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Univest Financial Corporation Reports Second Quarter Results

Company Release - 7/27/2022

(Loan Growth of 19.6% (annualized) for the second quarter 2022 (excluding PPP loans 1 ))

SOUDERTON, Pa., July 27, 2022 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced net income for the quarter ended June 30, 2022 was $13.2 million, or $0.45 diluted earnings per share, compared to net income of $20.9 million, or $0.71 diluted earnings per share, for the quarter ended June 30, 2021. Net income for the six months ended June 30, 2022 was $33.5 million, or $1.13 diluted earnings per share, compared to net income of $53.5 million, or $1.81 diluted earnings per share, for the six months ended June 30, 2021.

Loans
Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans1, increased $265.9 million, or 19.6% (annualized), from March 31, 2022, $378.2 million, or 14.4% (annualized), from December 31, 2021 and $582.0 million, or 11.5%, from June 30, 2021 primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings. As of June 30, 2022, $5.4 million in PPP loans remained outstanding.

Deposits
Total deposits decreased $484.9 million, or 32.0% (annualized), from March 31, 2022 and $492.1 million, or 16.2% (annualized), from December 31, 2021 primarily due to a seasonal decrease in public funds deposits as well as decreases in commercial and consumer deposits. Total deposits increased $244.3 million, or 4.6%, from June 30, 2021, primarily due to increases in commercial, consumer and public funds deposits.

Net Interest Income and Margin
Net interest income of $51.5 million for the three months ended June 30, 2022 increased $4.8 million, or 10.3%, from the three months ended March 31, 2022, and $4.7 million, or 10.1%, from the three months ended June 30, 2021. The increase in net interest income for the three months ended June 30, 2022 compared to the same period of 2021 was due to an increase in the average balance of loans and investments, increased asset yields and a decrease in the cost of interest-bearing liabilities, partially offset by an increase in the average balance of interest-bearing liabilities and a decrease in PPP loan income.

Net interest income of $98.1 million for the six months ended June 30, 2022 increased $6.0 million, or 6.5%, from the six months ended June 30, 2021. The increase in net interest income for the six months ended June 30, 2022 compared to the same period of 2021 was due to loan and investment average balance growth outpacing declines in asset yields and a decrease in the cost of interest-bearing liabilities, offset by an increase in the average balance of interest-bearing liabilities and a decrease in PPP loan income.

Net interest margin, on a tax-equivalent basis, was 3.19% for the second quarter of 2022, compared to 2.89% for the first quarter of 2022 and 3.15% for the second quarter of 2021. Excess liquidity reduced net interest margin by approximately 23 basis points for the quarter ended June 30, 2022 compared to 33 basis points for the quarter ended March 31, 2022 and ten basis points for the quarter ended June 30, 2021. During the quarter ended June 30, 2022, our excess liquidity diminished and we returned to a pre-pandemic liquidity level at the end of the quarter. PPP loans had a favorable impact on net interest margin of one basis point for the quarter ended June 30, 2022 compared to three basis points for the quarter ended March 31, 2022 and eleven basis points for the quarter ended June 30, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.41% for the quarter ended June 30, 2022 compared to 3.19% for the quarter ended March 31, 2022 and 3.14% for the quarter ended June 30, 2021.

During the second quarter, the Bank entered into a 4-year $250 million interest rate swap (representing approximately 13% of the Bank's variable rate loans), whereby the Bank receives a fixed rate of 5.99% and pays a variable rate equal to the Prime Rate. During the second quarter of 2022, the swap contributed $707 thousand to net interest income and four basis points to net interest margin.

Net interest margin, on a tax-equivalent basis, was 3.04% for the six months ended June 30, 2022, compared to 3.14% for the six months ended June 30, 2021. Excess liquidity reduced net interest margin by approximately 28 basis points for the six months ended June 30, 2022 compared to ten basis points for the six months ended June 30, 2021. PPP loans had a favorable impact on net interest margin of two basis points for the six months ended June 30, 2022 compared to seven basis points for the six months ended June 30, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.30% for the six months ended June 30, 2022 compared to 3.17% for the six months ended June 30, 2021.

Noninterest Income
Noninterest income for the quarter ended June 30, 2022 was $19.0 million, a decrease of $1.2 million, or 6.1%, compared to the second quarter of 2021. Noninterest income for the six months ended June 30, 2022 was $39.5 million, a decrease of $4.0 million, or 9.2%, from the comparable period in the prior year.

Net gain on mortgage banking activities decreased $2.2 million, or 64.5%, for the quarter and $6.2 million, or 66.4%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year, primarily due to a decrease in loan sales and a contraction of margins. Bank owned life insurance ("BOLI") decreased $915 thousand, or 56.5%, for the quarter and $933 thousand, or 39.9%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year, primarily due to a death benefit claim of $893 thousand in the second quarter of 2021.

Insurance commission and fee income increased $790 thousand, or 20.6%, for the quarter and $1.4 million, or 16.0%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year, primarily due to incremental revenue attributable to the insurance agency the Corporation acquired in the fourth quarter of 2021. Investment advisory commission and fee income increased $254 thousand, or 5.6%, for the quarter and $709 thousand, or 7.7%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year, primarily due to new customer relationships and appreciation of assets under management, as a majority of investment advisory fees are billed based on the prior quarter-end assets under management balance.

Other service fee income increased $561 thousand, or 20.4%, for the quarter and $1.1 million, or 22.8%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year. Mortgage servicing fees increased $357 thousand for the quarter and $619 thousand for the six months ended June 30, 2022 driven by reduced amortization as a result of a decrease in prepayment speeds. Interchange fee income increased $115 thousand for the quarter and $291 thousand for the six months ended June 30, 2022 due to increased customer activity.

