(2022 Loan Growth of 16.0% (excluding PPP¹ loans))

SOUDERTON, Pa., Jan. 25, 2023 (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, announced net income for the quarter ended December 31, 2022 was $23.8 million, or $0.81 diluted earnings per share, compared to net income of $17.4 million, or $0.59 diluted earnings per share, for the quarter ended December 31, 2021.

One-Time Items

The financial results for the quarter included bank owned life insurance ("BOLI") death benefit claims of $526 thousand, which represented $0.02 diluted earnings per share. Restructuring charges of $184 thousand were recognized in the fourth quarter related to the consolidation of two financial centers.

Loans

Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans¹, increased $842.8 million, or 16.0%, from December 31, 2021, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings. Gross loans and leases, excluding PPP loans, increased $274.0 million, or 18.8% (annualized), from September 30, 2022, primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.

Deposits

Total deposits decreased $151.3 million, or 2.5%, from December 31, 2021, primarily due to decreases in commercial, consumer and public funds deposits partially offset by an increase in brokered deposits. Total deposits increased $116.8 million, or 8.0% (annualized), from September 30, 2022, primarily due to increases in commercial, consumer and brokered deposits partially offset by decreases in public funds deposits.

Net Interest Income and Margin

Net interest income of $61.9 million for the three months ended December 31, 2022 increased $3.7 million, or 6.3%, from the three months ended September 30, 2022, and $14.4 million, or 30.3%, from the three months ended December 31, 2021. The increase in net interest income for the three months ended December 31, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity of the Corporation's balance sheet, offset by an increase in costs of funds.

Net interest margin, on a tax-equivalent basis, was 3.76% for the fourth quarter of 2022, compared to 3.67% for the third quarter of 2022 and 2.86% for the fourth quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended December 31, 2022 compared to one basis point for the quarter ended September 30, 2022 and 43 basis points for the quarter ended December 31, 2021. PPP loans had no impact on net interest margin for the quarters ended December 31, 2022 and September 30, 2022 and had a favorable impact on net interest margin of eight basis points for the quarter ended December 31, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.77% for the quarter ended December 31, 2022 compared to 3.68% for the quarter ended September 30, 2022 and 3.21% for the quarter ended December 31, 2021.

Noninterest Income

Noninterest income for the quarter ended December 31, 2022 was $20.5 million, an increase of $1.3 million, or 6.6%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $700 thousand, or 14.3%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase was primarily due to a $1.2 million adjustment in the quarter for previously unrecorded revenue of which $815 thousand related to the first nine months of 2022. This adjustment was partially offset by decreased income driven by reduced assets under management due to market volatility. Insurance commission and fee income increased $698 thousand, or 18.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.

Other income increased $1.2 million, or 114.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year due to a $1.1 million increase in interest rate swap income.

BOLI increased $511 thousand, or 71.1%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to death benefit claims as previously discussed.

Net gain on mortgage banking activities decreased $2.1 million, or 82.7%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of gain on sale margins.

Noninterest Expense

Noninterest expense for the quarter ended December 31, 2022 was $47.3 million, an increase of $4.0 million, or 9.2%, from the comparable period in the prior year. The results for the three months ended December 31, 2022 included approximately $434 thousand in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to personalize experiences and seamlessly deliver existing products and services, digitally, across an expanded footprint.

Salaries, benefits and commissions increased $1.7 million, or 6.0%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western Pennsylvania, and annual merit increases.

Data processing expenses increased $684 thousand, or 20.4%, for the quarter ended December 31, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology, general price increases, and $206 thousand in support of the previously discussed digital transformation initiative for the respective period.

Restructuring charges increased $184 thousand for the quarter ended December 31, 2022 compared to the comparable period in the prior year as previously discussed.

Other expense increased $1.2 million, or 21.3%, for the quarter compared to the comparable period in the prior year primarily due to increases in travel and entertainment expenses of $228 thousand for the quarter and $430 thousand of fraud losses.

Tax Provision

The effective income tax rate was 19.6% for the year ended December 31, 2022, compared to an effective income tax rate of 19.7% for the year ended December 31, 2021. The effective tax rate for the year ended December 31, 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 $33.5 million at December 31, 2022, compared to $33.0 million at September 30, 2022 and $34.0 million at December 31, 2021.

