GlobeNewswire Inc | Apr 28, 2021 04:15PM EDT

April 28, 2021

SOUDERTON, Pa., April 28, 2021 (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 March31, 2021 was $32.6million, or $1.11 diluted earnings per share, compared to net income of $838 thousand, or $0.03 diluted earnings per share, for the quarter ended March31, 2020.

Pre-tax pre-provision income1 for the quarter ended March31, 2021 was $29.1 million, an increase of $7.0 million, or 31.9%, from the first quarter of 2020.

COVID-19 As the re-opening of our local economy continues and progress is made in getting the COVID-19 vaccines distributed and administered, access to all Univest financial center lobbies resumed on April 5, 2021.

Throughout the COVID-19 pandemic, we have taken various actions to support our customers and the communities we collectively serve, including modifying outstanding loans and leases. Loans and leases that were modified via principal and/or interest deferrals were done so in accordance with Section 4013 of the CARES Act, the Consolidated Appropriations Act, 2021 and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus and have not been categorized as troubled debt restructurings. These loans and leases had a combined principal balance of approximately $73.0 million as of March 31, 2021, which represents approximately 1.5% of the loan portfolio, excluding Paycheck Protection Program (PPP) loans1. For more information on these loans, including a breakdown of such loans by type, please see the "Loan Portfolio Overview" table within this document.

Paycheck Protection Program On December 27, 2020, the Consolidated Appropriations Act, 2021, was signed into law, which provides new COVID-19 relief funds, additional funding under the PPP and the establishment of PPP Second Draw Loans. The Small Business Administration (SBA) announced the taking of certain steps under the PPP to further promote equitable relief for smaller businesses. Under this program, we successfully originated approximately 1,200 PPP loans and secured funding of approximately $168.6 million for our customers as of April 15, 2021.

As of March 31, 2021, $528.5 million in PPP loan originations remain outstanding. During the quarter, we recorded income of $4.5 million within net interest income related to these loans, of which $2.3 million was the result of forgiveness and pay downs of PPP loans totaling $119.7 million. As of March31, 2021, we have $9.5 million of net deferred fees on our balance sheet, which represents approximately 55% of the initial deferred fee amount.

LoansGross loans and leases, excluding PPP loans1, increased $63.5 million, or 5.3% (annualized), from December31, 2020 primarily due to increases in commercial real estate loans, despite a $58.1 million decrease in commercial line utilization. Gross loans and leases, excluding PPP loans1, increased $437.7 million, or 9.8%, from March 31, 2020 primarily due to increases in commercial real estate loans. As of March 31, 2021, commercial line utilization was 30.2% compared to 34.0% at December 31, 2020 and 38.3% at March 31, 2020. DepositsTotal deposits increased $68.9 million, or 5.3% (annualized), from December31, 2020 primarily due to an increase in consumer and commercial deposits offset by a decrease in public funds and brokered deposits. Total deposits increased $904.3 million, or 20.5%, from March31, 2020 primarily due to increases in commercial, consumer and public funds deposits.

Net Interest Income and MarginNet interest income of $45.4 million for the first quarter of 2021 increased $2.9 million, or 6.9%, from the first quarter of 2020. The increase in net interest income for the first quarter of 2021 compared to the first quarter of 2020 was primarily due to $4.5 million in PPP income, a $3.5 million decrease in the cost of interest-bearing liabilities and growth in loans partially offset by a decrease in loan and investment yields.

Net interest margin, on a tax-equivalent basis, was 3.12% for the first quarter of 2021, compared to 3.02% for the fourth quarter of 2020 and 3.48% for the first quarter of 2020. Excess liquidity reduced net interest margin by approximately eleven basis points for the quarter ended March31, 2021 compared to thirteen basis points for the quarter ended December31, 2020 and six basis points for the quarter ended March31, 2020. This excess liquidity was primarily driven by strong deposit balance growth during the last twelve months, which was partially attributable to the various stimulus initiatives associated with the COVID-19 pandemic. PPP loans had a favorable impact on net interest margin of four basis points for the quarter ended March31, 2021 compared to an unfavorable impact of seven basis points for the quarter ended December 31, 2020 and had no impact for the quarter ended March31, 2020. Excluding the impacts of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.19% for the quarter ended March31, 2021 compared to 3.22% for the quarter ended December 31, 2020 and 3.54% for the quarter ended March31, 2020.

