Financial Data and Key Metrics Changes - The company reported net income of $18.2 million for the second quarter, equating to $0.62 per share [16] - Reported net interest margin (NIM) was 2.84%, a decrease of 4 basis points from the previous quarter [4] - Core NIM, excluding excess liquidity, was 2.86%, down 5 basis points compared to the first quarter [4] - Non-interest income increased by $1.1 million or 5.8% compared to the second quarter of 2023 [5] - Non-interest expenses decreased by $1.1 million or 2.2% year-over-year [22] Business Line Data and Key Metrics Changes - Loan growth was approximately $106 million or 6.4% annualized during the second quarter [16] - Non-interest income growth guidance for the year was increased from 4%-6% to 7%-9% [7] - The provision for credit losses was reduced from $11 million to $13 million to a new range of $8 million to $10 million [7] Market Data and Key Metrics Changes - Deposits grew by $90 million or 5.6% annualized during the quarter, despite a decrease in brokered and public fund deposits [16][20] - The company experienced a decrease in nonperforming assets and relative stability in loan delinquencies [21] Company Strategy and Development Direction - The company plans to maintain its investment portfolio at 6%-8% of total assets [20] - The focus remains on C&I loans, which are expected to drive growth moving forward [33] - The company aims to manage expenses prudently to mitigate revenue pressures [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about NIM stabilization and potential expansion in the second half of the year [4] - The company anticipates continued solid loan pipelines and expects to generate excess capital for stock buybacks [28] - Competition for loans and deposits remains high, with management noting that deposit pricing is particularly competitive [34] Other Important Information - The company repurchased approximately 191,000 shares at an average cost of $21.17 during the quarter [6] - The tangible book value per share increased by $0.47 or 2.1% [6] Q&A Session Summary Question: Expectations for deposit growth in the back half of the year - Management indicated that they expect to generate excess capital and deploy it into buybacks, with solid loan pipelines supporting this [28] Question: Loan growth pipeline and funding expectations - The loan pipeline has expanded, with expectations for similar net loan growth in Q3 as seen in Q2, primarily in C&I loans [33] Question: Competition trends in loan and deposit markets - Competition remains strong, particularly for high-quality credits, with deposit pricing being more competitive than loan pricing [34]