Net loan and lease charge-offs were $908 thousand and $1.2 million for the three months ended December 31, 2022 and September 30, 2022, respectively, compared to net loan and lease recoveries of $243 thousand for the three months ended December 31, 2021. Net loan and lease charge-offs were $3.9 million and $213 thousand for the year ended December 31, 2022 and December 31, 2021, respectively.

The provision for credit losses was $5.4 million for the three months ended December 31, 2022 compared to a provision for credit losses of $3.6 million and $1.4 million for the three months ended September 30, 2022 and December 31, 2021, respectively. The provision for credit losses was $12.2 million for the year ended December 31, 2022 compared to a reversal of provision for credit losses of $10.1 million for the comparable period in the prior year. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.29% at December 31, 2022 compared to 1.28% at September 30, 2022 and 1.35% at December 31, 2021.

Dividend

On January 25, 2023, Univest declared a quarterly cash dividend of $0.21 per share to be paid on February 22, 2023 to shareholders of record as of February 8, 2023.

Conference Call

Univest will host a conference call to discuss fourth quarter 2022 results on Thursday, January 26, 2023 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=789ec9e7&confId=45853. The general public can access the call by dialing 1-844-200-6205; using Access Code 610261. A replay of the conference call will be available through February 23, 2023 by dialing 1-866-813-9403; using Access Code: 720149.

¹Non-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 $7.2 billion in assets and $4.2 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 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, 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, 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; (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, accounting 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 continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (11) potential recessionary conditions and/or (12) 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)
December 31, 2022
(Dollars in thousands)

Balance Sheet (Period End)	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21
ASSETS
Cash and due from banks	$	84,176		$	65,859		$	59,590		$	57,307		$	49,202
Interest-earning deposits with other banks		68,623			47,451			35,187			716,474			840,948
Cash and cash equivalents		152,799			113,310			94,777			773,781			890,150
Investment securities held-to-maturity		154,727			159,170			159,808			166,339			176,983
Investment securities available for sale, net of allowance for credit losses		350,256			347,479			351,382			349,994			317,007
Investments in equity securities		2,579			2,994			2,934			2,569			2,999
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		33,841			29,475			29,116			26,330			28,186
Loans held for sale		5,037			9,087			8,352			14,521			21,600
Loans and leases held for investment		6,123,230			5,849,259			5,661,777			5,400,786			5,310,017
Less: Allowance for credit losses, loans and leases		(79,004	)		(74,929	)		(72,011	)		(68,286	)		(71,924	)
Net loans and leases held for investment		6,044,226			5,774,330			5,589,766			5,332,500			5,238,093
Premises and equipment, net		50,939			50,533			50,080			50,429			56,882
Operating lease right-of-use assets		30,059			30,654			30,929			30,498			30,407
Goodwill		175,510			175,510			175,510			175,510			175,510
Other intangibles, net of accumulated amortization		11,384			11,650			11,728			11,784			11,848
Bank owned life insurance		120,297			120,035			120,103			119,398			118,699
Accrued interest and other assets		90,362			83,170			76,328			54,087			54,057
Total assets	$	7,222,016		$	6,907,397		$	6,700,813		$	7,107,740		$	7,122,421

LIABILITIES
Noninterest-bearing deposits	$	2,037,562		$	1,968,422		$	2,062,538		$	2,136,467		$	2,065,423
Interest-bearing deposits:		3,866,263			3,818,554			3,500,510			3,911,465			3,989,701
Total deposits		5,903,825			5,786,976			5,563,048			6,047,932			6,055,124
Short-term borrowings		197,141			80,711			97,606			18,976			20,106
Long-term debt		95,000			95,000			95,000			95,000			95,000
Subordinated notes		148,260			99,107			99,030			98,952			98,874
Operating lease liabilities		33,153			33,718			33,951			33,566			33,453
Accrued expenses and other liabilities		68,137			57,698			48,253			39,459			46,070
Total liabilities		6,445,516			6,153,210			5,936,888			6,333,885			6,348,627

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		300,808			299,791			298,800			297,945			299,181
Retained earnings		428,637			410,942			396,295			389,332			375,124
Accumulated other comprehensive loss, net of tax benefit		(62,104	)		(64,985	)		(42,781	)		(31,909	)		(16,353	)
Treasury stock, at cost		(48,625	)		(49,345	)		(46,173	)		(39,297	)		(41,942	)
Total shareholders' equity		776,500			754,187			763,925			773,855			773,794
Total liabilities and shareholders' equity	$	7,222,016		$	6,907,397		$	6,700,813		$	7,107,740		$	7,122,421