Noninterest IncomeNoninterest income for the quarter ended March31, 2021 was $23.3 million, an increase of $4.9 million, or 26.5%, compared to the first quarter of 2020.

Net gain on mortgage banking activities increased $3.2 million, or 116.4%, for the quarter primarily due to an increase in volume and expansion of margins. Investment advisory commission and fee income increased $442 thousand, or 10.4%, due to increased assets under management driven by favorable market conditions and new customer relationships. Insurance commission and fee income increased $223 thousand, or 4.7%, for the quarter ended March 31, 2021, primarily due to an increase in premiums for group life and health and commercial lines and an increase in contingent commission income of $36 thousand, which was $1.1 million for each of the quarters ended March 31, 2021 and 2020. Contingent commission income is largely recognized in the first quarter of the year.

Other income increased $1.3 million, for the quarter primarily due to an increase of $967 thousand in fees on risk participation agreements for interest rate swaps driven by increased customer activity due to the current rate environment. Additionally, equity securities measured at fair value increased $384 thousand for the quarter.

Noninterest ExpenseNoninterest expense for the quarter ended March31, 2021 was $39.5 million, an increase of $763 thousand, or 2.0%, compared to the first quarter of 2020.

Salaries, benefits and commissions increased $944 thousand, or 4.0%, for the quarter primarily attributable to additional staff hired to support revenue generation across all business lines, annual merit increases and increased variable compensation due to strong pre-tax pre-provision income during the first quarter of 2021. The increases in salaries, benefits and commissions were offset by $582 thousand of incremental capitalized compensation related to the origination of PPP loans. Professional fees increased $431 thousand, or 32.7%, for the quarter primarily attributable to increased consultant fees in support of our Diversity, Equity and Inclusion and training initiatives. Data processing expenses increased $290 thousand, or 10.5%, for the quarter primarily due to continued investments in customer relationship management software, internal infrastructure improvements and outsourced data processing solutions. Deposit insurance premiums increased $132 thousand, or 26.2%, for the quarter primarily due to an increased assessment base due to asset growth.

Other expense decreased $947 thousand, or 15.6%, for the quarter primarily due to a $656 thousand charge related to the extinguishment of long-term debt that occurred in the first quarter of 2020 and a $295 thousand decrease in travel and entertainment expenses due to COVID-19 related restrictions.

Asset Quality and Provision for Credit LossesNonperforming assets were $38.2 million at March31, 2021, compared to $40.5 million at December31, 2020 and $39.0 million at March31, 2020.

Net loan and lease charge-offs were $288 thousand during the first quarter of 2021 compared to $489 thousand for the quarter ended March31, 2020. The reversal of provision for credit losses was $11.3 million for the first quarter of 2021, of which $12.9 million (after-tax benefit of $10.2 million), or $0.35 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporations CECL model partially offset by a reserve increase attributable to loan growth. The provision for credit losses was $21.8 million for the quarter ended March31, 2020, of which $20.3 million (after-tax charge of $16.1 million), or $0.55 diluted earnings per share, was attributable to adverse changes in economic-related assumptions.

The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.32% at March31, 2021, compared to 1.56% at December31, 2020, and 1.53% at March31, 2020. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment, excluding PPP loans1, was 1.46% at March31, 2021 compared to 1.72% at December31, 2020 and 1.53% at March 31, 2020.

Tax Provision The effective income tax rate was 19.3% for the quarter ended March31, 2021 compared to an effective income tax rate of (261.2%) for the quarter ended March31, 2020. The effective tax rate for the quarter ended March 31, 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases.

DividendOn April 28, 2021, Univest declared a quarterly cash dividend of $0.20 per share. The dividend will be paid on May 26, 2021 to shareholders of record as of May 12, 2021.

