UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Commission File number 0-7617 UNIVEST FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 23-1886144 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 14 North Main Street, Souderton, Pennsylvania 18964 (Address of p ...

Core Viewpoint - Univest Corporation of Pennsylvania (UVSP) is identified as a strong value stock, currently rated with a Zacks Rank 2 (Buy) and an A for Value, indicating it is likely undervalued in the market [3][7]. Valuation Metrics - UVSP has a Price-to-Book (P/B) ratio of 0.98, which is lower than the industry average of 1.17, suggesting it is undervalued compared to its peers [4]. - The Price-to-Sales (P/S) ratio for UVSP stands at 1.89, compared to the industry average of 2.02, further indicating potential undervaluation [5]. - UVSP's Price-to-Cash Flow (P/CF) ratio is 10.53, which is attractive relative to the industry average of 12.74, reinforcing the notion of undervaluation based on cash flow [6]. Investment Outlook - The combination of UVSP's favorable valuation metrics and strong earnings outlook positions it as a compelling investment opportunity for value investors [7].

Company Overview - Univest (UVSP) is headquartered in Souderton and operates in the Finance sector, with a year-to-date stock price change of 2.08% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.63%, which is higher than the Banks - Northeast industry's yield of 2.42% and the S&P 500's yield of 1.36% [3] Dividend Performance - Univest's annualized dividend of $0.88 has increased by 1.1% from the previous year [4] - Over the last five years, the company has raised its dividend twice on a year-over-year basis, achieving an average annual increase of 1.61% [4] - The current payout ratio is 29%, indicating that the company distributes 29% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for Univest's earnings in 2026 is projected at $3.31 per share, reflecting an expected increase of 5.75% from the previous year [5] - Future dividend growth will depend on earnings growth and the payout ratio [4] Investment Considerations - Univest is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Income investors are attracted to dividends for various reasons, including tax advantages and reduced overall portfolio risk [5]

Financial Data and Key Metrics Changes - The company reported net income of $22.7 million or $0.79 per share for Q4 2025, a 21.5% increase compared to Q4 2024, resulting in record earnings per share for the year of $3.13 [3] - Loan outstandings grew by $129.3 million during Q4 2025, with a solid loan growth after pressures from early payoffs eased [3][4] - The reported net interest margin (NIM) decreased by 7 basis points to 3.10% compared to Q3 2025, while core NIM increased by 4 basis points to 3.37% [5] Business Line Data and Key Metrics Changes - Loans grew by $129.3 million during Q4 2025, or 7.6% annualized, while total loans for the full year increased by $88.2 million, or 1.3% [5][6] - Non-interest expense increased by $2.1 million, or 4.1% compared to Q4 2024, with total expenses for the year rising by $5 million, or 2.5% [6][7] - The company repurchased approximately 400,000 shares of common stock at an average cost of $32.17 per share during Q4 2025, with a total of 1.1 million shares repurchased in 2025 [7][8] Market Data and Key Metrics Changes - Deposits decreased by $130.8 million in Q4 2025, primarily due to a $198.8 million decrease in public funds, partially offset by an $84 million increase in consumer balances [6] - Total deposits grew by $328.1 million, or 4.9%, for the full year of 2025 [6] Company Strategy and Development Direction - The company expects loan growth of approximately 2%-3% and modest NIM expansion for 2026, targeting net interest income growth of approximately 4%-6% [8][9] - The provision for credit losses is expected to be in the range of $11 million-$13 million for 2026, driven by changes in economic forecasts and credit performance [9] - The company is focusing on deposit initiatives, including small business outreach and specific programs to capture deposits from various sectors [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrying momentum from 2025 into 2026, with expectations for continued strong performance [48] - The company anticipates a relatively stable environment with potential Fed rate decreases, which are not expected to materially impact net interest income due to overall asset-liability management neutrality [9] Other Important Information - The effective tax rate is expected to be in the range of 20%-21% based on current statutory rates [10] - The company has 2.3 million shares available for repurchase under the share repurchase plan, with a target of $10 million-$12 million in repurchases per quarter for 2026 [8] Q&A Session Summary Question: What is the seasonality for deposits in Q1? - The company expects $100 million-$150 million in public funds to flow out in Q1 and Q2, with significant portions of excess liquidity deployed over that time [15] Question: What is the expected trajectory for NIM over the year? - NIM is expected to be relatively in line to slightly up compared to Q4 2025, with overall expansion anticipated for 2026 [16] Question: What is the current state of deposit competition? - Competition remains, with slight increases noted, but the company has been successful in retaining CDs and managing deposit costs effectively [20] Question: Can you review the ag farmland portfolio? - The ag portfolio consists of smaller family farms with a conservative underwriting approach, and the company has a diversified business model supporting these loans [22] Question: What is the outlook for loan growth and prepayment activity? - The company anticipates a more stable prepayment environment similar to Q4 2025, with growth expected primarily in the commercial loan sector [30] Question: How is the buyback pace tied to balance sheet movements? - The buyback activity is guided by earnings and balance sheet growth, aiming to avoid significant growth in regulatory capital ratios [38]

