SOUDERTON, Pa., Oct. 28, 2026 (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 September 30, 2026 of $21.6 million, or $0.78 diluted earnings per share, compared to net income of $25.6 million, or $0.89 diluted earnings per share, for the quarter ended September 30, 2025, primarily due to an increase in provision for credit losses during the quarter associated with elevated charge-offs.

Loans
Gross loans and leases decreased $27.5 million, or 0.4% (1.6% annualized), from June 30, 2026. The decrease was primarily driven by a $35.3 million payoff of a shared national credit relationship and a $14.4 million charge-off associated with a $28.3 million commercial loan relationship. Gross loans and leases increased $99.6 million, or 1.4% (1.9% annualized), from December 31, 2025, and $229.0 million, or 3.4%, from September 30, 2025, primarily driven by growth in construction and commercial real estate loans. The growth from December 31, 2025 and September 30, 2025 was partially offset by a decline in residential mortgage loans, which is consistent with our strategy to focus balance sheet growth on full-relationship customers, which is intended to improve our loan-to-deposit ratio.

Deposits
Total deposits increased $421.5 million, or 6.1% (24.4% annualized), from June 30, 2026, and $267.2 million, or 3.8% (5.1% annualized), from December 31, 2025. The growth in both periods was primarily due to seasonal increases in public funds deposits and increases in commercial deposits, partially offset by decreases in consumer and brokered deposits. Total deposits increased $136.4 million, or 1.9%, from September 30, 2025, primarily due to increases in commercial, consumer and public funds deposits, partially offset by a decrease in brokered deposits.

Net Interest Income and Margin
Net interest income of $67.8 million for the third quarter of 2026 increased $6.4 million, or 10.5%, from the third quarter of 2025 and $1.5 million, or 2.3%, from the second quarter of 2026. The increase in net interest income for the third quarter of 2026 compared to the third quarter of 2025 was driven by higher average balances of loans, coupled with a reduction in our cost of funds, as lower rates paid on interest‑bearing liabilities more than offset the impact of higher average balances of these liabilities. The increase in net interest income for the third quarter of 2026 compared to the second quarter of 2026 was primarily driven by higher average balances on loans and interest-earning deposits with other banks, combined with modest increases in the yields earned on these assets. This was partially offset by an increase in our cost of funds due to the current interest rate environment, and an increase in the average balance of interest-bearing liabilities.

Net interest margin, on a tax-equivalent basis, was 3.42% for the third quarter of 2026, compared to 3.49% for the second quarter of 2026 and 3.17% for the third quarter of 2025. Excess liquidity reduced net interest margin by approximately 13 basis points for the quarter ended September 30, 2026 compared to approximately four basis points for the quarter ended June 30, 2026 and approximately 16 basis points for the quarter ended September 30, 2025. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.55% for the quarter ended September 30, 2026 compared to 3.53% for the second quarter of 2026 and 3.33% for the quarter ended September 30, 2025.

Noninterest Income
Noninterest income for the quarter ended September 30, 2026 was $22.3 million, an increase of $346 thousand, or 1.6%, from the comparable period in the prior year.

Investment advisory commission and fee income increased $762 thousand, or 13.4%, for the quarter ended September 30, 2026 compared to the comparable period in the prior year, driven by appreciation in assets under management and new customer relationships.

Other service fee income increased $479 thousand, or 19.8%, for the quarter ended September 30, 2026 compared to the comparable period in the prior year, primarily due to a $393 thousand increase in mortgage servicing fees. The three months ended September 30, 2026 included a $1 thousand reduction in valuation allowance recorded on mortgage servicing rights, compared to a $308 thousand increase in valuation allowance recorded in the third quarter of 2025, each of which were primarily driven by changes in interest rates during the quarter and the impact this had on prepayment speed assumptions.

BOLI income decreased $920 thousand, or 48.2%, for the quarter ended September 30, 2026 compared to the comparable period in the prior year. The financial results for the three months ended September 30, 2025 included $967 thousand in BOLI death benefit proceeds.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2026 was $54.0 million, an increase of $3.3 million, or 6.6%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $2.6 million, or 8.2%, for the quarter ended September 30, 2026 compared to the comparable period in the prior year, driven by higher salary expense of $1.4 million due to annual merit increases and higher staffing levels, increased commission expense of $258 thousand, and an increase of $390 thousand in medical claims expenses.

