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)

Univest Financial Corporation (NASDAQ:UVSP) Q1 2021 Earnings Conference Call April 29, 2021 9:00 AM ET Company Participants Jeffrey Schweitzer - President & CEO Brian Richardson - EVP and CFO Michael Keim - President of Univest Bank & Trust Conference Call Participants Andrew DeFranco - KBW Matthew Breese - Stephens Incorporated Frank Schiraldi - Piper Sandler Operator Good morning and welcome to the Univest Financial Corporation First Quarter 2021 Earnings Call. All participants will be in listen-only mode ...

Table of Contents 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, 2020 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) (IRS Employer Identification No.) Pennsylvania 23-1886144 14 North Main Street, Souderton, Pennsylvania 1 ...

Financial Data and Key Metrics Changes - The company reported net income of $25.9 million for Q4 2020, equating to $0.88 per share, with strong loan growth of $112.8 million or 9.6% annualized, leading to a total growth of $436.2 million or 9.9% for the year [4] - The allowance for credit losses was reduced by $8.7 million during the quarter, resulting in a coverage ratio of 1.72% of loans and leases, excluding PPP loans [5][8] - The reported net interest margin (NIM) was flat at 3.02%, impacted by excess liquidity and low-yielding PPP loans [9][10] Business Line Data and Key Metrics Changes - The mortgage banking team achieved a net gain increase of $3.3 million or 316.5% for the quarter, driven by refinance activity and a strong local housing market [4] - Non-interest income from swap fees increased by $1 million year-over-year, totaling $5.7 million for the year, reflecting strong performance in the mortgage banking sector [10] Market Data and Key Metrics Changes - The company experienced a reduction in COVID-related loan deferrals to $68 million, representing 1.4% of the loan portfolio, indicating improved loan performance [8] - The company anticipates loan growth of approximately 7% to 8% for 2021, excluding PPP loans, reflecting a positive outlook for the market [12] Company Strategy and Development Direction - The company is focusing on digital offerings and expanding into new markets, specifically York, Berks, and Cumberland County, to provide integrated financial solutions [13] - A Financial Center Optimization Plan was announced, expected to yield expense savings of $1.8 million in 2021 and $2.4 million annually [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and momentum heading into 2021, emphasizing the importance of serving customers during the pandemic [42] - The provision for credit losses will be influenced by economic forecasts and government stimulus, with expectations of a contraction in non-interest income for 2021 [12][13] Other Important Information - The effective tax rate is expected to be approximately 18% to 18.5%, assuming no changes in the current statutory rate [13] - The company plans to prioritize paying back subordinated debt before considering capital returns such as buybacks or dividends [30] Q&A Session Summary Question: Loan growth outlook and pipeline - Management indicated a strong loan pipeline, with growth across various sectors, particularly in Central Pennsylvania, while remaining cautious in the hospitality sector [19] Question: Efficiency ratio and cost reduction efforts - Management discussed the impact of branch optimization and technology investments on the efficiency ratio, indicating sustainable improvements into 2021 [20][23] Question: Changes in credit loss model - The reduction in the provision for credit losses was attributed to improved economic forecasts, with a third-party model used for guidance [27] Question: Capital return plans for 2021 - The company plans to focus on repaying subordinated debt before considering capital returns, with discussions on buybacks and dividends to follow [30] Question: Loan growth by segment - Management highlighted growth in the Ag business, CRE, and CNI sectors, with expectations for continued strength across the board [34]