	For the three months ended,															For the twelve months ended,
Balance Sheet (Average)	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21			12/31/22		12/31/21
Assets	$	7,019,381		$	6,797,466		$	6,962,401		$	7,047,980		$	7,088,289		$	6,956,292	$	6,655,443
Investment securities, net of allowance for credit losses		505,717			517,335			515,741			522,128			469,588			515,192		406,463
Loans and leases, gross		5,979,581			5,752,119			5,520,580			5,344,698			5,255,279			5,651,265		5,322,475
Deposits		5,837,823			5,645,291			5,903,173			5,984,815			6,041,798			5,841,832		5,591,195
Shareholders' equity		767,192			773,099			771,410			774,358			762,334			771,499		734,456

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
December 31, 2022
(Dollars in thousands)

Summary of Major Loan and Lease Categories (Period End)	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21
Commercial, financial and agricultural	$	1,086,781		$	1,052,733		$	1,028,354		$	932,485		$	956,396
Paycheck Protection Program		2,147			2,207			5,358			10,298			31,748
Real estate-commercial		3,027,955			2,936,204			2,870,286			2,816,737			2,718,535
Real estate-construction		381,811			329,915			319,449			285,083			283,918
Real estate-residential secured for business purpose		478,254			443,837			419,652			412,486			409,900
Real estate-residential secured for personal purpose		730,395			685,771			629,144			568,735			540,566
Real estate-home equity secured for personal purpose		176,699			175,843			168,536			160,134			158,909
Loans to individuals		27,873			26,679			27,061			26,249			25,504
Lease financings		211,315			196,070			193,937			188,579			184,541
Total loans and leases held for investment, net of deferred income		6,123,230			5,849,259			5,661,777			5,400,786			5,310,017
Less: Allowance for credit losses, loans and leases		(79,004	)		(74,929	)		(72,011	)		(68,286	)		(71,924	)
Net loans and leases held for investment	$	6,044,226		$	5,774,330		$	5,589,766		$	5,332,500		$	5,238,093


Asset Quality Data (Period End)	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21
Nonaccrual loans and leases, including nonaccrual troubled debt restructured
loans and leases	$	13,353		$	13,620		$	13,355		$	30,876		$	33,210
Accruing loans and leases 90 days or more past due		875			416			2,784			274			498
Accruing troubled debt restructured loans and leases		49			50			50			51			51
Total nonperforming loans and leases		14,277			14,086			16,189			31,201			33,759
Other real estate owned		19,258			18,960			18,604			279			279
Total nonperforming assets	$	33,535		$	33,046		$	34,793		$	31,480		$	34,038
Nonaccrual loans and leases / Loans and leases held for investment		0.22	%		0.23	%		0.24	%		0.57	%		0.63	%
Nonperforming loans and leases / Loans and leases held for investment		0.23	%		0.24	%		0.29	%		0.58	%		0.64	%
Nonperforming assets / Total assets		0.46	%		0.48	%		0.52	%		0.44	%		0.48	%

Allowance for credit losses, loans and leases	$	79,004		$	74,929		$	72,011		$	68,286		$	71,924
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.29	%		1.28	%		1.27	%		1.26	%		1.35	%
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)		1.29	%		1.28	%		1.27	%		1.27	%		1.36	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment		591.66	%		550.14	%		539.21	%		221.16	%		216.57	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment		553.37	%		531.94	%		444.81	%		218.86	%		213.05	%

	For the three months ended,															For the twelve months ended,
	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21			12/31/22			12/31/21
Net loan and lease charge-offs (recoveries)	$	908		$	1,196		$	1,715		$	76		$	(243	)	$	3,895		$	213
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases		0.06	%		0.08	%		0.12	%		0.01	%		(0.02	%)		0.07	%		0.00	%

