There were 102 press releases posted in the last 24 hours and 403,442 in the last 365 days.

Univest Financial Corporation Reports First Quarter Results

SOUDERTON, Pa., April 24, 2019 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, today announced net income for the quarter ended March 31, 2019 of $16.1 million, or $0.55 diluted earnings per share, compared to net income of $12.9 million, or $0.44 diluted earnings per share, for the quarter ended March 31, 2018. 

The first quarter of 2018 included restructuring costs related to financial center closures of $451 thousand, net of tax, or $0.02 of diluted earnings per share. There were no restructuring costs during the quarter ended March 31, 2019. Excluding these restructuring costs, earnings per share increased 19.6% for the first quarter of 2019 compared to the first quarter of 2018.

Loans
Gross loans and leases increased $61.3 million, or 6.1% (annualized), from December 31, 2018 and $378.0 million, or 10.2%, from March 31, 2018. The growth in loans from December 31, 2018 and March 31, 2018 was primarily in commercial real estate and residential real estate loans.

Deposits
Total deposits increased $117.2 million, or 12.1% (annualized), from December 31, 2018 and increased $505.9 million, or 14.5%, from March 31, 2018. The growth in deposits from December 31, 2018 was primarily due to increases in commercial and consumer deposits. The growth in deposits from March 31, 2018 was primarily due to increases in commercial, public funds and consumer time deposits.

Net Interest Income and Margin
Net interest income of $41.5 million for the first quarter of 2019 increased $4.3 million, or 11.4%, from the first quarter of 2018. The increase in net interest income for the first quarter of 2019 compared to the first quarter of 2018 was primarily due to the growth in loans during the last year as well as modest net interest margin expansion.

Net interest margin, on a tax-equivalent basis, was 3.75% for the first quarter of 2019, compared to 3.72% for both the fourth quarter of 2018 and the first quarter of 2018. The favorable impact of purchase accounting accretion was one basis point for the quarter ended March 31, 2019 compared to one basis point for the quarter ended December 31, 2018 and two basis points for the quarter ended March 31, 2018. Excluding the impact of purchase accounting accretion, the net interest margin, on a tax-equivalent basis, was 3.74% for the quarter ended March 31, 2019 compared to 3.71% for the quarter ended December 31, 2018 and 3.70% for the quarter ended March 31, 2018.

Noninterest Income
Noninterest income for the quarter ended March 31, 2019 was $16.3 million, an increase of $715 thousand, or 4.6%, from the first quarter of 2018. Investment advisory commission and fee income increased $106 thousand, or 2.9%, for the quarter ended March 31, 2019, primarily due to new customer relationships, which was partially offset by market declines in the fourth quarter of 2018. Insurance commission and fee income increased $256 thousand, or 5.2%, for the quarter ended March 31, 2019, primarily due to an increase in premiums for group life and health and commercial lines and an increase in contingent commission income of $111 thousand, which was $1.5 million for the quarter ended March 31, 2019 compared to $1.4 million for the quarter ended March 31, 2018. Contingent commission income is largely recognized in the first quarter of the year. Service charges on deposit accounts increased $108 thousand, or 8.1%, for the quarter ended March 31, 2019, primarily due to increased fee income on cash management accounts. Other service fee income increased $98 thousand, or 4.5%, for the quarter ended March 31, 2019, primarily due to increases in debit card interchange income, wire transfer fees and human resource consulting services within the insurance line of business. BOLI income increased $283 thousand, or 42.3%, for the quarter ended March 31, 2019, primarily due to an increase in value of our non-qualified annuity portfolio of $249 thousand in the first quarter of 2019 compared to a decrease of $29 thousand in the first quarter of 2018. The value of the non-qualified annuity portfolio declined $287 thousand in the fourth quarter of 2018. During the first quarter of 2019, in order to reduce future volatility, the Corporation transferred the funds invested within the non-qualified annuity portfolio to a stable fund investment strategy. Other income increased $215 thousand, or 173.4%, for the quarter ended March 31, 2019, primarily due to fees on risk participation agreements of $264 thousand related to increased customer activity compared to fees of $4 thousand in the same period of the prior year.