Financial Performance - The Corporation reported net income of $18.1 million for the three months ended September 30, 2020, a 2.6% increase from $17.7 million in the same period of 2019[210] - For the nine months ended September 30, 2020, net income was $21.0 million, a significant decrease of 58.1% compared to $50.2 million for the same period in 2019[210] - The Corporation's diluted earnings per share for the three months ended September 30, 2020, was $0.62, compared to $0.60 for the same period in 2019, reflecting a 3.3% increase[210] - Noninterest income for the three months ended September 30, 2020 was $21.8 million, an increase of $5.2 million, or 31.4%, from the three months ended September 30, 2019[227] - Total noninterest income for the nine months ended September 30, 2020 was $58.2 million, an increase of $8.9 million, or 18.1%, from the nine months ended September 30, 2019[227] Interest Income and Expenses - Net interest income on a tax-equivalent basis for the three months ended September 30, 2020, was $44.5 million, reflecting a 2.7% increase from $43.3 million in the same period of 2019[215] - Interest income for the three months ended September 30, 2020 was $51.2 million, a decrease of $3.7 million, or 6.8%, from the same period in the prior year[222] - Interest expense for the three months ended September 30, 2020 was $6.8 million, a decrease of $4.9 million, or 42.0%, from the same period in 2019[223] Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2020, was $3.9 million, with $5.6 million related to loans and leases[212] - The allowance for credit losses on loans and leases increased by $12.9 million upon the adoption of CECL effective January 1, 2020[211] - The Corporation recorded CECL-related charges of $49.5 million for the nine months ended September 30, 2020, primarily due to changes in economic assumptions driven by COVID-19[212] - Provision for credit losses for the three months ended September 30, 2020 was $3.9 million compared to $1.5 million for the same period in the prior year[224] - Net loan and lease charge-offs for the nine months ended September 30, 2020 were $4.0 million compared to $2.0 million for the same period in the prior year[224] Assets and Liabilities - Total assets increased to $6,265,605 thousand in Q3 2020, up from $5,317,867 thousand in Q3 2019, representing a growth of 17.8%[218] - Total liabilities rose to $5,603,658 thousand in Q3 2020, compared to $4,658,344 thousand in Q3 2019, an increase of 20.3%[218] - Total deposits increased by $851.5 million, or 19.5%, from December 31, 2019, primarily due to increases in commercial and consumer deposits[255] - Total borrowings rose by $152.5 million, or 57.9%, from December 31, 2019, with long-term borrowings increasing by $54.9 million[256] Loan and Lease Growth - The Corporation originated approximately 2,570 loans totaling around $511 million through the PPP, generating $4.7 million in interest income[213] - Gross loans and leases reached $5,070,037 thousand in Q3 2020, compared to $4,170,485 thousand in Q3 2019, marking an increase of 21.5%[218] - Paycheck Protection Program loans amounted to $500,549 thousand in Q3 2020, contributing $2,811 thousand in income[218] - Gross loans and leases held for investment increased by $825.0 million, or 18.8%, from December 31, 2019, driven by PPP loans outstanding of $501.6 million[240] Capital Adequacy - The Corporation maintained compliance with capital adequacy requirements, with Tier 1 Capital to Risk Weighted Assets exceeding 8.50% as of September 30, 2020[264] - As of September 30, 2020, the Corporation's total capital to risk-weighted assets ratio was 15.35%, significantly above the required 8.00%[266] - The Bank's total capital to risk-weighted assets ratio was 11.94%, also exceeding the required 8.00%[266] - The Corporation's Tier 1 capital to risk-weighted assets ratio was 10.52%, surpassing the minimum requirement of 6.00%[266] Market Risk and Economic Conditions - No material changes in the Corporation's market risk were reported during the current period[288] - The effective tax rate for the nine months ended September 30, 2020 was 16.7%, reflecting the benefits of tax-exempt income from investments[236] Segment Performance - The Banking segment reported pre-tax income of $22.7 million for the three months ended September 30, 2020, compared to $19.9 million for the same period in 2019[260] - The Wealth Management segment's assets under management and supervision were $3.6 billion as of September 30, 2020, a decrease of $44.1 million from December 31, 2019[261] - The Insurance segment reported pre-tax income of $822 thousand for the three months ended September 30, 2020, compared to $853 thousand for the same period in 2019[262] Regulatory Changes and Programs - The Paycheck Protection Program Lending Facility was created to facilitate lending to small businesses, with a credit extension rate of 35 basis points[285] - The Paycheck Protection Program and Health Care Enhancement Act allocated an additional $310 billion, increasing total funding to $659 billion[286] - The Paycheck Protection Program Flexibility Act extended the loan forgiveness period to 24 weeks or until December 31, 2020[287] - The required payroll cost spending for loan forgiveness was reduced from 75% to 60%[287] - The loan maturity period was extended from two years to five years under the PPP Flexibility Act[287]