Marketing and advertising expense increased $463 thousand, or 143.3%, for the quarter ended September 30, 2026 compared to the comparable period in the prior year. This increase was primarily driven by the inclusion of certain sponsorship activities that were historically reported in Other Expense and the Corporation's entry into a sponsorship agreement with a local university, enhancing community engagement and visibility.

Data processing increased $340 thousand, or 8.0%, for the quarter ended September 30, 2026 compared to the comparable period in the prior year primarily due to annual cost increases.

Tax Provision
The effective income tax rate was 20.2% for the quarter ended September 30, 2026, compared to an effective tax rate of 20.0% for the quarter ended September 30, 2025. The effective tax rate for the three months ended September 30, 2025 was favorably impacted by BOLI death benefit proceeds. Excluding the BOLI death benefit proceeds, the effective tax rate was 20.7% for the three months ended September 30, 2025.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $51.4 million at September 30, 2026, $63.0 million at June 30, 2026, and $52.1 million at September 30, 2025. During the quarter, an existing nonaccrual commercial loan relationship totaling $28.3 million incurred charge-offs of $14.4 million. This relationship had a specific reserve of $9.8 million, and the remaining carrying value was supported by a letter of intent to sell the business.

Net loan and lease charge-offs were $17.6 million for the three months ended September 30, 2026 compared to $1.9 million and $480 thousand for the three months ended June 30, 2026 and September 30, 2025, respectively. The increase in charge-offs for the quarter compared to the prior periods was primarily due to the previously discussed $14.4 million charge-off. Additionally, a separate $6.9 million commercial loan relationship incurred a $2.7 million charge-off and the remaining balance was subsequently paid in full in the third quarter.

The provision for credit losses was $9.0 million for the three months ended September 30, 2026 compared to $2.7 million and $517 thousand for the three months ended June 30, 2026 and September 30, 2025, respectively, primarily due to net charge-off activity during the quarter.

Dividend and Share Repurchases
On October 28, 2026, Univest declared a quarterly cash dividend of $0.23 per share to be paid on November 25, 2026 to shareholders of record as of November 11, 2026. During the quarter ended September 30, 2026, the Corporation repurchased 301,127 shares of common stock at an average price of $42.50 per share. Including brokerage fees and excise tax, the average cost per share was $42.96. As of September 30, 2026, 1,193,133 shares are available for repurchase under the Corporation's share repurchase plan.

Conference Call
Univest will host a conference call to discuss third quarter 2026 results on Thursday, October 29, 2026 at 9:00 a.m. EDT. Participants may preregister at https://registrations.events/direct/Q4I37740VIPBmQSGdfZvAKstK. The general public can access the call by dialing 1-800-715-9871; referencing Conference ID 37740 or "Univest Financial Corporation Third Quarter 2026 Earnings Call" to the operator. A replay of the conference call will be available through November 5, 2026 using the following link: https://registrations.events/direct/Q4I37740VIPBmQSGdfZvAKstK.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $8.6 billion in assets and $6.2 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2026. 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 and are subject to change based on various factors, many of which are beyond our control. 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 effectiveness of our risk management processes and procedures; (12) the ability to maintain and increase market share and control expenses; (13) the imposition of tariffs or other domestic or international governmental policies, trade restrictions and retaliatory measures impacting our borrowers and the broader economy; (14) the impact of a potential government shutdown, debt ceiling impasses or fiscal uncertainty; (15) the failure to maintain current technologies and to successfully implement future information technology enhancements and the operational risks associated with the adoption of artificial intelligence and other emerging technologies; (16) risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors; (17) changes in the securities markets; (18) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (19) the ability to attract, develop and retain qualified personnel in a competitive labor market; (20) our ability to enter into new markets successfully and capitalize on growth opportunities; (21) changes in investor sentiment or consumer spending or savings behavior; and/or (22) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2026
(Dollars in thousands)              
               
