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].

Financial Performance - The Corporation reported net income of $22.4 million for Q1 2025, a 10.3% increase from $20.3 million in Q1 2024[141]. - Diluted earnings per share increased to $0.77 in Q1 2025, up from $0.69 in Q1 2024, representing an 11.6% growth[141]. - Noninterest income decreased to $22.415 million in Q1 2025, down 12.4% from $25.595 million in Q1 2024[154]. - The effective tax rate for the three months ended March 31, 2025, was 18.7%, down from 20.5% in the prior year, influenced by discrete tax effects and BOLI death benefits[164]. - The Banking segment reported pre-tax income of $26.1 million for the three months ended March 31, 2025, compared to $24.6 million for the same period in 2024[187]. - The Wealth Management segment's pre-tax income increased to $2.0 million for the three months ended March 31, 2025, up from $1.9 million in 2024, attributed to new customer relationships[188]. - The Insurance segment reported a decrease in pre-tax income to $2.4 million for the three months ended March 31, 2025, down from $3.1 million in 2024, primarily due to a decrease in contingent income[189]. Interest Income and Margin - Net interest income on a tax-equivalent basis rose to $57.2 million in Q1 2025, a 10.5% increase from $51.8 million in Q1 2024[143]. - The tax-equivalent net interest margin improved to 3.09% in Q1 2025, compared to 2.88% in Q1 2024[144]. - The increase in net interest income was driven by higher average balances of loans and increased yields on interest-earning assets[143]. - Excess liquidity reduced the net interest margin by approximately three basis points for both Q1 2025 and Q1 2024[144]. - Total interest-earning assets increased to $7.514 billion in Q1 2025 from $7.238 billion in Q1 2024, reflecting a growth of 3.83%[145]. - Total interest expense decreased slightly to $46.635 million in Q1 2025 from $47.142 million in Q1 2024[145]. - The average rate on commercial, financial, and agricultural loans was 6.97% in Q1 2025, down from 7.11% in Q1 2024[145]. Asset and Liability Management - Total assets decreased by $153.3 million, or 1.9%, to $7.975 billion as of March 31, 2025, compared to December 31, 2024[165]. - Total liabilities increased to $7.084 billion as of March 31, 2025, compared to $6.854 billion at the end of 2024, reflecting a growth of 3.35%[145]. - Total deposits decreased by $100.8 million, or 1.5%, from December 31, 2024, primarily due to seasonal declines in public funds deposits and decreases in commercial and consumer deposits[181]. - Total liabilities decreased by $169.4 million, or 2.3%, from December 31, 2024, with significant reductions in short-term borrowings by 63.9% and long-term debt by 22.2%[180]. - Unencumbered cash and cash equivalents were $166.7 million at March 31, 2025, down from $327.8 million at December 31, 2024[198]. - The Corporation maintained committed borrowing capacity of $3.7 billion from the Federal Home Loan Bank and Federal Reserve Bank as of March 31, 2025[198]. Credit Quality - Provision for credit losses was $2.3 million for Q1 2025, compared to $1.4 million in Q1 2024, indicating an increase of 64.29%[151]. - The allowance for credit losses as a percentage of loans and leases held for investment remained stable at 1.28% as of March 31, 2025, unchanged from the previous quarter[152]. - Nonaccrual loans and leases decreased to $11.1 million from $12.7 million at December 31, 2024, with a related allowance for credit losses of $2.6 million[170]. - Gross loans and leases held for investment increased by $6.5 million, or 0.1%, primarily due to growth in commercial real estate and construction loans[168]. Operational Efficiency - Noninterest expense decreased by $746 thousand, or 1.5%, to $49.3 million for the three months ended March 31, 2025, compared to the prior year[162]. - Salaries, benefits, and commissions decreased by $512 thousand, or 1.6%, primarily due to increased capitalized compensation and reduced medical claims expense[163]. Capital Management - The Corporation's total capital ratio was 14.35% as of March 31, 2025, exceeding the required minimum of 8.00% for capital adequacy purposes[193]. - The Corporation aims to maintain adequate levels of capital and liquidity while limiting exposure to credit and interest rate risk[139]. Market Conditions - Non-brokered deposits remain the largest funding source for the Corporation, facing increased competition from various financial market participants[199]. - The Bank has cash requirements for various financial obligations, with certificates of deposit due within one year totaling $1.1 billion as of March 31, 2025[201]. - Commitments to extend credit are the Bank's most significant commitment, which may not represent future cash requirements as they often expire without being drawn upon[202]. - No material changes in the Corporation's market risk occurred during the period ended March 31, 2025[204].

Financial Data and Key Metrics Changes - The company reported net income of $22.4 million for Q1 2025, translating to $0.77 per share, indicating a solid start despite economic uncertainties [4] - Net loan growth was $6.5 million, impacted by larger payoffs, while deposits decreased by $100.8 million primarily due to seasonal declines in public funds deposits [5] - The net interest margin (NIM) improved to 3.09% from 2.88% in Q4 2024, reflecting stabilization in non-interest-bearing deposits and disciplined loan pricing [6] Business Line Data and Key Metrics Changes - Non-interest income decreased by $3.2 million or 12.4% compared to Q1 2024, with contingent income in the insurance line decreasing by $700,000 [10] - Non-interest expense decreased by $746,000 or 1.5% compared to Q1 2024, demonstrating a focus on prudent expense management [11] Market Data and Key Metrics Changes - Credit quality remained strong, with non-performing assets to total assets increasing slightly by two basis points to 43 basis points, and net charge-offs remaining low at 10 basis points annualized [6] Company Strategy and Development Direction - The company plans to continue stock buybacks, having repurchased 221,760 shares during the quarter, indicating a commitment to returning capital to shareholders [7] - The management aims to navigate the loan-to-deposit ratio towards a target of 95% to 100%, acknowledging the cyclicality and seasonality of public funds [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties related to interest rates and geopolitical concerns, emphasizing a solid first quarter performance [4][27] - The company maintains a guidance range for fee income growth of 4% to 6% for the year, contingent on mortgage banking performance [15] Other Important Information - The Board of Directors announced a $0.01 increase in the quarterly dividend to $0.22 per share, reflecting a commitment to returning value to shareholders [6] Q&A Session Summary Question: Fee income growth expectations - Management confirmed a guidance range of 4% to 6% for fee income growth, with mortgage banking performance being a potential driver [15] Question: Loan-to-deposit ratio trends - Management indicated a long-term target of 95% to 100% for the loan-to-deposit ratio, acknowledging the seasonal fluctuations in public funds [18][20] Question: Capital return and buyback potential - Management discussed the potential for buybacks, indicating that decisions will be made quarterly based on earnings projections and regulatory capital ratios [22]

Financial Data and Key Metrics Changes - The company reported net income of $22.4 million for Q1 2025, translating to $0.77 per share, indicating a solid start despite economic uncertainties [4] - Net loan growth was $6.5 million, impacted by larger payoffs, while deposits decreased by $100.8 million primarily due to seasonal declines in public funds [5] - The net interest margin (NIM) improved to 3.09% from 2.88% in Q4 2024, reflecting effective loan pricing discipline [5][7] - Nonperforming assets to total assets increased slightly by 2 basis points to 43 basis points, with net charge-offs remaining low at 10 basis points annualized [6] Business Line Data and Key Metrics Changes - Noninterest income decreased by $3.2 million or 12.4% compared to the previous quarter, with a notable decline in contingent income from the insurance line [8] - Noninterest expense decreased by $746,000 or 1.5%, demonstrating the company's focus on prudent expense management [9] Market Data and Key Metrics Changes - The company observed a cautious approach from commercial customers due to uncertainties surrounding tariffs, taxes, and interest rates, impacting loan growth [5] Company Strategy and Development Direction - The company plans to continue stock buybacks, having repurchased 221,760 shares during the quarter, and aims to maintain a disciplined approach to capital deployment [6][16] - The management maintains a loan-to-deposit ratio target of 95% to 105%, acknowledging the seasonal fluctuations in public funds [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties in the economic environment and highlighted a solid first quarter performance [20] - The company expects fee income growth in the mid-single digits for the year, contingent on mortgage banking performance [11] Other Important Information - The Board of Directors announced a $0.01 increase in the quarterly dividend to $0.22 per share, reflecting the company's commitment to returning capital to shareholders [6] Q&A Session Summary Question: Fee income growth expectations - Management confirmed guidance for fee income growth at 4% to 6% for the year, with mortgage banking performance being a potential driver [11] Question: Loan to deposit ratio trends - Management indicated a long-term target of 95% to 100% for the loan-to-deposit ratio, acknowledging the cyclical nature of public funds [12][13] Question: Capital returns and buybacks - Management discussed the potential for continued stock buybacks, emphasizing a cautious approach based on earnings projections and regulatory capital ratios [15][16]