Financial Data and Key Metrics Changes - The company reported a net income of $22.7 million or $0.79 per share for Q4 2025, a 21.5% increase compared to Q4 2024, resulting in a record earnings per share of $3.13 for the year [3] - Loan outstandings grew by $129.3 million during Q4 2025, with a 7.6% annualized growth rate [5] - Non-accrual loans to total loans declined by 20 basis points to 0.2%, and non-performing assets to total assets declined by 16 basis points to 0.45% [4] Business Line Data and Key Metrics Changes - Loans grew by $88.2 million, or 1.3%, for the full year of 2025 [6] - Non-interest expense increased by $2.1 million, or 4.1%, compared to Q4 2024, with total non-interest expense for 2025 at $203 million [7] Market Data and Key Metrics Changes - Deposits decreased by $130.8 million in Q4 2025, primarily due to a $198.8 million decrease in public funds, partially offset by an $84 million increase in consumer balances [6] - Total deposits grew by $328.1 million, or 4.9%, for the full year of 2025 [6] Company Strategy and Development Direction - The company plans to repurchase approximately $10 million-$12 million of shares per quarter in 2026, with 2.3 million shares available for repurchase under the current plan [8] - The company is targeting loan growth of approximately 2%-3% and modest net interest margin (NIM) expansion for 2026, expecting net interest income growth of approximately 4%-6% [9] Management's Comments on Operating Environment and Future Outlook - Management expects $100 million-$150 million in public funds to flow out in Q1 and Q2 2026, with a significant portion of excess liquidity expected to be deployed during this period [15] - The company anticipates a relatively stable environment with modest Fed actions not expected to materially impact net interest income [9] Other Important Information - The provision for credit losses for 2026 is expected to be in the range of $11 million-$13 million, reflecting changes in economic forecasts and credit performance [9] - The effective tax rate is expected to be in the range of 20%-21% based on current statutory rates [10] Q&A Session Summary Question: What is the seasonality for deposits in Q1? - The company expects $100 million-$150 million in public funds to flow out in Q1 and Q2, with significant deployment of excess liquidity [15] Question: How should we think about the NIM trajectory over the course of the year? - The company expects NIM to be relatively in line to slightly up compared to Q4 2025, with overall expansion anticipated for 2026 [16] Question: What are you seeing in terms of deposit competition? - Competition remains, with slight increases noted, but the company has been successful in retaining CDs and is working to acquire more operating accounts [19][20] Question: Can you review your ag farmland portfolio? - The ag portfolio consists of smaller family farms with a conservative underwriting approach, and the company has a diversified business underlying these loans [22] Question: What are you seeing regarding spread compression? - The company has seen some compression on the commercial side, with new loan rates down by 40-50 basis points, but has not experienced true spread compression [28] Question: Can you discuss the deposit pipeline and initiatives? - The company is making progress with commercial lending and small business initiatives, aiming to capture more deposits and improve the mix of operating accounts [42][44]