Balance Sheet (Period End) 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25    
ASSETS              
Cash and due from banks $64,468  $79,490  $69,645  $63,579  $70,843     
Interest-earning deposits with other banks  560,614   115,835   152,712   490,133   745,896     
Cash and cash equivalents  625,082   195,325   222,357   553,712   816,739     
Investment securities held-to-maturity  114,665   116,207   119,490   123,024   126,040     
Investment securities available for sale, net of allowance for credit losses  374,564   378,586   379,028   371,251   368,393     
Investments in equity securities  2,418   2,705   2,898   2,014   2,413     
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost  36,252   32,798   35,511   37,808   39,617     
Loans held for sale  11,540   13,237   14,371   15,288   6,330     
Loans and leases held for investment  7,014,437   7,041,957   6,940,212   6,914,804   6,785,482     
Less: Allowance for credit losses, loans and leases  (80,950)  (89,967)  (88,900)  (88,165)  (86,527)    
Net loans and leases held for investment  6,933,487   6,951,990   6,851,312   6,826,639   6,698,955     
Premises and equipment, net  44,244   44,373   44,774   45,554   46,245     
Operating lease right-of-use assets  24,588   24,267   25,032   25,795   26,536     
Goodwill  175,510   175,510   175,510   175,510   175,510     
Other intangibles, net of accumulated amortization  7,891   7,850   7,583   7,328   7,537     
Bank owned life insurance  143,117   142,130   142,141   140,001   139,044     
Accrued interest and other assets  113,048   118,014   121,575   112,973   120,257     
Total assets $8,606,406  $8,202,992  $8,141,582  $8,436,897  $8,573,616     
               
LIABILITIES              
Noninterest-bearing deposits $1,405,877  $1,463,965  $1,475,851  $1,431,974  $1,390,565     
Interest-bearing deposits:  5,948,643   5,469,043   5,337,912   5,655,339   5,827,578     
Total deposits  7,354,520   6,933,008   6,813,763   7,087,313   7,218,143     
Short-term borrowings  186   18,826   26,156   24,411   11,951     
Long-term debt  125,000   125,000   175,000   200,000   200,000     
Subordinated notes  99,084   98,994   98,908   98,867   129,597     
Operating lease liabilities  27,106   26,863   27,699   28,531   29,310     
Accrued expenses and other liabilities  51,352   46,048   48,106   54,457   51,396     
Total liabilities  7,657,248   7,248,739   7,189,632   7,493,579   7,640,397     
               
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  303,852   302,549   301,154   304,021   302,696     
Retained earnings  643,560   628,327   611,771   591,202   574,715     
Accumulated other comprehensive loss, net of tax benefit  (36,155)  (26,728)  (25,951)  (25,467)  (31,636)    
Treasury stock, at cost  (119,883)  (107,679)  (92,808)  (84,222)  (70,340)    
Total shareholders’ equity  949,158   954,253   951,950   943,318   933,219     
Total liabilities and shareholders’ equity $8,606,406  $8,202,992  $8,141,582  $8,436,897  $8,573,616     
               
               
  For the three months ended, For the nine months ended,
Balance Sheet (Average) 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25
Assets $8,394,497  $8,132,913  $8,250,766  $8,528,465  $8,191,010  $8,259,919 $8,051,278
Investment securities, net of allowance for credit losses  497,334   502,065   499,078   497,201   492,197   499,486  496,468
Loans and leases, gross  7,065,392   7,008,079   6,939,600   6,848,654   6,790,827   7,004,818  6,831,183
Deposits  7,122,942   6,843,709   6,891,928   7,165,437   6,836,043   6,953,705  6,696,449
Shareholders' equity  959,570   951,863   949,509   936,417   923,454   953,685  909,698


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2026
(Dollars in thousands)              
               
Summary of Major Loan and Lease Categories (Period End) 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25    
Commercial, financial and agricultural $1,012,290  $1,081,624  $1,038,947  $1,027,434  $996,612     
Real estate-commercial  3,707,402   3,684,721   3,656,779   3,621,536   3,517,803     
Real estate-construction  355,346   329,558   299,962   306,793   309,365     
Real estate-residential secured for business purpose  575,125   576,326   556,040   554,178   545,191     
Real estate-residential secured for personal purpose  901,823   911,116   942,054   959,610   974,395     
Real estate-home equity secured for personal purpose  208,666   205,502   201,244   200,394   197,503     
Loans to individuals  12,239   12,342   12,319   12,793   13,447     
Lease financings  241,546   240,768   232,867   232,066   231,166     
Total loans and leases held for investment, net of deferred income  7,014,437   7,041,957   6,940,212   6,914,804   6,785,482     
Less: Allowance for credit losses, loans and leases  (80,950)  (89,967)  (88,900)  (88,165)  (86,527)    
Net loans and leases held for investment $6,933,487  $6,951,990  $6,851,312  $6,826,639  $6,698,955     
               