(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)
December 31, 2022
(Dollars in thousands, except per share data)
	For the three months ended,											For the twelve months ended,
For the period:	12/31/22		09/30/22		06/30/22		03/31/22			12/31/21		12/31/22		12/31/21
Interest income	$	77,401	$	66,877	$	56,717	$	51,198		$	52,262	$	252,193	$	209,731
Interest expense		15,485		8,627		5,246		4,538			4,737		33,896		21,348
Net interest income		61,916		58,250		51,471		46,660			47,525		218,297		188,383
Provison (reversal of provision) for credit losses		5,416		3,558		6,674		(3,450	)		1,392		12,198		(10,132	)
Net interest income after provision for credit losses		56,500		54,692		44,797		50,110			46,133		206,099		198,515
Noninterest income:
Trust fee income		1,808		1,835		1,998		2,102			2,086		7,743		8,403
Service charges on deposit accounts		1,575		1,522		1,574		1,504			1,486		6,175		5,504
Investment advisory commission and fee income		5,585		4,199		4,812		5,152			4,885		19,748		18,936
Insurance commission and fee income		4,424		4,442		4,629		5,570			3,726		19,065		16,357
Other service fee income		3,236		3,124		3,309		2,756			2,759		12,425		10,275
Bank owned life insurance income		1,230		1,153		705		699			719		3,787		3,981
Net gain on sales of investment securities		-		-		-		30			5		30		145
Net gain on mortgage banking activities		436		817		1,230		1,929			2,518		4,412		15,141
Other income		2,164		867		741		728			1,008		4,500		4,482
Total noninterest income		20,458		17,959		18,998		20,470			19,192		77,885		83,224
Noninterest expense:
Salaries, benefits and commissions		29,028		29,400		29,133		28,245			27,374		115,806		104,191
Net occupancy		2,551		2,504		2,422		2,716			2,477		10,193		10,397
Equipment		977		968		977		982			985		3,904		3,899
Data processing		4,039		3,901		3,708		3,567			3,355		15,215		12,743
Professional fees		1,829		2,521		2,844		2,138			1,750		9,332		7,687
Marketing and advertising		739		605		693		425			683		2,462		2,063
Deposit insurance premiums		708		662		812		893			698		3,075		2,712
Intangible expenses		301		309		342		341			267		1,293		979
Restructuring charges		184		-		-		-			-		184		-
Other expense		6,970		5,795		6,440		6,105			5,746		25,310		22,738
Total noninterest expense		47,326		46,665		47,371		45,412			43,335		186,774		167,409
Income before taxes		29,632		25,986		16,424		25,168			21,990		97,210		114,330
Income tax expense		5,796		5,185		3,258		4,851			4,578		19,090		22,529
Net income	$	23,836	$	20,801	$	13,166	$	20,317		$	17,412	$	78,120	$	91,801
Net income per share:
Basic	$	0.82	$	0.71	$	0.45	$	0.69		$	0.59	$	2.66	$	3.12
Diluted	$	0.81	$	0.71	$	0.45	$	0.68		$	0.59	$	2.64	$	3.11
Dividends declared per share	$	0.21	$	0.21	$	0.21	$	0.20		$	0.20	$	0.83	$	0.80
Weighted average shares outstanding		29,251,293		29,290,829		29,490,154		29,542,467			29,471,304		29,392,606		29,402,845
Period end shares outstanding		29,271,915		29,242,451		29,365,775		29,636,425			29,500,542		29,271,915		29,500,542

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2022

	For the three months ended,															For the twelve months ended,
Profitability Ratios (annualized)	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21			12/31/22			12/31/21

Return on average assets		1.35	%		1.21	%		0.76	%		1.17	%		0.97	%		1.12	%		1.38	%
Return on average assets, excluding restructuring		1.36	%		1.21	%		0.76	%		1.17	%		0.97	%		1.13	%		1.38	%
charges (1)
Return on average shareholders' equity		12.33	%		10.67	%		6.85	%		10.64	%		9.06	%		10.13	%		12.50	%
Return on average shareholders' equity, excluding		12.40	%		10.67	%		6.85	%		10.64	%		9.06	%		10.14	%		12.50	%
restructuring charges (1)
Return on average tangible common equity (1)(3)		16.23	%		14.06	%		9.10	%		14.04	%		11.93	%		13.36	%		16.55	%
Return on average tangible common equity, excluding		16.33	%		14.06	%		9.10	%		14.04	%		11.93	%		13.39	%		16.55	%
restructuring charges (1)(3)
Net interest margin (FTE)		3.76	%		3.67	%		3.19	%		2.89	%		2.86	%		3.38	%		3.06	%
Efficiency ratio (2)		56.9	%		60.6	%		66.6	%		67.0	%		64.3	%		62.4	%		60.9	%
Efficiency ratio, excluding restructuring charges (1)(2)		56.7	%		60.6	%		66.6	%		67.0	%		64.3	%		62.4	%		60.9	%

