Earnings release
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Univest Financial Corporation Reports Third Quarter Results October 28, 2026 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,
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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.
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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 CorporationConsolidated 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 withother 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 availablefor sale, net of allowance forcredit losses 374,564 378,586 379,028 371,251 368,393 Investments in equitysecurities 2,418 2,705 2,898 2,014 2,413
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Federal Home Loan Bank,Federal Reserve Bank andother 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 forinvestment 7,014,437 7,041,957 6,940,212 6,914,804 6,785,482 Less: Allowance for creditlosses, loans and leases (80,950) (89,967) (88,900) (88,165) (86,527) Net loans and leases held forinvestment 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-useassets 24,588 24,267 25,032 25,795 26,536 Goodwill 175,510 175,510 175,510 175,510 175,510 Other intangibles, net ofaccumulated 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 otherassets 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 otherliabilities 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 authorizedand 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 othercomprehensive loss, net of taxbenefit (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 andshareholders’ equity $8,606,406 $8,202,992 $8,141,582 $8,436,897 $8,573,616 For the three months ended, For the nine monthsended,Balance Sheet (Average) 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25Assets $8,394,497 $8,132,913 $8,250,766 $8,528,465 $8,191,010 $8,259,919 $8,051,278Investment securities, net ofallowance for credit losses 497,334 502,065 499,078 497,201 492,197 499,486 496,468Loans and leases, gross 7,065,392 7,008,079 6,939,600 6,848,654 6,790,827 7,004,818 6,831,183Deposits 7,122,942 6,843,709 6,891,928 7,165,437 6,836,043 6,953,705 6,696,449Shareholders' equity 959,570 951,863 949,509 936,417 923,454 953,685 909,698 Univest Financial CorporationConsolidated Summary of Loans by Type and Asset Quality Data (Unaudited)September 30, 2026(Dollars in thousands) Summary of Major Loan andLease Categories (PeriodEnd) 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 Commercial, financial andagricultural $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
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Real estate-construction 355,346 329,558 299,962 306,793 309,365 Real estate-residentialsecured for business purpose 575,125 576,326 556,040 554,178 545,191 Real estate-residentialsecured for personal purpose 901,823 911,116 942,054 959,610 974,395 Real estate-home equitysecured 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 heldfor investment, net ofdeferred income 7,014,437 7,041,957 6,940,212 6,914,804 6,785,482 Less: Allowance for creditlosses, loans and leases (80,950) (89,967) (88,900) (88,165) (86,527) Net loans and leases heldfor investment $6,933,487 $6,951,990 $6,851,312 $6,826,639 $6,698,955 Asset Quality Data (PeriodEnd) 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 90days or more past due 849 160 3,750 89 829 Total nonperforming loans andleases 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 forinvestment 0.44% 0.62% 0.19% 0.20% 0.40% Nonperforming loans andleases / Loans and leases heldfor investment 0.46% 0.63% 0.25% 0.20% 0.41% Nonperforming assets / Totalassets 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 andleases held for investment 1.15% 1.28% 1.28% 1.28% 1.28% Allowance for credit losses,loans and leases / Nonaccrualloans and leases 259.66% 204.95% 668.97% 641.53% 316.60% Allowance for credit losses,loans and leases /Nonperforming loans andleases 252.78% 204.21% 521.74% 637.40% 307.28% For the three months ended, For the nine monthsended, 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25Net 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 loansand leases 0.99% 0.11% 0.07% 0.07% 0.03% 0.40% 0.20% Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)September 30, 2026(Dollars in thousands,except per share data) For the three months ended, For the nine monthsended,For the period: 09/30/26 06/30/26 03/31/26 12/31/25 09/30/25 09/30/26 09/30/25Interest income $ 112,891 $ 108,129 $ 106,351 $ 111,716 $ 109,648 $ 327,371 $ 318,770Interest expense 45,130 41,881 42,986 49,167 48,324 129,997 141,124