               
Asset Quality Data (Period End)  09/30/26 06/30/26 03/31/26 12/31/25 09/30/25    
Nonaccrual loans and leases $31,175  $43,897  $13,289  $13,743  $27,330     
Accruing loans and leases 90 days or more past due  849   160   3,750   89   829     
Total nonperforming loans and leases  32,024   44,057   17,039   13,832   28,159     
Other real estate owned  19,301   18,914   24,073   23,926   23,926     
Repossessed assets  50   10   124   65   40     
Total nonperforming assets $51,375  $62,981  $41,236  $37,823  $52,125     
Nonaccrual loans and leases / Loans and leases held for investment  0.44%  0.62%  0.19%  0.20%  0.40%    
Nonperforming loans and leases / Loans and leases held for investment  0.46%  0.63%  0.25%  0.20%  0.41%    
Nonperforming assets / Total assets  0.60%  0.77%  0.51%  0.45%  0.61%    
               
Allowance for credit losses, loans and leases $80,950  $89,967  $88,900  $88,165  $86,527     
Allowance for credit losses, loans and leases / Loans and leases held for investment  1.15%  1.28%  1.28%  1.28%  1.28%    
Allowance for credit losses, loans and leases / Nonaccrual loans and leases  259.66%  204.95%  668.97%  641.53%  316.60%    
Allowance for credit losses, loans and leases / Nonperforming loans and leases  252.78%  204.21%  521.74%  637.40%  307.28%    
               
               
               
  For the three months ended, For the nine months ended,
  09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25
Net loan and lease charge-offs $17,565  $1,932  $1,263  $1,145  $480  $20,760  $9,973 
Net loan and lease charge-offs (annualized)/Average loans and leases  0.99%  0.11%  0.07%  0.07%  0.03%  0.40%  0.20%


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2026
(Dollars in thousands, except per share data)              
  For the three months ended, For the nine months ended,
For the period: 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25
Interest income $112,891 $108,129  $106,351 $111,716 $109,648 $327,371  $318,770
Interest expense  45,130  41,881   42,986  49,167  48,324  129,997   141,124
Net interest income  67,761  66,248   63,365  62,549  61,324  197,374   177,646
Provision for credit losses  8,997  2,672   1,303  3,145  517  12,972   8,522
Net interest income after provision for credit losses  58,764  63,576   62,062  59,404  60,807  184,402   169,124
Noninterest income:              
Trust fee income  2,279  2,283   2,236  2,316  2,230  6,798   6,537
Service charges on deposit accounts  2,373  2,363   2,279  2,237  2,302  7,015   6,754
Investment advisory commission and fee income  6,433  6,043   6,154  6,055  5,671  18,630   16,744
Insurance commission and fee income  5,433  5,351   7,423  4,825  5,468  18,207   17,618
Other service fee income  2,895  3,319   3,041  2,668  2,416  9,255   8,270
Bank owned life insurance income  988  1,698   1,332  970  1,908  4,018   4,879
Net gain on investment securities transactions  -  11   -  -  -  11   -
Net gain on mortgage banking activities  1,164  1,346   791  886  848  3,301   2,476
Net (loss) gain on sales and write-downs of other real estate owned  -  (5,249)  -  -  -  (5,249)  -
Other income  704  941   832  2,065  1,080  2,477   2,561
Total noninterest income  22,269  18,106   24,088  22,022  21,923  64,463   65,839
Noninterest expense:              
Salaries, benefits and commissions  34,245  33,208   33,459  33,009  31,652  100,912   94,014
Net occupancy  2,817  2,938   2,998  2,882  2,675  8,753   8,267
Equipment  1,004  1,122   1,079  1,052  1,076  3,205   3,241
Data processing  4,603  4,627   4,480  4,390  4,263  13,710   13,035
Professional fees  1,793  2,029   1,677  1,947  1,876  5,499   5,270
Marketing and advertising  786  988   634  479  323  2,408   1,174
Deposit insurance premiums  1,252  1,118   1,170  1,106  1,195  3,540   3,420
Intangible expenses  69  92   93  102  106  254   367
Restructuring charges  -  -   427  -  -  427   -
Other expense  7,433  7,002   6,652  7,743  7,503  21,087   21,541
Total noninterest expense  54,002  53,124   52,669  52,710  50,669  159,795   150,329
Income before taxes  27,031  28,558   33,481  28,716  32,061  89,070   84,634
Income tax expense  5,463  5,605   6,389  5,971  6,422  17,457   16,622
Net income $21,568 $22,953  $27,092 $22,745 $25,639 $71,613  $68,012
Net income per share:              
Basic $0.78 $0.83  $0.97 $0.80 $0.89 $2.58  $2.36
Diluted $0.78 $0.82  $0.96 $0.79 $0.89 $2.56  $2.34
Dividends declared per share $0.23 $0.23  $0.22 $0.22 $0.22 $0.68  $0.65
Weighted average shares outstanding  27,485,325  27,741,836   28,032,897  28,376,191  28,716,582  27,751,347   28,856,903
Period end shares outstanding  27,306,376  27,585,768   27,949,173  28,156,917  28,576,346  27,306,376   28,576,346