These increases were partially offset by a decrease in net gain on mortgage banking activities of $233 thousand, or 32.5%, for the quarter ended March 31, 2019, primarily due to the Bank retaining, on balance-sheet, a higher percentage of its mortgage originations, as well as a contraction in margins to remain price competitive. Such on balance-sheet loans are predominantly hybrid adjustable rate mortgages. Trust fee income decreased $109 thousand, or 5.5%, for the quarter ended March 31, 2019 compared to March 31, 2018, primarily due to a decrease in activity based trust estate fees and assets under management.

Noninterest Expense
Noninterest expense for the quarter ended March 31, 2019 was $35.6 million, an increase of $432 thousand, or 1.2%, compared to the first quarter of 2018. Salaries, benefits and commissions increased $917 thousand, or 4.4%, primarily attributable to additional staff hired to support revenue generation across all business lines, expansion of our commercial lending group in Lancaster County and annual merit increases. During the quarter ended March 31, 2019, Univest hired a team of eight commercial lenders and support staff which will focus on increasing Univest’s presence in Western Lancaster and York Counties.  Data processing expense increased $282 thousand, or 12.6%, for the quarter ended March 31, 2019, primarily due to continued investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Other expense increased $264 thousand, or 5.1%, for the quarter ended March 31, 2019, primarily due to increases in interchange expense and corporate development expense.

These increases were partially offset by a decrease in net occupancy and equipment expense totaling $179 thousand, or 4.7%, primarily due to the closure of three financial service locations during April 2018. Intangibles expense decreased $186 thousand, or 30.4%, due to run-off of the intangible assets. In addition, restructuring costs related to financial center closures and staffing rationalization were $571 thousand during the first quarter of 2018. There were no restructuring costs during the first quarter of 2019.

Asset Quality and Provision for Loan and Lease Losses
Nonperforming assets were $27.4 million at March 31, 2019, compared to $28.1 million at December 31, 2018 and $32.9 million at March 31, 2018.

Net loan and lease charge-offs were $447 thousand during the first quarter of 2019. The provision for loan and lease losses was $2.7 million for the first quarter of 2019 compared to $2.1 million for the first quarter of 2018. The provision includes the impact of downgrading one $14.6 million shared national credit loan from pass to substandard. Incremental provision and general reserve recorded during the quarter was $1.5 million for this loan.

The allowance for loan and lease losses as a percentage of loans and leases held for investment, excluding covered loans acquired in the Fox Chase and Valley Green Bank acquisitions, which were recorded at fair value as of the acquisition date, was 0.85% at March 31, 2019, compared to 0.81% at December 31, 2018 and 0.73% at March 31, 2018.

Tax Provision  
The effective income tax rate was 17.9% for the quarter March 31, 2019 compared to an effective income tax rate of 18.0% for the quarter ended March 31, 2018. The Corporation's effective income tax rate for the quarter ended March 31, 2019 was favorably impacted by discrete tax benefits. Excluding these items, the effective tax rate was 18.2% for the quarter ended March 31, 2019.

Dividend
On February 27, 2019, Univest declared a quarterly cash dividend of $0.20 per share, payable on April 1, 2019. This represented a 3.20% annualized yield based on the closing price of Univest’s stock on the date the dividend was paid.

Conference Call
Univest will host a conference call to discuss first quarter 2019 results on Thursday, April 25, 2019 at 9:00 a.m. EDT. Participants may preregister at http://dpregister.com/10130260. The general public can access the call by dialing 1-888-338-6515. A replay of the conference call will be available through May 25, 2019 by dialing 1-877-344-7529; using Conference ID: 10130260.