Financial Data and Key Metrics Changes - The company reported net income of $22.7 million or $0.79 per share for Q4 2025, a 21.5% increase compared to Q4 2024, resulting in record earnings per share for the year of $3.13 [3] - Loan outstandings grew by $129.3 million during Q4 2025, with solid loan growth as early payoffs and paydowns eased back to normal levels [3][4] - The reported net interest margin (NIM) decreased by 7 basis points to 3.10% compared to Q3 2025, while core NIM increased by 4 basis points to 3.37% [5] Business Line Data and Key Metrics Changes - Loans grew by $129.3 million during Q4 2025, or 7.6% annualized, while total loans for the full year increased by $88.2 million, or 1.3% [5][6] - Non-interest expense increased by $2.1 million, or 4.1% compared to Q4 2024, with full-year expenses rising by $5 million, or 2.5% [7] Market Data and Key Metrics Changes - Deposits decreased by $130.8 million in Q4 2025, primarily due to a $198.8 million decrease in public funds, partially offset by an $84 million increase in consumer balances [6] - Total deposits grew by $328.1 million, or 4.9%, for the full year of 2025 [6] Company Strategy and Development Direction - The company plans to target repurchases of $10 million-$12 million per quarter in 2026, with 2.3 million shares available for repurchase under the plan [8][9] - For 2026, the company expects loan growth of approximately 2%-3% and modest NIM expansion, resulting in net interest income growth of approximately 4%-6% [9][10] Management Comments on Operating Environment and Future Outlook - Management noted that the provision for credit losses is expected to be in the range of $11 million-$13 million for 2026, driven by changes in economic forecasts and credit performance [10] - The effective tax rate is expected to be in the range of 20%-21% based on current statutory rates [10] Other Important Information - The company repurchased approximately 400,000 shares of common stock at an average cost of $32.17 per share during Q4 2025 [7][8] - The company recorded a provision for credit losses of $3.1 million in Q4 2025, with a coverage ratio of 1.28% [6] Q&A Session Summary Question: What is the seasonality for deposits in Q1? - Management expects $100 million-$150 million per quarter in public funds to flow out in Q1 and Q2, with a significant portion of excess liquidity deployed during that time [15][16] Question: How should we think about the NIM trajectory over the course of the year? - Management expects NIM to be relatively in line to slightly up by the end of 2026 compared to Q4 2025, with overall expansion anticipated [18][19] Question: What are you seeing in terms of deposit competition? - Competition remains, with some slight increases noted. The company has been successful in CD retention and is working to change the mix of deposits [21][22] Question: Can you review your ag farmland portfolio? - The ag book consists of smaller family farms diversified across various sectors, with a conservative underwriting approach and a diversified business underlying the loans [23] Question: Can you discuss the margin and incremental loan yields? - Management noted some compression on the commercial side, with new loan rates down by 40-50 basis points, but no true spread compression observed [28][29] Question: What is the expected provision level for next year? - The provision is expected to normalize in the 12-13 basis point range, with guidance provided for the year [40] Question: Can you talk about the deposit pipeline and initiatives? - The company is making progress with various initiatives aimed at capturing deposits from small businesses and other targeted programs [42][44]

