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 ...

Financial Data and Key Metrics Changes - The company reported net income of $16.3 million for Q4 2023, equating to $0.55 per share, with a slight decline in net interest margin (NIM) to 2.84%, down 12 basis points from 2.96% in Q3 2023 [72][73] - Non-interest income decreased by $1.8 million, or 9%, compared to Q4 2022, primarily due to declines in wealth management revenue and BOLI income [74] - Non-interest expense increased by $1.7 million, or 3.6%, compared to Q4 2022, driven by higher FDIC expenses [4] Business Line Data and Key Metrics Changes - Loans contracted by $7.7 million in Q4 but grew by $444 million, or 7.3%, during 2023 [32] - Non-interest-bearing deposits represented 23% of total deposits, up from 22.2% at the end of Q3 [9] - The company expects non-interest income growth of approximately 4% to 6% in 2024, off a base of $76.8 million [10] Market Data and Key Metrics Changes - The company experienced a decrease in brokered CDs by $57.5 million during Q4, contributing to a total deposit contraction of $63.4 million [68] - Public funds decreased by $165 million in Q4, with expectations for continued decline into Q2 2024 before rebuilding [24][25] Company Strategy and Development Direction - The company aims to focus on full relationship customers and expects to opportunistically repurchase shares in 2024 [2][33] - The management anticipates loan growth of approximately 4% to 5% for 2024, with net interest income expected to be flat to down 3% [69] - The company is preparing for a competitive market environment, emphasizing the importance of customer behavior and expectations [12][96] Management's Comments on Operating Environment and Future Outlook - Management noted that while 2023 was challenging, they made significant progress and are optimistic about 2024, expecting some favorable conditions in the second half of the year [91] - The company is closely monitoring credit performance and economic forecasts, with a provision for credit losses expected to be approximately $11 million to $13 million for 2024 [10][69] Other Important Information - The company recorded a provision for credit losses of $1.9 million in Q4, with a coverage ratio of 1.3% [9] - The effective tax rate for 2024 is expected to be approximately 20% to 20.5% [10] Q&A Session Summary Question: What is the impact of potential rate cuts on net interest income? - Management indicated that initial rate cuts would have minimal impact due to the nature of variable rate loans and deposits, with a significant portion of the loan book repricing immediately [35][77] Question: What are the expectations for fee income growth? - Management expects growth in insurance and wealth businesses, with a focus on saleable production in mortgage banking to generate more gain on sale income [43][44] Question: How is the company managing deposit dynamics? - Management noted a slight increase in non-interest-bearing deposits and expects to match loan growth with deposit growth moving forward [68][108] Question: What is the outlook for credit trends in 2024? - Management stated that there are no significant changes expected in credit performance, with a focus on event-driven assessments quarter by quarter [111]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission File Number: 0-7617 UNIVEST FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdic ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 Commission File Number: 0-7617 UNIVEST FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Pennsylvania 23-1886144 (IRS Employer Identification No.) 14 North Main Street, Souderton, Pennsyl ...

Univest Financial Corporation (NASDAQ:UVSP) Q2 2023 Earnings Conference Call July 27, 2023 9:00 AM ET Corporate Participants Jeff Schweitzer - President and Chief Executive Officer Mike Keim - Chief Operating Officer and President, Univest Bank & Trust Brian Richardson - Chief Financial Officer Conference Call Participants Frank Schiraldi - Piper Sandler Michael Perito - KBW Operator Ladies and gentlemen, thank you for standing by, and welcome to the Univest Financial Corporation Second Quarter 2023 Earning ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission File Number: 0-7617 UNIVEST FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) (State or ...

Univest Financial Corporation (NASDAQ:UVSP) Q1 2023 Earnings Conference Call April 29, 2023 9:00 AM ET Company Participants Jeff Schweitzer - President & CEO Mike Keim - COO & President, Univest Bank & Trust Brian Richardson - CFO Conference Call Participants Frank Schiraldi - ABC Matthew Breese - Stephens Jeff Schweitzer Good morning, and thank you to all of our listeners for joining us today. Joining me on the call this morning is Mike Keim, our Chief Operating Officer and President of Univest Bank and Tr ...

Financial Performance - Interest income for 2022 was $252,193,000, an increase from $209,731,000 in 2021, representing a growth of approximately 20.2%[144] - Net interest income after provision for credit losses for 2022 was $206,099,000, compared to $198,515,000 in 2021, reflecting an increase of about 3.0%[144] - Noninterest income decreased to $77,885,000 in 2022 from $83,224,000 in 2021, a decline of approximately 6.0%[144] - The net income for 2022 was $78,120,000, a decrease from $91,801,000 in 2021, representing a decline of approximately 14.9%[144] - Diluted earnings per share for 2022 were $2.64, down from $3.11 in 2021, reflecting a decline of 14.7%[147] - Total comprehensive income for 2022 was $39,298,000, down from $121,661,000 in 2021, reflecting a decrease of 67.7%[263] Credit Losses and Provisions - The provision for credit losses in 2022 was $12,198,000, a reversal from a provision of $(10,132,000) in 2021, indicating a significant change in credit loss expectations[144] - The allowance for credit losses on loans and leases was $79.0 million as of December 31, 2022, representing 1.29% of loans and leases held for investment[163] - The company experienced a net loan and lease charge-off of $3.9 million for the year ended December 31, 2022, an increase from $213 thousand in 2021[162] - Total net charge-offs for 2022 were $3.9 million, representing 0.07% of average loans, compared to $213,000 in 2021[202] Assets and Liabilities - Total assets at year-end 2022 were $7,222,016,000, slightly up from $7,122,421,000 in 2021, marking an increase of about 1.4%[144] - Total assets increased to $7,222.0 million as of December 31, 2022, compared to $7,122.4 million in 2021, marking a growth of approximately 1.4%[259] - Total deposits decreased to $5,913.5 million in 2022 from $6,055.1 million in 2021, a decline of about 2.3%[259] - Total borrowings increased by $226.4 million from December 31, 2021, driven by a $125.0 million increase in short-term FHLB overnight borrowings[210] Operational Efficiency - The efficiency ratio for 2022 was 62.4%, compared to 60.9% in 2021, indicating a decrease in operational efficiency[144] - The return on average assets for 2022 was 1.12%, down from 1.38% in 2021, reflecting a decline in profitability[144] - The Corporation's Tier 1 risk-based capital ratio was 10.37% as of December 31, 2022, down from 11.08% in 2021, while the total risk-based capital ratio decreased to 13.67% from 13.77%[220] Noninterest Expenses - Noninterest expense for the year ended December 31, 2022 was $186.8 million, an increase of $19.4 million, or 11.6%, compared to 2021[174] - Salaries, benefits, and commissions increased by $11.6 million, or 11.1%, reflecting expansion efforts and annual merit increases[174] - Other expenses increased by $2.6 million, or 11.3%, driven by higher travel and entertainment expenses[177] Digital Transformation and Investments - The development of a comprehensive digital platform incurred expenses of $3.8 million, or $0.10 diluted earnings per share, in 2022[148] - Data processing expense rose by $2.5 million, or 19.4%, due to investments in technology and support for a digital transformation initiative[175] - Professional fees increased by $1.6 million, or 21.4%, primarily for consulting fees related to the digital transformation initiative[176] Market and Economic Conditions - The Corporation anticipates a greater amount of liabilities repricing than assets in the next twelve months, indicating potential interest rate risk[226] - A simulation indicated that a +200 basis points rate shock could increase net interest income by $7.93 million (3.16%) over the next 12 months[230] - The Corporation's loan portfolio is managed with strict adherence to underwriting standards, focusing on borrower capacity and collateral sufficiency[231] Shareholder Equity and Dividends - Shareholders' equity increased by $2.7 million to $776.5 million, primarily due to an increase in retained earnings of $53.5 million[214] - Cash dividends declared increased to $0.83 per share in 2022 from $0.80 per share in 2021, totaling $24.40 million[269] Asset Quality - Nonaccrual loans and leases decreased to $13.4 million in 2022 from $33.3 million in 2021, indicating improved asset quality[195] - The ratio of allowance for credit losses to nonaccrual loans and leases was 591.66%, indicating strong coverage for potential losses[199] Revenue Recognition and Accounting Policies - The Corporation's revenue consists of net interest income and noninterest income, recognized when obligations under contracts with customers are satisfied[328] - The Corporation recognizes all derivative financial instruments at fair value, with changes in fair value recorded in income or other comprehensive income depending on the nature of the hedge[317][318]