About Univest Financial Corporation 
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $5.0 billion in assets and $3.6 billion in assets under management and supervision through its Wealth Management lines of business at March 31, 2019. 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 in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices in southeastern Pennsylvania extending to the Lehigh Valley and Lancaster, as well as in New Jersey and Maryland and online at www.univest.net.

This press release of Univest and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the financial services industry and, specifically, the financial operations, markets and products of Univest. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Univest’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) competitive pressures among financial institutions; (2) changes in the interest rate environment; (3) changes in prepayment speeds, loan sale volumes, charge-offs and loan loss provisions; (4) general economic conditions; (5) legislative or regulatory changes that may adversely affect the businesses in which Univest is engaged; (6) technological issues that may adversely affect Univest financial operations or customers; (7) changes in the securities markets or (8) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2019
(Dollars in thousands)                    
                     
Balance Sheet (Period End)   03/31/19   12/31/18   09/30/18   06/30/18   03/31/18
Assets   $ 5,035,527     $ 4,984,347     $ 4,801,998     $ 4,749,181     $ 4,613,959  
Investment securities     466,883       473,306       447,339       446,933       462,252  
Loans held for sale     921       1,754       106       1,778       687  
Loans and leases held for investment, gross     4,067,879       4,006,574       3,866,169       3,818,398       3,689,888  
Allowance for loan and lease losses     31,602       29,364       27,371       25,652       23,410  
Loans and leases held for investment, net     4,036,277       3,977,210       3,838,798       3,792,746       3,666,478  
Total deposits     4,003,153       3,885,933       3,820,048       3,620,786       3,497,293  
Noninterest-bearing deposits     1,103,674       1,055,919       1,047,081       1,055,479       1,002,021  
NOW, money market and savings     2,260,795       2,159,937       2,101,484       1,970,912       1,974,769  
Time deposits     638,684       670,077       671,483       594,395       520,503  
Borrowings     313,083       429,672       326,709       481,862       466,510  
Shareholders' equity     637,606       624,133       614,242       605,294       606,719  
                     
                     
Balance Sheet (Average)   For the three months ended,
    03/31/19   12/31/18   09/30/18   06/30/18   03/31/18
Assets   $ 5,004,253     $ 4,890,519     $ 4,817,321     $ 4,682,827     $ 4,555,977  
Investment securities     470,196       464,684       453,422       450,375       457,926  
Loans and leases, gross     4,017,362       3,894,298       3,832,295       3,743,195       3,634,510  
Deposits     3,931,199       3,938,378       3,792,627       3,563,956       3,484,044  
Shareholders' equity     631,574       619,204       611,803       611,667       605,973  
                     
                     
Asset Quality Data (Period End)                    
    03/31/19   12/31/18   09/30/18   06/30/18   03/31/18
Nonaccrual loans and leases, including nonaccrual troubled debt restructured                    
loans and leases   $ 25,952     $ 26,208     $ 27,559     $ 30,148     $ 27,694  
Accruing loans and leases 90 days or more past due     636       192       1,224       150       2,295  
Accruing troubled debt restructured loans and leases     270       542       766       790       1,032  
Total nonperforming loans and leases     26,858       26,942       29,549       31,088       31,021  
Other real estate owned     540       1,187       1,433       1,742       1,843  
Total nonperforming assets     27,398       28,129       30,982       32,830       32,864  
Nonaccrual loans and leases / Loans and leases held for investment     0.64 %     0.65 %     0.71 %     0.79 %     0.75 %
Nonperforming loans and leases / Loans and leases held for investment     0.66 %     0.67 %     0.76 %     0.81 %     0.84 %
Nonperforming assets / Total assets     0.54 %     0.56 %     0.65 %     0.69 %     0.71 %
                     
