20Instruments%20and%20Hedging%20Activities) This note describes the company's use of derivative instruments and hedging strategies, including their fair values and impact on financial statements | Derivative Type | Notional Amount (June 30, 2025, Thousands) | Fair Value (June 30, 2025, Thousands) | Notional Amount (Dec 31, 2024, Thousands) | Fair Value (Dec 31, 2024, Thousands) | | :----------------------------------- | :--------------------------------------- | :------------------------------------ | :---------------------------------------- | :----------------------------------- | | Credit derivatives | $839,335 | $(79) | $860,423 | $(67) | | Interest rate locks with customers | $31,973 | $359 | $23,291 | $214 | | Forward loan sale commitments | $49,747 | $(51) | $39,944 | $12 | | Total | $921,055 | $229 | $923,658 | $226 | - The Corporation terminated an interest rate swap (cash flow hedge) with a notional amount of **$250.0 million** on August 2, 2024, incurring an unwind fee of **$4.0 million**[99](index=99&type=chunk) - Credit derivatives, not designated as hedging instruments, had a notional amount of **$839.3 million** and a fair value liability of **$79 thousand** at June 30, 2025[101](index=101&type=chunk)[104](index=104&type=chunk) [Note 12. Fair Value Disclosures](index=36&type=section&id=Note%2012.%20Fair%20Value%20Disclosures) This note provides information on the fair value measurements of financial instruments, categorized by valuation input levels | Asset/Liability Type | Level 1 (Thousands) | Level 2 (Thousands) | Level 3 (Thousands) | Total Fair Value (Thousands) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :--------------------------- | | **Assets (June 30, 2025)** | | | | | | Available-for-sale securities | $0 | $366,421 | $0 | $366,421 | | Equity securities | $1,801 | $0 | $0 | $1,801 | | Loans held for sale | $0 | $17,774 | $0 | $17,774 | | Interest rate locks with customers | $0 | $359 | $0 | $359 | | **Liabilities (June 30, 2025)** | | | | | | Credit derivatives | $0 | $0 | $79 | $79 | | Forward loan sale commitments | $0 | $51 | $0 | $51 | | **Assets (Dec 31, 2024)** | | | | | | Available-for-sale securities | $0 | $357,361 | $0 | $357,361 | | Equity securities | $2,506 | $0 | $0 | $2,506 | | Loans held for sale | $0 | $16,653 | $0 | $16,653 | | Interest rate locks with customers | $0 | $214 | $0 | $214 | | Forward loan sale commitments | $0 | $12 | $0 | $12 | | **Liabilities (Dec 31, 2024)** | | | | | | Contingent consideration liability | $0 | $0 | $635 | $635 | | Credit derivatives | $0 | $0 | $67 | $67 | - The Corporation utilizes a fair value hierarchy (Level 1, 2, 3) to measure financial instruments, maximizing observable inputs[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Individually analyzed loans held for investment and other real estate owned are primarily classified within Level 3 due to unobservable inputs[122](index=122&type=chunk)[127](index=127&type=chunk)[132](index=132&type=chunk) - The contingent consideration liability related to the Sheaffer acquisition was fully paid during the six months ended June 30, 2025, resulting in a zero balance[120](index=120&type=chunk)[121](index=121&type=chunk) [Note 13. Segment Reporting](index=43&type=section&id=Note%2013.%20Segment%20Reporting) This note presents financial information for the company's operating segments, including revenues, expenses, and pre-tax income | Segment | Pre-Tax Income (3 Months Ended June 30, 2025, Thousands) | Pre-Tax Income (3 Months Ended June 30, 2024, Thousands) | Pre-Tax Income (6 Months Ended June 30, 2025, Thousands) | Pre-Tax Income (6 Months Ended June 30, 2024, Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Banking | $26,617 | $24,086 | $52,701 | $48,644 | | Wealth Management | $1,776 | $827 | $3,775 | $2,756 | | Insurance | $964 | $1,075 | $3,404 | $4,187 | | Other | $(4,341) | $(3,396) | $(7,307) | $(7,439) | | Consolidated | $25,016 | $22,592 | $52,573 | $48,148 | - The Banking segment's pre-tax income increased by **10.5%** for the three months and **8.3%** for the six months ended June 30, 2025, driven by higher net interest income[138](index=138&type=chunk)[142](index=142&type=chunk)[207](index=207&type=chunk) - Wealth Management pre-tax income grew significantly by **114.7%** (3 months) and **37.0%** (6 months) due to new customer relationships and appreciation of assets under management and supervision, which reached **$5.4 billion** at June 30, 2025[138](index=138&type=chunk)[142](index=142&type=chunk)[208](index=208&type=chunk) - The Insurance segment's pre-tax income decreased by **10.3%** (3 months) and **18.7%** (6 months), primarily due to a **$701 thousand** decrease in contingent income[138](index=138&type=chunk)[142](index=142&type=chunk)[209](index=209&type=chunk) [Note 14. Contingencies](index=46&type=section&id=Note%2014.%20Contingencies) This note discloses potential liabilities arising from legal actions and other contingent events - The Corporation is subject to various legal actions but does not expect them to have a material adverse effect on its operations, financial position, or cash flows[148](index=148&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Corporation's financial performance and condition for the three and six months ended June 30, 2025, compared to the prior year. It covers key financial metrics, asset quality, liquidity, capital adequacy, and segment performance, highlighting the drivers behind changes in net interest income, noninterest income, and expenses [Forward-Looking Statements](index=47&type=section&id=Forward-Looking%20Statements) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties - The report contains forward-looking statements regarding goals, expectations, business plans, financial performance, and risks, which are subject to various business, economic, and competitive uncertainties[150](index=150&type=chunk) - Key risks include operating, legal, and regulatory risks; general economic conditions; legislative and accounting changes; interest rate volatility; and cybersecurity breaches[150](index=150&type=chunk) [Critical Accounting Policies](index=48&type=section&id=Critical%20Accounting%20Policies) This section identifies the accounting policies that require significant judgment and estimation by management - The Corporation identifies fair value measurement of available-for-sale investment securities and the calculation of the allowance for credit losses on loans and leases as critical accounting policies[153](index=153&type=chunk) [General](index=48&type=section&id=General) This section provides an overview of Univest Financial Corporation's business, subsidiaries, and primary revenue sources - Univest Financial Corporation is a Pennsylvania bank holding company, with its primary subsidiary being Univest Bank and Trust Co., offering banking, wealth management, and insurance services[154](index=154&type=chunk)[155](index=155&type=chunk) - Revenues are primarily derived from lending and depository services, as well as fee-based income from trust, insurance, mortgage banking, and investment services[156](index=156&type=chunk) [Executive Overview](index=48&type=section&id=Executive%20Overview) This section summarizes the company's key financial performance metrics and highlights significant changes for the reporting periods | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change Amount | Change Percent | | :----------------------------------- | :------------------------------- | :------------------------------- | :------------ | :------------- | | Net income (thousands) | $19,978 | $18,107 | $1,871 | 10.3% | | Diluted EPS | $0.69 | $0.62 | $0.07 | 11.3% | | Return on average assets | 1.00% | 0.94% | 6 BP | 6.4% | | Return on average equity | 8.82% | 8.62% | 20 BP | 2.3% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Net