Noninterest Expense
Noninterest expense for the quarter ended June 30, 2022 was $47.4 million, an increase of $6.1 million, or 14.7%, compared to the second quarter of 2021. Noninterest expense for the six months ended June 30, 2022 was $92.8 million, an increase of $12.0 million, or 14.8%, from the comparable period in the prior year. The results for the three and six months ended June 30, 2022 include approximately $1.4 million and $2.1 million, respectively, in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to seamlessly sell existing products and services, digitally, across an expanded footprint.

Salaries, benefits and commissions increased $3.7 million, or 14.7%, for the quarter and $7.2 million, or 14.4%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year. These increases reflect our continued investment in revenue producing staff across all business lines, including the acquisition of the Paul I. Schaeffer insurance agency, and annual merit increases. Additionally, during the three and six months ended June 30, 2022, we incurred $353 thousand and $740 thousand, respectively, of short-term incremental guaranties related to the hiring of new producers in our mortgage banking line of business. Finally, during the six months ended June 30, 2021 salaries, benefits and commissions expense was benefited by $616 thousand of incremental capitalized compensation related to the origination of PPP loans.

Professional fees increased $829 thousand, or 41.1%, for the quarter and $1.2 million, or 32.4%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year. The increase for the three months ended June 30, 2022 was primarily attributable to $1.2 million of consultant fees spent related to the previously discussed digital transformation initiative, as compared to our $230 thousand investment in our Diversity, Equity and Inclusion training initiatives for the three months ended June 30, 2021. The increase for the six months ended June 30, 2022 was primarily attributable to $1.9 million of consultant fees spent related to the previously discussed digital transformation initiative, as compared to our $506 thousand investment in our Diversity, Equity and Inclusion training initiatives for the six months ended June 30, 2021. Deposit insurance premiums increased $199 thousand, or 32.5%, for the quarter and $456 thousand, or 36.5%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year, driven by an increased assessment base.

Data processing expenses increased $644 thousand, or 21.0%, for the quarter and $1.2 million, or 19.0%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year, primarily due to continued investments in our end-to-end loan origination solution for loans below $1.0 million, customer relationship management software, internal infrastructure improvements, outsourced data processing solutions, and $155 thousand and $258 thousand in support of the previously discussed digital transformation initiative for the respective periods.

Other expense increased $676 thousand, or 11.7%, for the quarter and $1.7 million, or 15.3%, for the six months ended June 30, 2022 compared to the comparable periods in the prior year. Recruiting costs increased $138 thousand and $420 thousand for the three and six months ended June 30, 2022, respectively, due to increased hiring activity, including the entry into our two new expansions markets. Travel and entertainment expenses increased $309 thousand and $574 thousand for the three and six months ended June 30, 2022, respectively, as related activities have largely returned to pre-pandemic levels. Additionally, the six months ended June 30, 2022 includes incurred costs of $330 thousand as a result of a customer who was defrauded.

Tax Provision
The effective income tax rate was 19.8% for the quarter ended June 30, 2022, compared to an effective income tax rate of 19.0% for the quarter ended June 30, 2021. The effective income tax rate was 19.5% for the six months ended June 30, 2022, compared to an effective income tax rate of 19.2% for the six months ended June 30, 2021.The effective tax rate for the three and six months ended June 30, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $34.8 million at June 30, 2022, compared to $31.5 million at March 31, 2022 and $38.5 million at June 30, 2021. During the quarter, a nonaccrual commercial real estate loan was transferred to other real estate owned ("OREO") with a carrying value of $18.3 million.

Net loan and lease charge-offs were $1.7 million and $1.8 million for the three and six months ended June 30, 2022, respectively. Net loan and lease charge-offs were $243 thousand and $531 thousand for the three and six months ended June 30, 2021, respectively. During the second quarter of 2022, a $1.7 million charge-off was recorded against an existing nonaccrual commercial real estate loan.

The provision for credit losses was $6.7 million for the second quarter of 2022 primarily driven by a $5.5 million increase (after-tax charge of $4.3 million), or $0.15 diluted earnings per share, in reserves due to loan growth, a specific reserve of $1.1 million related to a commercial real estate loan that was placed on nonaccrual status during the second quarter and an incremental provision of $736 thousand related to the previously mentioned $1.7 million charge-off. The reversal of provision for credit losses was $59 thousand for the second quarter of 2021 driven by a $2.7 million increase (after-tax charge of $2.1 million), or $0.07 diluted earnings per share, in reserves due to loan growth outpaced by favorable changes in economic-related assumptions within the Corporation’s CECL model.

The provision for credit losses was $3.2 million for the six months ended June 30, 2022 primarily driven by a $6.8 million increase (after-tax charge of $5.4 million), or $0.18 diluted earnings per share, in reserves due to loan growth and specific reserves of $2.8 million on two nonaccrual commercial real estate properties. These increases were partially offset by $7.3 million (after-tax benefit of $5.8 million), or $0.19 diluted earnings per share, of changes in economic-related assumptions within the Corporation’s CECL model. Additionally, reserves on unfunded commitments and investment securities increased $990 thousand during the six months ended June 30, 2022. The reversal of provision for credit losses was $11.3 million for the comparable period in the prior year, of which $15.8 million (after-tax benefit of $12.5 million), or $0.42 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporation’s CECL model, partially offset by a reserve increase attributable to loan growth.