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2026
                  
     For the three months ended, For the nine months ended,
Profitability Ratios (annualized)  09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25
                  
Return on average assets    1.02%  1.13%  1.33%  1.06%  1.24%  1.16%  1.13%
Return on average assets, excluding restructuring  1.02%  1.13%  1.35%  1.06%  1.24%  1.16%  1.13%
charges (1)                 
Return on average shareholders' equity   8.92%  9.67%  11.57%  9.64%  11.02%  10.04%  10.00%
Return on average shareholders' equity, excluding  8.92%  9.67%  11.72%  9.64%  11.02%  10.09%  10.00%
restructuring charges (1)                
Return on average tangible common equity (1)(3)  10.97%  11.93%  14.27%  11.93%  13.68%  12.37%  12.47%
Return on average tangible common equity, excluding  10.97%  11.93%  14.45%  11.93%  13.68%  12.43%  12.47%
restructuring charges (1)(3)               
Net interest margin (FTE)    3.42%  3.49%  3.33%  3.10%  3.17%  3.41%  3.15%
Efficiency ratio (2)    59.5%  62.3%  59.7%  61.8%  60.2%  60.4%  61.1%
                  
Capitalization Ratios                
                  
Dividends declared to net income   29.4%  27.9%  22.8%  27.5%  24.7%  26.4%  27.6%
Shareholders' equity to assets (Period End)  11.03%  11.63%  11.69%  11.18%  10.88%  11.03%  10.88%
Tangible common equity to tangible assets (1)  9.16%  9.68%  9.72%  9.27%  9.00%  9.16%  9.00%
Common equity book value per share  $34.76  $34.59  $34.06  $33.50  $32.66  $34.76  $32.66 
Tangible common equity book value per share (1) $28.27  $28.16  $27.71  $27.20  $26.45  $28.27  $26.45 
                  
Regulatory Capital Ratios (Period End)               
Tier 1 leverage ratio    9.86%  10.13%  9.95%  9.51%  9.85%  9.86%  9.85%
Common equity tier 1 risk-based capital ratio  11.25%  11.19%  11.32%  11.22%  11.40%  11.25%  11.40%
Tier 1 risk-based capital ratio   11.25%  11.19%  11.32%  11.22%  11.40%  11.25%  11.40%
Total risk-based capital ratio   13.79%  13.81%  13.95%  13.86%  14.28%  13.79%  14.28%
                  
(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 BasisSeptember 30, 2026 June 30, 2026 
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$325,543 $3,0853.76%$120,511 $1,1183.72%
Other debt and equity securities 497,334  4,3083.44  502,065  4,2033.36 
Federal Home Loan Bank, Federal Reserve Bank and other stock 34,132  6707.79  33,537  6257.47 
Total interest-earning deposits, investments and other interest-earning assets 857,009  8,0633.73  656,113  5,9463.63 
         
Commercial, financial, and agricultural loans 1,009,614  16,3606.43  989,950  16,2936.60 
Real estate—commercial and construction loans 3,938,430  59,9356.04  3,892,900  57,5895.93 
Real estate—residential loans 1,694,808  22,1315.18  1,711,210  22,0025.16 
Loans to individuals 12,375  2558.18  12,511  2708.66 
Tax-exempt loans and leases 229,597  3,3475.78  224,883  3,2355.77 
Lease financings 180,568  3,3127.28  176,625  3,2947.48 
Gross loans and leases 7,065,392  105,3405.92  7,008,079  102,6835.88 
Total interest-earning assets 7,922,401  113,4035.68  7,664,192  108,6295.69 
Cash and due from banks 64,256     58,713    
Allowance for credit losses, loans and leases (90,545)    (89,488)   
Premises and equipment, net 44,389     44,926    
Operating lease right-of-use assets 24,795     24,640    
Other assets 429,201     429,930    
Total assets$8,394,497    $8,132,913    
         