Univest Financial Corporation (NASDAQ:UVSP) Q3 2020 Earnings Conference Call October 29, 2020 9:00 AM ET Company Participants Jeff Schweitzer - President & Chief Executive Officer Brian Richardson - Chief Financial Officer Mike Keim - President of Univest Bank & Trust Conference Call Participants Michael Perito - KBW Justin Crowley - Piper Sandler Matthew Breese - Stephens Operator Good day and welcome to the Univest Financial Corporation Third Quarter 2020 Earnings Conference Call. All participants will be ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (IRS Employer Identification No.) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2020 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 spe ...

Financial Data and Key Metrics Changes - The company reported net income of $2.1 million for Q2 2020, or $0.07 per share, significantly impacted by $19.9 million in COVID-19 related expenses [6][14] - Pre-tax pre-provision income increased by $3.3 million, or 15.1%, compared to Q2 2019, with a pre-tax pre-provision return on average assets of 1.71% [7][14] - The total provision for credit losses was $23.7 million, with $19.9 million attributed to COVID-19, indicating a significant increase in provisioning due to economic uncertainties [14][16] Business Line Data and Key Metrics Changes - The mortgage banking business saw a net gain of $3.5 million for the quarter, a year-over-year increase of $2.7 million, driven by a 185% increase in revenue-generating volume [18] - Noninterest income included swap fees of $1.7 million, an increase of $1.3 million compared to Q2 2019, reflecting customer demand for longer-term fixed rates [19] - Loans were relatively flat during the quarter, with a decrease of $94.5 million in commercial line utilization, but lending opportunities are expected to increase as the economy reopens [9][10] Market Data and Key Metrics Changes - The allowance for credit losses on loans and leases increased by $50.9 million, or 144%, since December 31, 2019, reaching 1.94% of total loans and leases, excluding PPP loans [16] - The net interest margin (NIM) reported was 3.18%, a decrease of 30 basis points from the previous quarter, impacted by excess liquidity and low-yielding PPP loans [16][17] Company Strategy and Development Direction - The company continues to focus on core business performance despite economic uncertainties, emphasizing employee safety and customer service [8][11] - The reopening of branch lobbies and adaptation to safety protocols indicate a strategic shift towards normal operations while maintaining service quality [8] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the pace of economic recovery, influenced by spikes in COVID-19 cases, but remains optimistic about core business performance [6][58] - The company is closely monitoring economic forecasts and will adjust provisioning strategies accordingly, indicating a cautious but proactive approach to risk management [24][26] Other Important Information - The company originated $510 million in PPP loans and modified 1,420 loans and leases with a combined principal balance of approximately $720 million [20][21] - The management highlighted the importance of maintaining a strong capital position and the ongoing review of dividend safety [30] Q&A Session Summary Question: Thoughts on provisioning for the back half of the year - Management indicated that provisioning will depend on economic forecasts and the situation at the end of September, with a consistent approach to using Moody's baseline forecast [24][26] Question: Details on customer deferrals and their status - Approximately 57% of total deferrals have reached the end of their initial 90-day period, with 45% extended and 55% of the remaining customers resuming payments [28] Question: Commentary on capital safety and dividend - Management feels comfortable with the current capital position and will review the dividend on a quarterly basis, acknowledging its importance to shareholders [30] Question: Insights on local economic conditions and customer confidence - The local economy is gradually reopening, with some sectors performing well, particularly in Lancaster, although uncertainties remain due to potential COVID-19 spikes [44][45] Question: Outlook for non-interest income and expenses - Non-interest income is expected to recover as market conditions improve, particularly in mortgage banking, while expenses may normalize as business activities resume [49][53]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Exact name of registrant as specified in its charter) Pennsylvania 23-1886144 (State or other jurisdiction of incorporation or organization) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ ...