Univest Financial Corporation Reports Second Quarter Results

Rhea-AI Summary

Univest Financial Corporation (NASDAQ: UVSP) reported Q2 2025 net income of $20.0 million, or $0.69 diluted earnings per share, up from $18.1 million ($0.62 per share) in Q2 2024. The bank's performance showed mixed results with net interest income increasing 16.7% year-over-year to $59.5 million.

Key metrics include a net interest margin of 3.20%, improved from 2.84% in Q2 2024. Total deposits decreased $75.8 million (1.1%) from Q1 2025, while gross loans declined $31.9 million (0.5%). Notably, nonperforming assets increased to $50.6 million, impacted by a $23.7 million commercial loan relationship placed on nonaccrual status due to suspected fraud.

The company maintained strong liquidity with $160.4 million in cash and $3.6 billion in committed borrowing capacity. Univest declared a quarterly dividend of $0.22 per share and continued its share repurchase program, buying back 172,757 shares at an average price of $28.45.

Positive

• Net income increased to $20.0 million, up 10.5% from Q2 2024
• Net interest income grew 16.7% year-over-year to $59.5 million
• Net interest margin improved to 3.20% from 2.84% in Q2 2024
• Noninterest income increased 2.5% year-over-year to $21.5 million
• Strong liquidity position with $3.6 billion in committed borrowing capacity

Negative

• Nonperforming assets increased to $50.6 million from $34.0 million in Q1 2025
• $23.7 million commercial loan relationship placed on nonaccrual status due to suspected fraud
• Net loan charge-offs increased to $7.8 million from $809,000 in Q2 2024
• Total deposits decreased $75.8 million (1.1%) from Q1 2025
• Gross loans declined $31.9 million (0.5%) from Q1 2025

Insights

Financial Analyst

Univest posted 10.5% YoY earnings growth with expanding margins, though loan growth stalled amid credit quality concerns.

Univest Financial Corporation posted $20.0 million in Q2 2025 net income ($0.69 EPS), representing a 10.5% year-over-year increase from Q2 2024's $18.1 million ($0.62 EPS). This performance was primarily driven by stronger net interest income, which grew 16.7% year-over-year to $59.5 million, fueled by improved margins.

The bank's net interest margin expanded significantly to 3.20% from 2.84% a year ago and 3.09% in Q1 2025. This 36 basis point year-over-year improvement occurred despite excess liquidity that slightly dampened margins, indicating effective balance sheet management in a potentially declining rate environment.

Loan growth has stalled, with gross loans decreasing 0.5% quarter-over-quarter (2.0% annualized) and showing modest 1.7% year-over-year growth. The decline was primarily in commercial real estate, residential mortgages, and lease financing.

Deposit trends show mixed results with total deposits down 1.1% quarter-over-quarter but up 1.3% year-over-year. When excluding seasonal public funds and brokered deposits, core deposits actually increased by $77.5 million during the quarter, suggesting stable underlying deposit relationships.

A significant credit quality concern emerged this quarter with nonperforming assets jumping to $50.6 million from $34.0 million in Q1 2025. This increase stems primarily from a $23.7 million commercial loan relationship placed on nonaccrual status due to suspected fraud, which resulted in a $7.3 million charge-off. This drove the provision for credit losses to $5.7 million, considerably higher than previous quarters.

Despite credit challenges, Univest maintained shareholder returns through a $0.22 quarterly dividend and repurchased 172,757 shares at an average price of $28.45. The company maintains strong liquidity with $160.4 million in cash and cash equivalents plus $3.6 billion in committed borrowing capacity.

SOUDERTON, Pa., July 23, 2025 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the "Bank") and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended June 30, 2025 of $20.0 million, or $0.69 diluted earnings per share, compared to net income of $18.1 million, or $0.62 diluted earnings per share, for the quarter ended June 30, 2024.

Loans
Gross loans and leases decreased $31.9 million, or 0.5% (2.0% annualized), from March 31, 2025 and $25.4 million, or 0.4% (0.8% annualized), from December 31, 2024 primarily due to decreases in commercial real estate, residential mortgage loans and lease financings, partially offset by increases in commercial, construction and home equity loans. Gross loans and leases increased $116.3 million, or 1.7%, from June 30, 2024, primarily due to increases in commercial real estate, residential mortgage and home equity loans, partially offset by decreases in commercial and construction loans and lease financings.

Deposits and Liquidity
Total deposits decreased $75.8 million, or 1.1% (4.4% annualized), from March 31, 2025, primarily due to seasonal decreases in public funds deposits and decreases in consumer and brokered deposits, partially offset by an increase in commercial deposits. Excluding decreases of $105.9 million in seasonal public funds deposits and $47.5 million in brokered deposits, deposits increased by $77.5 million during the quarter. Total deposits decreased $176.6 million, or 2.6% (5.2% annualized), from December 31, 2024, due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits. Total deposits increased $87.3 million, or 1.3%, from June 30, 2024, due to increases in commercial and public funds deposits, partially offset by decreases in consumer and brokered deposits.