Financial Performance - Net income for Q2 2024 was $18.1 million, or $0.62 diluted earnings per share, compared to $16.8 million, or $0.57 diluted earnings per share in Q2 2023, representing a 7.7% increase in net income [2]. - Net income for the period was $18,107,000, down from $20,305,000, reflecting a decrease of 10.8% year-over-year [28]. - The company declared dividends of $0.21 per share, unchanged from the previous quarter and the same period last year [28]. - The company declared a quarterly cash dividend of $0.21 per share, payable on August 21, 2024, to shareholders of record as of August 7, 2024 [41]. Loan and Lease Growth - Gross loans and leases increased by $105.8 million, or 1.6% (6.4% annualized) from Q1 2024, and $117.6 million, or 1.8% (3.6% annualized) from Q4 2023, driven by growth in commercial and residential mortgage loans [4]. - Total loans and leases held for investment increased to $6,684,837 million as of June 30, 2024, up from $6,579,086 million in the previous quarter, representing a growth of 1.6% [43]. - Net loans and leases held for investment rose to $6,599,092 million, compared to $6,493,454 million in the prior quarter, reflecting an increase of 1.6% [43]. - Total commercial loans outstanding reached $5,275,078,000, with the largest sector being industries with over $50 million in outstandings at 84.9% of the portfolio [46]. Deposit Growth - Total deposits rose by $90.0 million, or 1.4% (5.6% annualized) from Q1 2024, and $119.5 million, or 1.9% (3.8% annualized) from Q4 2023, primarily due to increases in commercial and consumer deposits [5]. - Total deposits increased to $6,353,752 million from $6,303,854 million in March 2024, reflecting a growth of 0.8% [27]. Interest Income and Expenses - Net interest income for Q2 2024 was $51.0 million, a decrease of $3.3 million, or 6.1%, from Q2 2023, reflecting pressure on deposit costs [7]. - Interest income for the period ended June 30, 2024, was $99,832,000, an increase from $90,139,000 for the same period last year, representing a growth of 10.5% [28]. - Total noninterest income decreased to $20,980,000 from $25,595,000, a decline of 18% compared to the previous year [28]. - Noninterest expense for Q2 2024 was $48.7 million, a decrease of $1.1 million, or 2.2%, from Q2 2023 [16]. Asset Management - Total assets as of June 30, 2024, were approximately $7.9 billion, with $5.0 billion in assets under management [23]. - Total assets increased to $7,855,446 million as of June 30, 2024, up from $7,746,568 million in March 2024, representing a growth of 1.4% [26]. - Cash and cash equivalents decreased to $190,911 million from $201,606 million in March 2024, a decline of 3.4% [26]. - Total liabilities stood at $6,876,968 thousand, with total interest-bearing liabilities at $5,397,431 thousand [31]. Credit Quality - The provision for credit losses was $707 thousand for Q2 2024, down from $1.4 million in Q1 2024 and $3.4 million in Q2 2023 [20]. - Nonperforming assets decreased to $36.6 million as of June 30, 2024, down from $40.0 million at March 31, 2024, and $34.5 million at June 30, 2023 [39]. - Net loan and lease charge-offs for the quarter were $809 million, with an annualized charge-off rate of 0.05% [43]. - The allowance for credit losses on loans and leases was $85,745 million, slightly up from $85,632 million in the previous quarter, showing a marginal increase of 0.1% [43]. Shareholder Equity - Shareholders' equity reached $844,572 million, slightly up from $842,546 million in March 2024, indicating a growth of 0.2% [27]. - Total shareholders' equity rose to $844,572,000 from $806,709,000, reflecting an increase of about 4.7% year-over-year [45]. - Common equity book value per share as of June 30, 2024, was $29.26, compared to $28.76 as of March 31, 2024 [44]. Efficiency and Ratios - The net interest margin for Q2 2024 was 2.84%, down from 3.14% in Q2 2023 [12]. - Efficiency ratio for the quarter ended June 30, 2024, was 67.1%, up from 64.6% for the quarter ended March 31, 2024 [44]. - Return on average assets for the quarter ended June 30, 2024, was 0.94%, down from 1.06% for the quarter ended March 31, 2024 [44]. - Tier 1 leverage ratio as of June 30, 2024, was 9.74%, an increase from 9.65% as of March 31, 2024 [44].

This quarterly report represents an earnings surprise of 19.61%. A quarter ago, it was expected that this holding company for Univest Bank and Trust Co. Would post earnings of $0.48 per share when it actually produced earnings of $0.60, delivering a surprise of 25%. Univest, which belongs to the Zacks Banks - Northeast industry, posted revenues of $72.01 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.68%. This compares to year-ago revenues of $74.16 million. The company h ...

Noninterest Income Other income decreased $477 thousand, or 39.0%, for the quarter ended June 30, 2024 compared to the three months ended June 30, 2023. Fees on risk participation agreements for interest rate swaps decreased $710 thousand due to reduced customer demand. Additionally, the second quarter of 2023 included a loss of $250 thousand on the sale of an interest in a shared national credit. Tax Provision Net loan and lease charge-offs were $809 thousand for the three months ended June 30, 2024 compar ...

Pre-registration Telephone participants may avoid any delays by pre-registering for the call using the following link. Replay Dial in number: 1-866-813-9403 Replay Code: 310450 Available until: September 23, 2024 SOUDERTON, Pa., July 08, 2024 (GLOBE NEWSWIRE) -- Univest Financial Corporation (Nasdaq: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investment and equipment finance subsidiaries, announced it will host a conference call to discuss its second quarter 2024 earnings on Thur ...

SOUDERTON, Pa., July 08, 2024 (GLOBE NEWSWIRE) -- Univest Financial Corporation (Nasdaq: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investment and equipment finance subsidiaries, announced it will host a conference call to discuss its second quarter 2024 earnings on Thursday, July 25, 2024 at 9:00 a.m. Earnings are scheduled to be released after the close of the market on Wednesday, July 24, 2024. Pre-registration Telephone participants may avoid any delays by pre-registering for ...