Allowance for loan and lease losses     31,602       29,364       27,371       25,652       23,410  
Allowance for loan and lease losses / Loans and leases held for investment     0.78 %     0.73 %     0.71 %     0.67 %     0.63 %
Allowance for loan and lease losses / Loans and leases held for investment     0.85 %     0.81 %     0.79 %     0.76 %     0.73 %
(excluding acquired loans at period-end)                    
Allowance for loan and lease losses / Nonaccrual loans and leases held for investment     121.77 %     112.04 %     99.32 %     85.09 %     84.53 %
Allowance for loan and lease losses / Nonperforming loans and leases held for investment   117.66 %     108.99 %     92.63 %     82.51 %     75.47 %
Acquired credit impaired loans   $ 693     $ 695     $ 900     $ 998     $ 1,525  
                     
    For the three months ended,
    03/31/19   12/31/18   09/30/18   06/30/18   03/31/18
Net loan and lease charge-offs (recoveries)   $ 447     $ (1,890 )   $ 1,026     $ 13,167     $ 198  
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases     0.05 %     (0.19 %)     0.11 %     1.41 %     0.02 %


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2019
(Dollars in thousands, except per share data)                    
    For the three months ended,
For the period:   03/31/19   12/31/18   09/30/18   06/30/18   03/31/18
Interest income   $ 52,364   $ 51,239   $ 49,255   $ 46,460     $ 43,534
Interest expense     10,841     9,862     8,832     7,470       6,262
Net interest income     41,523     41,377     40,423     38,990       37,272
Provision for loan and lease losses     2,685     103     2,745     15,409       2,053
Net interest income after provision     38,838     41,274     37,678     23,581       35,219
Noninterest income:                    
Trust fee income     1,887     1,882     1,960     2,044       1,996
Service charges on deposit accounts     1,435     1,516     1,454     1,335       1,327
Investment advisory commission and fee income     3,789     3,852     3,785     3,778       3,683
Insurance commission and fee income     5,144     3,415     3,643     3,712       4,888
Other service fee income     2,267     2,448     2,284     2,431       2,169
Bank owned life insurance income     952     430     865     1,210       669
Net gain on sales of investment securities     1     -     -     -       10
Net gain on mortgage banking activities     483     713     754     942       716
Other income (loss)     339     160     116     (138 )     124
Total noninterest income     16,297     14,416     14,861     15,314       15,582
Noninterest expense:                    
Salaries, benefits and commissions     21,564     19,576     20,321     20,065       20,647
Net occupancy     2,611     2,455     2,515     2,533       2,757
Equipment     990     1,014     1,042     1,067       1,023
Data processing     2,514     2,352     2,339     2,091       2,232
Professional fees     1,264     1,335     1,370     1,331       1,355
Marketing and advertising     316     432     461     526       381
Deposit insurance premiums     452     449     544     452       391
Intangible expenses     426     481     479     594       612
Restructuring charges     -     -     -     -       571
Other expense     5,420     5,302     5,300     5,688       5,156
Total noninterest expense     35,557     33,396     34,371     34,347       35,125
Income before taxes     19,578     22,294     18,168     4,548       15,676
Income tax expense     3,499     3,922     3,204     191       2,826
Net income   $ 16,079   $ 18,372   $ 14,964   $ 4,357     $ 12,850
Net income per share:                    
Basic   $ 0.55   $ 0.63   $ 0.51   $ 0.15     $ 0.44
Diluted   $ 0.55   $ 0.63   $ 0.51   $ 0.15     $ 0.44
Dividends declared per share   $ 0.20   $ 0.20   $ 0.20   $ 0.20     $ 0.20
Weighted average shares outstanding     29,277,339     29,319,664     29,402,405     29,403,946       29,354,887
Period end shares outstanding     29,272,502     29,270,852     29,407,076     29,406,450       29,391,934
                     


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
March 31, 2019
                           
                           
                           
          For the three months ended,
Profitability Ratios (annualized)     03/31/19   12/31/18   09/30/18   06/30/18   03/31/18
                           