Noninterest-bearing deposits totaled $1.5 billion and represented 22.2% of total deposits at June 30, 2025, compared to $1.4 billion representing 21.5% of total deposits at March 31, 2025. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at June 30, 2025 and March 31, 2025. This represented 23.0% of total deposits at June 30, 2025, compared to 21.9% at March 31, 2025.

As of June 30, 2025, the Corporation and its subsidiaries reported cash and cash equivalents totaling $160.4 million and had committed borrowing capacity of $3.6 billion, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $469.0 million at June 30, 2025. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Net Interest Income and Margin
Net interest income of $59.5 million for the second quarter of 2025 increased $8.5 million, or 16.7%, from the second quarter of 2024 and $2.8 million, or 4.9%, from the first quarter of 2025. The increase in net interest income for the second quarter of 2025 compared to the second quarter of 2024 was driven by higher average balances of loans and higher yields on interest earning assets, as well as a reduction in our overall cost of funds. The increase in net interest income for the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by higher yields on interest earning assets and lower average balances of interest-bearing liabilities and related costs.

Net interest margin, on a tax-equivalent basis, was 3.20% for the second quarter of 2025, compared to 3.09% for the first quarter of 2025 and 2.84% for the second quarter of 2024. Excess liquidity reduced net interest margin by approximately four basis points for the quarter ended June 30, 2025 compared to approximately three basis points for the quarter ended March 31, 2025 and approximately two basis points for the quarter ended June 30, 2024. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.24% for the quarter ended June 30, 2025 compared to 3.12% for the first quarter of 2025 and 2.86% for the second quarter of 2024.

Noninterest Income
Noninterest income for the quarter ended June 30, 2025 was $21.5 million, an increase of $521 thousand, or 2.5%, from the comparable period in the prior year.

Other income increased $491 thousand, or 65.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase of $299 thousand in gains on sale of Small Business Administration loans.

Service charges on deposit accounts increased $276 thousand, or 13.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase in treasury management income.

Investment advisory commission and fee income increased $222 thousand, or 4.2%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to new customer relationships and appreciation of assets under management and supervision.

Net gain on mortgage banking activities decreased $729 thousand, or 42.6%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to decreased salable volume.

Noninterest Expense
Noninterest expense for the quarter ended June 30, 2025 was $50.3 million, an increase of $1.6 million, or 3.3%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $1.3 million, or 4.5%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, due to increases in salary and medical claims expense. Additionally, variable compensation increased due to increased profitability.

Tax Provision
The effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to an effective tax rate of 19.9% for the quarter ended June 30, 2024. The effective tax rates for the three months ended June 30, 2025 and 2024 were favorably impacted by proceeds of BOLI death benefits received in both periods. Excluding the BOLI death benefits, the effective tax rate was 20.2% for the three months ended June 30, 2025 compared to 20.0% for the three months ended June 30, 2024.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $50.6 million at June 30, 2025, $34.0 million at March 31, 2025, and $36.6 million at June 30, 2024. During the quarter, a $23.7 million commercial loan relationship was placed on nonaccrual status due to, among other things, suspected fraud. Subsequent to the relationship being placed on nonaccrual status, a $7.3 million charge-off was recognized during the quarter. The remaining $16.4 million carrying value is supported by the appraised value of real estate collateral.

Net loan and lease charge-offs were $7.8 million for the three months ended June 30, 2025 compared to $1.7 million and $809 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The increase in charge-offs for the quarter compared to the prior periods was due to the previously discussed $7.3 million charge-off associated with a nonaccrual commercial loan relationship.

The provision for credit losses was $5.7 million for the three months ended June 30, 2025 compared to $2.3 million and $707 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at June 30, 2025, March 31, 2025, and June 30, 2024.

Dividend and Share Repurchases
On July 23, 2025, Univest declared a quarterly cash dividend of $0.22 per share to be paid on August 20, 2025 to shareholders of record as of August 6, 2025. During the quarter ended June 30, 2025, the Corporation repurchased 172,757 shares of common stock at an average price of $28.45 per share. Including brokerage fees and excise tax, the average price per share was $28.77. As of June 30, 2025, 1,005,637 shares are available for repurchase under the Share Repurchase Plan.