Financial Performance - The Corporation reported net income of $20.3 million for Q1 2024, a decrease of 3.5% from $21.0 million in Q1 2023[153]. - Diluted earnings per share for Q1 2024 were $0.69, down from $0.71 in Q1 2023, reflecting a 2.8% decline[153]. - Return on average assets decreased to 1.06% in Q1 2024 from 1.18% in Q1 2023, a decline of 12 basis points[153]. - Return on average equity fell to 9.69% in Q1 2024, down from 10.81% in Q1 2023, a decrease of 112 basis points[153]. - The Banking segment reported pre-tax income of $25.0 million for the three months ended March 31, 2024, compared to $24.7 million for the same period in 2023[201]. Net Interest Income and Margin - Net interest income on a tax-equivalent basis decreased by $7.9 million, or 13.3%, to $51.8 million in Q1 2024 compared to $59.7 million in Q1 2023[156]. - The tax-equivalent net interest margin fell to 2.88% in Q1 2024 from 3.58% in Q1 2023, impacted by increased funding costs[157]. - The net interest margin decreased to 2.88% in Q1 2024 from 3.58% in Q1 2023, reflecting a tighter interest spread environment[158]. - Total interest expense increased to $23.21 million in Q1 2024, up from $9.45 million in Q1 2023, reflecting rising funding costs[162]. Asset and Liability Management - Total assets increased to $7.70 billion as of March 31, 2024, compared to $7.22 billion in the same period of 2023, reflecting a growth of 6.6%[158]. - Total outstanding commercial loans amounted to $5,202,488 thousand as of March 31, 2024, with 84.9% concentrated in industries with over $50 million in outstandings[190]. - Total deposits increased by $29.6 million, or 0.5%, to $6,405,358 thousand from December 31, 2023, primarily due to increases in consumer and brokered deposits[196]. - Total borrowings decreased by $61.4 million, or 13.2%, primarily due to pay-downs of long-term FHLB advances[197]. Noninterest Income - Noninterest income for the three months ended March 31, 2024, was $25.60 million, an increase of $5.91 million, or 30.1%, from $19.68 million in the same period of 2023[167]. - Other service fee income surged by $3.34 million, or 108.6%, primarily due to gains from the sale of mortgage servicing rights associated with $591.1 million of serviced loans[167]. - Investment advisory commission and fee income increased by $442 thousand, or 9.3%, for the three months ended March 31, 2024, primarily due to new customer relationships and appreciation of assets under management[169]. - Service charges on deposit accounts rose by $324 thousand, or 20.9%, for the same period, mainly driven by increased treasury management income[170]. - The Wealth Management segment's noninterest income rose to $7.4 million for the three months ended March 31, 2024, up from $6.8 million in the prior year[202]. - The Insurance segment reported noninterest income of $7.3 million for the three months ended March 31, 2024, compared to $6.7 million in the same period of 2023[203]. Credit Quality - The provision for credit losses decreased to $1.4 million in Q1 2024 from $3.4 million in Q1 2023, indicating improved credit quality[164]. - The allowance for credit losses as a percentage of loans and leases held for investment remained stable at 1.30% as of March 31, 2024, consistent with the previous quarter[165]. - Net loan and lease charge-offs for the three months ended March 31, 2024 were $1.4 million, a decrease from $2.8 million in the same period last year[185]. - Nonaccrual loans and leases were $20.4 million at March 31, 2024, with a related allowance for credit losses of $2.0 million[183]. Capital and Liquidity - The Corporation aims to maintain adequate levels of capital and liquidity while limiting exposure to credit and interest rate risk[152]. - As of March 31, 2024, the Corporation's total capital to risk-weighted assets ratio was 14.11%, exceeding the regulatory requirement of 8.00%[208]. - The Bank's Tier 1 capital to risk-weighted assets ratio was 10.94% as of March 31, 2024, above the minimum requirement of 6.00%[208]. - The Corporation maintained unencumbered cash and cash equivalents of $192.6 million at March 31, 2024, ensuring liquidity[215]. - Committed borrowing capacity from the Federal Home Loan Bank and Federal Reserve Bank was $3.4 billion, with $2.1 billion available as of March 31, 2024[215]. Operational Expenses - Noninterest expense for the three months ended March 31, 2024 was $50.1 million, an increase of $545 thousand, or 1.1%, from the same period in 2023[173]. - Data processing expenses increased by $466 thousand, or 11.6%, primarily due to investments in technology and general price increases[174]. Market and Regulatory Environment - The Corporation's financial results are subject to various risks, including economic conditions and regulatory changes[146]. - No material changes in the Corporation's market risk occurred during the period ended March 31, 2024[221]. - The Corporation adopted the transition guidance and the 2020 CECL IFR relief, applying these effects to regulatory capital[211].