Liabilities:        
Interest-bearing checking deposits$1,439,318 $9,4652.61%$1,255,397 $7,6032.43%
Money market savings 2,103,895  17,7563.35  1,998,397  16,6043.33 
Regular savings 725,102  1,1430.63  748,657  1,2030.64 
Time deposits 1,434,985  13,7423.80  1,411,889  13,3573.79 
Total time and interest-bearing deposits 5,703,300  42,1062.93  5,414,340  38,7672.87 
         
Short-term borrowings 10,539  10.04  33,437  300.36 
Long-term debt 125,000  1,2764.05  131,868  1,3374.07 
Subordinated notes 99,036  1,7477.00  98,944  1,7477.08 
Total borrowings 234,575  3,0245.11  264,249  3,1144.73 
Total interest-bearing liabilities 5,937,875  45,1303.02  5,678,589  41,8812.96 
Noninterest-bearing deposits 1,419,642     1,429,369    
Operating lease liabilities 27,352     27,271    
Accrued expenses and other liabilities 50,058     45,821    
Total liabilities 7,434,927     7,181,050    
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,357,517  2.43  7,107,958  2.36 
         
Shareholders' Equity:        
Common stock 157,784     157,784    
Additional paid-in capital 303,039     301,620    
Retained earnings and other equity 498,747     492,459    
Total shareholders' equity 959,570     951,863    
Total liabilities and shareholders' equity$8,394,497    $8,132,913    
Net interest income $68,273   $66,748  
         
Net interest spread  2.66   2.73 
Effect of net interest-free funding sources  0.76   0.76 
Net interest margin  3.42%  3.49%
Ratio of average interest-earning assets to average interest-bearing liabilities 133.42%    134.97%   
         
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 $820 thousand and $801 thousand for the three months ended September 30, 2026 and June 30, 2026, 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 September 30, 2026 and June 30, 2026 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 September 30,   
Tax Equivalent Basis 2026
   2025
 
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$325,543 $3,0853.76%$395,944 $4,3634.37%
Other debt and equity securities 497,334  4,3083.44  492,197  3,9233.16 
Federal Home Loan Bank, Federal Reserve Bank and other stock 34,132  6707.79  37,159  7367.86 
Total interest-earning deposits, investments and other interest-earning assets 857,009  8,0633.73  925,300  9,0223.87 
         
Commercial, financial, and agricultural loans 1,009,614  16,3606.43  949,676  17,2237.20 
Real estate—commercial and construction loans 3,938,430  59,9356.04  3,705,154  55,4695.94 
Real estate—residential loans 1,694,808  22,1315.18  1,719,844  21,8465.04 
Loans to individuals 12,375  2558.18  13,497  3089.05 
Tax-exempt loans and leases 229,597  3,3475.78  229,253  3,0335.25 
Lease financings 180,568  3,3127.28  173,403  3,1597.23 
Gross loans and leases 7,065,392  105,3405.92  6,790,827  101,0385.90 
Total interest-earning assets 7,922,401  113,4035.68  7,716,127  110,0605.66 
Cash and due from banks 64,256     60,950    
Allowance for credit losses, loans and leases (90,545)    (88,202)   
Premises and equipment, net 44,389     46,980    
Operating lease right-of-use assets 24,795     26,901    
Other assets 429,201     428,254    
Total assets$8,394,497    $8,191,010    
         
Liabilities:        
Interest-bearing checking deposits$1,439,318 $9,4652.61%$1,293,781 $8,6852.66%
Money market savings 2,103,895  17,7563.35  1,915,501  18,7653.89 
Regular savings 725,102  1,1430.63  724,927  1,0680.58 
Time deposits 1,434,985  13,7423.80  1,482,837  15,1004.04 
Total time and interest-bearing deposits 5,703,300  42,1062.93  5,417,046  43,6183.19 
         
Short-term borrowings 10,539  10.04  10,639  10.04 
Long-term debt 125,000  1,2764.05  200,000  2,1454.26 
Subordinated notes 99,036  1,7477.00  139,127  2,5607.30 
Total borrowings 234,575  3,0245.11  349,766  4,7065.34 
Total interest-bearing liabilities 5,937,875  45,1303.02  5,766,812  48,3243.32 
Noninterest-bearing deposits 1,419,642     1,418,997    
Operating lease liabilities 27,352     29,702    
Accrued expenses and other liabilities 50,058     52,045    
Total liabilities 7,434,927     7,267,556    
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,357,517  2.43  7,185,809  2.67 
         