The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.27% at June 30, 2022, compared to 1.26% at March 31, 2022, and 1.34% at June 30, 2021. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment, excluding PPP loans1, was 1.27% at June 30, 2022 compared to 1.27% at March 31, 2022 and 1.41% at June 30, 2021.

Share Repurchases
As previously announced, the Corporation began to repurchase its common stock on the open market. During the second quarter of 2022, the Corporation repurchased 300,000 shares at an average price of $25.23, for an aggregate cost of $7.6 million. As of June 30, 2022, the Corporation has 379,174 shares remaining to repurchase under the current approved plan.

Dividend
On July 27, 2022, Univest declared a quarterly cash dividend of $0.21 per share to be paid on August 24, 2022 to shareholders of record as of August 10, 2022.

Conference Call
Univest will host a conference call to discuss second quarter 2022 results on Thursday, July 28, 2022 at 9:00 a.m. EST. Participants may preregister at https://ige.netroadshow.com/registration/q4inc/11282/univest-financial-corporation-to-hold-second-quarter-2022-earnings-call/. The general public can access the call by dialing 1-844-200-6205; using Access Code 571585. A replay of the conference call will be available through August 27, 2022 by dialing 1-866-813-9403; using Access Code: 134898.

1 Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included within this document.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $6.7 billion in assets and $4.1 billion in assets under management and supervision through its Wealth Management lines of business at June 30, 2022. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  

This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future results, business or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the current or anticipated impact of military conflict, terrorism or other geopolitical events; or (10) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

Additionally, it is difficult to predict the continued effects of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: (1) demand for our products and services may decline; (2) if economic conditions worsen, loan delinquencies, problem assets, and foreclosures may increase and our allowance for credit losses may have to be increased; (3) collateral for loans, especially real estate, may decline in value; (4) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (5) a material decrease in net income or a net loss over several quarters could result in the elimination of or a decrease in the rate of our quarterly cash dividend; (6) our wealth management revenues may decline with market turmoil; and (7) our cyber security risks may increase as the result of an increase in the number of employees working remotely. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

(UVSP - ER)

 

Univest Financial Corporation  
Consolidated Selected Financial Data (Unaudited)  
June 30, 2022  
(Dollars in thousands)                              
                               
Balance Sheet (Period End)   06/30/22   03/31/22   12/31/21   09/30/21   06/30/21          
ASSETS                              
Cash and due from banks   $ 59,590     $ 57,307     $ 49,202     $ 67,517     $ 50,358            
Interest-earning deposits with other banks     35,187       716,474       840,948       834,840       153,091            
Cash and cash equivalents     94,777       773,781       890,150       902,357       203,449            
Investment securities held-to-maturity     159,808       166,339       176,983       112,643       119,692            
Investment securities available for sale, net of allowance for credit losses     351,382       349,994       317,007       277,773       274,862            
Investments in equity securities     2,934       2,569       2,999       2,961       2,872            
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost     29,116       26,330       28,186       28,679       25,228            
Loans held for sale     8,352       14,521       21,600       29,093       27,322            
Loans and leases held for investment     5,661,777       5,400,786       5,310,017       5,252,045       5,327,313            
Less: Allowance for credit losses, loans and leases     (72,011 )     (68,286 )     (71,924 )     (70,146 )     (71,355 )          
Net loans and leases held for investment     5,589,766       5,332,500       5,238,093       5,181,899       5,255,958            
Premises and equipment, net     50,080       50,429       56,882       55,354       56,067            
Operating lease right-of-use assets     30,929       30,498       30,407       31,570       33,688            
Goodwill     175,510       175,510       175,510       172,559       172,559            
Other intangibles, net of accumulated amortization     11,728       11,784       11,848       9,359       9,396            
Bank owned life insurance     120,103       119,398       118,699       117,981       117,765            
Accrued interest and other assets     76,328       54,087       54,057       57,624       57,447            
Total assets   $ 6,700,813     $ 7,107,740     $ 7,122,421     $ 6,979,852     $ 6,356,305            
                               
LIABILITIES                              
Noninterest-bearing deposits   $ 2,062,538     $ 2,136,467     $ 2,065,423     $ 1,861,007     $ 1,872,031            
Interest-bearing deposits:     3,500,510       3,911,465       3,989,701       4,077,147       3,446,673            
Total deposits     5,563,048       6,047,932       6,055,124       5,938,154       5,318,704            
Short-term borrowings     97,606       18,976       20,106       14,101       25,251            
Long-term debt     95,000       95,000       95,000       95,000       95,000            
Subordinated notes     99,030       98,952       98,874       98,797       98,719            
Operating lease liabilities     33,951       33,566       33,453       34,641       37,131            
Accrued expenses and other liabilities     48,253       39,459       46,070       43,136       41,502            
Total liabilities     5,936,888       6,333,885       6,348,627       6,223,829       5,616,307            
                               
SHAREHOLDER'S EQUITY                              
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued     157,784       157,784       157,784       157,784       157,784            
Additional paid-in capital     298,800       297,945       299,181       298,033       297,208            
Retained earnings     396,295       389,332       375,124       363,607       348,579            
Accumulated other comprehensive loss, net of tax benefit     (42,781 )     (31,909 )     (16,353 )     (20,073 )     (19,545 )          
Treasury stock, at cost     (46,173 )     (39,297 )     (41,942 )     (43,328 )     (44,028 )          
Total shareholders’ equity     763,925       773,855       773,794       756,023       739,998            
Total liabilities and shareholders’ equity   $ 6,700,813     $ 7,107,740     $ 7,122,421     $ 6,979,852     $ 6,356,305            
                               
