Univest Financial Corporation (NASDAQ:UVSP) Q2 2022 Earnings Conference Call July 28, 2022 9:00 AM ET Company Participants Jeff Schweitzer - President and Chief Executive Officer Mike Keim - Chief Operating Officer, and President of Univest Bank and Trust Brian Richardson - Chief Financial Officer Conference Call Participants Tim Switzer - KBW Frank Schiraldi - Piper Sandler Samuel Varga - Stephens Operator Good morning. And thank you for attending today's Univest Financial Corporation to hold Second Quarte ...

Financial Performance - The Corporation reported net income of $20.3 million for Q1 2022, a decrease of 37.7% from $32.6 million in Q1 2021[149] - Diluted earnings per share for Q1 2022 were $0.68, down from $1.11 in Q1 2021, reflecting a decline of 38.7%[149] - The return on average assets decreased to 1.17% in Q1 2022 from 2.07% in Q1 2021, a drop of 90 basis points[148] - Noninterest income decreased to $20,470 thousand for the three months ended March 31, 2022, down $2,780 thousand or 12.0% from $23,250 thousand in 2021[164] - The net gain on mortgage banking activities decreased by $4.0 million, or 67.5%, for the three months ended March 31, 2022, primarily due to a decrease in loan sales[165] - The Banking segment reported pre-tax income of $22.8 million for the three months ended March 31, 2022, down from $40.0 million in the same period of 2021[196] - The Insurance segment reported pre-tax income of $1.7 million for the three months ended March 31, 2022, compared to $1.6 million in 2021, attributed to revenue from an acquired insurance agency[198] Interest Income and Margin - Net interest income on a tax-equivalent basis increased by 2.6% to $47.2 million in Q1 2022, compared to $46.0 million in Q1 2021[153] - The net interest margin on a tax-equivalent basis was 2.89% for Q1 2022, down from 3.12% in Q1 2021, a reduction of 23 basis points[154] - Net interest income for the three months ended March 31, 2022, was $47,169 thousand, an increase of $1,215 thousand from $45,954 thousand in 2021[158] - The excess liquidity reduced the net interest margin by approximately 33 basis points in Q1 2022, compared to 11 basis points in Q1 2021[154] Assets and Liabilities - Total assets increased to $7,047,980 thousand as of March 31, 2022, compared to $6,383,463 thousand in 2021, reflecting a growth of 10.4%[156] - Total liabilities increased to $6,273,622 thousand as of March 31, 2022, compared to $5,683,727 thousand in 2021, marking a growth of 10.4%[156] - Total outstanding commercial loans as of March 31, 2022, amounted to $4,446,791 thousand, with a loan portfolio concentration of 78.6% in industries with over $50 million in outstandings[187] - Total liabilities as of March 31, 2022, were $6,333,885 thousand, a decrease of $14,742 thousand, or 0.2%, from December 31, 2021[190] Equity and Retained Earnings - Shareholders' equity reached $774,358 thousand, up from $699,736 thousand in the previous year, indicating a growth of 10.7%[156] - Retained earnings increased by $14.2 million to $389,332 thousand as of March 31, 2022, primarily due to net income of $20.3 million[194] Credit Losses and Asset Quality - The Corporation recorded a reversal of provision for credit losses of $3.5 million in Q1 2022, compared to $11.3 million in Q1 2021[150] - The provision for credit losses was a reversal of $3.5 million for the three months ended March 31, 2022, compared to a reversal of $11.3 million in 2021[162] - Nonaccrual loans and leases decreased to $30.9 million from $33.3 million at December 31, 2021, indicating improved asset quality[181] - The allowance for credit losses on loans and leases was $68.3 million, representing 1.26% of loans and leases held for investment[186] Expenses - Noninterest expense for the three months ended March 31, 2022, was $45.4 million, an increase of $5.9 million, or 14.9%, from the same period in 2021[169] - Salaries, benefits, and commissions increased by $3.5 million, or 14.0%, reflecting investments in revenue-producing staff and new hires in the Mortgage Banking line[170] - Data processing expenses rose by $517 thousand, or 17.0%, due to investments in loan origination solutions and digital