Univest Financial Corporation (NASDAQ:UVSP) Q1 2024 Earnings Conference Call April 25, 2024 9:00 AM ET Company Participants Jeff Schweitzer - President and CEO Mike Keim - President and COO, Univest Bank and Trust Brian Richardson - CFO Conference Call Participants Operator Welcome to the Univest Financial Corporation First Quarter 2024 Earnings Call. My name is Carla and I will be coordinating your call today. [Operator Instructions]. I will now turn the call over to your host, Jeff Schweitzer, President a ...

Financial Performance - Net income for Q1 2024 was $20.3 million, or $0.69 diluted earnings per share, a decrease from $21.0 million, or $0.71 per share in Q1 2023[1] - Noninterest income for Q1 2024 was $25.6 million, an increase of $5.9 million, or 30.1%, from the prior year[9] - For the three months ended March 31, 2024, net income was $20,305,000, an increase of 25.3% compared to $16,254,000 for the previous quarter[32] - The company reported net income of $20,305 thousand for the three months ended March 31, 2024, compared to $21,034 thousand in the same period of 2023, indicating a decrease of approximately 3.5%[48] Loans and Leases - Gross loans and leases increased by $339.3 million, or 5.4%, from March 31, 2023, primarily due to increases in commercial real estate and residential mortgage loans[3] - Net loans and leases held for investment increased to $6,493,454 thousand, up from $6,481,827 thousand, reflecting a growth of 0.18%[29] - Nonperforming loans and leases totaled $20,631 thousand, a decrease from $21,061 thousand, indicating a reduction of 2.05%[29] - The ratio of nonperforming loans and leases to loans and leases held for investment remained stable at 0.31%[29] - Total commercial loans outstanding reached $5,202,488 thousand, with industries having more than $50 million in outstandings accounting for 84.9% of the commercial loan portfolio[45] Deposits and Assets - Total deposits rose by $570.7 million, or 9.8%, from March 31, 2023, driven by increases in consumer, public funds, and brokered deposits[4] - Total deposits rose slightly to $6,405,358 thousand from $6,375,781 thousand, marking an increase of 0.46%[27] - Total assets decreased to $7,746,568 thousand as of March 31, 2024, from $7,780,628 thousand at December 31, 2023, representing a decline of 0.43%[27] - Total assets increased to $7,696,575 thousand as of March 31, 2024, compared to $7,219,211 thousand in the same period of 2023, reflecting a growth of approximately 6.6%[41] Interest Income and Expenses - Net interest income decreased by $7.9 million, or 13.2%, from Q1 2023, attributed to higher cost of funds and interest-bearing liabilities[7] - Net interest income for the three months ended March 31, 2024, was $51,750 thousand, compared to $53,017 thousand for the previous quarter[36] - The net interest margin decreased to 2.88% for Q1 2024 from 3.58% in Q1 2023, representing a decline of 70 basis points[41] - The gross loans and leases totaled $6,577,365 thousand, with a net interest spread of 1.94% for Q1 2024, down from 2.80% in Q1 2023[41] Credit Losses and Allowances - The provision for credit losses was $1.4 million for Q1 2024, compared to $3.4 million in Q1 2023[20] - The allowance for credit losses on loans and leases was $85,632 thousand, up from $85,387 thousand, showing an increase of 0.29%[29] - The allowance for credit losses on loans and leases was $86,495 thousand as of March 31, 2024, compared to $84,386 thousand in the previous quarter[36] Shareholder Returns - The Corporation declared a quarterly cash dividend of $0.21 per share, payable on May 22, 2024[21] - Dividends declared per share remained stable at $0.21, consistent with the previous quarter[32] - Return on average assets increased to 1.06%, up from 0.82% in the previous quarter, reflecting enhanced profitability[34] - Return on average shareholders' equity rose to 9.69%, compared to 7.91% in the previous quarter, showing improved returns for shareholders[34] Efficiency and Ratios - The efficiency ratio improved to 64.6%, compared to 68.3% in the previous quarter, indicating better cost management[34] - The average interest-earning assets to average interest-bearing liabilities ratio was 135.39% for Q1 2024, down from 153.72% in Q1 2023[41] - Tier 1 leverage ratio improved to 9.65%, compared to 9.36% in the previous quarter, indicating stronger capital position[34]

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, 2023 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 ...