                               
    For the three months ended,   For the six months ended,  
Balance Sheet (Average)   06/30/22   03/31/22   12/31/21   09/30/21   06/30/21   06/30/22   06/30/21  
Assets   $ 6,962,401     $ 7,047,980     $ 7,088,289     $ 6,698,177     $ 6,443,629     7,004,954   $ 6,413,712  
Investment securities, net of allowance for credit losses     515,741       522,128       469,588       395,280       385,694     518,917     380,063  
Loans and leases, gross     5,520,580       5,344,698       5,255,279       5,320,411       5,389,110     5,433,125     5,357,678  
Deposits     5,903,173       5,984,815       6,041,798       5,666,725       5,351,089     5,943,769     5,323,770  
Shareholders' equity     771,410       774,358       762,334       746,185       728,750     772,876     714,324  

 

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
June 30, 2022
(Dollars in thousands)                            
                             
Summary of Major Loan and Lease Categories (Period End)   06/30/22   03/31/22   12/31/21   09/30/21   06/30/21        
Commercial, financial and agricultural   $ 1,028,354     $ 932,485     $ 956,396     $ 927,015     $ 920,621          
Paycheck Protection Program     5,358       10,298       31,748       85,601       252,849          
Real estate-commercial     2,870,286       2,816,737       2,718,535       2,669,898       2,600,919          
Real estate-construction     319,449       285,083       283,918       260,874       274,529          
Real estate-residential secured for business purpose     419,652       412,486       409,900       412,001       407,664          
Real estate-residential secured for personal purpose     629,144       568,735       540,566       535,705       513,330          
Real estate-home equity secured for personal purpose     168,536       160,134       158,909       159,029       160,018          
Loans to individuals     27,061       26,249       25,504       26,458       25,845          
Lease financings     193,937       188,579       184,541       175,464       171,538          
Total loans and leases held for investment, net of deferred income     5,661,777       5,400,786       5,310,017       5,252,045       5,327,313          
Less: Allowance for credit losses, loans and leases     (72,011 )     (68,286 )     (71,924 )     (70,146 )     (71,355 )        
Net loans and leases held for investment   $ 5,589,766     $ 5,332,500     $ 5,238,093     $ 5,181,899     $ 5,255,958          
                             
                             
Asset Quality Data (Period End)   06/30/22   03/31/22   12/31/21   09/30/21   06/30/21        
Nonaccrual loans and leases, including nonaccrual troubled debt restructured                            
  loans and leases   $ 13,355     $ 30,876     $ 33,210     $ 34,528     $ 37,466          
Accruing loans and leases 90 days or more past due     2,784       274       498       2,204       750          
Accruing troubled debt restructured loans and leases     50       51       51       51       52          
Total nonperforming loans and leases     16,189       31,201       33,759       36,783       38,268          
Other real estate owned     18,604       279       279       279       279          
Total nonperforming assets   $ 34,793     $ 31,480     $ 34,038     $ 37,062     $ 38,547          
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale     0.24 %     0.57 %     0.63 %     0.66 %     0.70 %        
Nonperforming loans and leases / Loans and leases held for investment     0.29 %     0.58 %     0.64 %     0.70 %     0.72 %        
Nonperforming assets / Total assets     0.52 %     0.44 %     0.48 %     0.53 %     0.61 %        
                             
Allowance for credit losses, loans and leases   $ 72,011     $ 68,286     $ 71,924     $ 70,146     $ 71,355          
Allowance for credit losses, loans and leases / Loans and leases held for investment     1.27 %     1.26 %     1.35 %     1.34 %     1.34 %        
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)     1.27 %     1.27 %     1.36 %     1.36 %     1.41 %        
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment     539.21 %     221.16 %     216.57 %     203.16 %     212.97 %        
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment     444.81 %     218.86 %     213.05 %     190.70 %     208.00 %        
                             
    For the three months ended,   For the six months ended,
    06/30/22   03/31/22   12/31/21   09/30/21   06/30/21   06/30/22   06/30/21
Net loan and lease charge-offs (recoveries)   $ 1,715     $ 76     $ (243 )   $ (75 )   $ 243     $ 1,791     $ 531  
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases     0.12 %     0.01 %     (0.02 %)     (0.01 %)     0.02 %     0.07 %     0.02 %
                             
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included at the end of this document.  
                             

 