Capitalization Ratios

Dividends declared to net income		25.8	%		29.6	%		47.1	%		29.1	%		33.9	%		31.2	%		25.6	%
Shareholders' equity to assets (Period End)		10.75	%		10.92	%		11.40	%		10.89	%		10.86	%		10.75	%		10.86	%
Tangible common equity to tangible assets (1)		8.49	%		8.55	%		8.97	%		8.58	%		8.56	%		8.49	%		8.56	%
Common equity book value per share	$	26.53		$	25.79		$	26.01		$	26.11		$	26.23		$	26.53		$	26.23
Tangible common equity book value per share (1)	$	20.42		$	19.67		$	19.91		$	20.06		$	20.14		$	20.42		$	20.14

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.81	%		9.87	%		9.45	%		9.35	%		9.13	%		9.81	%		9.13	%
Common equity tier 1 risk-based capital ratio		10.37	%		10.51	%		10.62	%		11.07	%		11.08	%		10.37	%		11.08	%
Tier 1 risk-based capital ratio		10.37	%		10.51	%		10.62	%		11.07	%		11.08	%		10.37	%		11.08	%
Total risk-based capital ratio		13.67	%		13.10	%		13.23	%		13.73	%		13.77	%		13.67	%		13.77	%

(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	December 31, 2022							September 30, 2022
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	57,059		$	487	3.39	%	$	49,476		$	252	2.02	%
U.S. government obligations		-			-	-			565			3	2.11
Obligations of state and political subdivisions*		2,266			17	2.98			2,308			18	3.09
Other debt and equity securities		503,451			3,316	2.61			514,462			3,010	2.32
Federal Home Loan Bank, Federal Reserve Bank and other stock		29,401			493	6.65			28,368			435	6.08
Total interest-earning deposits, investments and other interest-earning assets		592,177			4,313	2.89			595,179			3,718	2.48

Commercial, financial, and agricultural loans		1,004,940			14,460	5.71			977,549			11,996	4.87
Paycheck Protection Program loans		2,181			11	2.00			3,754			40	4.23
Real estate—commercial and construction loans		3,223,822			39,459	4.86			3,105,821			34,100	4.36
Real estate—residential loans		1,335,220			14,340	4.26			1,256,509			12,492	3.94
Loans to individuals		26,772			401	5.94			27,197			381	5.56
Municipal loans and leases *		233,684			2,433	4.13			235,433			2,432	4.10
Lease financings		152,962			2,416	6.27			145,856			2,195	5.97
Gross loans and leases		5,979,581			73,520	4.88			5,752,119			63,636	4.39
Total interest-earning assets		6,571,758			77,833	4.70			6,347,298			67,354	4.21
Cash and due from banks		56,428							62,930
Allowance for credit losses, loans and leases		(75,390	)						(72,355	)
Premises and equipment, net		50,803							50,476
Operating lease right-of-use assets		30,413							30,740
Other assets		385,369							378,377
Total assets	$	7,019,381						$	6,797,466

Liabilities:
Interest-bearing checking deposits	$	924,012		$	2,746	1.18	%	$	881,395		$	1,251	0.56	%
Money market savings		1,365,502			7,670	2.23			1,246,795			3,709	1.18
Regular savings		1,045,261			492	0.19			1,086,191			302	0.11
Time deposits		433,010			1,586	1.45			416,539			1,189	1.13
Total time and interest-bearing deposits		3,767,785			12,494	1.32			3,630,920			6,451	0.70

Short-term borrowings		101,126			852	3.34			104,453			524	1.99
Long-term debt		95,000			324	1.35			95,000			324	1.35
Subordinated notes		124,250			1,815	5.80			99,065			1,328	5.32
Total borrowings		320,376			2,991	3.70			298,518			2,176	2.89
Total interest-bearing liabilities		4,088,161			15,485	1.50			3,929,438			8,627	0.87
Noninterest-bearing deposits		2,070,038							2,014,371
Operating lease liabilities		33,492							33,786
Accrued expenses and other liabilities		60,498							46,772
Total liabilities		6,252,189							6,024,367