transformation initiatives[171] Capital Adequacy - The Corporation maintained compliance with capital adequacy requirements, with Tier 1 Capital to Risk Weighted Assets exceeding 8.50% as of March 31, 2022[200] - As of March 31, 2022, the Corporation's total capital to risk-weighted assets ratio was 13.73%, compared to 13.77% at December 31, 2021[203] - The Bank's Tier 1 capital to risk-weighted assets ratio was 10.76% as of March 31, 2022, down from 10.65% at December 31, 2021[203] - The Corporation's Tier 1 common capital to risk-weighted assets ratio was 11.07% as of March 31, 2022, unchanged from the previous quarter[203] - The Corporation's Tier 1 capital to average assets ratio was 9.35% as of March 31, 2022, compared to 9.13% at December 31, 2021[203] - The Bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action as of March 31, 2022[203] Risk Management - The Corporation's ability to manage market risk, credit risk, and operational risk remains a critical focus amid ongoing economic uncertainties[140] - The Corporation's wealth management revenues may decline with market turmoil, indicating potential risks to future earnings[147] - The Corporation manages liquidity risk by monitoring liquidity sources and funding needs daily, with a contingency funding plan in place[210] - No material changes in the Corporation's market risk occurred during the current period[215] Funding Sources - Core deposits remain the largest funding source for the Corporation, facing increased competition from various financial market participants[211] - The Corporation utilizes a mix of short-term and long-term wholesale funding, including federal funds purchases and secured borrowing lines[212] - Commitments to extend credit are the Bank's most significant commitment, which may not represent future cash requirements[214]

Univest Financial Corporation (NASDAQ:UVSP) Q1 2022 Results Conference Call April 28, 2022 9:00 AM ET Company Participants Jeff Schweitzer - President and CEO Mike Keim - COO and President of Univest Bank and Trust Brian Richardson - CFO Conference Call Participants Frank Schiraldi - Piper Sandler Tim Switzer - KBW Brody Preston - Stephens Chris Reynolds - Neuberger Berman Jeff Schweitzer Good morning, and thank you to all of our listeners for joining us. Joining me on the call this morning is Mike Keim, ou ...

Economic Conditions - The unemployment rate decreased from 7.70% at December 31, 2020, to 6.29% at December 31, 2021, suggesting an improvement in the labor market conditions[139]. - The Corporation's economic forecast for GDP rates showed a slight decrease from 2.29% in 2020 to 2.13% in 2021, indicating a modest economic growth outlook[139]. - The House Price Index (HPI) increased by 3.04% in 2021, a significant improvement compared to a decrease of (0.16)% in 2020, reflecting a positive trend in the housing market[139]. - The Corporation's sensitivity analysis indicates that a 100 basis point increase in unemployment rates could increase the ACL by $10,643,000, highlighting the impact of economic factors on credit loss estimates[141]. Credit Losses and Allowance - The Corporation's Allowance for Credit Losses (ACL) on loans and leases decreased from $83,044,000 at December 31, 2020, to $71,924,000 at December 31, 2021, reflecting a provision attributed to economic conditions of $(18,339,000)[138]. - The provision attributed to other impacts in the ACL calculation was $7,432,000, indicating adjustments made for factors beyond economic conditions[138]. - The allowance for credit losses on loans and leases was $71.9 million, representing 1.35% of loans and leases held for investment, down from 1.56% in 2020[206]. - The allowance for credit losses to nonaccrual loans and leases ratio was 216.57%, down from 262.03% in 2020[206]. - The reversal of provision for credit losses for the year ended December 31, 2021 was $10.1 million, compared to provisions of $40.8 million and $8.5 million for 2020 and 2019, respectively[168]. Financial Performance - The Corporation reported net income of $91.8 million for 2021, a 95.7% increase from $46.9 million in 2020, with diluted earnings per share rising to $3.11 from $1.60[145]. - Net