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2022
(Dollars in thousands, except per share data)                            
    For the three months ended,   For the six months ended,
For the period:   06/30/22   03/31/22   12/31/21   09/30/21   06/30/21   06/30/22   06/30/21
Interest income   $ 56,717   $ 51,198     $ 52,262   $ 53,571     $ 52,441     $ 107,915   $ 103,898  
Interest expense     5,246     4,538       4,737     4,884       5,684       9,784     11,727  
     Net interest income     51,471     46,660       47,525     48,687       46,757       98,131     92,171  
Provison (reversal of provision) for credit losses     6,674     (3,450 )     1,392     (182 )     (59 )     3,224     (11,342 )
Net interest income after provision for credit losses     44,797     50,110       46,133     48,869       46,816       94,907     103,513  
Noninterest income:                            
     Trust fee income     1,998     2,102       2,086     2,126       2,157       4,100     4,191  
     Service charges on deposit accounts     1,574     1,504       1,486     1,422       1,314       3,078     2,596  
     Investment advisory commission and fee income     4,812     5,152       4,885     4,796       4,558       9,964     9,255  
     Insurance commission and fee income     4,629     5,570       3,726     3,837       3,839       10,199     8,794  
     Other service fee income     3,309     2,756       2,759     2,576       2,748       6,065     4,940  
     Bank owned life insurance income     705     699       719     925       1,620       1,404     2,337  
     Net gain on sales of investment securities     -     30       5     21       54       30     119  
     Net gain on mortgage banking activities     1,230     1,929       2,518     3,224       3,461       3,159     9,399  
     Other income     741     728       1,008     1,625       479       1,469     1,849  
Total noninterest income     18,998     20,470       19,192     20,552       20,230       39,468     43,480  
Noninterest expense:                            
Salaries, benefits and commissions     29,133     28,245       27,374     26,641       25,396       57,378     50,176  
Net occupancy     2,422     2,716       2,477     2,525       2,656       5,138     5,395  
Equipment     977     982       985     1,000       968       1,959     1,914  
Data processing     3,708     3,567       3,355     3,274       3,064       7,275     6,114  
Professional fees     2,844     2,138       1,750     2,174       2,015       4,982     3,763  
Marketing and advertising     693     425       683     539       561       1,118     841  
Deposit insurance premiums     812     893       698     765       613       1,705     1,249  
Intangible expenses     342     341       267     214       249       683     498  
Other expense     6,440     6,105       5,746     6,116       5,764       12,545     10,876  
Total noninterest expense     47,371     45,412       43,335     43,248       41,286       92,783     80,826  
Income before taxes     16,424     25,168       21,990     26,173       25,760       41,592     66,167  
Income tax expense     3,258     4,851       4,578     5,262       4,885       8,109     12,689  
Net income   $ 13,166   $ 20,317     $ 17,412   $ 20,911     $ 20,875     $ 33,483   $ 53,478  
Net income per share:                            
     Basic   $ 0.45   $ 0.69     $ 0.59   $ 0.71     $ 0.71     $ 1.14   $ 1.82  
     Diluted   $ 0.45   $ 0.68     $ 0.59   $ 0.71     $ 0.71     $ 1.13   $ 1.81  
Dividends declared per share   $ 0.21   $ 0.20     $ 0.20   $ 0.20     $ 0.20     $ 0.41   $ 0.40  
Weighted average shares outstanding     29,490,154     29,542,467       29,471,304     29,420,256       29,389,525       29,516,166     29,359,198  
Period end shares outstanding     29,365,775     29,636,425       29,500,542     29,438,402       29,411,731       29,365,775     29,411,731  
                             

 

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2022
                                   
          For the three months ended,   For the six months ended,
Profitability Ratios (annualized)     06/30/22   03/31/22   12/31/21   09/30/21   06/30/21   06/30/22   06/30/21
                                   
Return on average assets       0.76 %     1.17 %     0.97 %     1.24 %     1.30 %     0.96 %     1.68 %
Return on average shareholders' equity     6.85 %     10.64 %     9.06 %     11.12 %     11.49 %     8.74 %     15.10 %
Return on average tangible common equity (1)(3)   9.10 %     14.04 %     11.93 %     14.63 %     15.26 %     11.56 %     20.14 %
Net interest margin (FTE)       3.19 %     2.89 %     2.86 %     3.11 %     3.15 %     3.04 %     3.14 %
Efficiency ratio (2)         66.6 %     67.0 %     64.3 %     61.8 %     60.7 %     66.8 %     58.8 %
                                   
Capitalization Ratios                                
                                   
Dividends declared to net income       47.1 %     29.1 %     33.9 %     28.1 %     28.2 %     36.2 %     22.0 %
Shareholders' equity to assets (Period End)     11.40 %     10.89 %     10.86 %     10.83 %     11.64 %     11.40 %     11.64 %
Tangible common equity to tangible assets (1)     8.97 %     8.58 %     8.56 %     8.55 %     9.15 %     8.97 %     9.15 %
Common equity book value per share   $ 26.01     $ 26.11     $ 26.23     $ 25.68     $ 25.16     $ 26.01     $ 25.16  
Tangible common equity book value per share (1) $ 19.91     $ 20.06     $ 20.14     $ 19.75     $ 19.22     $ 19.91     $ 19.22  
                                   
Regulatory Capital Ratios (Period End)                            
Tier 1 leverage ratio         9.45 %     9.35 %     9.13 %     9.53 %     9.64 %     9.45 %     9.64 %
Common equity tier 1 risk-based capital ratio     10.62 %     11.07 %     11.08 %     11.15 %     11.04 %     10.62 %     11.04 %
Tier 1 risk-based capital ratio       10.62 %     11.07 %     11.08 %     11.15 %     11.04 %     10.62 %     11.04 %
Total risk-based capital ratio       13.23 %     13.73 %     13.77 %     13.87 %     13.82 %     13.23 %     13.82 %
                                   
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.              
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.            
(3) Net income before amortization of intangibles to average tangible common equity.                    