income (thousands) | $42,373 | $38,412 | $3,961 | 10.3% | | Diluted EPS | $1.45 | $1.30 | $0.15 | 11.5% | | Return on average assets | 1.07% | 1.00% | 7 BP | 7.0% | | Return on average equity | 9.47% | 9.16% | 31 BP | 3.4% | - Net income and diluted EPS increased by **over 10%** for both the three and six-month periods ended June 30, 2025, compared to the prior year[157](index=157&type=chunk)[159](index=159&type=chunk) - Return on average assets and equity also improved, indicating enhanced profitability and efficiency[157](index=157&type=chunk) - Six-month results for 2025 included **$1.1 million** in tax-free bank owned life insurance death benefits, while 2024 included a **$3.4 million** net gain from the sale of mortgage servicing rights[160](index=160&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, focusing on net interest income, noninterest income, and expenses [Net Interest Income](index=49&type=section&id=Net%20Interest%20Income) This section analyzes the components of net interest income, including interest earned on assets and interest paid on liabilities | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Net interest income (tax-equivalent) | $59,957 | $51,311 | $117,124 | $103,061 | | Net interest margin (tax-equivalent) | 3.20% | 2.84% | 3.14% | 2.86% | | Total interest income | $106,122 | $100,116 | $209,924 | $199,008 | | Total interest expense | $46,165 | $48,805 | $92,800 | $95,947 | - Tax-equivalent net interest income increased by **$8.6 million (16.9%)** for the three months and **$14.1 million (13.6%)** for the six months ended June 30, 2025, driven by higher average loan balances and increased yields on interest-earning assets, coupled with a reduction in the overall cost of funds[162](index=162&type=chunk) - The net interest margin (tax-equivalent) improved to **3.20%** (3 months) and **3.14%** (6 months) in 2025, up from **2.84%** and **2.86%** in 2024, respectively[163](index=163&type=chunk) - Interest expense on deposits decreased for both periods, contributing to the improved net interest income[164](index=164&type=chunk)[167](index=167&type=chunk) [Provision for Credit Losses](index=53&type=section&id=Provision%20for%20Credit%20Losses) This section discusses the provision for credit losses and its impact on the allowance for credit losses and asset quality | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Provision for credit losses | $5,694 | $707 | $8,005 | $2,139 | | Allowance for credit losses / loans and leases held for investment | 1.28% | 1.28% | 1.28% | 1.28% | - The provision for credit losses significantly increased to **$5.7 million** (3 months) and **$8.0 million** (6 months) in 2025, primarily due to a **$7.3 million** charge-off on a commercial loan relationship[172](index=172&type=chunk) - Despite the increased provision, the allowance for credit losses as a percentage of loans and leases held for investment remained stable at **1.28%**[173](index=173&type=chunk) [Noninterest Income](index=53&type=section&id=Noninterest%20Income) This section details the various sources of noninterest income, such as service charges, advisory fees, and mortgage banking activities | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------ | :------------- | | Total noninterest income | $21,501 | $20,980 | $521 | 2.5% | | Service charges on deposit accounts | $2,258 | $1,982 | $276 | 13.9% | | Investment advisory commission and fee income | $5,460 | $5,238 | $222 | 4.2% | | Net gain on mortgage banking activities | $981 | $1,710 | $(729) | (42.6%) | | Metric | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :------------ | :------------- | | Total noninterest income | $43,916 | $46,575 | $(2,659) | (5.7%) | | Other service fee income | $5,854 | $9,459 | $(3,605) | (38.1%) | | Bank owned life insurance income | $2,971 | $1,928 | $1,043 | 54.1% | - Total noninterest income increased by **2.5%** for the three months but decreased by **5.7%** for the six months ended June 30, 2025[174](index=174&type=chunk)[175](index=175&type=chunk) - The six-month decrease was primarily due to a **$3.4 million** net gain from the sale of mortgage servicing rights in Q1 2024, which was not repeated in 2025[179](index=179&type=chunk) - Bank owned life insurance income increased by **$1.0 million (54.1%)** for the six months, driven by **$1.1 million** in death benefits claims[180](index=180&type=chunk) [Noninterest Expense](index=54&type=section&id=Noninterest%20Expense) This section analyzes the company's noninterest expenses, including salaries, benefits, and other operating costs | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------ | :------------- | | Total noninterest expense | $50,332 | $48,708 | $1,624 | 3.3% | | Salaries, benefits and commissions | $31,536 | $30,187 | $1,349 | 4.5% | | Metric | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :------------------------------------- | :------------------------------------- | :------------ | :------------- | | Total noninterest expense | $99,660 | $98,782 | $878 | 0.9% | | Salaries, benefits and commissions | $62,362 | $61,525 | $837 | 1.4% | - Total noninterest expense increased by **3.3%** for the three months and **0.9%** for the six months ended June 30, 2025[182](index=182&type=chunk)[183](index=183&type=chunk) - Salaries, benefits, and commissions increased by **$1.3 million (4.5%)** for the three months and **$837 thousand (1.4%)** for the six months, mainly due to higher salaries, medical claims, and variable compensation[184](index=184&type=chunk) [Tax Provision](index=54&type=section&id=Tax%20Provision) This section discusses the income tax expense and the effective tax rate for the reporting periods | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | | :----------------------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------- | :------------------------------------- | | Income tax expense | $5,038 | $4,485 | $10,200 | $9,736 | | Effective tax rate | 20.1% | 19.9% | 19.4% | 20.2% | - The effective tax rate for the six months ended June 30, 2025, was **19.4%**, favorably impacted by tax-exempt income and BOLI death benefits[12](index=12&type=chunk)[185](index=185&type=chunk) [Financial Condition](index=55&type=section&id=Financial%20Condition) This section provides an analysis of the company's balance sheet, including changes in assets, liabilities, and equity [Cash and Interest-Earning Deposits](index=55&type=section&id=Cash%20and%20Interest-Earning%20Deposits) This section details the changes in cash and interest-earning deposit balances and their impact on liquidity | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Cash, interest-earning deposits and federal funds sold | $160,365 | $328,844 | $(168,479) | (51.2%) | - Cash and interest-earning deposits decreased by **$168.5 million (51.2%)** from December 31, 2024, primarily due to a **$174.1 million** decrease in interest-earning deposits at the Federal Reserve Bank[187](index=187&type=chunk) [Investment Securities](index=55&type=section&id=Investment%20Securities) This section analyzes the company's investment securities portfolio, including purchases, sales, and fair value changes | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Investment securities | $496,677 | $493,978 | $2,699 | 0.5% | - Total investment securities increased by **$2.7 million (0.5%)**, driven by **$25.9 million** in purchases (primarily residential mortgage-backed securities) and a **$10.2 million** increase in fair value of available-for-sale securities, partially offset by maturities and sales[188](index=188&type=chunk) [Loans and Leases](index=55&type=section&id=Loans%20and%20Leases) This section discusses the trends and composition of the company's loan and lease portfolio | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Loans and leases held for investment | $6,801,185 | $6,826,583 | $(25,398) | (0.4%) | - Gross loans and leases held for investment decreased by **$25.4 million (0.4%)**, mainly due to decreases in commercial real estate, residential mortgage loans, and lease financings, partially offset by increases in commercial, construction, and home equity loans[189](index=189&type=chunk) [Asset Quality](index=55&type=section&id=Asset%20Quality) This section evaluates the quality of the company's assets, including nonaccrual loans, charge-offs, and other real estate owned | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | | :----------------------------------- | :----------------------------- | :----------------------------- | | Nonaccrual loans and leases held for investment | $27,909 | $12,667 | | Total nonperforming loans and leases | $28,034 | $12,988 | | Total nonperforming assets | $50,585 | $33,205 | | Net loan and lease charge-offs (6 months) | $9,500 | $2,200 | - Nonaccrual loans and leases significantly increased to **$27.9 million** at June 30, 2025, from **$12.7 million** at December 31, 2024, primarily due to a **$23.7 million** commercial loan placed on nonaccrual status[192](index=192&type=chunk) - Net loan and lease charge-offs for the six months ended June 30, 2025, were **$9.5 million**, up from **$2.2 million** in the prior year, largely due to a **$7.3 million** charge-off on the aforementioned commercial loan[194](index=194&type=chunk) - Other real estate owned (OREO) increased to **$22.5 million** at June 30, 2025, from **$20.1 million** at December 31, 2024, including a **$2.5 million** residential real estate loan transferred to OREO[194](index=194&type=chunk) [Goodwill and Other Intangible Assets](index=57&type=section&id=Goodwill%20and%20Other%20Intangible%20Assets) This section provides an update on goodwill and other intangible assets, including any impairment assessments or amortization | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Goodwill and other intangibles, net | $183,477 | $183,819 | $(342) | (0.2%) | - Goodwill remained stable at **$175.5 million**, with no impairment recognized during the six months ended June 30, 2025[199](index=199&type=chunk) - Amortization of core deposit and customer-related intangibles was **$261 thousand** for the six months ended June 30, 2025[198](index=198&type=chunk) [Liabilities](index=58&type=section&id=Liabilities) This section analyzes the overall changes in the company's total liabilities | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Total liabilities | $7,022,323 | $7,241,116 | $(218,793) | (3.0%) | [Deposits](index=58&type=section&id=Deposits) This section details the changes in deposit balances and their composition, including interest-bearing and noninterest-bearing accounts | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Deposits | $6,582,660 | $6,759,259 | $(176,599) | (2.6%) | | Noninterest bearing deposits (% of total) | 22.2% | 20.9% | 1.3% | 6.2% | | Unprotected deposits (% of total) | 23.0% | 22.0% | 1.0% | 4.5% | - Total deposits decreased by **$176.6 million (2.6%)**, primarily due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits[201](index=201&type=chunk) [Borrowings](index=58&type=section&id=Borrowings) This section discusses the company's borrowing activities, including short-term and long-term debt and available capacity | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Short-term borrowings | $6,271 | $11,181 | $(4,910) | (43.9%) | | Long-term debt | $200,000 | $225,000 | $(25,000) | (11.1%) | | Total borrowings | $355,782 | $385,442 | $(29,660) | (7.7%) | - Total borrowings decreased by **$29.7 million (7.7%)**, mainly due to **$75.0 million** in maturities of long-term FHLB advances, partially offset by **$50.0 million** in new FHLB advances, with these borrowings replaced by brokered deposits[202](index=202&type=chunk) [Other Liabilities](index=58&type=section&id=Other%20Liabilities) This section provides an overview of changes in other accrued liabilities and their drivers | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Accrued interest payable and other liabilities | $53,775 | $64,930 | $(11,155) | (17.2%) | - Other liabilities decreased by **$11.2 million (17.2%)**, primarily due to a decrease in accrued interest payable on time deposits and payment of previously accrued annual incentive compensation[203](index=203&type=chunk) [Shareholders' Equity](index=58&type=section&id=Shareholders'%20Equity) This section analyzes the changes in shareholders' equity, including retained earnings, comprehensive income, and treasury stock | Metric | At June 30, 2025 (Thousands) | At December 31, 2024 (Thousands) | Change Amount | Change Percent | | :----------------------------------- | :----------------------------- | :----------------------------- | :------------ | :------------- | | Total shareholders' equity | $916,733 | $887,301 | $29,432 | 3.3% | | Retained earnings | $555,403 | $525,780 | $29,623 | 5.6% | | Accumulated other comprehensive loss | $(34,969) | $(43,992) | $9,023 | (20.5%) | | Treasury stock | $(63,125) | $(55,100) | $(8,025) | 14.6% | - Total shareholders' equity increased by **$29.4 million (3.3%)**, driven by a **$29.6 million** increase in retained earnings (net income offset by dividends) and a **$9.0 million** decrease in accumulated other comprehensive loss (due to fair value increases in available-for-sale securities)[205](index=205&type=chunk) - Treasury stock increased by **$8.0 million** due to repurchases of **394,517 shares** for **$11.4 million**, partially offset by stock issued under various plans[205](index=205&type=chunk) [Discussion of Segments](index=59&type=section&id=Discussion%20of%20Segments) This section provides a detailed analysis of the financial performance of the company's Banking, Wealth Management, and Insurance segments - The Banking segment's pre-tax income increased for both the three and six months ended June 30, 2025, reflecting improved net interest income[207](index=207&type=chunk) - The Wealth Management segment saw significant pre-tax income growth, driven by new customer relationships and appreciation of assets under management and supervision, which reached **$5.4 billion**[208](index=208&type=chunk) - The Insurance segment's pre-tax income decreased, primarily due to a reduction in contingent income[209](index=209&type=chunk) [Capital Adequacy](index=59&type=section&id=Capital%20Adequacy) This section assesses the company's capital ratios against regulatory requirements, confirming its well-capitalized status | Capital Ratio | Corporation (June 30, 2025) | Bank (June 30, 2025) | Required for Capital Adequacy | Required for Well-Capitalized | | :----------------------------------- | :-------------------------- | :------------------- | :---------------------------- | :---------------------------- | | Total Capital (to Risk-Weighted Assets) | 14.58% | 12.36% | 8.00% | 10.00% | | Tier 1 Capital (to Risk-Weighted Assets) | 11.19% | 11.11% | 6.00% | 8.00% | | Tier 1 Common Capital (to Risk-Weighted Assets) | 11.19% | 11.11% | 4.50% | 6.50% | | Tier 1 Capital (to Average Assets) | 9.94% | 9.86% | 4.00% | 5.00% | - Both the Corporation and the Bank exceeded all minimum capital adequacy requirements and were categorized as 'well capitalized' at June 30, 2025[211](index=211&type=chunk)[213](index=213&type=chunk) - The Corporation and Bank maintained capital levels in excess of the capital conservation buffer (**2.50%** above minimum risk-based requirements)[211](index=211&type=chunk) [Asset/Liability Management](index=60&type=section&id=Asset%2FLiability%20Management) This section describes the strategies and tools used to manage interest rate risk and optimize net interest income - The Corporation uses gap analysis and earnings at risk simulation modeling to quantify interest rate risk exposure and minimize volatility