interest income after provision for credit losses increased to $198.5 million in 2021, compared to $133.6 million in 2020, reflecting a significant recovery in financial performance[144]. - The average return on average assets improved to 1.38% in 2021 from 0.78% in 2020, indicating enhanced asset utilization[145]. - Noninterest income rose to $83.2 million in 2021, up from $78.3 million in 2020, reflecting growth in service fees and other income sources[144]. - Total comprehensive income for 2021 was $121,661,000, compared to $56,072,000 in 2020, indicating a significant increase of 116.5%[274]. Asset and Liability Management - The Corporation's total assets increased to $7.1 billion in 2021, up from $6.3 billion in 2020, demonstrating growth in the balance sheet[144]. - Cash and cash equivalents at year-end 2021 were $890.2 million, a significant increase from $219.9 million in 2020, indicating strong liquidity[144]. - Total liabilities as of December 31, 2021 were $5,920,987 thousand, with total shareholders' equity of $734,456 thousand[158]. - The total shareholders' equity increased by $81.3 million, or 11.7%, from December 31, 2020, reaching $773.8 million[221]. - The Corporation's Tier 1 risk-based capital ratio improved to 11.08% in 2021 from 10.76% in 2020, while the total risk-based capital ratio decreased to 13.77% from 15.31%[227]. Loan and Deposit Growth - Total deposits increased by $812.4 million, or 15.5%, from December 31, 2020, primarily due to increases in commercial, consumer, and public fund deposits[216]. - The total average deposits for 2021 were $5,591.2 million, compared to $4,850.9 million in 2020[217]. - Noninterest-bearing deposits increased to $1,891,330 thousand in 2021, contributing to the overall deposit growth[158]. - The total outstanding balance of commercial loans, excluding PPP loans, was $4.37 billion, with 80.7% concentrated in industries with over $50 million in outstandings[209]. Operational Efficiency - The efficiency ratio improved slightly to 60.9% in 2021 from 60.6% in 2020, suggesting better cost management relative to revenue[145]. - Noninterest expense for the year ended December 31, 2021 was $167.4 million, an increase of $12.4 million, or 8.0%, compared to 2020[181]. - Salaries, benefits, and commissions increased by $11.0 million, or 11.8%, for the year ended December 31, 2021, reflecting continued investment in revenue-producing staff[182]. - Professional fees rose by $2.3 million, or 44.0%, primarily due to consulting fees for Diversity, Equity, and Inclusion programs[183]. Strategic Acquisitions - The acquisition of Paul I. Sheaffer Insurance Agency was completed for $3.8 million in cash, with potential additional payments of up to $1.9 million based on EBITDA performance over three years[153][154]. - The company made a net cash payment of $3.820 million due to acquisitions in 2021, marking a strategic move towards growth through acquisitions[279]. Risk Management - The Corporation's strategy for credit risk management includes well-defined credit policies and regular monitoring of loan performance[201]. - Management utilizes a discounted cash flow (DCF) model to calculate the present value of expected cash flows for pools of loans and leases, incorporating factors such as probability of default and loss given default[312][316]. - A loan or lease is considered impaired when it is probable that the Bank will be unable to collect future payments, with an impairment analysis performed quarterly[328].

Univest Financial Corporation (NASDAQ:UVSP) Q4 2021 Earnings Conference Call January 27, 2022 9:00 AM ET Company Participants Jeffrey Schweitzer – President and Chief Executive Officer Michael Keim – Chief Operating Officer and President Brian Richardson – Chief Financial Officer Conference Call Participants Michael Thereto – Private Investor Frank Schiraldi – Piper Sandler Operator Hello, and welcome to the Univest Financial Corporation Fourth Quarter and Year-End 2021 Earnings Call. My name is Alex an ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Contents 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, 2021 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 ...

Financial Data and Key Metrics Changes - The company reported net income of $20.9 million for Q3 2021, equating to $0.71 per share, reflecting strong loan production despite customer payoffs [7] - Net loan growth was $92 million or 7.3% annualized during the quarter, with total growth over the past 12 months reaching $456 million or 9.7%, excluding PPP loans [7] - The reported margin was 3.1%, down 4 basis points from the previous quarter, while the net interest margin (NIM) was negatively impacted by 27 basis points due to excess liquidity [9][10] - The allowance for credit loss coverage ratio, excluding PPP loans, was 1.36% at September 30, down from 1.41% at June 30 and 1.95% at September 30, 2020 [12] Business Line Data and Key Metrics Changes - Investment advisory income increased by 19.8% during the quarter and 19.1% for the first nine months compared to the same period last year [8] - Noninterest expense rose by $4.7 million or 12.3% for the quarter and $10.8 million or 9.5% for the first nine months compared to 2020 [13] Market Data and Key Metrics Changes - Public funds increased by approximately $350 million year-over-year, attributed to excess liquidity in the marketplace from various stimulus initiatives [21] - The company experienced net recoveries of $75,000 during the quarter, with net charge-offs for the first nine months totaling $456,000 or 1 basis point on an annualized basis [12] Company Strategy and Development Direction - The company is focused on aggressive hiring of revenue-producing talent across various lines of business, including commercial and wealth management [32][33] - The company expects to finish the year with net interest income growth on the higher end of the previously guided range of 2% to 4%, and noninterest income growth is now expected to be 4% to 5% for the year [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the success of customers in terms of payoffs is a significant factor moderating net loan growth, but new loan production remains strong [35] - The company anticipates that excess liquidity levels will decrease as loan growth continues and expects a seasonal decline in public funds [21] Other Important Information - The company has incurred $1.4 million in expenses related to various initiatives, including DE&I and treasury management enhancements, with an expectation that these costs will not continue into 2022 [16][28] Q&A Session Summary Question: Was the surge in deposits this quarter stronger than normal seasonality? - Management confirmed that the growth in public funds was outsized compared to prior years, driven by excess liquidity from stimulus initiatives, and expects a decline in the first and second quarters of next year [21][22] Question: What are the main drivers behind the core NIM expansion? - Management indicated a reduction in deposit costs and the redemption of subordinated debt contributed to the NIM expansion [23] Question: What is the current competitive landscape for loans? - Management acknowledged aggressive competition but emphasized their ability to maintain appropriate pricing levels due to a strong team and sourcing capabilities [24] Question: How much of the training initiative costs occurred this quarter? - Management clarified that about $500,000 was related to various initiatives this quarter, and they do not expect these costs to repeat in 2022 [27][28] Question: What is the size of the loan pipeline and expected growth? - Management reported a strong loan pipeline, with new loan production remaining robust, although customer payoffs are moderating net loan growth [34][35] Question: How are gain on sale margins holding up for the mortgage pipeline? - Management expects gain on sale margins to remain consistent with Q3 levels, with seasonal impacts anticipated due to rising rates [36]

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, 2021 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 o ...

Univest Financial Corporation (NASDAQ:UVSP) Q2 2021 Earnings Conference Call July 29, 2021 9:00 AM ET Company Participants Jeffrey Schweitzer - President and Chief Executive Officer Brian Richardson - Senior Executive Vice President and Chief Financial Officer Mike Keim - President, Univest Bank and Trust Co. Conference Call Participants Frank Schiraldi - Sandler O'Neill & Partners Tim Switzer - KBW Matthew Breese - Piper Jaffray Operator Good morning and welcome to the Univest Financial Corporation Seco ...

[Part I. Financial Information](index=3&type=section&id=Part%20I%2E%20Financial%20Information) [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2021 show net income significantly increased to $32.6 million, driven by a reversal of the provision for credit losses, with total assets growing to $6.42 billion [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets increased to $6.42 billion, primarily due to a $119.7 million rise in net loans and leases, while total liabilities grew to $5.69 billion from deposit growth Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | At March 31, 2021 | At December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$6,416,665** | **$6,336,496** | | Net loans and leases held for investment | $5,343,509 | $5,223,797 | | Cash and cash equivalents | $187,317 | $219,858 | | **Total