 

Univest Financial Corporation  
Average Balances and Interest Rates (Unaudited)  
    For the Three Months Ended,      
Tax Equivalent Basis June 30, 2022   March 31, 2022  
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 474,260   $ 824 0.70 % $ 733,173   $ 357 0.20 %
U.S. government obligations   2,000     11 2.21     5,222     26 2.02  
Obligations of state and political subdivisions*   2,302     17 2.96     2,332     19 3.30  
Other debt and equity securities   511,439     2,727 2.14     514,574     2,339 1.84  
Federal Home Loan Bank, Federal Reserve Bank and other stock   26,221     344 5.26     27,115     355 5.31  
Total interest-earning deposits, investments and other interest-earning assets   1,016,222     3,923 1.55     1,282,416     3,096 0.98  
                 
Commercial, financial, and agricultural loans   937,846     9,037 3.86     901,555     7,571 3.41  
Paycheck Protection Program loans   7,644     155 8.13     18,402     591 13.02  
Real estate—commercial and construction loans   3,004,509     28,527 3.81     2,904,602     25,820 3.61  
Real estate—residential loans   1,166,201     10,758 3.70     1,116,356     9,882 3.59  
Loans to individuals   26,782     305 4.57     25,799     238 3.74  
Municipal loans and leases *   235,922     2,404 4.09     242,508     2,434 4.07  
Lease financings   141,676     2,105 5.96     135,476     2,075 6.21  
     Gross loans and leases   5,520,580     53,291 3.87     5,344,698     48,611 3.69  
Total interest-earning assets   6,536,802     57,214 3.51     6,627,114     51,707 3.16  
Cash and due from banks   55,634           53,698        
Allowance for credit losses, loans and leases   (68,426 )         (72,067 )      
Premises and equipment, net   50,266           53,948        
Operating lease right-of-use assets   30,222           30,394        
Other assets   357,903           354,893        
      Total assets $ 6,962,401         $ 7,047,980        
                 
Liabilities:                
Interest-bearing checking deposits $ 851,324   $ 570 0.27 % $ 881,462   $ 443 0.20 %
Money market savings   1,405,536     1,552 0.44     1,542,581     904 0.24  
Regular savings   1,070,480     237 0.09     1,021,550     238 0.09  
Time deposits   452,989     1,227 1.09     473,589     1,306 1.12  
     Total time and interest-bearing deposits   3,780,329     3,586 0.38     3,919,182     2,891 0.30  
                 
Short-term borrowings   17,253     11 0.26     17,636     2 0.05  
Long-term debt   95,000     321 1.36     95,000     317 1.35  
Subordinated notes   98,988     1,328 5.38     98,911     1,328 5.45  
     Total borrowings   211,241     1,660 3.15     211,547     1,647 3.16  
     Total interest-bearing liabilities   3,991,570     5,246 0.53     4,130,729     4,538 0.45  
Noninterest-bearing deposits   2,122,844           2,065,633        
Operating lease liabilities   33,300           33,452        
Accrued expenses and other liabilities   43,277           43,808        
     Total liabilities   6,190,991           6,273,622        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   298,241           298,975        
Retained earnings and other equity   315,385           317,599        
     Total shareholders' equity   771,410           774,358        
     Total liabilities and shareholders' equity $ 6,962,401         $ 7,047,980        
Net interest income   $ 51,968       $ 47,169    
                 
Net interest spread     2.98       2.71  
Effect of net interest-free funding sources     0.21       0.18  
Net interest margin     3.19 %     2.89 %
Ratio of average interest-earning assets to average interest-bearing liabilities   163.77 %         160.43 %      
                 
* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.      
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs of $(618) thousand and $(136) thousand for the three months ended June 30, 2022 and March 31, 2022, respectively.  
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2022 and March 31, 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.  

 

Univest Financial Corporation  
Average Balances and Interest Rates (Unaudited)  
    For the Three Months Ended June 30,      
Tax Equivalent Basis   2022       2021    
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 474,260   $ 824 0.70 % $ 215,349   $ 46 0.09 %
U.S. government obligations   2,000     11 2.21     6,999     35 2.01  
Obligations of state and political subdivisions*   2,302     17 2.96     6,070     58 3.83  
Other debt and equity securities   511,439     2,727 2.14     372,625     1,364 1.47  
Federal Home Loan Bank, Federal Reserve Bank and other stock   26,221     344 5.26     25,872     360 5.58  
Total interest-earning deposits, investments and other interest-earning assets   1,016,222     3,923 1.55     626,915     1,863 1.19  
                 
Commercial, financial, and agricultural loans   937,846     9,037 3.86     826,464     6,910 3.35  
Paycheck Protection Program loans   7,644     155 8.13     408,928     4,778 4.69  
Real estate—commercial and construction loans   3,004,509     28,527 3.81     2,701,137     24,931 3.70  
Real estate—residential loans   1,166,201     10,758 3.70     1,065,065     9,836 3.70  
Loans to individuals   26,782     305 4.57     25,284     251 3.98  
Municipal loans and leases*   235,922     2,404 4.09     251,311     2,598 4.15  
Lease financings   141,676     2,105 5.96     110,921     1,819 6.58  
     Gross loans and leases   5,520,580     53,291 3.87     5,389,110     51,123 3.80  
Total interest-earning assets   6,536,802     57,214 3.51     6,016,025     52,986 3.53  
Cash and due from banks   55,634           52,948        
Allowance for credit losses, loans and leases   (68,426 )         (73,052 )      
Premises and equipment, net   50,266           55,903        
Operating lease right-of-use assets   30,222           33,992        
Other assets   357,903           357,813        
      Total assets $ 6,962,401         $ 6,443,629        
                 
Liabilities:                
Interest-bearing checking deposits $ 851,324   $ 570 0.27 % $ 786,931   $ 487 0.25 %
Money market savings   1,405,536     1,552 0.44     1,219,375     831 0.27  
Regular savings   1,070,480     237 0.09     978,807     282 0.12  
Time deposits   452,989     1,227 1.09     485,060     1,559 1.29  
     Total time and interest-bearing deposits   3,780,329     3,586 0.38     3,470,173     3,159 0.37  
                 