while maximizing net interest income[215](index=215&type=chunk) [Liquidity](index=61&type=section&id=Liquidity) This section discusses the company's liquidity position, including available cash, investment securities, and borrowing capacity - The Corporation maintains strong liquidity, with unencumbered cash and cash equivalents of **$156.0 million** and unencumbered available-for-sale securities of **$58.4 million** at June 30, 2025[218](index=218&type=chunk) - Committed borrowing capacity from the FHLB, Federal Reserve Bank, and a correspondent bank totaled **$3.6 billion**, with **$2.3 billion** available at June 30, 2025[218](index=218&type=chunk) [Sources of Funds](index=61&type=section&id=Sources%20of%20Funds) This section identifies the primary sources of funding for the company, including deposits and wholesale borrowings - Non-brokered deposits from individuals, businesses, public funds, and non-profit organizations remain the largest funding source[219](index=219&type=chunk) - The Corporation also utilizes diversified wholesale funding, including federal funds, FHLB advances, and brokered deposits[220](index=220&type=chunk) [Cash Requirements](index=61&type=section&id=Cash%20Requirements) This section outlines the company's significant cash obligations and its plans to meet them - Significant cash requirements include repaying certificates of deposit (**$1.0 billion** due within one year) and short- and long-term borrowings[221](index=221&type=chunk) - The Bank plans to meet these obligations through on-balance sheet liquidity, convenient depository services, and utilizing borrowings and brokered deposits[221](index=221&type=chunk) [Recent Accounting Pronouncements](index=61&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to the relevant note in the financial statements for details on recent accounting updates - For information regarding recent accounting pronouncements, refer to Note 1 to the Condensed Consolidated Financial Statements, 'Summary of Significant Accounting Policies'[223](index=223&type=chunk) [Recent Regulatory and Legislative Developments](index=62&type=section&id=Recent%20Regulatory%20and%20Legislative%20Developments) This section discusses the potential impact of recent regulatory and legislative changes on the company's financial statements - The Corporation is evaluating the income tax implications of the 'One Big Beautiful Bill' (the Act), signed on July 4, 2025, but does not currently expect a material impact on its financial statements[224](index=224&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there were no material changes in the Corporation's market risk during the period ended June 30, 2025, referring to the Annual Report on Form 10-K for a detailed discussion - No material changes in the Corporation's market risk occurred during the period ended June 30, 2025[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Corporation's disclosure controls and procedures as of June 30, 2025, and reports no material changes in internal control over financial reporting during the quarter - The Corporation's Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of June 30, 2025[226](index=226&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[227](index=227&type=chunk) PART II. OTHER INFORMATION This section provides additional information not covered in the financial statements, including legal proceedings, risk factors, and equity sales [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) This section reiterates that the Corporation is subject to various legal actions but does not anticipate any material adverse effect on its financial condition or operations - The Corporation does not expect legal proceedings to have a material adverse effect on its results of operations, financial position, or cash flows[228](index=228&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the Corporation's Annual Report on Form 10-K - No material changes in risk factors from those disclosed in the 2024 Annual Report on Form 10-K[229](index=229&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the Corporation's common stock repurchases during the second quarter of 2025 under its Board-approved program, along with information on shares withheld for taxes or exercised via stock options | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------- | :----------------------------- | :--------------------------- | | April 1 – 30, 2025 | 87,598 | $27.31 | | May 1 – 31, 2025 | 51,986 | $30.62 | | June 1 – 30, 2025 | 33,173 | $29.56 | | Total (Q2 2025) | 172,757 | $28.74 | - The Corporation repurchased **172,757 shares** of common stock during the second quarter of 2025 under its Board-approved program, at an average price of **$28.74** per share[231](index=231&type=chunk) - As of June 30, 2025, **1,005,637 shares** remained available for repurchase under the existing plans[231](index=231&type=chunk) [Item 3. Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities were reported[236](index=236&type=chunk) [Item 4. Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Corporation - Mine Safety Disclosures are not applicable to the Corporation[237](index=237&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[238](index=238&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, certifications, and financial statements in Inline XBRL format - Exhibits include Amended and Restated Articles of Incorporation and By-Laws, certifications from the CEO and CFO (302 and 906), and financial statements in Inline XBRL format[241](index=241&type=chunk) SIGNATURES This section contains the official signatures of the company's principal executive and financial officers, certifying the report's accuracy - The report was signed on July 29, 2025, by Jeffrey M. Schweitzer, Chairman, President and Chief Executive Officer, and Brian J. Richardson, Senior Executive Vice President and Chief Financial Officer[244](index=244&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $20 million for the second quarter, equating to $0.69 per share, while loan outstandings contracted by $31.9 million during the quarter [3] - Year-to-date commercial loan production was $507 million compared to $422 million in the prior year, but loan outstanding contracted by $25.4 million compared to growth of $117.6 million in the prior year [4] - Deposits decreased by $75.8 million during the quarter, primarily due to seasonal declines in public funds deposits and broker deposits, but excluding these declines, deposits increased by $77.5 million [4] - The net interest margin (NIM) reported was 3.2%, an increase of 11 basis points from the prior quarter, with core NIM at 3.24%, expanding by 12 basis points compared to the first quarter [6] Business Line Data and Key Metrics Changes - Noninterest income increased by $521,000 or 2.5% compared to the second quarter of 2024, driven by increases in investment management fees, gains on sale of SBA loans, and treasury management fees [7] - Noninterest expense increased by $1.6 million or 3.3% compared to the second quarter of 2024, primarily due to compensation costs, including annual merit increases and medical costs [7] Market Data and Key Metrics Changes - The company expects loan growth of approximately 1% to 3% for the full year and net interest income growth of 10% to 12% compared to 2024 [8] - The provision for credit loss guidance remains unchanged at $12 million to $14 million for 2025, with the provision being event-driven [8] Company Strategy and Development Direction - The company will continue to be active in share buybacks, viewing it as a good use of capital, while M&A is not an immediate strategic priority but remains an option for the future [17] - The company is focused on managing expenses prudently, with a revised expense growth forecast of 2% to 4% [15] Management Comments on Operating