Conference Call
Univest will host a conference call to discuss second quarter 2025 results on Thursday, July 24, 2025 at 9:00 a.m. EDT. Participants may preregister at https://www.netroadshow.com/events/login?show=d55d5140&confId=85192. The general public can access the call by dialing 1-833-470-1428; using Access Code 747843. A replay of the conference call will be available through July 31, 2025 by dialing 1-866-813-9403; using Access Code 563521.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.9 billion in assets and $5.4 billion in assets under management and supervision through its Wealth Management lines of business at June 30, 2025. 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, prospects 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 financial condition, results of operations, business, prospects 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 and demand for financial services in our market area; (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 and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) fluctuations in real estate values and both residential and commercial real estate market conditions; (5) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (6) our ability to access cost-effective funding; (7) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (8) changes in the economic assumptions or methodology used to calculate our allowance for credit losses; (9) legislative, regulatory, accounting or tax changes; (10) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (11) the imposition of tariffs or other domestic or international governmental policies and retaliatory responses; (12) the failure to maintain current technologies and to successfully implement future information technology enhancements; (13) technological issues that may adversely affect our operations or those of our customers; (14) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (15) changes in the securities markets; (16) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (17) our ability to enter into new markets successfully and capitalize on growth opportunities; (18) changes in investor sentiment or consumer spending or savings behavior; and/or (19) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP - ER)

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
(Dollars in thousands)
Balance Sheet (Period End)		06/30/25				03/31/25				12/31/24				09/30/24				06/30/24
ASSETS
Cash and due from banks		$	76,624			$	73,319			$	75,998			$	78,346			$	66,808
Interest-earning deposits with other banks			83,741				95,815				252,846				426,354				124,103
Cash and cash equivalents			160,365				169,134				328,844				504,700				190,911
Investment securities held-to-maturity			128,455				130,889				134,111				137,681				140,112
Investment securities available for sale, net of allowance for credit losses			366,421				364,503				357,361				354,100				342,776
Investments in equity securities			1,801				1,667				2,506				2,406				2,995
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost			36,482				35,732				38,980				40,235				37,438
Loans held for sale			17,774				13,150				16,653				17,131				28,176
Loans and leases held for investment			6,801,185				6,833,037				6,826,583				6,730,734				6,684,837
Less: Allowance for credit losses, loans and leases			(86,989	)			(87,790	)			(87,091	)			(86,041	)			(85,745	)
Net loans and leases held for investment			6,714,196				6,745,247				6,739,492				6,644,693				6,599,092
Premises and equipment, net			47,140				47,175				46,671				47,411				48,174
Operating lease right-of-use assets			27,278				27,182				28,531				29,260				29,985
Goodwill			175,510				175,510				175,510				175,510				175,510
Other intangibles, net of accumulated amortization			7,967				8,061				8,309				7,158				7,701
Bank owned life insurance			140,086				139,482				139,351				138,744				137,823
Accrued interest and other assets			115,581				117,435				112,098				106,708				114,753
Total assets		$	7,939,056			$	7,975,167			$	8,128,417			$	8,205,737			$	7,855,446
LIABILITIES
Noninterest-bearing deposits		$	1,461,189			$	1,433,995			$	1,414,635			$	1,323,953			$	1,397,308
Interest-bearing deposits:			5,121,471				5,224,503				5,344,624				5,530,195				5,098,014
Total deposits			6,582,660				6,658,498				6,759,259				6,854,148				6,495,322
Short-term borrowings			6,271				4,031				11,181				8,256				11,781
Long-term debt			200,000				175,000				225,000				225,000				250,000
Subordinated notes			149,511				149,386				149,261				149,136				149,011
Operating lease liabilities			30,106				30,062				31,485				32,246				33,015
Accrued expenses and other liabilities			53,775				54,718				64,930				59,880				62,180
Total liabilities			7,022,323				7,071,695				7,241,116				7,328,666				7,001,309
SHAREHOLDERS' 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			301,640				300,634				302,829				301,262				300,166
Retained earnings			555,403				541,776				525,780				512,938				500,482
Accumulated other comprehensive loss, net of tax benefit			(34,969	)			(37,922	)			(43,992	)			(41,623	)			(54,124	)
Treasury stock, at cost			(63,125	)			(58,800	)			(55,100	)			(53,290	)			(50,171	)
Total shareholders’ equity			916,733				903,472				887,301				877,071				854,137
Total liabilities and shareholders’ equity		$	7,939,056			$	7,975,167			$	8,128,417			$	8,205,737			$	7,855,446
		For the three months ended,																				For the six months ended,
Balance Sheet (Average)		06/30/25				03/31/25				12/31/24				09/30/24				06/30/24				06/30/25				06/30/24
Assets			7,979,475			$	7,981,043			$	8,163,347			$	8,005,265			$	7,721,540			$	7,980,254			$	7,709,058
Investment securities, net of allowance for credit losses			497,214				500,078				500,748				493,334				493,140				498,638				497,061
Loans and leases, gross			6,846,938				6,856,503				6,758,649				6,730,791				6,640,536				6,851,694				6,608,950
Deposits			6,633,250				6,617,653				6,804,483				6,641,324				6,353,752				6,625,494				6,328,804
Shareholders' equity			908,536				896,811				880,237				864,406				844,572				902,706				843,559