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,121							299,135
Retained earnings and other equity		309,287							316,180
Total shareholders' equity		767,192							773,099
Total liabilities and shareholders' equity	$	7,019,381						$	6,797,466
Net interest income		-		$	62,348			$	-		$	58,727

Net interest spread						3.20							3.34
Effect of net interest-free funding sources						0.56							0.33
Net interest margin						3.76	%						3.67	%
Ratio of average interest-earning assets to average interest-bearing liabilities		160.75	%						161.53	%

* 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 of $(516) thousand and $(498) thousand for the three months ended December 31, 2022 and September 30, 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 December 31, 2022 and September 30, 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 December 31,
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	$	57,059		$	487	3.39	%	$	914,287		$	370	0.16	%
U.S. government obligations		-			-	-			6,999			37	2.10
Obligations of state and political subdivisions*		2,266			17	2.98			2,334			19	3.23
Other debt and equity securities		503,451			3,316	2.61			460,255			1,845	1.59
Federal Home Loan Bank, Federal Reserve Bank and other stock		29,401			493	6.65			28,402			375	5.24
Total interest-earning deposits, investments and other interest-earning assets		592,177			4,313	2.89			1,412,277			2,646	0.74

Commercial, financial, and agricultural loans		1,004,940			14,460	5.71			869,471			7,022	3.20
Paycheck Protection Program loans		2,181			11	2.00			53,745			1,568	11.57
Real estate—commercial and construction loans		3,223,822			39,459	4.86			2,826,720			26,669	3.74
Real estate—residential loans		1,335,220			14,340	4.26			1,107,911			10,165	3.64
Loans to individuals		26,772			401	5.94			26,462			249	3.73
Municipal loans and leases*		233,684			2,433	4.13			245,038			2,515	4.07
Lease financings		152,962			2,416	6.27			125,932			1,951	6.15
Gross loans and leases		5,979,581			73,520	4.88			5,255,279			50,139	3.79
Total interest-earning assets		6,571,758			77,833	4.70			6,667,556			52,785	3.14
Cash and due from banks		56,428							54,958
Allowance for credit losses, loans and leases		(75,390	)						(71,020	)
Premises and equipment, net		50,803							56,087
Operating lease right-of-use assets		30,413							31,048
Other assets		385,369							349,660
Total assets	$	7,019,381						$	7,088,289

Liabilities:
Interest-bearing checking deposits	$	924,012		$	2,746	1.18	%	$	939,478		$	493	0.21	%
Money market savings		1,365,502			7,670	2.23			1,616,890			968	0.24
Regular savings		1,045,261			492	0.19			997,814			253	0.10
Time deposits		433,010			1,586	1.45			487,434			1,370	1.12
Total time and interest-bearing deposits		3,767,785			12,494	1.32			4,041,616			3,084	0.30

Short-term borrowings		101,126			852	3.34			14,144			1	0.03
Long-term debt		95,000			324	1.35			95,000			325	1.36
Subordinated notes		124,250			1,815	5.80			98,833			1,327	5.33
Total borrowings		320,376			2,991	3.70			207,977			1,653	3.15
Total interest-bearing liabilities		4,088,161			15,485	1.50			4,249,593			4,737	0.44
Noninterest-bearing deposits		2,070,038							2,000,182
Operating lease liabilities		33,492							34,114
Accrued expenses and other liabilities		60,498							42,066
Total liabilities		6,252,189							6,325,955

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		300,121							298,508
Retained earnings and other equity		309,287							306,042
Total shareholders' equity		767,192							762,334
Total liabilities and shareholders' equity	$	7,019,381						$	7,088,289
Net interest income		-		$	62,348						$	48,048

Net interest spread						3.20							2.70
Effect of net interest-free funding sources						0.56							0.16
Net interest margin						3.76	%						2.86	%
Ratio of average interest-earning assets to average interest-bearing liabilities		160.75	%						156.90	%