Environment and Future Outlook - Management noted that loan activity and origination remain strong, despite being impacted by significant payoff activity in the first half of the year [14] - The competitive environment for deposits is tough, with ongoing efforts to grow deposits through targeted campaigns [20] - For the third quarter, core NIM is expected to pull back slightly due to the repricing of sub debt issuance and higher cost public funds [21] Other Important Information - The company reported $7.8 million of net charge-offs predominantly related to one credit, which accounted for $7.3 million of the charge-offs, with credit quality remaining strong overall [5] Q&A Session Summary Question: Update on loan growth and expenses - Loan growth is expected to be 1% to 3%, with interest income growth of 10% to 12%, and expenses are projected to grow by 2% to 4% [12] Question: Changes in loan environment and competition - Loan activity is strong, but significant payoff activity has impacted growth; management anticipates a slowdown in prepayment activity in the second half of the year [14] Question: Strategy for capital deployment - The company will continue share buybacks and is open to M&A opportunities, particularly on the non-bank side [17] Question: Deposit competition outlook - The competitive environment for deposits is challenging, with ongoing efforts to grow deposits through targeted campaigns [20] Question: NIM trajectory outlook - Core NIM is expected to pull back slightly in the third quarter, with a flat to slightly up trend thereafter, assuming stable interest rates [21]

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of Univest Financial Corporation's key financial performance and strategic highlights for the reported period [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Univest Financial Corporation achieved year-over-year increases in net income and diluted earnings per share in Q2 2025, driven by higher net interest income and improved net interest margin, despite a significant increase in provision for credit losses due to a commercial loan issue **Q2 2025 Key Financial Data Comparison:** | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $20.0 million | $18.1 million | | Diluted EPS | $0.69 | $0.62 | - Net income increased by **10.5% year-over-year**, and diluted EPS increased by **11.3% year-over-year**[1](index=1&type=chunk) [Financial Position](index=1&type=section&id=Financial%20Position) This section details Univest Financial Corporation's balance sheet components, including loans, leases, deposits, and liquidity, reflecting the company's financial health [Loans and Leases](index=1&type=section&id=Loans%20and%20Leases) Total loans and leases slightly decreased quarter-over-quarter but increased year-over-year, influenced by reductions in commercial real estate, residential mortgages, and lease financing, offset by increases in commercial, construction, and home equity loans **Total Loans and Leases Change:** | Period | Change Amount | Percentage Change | | :--- | :--- | :--- | | From March 31, 2025 (QoQ) | -$31.9 million | -0.5% | | From June 30, 2024 (YoY) | +$116.3 million | +1.7% | - Quarter-over-quarter decrease primarily due to reduced commercial real estate, residential mortgages, and lease financing, while year-over-year increase primarily due to increased commercial real estate, residential mortgages, and home equity loans[2](index=2&type=chunk) [Deposits and Liquidity](index=1&type=section&id=Deposits%20and%20Liquidity) Total deposits decreased quarter-over-quarter due to seasonal public funds and brokered deposits, but increased year-over-year, with non-interest-bearing deposits rising and ample committed borrowing capacity maintained **Total Deposits Change:** | Period | Change Amount | Percentage Change | | :--- | :--- | :--- | | From March 31, 2025 (QoQ) | -$75.8 million | -1.1% | | From June 30, 2024 (YoY) | +$87.3 million | +1.3% | - As of June 30, 2025, non-interest-bearing deposits totaled **$1.5 billion**, representing **22.2% of total deposits**, up from 21.5% on March 31, 2025[5](index=5&type=chunk) - As of June 30, 2025, the company had **$3.6 billion in committed borrowing capacity**, with **$2.3 billion available**[6](index=6&type=chunk) [Operating Results](index=2&type=section&id=Operating%20Results) This section analyzes Univest Financial Corporation's financial performance, focusing on net interest income, noninterest income, noninterest expense, and tax provisions [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income significantly increased both year-over-year and quarter-over-quarter in Q2 2025, driven by higher average loan balances, improved earning asset yields, and lower funding costs, with net interest margin also improving **Net Interest Income Change:** | Period | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Interest Income | $59.5 million | $51.0 million | $56.8 million | | YoY Growth | +16.7% | - | - | | QoQ Growth | +4.9% | - | - | **Tax Equivalent Net Interest Margin:** | Period | Net Interest Margin | | :--- | :--- | | Q2 2025 | 3.20% | | Q1 2025 | 3.09% | | Q2 2024 | 2.84% | [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income increased by 2.5% year-over-year in Q2 2025, driven by significant growth in gains on SBA loan sales and other income, and higher deposit account service charges, partially offset by a decrease in net mortgage banking income **Noninterest Income Change:** | Indicator | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Noninterest Income | $21.5 million | $20.98 million | +2.5% | | Other Income | +$491 thousand | - | +65.9% | | Deposit Account Service Charges | +$276 thousand | - | +13.9% | | Net Mortgage Banking Income | -$729 thousand | - | -42.6% | - Other income growth primarily due to a **$299 thousand increase in gains on Small Business Administration (SBA) loan sales**[11](index=11&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Noninterest expense increased by 3.3% year-over-year in Q2 2025, primarily due to higher salaries, benefits, and commissions, attributed to increased payroll and medical claims expenses, and variable compensation growth from improved profitability **Noninterest Expense Change:** | Indicator | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Noninterest Expense | $50.3 million | $48.7 million | +3.3% | | Salaries, Benefits, and Commissions | +$1.3 million | - | +4.5% | [Tax Provision](index=3&type=section&id=Tax%20Provision) The effective income tax rate in Q2 2025 was slightly higher than the prior year period, with both periods favorably impacted by Bank-Owned Life Insurance (BOLI) death benefit proceeds **Effective Income Tax Rate:** | Period | Effective Tax Rate | | :--- | :--- | | Q2 2025 | 20.1% | | Q2 2024 | 19.9% | [Asset Quality](index=3&type=section&id=Asset%20Quality) This section assesses the quality of Univest Financial Corporation's assets, including nonperforming assets, loan charge-offs, and credit loss provisions [Nonperforming Assets](index=3&type=section&id=Nonperforming%20Assets) Nonperforming assets significantly increased both quarter-over-quarter and year-over-year, primarily due to a $23.7 million commercial loan being placed on nonaccrual status in Q2 2025 due to suspected fraud, resulting in a $7.3 million charge-off **Total Nonperforming Assets:** | Period | Amount | | :--- | :--- | | June 30, 2025 | $50.6 million | | March 31, 2025 | $34.0 million | | June 30, 2024 | $36.6 million | - A **$23.7 million commercial loan** was placed on nonaccrual status due to suspected fraud, resulting in a **$7.3 million charge-off**[15](index=15&type=chunk) [Loan and Lease Charge-offs](index=4&type=section&id=Loan%20and%20Lease%20Charge-offs) Net loan and lease charge-offs significantly increased in Q2 2025, primarily attributed to the $7.3 million