Shareholders' Equity:        
Common stock 157,784     157,784    
Additional paid-in capital 303,039     302,063    
Retained earnings and other equity 498,747     463,607    
Total shareholders' equity 959,570     923,454    
Total liabilities and shareholders' equity$8,394,497    $8,191,010    
Net interest income $68,273   $61,736  
         
Net interest spread  2.66   2.34 
Effect of net interest-free funding sources  0.76   0.83 
Net interest margin  3.42%  3.17%
Ratio of average interest-earning assets to average interest-bearing liabilities 133.42%    133.80%   
         
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 $820 thousand and $687 thousand for the three months ended September 30, 2026 and 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 September 30, 2026 and 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 Nine Months Ended September 30,  
Tax Equivalent Basis  2026    2025  
 AverageIncome/Average AverageIncome/Average 
(Dollars in thousands)BalanceExpenseRate BalanceExpenseRate 
Assets:        
Interest-earning deposits with other banks$251,019 $7,0133.74%$216,788 $7,0944.38%
Obligations of state and political subdivisions* -  --  290  41.84 
Other debt and equity securities 499,486  12,5643.36  496,178  11,9043.21 
Federal Home Loan Bank, Federal Reserve Bank and other stock 34,973  1,9997.64  37,142  2,0947.54 
Total interest-earning deposits, investments and other interest-earning assets 785,478  21,5763.67  750,398  21,0963.76 
         
Commercial, financial, and agricultural loans 986,595  47,9846.50  981,956  51,9297.07 
Real estate—commercial and construction loans 3,897,778  173,3205.95  3,700,553  162,3105.86 
Real estate—residential loans 1,705,363  65,6595.15  1,725,423  65,1605.05 
Loans to individuals 12,427  7988.59  16,148  1,0388.59 
Tax-exempt loans and leases 225,906  9,6985.74  229,411  8,8605.16 
Lease financings 176,749  9,8187.43  177,692  9,5917.22 
Gross loans and leases 7,004,818  307,2775.86  6,831,183  298,8885.85 
Total interest-earning assets 7,790,296  328,8535.64  7,581,581  319,9845.64 
Cash and due from banks 60,339     57,674    
Allowance for credit losses, loans and leases (89,628)    (88,052)   
Premises and equipment, net 44,888     47,044    
Operating lease right-of-use assets 24,948     27,200    
Other assets 429,076     425,831    
Total assets$8,259,919    $8,051,278    
         
Liabilities:        
Interest-bearing checking deposits$1,325,676 $24,7902.50%$1,244,497 $23,5602.53%
Money market savings 2,049,414  51,2783.35  1,836,983  53,7453.91 
Regular savings 746,204  3,7180.67  709,493  2,5800.49 
Time deposits 1,412,174  40,2293.81  1,500,137  47,4674.23 
Total time and interest-bearing deposits 5,533,468  120,0152.90  5,291,110  127,3523.22 
         
Short-term borrowings 23,130  340.20  7,614  160.28 
Long-term debt 152,473  4,7064.13  205,952  6,6344.31 
Subordinated notes 98,959  5,2427.08  145,926  7,1226.53 
Total borrowings 274,562  9,9824.86  359,492  13,7725.12 
Total interest-bearing liabilities 5,808,030  129,9972.99  5,650,602  141,1243.34 
Noninterest-bearing deposits 1,420,237     1,405,339    
Operating lease liabilities 27,577     30,056    
Accrued expenses and other liabilities 50,390     55,583    
Total liabilities 7,306,234     7,141,580    
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds") 7,228,267  2.40  7,055,941  2.67 
         
Shareholders' Equity:        
Common stock 157,784     157,784    
Additional paid-in capital 302,690     301,908    
Retained earnings and other equity 493,211     450,006    
Total shareholders' equity 953,685     909,698    
Total liabilities and shareholders' equity$8,259,919    $8,051,278    
Net interest income $198,856   $178,860  
         
Net interest spread  2.65   2.30 
Effect of net interest-free funding sources  0.76   0.85 
Net interest margin  3.41%  3.15%
Ratio of average interest-earning assets to average interest-bearing liabilities 134.13%    134.17%   
         
* 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 $2.4 million and $1.9 million for the nine months ended September 30, 2026 and 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 nine months ended September 30, 2026 and 2025 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2026
     