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
June 30, 2025
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)		06/30/25				03/31/25				12/31/24				09/30/24				06/30/24
Commercial, financial and agricultural		$	1,052,246			$	1,034,361			$	1,037,835			$	1,044,043			$	1,055,332
Real estate-commercial			3,485,615				3,546,402				3,530,451				3,442,083				3,373,889
Real estate-construction			302,424				281,785				274,483				285,616				313,229
Real estate-residential secured for business purpose			535,210				536,082				536,095				530,674				532,628
Real estate-residential secured for personal purpose			984,166				992,767				994,972				969,562				952,665
Real estate-home equity secured for personal purpose			195,014				189,119				186,836				182,901				179,150
Loans to individuals			14,069				16,930				21,250				26,794				26,430
Lease financings			232,441				235,591				244,661				249,061				251,514
Total loans and leases held for investment, net of deferred income			6,801,185				6,833,037				6,826,583				6,730,734				6,684,837
Less: Allowance for credit losses, loans and leases			(86,989	)			(87,790	)			(87,091	)			(86,041	)			(85,745	)
Net loans and leases held for investment		$	6,714,196			$	6,745,247			$	6,739,492			$	6,644,693			$	6,599,092
Asset Quality Data (Period End)		06/30/25				03/31/25				12/31/24				09/30/24				06/30/24
Nonaccrual loans and leases, including nonaccrual loans held for sale		$	27,909			$	11,126			$	12,667			$	15,319			$	16,200
Accruing loans and leases 90 days or more past due			125				322				321				310				205
Total nonperforming loans and leases			28,034				11,448				12,988				15,629				16,405
Other real estate owned			22,471				22,433				20,141				20,915				20,007
Repossessed assets			80				79				76				79				149
Total nonperforming assets		$	50,585			$	33,960			$	33,205			$	36,623			$	36,561
Nonaccrual loans and leases / Loans and leases held for investment			0.41	%			0.16	%			0.19	%			0.23	%			0.24	%
Nonperforming loans and leases / Loans and leases held for investment			0.41	%			0.17	%			0.19	%			0.23	%			0.25	%
Nonperforming assets / Total assets			0.64	%			0.43	%			0.41	%			0.45	%			0.47	%
Allowance for credit losses, loans and leases		$	86,989			$	87,790			$	87,091			$	86,041			$	85,745
Allowance for credit losses, loans and leases / Loans and leases held for investment			1.28	%			1.28	%			1.28	%			1.28	%			1.28	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases			311.69	%			789.05	%			687.54	%			561.66	%			529.29	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases			310.30	%			766.86	%			670.55	%			550.52	%			522.68	%
		For the three months ended,																				For the six months ended,
		06/30/25				03/31/25				12/31/24				09/30/24				06/30/24				06/30/25				06/30/24
Net loan and lease charge-offs		$	7,807			$	1,686			$	767			$	820			$	809			$	9,493			$	2,215
Net loan and lease charge-offs (annualized)/Average loans and leases			0.46	%			0.10	%			0.05	%			0.05	%			0.05	%			0.28	%			0.07	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
(Dollars in thousands, except per share data)
		For the three months ended,															For the six months ended,
For the period:		06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24
Interest income		$	105,706		$	103,416		$	107,476		$	106,438		$	99,832		$	209,122		$	198,441
Interest expense			46,165			46,635			52,004			53,234			48,805			92,800			95,947
Net interest income			59,541			56,781			55,472			53,204			51,027			116,322			102,494
Provision for credit losses			5,694			2,311			2,380			1,414			707			8,005			2,139
Net interest income after provision for credit losses			53,847			54,470			53,092			51,790			50,320			108,317			100,355
Noninterest income:
Trust fee income			2,146			2,161			2,265			2,110			2,008			4,307			4,116
Service charges on deposit accounts			2,258			2,194			2,192			2,037			1,982			4,452			3,853
Investment advisory commission and fee income			5,460			5,613			5,457			5,319			5,238			11,073			10,432
Insurance commission and fee income			5,261			6,889			4,743			5,238			5,167			12,150			12,368
Other service fee income			3,147			2,707			3,473			1,815			3,044			5,854			9,459
Bank owned life insurance income			1,012			1,959			1,012			921			1,086			2,971			1,928
Net gain on sales of investment securities			-			-			-			18			-			-			-
Net gain on mortgage banking activities			981			647			1,320			1,296			1,710			1,628			2,649
Other income			1,236			245			868			1,396			745			1,481			1,770
Total noninterest income			21,501			22,415			21,330			20,150			20,980			43,916			46,575
Noninterest expense:
Salaries, benefits and commissions			31,536			30,826			31,518			30,702			30,187			62,362			61,525
Net occupancy			2,739			2,853			2,751			2,723			2,679			5,592			5,551
Equipment			1,043			1,122			1,147			1,107			1,088			2,165			2,199
Data processing			4,408			4,364			4,146			4,154			4,161			8,772			8,656
Professional fees			1,597			1,797			1,669			1,579			1,466			3,394			3,154
Marketing and advertising			498			353			552			490			715			851			1,131
Deposit insurance premiums			1,074			1,151			1,102			1,097			1,098			2,225			2,233
Intangible expenses			131			130			155			164			188			261			375
Other expense			7,306			6,732			7,618			6,536			7,126			14,038			13,958
Total noninterest expense			50,332			49,328			50,658			48,552			48,708			99,660			98,782
Income before taxes			25,016			27,557			23,764			23,388			22,592			52,573			48,148
Income tax expense			5,038			5,162			4,823			4,810			4,485			10,200			9,736
Net income		$	19,978		$	22,395		$	18,941		$	18,578		$	18,107		$	42,373		$	38,412
Net income per share:
Basic		$	0.69		$	0.77		$	0.65		$	0.64		$	0.62		$	1.46		$	1.31
Diluted		$	0.69		$	0.77		$	0.65		$	0.63		$	0.62		$	1.45		$	1.30
Dividends declared per share		$	0.22		$	0.21		$	0.21		$	0.21		$	0.21		$	0.43		$	0.42
Weighted average shares outstanding			28,859,348			29,000,567			29,070,039			29,132,948			29,246,977			28,929,123			29,330,488
Period end shares outstanding			28,810,805			28,962,648			29,045,877			29,081,108			29,190,640			28,810,805			29,190,640