Conference CallUnivest will host a conference call to discuss first quarter 2021 results on Thursday, April 29, 2021 at 9:00 a.m. EST. Participants may preregister at https://dpregister.com/sreg/10154212/e624e999e4. The general public can access the call by dialing 1-888-338-6515.A replay of the conference call will be available through May 28, 2021 by dialing 1-877-344-7529; using Conference ID: 10154212.

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

About Univest Financial CorporationUnivest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $6.4 billion in assets and $4.2 billion in assets under management and supervision through its Wealth Management lines of business at March31, 2021. 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 of Univest and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business and capital management strategies, markets and products of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future results to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) changes in interest rates; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and credit 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.

Additionally, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and whether the continued reopening of businesses will result in a meaningful increase in economic activity. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: (1) demand for our products and services may decline; (2) if the economy is unable to remain open, and higher levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase; (3) collateral for loans, especially real estate, may decline in value; (4) our allowance for credit losses may have to be increased if borrowers experience financial difficulties; (5) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (6) a material decrease in net income or a net loss over several quarters could result in the elimination of or a decrease in the rate of our quarterly cash dividend; (7) our wealth management revenues may decline with continuing market turmoil; (8) litigation, regulatory enforcement risk and reputation risk regarding our participation in the Paycheck Protection Program and the risk that the Small Business Administration may not fund some or all PPP loan guarantees; (9) our cyber security risks are increased as the result of an increase in the number of employees working remotely; (10) Federal Deposit Insurance Corporation premiums may increase if the agency experiences additional resolution costs; and (11) further and sustained decline in our stock price or other triggering event could result in an impairment charge being recorded. Univest undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

(UVSP - ER)

Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)March 31, 2021(Dollars in thousands) Balance Sheet (Period 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20End)Assets $ 6,416,665 $ 6,336,496 $ 6,382,831 $ 6,125,312 $ 5,464,768 Investment securities,net of allowance for 377,506 373,176 368,830 397,852 423,521 credit lossesLoans held for sale 22,636 37,039 14,465 31,082 11,417 Loans and leases held 5,415,006 5,306,841 5,211,856 4,951,809 4,448,825 for investment, grossAllowance for credit 71,497 83,044 91,870 86,217 68,216 losses, loans and leasesLoans and leases held 5,343,509 5,223,797 5,119,986 4,865,592 4,380,609 for investment, netTotal deposits 5,311,592 5,242,715 5,211,603 4,869,329 4,407,303 Noninterest-bearing 1,857,547 1,690,663 1,714,505 1,725,819 1,318,270 depositsNOW, money market and 2,979,834 2,988,277 2,940,879 2,623,025 2,452,021 savingsTime deposits 474,211 563,775 556,219 520,485 637,012 Borrowings 295,293 311,421 416,104 515,722 323,363 Shareholders' equity 722,455 692,472 669,107 654,873 651,551 Balance Sheet (Average) For the three months ended, 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Assets $ 6,383,463 $ 6,353,519 $ 6,265,605 $ 6,000,790 $ 5,409,561 Investment securities,net of allowance for 374,369 369,511 385,221 411,957 441,900 credit lossesLoans and leases, gross 5,325,897 5,253,720 5,070,037 4,836,858 4,388,584 Deposits 5,296,147 5,222,452 5,030,398 4,794,669 4,349,984 Shareholders' equity 699,736 676,426 661,947 660,950 673,460 Asset Quality Data (Period End) 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Nonaccrual loans andleases, including nonaccrual troubled debtrestructuredloans and leases $ 29,996 $ 31,692 $ 30,019 $ 26,141 $ 36,626 Accruing loans andleases 90 days or more 664 1,392 3,573 1,193 1,777 past dueAccruing troubled debtrestructured loans and 52 53 53 53 54 leasesTotal nonperforming 30,712 33,137 33,645 27,387 38,457 loans and leasesOther real estate owned 7,481 7,355 8,270 8,642 516 Total nonperforming $ 38,193 $ 40,492 $ 41,915 $ 36,029 $ 38,973 assetsNonaccrual loans andleases / Loans and 0.55 % 0.60 % 0.58 % 0.53 % 0.82 %leases held forinvestmentNonperforming loans andleases / Loans and 0.57 % 0.62 % 0.65 % 0.55 % 0.86 %leases held forinvestmentNonperforming assets / 0.60 % 0.64 % 0.66 % 0.59 % 0.71 %Total assets Allowance for credit $ 71,497 $ 83,044 $ 91,870 $ 86,217 $ 68,216 losses, loans and leasesAllowance for creditlosses, loans and leases 1.32 % 1.56 % 1.76 % 1.74 % 1.53 %/ Loans and leases heldfor investmentAllowance for creditlosses, loans and leases/ Loans and leases heldfor investment, 1.46 % 1.72 % 1.95 % 1.94 % 1.53 %excluding PaycheckProtection Program loans(1)Allowance for creditlosses, loans and leases/ Nonaccrual loans and 238.36 % 262.03 % 306.04 % 329.82 % 186.25 %leases held forinvestmentAllowance for creditlosses, loans and leases/ Nonperforming loans 232.80 % 250.61 % 273.06 % 314.81 % 177.38 %and leases held forinvestment For the three months ended, 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Net loan and lease $ 288 $ 618 $ (35 ) $ 3,576 $ 489 charge-offs (recoveries)Net loan and leasecharge-offs (annualized) 0.02 % 0.05 % (0.00 %) 0.30 % 0.04 %/Average loans andleases (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAPperformance measures is included at the end of this document.

Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)March 31, 2021(Dollars inthousands, except per sharedata) For the three months ended,For the period: 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Interest income $ 51,457 $ 51,334 $ 50,612 $ 49,980 $ 52,019 Interest expense 6,043 6,813 6,758 6,462 9,551 Net interest 45,414 44,521 43,854 43,518 42,468 incomeProvision(reversal of (11,283 ) (8,721 ) 3,935 23,737 21,843 provision) forcredit lossesNet interestincome after 56,697 53,242 39,919 19,781 20,625 provision forcredit lossesNoninterest income:Trust fee income 2,034 1,974 1,915 1,924 1,890 Service chargeson deposit 1,282 1,371 1,187 890 1,397 accountsInvestmentadvisory 4,697 4,144 4,005 3,540 4,255 commission andfee incomeInsurancecommission and 4,955 3,512 3,776 4,067 4,732 fee incomeOther service 2,192 2,092 2,093 1,488 1,870 fee incomeBank owned life 717 733 741 732 734 insurance incomeNet gain onsales of 65 54 57 65 695 investmentsecuritiesNet gain onmortgage banking 5,938 4,323 5,860 3,515 2,744 activitiesOther income 1,370 1,936 2,171 1,779 67 Totalnoninterest 23,250 20,139 21,805 18,000 18,384 incomeNoninterest expense:Salaries,benefits and 24,780 23,613 24,059 21,700 23,836 commissionsNet occupancy 2,739 2,697 2,609 2,478 2,574 Equipment 946 951 972 923 995 Data processing 3,050 2,961 2,862 2,750 2,760 Professional 1,748 1,436 1,321 1,264 1,317 feesMarketing and 280 575 463 535 402 advertisingDepositinsurance 636 765 707 615 504 premiumsIntangible 249 282 283 321 330 expensesRestructuring - 1,439 - - - chargesOther expense 5,112 7,015 5,251 5,374 6,059 Totalnoninterest 39,540 41,734 38,527 35,960 38,777 expenseIncome before 40,407 31,647 23,197 1,821 232 taxesIncome taxexpense 7,804 5,773 5,078 (264 ) (606 )(benefit)Net income $ 32,603 $ 25,874 $ 18,119 $ 2,085 $ 838 Net income per share:Basic $ 1.11 $ 0.88 $ 0.62 $ 0.07 $ 0.03 Diluted $ 1.11 $ 0.88 $ 0.62 $ 0.07 $ 0.03 Dividendsdeclared per $ 0.20 $ - $ 0.20 $ 0.20 $ 0.20 shareWeighted averageshares 29,327,432 29,274,915 29,226,627 29,187,197 29,286,200 outstandingPeriod endshares 29,379,575 29,295,052 29,241,302 29,201,985 29,164,782 outstanding

Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)March 31, 2021 For the three months ended,ProfitabilityRatios 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20(annualized) Return on 2.07 % 1.62 % 1.15 % 0.14 % 0.06 %average assetsReturn onaverageassets, 2.07 % 1.69 % 1.15 % 0.14 % 0.06 %excludingrestructuringcharges (1) Return onaverage 18.90 % 15.22 % 10.89 % 1.27 % 0.50 %shareholders'equityReturn onaverageshareholders' 18.90 % 15.89 % 10.89 % 1.27 % 0.50 %equity,excludingrestructuring charges (1)Return onaveragetangible 25.19 % 20.53 % 14.82 % 1.73 % 0.68 %common equity(1)Return onaveragetangible 25.19 % 21.44 % 14.82 % 1.73 % 0.68 %common equity,excludingrestructuring charges (1)Net interest 3.12 % 3.02 % 3.02 % 3.18 % 3.48 %margin (FTE)Efficiency 57.0 % 63.8 % 58.0 % 57.7 % 62.8 %ratio (2)Efficiencyratio,excluding 57.0 % 61.6 % 58.0 % 57.7 % 62.8 %restructuringcharges (1)(2) Capitalization Ratios Dividendsdeclared to 18.0 % 0.0 % 32.3 % 278.7 % 699.9 %net income (3)Shareholders'equity to 11.26 % 10.93 % 10.48 % 10.69 % 11.92 %assets (PeriodEnd)Tangiblecommon equity 8.77 % 8.40 % 7.96 % 8.06 % 8.99 %to tangibleassets (1)Common equitybook value per $ 24.59 $ 23.64 $ 22.88 $ 22.43 $ 22.34 shareTangiblecommon equity $ 18.64 $ 17.66 $ 16.89 $ 16.41 $ 16.31 book value pershare (1) RegulatoryCapital Ratios (Period End)Tier 1 9.45 % 9.08 % 8.97 % 9.15 % 9.90 %leverage ratioCommon equitytier 1 11.08 % 10.76 % 10.52 % 10.73 % 10.79 %risk-basedcapital ratioTier 1risk-based 11.08 % 10.76 % 10.52 % 10.73 % 10.79 %capital ratioTotalrisk-based 15.13 % 15.31 % 15.35 % 13.72 % 13.65 %capital ratio (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) As announced in the September 30, 2020 Earnings Release, the Corporationchanged the timing of future dividend declarations and payments.