charge-off related to the aforementioned nonaccrual commercial loan **Net Loan and Lease Charge-offs:** | Period | Amount | | :--- | :--- | | Q2 2025 | $7.8 million | | Q1 2025 | $1.7 million | | Q2 2024 | $809 thousand | - The increase in charge-offs was primarily due to a **$7.3 million charge-off** related to a nonaccrual commercial loan[16](index=16&type=chunk) [Provision for Credit Losses](index=4&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses significantly increased in Q2 2025, reflecting a deterioration in asset quality; however, the allowance for credit losses on loans and leases as a percentage of loans and leases held for investment remained stable **Provision for Credit Losses:** | Period | Amount | | :--- | :--- | | Q2 2025 | $5.7 million | | Q1 2025 | $2.3 million | | Q2 2024 | $707 thousand | - As of June 30, 2025, the allowance for credit losses on loans and leases was **1.28% of loans and leases held for investment**, consistent with the prior two quarters[17](index=17&type=chunk) [Capital Management and Shareholder Returns](index=4&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) This section outlines Univest Financial Corporation's strategies for capital management and shareholder returns, including dividend declarations and share repurchase programs [Dividends and Share Repurchases](index=4&type=section&id=Dividends%20and%20Share%20Repurchases) Univest declared a quarterly cash dividend for Q2 2025 and repurchased a significant number of common shares during the period, demonstrating a commitment to shareholder returns - On July 23, 2025, Univest declared a **quarterly cash dividend of $0.22 per share**[18](index=18&type=chunk) **Q2 2025 Share Repurchase Details:** | Indicator | Data | | :--- | :--- | | Shares Repurchased | 172,757 shares | | Average Repurchase Price | $28.45/share | | Shares Available for Repurchase (as of June 30, 2025) | 1,005,637 shares | [Company Information and Forward-Looking Statements](index=4&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) This section provides essential corporate information, conference call details, and important forward-looking statements regarding potential future risks and uncertainties [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Univest will host a conference call on July 24, 2025, to discuss Q2 2025 results, with registration and access information provided - The conference call will be held on **Thursday, July 24, 2025, at 9:00 AM ET**[19](index=19&type=chunk) - The public can participate by dialing **1-833-470-1428**, using access code **747843**[19](index=19&type=chunk) [About Univest Financial Corporation](index=4&type=section&id=About%20Univest%20Financial%20Corporation) Univest Financial Corporation is a Pennsylvania-based financial services company offering comprehensive financial solutions primarily to individuals, businesses, municipalities, and non-profit organizations in the Mid-Atlantic region **Company Overview (as of June 30, 2025):** | Indicator | Data | | :--- | :--- | | Total Assets | Approximately $7.9 billion | | Assets Under Management and Supervision in Wealth Management | $5.4 billion | | Headquarters | Souderton, Pennsylvania | | Founded | 1876 | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements involving risks and uncertainties that could cause Univest's future financial condition and operating results to differ materially from expectations - Forward-looking statements involve several important factors that could cause actual results to differ materially from expectations[21](index=21&type=chunk) - Risk factors include industry competition, interest rate changes, asset quality, real estate value fluctuations, liquidity, economic conditions, regulatory and accounting changes, government policies, technological failures, and cyberattacks[21](index=21&type=chunk)[22](index=22&type=chunk) [Consolidated Selected Financial Data (Unaudited)](index=6&type=section&id=Consolidated%20Selected%20Financial%20Data%20%28Unaudited%29) This section presents unaudited consolidated financial data, including balance sheets, income statements, and key ratios, for Univest Financial Corporation across recent quarters [Balance Sheet (Period End)](index=6&type=section&id=Balance%20Sheet%20(Period%20End)) This section provides detailed period-end balance sheet data for Univest Financial Corporation as of June 30, 2025, and prior quarters **Consolidated Balance Sheet (Period End, in thousands):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $160,365 | $169,134 | $328,844 | $504,700 | $190,911 | | Loans and Leases (Held for Investment) | $6,801,185 | $6,833,037 | $6,826,583 | $6,730,734 | $6,684,837 | | Total Assets | $7,939,056 | $7,975,167 | $8,128,417 | $8,205,737 | $7,855,446 | | Total Deposits | $6,582,660 | $6,658,498 | $6,759,259 | $6,854,148 | $6,495,322 | | Total Liabilities | $7,022,323 | $7,071,695 | $7,241,116 | $7,328,666 | $7,001,309 | | Total Shareholders' Equity | $916,733 | $903,472 | $887,301 | $877,071 | $854,137 | [Balance Sheet (Average)](index=6&type=section&id=Balance%20Sheet%20(Average)) This section lists average balance sheet data for Univest Financial Corporation as of June 30, 2025, and prior quarters, used for calculating profitability ratios **Consolidated Balance Sheet (Average, in thousands):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Assets | $7,979,475 | $7,981,043 | $8,163,347 | $8,005,265 | $7,721,540 | | Loans and Leases (Gross) | $6,846,938 | $6,856,503 | $6,758,649 | $6,730,791 | $6,640,536 | | Deposits | $6,633,250 | $6,617,653 | $6,804,483 | $6,641,324 | $6,353,752 | | Shareholders' Equity | $908,536 | $896,811 | $880,237 | $864,406 | $844,572 | [Summary of Major Loan and Lease Categories (Period End)](index=7&type=section&id=Summary%20of%20Major%20Loan%20and%20Lease%20Categories%20(Period%20End)) This section provides a breakdown of period-end balances for Univest Financial Corporation's major loan and lease categories as of June 30, 2025, and prior quarters **Major Loan and Lease Categories (Period End, in thousands):** | Category | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial, Financial, and Agricultural | $1,052,246 | $1,034,361 | $1,037,835 | $1,044,043 | $1,055,332 | | Real Estate - Commercial | $3,485,615 | $3,546,402 | $3,530,451 | $3,442,083 | $3,373,889 | | Real Estate - Residential (Personal Use) | $984,166 | $992,767 | $994,972 | $969,562 | $952,665 | | Lease Financing | $232,441 | $235,591 | $244,661 | $249,061 | $251,514 | | Total Loans and Leases (Held for Investment) | $6,801,185 | $6,833,037 | $6,826,583 | $6,730,734 | $6,684,837 | [Asset Quality Data (Period End)](index=7&type=section&id=Asset%20Quality%20Data%20(Period%20End)) This section provides key asset quality metrics for Univest Financial Corporation as of June 30, 2025, and prior quarters, including nonaccrual loans and nonperforming assets **Asset Quality Data (Period End, in thousands):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Nonaccrual Loans and Leases | $27,909 | $11,126 | $12,667 | $15,319 | $16,200 | | Total Nonperforming Loans and Leases | $28,034 | $11,448 | $12,988 | $15,629 | $16,405 | | Total Nonperforming Assets | $50,585 | $33,960 | $33,205 | $36,623 | $36,561 | | Nonperforming Assets/Total Assets | 0.64% | 0.43% | 0.41% | 0.45% | 0.47% | | Allowance for Credit Losses on Loans and Leases | $86,989 | $87,790 | $87,091 | $86,041 | $85,745 | | Allowance for Credit Losses on Loans and Leases/Nonperforming Loans and Leases | 310.30% | 766.86% | 670.55% | 550.52% | 522.68% | [Net Loan and Lease Charge-offs](index=7&type=section&id=Net%20Loan%20and%20Lease%20Charge-offs) This section provides data on Univest Financial Corporation's net loan and lease charge-offs as of June 30, 2025, and prior quarters **Net Loan and Lease Charge-offs (in thousands):** | Period | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Loan and Lease Charge-offs | $7,807 | $1,686 | $767 | $820 | $809 | | Net Loan and Lease Charge-offs (Annualized)/Average Loans and Leases | 0.46% | 0.10% | 0.05% | 0.05% | 0.05% | [Income Statement](index=8&type=section&id=Income%20Statement) This section provides detailed income statement data for Univest Financial Corporation as of June 30, 2025, and prior quarters **Consolidated Income Statement (in thousands, except per share data):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Interest Income | $105,706 | $103,416 | $107,476 | $106,438 | $99,832 | | Interest Expense | $46,165 | $46,635 | $52,004 | $53,234 | $48,805 | | Net Interest Income | $59,541 | $56,781 | $55,472 | $53,204 | $51,027 | | Provision for Credit Losses | $5,694 | $2,311 | $2,380 | $1,414 | $707 | | Total Noninterest Income | $21,501 | $22,415 | $21,330 | $20,150 | $20,980 | | Total Noninterest Expense | $50,332 | $49,328 | $50,658 | $48,552 | $48,708 | | Net Income | $19,978 | $22,395 | $18,941 | $18,578 | $18,107 | | Diluted Earnings Per Share | $0.69 | $0.77 | $0.65 | $0.63 | $0.62 | [Profitability Ratios (Annualized)](index=9&type=section&id=Profitability%20Ratios%20(Annualized)) This section provides Univest Financial Corporation's annualized profitability ratios as of June 30, 2025, and prior quarters **Profitability Ratios (Annualized):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Return on Average Assets | 1.00% | 1.14% | 0.92% | 0.92% | 0.94% | | Return on Average Shareholders' Equity | 8.82% | 10.13% | 8.56% | 8.55% | 8.62% | | Return on Average Tangible Common Equity | 11.02% | 12.69% | 10.79% | 10.84% | 11.01% | | Net Interest Margin (FTE) | 3.20% | 3.09% | 2.88% | 2.82% | 2.84% | | Efficiency Ratio | 61.6% | 61.6% | 65.5% | 65.7% | 67.1% | [Capitalization Ratios](index=9&type=section&id=Capitalization%20Ratios) This section provides Univest Financial Corporation's capitalization ratios as of June 30, 2025, reflecting the company's capital strength **Capitalization Ratios:** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Dividends Declared to Net Income Ratio | 31.8% | 27.2% | 32.2% | 33.0% | 33.9% | | Shareholders' Equity to Assets Ratio (Period End) | 11.55% | 11.33% | 10.92% | 10.69% | 10.87% | | Tangible Common Equity to Tangible Assets Ratio | 9.52% | 9.31% | 8.92% | 8.71% | 8.81% | | Common Stock Book Value Per Share | $31.82 | $31.19 | $30.55 | $30.16 | $29.26 | | Tangible Common Stock Book Value Per Share | $25.66 | $25.06 | $24.43 | $24.05 | $23.17 | [Regulatory Capital Ratios (Period End)](index=9&type=section&id=Regulatory%20Capital%20Ratios%20(Period%20End)) This section provides Univest Financial Corporation's period-end regulatory capital ratios as of June 30, 2025, and prior quarters **Regulatory Capital Ratios (Period End):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Tier 1 Leverage Ratio | 9.94% | 9.80% | 9.51% | 9.53% | 9.74% | | Common Equity Tier 1 Risk-Based Capital Ratio | 11.19% | 10.97% | 10.85% | 10.88% | 10.72% | | Tier 1 Risk-Based Capital Ratio | 11.19% | 10.97% | 10.85% | 10.88% | 10.72% | | Total Risk-Based Capital Ratio | 14.58% | 14.35% | 14.19% | 14.27% | 14.09% | [Average Balances and Interest Rates (Tax Equivalent Basis) - Q2 2025 vs Q1 2025](index=10&type=section&id=Average%20Balances%20and%20Interest%20Rates%20(Tax%20Equivalent%20Basis)%20-%20Q2%202025%20vs%20Q1%202025) This section details Univest Financial Corporation's average balances, income/expense, and average rates for interest-earning assets and interest-bearing liabilities on a tax-equivalent basis for Q2 2025 and Q1 2025 **Average Balances and Interest Rates (Tax Equivalent Basis, in thousands):** | Indicator | June 30, 2025 (Average Balance) | June 30, 2025 (Income/Expense) | June 30, 2025 (Average Rate) | March 31, 2025 (Average Balance) | March 31, 2025 (Income/Expense) | March 31, 2025 (Average Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Interest-Earning Assets | $7,512,254 | $106,122 | 5.67% | $7,514,139 | $103,802 | 5.60% | | Total Interest-Bearing Liabilities | $5,568,354 | $46,165 | 3.33% | $5,614,972 | $46,635 | 3.37% | | Net Interest Income | - | $59,957 | - | - | $57,167 | - | | Net Interest Margin | - | - | 3.20% | - | - | 3.09% | [Average Balances and Interest Rates (Tax Equivalent Basis) - Q2 2025 vs Q2 2024](index=11&type=section&id=Average%20Balances%20and%20Interest%20Rates%20(Tax%20Equivalent%20Basis)%20-%20Q2%202025%20vs%20Q2%202024) This section details Univest Financial Corporation's average balances, income/expense, and average rates for interest-earning assets and interest-bearing liabilities on a tax-equivalent basis for Q2 2025 and Q2 2024 **Average Balances and Interest Rates (Tax Equivalent Basis, in thousands):** | Indicator | June 30, 2025 (Average Balance) | June 30, 2025 (Income/Expense) | June 30, 2025 (Average Rate) | June 30, 2024 (Average Balance) | June 30, 2024 (Income/Expense) | June 30, 2024 (Average Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Interest-Earning Assets | $7,512,254 | $106,122 | 5.67% | $7,255,508 | $100,116 | 5.55% | | Total Interest-Bearing Liabilities | $5,568,354 | $46,165 | 3.33% | $5,397,431 | $48,805 | 3.64% | | Net Interest Income | - | $59,957 | - | - | $51,311 | - | | Net Interest Margin | - | - | 3.20% | - | - | 2.84% | [Average Balances and Interest Rates (Tax Equivalent Basis) - YTD Q2 2025 vs YTD Q2 2024](index=12&type=section&id=Average%20Balances%20and%20Interest%20Rates%20(Tax%20Equivalent%20Basis)%20-%20YTD%20Q2%202025%20vs%20YTD%20Q2%202024) This section details Univest Financial Corporation's year-to-date average balances, income/expense, and average rates for interest-earning assets and interest-bearing liabilities on a tax-equivalent basis for Q2 2025 and Q2 2024 **Average Balances and Interest Rates (Tax Equivalent Basis, in thousands):** | Indicator | June 30, 2025 (Average Balance) | June 30, 2025 (Income/Expense) | June 30, 2025 (Average Rate) | June 30, 2024 (Average Balance) | June 30, 2024 (Income/Expense) | June 30, 2024 (Average Rate) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total Interest-Earning Assets | $7,513,191 | $209,924 | 5.63% | $7,246,908 | $199,008 | 5.52% | | Total Interest-Bearing Liabilities | $5,591,534 | $92,800 | 3.35% | $5,371,827 | $95,947 | 3.59% | | Net Interest Income | - | $117,124 | - | - | $103,061 | - | | Net Interest Margin | - | - | 3.14% | - | - | 2.86% | [Loan Portfolio Overview (Unaudited)](index=13&type=section&id=Loan%20Portfolio%20Overview%20%28Unaudited%29) This section provides an unaudited overview of Univest Financial Corporation's loan portfolio, detailing commercial loans by industry and consumer loans and lease financings [Commercial Loan Portfolio by Industry](index=13&type=section&id=Commercial%20Loan%20Portfolio%20by%20Industry) This section provides detailed data on Univest Financial Corporation's commercial loan portfolio by industry as of June 30, 2025 **Commercial Loan Portfolio by Industry (in thousands, as of June 30, 2025):** | Industry Description | Total Outstanding Balance | % of Commercial Loan Portfolio | | :--- | :--- | :--- | | Commercial Real Estate - Retail | $453,445 | 8.4% | | Animal Production | $401,946 | 7.5% | | Commercial Real Estate - Multifamily | $360,345 | 6.7% | | Commercial Real Estate - 1-4 Family Residential Investment | $279,322 | 5.2% | | Commercial Real Estate - Office | $262,374 | 4.9% | | Hotels and Motels (Accommodation) | $222,878 | 4.1% | | Commercial Real Estate - Industrial/Warehouse | $222,234 | 4.1% | | Professional Trade Contractors | $197,138 | 3.7% | | Nursing and Residential Care Facilities | $167,978 | 3.1% | | Home Building (Lot Developers, Remodelers) | $154,166 | 2.9% | | Durable Goods Wholesalers | $140,876 | 2.6% | | Repair and Maintenance | $135,318 | 2.5% | | Motor