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
		For the three months ended,																				For the six months ended,
Profitability Ratios (annualized)		06/30/25				03/31/25				12/31/24				09/30/24				06/30/24				06/30/25				06/30/24
Return on average assets			1.00	%			1.14	%			0.92	%			0.92	%			0.94	%			1.07	%			1.00	%
Return on average shareholders' equity			8.82	%			10.13	%			8.56	%			8.55	%			8.62	%			9.47	%			9.16	%
Return on average tangible common equity (1)(3)			11.02	%			12.69	%			10.79	%			10.84	%			11.01	%			11.84	%			11.69	%
Net interest margin (FTE)			3.20	%			3.09	%			2.88	%			2.82	%			2.84	%			3.14	%			2.86	%
Efficiency ratio (2)			61.6	%			61.6	%			65.5	%			65.7	%			67.1	%			61.6	%			65.8	%
Capitalization Ratios
Dividends declared to net income			31.8	%			27.2	%			32.2	%			33.0	%			33.9	%			29.4	%			32.1	%
Shareholders' equity to assets (Period End)			11.55	%			11.33	%			10.92	%			10.69	%			10.87	%			11.55	%			10.87	%
Tangible common equity to tangible assets (1)			9.52	%			9.31	%			8.92	%			8.71	%			8.81	%			9.52	%			8.81	%
Common equity book value per share		$	31.82			$	31.19			$	30.55			$	30.16			$	29.26			$	31.82			$	29.26
Tangible common equity book value per share (1)		$	25.66			$	25.06			$	24.43			$	24.05			$	23.17			$	25.66			$	23.17
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio			9.94	%			9.80	%			9.51	%			9.53	%			9.74	%			9.94	%			9.74	%
Common equity tier 1 risk-based capital ratio			11.19	%			10.97	%			10.85	%			10.88	%			10.72	%			11.19	%			10.72	%
Tier 1 risk-based capital ratio			11.19	%			10.97	%			10.85	%			10.88	%			10.72	%			11.19	%			10.72	%
Total risk-based capital ratio			14.58	%			14.35	%			14.19	%			14.27	%			14.09	%			14.58	%			14.09	%
(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, 2025							March 31, 2025
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	131,391		$	1,371	4.19	%	$	119,997		$	1,360	4.60	%
Obligations of state and political subdivisions*		-			-	-			879			4	1.85
Other debt and equity securities		497,214			3,962	3.20			499,199			4,019	3.27
Federal Home Loan Bank, Federal Reserve Bank and other stock		36,711			671	7.33			37,561			687	7.42
Total interest-earning deposits, investments and other interest-earning assets		665,316			6,004	3.62			657,636			6,070	3.74
Commercial, financial, and agricultural loans		1,005,784			17,686	7.05			990,860			17,020	6.97
Real estate—commercial and construction loans		3,692,262			54,165	5.88			3,704,232			52,676	5.77
Real estate—residential loans		1,727,381			21,772	5.06			1,729,146			21,542	5.05
Loans to individuals		15,575			337	8.68			19,438			393	8.20
Tax-exempt loans and leases		228,856			2,966	5.20			230,133			2,861	5.04
Lease financings		177,080			3,192	7.23			182,694			3,240	7.19
Gross loans and leases		6,846,938			100,118	5.86			6,856,503			97,732	5.78
Total interest-earning assets		7,512,254			106,122	5.67			7,514,139			103,802	5.60
Cash and due from banks		55,335							56,690
Allowance for credit losses, loans and leases		(88,127	)						(87,822	)
Premises and equipment, net		47,299							46,852
Operating lease right-of-use assets		26,948							27,761
Other assets		425,766							423,423
Total assets	$	7,979,475						$	7,981,043
Liabilities:
Interest-bearing checking deposits	$	1,216,909		$	7,800	2.57	%	$	1,222,012		$	7,075	2.35	%
Money market savings		1,754,428			16,945	3.87			1,840,194			18,035	3.97
Regular savings		700,762			749	0.43			702,543			763	0.44
Time deposits		1,541,008			16,261	4.23			1,476,495			16,106	4.42
Total time and interest-bearing deposits		5,213,107			41,755	3.21			5,241,244			41,979	3.25
Short-term borrowings		5,254			1	0.08			6,909			14	0.82
Long-term debt		200,549			2,128	4.26			217,500			2,361	4.40
Subordinated notes		149,444			2,281	6.12			149,319			2,281	6.20
Total borrowings		355,247			4,410	4.98			373,728			4,656	5.05
Total interest-bearing liabilities		5,568,354			46,165	3.33			5,614,972			46,635	3.37
Noninterest-bearing deposits		1,420,143							1,376,409
Operating lease liabilities		29,802							30,675
Accrued expenses and other liabilities		52,640							62,176
Total liabilities		7,070,939							7,084,232
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,988,497				2.65			6,991,381				2.71
Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,016							302,653
Retained earnings and other equity		449,736							436,374
Total shareholders' equity		908,536							896,811
Total liabilities and shareholders' equity	$	7,979,475						$	7,981,043