Financial Performance - Net income for Q4 2025 was $22.7 million, or $0.79 diluted earnings per share, a 21.5% increase from Q4 2024[1] - Net income for the year ended December 31, 2025, reached $90,757 thousand, up from $75,931 thousand in 2024, marking an increase of 19.5% year-over-year[31] - Net income for the three months ended December 31, 2025, was $22,745,000, an increase from $18,941,000 for the same period in 2024, representing a year-over-year growth of 20%[50] - Net income before amortization of intangibles for the twelve months ended December 31, 2025, was $91,128,000, up from $76,479,000 in 2024, marking a growth of 19.2%[50] Revenue and Income Sources - Net interest income for Q4 2025 was $62.5 million, an increase of $7.1 million, or 12.8%, from Q4 2024[7] - Noninterest income for Q4 2025 was $22.0 million, an increase of $692 thousand, or 3.2%, from the prior year[9] - Total noninterest income for the year ended December 31, 2025, was $87,861 thousand, slightly down from $88,055 thousand in 2024, showing a marginal decline[31] - Net interest income for the twelve months ended December 31, 2025, was $241,852 thousand, up from $212,343 thousand in 2024, reflecting an increase of about 13.9%[45] Asset and Liability Management - Total assets as of December 31, 2025, amounted to $8,436,897, a decrease of 1.6% from $8,573,616 on September 30, 2025[27] - Total liabilities decreased to $7,493,579, down 1.9% from $7,640,397 on September 30, 2025[27] - Total assets increased to $8.53 billion as of December 31, 2025, compared to $8.16 billion in 2024, reflecting a growth of approximately 4.5%[39] - Total liabilities increased to $7,255,122 thousand in 2025 from $7,039,688 thousand in 2024, marking an increase of approximately 3.1%[43] Credit Quality and Provisions - The provision for credit losses was $3.1 million for Q4 2025, compared to $2.4 million for Q4 2024[20] - Nonperforming assets totaled $37.8 million, down from $52.1 million at September 30, 2025[18] - The allowance for credit losses on loans and leases was $88,165, reflecting a slight increase from $86,527 on September 30, 2025[27] - The allowance for credit losses as a percentage of loans and leases held for investment remained stable at 1.28% for the periods ending December 31, 2025, and September 30, 2025[29] Shareholder Equity and Dividends - Shareholders' equity rose to $943,318, an increase of 1.2% from $933,219 on September 30, 2025[27] - Univest declared a quarterly cash dividend of $0.22 per share, to be paid on February 25, 2026[21] - The total shareholders' equity increased to $936.42 million in Q4 2025, up from $880.24 million in Q4 2024, indicating a growth of approximately 6.4%[39] - Average shareholders' equity for the twelve months ended December 31, 2025, was $916,433,000, compared to $858,019,000 in 2024, representing a year-over-year increase of 6.8%[50] Interest Rates and Margins - Net interest margin was 3.10% for Q4 2025, compared to 2.88% for Q4 2024, with excess liquidity reducing the margin by approximately 27 basis points[8] - The net interest margin improved to 3.10% in Q4 2025, compared to 2.88% in Q4 2024, indicating enhanced profitability from interest-earning assets[39] - The average interest rate on commercial, financial, and agricultural loans was 6.98% in 2025, slightly down from 7.19% in 2024[43] - Interest-bearing liabilities totaled $6.10 billion, with a cost of funds at 3.20% for the three months ended December 31, 2025, compared to 3.56% in the same period of 2024[39] Operational Efficiency - Noninterest expense for Q4 2025 was $52.7 million, an increase of $2.1 million, or 4.1%, from the prior year[13] - Total noninterest expense for the year ended December 31, 2025, was $203,039 thousand, an increase from $197,992 thousand in 2024, reflecting a rise in operational costs[31] - The efficiency ratio for the three months ended December 31, 2025, was 61.8%, compared to 60.2% for the three months ended September 30, 2025[33] Growth in Loans and Leases - Gross loans and leases increased by $129.3 million, or 1.9% (7.6% annualized), from Q3 2025, driven by commercial and commercial real estate loans[2] - Total loans and leases held for investment increased to $6,914,804 thousand as of December 31, 2025, up from $6,785,482 thousand at September 30, 2025, representing a growth of 1.9%[29] - Net loans and leases held for investment increased to $6,826,639, up 1.9% from $6,698,955 on September 30, 2025[27] - Total commercial loans reached $5,509,941 thousand, with the largest sector being industries with over $50 million in outstandings, accounting for 83.6% of the total[47]