(Dollars in thousands)    
Industry Description Total Outstanding Balance  % of Commercial Loan Portfolio 
Animal Production 455,329 8.1%
CRE - Retail 423,233 7.5 
CRE - Multi-family 418,772 7.4 
Hotels & Motels (Accommodation) 288,748 5.1 
CRE - 1-4 Family Residential Investment 265,299 4.7 
CRE - Office 251,633 4.5 
Specialty Trade Contractors 246,422 4.4 
CRE - Industrial / Warehouse 219,729 3.9 
Nursing and Residential Care Facilities 178,694 3.2 
Homebuilding (tract developers, remodelers) 160,851 2.8 
Crop Production 148,545 2.6 
Merchant Wholesalers, Durable Goods 129,070 2.3 
CRE - Mixed-Use - Commercial 124,216 2.2 
Repair and Maintenance 123,773 2.2 
Motor Vehicle and Parts Dealers 116,703 2.1 
CRE - Mixed-Use - Residential 110,303 2.0 
Administrative and Support Services 105,154 1.9 
Nondepository Credit Intermediation and Related Activities (except 5221) 102,468 1.8 
Wood Product Manufacturing 101,088 1.8 
Food Services and Drinking Places 95,014 1.7 
Merchant Wholesalers, Nondurable Goods 90,023 1.6 
Education 87,618 1.6 
Amusement, Gambling, and Recreation Industries 86,918 1.5 
Professional, Scientific, and Technical Services 80,968 1.4 
Fabricated Metal Product Manufacturing 77,431 1.4 
Food Manufacturing 71,518 1.3 
Religious Organizations, Advocacy Groups 64,848 1.1 
Personal and Laundry Services 64,679 1.1 
Machinery Manufacturing 62,697 1.1 
Nonresidential Building Contractors 55,532 1.0 
Industries with >$50 million in outstandings$4,807,276 85.1%
Industries with <$50 million in outstandings$842,887 14.9%
Total Commercial Loans$5,650,163 100.0%
     
     
Consumer Loans and Lease Financings Total Outstanding Balance    
Real Estate-Residential Secured for Personal Purpose 901,823   
Real Estate-Home Equity Secured for Personal Purpose 208,666   
Loans to Individuals 12,239   
Lease Financings 241,546   
Total - Consumer Loans and Lease Financings$1,364,274   
     
Total$7,014,437   


Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2026
 
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)09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25 
Restructuring charges (a)  $-  $-  $427  $-  $-  $427  $68,012  
Tax effect of restructuring charges   -   -   (90)  -   -   (90)  290  
Restructuring charges, net of tax  $-  $-  $337  $-  $-  $337  $68,302  
                  
Net income$21,568  $22,953  $27,092  $22,745  $25,639  $71,613  $68,012  
Amortization of intangibles, net of tax 55   73   73   81   84   201   290  
Net income before amortization of intangibles$21,623  $23,026  $27,165  $22,826  $25,723  $71,814  $68,302  
                  
Shareholders' equity$949,158  $954,253  $951,950  $943,318  $933,219  $949,158  $933,219  
Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510) 
Other intangibles (b)  (1,792)  (1,923)  (1,960)  (1,919)  (1,966)  (1,792)  (1,966) 
Tangible common equity$771,856  $776,820  $774,480  $765,889  $755,743  $771,856  $755,743  
                  
Total assets$8,606,406  $8,202,992  $8,141,582  $8,436,897  $8,573,616  $8,606,406  $8,573,616  
Goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510) 
Other intangibles (b)  (1,792)  (1,923)  (1,960)  (1,919)  (1,966)  (1,792)  (1,966) 
Tangible assets$8,429,104  $8,025,559  $7,964,112  $8,259,468  $8,396,140  $8,429,104  $8,396,140  
                  
Average shareholders' equity$959,570  $951,863  $949,509  $936,417  $923,454  $953,685  $909,698  
Average goodwill (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510)  (175,510) 
Average other intangibles (b)  (1,884)  (1,938)  (1,922)  (1,935)  (1,983)  (1,914)  (2,114) 
Average tangible common equity$782,176  $774,415  $772,077  $758,972  $745,961  $776,261  $732,074  
                  
(a) Associated with planned closure of two underutilized facilities; a financial center and a limited purpose banking office
(b) Amount does not include mortgage servicing rights


(UVSP - ER)

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