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Net interest income 67,761 66,248 63,365 62,549 61,324 197,374 177,646Provision for credit losses 8,997 2,672 1,303 3,145 517 12,972 8,522Net interest income afterprovision for credit losses 58,764 63,576 62,062 59,404 60,807 184,402 169,124Noninterest income: Trust fee income 2,279 2,283 2,236 2,316 2,230 6,798 6,537Service charges ondeposit accounts 2,373 2,363 2,279 2,237 2,302 7,015 6,754Investment advisorycommission and feeincome 6,433 6,043 6,154 6,055 5,671 18,630 16,744Insurance commissionand fee income 5,433 5,351 7,423 4,825 5,468 18,207 17,618Other service fee income 2,895 3,319 3,041 2,668 2,416 9,255 8,270Bank owned lifeinsurance income 988 1,698 1,332 970 1,908 4,018 4,879Net gain on investmentsecurities transactions - 11 - - - 11 -Net gain on mortgagebanking activities 1,164 1,346 791 886 848 3,301 2,476Net (loss) gain on salesand write-downs of otherreal estate owned - (5,249) - - - (5,249) -Other income 704 941 832 2,065 1,080 2,477 2,561Total noninterest income 22,269 18,106 24,088 22,022 21,923 64,463 65,839Noninterest expense: Salaries, benefits andcommissions 34,245 33,208 33,459 33,009 31,652 100,912 94,014Net occupancy 2,817 2,938 2,998 2,882 2,675 8,753 8,267Equipment 1,004 1,122 1,079 1,052 1,076 3,205 3,241Data processing 4,603 4,627 4,480 4,390 4,263 13,710 13,035Professional fees 1,793 2,029 1,677 1,947 1,876 5,499 5,270Marketing andadvertising 786 988 634 479 323 2,408 1,174Deposit insurancepremiums 1,252 1,118 1,170 1,106 1,195 3,540 3,420Intangible expenses 69 92 93 102 106 254 367Restructuring charges - - 427 - - 427 -Other expense 7,433 7,002 6,652 7,743 7,503 21,087 21,541Total noninterest expense 54,002 53,124 52,669 52,710 50,669 159,795 150,329Income before taxes 27,031 28,558 33,481 28,716 32,061 89,070 84,634Income tax expense 5,463 5,605 6,389 5,971 6,422 17,457 16,622Net income $ 21,568 $ 22,953 $ 27,092 $ 22,745 $ 25,639 $ 71,613 $ 68,012Net income per share: Basic $ 0.78 $ 0.83 $ 0.97 $ 0.80 $ 0.89 $ 2.58 $ 2.36Diluted $ 0.78 $ 0.82 $ 0.96 $ 0.79 $ 0.89 $ 2.56 $ 2.34Dividends declared pershare $ 0.23 $ 0.23 $ 0.22 $ 0.22 $ 0.22 $ 0.68 $ 0.65Weighted average sharesoutstanding 27,485,325 27,741,836 28,032,897 28,376,191 28,716,582 27,751,347 28,856,903Period end sharesoutstanding 27,306,376 27,585,768 27,949,173 28,156,917 28,576,346 27,306,376 28,576,346 Univest Financial CorporationConsolidated Selected Financial Data (Unaudited)September 30, 2026 For the three months ended, For the nine monthsended,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, excludingrestructuring 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)
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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 pershare (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 capitalratio 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 equivalentincome.(3) Net income before amortization of intangibles to average tangible common equity. Univest Financial Corporation Average Balances and Interest Rates (Unaudited) For the Three Months Ended, Tax Equivalent Basis September 30, 2026 June 30, 2026 AverageIncome/Average AverageIncome/Average (Dollars in thousands) BalanceExpenseRate BalanceExpenseRate Assets: Interest-earning deposits with other banks$ 325,543 $ 3,085 3.76%$ 120,511 $ 1,118 3.72%Other debt and equity securities 497,334 4,308 3.44 502,065 4,203 3.36 Federal Home Loan Bank, Federal Reserve Bankand other stock 34,132 670 7.79 33,537 625 7.47 Total interest-earning