Financial Performance - Univest Financial Corporation reported a net income of $22.7 million for Q4 2025, translating to $0.79 diluted earnings per share, a 21.5% increase from $18.9 million or $0.65 per share in Q4 2024 [1] - For the full year 2025, net income reached $90.8 million, or $3.13 diluted earnings per share, compared to $75.9 million, or $2.58 per share in 2024 [1] Loans and Leases - Gross loans and leases increased by $129.3 million, or 1.9% (7.6% annualized), from September 30, 2025, primarily driven by growth in commercial and commercial real estate loans [2] - Year-over-year, gross loans and leases rose by $88.2 million, or 1.3%, mainly due to increases in construction, commercial real estate, and home equity loans [2] Deposits and Liquidity - Total deposits decreased by $130.8 million, or 1.8% (7.2% annualized), from September 30, 2025, mainly due to declines in public funds and commercial deposits [3] - However, total deposits increased by $328.1 million, or 4.9%, from December 31, 2024, primarily due to growth in commercial, brokered, and public funds deposits [3] Noninterest Income - Noninterest income for Q4 2025 was $22.0 million, reflecting a 3.2% increase from the same period in the previous year [8] - Investment advisory commission and fee income rose by $598 thousand, or 11.0%, due to asset appreciation and new customer relationships [8] Noninterest Expense - Noninterest expense for Q4 2025 was $52.7 million, an increase of $2.1 million, or 4.1%, from the same period last year [12] - Salaries, benefits, and commissions increased by $1.5 million, or 4.7%, primarily due to merit increases and higher incentive compensation [13] Asset Quality - Nonperforming assets totaled $37.8 million at December 31, 2025, down from $52.1 million at September 30, 2025 [16] - The provision for credit losses was $3.1 million for Q4 2025, compared to $517 thousand in Q3 2025 [18] Shareholder Actions - Univest declared a quarterly cash dividend of $0.22 per share, payable on February 25, 2026 [19] - The Board approved an increase of 2,000,000 shares for repurchase, representing approximately 7.1% of the common stock outstanding as of November 30, 2025 [19]

Core Viewpoint - Univest Financial Corporation will host a conference call to discuss its fourth quarter 2025 earnings on January 29, 2026, with earnings released after market close on January 28, 2026 [1]. Group 1: Conference Call Details - The conference call is scheduled for January 29, 2026, at 9:00 a.m. [1] - Participants can pre-register for the call to avoid delays using a provided link [2]. - The audio dial-in number for the call is 1-833-470-1428, with an access code of 927698 [2]. Group 2: Replay Information - A replay of the conference call can be accessed by dialing 1-866-813-9403 with the replay code 393949 [3]. - The replay will be available until February 5, 2026 [3]. Group 3: Company Overview - Univest Financial Corporation has approximately $8.6 billion in assets and $5.7 billion in assets under management as of September 30, 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 online services [3].

Core Points - Univest Financial Corporation has completed a $50.0 million private placement of fixed-to-floating rate subordinated notes [1] - The proceeds will be used to redeem $80.0 million of callable subordinated notes and for general corporate purposes [1] - The notes have a maturity date of November 15, 2035, with a fixed interest rate of 6.00% for the first five years, transitioning to a floating rate thereafter [2] Financial Details - The floating rate will be set quarterly, equal to the three-month Secured Overnight Financing Rate (SOFR) plus 261.5 basis points [2] - The notes can be redeemed by the Corporation without penalty starting November 15, 2030 [2] - These notes are structured to qualify as Tier 2 capital for regulatory purposes [2] Regulatory and Advisory Information - The Corporation has entered into registration rights agreements with purchasers for the exchange of the notes for registered subordinated notes [3] - Piper Sandler & Co. acted as the sole placement agent for the private offering, with legal advice provided by Luse Gorman, PC and Troutman Pepper Locke LLP [4] Company Overview - Univest Financial Corporation has approximately $8.6 billion in assets and $5.7 billion in assets under management as of September 30, 2025 [6] - The Corporation provides a full range of financial solutions primarily in the Mid-Atlantic Region through over 50 offices [6]