* 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 $(516) thousand and $707 thousand for the three months ended December 31, 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 December 31, 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 Twelve Months Ended December 31,
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	$	325,875		$	1,920	0.59	%	$	476,351		$	661	0.14	%
U.S. government obligations		1,929			40	2.07			6,999			144	2.06
Obligations of state and political subdivisions*		2,302			71	3.08			5,702			206	3.61
Other debt and equity securities		510,961			11,392	2.23			393,762			5,992	1.52
Federal Home Loan Bank, Federal Reserve Bank and other stock		27,784			1,627	5.86			26,844			1,417	5.28
Total interest-earning deposits, investments and other interest-earning assets		868,851			15,050	1.73			909,658			8,420	0.93

Commercial, financial, and agricultural loans		955,816			43,064	4.51			840,133			28,142	3.35
Paycheck Protection Program loans		7,939			797	10.04			281,484			15,032	5.34
Real estate—commercial and construction loans		3,060,689			127,906	4.18			2,734,259			101,692	3.72
Real estate—residential loans		1,219,275			47,472	3.89			1,077,952			40,045	3.71
Loans to individuals		26,642			1,325	4.97			26,062			1,018	3.91
Municipal loans and leases*		236,858			9,703	4.10			247,396			10,147	4.10
Lease financings		144,046			8,791	6.10			115,189			7,363	6.39
Gross loans and leases		5,651,265			239,058	4.23			5,322,475			203,439	3.82
Total interest-earning assets		6,520,116			254,108	3.90			6,232,133			211,859	3.40
Cash and due from banks		57,196							55,724
Allowance for credit losses, loans and leases		(72,069	)						(74,943	)
Premises and equipment, net		51,362							55,875
Operating lease right-of-use assets		30,443							32,758
Other assets		369,244							353,896
Total assets	$	6,956,292						$	6,655,443

Liabilities:
Interest-bearing checking deposits	$	884,656		$	5,010	0.57	%	$	850,713		$	2,007	0.24	%
Money market savings		1,389,226			13,835	1.00			1,366,762			3,574	0.26
Regular savings		1,056,019			1,269	0.12			983,752			1,114	0.11
Time deposits		443,845			5,308	1.20			498,638			6,178	1.24
Total time and interest-bearing deposits		3,773,746			25,422	0.67			3,699,865			12,873	0.35

Short-term borrowings		60,468			1,389	2.30			16,552			8	0.05
Long-term debt		95,000			1,287	1.35			96,562			1,318	1.36
Subordinated notes		105,356			5,798	5.50			137,896			7,149	5.18
Total borrowings		260,824			8,474	3.25			251,010			8,475	3.38
Total interest-bearing liabilities		4,034,570			33,896	0.84			3,950,875			21,348	0.54
Noninterest-bearing deposits		2,068,086							1,891,330
Operating lease liabilities		33,508							36,001
Accrued expenses and other liabilities		48,629							42,781
Total liabilities		6,184,793							5,920,987

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		299,121							297,189
Retained earnings and other equity		314,594							279,483
Total shareholders' equity		771,499							734,456
Total liabilities and shareholders' equity	$	6,956,292						$	6,655,443
Net interest income		-		$	220,212						$	190,511

Net interest spread						3.06							2.86
Effect of net interest-free funding sources						0.32							0.20
Net interest margin						3.38	%						3.06	%
Ratio of average interest-earning assets to average interest-bearing liabilities		161.61	%						157.74	%

* 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 $(1.8) million and $8.7 million for the twelve months ended December 31, 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 twelve months ended December 31, 2022 and 2021 have been calculated using the Corporation's federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
December 31, 2022