Univest Financial Corporation Average Balances and Interest Rates (Unaudited) For the Three Months Ended, Tax Equivalent March 31, 2021 December 31, 2020 Basis Average Income/ Average Average Income/ Average (Dollars in Balance Expense Rate Balance Expense Rate thousands)Assets: Interest-earningdeposits with other $ 237,548 $ 56 0.10 % $ 296,258 $ 82 0.11 %banksU.S. government 6,998 36 2.09 6,998 36 2.05 obligationsObligations ofstate and political 11,544 105 3.69 14,269 129 3.60 subdivisionsOther debt and 355,827 1,267 1.44 348,244 1,237 1.41 equity securitiesFederal Home LoanBank, Federal 26,368 348 5.35 29,838 438 5.84 Reserve Bank andother stockTotalinterest-earningdeposits,investments and 638,285 1,812 1.15 695,607 1,922 1.10 otherinterest-earningassets Commercial,financial, and 782,208 6,798 3.52 824,374 7,366 3.55 agricultural loansPaycheck Protection 506,939 4,524 3.62 497,035 3,133 2.51 Program loansRealestate?commercial 2,621,981 24,458 3.78 2,518,056 24,388 3.85 and constructionloansRealestate?residential 1,037,000 9,873 3.86 1,025,818 10,345 4.01 loansLoans to 26,447 265 4.05 27,427 289 4.19 individualsMunicipal loans and 245,638 2,530 4.18 258,627 2,776 4.27 leasesLease financings 105,684 1,737 6.67 102,383 1,690 6.57 Gross loans and 5,325,897 50,185 3.82 5,253,720 49,987 3.79 leasesTotalinterest-earning 5,964,182 51,997 3.54 5,949,327 51,909 3.47 assetsCash and due from 55,311 53,360 banksAllowance forcredit losses, (83,254 ) (92,766 ) loans and leasesPremises and 55,826 55,653 equipment, netOperating lease 34,033 34,272 right-of-use assetsOther assets 357,365 353,673 Total assets $ 6,383,463 $ 6,353,519 Liabilities: Interest-bearing $ 817,940 $ 490 0.24 % $ 838,323 $ 537 0.25 %checking depositsMoney market 1,243,673 853 0.28 1,213,585 898 0.29 savingsRegular savings 959,232 298 0.13 905,918 341 0.15 Time deposits 525,800 1,759 1.36 582,782 2,034 1.39 Total time andinterest-bearing 3,546,645 3,400 0.39 3,540,608 3,810 0.43 deposits Short-term 17,894 2 0.05 15,091 2 0.05 borrowingsLong-term debt 101,333 348 1.39 169,623 611 1.43 Subordinated notes 183,340 2,293 5.07 193,244 2,390 4.92 Total borrowings 302,567 2,643 3.54 377,958 3,003 3.16 Totalinterest-bearing 3,849,212 6,043 0.64 3,918,566 6,813 0.69 liabilitiesNoninterest-bearing 1,749,502 1,681,844 depositsOperating lease 37,415 37,616 liabilitiesAccrued expensesand other 47,598 39,067 liabilitiesTotal liabilities 5,683,727 5,677,093 Shareholders' Equity:Common stock 157,784 157,784 Additional paid-in 296,136 296,810 capitalRetained earnings 245,816 221,832 and other equityTotal shareholders' 699,736 676,426 equityTotal liabilitiesand shareholders' $ 6,383,463 $ 6,353,519 equityNet interest income $ 45,954 $ 45,096 Net interest spread 2.90 2.78 Effect of netinterest-free 0.22 0.24 funding sourcesNet interest margin 3.12 % 3.02 %Ratio of averageinterest-earningassets to average 154.95 % 151.82 % interest-bearingliabilities Note 1: For rate calculation purposes, average loan and lease categoriesinclude deferred fees and costs and purchase accounting adjustments. 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 thethree months ended March 31, 2021 and December 31, 2020 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 2021 2020 Basis Average Income/ Average Average Income/ Average (Dollars in Balance Expense Rate Balance Expense Rate thousands)Assets: Interest-earningdeposits with other $ 237,548 $ 56 0.10 % $ 118,108 $ 325 1.11 %banksU.S. government 6,998 36 2.09 7,298 37 2.04 obligationsObligations ofstate and political 11,544 105 3.69 33,595 289 3.46 subdivisionsOther debt and 355,827 1,267 1.44 401,007 2,668 2.68 equity securitiesFederal Home LoanBank, Federal 26,368 348 5.35 31,450 527 6.74 Reserve Bank andother stockTotalinterest-earningdeposits,investments and 638,285 1,812 1.15 591,458 3,846 2.62 otherinterest-earningassets Commercial,financial, and 782,208 6,798 3.52 821,267 8,631 4.23 agricultural loansPaycheck Protection 506,939 4,524 3.62 - - - Program loansRealestate?commercial 2,621,981 24,458 3.78 2,139,369 23,917 4.50 and constructionloansRealestate?residential 1,037,000 9,873 3.86 991,550 11,052 4.48 loansLoans to 26,447 265 4.05 30,016 407 5.45 individualsMunicipal loans and 245,638 2,530 4.18 317,006 3,265 4.14 leasesLease financings 105,684 1,737 6.67 89,376 1,554 6.99 Gross loans and 5,325,897 50,185 3.82 4,388,584 48,826 4.47 leasesTotalinterest-earning 5,964,182 51,997 3.54 4,980,042 52,672 4.25 assetsCash and due from 55,311 50,891 banksAllowance forcredit losses, (83,254 ) (44,372 ) loans and leasesPremises and 55,826 56,399 equipment, netOperating lease 34,033 34,545 right-of-use assetsOther assets 357,365 332,056 Total assets $ 6,383,463 $ 5,409,561 Liabilities: Interest-bearing $ 817,940 $ 490 0.24 % $ 584,391 $ 796 0.55 %checking depositsMoney market 1,243,673 853 0.28 1,057,336 2,903 1.10 savingsRegular savings 959,232 298 0.13 816,760 792 0.39 Time deposits 525,800 1,759 1.36 602,903 2,915 1.94 Total time andinterest-bearing 3,546,645 3,400 0.39 3,061,390 7,406 0.97 deposits Short-term 17,894 2 0.05 40,126 106 1.06 borrowingsLong-term debt 101,333 348 1.39 169,205 764 1.82 Subordinated notes 183,340 2,293 5.07 94,847 1,275 5.41 Total borrowings 302,567 2,643 3.54 304,178 2,145 2.84 Totalinterest-bearing 3,849,212 6,043 0.64 3,365,568 9,551 1.14 liabilitiesNoninterest-bearing 1,749,502 1,288,594 depositsOperating lease 37,415 37,766 liabilitiesAccrued expensesand other 47,598 44,173 liabilitiesTotal liabilities 5,683,727 4,736,101 Shareholders' Equity:Common stock 157,784 157,784 Additional paid-in 296,136 295,318 capitalRetained earnings 245,816 220,358 and other equityTotal shareholders' 699,736 673,460 equityTotal liabilitiesand shareholders' $ 6,383,463 $ 5,409,561 equityNet interest income $ 45,954 $ 43,121 Net interest spread 2.90 3.11 Effect of netinterest-free 0.22 0.37 funding sourcesNet interest margin 3.12 % 3.48 %Ratio of averageinterest-earningassets to average 154.95 % 147.97 % interest-bearingliabilities Note 1: For rate calculation purposes, average loan and lease categoriesinclude deferred fees and costs and purchase accounting adjustments. 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, 2021 and 2020 have been calculated using the Corporation?s federal applicable rate of 21.0%.