Short-term borrowings   17,253     11 0.26     19,109     3 0.06  
Long-term debt   95,000     321 1.36     95,000     321 1.36  
Subordinated notes   98,988     1,328 5.38     172,016     2,201 5.13  
     Total borrowings   211,241     1,660 3.15     286,125     2,525 3.54  
     Total interest-bearing liabilities   3,991,570     5,246 0.53     3,756,298     5,684 0.61  
Noninterest-bearing deposits   2,122,844           1,880,916        
Operating lease liabilities   33,300           37,426        
Accrued expenses and other liabilities   43,277           40,239        
     Total liabilities   6,190,991           5,714,879        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   298,241           296,599        
Retained earnings and other equity   315,385           274,367        
     Total shareholders' equity   771,410           728,750        
     Total liabilities and shareholders' equity $ 6,962,401         $ 6,443,629        
Net interest income   $ 51,968       $ 47,302    
                 
Net interest spread     2.98       2.92  
Effect of net interest-free funding sources     0.21       0.23  
Net interest margin     3.19 %     3.15 %
Ratio of average interest-earning assets to average interest-bearing liabilities   163.77 %         160.16 %      
                 
* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.    
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred (costs) fees of $(618)thousand and $2.7 million for the three months ended June 30, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%.  

 

Univest Financial Corporation  
Average Balances and Interest Rates (Unaudited)  
    For the Six Months Ended June 30,    
Tax Equivalent Basis   2022       2021    
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 603,002   $ 1,181 0.39 % $ 226,387   $ 102 0.09 %
U.S. government obligations   3,602     37 2.07     6,999     71 2.05  
Obligations of state and political subdivisions*   2,317     36 3.13     8,792     163 3.74  
Other debt and equity securities   512,998     5,066 1.99     364,272     2,631 1.46  
Federal Home Loan Bank, Federal Reserve Bank and other stock   26,665     699 5.29     26,119     708 5.47  
Total interest-earning deposits, investments and other interest-earning assets   1,148,584     7,019 1.23     632,569     3,675 1.17  
                 
Commercial, financial, and agricultural loans   919,801     16,608 3.64     804,458     13,708 3.44  
Paycheck Protection Program loans   12,994     746 11.58     457,663     9,302 4.10  
Real estate—commercial and construction loans   2,954,831     54,347 3.71     2,661,778     49,389 3.74  
Real estate—residential loans   1,141,416     20,640 3.65     1,051,110     19,709 3.78  
Loans to individuals   26,293     543 4.16     25,862     516 4.02  
Municipal loans and leases*   239,197     4,838 4.08     248,490     5,128 4.16  
Lease financings   138,593     4,180 6.08     108,317     3,556 6.62  
     Gross loans and leases   5,433,125     101,902 3.78     5,357,678     101,308 3.81  
Total interest-earning assets   6,581,709     108,921 3.34     5,990,247     104,983 3.53  
Cash and due from banks   54,671           54,123        
Allowance for credit losses, loans and leases   (70,237 )         (78,125 )      
Premises and equipment, net   52,097           55,865        
Operating lease right-of-use assets   30,308           34,013        
Other assets   356,406           357,589        
      Total assets $ 7,004,954         $ 6,413,712        
                 
Liabilities:                
Interest-bearing checking deposits $ 866,310   $ 1,013 0.24 % $ 802,350   $ 977 0.25 %
Money market savings   1,473,680     2,456 0.34     1,231,457     1,684 0.28  
Regular savings   1,046,150     475 0.09     969,073     580 0.12  
Time deposits   463,232     2,533 1.10     505,318     3,318 1.32  
     Total time and interest-bearing deposits   3,849,372     6,477 0.34     3,508,198     6,559 0.38  
                 
Short-term borrowings   17,443     13 0.15     18,506     5 0.05  
Long-term debt   95,000     638 1.35     98,149     669 1.37  
Subordinated notes   98,950     2,656 5.41     177,647     4,494 5.10  
     Total borrowings   211,393     3,307 3.15     294,302     5,168 3.54  
     Total interest-bearing liabilities   4,060,765     9,784 0.49     3,802,500     11,727 0.62  
Noninterest-bearing deposits   2,094,397           1,815,572        
Operating lease liabilities   33,375           37,419        
Accrued expenses and other liabilities   43,541           43,897        
     Total liabilities   6,232,078           5,699,388        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   298,606           296,369        
Retained earnings and other equity   316,486           260,171        
     Total shareholders' equity   772,876           714,324        
     Total liabilities and shareholders' equity $ 7,004,954         $ 6,413,712        
Net interest income   $ 99,137       $ 93,256    
                 
Net interest spread     2.85       2.91  
Effect of net interest-free funding sources     0.19       0.23  
Net interest margin     3.04 %     3.14 %
Ratio of average interest-earning assets to average interest-bearing liabilities   162.08 %         157.53 %      
                 
* Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.    
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
 Net interest income includes net deferred (costs) fees of $(754) thousand and $5.0 million for the six months ended June 30, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%.  



Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
As of June 30, 2022
         
(Dollars in thousands)        
Industry Description Total Outstanding Balance (excl PPP)   % of Commercial Loan Portfolio  
CRE - Retail 379,935   8.2 %
Animal Production 315,801   6.8  
CRE - Multi-family 262,182   5.7  
CRE - 1-4 Family Residential Investment 240,887   5.2  
CRE - Office 215,847   4.7  
Hotels & Motels (Accommodation) 188,811   4.1  
CRE - Industrial / Warehouse 185,241   4.0  
Education 161,151   3.5  
Nursing and Residential Care Facilities 154,034   3.3  
Specialty Trade Contractors 143,724   3.1  
Homebuilding (tract developers, remodelers) 118,877   2.6  
Motor Vehicle and Parts Dealers 112,372   2.4  
CRE - Medical Office 108,978   2.3  
CRE - Mixed-Use - Residential 106,228   2.3  
Merchant Wholesalers, Durable Goods 100,825   2.2  
Crop Production 88,786   1.9  
Food Manufacturing 85,953   1.9  
Administrative and Support Services 75,587   1.6  
Rental and Leasing Services 72,560   1.6  
Wood Product Manufacturing 71,961   1.6  
Food Services and Drinking Places 69,209   1.5  
Merchant Wholesalers, Nondurable Goods 66,568   1.4  
Fabricated Metal Product Manufacturing 63,016   1.4  
Personal and Laundry Services 60,774   1.3  
Religious Organizations, Advocacy Groups 58,409   1.3  
Miniwarehouse / Self-Storage 54,761   1.2  
Repair and Maintenance 53,472   1.2  
CRE - Mixed-Use - Commercial 52,080   1.1  
Private Equity & Special Purpose Entities 51,853   1.1  
Truck Transportation 51,191   1.1  
Industries with >$50 million in outstandings 3,771,073   81.3 %
Industries with <$50 million in outstandings 866,668   18.7 %
Total Commercial Loans 4,637,741   100.0 %
         
         
Consumer Loans and Lease Financings Total Outstanding Balance      
Real Estate-Residential Secured for Personal Purpose 629,144      
Real Estate-Home Equity Secured for Personal Purpose 168,536      
Loans to Individuals 27,061      
Lease Financings 193,937      
Total - Consumer Loans and Lease Financings 1,018,678      
         
Total 5,656,419      
         

 

Univest Financial Corporation
Non-GAAP Reconciliation
June 30, 2022
 
Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
                                 
        For the three months ended,   For the six months ended,
(Dollars in thousands) 06/30/22   03/31/22   12/31/21   09/30/21   06/30/21   06/30/22   06/30/21
Net income $ 13,166     $ 20,317     $ 17,412     $ 20,911     $ 20,875     $ 33,483     $ 53,478  
Amortization of intangibles, net of tax   270       269       211       169       197       540       393  
Net income before amortization of intangibles $ 13,436     $ 20,586     $ 17,623     $ 21,080     $ 21,072     $ 34,023     $ 53,871  
                                 
Shareholders' equity $ 763,925     $ 773,855     $ 773,794     $ 756,023     $ 739,998     $ 763,925     $ 739,998  
Goodwill   (175,510 )     (175,510 )     (175,510 )     (172,559 )     (172,559 )     (175,510 )     (172,559 )
Other intangibles (a)     (3,678 )     (3,936 )     (4,210 )     (1,922 )     (2,073 )     (3,678 )     (2,073 )
Tangible common equity $ 584,737     $ 594,409     $ 594,074     $ 581,542     $ 565,366     $ 584,737     $ 565,366  
                                 
Total assets $ 6,700,813     $ 7,107,740     $ 7,122,421     $ 6,979,852     $ 6,356,305     $ 6,700,813     $ 6,356,305  
Goodwill   (175,510 )     (175,510 )     (175,510 )     (172,559 )     (172,559 )     (175,510 )     (172,559 )
Other intangibles (a)     (3,678 )     (3,936 )     (4,210 )     (1,922 )     (2,073 )     (3,678 )     (2,073 )
Tangible assets $ 6,521,625     $ 6,928,294     $ 6,942,701     $ 6,805,371     $ 6,181,673     $ 6,521,625     $ 6,181,673  
                                 
Average shareholders' equity $ 771,410     $ 774,358     $ 762,334     $ 746,185     $ 728,750     $ 772,876     $ 714,324  
Average goodwill   (175,510 )     (175,510 )     (173,553 )     (172,559 )     (172,559 )     (175,510 )     (172,559 )
Average other intangibles (a)     (3,791 )     (4,090 )     (2,696 )     (1,983 )     (2,209 )     (3,940 )     (2,336 )
Average tangible common equity $ 592,109     $ 594,758     $ 586,085     $ 571,643     $ 553,982     $ 593,426     $ 539,429  
                                 
Loans and leases held for investment, gross $ 5,661,777     $ 5,400,786     $ 5,310,017     $ 5,252,045     $ 5,327,313     $ 5,661,777     $ 5,327,313  
Paycheck Protection Program ("PPP") loans     (5,358 )     (10,298 )     (31,748 )     (85,601 )     (252,849 )     (5,358 )     (252,849 )
Gross loans and leases excluding PPP loans $ 5,656,419     $ 5,390,488     $ 5,278,269     $ 5,166,444     $ 5,074,464     $ 5,656,419     $ 5,074,464  
                                 
Allowance for credit losses, loans and leases $ 72,011     $ 68,286     $ 71,924     $ 70,146     $ 71,355     $ 72,011     $ 71,355  
Gross loans and leases excluding PPP loans   5,656,419       5,390,488       5,278,269       5,166,444       5,074,464       5,656,419       5,074,464  
Allowance for credit losses, loans and leases as a percentage of gross loans and leases excluding PPP loans   1.27 %     1.27 %     1.36 %     1.36 %     1.41 %     1.27 %     1.41 %
                                 
(a) Amount does not include mortgage servicing rights                          
                                 


CONTACT: Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net   

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Source: Univest Financial Corporation