Liabilities** | **$5,694,210** | **$5,644,024** | | Total deposits | $5,311,592 | $5,242,715 | | **Total Shareholders' Equity** | **$722,455** | **$692,472** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q1 2021, net income reached $32.6 million, a substantial increase from $838 thousand in Q1 2020, primarily due to an $11.3 million reversal of provision for credit losses and growth in net interest and noninterest income Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net Interest Income | $45,414 | $42,468 | | (Reversal of provision) provision for credit losses | $(11,283) | $21,843 | | Total Noninterest Income | $23,250 | $18,384 | | Total Noninterest Expense | $39,540 | $38,777 | | **Net Income** | **$32,603** | **$838** | | **Diluted EPS** | **$1.11** | **$0.03** | - The significant improvement in net income was largely due to a reversal of provision for credit losses of **$11.3 million** in Q1 2021, versus a provision of **$21.8 million** in Q1 2020[12](index=12&type=chunk) - Net gain on mortgage banking activities more than doubled, increasing to **$5.9 million** in Q1 2021 from **$2.7 million** in Q1 2020[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2021, net cash provided by operating activities was $29.9 million, while net cash used in investing activities was $109.8 million, resulting in a net decrease in cash and cash equivalents of $32.5 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,873 | $11,052 | | Net cash used in investing activities | $(109,822) | $(50,560) | | Net cash provided by financing activities | $47,408 | $97,282 | | **Net (decrease) increase in cash** | **$(32,541)** | **$57,774** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial instruments, and segment performance, including investment and loan portfolios, credit quality, derivatives, fair value measurements, and the adoption of new accounting standards - The Corporation adopted ASU No. 2018-14 for retirement benefits and ASU No. 2019-12 for income taxes, effective January 1, 2021, with neither adoption having a material impact on the financial statements[22](index=22&type=chunk)[23](index=23&type=chunk) - Material estimates susceptible to significant changes include the fair value measurement of available-for-sale securities and the determination of the allowance for credit losses[21](index=21&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong Q1 2021 performance, with net income of $32.6 million, to a significant reversal of the provision for credit losses driven by improved economic forecasts, alongside growth in noninterest income and improved asset quality [Executive Overview](index=45&type=section&id=Executive%20Overview) Net income for Q1 2021 was $32.6 million, a significant increase from $838 thousand in Q1 2020, primarily driven by an $11.3 million reversal of provision for credit losses due to favorable economic assumptions Q1 2021 Performance Highlights | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Income | $32,603 thousand | $838 thousand | | Diluted EPS | $1.11 | $0.03 | | Return on average assets | 2.07% | 0.06% | | Return on average equity | 18.90% | 0.50% | - A reversal of provision for credit losses of **$11.3 million** was recorded in Q1 2021, of which **$12.9 million** was due to favorable economic assumptions, partially offset by reserves for loan growth[146](index=146&type=chunk) - The Paycheck Protection Program (PPP) contributed **$4.5 million** to net interest income in Q1 2021, with **$2.3 million** from forgiveness and pay downs of loans[147](index=147&type=chunk) [Net Interest Income](index=45&type=section&id=Net%20Interest%20Income) Tax-equivalent net interest income increased by 6.6% to $46.0 million in Q1 2021, driven by PPP income and lower funding costs, despite net interest margin compression to 3.12% - Tax-equivalent net interest income rose **$2.8 million (6.6%)** year-over-year, primarily due to **$4.5 million** in PPP income and a **$3.5 million** decrease in interest-bearing liability costs[150](index=150&type=chunk) - The tax-equivalent net interest margin was **3.12%** for Q1 2021, down from **3.48%** in Q1 2020, with excess liquidity negatively impacting by **11 bps** and PPP loans positively impacting by **4 bps**[151](index=151&type=chunk) [Provision for Credit Losses](index=49&type=section&id=Provision%20for%20Credit%20Losses) A reversal of the provision for credit losses of $11.3 million was recorded for Q1 2021, primarily due to improved economic assumptions, contrasting with a $21.8 million provision in Q1 2020, while net charge-offs decreased - A reversal of provision for credit losses of **$11.3 million** was recorded for Q1 2021, mainly due to improved economic forecasts under the CECL model[156](index=156&type=chunk) - Net loan and lease charge-offs were **$288 thousand** for Q1 2021, compared to **$489 thousand** for Q1 2020[156](index=156&type=chunk) [Noninterest Income](index=49&type=section&id=Noninterest%20Income) Noninterest income for Q1 2021 increased by 26.5% to $23.3 million, primarily driven by a 116.4% increase in net gain on mortgage banking activities and growth in investment advisory fees Noninterest Income Breakdown (in thousands) | Category | Q1 2021 | Q1 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Net gain on mortgage banking