(Dollars in thousands)
Industry Description	Total Outstanding Balance (excl PPP)		% of Commercial Loan Portfolio
CRE - Retail	$	440,112	8.8	%
Animal Production		340,877	6.9
CRE - Office		292,740	5.9
CRE - Multi-family		277,157	5.6
CRE - 1-4 Family Residential Investment		266,423	5.3
Hotels & Motels (Accommodation)		191,735	3.9
CRE - Industrial / Warehouse		174,357	3.5
Nursing and Residential Care Facilities		169,443	3.4
Education		163,310	3.3
Specialty Trade Contractors		153,422	3.1
Homebuilding (tract developers, remodelers)		149,935	3.0
Merchant Wholesalers, Durable Goods		136,707	2.7
Motor Vehicle and Parts Dealers		122,291	2.5
Credit Intermediation and Other Related Activities		114,124	2.3
CRE - Mixed-Use - Residential		109,812	2.2
Crop Production		91,597	1.8
Administrative and Support Services		79,600	1.6
CRE - Mixed-Use - Commercial		77,790	1.6
Religious Organizations, Advocacy Groups		74,980	1.5
Wood Product Manufacturing		74,913	1.5
Rental and Leasing Services		74,158	1.5
Food Manufacturing		73,755	1.5
Food Services and Drinking Places		68,056	1.4
Merchant Wholesalers, Nondurable Goods		63,539	1.3
Personal and Laundry Services		59,796	1.2
Repair and Maintenance		56,870	1.1
Fabricated Metal Product Manufacturing		55,546	1.1
Miniwarehouse / Self-Storage		55,543	1.1
Amusement, Gambling, and Recreation Industries		55,248	1.1
Private Equity & Special Purpose Entities		53,818	1.1
Truck Transportation		50,182	1.0
Industries with >$50 million in outstandings	$	4,167,836	83.8	%
Industries with <$50 million in outstandings	$	806,965	16.2	%
Total Commercial Loans	$	4,974,801	100.0	%


Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose	$	730,395
Real Estate-Home Equity Secured for Personal Purpose		176,699
Loans to Individuals		27,873
Lease Financings		211,315
Total - Consumer Loans and Lease Financings	$	1,146,282

Total	$	6,121,083

Univest Financial Corporation
Non-GAAP Reconciliation
December 31, 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.

	As of or for the three months ended,															As of or for the twelve months ended,
(Dollars in thousands)	12/31/22			09/30/22			06/30/22			03/31/22			12/31/21			12/31/22			12/31/21
Restructuring charges (a)	$	184		$	-		$	-		$	-		$	-		$	184		$	-
Tax effect of restructuring charges		(39	)		-			-			-			-			(39	)		-
Restructuring charges, net of tax	$	145		$	-		$	-		$	-		$	-		$	145		$	-

Net income	$	23,836		$	20,801		$	13,166		$	20,317		$	17,412		$	78,120		$	91,801
Amortization of intangibles, net of tax		238			244			270			269			211			1,021			773
Net income before amortization of intangibles	$	24,074		$	21,045		$	13,436		$	20,586		$	17,623		$	79,141		$	92,574

Shareholders' equity	$	776,500		$	754,187		$	763,925		$	773,855		$	773,794		$	776,500		$	773,794
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (b)		(3,251	)		(3,485	)		(3,678	)		(3,936	)		(4,210	)		(3,251	)		(4,210	)
Tangible common equity	$	597,739		$	575,192		$	584,737		$	594,409		$	594,074		$	597,739		$	594,074

Total assets	$	7,222,016		$	6,907,397		$	6,700,813		$	7,107,740		$	7,122,421		$	7,222,016		$	7,122,421
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (b)		(3,251	)		(3,485	)		(3,678	)		(3,936	)		(4,210	)		(3,251	)		(4,210	)
Tangible assets	$	7,043,255		$	6,728,402		$	6,521,625		$	6,928,294		$	6,942,701		$	7,043,255		$	6,942,701

Average shareholders' equity	$	767,192		$	773,099		$	771,410		$	774,358		$	762,334		$	771,499		$	734,456
Average goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(173,553	)		(175,510	)		(172,810	)
Average other intangibles (b)		(3,355	)		(3,550	)		(3,791	)		(4,090	)		(2,696	)		(3,694	)		(2,338	)
Average tangible common equity	$	588,327		$	594,039		$	592,109		$	594,758		$	586,085		$	592,295		$	559,308

Loans and leases held for investment, gross	$	6,123,230		$	5,849,259		$	5,661,777		$	5,400,786		$	5,310,017		$	6,123,230		$	5,310,017
Paycheck Protection Program ("PPP") loans		(2,147	)		(2,207	)		(5,358	)		(10,298	)		(31,748	)		(2,147	)		(31,748	)
Gross loans and leases excluding PPP loans	$	6,121,083		$	5,847,052		$	5,656,419		$	5,390,488		$	5,278,269		$	6,121,083		$	5,278,269


(a) Associated with the consolidation of 2 financial centers
(b) Amount does not include mortgage servicing rights

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

Univest Financial Corporation Reports Fourth Quarter and 2022 Results