Univest Financial Corporation Loan Portfolio Overview (Unaudited) (Dollars in thousands) As of March 31, 2021 Total % of $ Balance Modified Outstanding Commercial of LoansIndustry Description Balance Loan Modified as a % of (excl PPP) Portfolio Loans (1) Portfolio (1)CRE - Retail $ 356,690 8.8 % $ - - %Animal Production 269,608 6.7 27 - CRE - Office 247,320 6.1 - - CRE - 1-4 Family 246,643 6.1 1,097 0.4 Residential InvestmentCRE - Multi-family 213,065 5.3 - - CRE - Industrial / 180,254 4.5 738 0.4 WarehouseHotels & Motels 174,751 4.3 35,222 20.2 (Accommodation)Education 155,589 3.9 2,638 1.7 Nursing and Residential 152,016 3.8 - - Care FacilitiesCRE - Mixed-Use - 120,629 3.0 3,530 2.9 ResidentialSpecialty Trade 117,204 2.9 85 0.1 ContractorsReal Estate Lenders,Secondary Market 106,027 2.6 12 - FinancingCRE - Medical Office 93,834 2.3 - - Homebuilding (tract 81,879 2.0 - - developers, remodelers)Merchant Wholesalers, 73,063 1.8 - - Durable GoodsCrop Production 69,853 1.7 - - Motor Vehicle and Parts 65,839 1.6 - - DealersRental and Leasing 61,096 1.5 - - ServicesFabricated Metal 60,472 1.5 - - Product ManufacturingAdministrative and 58,298 1.4 101 0.2 Support ServicesWood Product 57,180 1.4 - - ManufacturingFood Services and 53,168 1.3 3,300 6.2 Drinking PlacesIndustries with >$50 $ 3,014,478 74.5 % $ 46,750 1.6 %million in outstandingsIndustries with <$50 $ 1,026,671 25.5 % $ 24,277 2.4 %million in outstandingsTotal Commercial Loans $ 4,041,149 100.0 % $ 71,027 1.8 % $ Balance ModifiedConsumer Loans and Total of LoansLease Financings Outstanding Modified as a % of Balance Loans (1) Portfolio (1)Real Estate-ResidentialSecured for Personal $ 494,349 $ 1,712 0.3 %PurposeReal Estate-Home EquitySecured for Personal 162,529 84 0.1 PurposeLoans to Individuals 25,468 - - Lease Financings 163,059 212 0.1 Total - Consumer Loans $ 845,405 $ 2,008 0.2 %and Lease Financings Total $ 4,886,554 $ 73,035 1.5 % (1) Loan modifications referenced above were made in accordance with Section4013 of the CARES Act and the Interagency Statement on Loan Modifications andReporting for Financial Institutions Working with Customers Affected by theCoronavirus and therefore were not classified as TDRs as of March 31, 2021.