Net interest income				$	59,957						$	57,167
Net interest spread						2.34							2.23
Effect of net interest-free funding sources						0.86							0.86
Net interest margin						3.20	%						3.09	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%						133.82	%
* Obligations of states and political subdivisions 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 amortization of $689 thousand and $554 thousand for the three months ended June 30, 2025 and March 31, 2025, 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, 2025 and March 31, 2025 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	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	131,391		$	1,371	4.19	%	$	84,546		$	1,108	5.27	%
Obligations of state and political subdivisions*		-			-	-			1,269			7	2.22
Other debt and equity securities		497,214			3,962	3.20			491,871			3,741	3.06
Federal Home Loan Bank, Federal Reserve Bank and other stock		36,711			671	7.33			37,286			700	7.55
Total interest-earning deposits, investments and other interest-earning assets		665,316			6,004	3.62			614,972			5,556	3.63
Commercial, financial, and agricultural loans		1,005,784			17,686	7.05			983,615			17,447	7.13
Real estate—commercial and construction loans		3,692,262			54,165	5.88			3,549,206			50,577	5.73
Real estate—residential loans		1,727,381			21,772	5.06			1,660,489			20,413	4.94
Loans to individuals		15,575			337	8.68			26,821			542	8.13
Tax-exempt loans and leases		228,856			2,966	5.20			230,495			2,476	4.32
Lease financings		177,080			3,192	7.23			189,910			3,105	6.58
Gross loans and leases		6,846,938			100,118	5.86			6,640,536			94,560	5.73
Total interest-earning assets		7,512,254			106,122	5.67			7,255,508			100,116	5.55
Cash and due from banks		55,335							56,387
Allowance for credit losses, loans and leases		(88,127	)						(86,293	)
Premises and equipment, net		47,299							48,725
Operating lease right-of-use assets		26,948							30,344
Other assets		425,766							416,869
Total assets	$	7,979,475						$	7,721,540
Liabilities:
Interest-bearing checking deposits	$	1,216,909		$	7,800	2.57	%	$	1,094,150		$	7,311	2.69	%
Money market savings		1,754,428			16,945	3.87			1,692,759			19,131	4.55
Regular savings		700,762			749	0.43			759,960			929	0.49
Time deposits		1,541,008			16,261	4.23			1,422,113			16,134	4.56
Total time and interest-bearing deposits		5,213,107			41,755	3.21			4,968,982			43,505	3.52
Short-term borrowings		5,254			1	0.08			29,506			242	2.30
Long-term debt		200,549			2,128	4.26			250,000			2,777	4.47
Subordinated notes		149,444			2,281	6.12			148,943			2,281	6.16
Total borrowings		355,247			4,410	4.98			428,449			5,300	4.98
Total interest-bearing liabilities		5,568,354			46,165	3.33			5,397,431			48,805	3.64
Noninterest-bearing deposits		1,420,143							1,384,770
Operating lease liabilities		29,802							33,382
Accrued expenses and other liabilities		52,640							61,385
Total liabilities		7,070,939							6,876,968
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,988,497				2.65			6,782,201				2.89
Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,016							299,426
Retained earnings and other equity		449,736							387,362
Total shareholders' equity		908,536							844,572
Total liabilities and shareholders' equity	$	7,979,475						$	7,721,540
Net interest income				$	59,957						$	51,311
Net interest spread						2.34							1.91
Effect of net interest-free funding sources						0.86							0.93
Net interest margin						3.20	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%						134.43	%
* Obligations of states and political subdivisions 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 amortization of $689 thousand and $698 thousand for the three months ended June 30, 2025 and 2024, 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, 2025 and 2024 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	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	125,725		$	2,731	4.38	%	$	102,696		$	2,717	5.32	%
Obligations of state and political subdivisions*		437			4	1.85			1,610			19	2.37
Other debt and equity securities		498,201			7,981	3.23			495,451			7,388	3.00
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,134			1,358	7.37			38,201			1,424	7.50
Total interest-earning deposits, investments and other interest-earning assets		661,497			12,074	3.68			637,958			11,548	3.64
Commercial, financial, and agricultural loans		998,363			34,706	7.01			959,132			33,970	7.12
Real estate—commercial and construction loans		3,698,214			106,841	5.83			3,562,174			101,218	5.71