Return on average assets       1.30%       1.49%       1.23%       0.37%       1.14%  
Return on average assets, excluding restructuring charges (1), (2)   1.30%       1.49%       1.23%       0.37%       1.18%  
Return on average shareholders' equity     10.32%       11.77%       9.70%       2.86%       8.60%  
Return on average shareholders' equity, excluding   10.32%       11.77%       9.70%       2.86%       8.90%  
restructuring charges (1), (2)                      
Return on average tangible common equity, excluding   14.36%       16.52%       13.70%       4.04%       12.65%  
restructuring charges (1), (2)                      
Net interest margin (FTE)       3.75%       3.72%       3.71%       3.73%       3.72%  
Efficiency ratio (3)         60.5%       59.0%       61.2%       62.1%       65.4%  
Efficiency ratio, excluding restructuring charges (1), (3), (4)   60.5%       59.0%       61.2%       62.1%       64.3%  
                           
Capitalization Ratios                        
                           
Dividends declared to net income       36.4%       31.9%       39.3%       135.0%       45.7%  
Shareholders' equity to assets (Period End)     12.66%       12.52%       12.79%       12.75%       13.15%  
Tangible common equity to tangible assets (1)     9.47%       9.29%       9.43%       9.33%       9.64%  
Common equity book value per share   $ 21.78     $ 21.32     $ 20.89     $ 20.58     $ 20.64  
Tangible common equity book value per share (1) $ 15.72     $ 15.25     $ 14.83     $ 14.51     $ 14.54  
                           
Regulatory Capital Ratios  (Period End)                    
Tier 1 leverage ratio         10.10%       10.13%       10.07%       10.19%       10.47%  
Common equity tier 1 risk-based capital ratio     10.93%       10.88%       10.99%       10.89%       11.16%  
Tier 1 risk-based capital ratio       10.93%       10.88%       10.99%       10.89%       11.16%  
Total risk-based capital ratio       13.77%       13.70%       13.87%       13.76%       14.04%  
                           
                           
(1 ) This consolidated selected financial data schedule contains supplemental financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). The management of Univest Financial Corporation uses these 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 below table for additional information.
                           
  (a) Restructuring charges $ -     $ -     $ -     $ -     $ 571  
  Tax effect on restructuring charges   -       -       -       -       (120 )
  (b) Restructuring charges, net of tax $ -     $ -     $ -     $ -     $ 451  
                           
  (c) Shareholders' equity $ 637,606     $ 624,133     $ 614,242     $ 605,294     $ 606,719  
  Goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )
  Other intangibles (i)     (4,805 )     (5,222 )     (5,690 )     (6,159 )     (6,741 )
  (d) Tangible common equity $ 460,242     $ 446,352     $ 435,993     $ 426,576     $ 427,419  
                           
  (e) Total assets $ 5,035,527     $ 4,984,347     $ 4,801,998     $ 4,749,181     $ 4,613,959  
  Goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )
  Other intangibles (i)     (4,805 )     (5,222 )     (5,690 )     (6,159 )     (6,741 )
  (f) Tangible assets $ 4,858,163     $ 4,806,566     $ 4,623,749     $ 4,570,463     $ 4,434,659  
                           
  (g) Average shareholders' equity $ 631,574     $ 619,204     $ 611,803     $ 611,667     $ 605,973  
  Average goodwill   (172,559 )     (172,559 )     (172,559 )     (172,559 )     (172,559 )
  Average other intangibles (i)     (5,031 )     (5,473 )     (5,947 )     (6,468 )     (7,064 )
  (h) Average tangible common equity $ 453,984     $ 441,172     $ 433,297     $ 432,640     $ 426,350  
                           
  (i) Amount does not include servicing rights                  
                           
(2 ) Net income in this ratio excludes restructuring charges, net of tax. See (1)(b) above.            
(3 ) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.    
(4 ) Noninterest expense in this ratio excludes restructuring charges. See (1)(a) above.            
                           