activities | $5,938 | $2,744 | 116.4% | | Investment advisory commission and fee income | $4,697 | $4,255 | 10.4% | | Insurance commission and fee income | $4,955 | $4,732 | 4.7% | | Other income | $1,370 | $67 | NM | | **Total Noninterest Income** | **$23,250** | **$18,384** | **26.5%** | [Noninterest Expense](index=50&type=section&id=Noninterest%20Expense) Total noninterest expense for Q1 2021 modestly increased by 2.0% to $39.5 million, mainly due to higher salaries, benefits, and professional fees, partially offset by lower other expenses - Salaries, benefits and commissions increased by **$944 thousand (4.0%)** due to new hires, merit increases, and higher variable compensation, partially offset by capitalized compensation from PPP loan originations[163](index=163&type=chunk) - Other expense decreased by **$947 thousand (15.6%)**, primarily because Q1 2020 included a **$656 thousand** charge for debt extinguishment and Q1 2021 had lower travel expenses due to COVID-19[164](index=164&type=chunk) [Financial Condition](index=51&type=section&id=Financial%20Condition) The Corporation's financial condition remained strong as of March 31, 2021, with total assets growing by 1.3% to $6.4 billion, driven by increased gross loans and deposits, and shareholders' equity rising to $722.5 million [Asset Quality](index=51&type=section&id=Asset%20Quality) Asset quality improved in Q1 2021, with total nonperforming assets decreasing to $38.2 million (0.60% of total assets) and nonaccrual loans declining, while the allowance for credit losses to total loans stood at 1.32% Nonperforming Assets (in thousands) | Metric | At March 31, 2021 | At December 31, 2020 | | :--- | :--- | :--- | | Total nonperforming loans and leases | $30,712 | $33,137 | | Other real estate owned | $7,481 | $7,355 | | **Total nonperforming assets** | **$38,193** | **$40,492** | | Nonperforming assets / total assets | 0.60% | 0.64% | - As of March 31, 2021, the Corporation had approximately **54 loan and lease modifications** outstanding with principal balances totaling **$73.0 million**, made in accordance with CARES Act relief provisions[177](index=177&type=chunk) [Capital Adequacy](index=55&type=section&id=Capital%20Adequacy) The Corporation and its subsidiary Bank remained well-capitalized at March 31, 2021, with all regulatory capital ratios exceeding minimums, and the company elected to use transition relief for CECL adoption's impact on regulatory capital Corporation Regulatory Capital Ratios (at March 31, 2021) | Ratio | Actual | To Be Well-Capitalized | | :--- | :--- | :--- | | Total Capital (to Risk-Weighted Assets) | 15.13% | 10.00% | | Tier 1 Capital (to Risk-Weighted Assets) | 11.08% | 8.00% | | Tier 1 Capital (to Average Assets) | 9.45% | 5.00% | - The Corporation and the Bank maintain capital levels in excess of the capital conservation buffer and were in compliance with these requirements at March 31, 2021[192](index=192&type=chunk) - The Corporation adopted the transition guidance and the 2020 CECL interim final rule (IFR) relief, which defers the full regulatory capital impact of CECL adoption[199](index=199&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in the Corporation's market risk occurred during the first quarter of 2021, with further details available in the Annual Report on Form 10-K for 2020 - No material changes in the Corporation's market risk occurred during the quarter ended March 31, 2021[208](index=208&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the Corporation's disclosure controls and procedures were effective as of March 31, 2021[209](index=209&type=chunk) - No material changes to the Corporation's internal control over financial reporting occurred during the quarter[210](index=210&type=chunk) [Part II. Other Information](index=58&type=section&id=Part%20II%2E%20Other%20Information) [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) Management believes that any financial responsibility from pending or threatened legal actions will not materially adversely affect the Corporation's operations, financial position, or cash flows - Management opines that any legal and financial responsibility from pending legal actions will not have a material adverse effect on the Corporation[211](index=211&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) No material changes in the Corporation's risk factors were reported from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes in risk factors were reported from those disclosed in the 2020 Form 10-K[212](index=212&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2021, the Corporation did not repurchase shares under its publicly announced program but did repurchase 10,493 shares at $28.07 per share to cover income taxes for stock-based incentive plans - No shares were repurchased under the publicly announced stock repurchase plan during the quarter, with **679,174** shares remaining available for purchase under the plan[215](index=215&type=chunk) - A total of **10,493 shares** were repurchased during the quarter, not under the main program, but to cover income taxes for employees upon the vesting of restricted stock awards[216](index=216&type=chunk) [Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and financial data in Inline XBRL format[221](index=221&type=chunk)