Real estate—residential loans		1,728,259			43,314	5.05			1,639,339			39,968	4.90
Loans to individuals		17,495			730	8.41			27,068			1,090	8.10
Tax-exempt loans and leases		229,491			5,827	5.12			231,437			4,940	4.29
Lease financings		179,872			6,432	7.21			189,800			6,274	6.65
Gross loans and leases		6,851,694			197,850	5.82			6,608,950			187,460	5.70
Total interest-earning assets		7,513,191			209,924	5.63			7,246,908			199,008	5.52
Cash and due from banks		56,009							55,628
Allowance for credit losses, loans and leases		(87,975	)						(86,394	)
Premises and equipment, net		47,076							49,659
Operating lease right-of-use assets		27,352							30,733
Other assets		424,601							412,524
Total assets	$	7,980,254						$	7,709,058
Liabilities:
Interest-bearing checking deposits	$	1,219,446		$	14,875	2.46	%	$	1,137,423		$	15,529	2.75	%
Money market savings		1,797,074			34,980	3.93			1,699,025			38,351	4.54
Regular savings		701,648			1,512	0.43			764,943			1,834	0.48
Time deposits		1,508,930			32,367	4.33			1,330,496			29,764	4.50
Total time and interest-bearing deposits		5,227,098			83,734	3.23			4,931,887			85,478	3.49
Short-term borrowings		6,076			15	0.50			19,816			247	2.51
Long-term debt		208,978			4,489	4.33			271,243			5,660	4.20
Subordinated notes		149,382			4,562	6.16			148,881			4,562	6.16
Total borrowings		364,436			9,066	5.02			439,940			10,469	4.79
Total interest-bearing liabilities		5,591,534			92,800	3.35			5,371,827			95,947	3.59
Noninterest-bearing deposits		1,398,396							1,396,917
Operating lease liabilities		30,236							33,774
Accrued expenses and other liabilities		57,382							62,981
Total liabilities		7,077,548							6,865,499
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")		6,989,930				2.68			6,768,744				2.85
Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,830							300,052
Retained earnings and other equity		443,092							385,723
Total shareholders' equity		902,706							843,559
Total liabilities and shareholders' equity	$	7,980,254						$	7,709,058
Net interest income				$	117,124						$	103,061
Net interest spread						2.28							1.93
Effect of net interest-free funding sources						0.86							0.93
Net interest margin						3.14	%						2.86	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.37	%						134.91	%
* Obligations of states and political subdivisions 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 amortization of $1.2 million for the six months ended June 30, 2025 and 2024.
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, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
June 30, 2025
(Dollars in thousands)
Industry Description	Total Outstanding Balance			% of Commercial Loan Portfolio
CRE - Retail	$	453,445		8.4	%
Animal Production		401,946		7.5
CRE - Multi-family		360,345		6.7
CRE - 1-4 Family Residential Investment		279,322		5.2
CRE - Office		262,374		4.9
Hotels & Motels (Accommodation)		222,878		4.1
CRE - Industrial / Warehouse		222,234		4.1
Specialty Trade Contractors		197,138		3.7
Nursing and Residential Care Facilities		167,978		3.1
Homebuilding (tract developers, remodelers)		154,166		2.9
Merchant Wholesalers, Durable Goods		140,876		2.6
Repair and Maintenance		135,318		2.5
Motor Vehicle and Parts Dealers		132,852		2.5
Crop Production		113,684		2.1
CRE - Mixed-Use - Residential		113,422		2.1
Wood Product Manufacturing		99,041		1.8
Food Services and Drinking Places		88,822		1.7
Real Estate Lenders, Secondary Market Financing		87,750		1.6
Administrative and Support Services		86,092		1.6
Professional, Scientific, and Technical Services		85,567		1.6
Merchant Wholesalers, Nondurable Goods		81,836		1.5
Private Equity & Special Purpose Entities (except 52592)		76,957		1.4
CRE - Mixed-Use - Commercial		76,067		1.4
Fabricated Metal Product Manufacturing		72,635		1.4
Amusement, Gambling, and Recreation Industries		69,971		1.3
Education		65,839		1.2
Religious Organizations, Advocacy Groups		65,568		1.2
Personal and Laundry Services		63,886		1.2
Miniwarehouse / Self-Storage		63,531		1.2
Food Manufacturing		53,682		1.0
Industries with >$50 million in outstandings	$	4,495,222		83.6	%
Industries with <$50 million in outstandings	$	880,273		16.4	%
Total Commercial Loans	$	5,375,495		100.0	%
Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		984,166
Real Estate-Home Equity Secured for Personal Purpose		195,014
Loans to Individuals		14,069
Lease Financings		232,441
Total - Consumer Loans and Lease Financings	$	1,425,690
Total	$	6,801,185