Univest Financial Corporation  
Average Balances and Interest Rates (Unaudited)  
    For the Three Months Ended,      
Tax Equivalent Basis March 31, 2019   December 31, 2018  
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 42,566   $ 269 2.56 % $ 89,784   $ 480 2.12 %
U.S. government obligations   20,039     82 1.66     22,307     89 1.58  
Obligations of state and political subdivisions   64,167     546 3.45     65,134     553 3.37  
Other debt and equity securities   385,990     2,631 2.76     377,243     2,494 2.62  
Federal funds sold and other earning assets   32,360     586 7.34     30,175     468 6.15  
Total interest-earning deposits, investments, federal funds sold and other earning assets   545,122     4,114 3.06     584,643     4,084 2.77  
                 
Commercial, financial, and agricultural loans   811,071     10,758 5.38     782,666     10,322 5.23  
Real estate—commercial and construction loans   1,822,276     21,559 4.80     1,766,543     21,309 4.79  
Real estate—residential loans   938,299     11,412 4.93     910,620     11,102 4.84  
Loans to individuals   32,524     518 6.46     31,902     511 6.35  
Municipal loans and leases   332,299     3,221 3.93     323,904     3,160 3.87  
Lease financings   80,893     1,435 7.19     78,663     1,407 7.10  
Gross loans and leases   4,017,362     48,903 4.94     3,894,298     47,811 4.87  
Total interest-earning assets   4,562,484     53,017 4.71     4,478,941     51,895 4.60  
Cash and due from banks   44,714           47,429        
Reserve for loan and lease losses   (30,111 )         (28,499 )      
Premises and equipment, net   59,179           60,448        
Operating lease right-of-use assets   37,129           -        
Other assets   330,858           332,200        
Total assets $ 5,004,253         $ 4,890,519        
                 
Liabilities:                
Interest-bearing checking deposits $ 478,927   $ 714 0.60 % $ 491,749   $ 708 0.57 %
Money market savings   918,487     3,748 1.65     889,165     3,372 1.50  
Regular savings   789,033     814 0.42     768,825     637 0.33  
Time deposits   655,303     2,927 1.81     676,256     2,958 1.74  
Total time and interest-bearing deposits   2,841,750     8,203 1.17     2,825,995     7,675 1.08  
                 
Short-term borrowings   117,664     638 2.20     56,215     233 1.64  
Long-term debt   145,299     739 2.06     140,597     694 1.96  
Subordinated notes   94,603     1,261 5.41     94,542     1,260 5.29  
Total borrowings   357,566     2,638 2.99     291,354     2,187 2.98  
Total interest-bearing liabilities   3,199,316     10,841 1.37     3,117,349     9,862 1.26  
Noninterest-bearing deposits   1,089,449           1,112,383        
Operating lease liabilities   40,090           -        
Accrued expenses and other liabilities   43,824           41,583        
Total liabilities   4,372,679           4,271,315        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   292,746           292,342        
Retained earnings and other equity   181,044           169,078        
Total shareholders' equity   631,574           619,204        
Total liabilities and shareholders' equity $ 5,004,253         $ 4,890,519        
Net interest income   $ 42,176       $ 42,033    
                 
Net interest spread     3.34       3.34  
Effect of net interest-free funding sources     0.41       0.38  
Net interest margin     3.75 %     3.72 %
Ratio of average interest-earning assets to average interest-bearing liabilities   142.61 %         143.68 %      
                 
Note 1:  In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures  
determined by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered  
a substitute for GAAP basis financial information and measures. Management believes the presentation of the non-GAAP financial  
information and measures provide useful information that is essential to a proper understanding of the financial results of the Corporation.
                 