deposits, investments andother interest-earning assets 857,009 8,063 3.73 656,113 5,946 3.63 Commercial, financial, and agricultural loans 1,009,614 16,360 6.43 989,950 16,293 6.60 Real estate—commercial and construction loans 3,938,430 59,935 6.04 3,892,900 57,589 5.93 Real estate—residential loans 1,694,808 22,131 5.18 1,711,210 22,002 5.16 Loans to individuals 12,375 255 8.18 12,511 270 8.66 Tax-exempt loans and leases 229,597 3,347 5.78 224,883 3,235 5.77 Lease financings 180,568 3,312 7.28 176,625 3,294 7.48 Gross loans and leases 7,065,392 105,3405.92 7,008,079 102,6835.88 Total interest-earning assets 7,922,401 113,403 5.68 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 $ 9,465 2.61%$1,255,397 $ 7,603 2.43%Money market savings 2,103,895 17,756 3.35 1,998,397 16,604 3.33 Regular savings 725,102 1,143 0.63 748,657 1,203 0.64 Time deposits 1,434,985 13,742 3.80 1,411,889 13,357 3.79 Total time and interest-bearing deposits 5,703,300 42,106 2.93 5,414,340 38,767 2.87 Short-term borrowings 10,539 1 0.04 33,437 30 0.36 Long-term debt 125,000 1,276 4.05 131,868 1,337 4.07 Subordinated notes 99,036 1,747 7.00 98,944 1,747 7.08
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Total borrowings 234,575 3,024 5.11 264,249 3,114 4.73 Total interest-bearing liabilities 5,937,875 45,130 3.02 5,678,589 41,881 2.96 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 averageinterest-bearing liabilities 133.42% 134.97% Notes:For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accountingadjustments.Net interest income includes net deferred costs amortization of $820 thousand and $801 thousand for the three months endedSeptember 30, 2026 and June 30, 2026, respectively.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been includedin the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2026 and June 30, 2026 havebeen calculated using the Corporation’s federal applicable rate of 21.0%. Univest Financial Corporation Average Balances and Interest Rates (Unaudited) For the Three Months EndedSeptember 30, Tax Equivalent Basis 2026 2025 AverageIncome/Average AverageIncome/Average (Dollars in thousands) BalanceExpenseRate BalanceExpenseRate Assets: Interest-earning deposits with other banks$ 325,543 $ 3,085 3.76%$ 395,944 $ 4,363 4.37%Other debt and equity securities 497,334 4,308 3.44 492,197 3,923 3.16 Federal Home Loan Bank, Federal Reserve Bankand other stock 34,132 670 7.79 37,159 736 7.86 Total interest-earning deposits, investments andother interest-earning assets 857,009 8,063 3.73 925,300 9,022 3.87 Commercial, financial, and agricultural loans 1,009,614 16,360 6.43 949,676 17,223 7.20 Real estate—commercial and construction loans 3,938,430 59,935 6.04 3,705,154 55,469 5.94 Real estate—residential loans 1,694,808 22,131 5.18 1,719,844 21,846 5.04 Loans to individuals 12,375 255 8.18 13,497 308 9.05 Tax-exempt loans and leases 229,597 3,347 5.78 229,253 3,033 5.25 Lease financings 180,568 3,312 7.28 173,403 3,159 7.23 Gross loans and leases 7,065,392 105,3405.92 6,790,827 101,0385.90 Total interest-earning assets 7,922,401 113,403 5.68 7,716,127 110,060 5.66 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 $ 9,465 2.61%$1,293,781 $ 8,685 2.66%Money market savings 2,103,895 17,756 3.35 1,915,501 18,765 3.89 Regular savings 725,102 1,143 0.63 724,927 1,068 0.58 Time deposits 1,434,985 13,742 3.80 1,482,837 15,100 4.04 Total time and interest-bearing deposits 5,703,300 42,106 2.93 5,417,046 43,618 3.19
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Short-term borrowings 10,539 1 0.04 10,639 1 0.04 Long-term debt 125,000 1,276 4.05 200,000 2,145 4.26 Subordinated notes 99,036 1,747 7.00 139,127 2,560 7.30 Total borrowings 234,575 3,024 5.11 349,766 4,706 5.34 Total interest-bearing liabilities 5,937,875 45,130 3.02 5,766,812 48,324 3.32 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 averageinterest-bearing liabilities 133.42% 133.80% Notes:For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accountingadjustments.Net interest income includes net deferred costs amortization of $820 thousand and $687 thousand for the three months endedSeptember 30, 2026 and 2025, respectively.