Vehicle and Parts Dealers | $132,852 | 2.5% | | Crop Production | $113,684 | 2.1% | | Commercial Real Estate - Mixed Use - Residential | $113,422 | 2.1% | | Wood Product Manufacturing | $99,041 | 1.8% | | Food Services and Drinking Places | $88,822 | 1.7% | | Real Estate Lenders, Secondary Market Financing | $87,750 | 1.6% | | Administrative and Support Services | $86,092 | 1.6% | | Professional, Scientific, and Technical Services | $85,567 | 1.6% | | Nondurable Goods Wholesalers | $81,836 | 1.5% | | Private Equity and Special Purpose Entities (Excluding 52592) | $76,957 | 1.4% | | Commercial Real Estate - Mixed Use - Commercial | $76,067 | 1.4% | | Fabricated Metal Product Manufacturing | $72,635 | 1.4% | | Amusement, Gambling, and Recreation Industries | $69,971 | 1.3% | | Educational Services | $65,839 | 1.2% | | Religious Organizations, Grantmaking, Civic, Professional, and Similar Organizations | $65,568 | 1.2% | | Personal and Laundry Services | $63,886 | 1.2% | | Mini-Warehouses/Self-Storage | $63,531 | 1.2% | | Food Manufacturing | $53,682 | 1.0% | | Industries with Balances Over $50 Million | $4,495,222 | 83.6% | | Industries with Balances Under $50 Million | $880,273 | 16.4% | | Total Commercial Loans | $5,375,495 | 100.0% | [Consumer Loans and Lease Financings](index=13&type=section&id=Consumer%20Loans%20and%20Lease%20Financings) This section provides detailed data on Univest Financial Corporation's consumer loans and lease financings as of June 30, 2025 **Consumer Loans and Lease Financings (in thousands, as of June 30, 2025):** | Category | Total Outstanding Balance | | :--- | :--- | | Real Estate - Residential (Personal Use) | $984,166 | | Real Estate - Home Equity (Personal Use) | $195,014 | | Personal Loans | $14,069 | | Lease Financing | $232,441 | | Total Consumer Loans and Lease Financings | $1,425,690 | | Total | $6,801,185 | [Non-GAAP Reconciliation](index=14&type=section&id=Non-GAAP%20Reconciliation) This section reconciles non-GAAP financial measures used by management to their most directly comparable GAAP financial measures, providing clarity on performance analysis [Reconciliation of Non-GAAP Measures](index=14&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides a reconciliation of non-GAAP financial measures used by management to analyze company performance to their GAAP-basis counterparts, including net income excluding intangible asset amortization, tangible common equity, and tangible assets - Management uses non-GAAP measures to analyze company performance, which should not be considered substitutes for GAAP-basis measures[49](index=49&type=chunk) **Reconciliation of Non-GAAP Measures (in thousands):** | Indicator | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Excluding Intangible Asset Amortization | $20,081 | $22,498 | $19,063 | $18,708 | $18,256 | | Tangible Common Equity | $739,183 | $725,858 | $709,528 | $699,414 | $676,470 | | Tangible Assets | $7,761,506 | $7,797,553 | $7,950,644 | $8,028,080 | $7,677,779 | | Average Tangible Common Equity | $730,958 | $719,139 | $702,581 | $686,810 | $666,840 |

Core Points - Univest Financial Corporation will host a conference call to discuss its second quarter 2025 earnings on July 24, 2025, at 9:00 a.m. [1] - Earnings are scheduled to be released after the market closes on July 23, 2025 [1] Company Overview - Univest Financial Corporation has approximately $8.0 billion in assets and $5.2 billion in assets under management and supervision as of March 31, 2025 [3] - The company provides a full range of financial solutions for individuals, businesses, municipalities, and nonprofit organizations primarily in the Mid-Atlantic Region [3] - Univest operates through a network of more than 50 offices and offers services online [3]

Company Performance - Univest (UVSP) shares have increased by 13.5% over the past month, reaching a new 52-week high of $32.77 [1] - Year-to-date, Univest has gained 10.8%, outperforming the Zacks Finance sector's 9.9% and the Zacks Banks - Northeast industry's 2.7% [1] Earnings and Revenue Expectations - Univest has consistently beaten earnings estimates, reporting EPS of $0.77 against a consensus estimate of $0.64 in its last earnings report [2] - For the current fiscal year, Univest is projected to achieve earnings of $2.78 per share on revenues of $317.21 million, reflecting an 11.2% increase in EPS and a 6.01% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to $2.96 per share on revenues of $341.55 million, indicating year-over-year changes of 6.47% and 7.67%, respectively [3] Valuation Metrics - Univest's current valuation metrics show a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a VGM Score of B [6] - The stock trades at 11.8X current fiscal year EPS estimates, which is above the peer industry average of 10.8X, and at 11.6X on a trailing cash flow basis compared to the peer group's average of 11.4X [6] Zacks Rank - Univest holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [7] - The recommendation suggests that investors should consider stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for Univest shares in the near future [7] Industry Comparison - SB Financial Group, Inc. (SBFG) is a notable peer with a Zacks Rank of 2 (Buy) and a Value Score of A, alongside a Growth Score of C and a Momentum Score of C [8] - SBFG is expected to post earnings of $2.03 per share on revenues of $64.8 million for the current fiscal year, having beaten consensus estimates by 5.00% last quarter [9] - SBFG shares have gained 6.8% over the past month, trading at a forward P/E of 9.49X and a P/CF of 8.3X [10]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Univest (UVSP) - Univest currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Performance Metrics - Over the past week, UVSP shares increased by 5.4%, outperforming the Zacks Banks - Northeast industry, which rose by 4.31% [6] - In the last month, UVSP's price change was 8.41%, compared to the industry's 7.77% [6] - Over the past quarter, shares of Univest have risen by 15.92%, and over the last year, they have gained 39.53%, while the S&P 500 increased by 10.24% and 14.41%, respectively [7] Trading Volume - UVSP's average 20-day trading volume is 105,224 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, two earnings estimates for UVSP have been revised upwards, increasing the consensus estimate from $2.63 to $2.78 [10] - For the next fiscal year, two estimates have also moved higher, with no downward revisions [10] Conclusion - Given the strong performance metrics and positive earnings outlook, UVSP is positioned as a solid momentum pick for investors [11]

Investor Presentation July 29, 2024 Safe Harbor Statement The information contained in this report may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statem ...

Company Overview - Univest is headquartered in Souderton and operates as a holding company for Univest Bank and Trust Co. [3] - The stock has experienced a price change of -0.44% year-to-date [3]. Dividend Information - Univest currently pays a dividend of $0.22 per share, resulting in a dividend yield of 3%, which is higher than the Northeast banking industry's yield of 2.82% and the S&P 500's yield of 1.6% [3]. - The annualized dividend of $0.88 represents a 4.8% increase from the previous year [4]. - Over the past five years, Univest has increased its dividend once on a year-over-year basis, with an average annual increase of 1.42% [4]. - The current payout ratio is 32%, indicating that the company paid out 32% of its trailing 12-month earnings per share as dividends [4]. Earnings Expectations - The Zacks Consensus Estimate for Univest's earnings in 2025 is projected at $2.63 per share, reflecting a year-over-year growth rate of 5.20% [5]. Investment Considerations - Univest is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7].