Note 2:  For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting  adjustments and  
unearned discount. 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 March 31, 2019 and December 31, 2018 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 March 31,      
Tax Equivalent Basis     2019         2018    
  Average Income/ Average   Average Income/ Average  
(Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
Assets:                
Interest-earning deposits with other banks $ 42,566   $ 269 2.56 % $ 19,184   $ 76 1.61 %
U.S. government obligations   20,039     82 1.66     23,921     94 1.59  
Obligations of state and political subdivisions   64,167     546 3.45     74,554     593 3.23  
Other debt and equity securities   385,990     2,631 2.76     359,451     2,095 2.36  
Federal funds sold and other earning assets   32,360     586 7.34     29,057     504 7.03  
Total interest-earning deposits, investments, federal funds sold and other earning assets   545,122     4,114 3.06     506,167     3,362 2.69  
                 
Commercial, financial, and agricultural loans   811,071     10,758 5.38     782,200     8,900 4.61  
Real estate—commercial and construction loans   1,822,276     21,559 4.80     1,600,394     17,618 4.46  
Real estate—residential loans   938,299     11,412 4.93     837,495     9,675 4.69  
Loans to individuals   32,524     518 6.46     27,960     413 5.99  
Municipal loans and leases   332,299     3,221 3.93     311,752     2,892 3.76  
Lease financings   80,893     1,435 7.19     74,709     1,344 7.30  
Gross loans and leases   4,017,362     48,903 4.94     3,634,510     40,842 4.56  
Total interest-earning assets   4,562,484     53,017 4.71     4,140,677     44,204 4.33  
Cash and due from banks   44,714           42,506        
Reserve for loan and lease losses   (30,111 )         (22,022 )      
Premises and equipment, net   59,179           61,738        
Operating lease right-of-use assets   37,129           -        
Other assets   330,858           333,078        
Total assets $ 5,004,253         $ 4,555,977        
                 
Liabilities:                
Interest-bearing checking deposits $ 478,927   $ 714 0.60 % $ 425,027   $ 292 0.28 %
Money market savings   918,487     3,748 1.65     658,367     1,343 0.83  
Regular savings   789,033     814 0.42     834,375     557 0.27  
Time deposits   655,303     2,927 1.81     541,478     1,499 1.12  
Total time and interest-bearing deposits   2,841,750     8,203 1.17     2,459,247     3,691 0.61  
                 
Short-term borrowings   117,664     638 2.20     175,824     645 1.49  
Long-term debt   145,299     739 2.06     155,765     665 1.73  
Subordinated notes   94,603     1,261 5.41     94,359     1,261 5.42  
Total borrowings   357,566     2,638 2.99     425,948     2,571 2.45  
Total interest-bearing liabilities   3,199,316     10,841 1.37     2,885,195     6,262 0.88  
Noninterest-bearing deposits   1,089,449           1,024,797        
Operating lease liabilities   40,090           -        
Accrued expenses and other liabilities   43,824           40,012        
Total liabilities   4,372,679           3,950,004        
                 
Shareholders' Equity:                
Common stock   157,784           157,784        
Additional paid-in capital   292,746           290,209        
Retained earnings and other equity   181,044           157,980        
Total shareholders' equity   631,574           605,973        
Total liabilities and shareholders' equity $ 5,004,253         $ 4,555,977        
Net interest income   $ 42,176       $ 37,942    
                 
Net interest spread     3.34       3.45  
Effect of net interest-free funding sources     0.41       0.27  
Net interest margin     3.75 %     3.72 %
Ratio of average interest-earning assets to average interest-bearing liabilities   142.61 %         143.51 %      
                 
Note 1:  In the above schedule, the interest income and net interest income analysis contains tax-equivalent financial information and measures  
determined by methods other than in accordance with U.S. GAAP. This financial information and measures should not be considered  
a substitute for GAAP basis financial information and measures. Management believes the presentation of the non-GAAP financial  
information and measures provide useful information that is essential to a proper understanding of the financial results of the Corporation.
                 
Note 2:  For rate calculation purposes, average loan and lease categories include deferred fees and costs, purchase accounting  adjustments and
unearned discount. 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 March 31, 2019 and 2018 have been calculated
using the Corporation’s federal applicable rate of 21.0%.              
CONTACT:  
Roger Deacon  
UNIVEST FINANCIAL CORPORATION 
Chief Financial Officer 
215-721-2455, DeaconR@univest.net

Univest Corporation