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been includedin the average loan balances. Tax-equivalent amounts for the three months ended September 30, 2026 and 2025 have beencalculated using the Corporation’s federal applicable rate of 21.0%. Univest Financial Corporation Average Balances and Interest Rates (Unaudited) For the Nine Months Ended September 30, Tax Equivalent Basis 2026 2025 AverageIncome/Average AverageIncome/Average (Dollars in thousands) BalanceExpenseRate BalanceExpenseRate Assets: Interest-earning deposits with other banks$ 251,019 $ 7,013 3.74%$ 216,788 $ 7,094 4.38%Obligations of state and political subdivisions* - - - 290 4 1.84 Other debt and equity securities 499,486 12,564 3.36 496,178 11,904 3.21 Federal Home Loan Bank, Federal Reserve Bank andother stock 34,973 1,999 7.64 37,142 2,094 7.54 Total interest-earning deposits, investments andother interest-earning assets 785,478 21,576 3.67 750,398 21,096 3.76 Commercial, financial, and agricultural loans 986,595 47,984 6.50 981,956 51,929 7.07 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 65,659 5.15 1,725,423 65,160 5.05 Loans to individuals 12,427 798 8.59 16,148 1,038 8.59 Tax-exempt loans and leases 225,906 9,698 5.74 229,411 8,860 5.16 Lease financings 176,749 9,818 7.43 177,692 9,591 7.22 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 $ 24,790 2.50%$1,244,497 $ 23,560 2.53%
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Money market savings 2,049,414 51,278 3.35 1,836,983 53,745 3.91 Regular savings 746,204 3,718 0.67 709,493 2,580 0.49 Time deposits 1,412,174 40,229 3.81 1,500,137 47,467 4.23 Total time and interest-bearing deposits 5,533,468 120,0152.90 5,291,110 127,3523.22 Short-term borrowings 23,130 34 0.20 7,614 16 0.28 Long-term debt 152,473 4,706 4.13 205,952 6,634 4.31 Subordinated notes 98,959 5,242 7.08 145,926 7,122 6.53 Total borrowings 274,562 9,982 4.86 359,492 13,772 5.12 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 averageinterest-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 accountingadjustments. Net interest income includes net deferred costs amortization of $2.4 million and $1.9 million for the nine months ended September30, 2026 and 2025, respectively.Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been includedin the average loan balances. Tax-equivalent amounts for the nine months ended September 30, 2026 and 2025 have beencalculated using the Corporation’s federal applicable rate of 21.0%. Univest Financial CorporationLoan Portfolio Overview (Unaudited)September 30, 2026 (Dollars in thousands) Industry Description Total OutstandingBalance % of CommercialLoan 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
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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 OutstandingBalance 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 CorporationNon-GAAP ReconciliationSeptember 30, 2026 Non-GAAP to GAAP ReconciliationManagement uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not beconsidered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined inaccordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impactof the specified items, provides useful supplemental information that is essential to a proper understanding of the financial resultsof the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release. As of or for thethree months ended, As of or for thesix 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 ofrestructuring 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, netof tax 55 73 73 81 84 201 290 Net income before amortizationof 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 commonequity $ 782,176 $ 774,415 $ 772,077 $ 758,972 $ 745,961 $ 776,261 $ 732,074
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(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:Brian J. RichardsonUNIVEST FINANCIAL CORPORATIONChief Financial Officer215-721-2446, richardsonb@univest.net Source: Univest Financial Corporation