Financial Performance - Univest Financial Corporation reported net income of $22.4 million, or $0.77 diluted earnings per share, for Q1 2025, an increase of 10.3% in net income compared to $20.3 million, or $0.69 diluted earnings per share, in Q1 2024[1]. - For the three months ended March 31, 2025, net income was $22,395,000, an increase of 18.9% compared to $18,941,000 for the previous quarter[33]. - The net income for the three months ended March 31, 2025, was $22,395 thousand, an increase from $20,305 thousand in the same period of 2024[49]. Loan and Lease Activity - Gross loans and leases increased by $254.0 million, or 3.9%, from March 31, 2024, primarily driven by increases in commercial and residential mortgage loans[4]. - Net loans and leases held for investment increased to $6,745,247 thousand, compared to $6,739,492 thousand at the end of the previous quarter, a slight increase of 0.08%[31]. - The company reported a total of $1,034,361 thousand in commercial, financial, and agricultural loans, a slight decrease from $1,037,835 thousand in the previous quarter[31]. - Total commercial loans outstanding as of March 31, 2025, were $5,398,630 thousand, with industries having more than $50 million in outstandings accounting for 82.7% of the portfolio[46]. - The average rate on commercial, financial, and agricultural loans was 6.97% for Q1 2025, down from 7.11% in Q1 2024[44]. Interest Income and Margin - Net interest income for Q1 2025 was $56.8 million, an increase of $5.3 million, or 10.3%, from Q1 2024, driven by higher average loan balances and increased yields[8]. - The net interest margin on a tax-equivalent basis was 3.09% for Q1 2025, up from 2.88% for the same period in 2024[9]. - Net interest income for the three months ended March 31, 2025, was $57,167 thousand, an increase from $51,750 thousand in the same period of 2024[44]. - The net interest margin improved to 3.09% for the three months ended March 31, 2025, up from 2.88% in the same period of 2024[44]. Deposits and Assets - Total deposits decreased by $100.8 million, or 1.5%, from December 31, 2024, but increased by $253.1 million, or 4.0%, from March 31, 2024[5]. - Total assets decreased to $7,975,167 thousand as of March 31, 2025, down from $8,128,417 thousand at December 31, 2024, representing a decline of 1.88%[29]. - As of March 31, 2025, Univest had total assets of approximately $8.0 billion and $5.2 billion in assets under management[25]. - Total assets as of March 31, 2025, were $7,981,043 thousand, compared to $7,696,575 thousand as of March 31, 2024, reflecting a year-over-year increase of approximately 3.7%[49]. Noninterest Income and Expenses - Noninterest income decreased by $3.2 million, or 12.4%, to $22.4 million in Q1 2025 compared to the prior year[10]. - Total noninterest income for the period was $22,415,000, compared to $21,330,000 in the previous quarter, representing a 5.1% increase[33]. Credit Quality - Nonperforming assets totaled $34.0 million at March 31, 2025, compared to $40.0 million at March 31, 2024[20]. - The provision for credit losses was $2.3 million for Q1 2025, slightly down from $2.4 million in Q4 2024[21]. - Nonaccrual loans and leases decreased to $11,126 thousand, down from $12,667 thousand, a reduction of 12.16%[31]. - The allowance for credit losses remained stable at $87,790 thousand, consistent with the previous quarter[31]. - The allowance for credit losses on loans and leases was $87,822 thousand, slightly increasing from $86,812 thousand in the previous quarter[37]. Shareholder Equity and Dividends - Shareholders' equity increased to $903,472 thousand from $887,301 thousand, reflecting an increase of 1.93%[29]. - Univest declared a quarterly cash dividend of $0.22 per share, representing an increase of $0.01 per share, or 4.8%[2]. - Total shareholders' equity increased to $896,811 thousand as of March 31, 2025, from $842,546 thousand a year earlier, reflecting a growth of approximately 6.4%[49]. Operational Efficiency - The efficiency ratio decreased to 61.6%, down from 65.5% in the previous quarter, indicating improved operational efficiency[35]. - The return on average assets improved to 1.14% for the period, up from 0.92% in the previous quarter[35]. - Common equity book value per share increased to $31.19, compared to $30.55 in the previous quarter, reflecting a growth of 2.1%[35].

Core Viewpoint - Univest (UVSP) reported quarterly earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and showing an increase from $0.60 per share a year ago, representing an earnings surprise of 20.31% [1][2] Financial Performance - The company achieved revenues of $79.2 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.91% and increasing from $77.06 million year-over-year [2] - Over the last four quarters, Univest has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance and Outlook - Univest shares have declined approximately 4.7% since the beginning of the year, while the S&P 500 has decreased by 10.1% [3] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $0.60 on $76.78 million in revenues for the upcoming quarter and $2.50 on $312.42 million in revenues for the current fiscal year [7] Industry Context - The Banks - Northeast industry, to which Univest belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a strong potential for outperformance compared to lower-ranked industries [8]