Univest Financial Corporation
Non-GAAP Reconciliation
June 30, 2025
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.
	As of or for the three months ended,																				As of or for the six months ended,
(Dollars in thousands)	06/30/25				03/31/25				12/31/24				09/30/24				06/30/24				06/30/25				06/30/24
Net income	$	19,978			$	22,395			$	18,941			$	18,578			$	18,107			$	42,373			$	38,412
Amortization of intangibles, net of tax		103				103				122				130				149				206				296
Net income before amortization of intangibles	$	20,081			$	22,498			$	19,063			$	18,708			$	18,256			$	42,579			$	38,708
Shareholders' equity	$	916,733			$	903,472			$	887,301			$	877,071			$	854,137			$	916,733			$	854,137
Goodwill		(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Other intangibles (a)		(2,040	)			(2,104	)			(2,263	)			(2,147	)			(2,157	)			(2,040	)			(2,157	)
Tangible common equity	$	739,183			$	725,858			$	709,528			$	699,414			$	676,470			$	739,183			$	676,470
Total assets	$	7,939,056			$	7,975,167			$	8,128,417			$	8,205,737			$	7,855,446			$	7,939,056			$	7,855,446
Goodwill		(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Other intangibles (a)		(2,040	)			(2,104	)			(2,263	)			(2,147	)			(2,157	)			(2,040	)			(2,157	)
Tangible assets	$	7,761,506			$	7,797,553			$	7,950,644			$	8,028,080			$	7,677,779			$	7,761,506			$	7,677,779
Average shareholders' equity	$	908,536			$	896,811			$	880,237			$	864,406			$	844,572			$	902,706			$	843,559
Average goodwill		(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)			(175,510	)
Average other intangibles (a)		(2,068	)			(2,162	)			(2,146	)			(2,086	)			(2,222	)			(2,114	)			(2,271	)
Average tangible common equity	$	730,958			$	719,139			$	702,581			$	686,810			$	666,840			$	725,082			$	665,778
(a) Amount does not include mortgage servicing rights

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

FAQ

What was Univest Financial's (UVSP) earnings per share in Q2 2025?

Univest reported diluted earnings per share of $0.69 in Q2 2025, compared to $0.62 in Q2 2024.

How much was Univest's (UVSP) net interest margin in Q2 2025?

Univest's net interest margin was 3.20% in Q2 2025, up from 2.84% in Q2 2024.

What is the dividend amount announced by Univest (UVSP) for Q2 2025?

Univest declared a quarterly cash dividend of $0.22 per share, payable on August 20, 2025 to shareholders of record as of August 6, 2025.

How did Univest's (UVSP) nonperforming assets change in Q2 2025?

Nonperforming assets increased to $50.6 million from $34.0 million in Q1 2025, primarily due to a $23.7 million commercial loan relationship placed on nonaccrual status.

What was Univest's (UVSP) total deposit position in Q2 2025?

Total deposits were $6.58 billion, with a decrease of $75.8 million (1.1%) from Q1 2025, primarily due to seasonal decreases in public funds deposits and decreases in consumer and brokered deposits.