Univest Financial CorporationNon-GAAP ReconciliationMarch 31, 2021

Non-GAAP to GAAP ReconciliationManagement uses non-GAAP measures in its analysis of the Corporation'sperformance. These measures should not be considered a substitute for GAAPbasis measures nor should they be viewed as a substitute for operating resultsdetermined in accordance with GAAP. Management believes the presentation of thenon-GAAP financial measures, which exclude the impact of the specified items,provides useful supplemental information that is essential to a properunderstanding of the financial results of the Corporation. See the table belowfor additional information on non-GAAP measures used throughout this earningsrelease. For the three months ended, 03/31/21 12/31/20 09/30/20 06/30/20 03/31/20Restructuring $ - $ 1,439 $ - $ - $ - charges (a)Tax effect ofrestructuring - (302 ) - - - chargesRestructuringcharges, net of $ - $ 1,137 $ - $ - $ - tax Shareholders' $ 722,455 $ 692,472 $ 669,107 $ 654,873 $ 651,551 equityGoodwill (172,559 ) (172,559 ) (172,559 ) (172,559 ) (172,559 )Other (2,210 ) (2,458 ) (2,736 ) (3,017 ) (3,333 )intangibles (b)Tangible common $ 547,686 $ 517,455 $ 493,812 $ 479,297 $ 475,659 equity Total assets $ 6,416,665 $ 6,336,496 $ 6,382,831 $ 6,125,312 $ 5,464,768 Goodwill (172,559 ) (172,559 ) (172,559 ) (172,559 ) (172,559 )Other (2,210 ) (2,458 ) (2,736 ) (3,017 ) (3,333 )intangibles (b)Tangible assets $ 6,241,896 $ 6,161,479 $ 6,207,536 $ 5,949,736 $ 5,288,876 Averageshareholders' $ 699,736 $ 676,426 $ 661,947 $ 660,950 $ 673,460 equityAverage (172,559 ) (172,559 ) (172,559 ) (172,559 ) (172,559 )goodwillAverage other (2,344 ) (2,606 ) (2,889 ) (3,185 ) (3,506 )intangibles (b)Averagetangible common $ 524,833 $ 501,261 $ 486,499 $ 485,206 $ 497,395 equity Net income $ 40,407 $ 31,647 $ 23,197 $ 1,821 $ 232 before taxesProvision for (11,283 ) (8,721 ) 3,935 23,737 21,843 credit lossesPre-taxpre-provision $ 29,124 $ 22,926 $ 27,132 $ 25,558 $ 22,075 income Loans andleases held for $ 5,415,006 $ 5,306,841 $ 5,211,856 $ 4,951,809 $ 4,448,825 investment,grossPaycheckProtection (528,452 ) (483,773 ) (501,580 ) (498,978 ) - Program ("PPP")loansGross loans andleases $ 4,886,554 $ 4,823,068 $ 4,710,276 $ 4,452,831 $ 4,448,825 excluding PPPloans (a) Associatedwith financialcenter optimizationplan(b) Amount doesnot include servicingrights





CONTACT:Brian J. RichardsonUNIVEST FINANCIAL CORPORATIONChief Financial Officer215-721-2446, richardsonb@univest.net