(Loan Growth of 9.4% for last twelve months (excluding PPP loans¹))

SOUDERTON, Pa., Jan. 26, 2022 (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, today announced net income for the year ended December 31, 2021 of $91.8 million, or $3.11 diluted earnings per share, compared to net income of $46.9 million, or $1.60 diluted earnings per share, for the year ended December 31, 2020. Net income for the quarter ended December 31, 2021 was $17.4 million, or $0.59 diluted earnings per share, compared to net income of $25.9 million, or $0.88 diluted earnings per share, for the quarter ended December 31, 2020.

Pre-tax pre-provision income¹ for the year ended December 31, 2021 was $104.2 million, an increase of $6.5 million, or 6.7%, from the prior year. Pre-tax pre-provision income¹ for the quarter ended December 31, 2021 was $23.4 million, an increase of $456 thousand, or 2.0%, from the fourth quarter of 2020.

Acquisition

On December 1, 2021, Univest Insurance, LLC., the Bank's insurance subsidiary, completed the acquisition of the Paul I. Sheaffer Insurance Agency, a full-service firm providing insurance solutions to businesses and individuals in Central Pennsylvania.

Paycheck Protection Program

As of December 31, 2021, $31.7 million in PPP loans remain outstanding. During the fourth quarter, we recorded income of $1.6 million within net interest income related to these loans, of which $1.4 million was the result of recognition of associated net deferred loan fees upon forgiveness and pay downs of PPP loans totaling $55.4 million. During the year ended December 31, 2021, we recorded income of $15.0 million within net interest income related to these loans, of which $10.4 million was the result of recognition of associated net deferred loan fees upon forgiveness and pay downs of PPP loans totaling $630.7 million. As of December 31, 2021, we had $817 thousand of net deferred fees on our balance sheet, which represented approximately 4.5% of the initial deferred fee amount.

Loans

Gross loans and leases, excluding PPP loans¹, increased $455.2 million, or 9.4%, from December 31, 2020 due to increases in commercial, construction, commercial real estate, and residential mortgage loans and lease financings. Gross loans and leases, excluding PPP loans¹, increased $111.8 million, or 8.7% (annualized), from September 30, 2021 due to increases in construction, commercial real estate and commercial loans and lease financings.

Deposits

Total deposits increased $812.4 million, or 15.5%, from December 31, 2020, primarily due to increases in commercial, consumer and public funds deposits offset by a decrease in brokered deposits. Total deposits increased $117.0 million, or 7.9% (annualized), from September 30, 2021, primarily due to increases in commercial and consumer deposits offset by a decrease in public funds deposits.

Net Interest Income and Margin

Net interest income of $47.5 million for the three months ended December 31, 2021 increased $3.0 million, or 6.7%, from the three months ended December 31, 2020. The increase in net interest income for the three months ended December 31, 2021 compared to the same period of 2020 was primarily due to overall growth in loans, led by an increase in commercial real estate loan income of $2.2 million, and a $2.1 million decrease in the cost of interest-bearing liabilities offset by a decrease in PPP loan income of $1.6 million.

Net interest income of $188.4 million for the year ended December 31, 2021 increased $14.0 million, or 8.0%, from the prior year. The increase in net interest income for the year ended December 31, 2021 compared to 2020 was primarily due to an increase in PPP loan income of $7.0 million, an $8.2 million decrease in the cost of interest-bearing liabilities and growth in loans, primarily commercial real estate loans, partially offset by a decrease in loan yields, excluding PPP loans, and investment yields.

Net interest margin, on a tax-equivalent basis, was 2.86% for the fourth quarter of 2021, compared to 3.11% for the third quarter of 2021 and 3.02% for the fourth quarter of 2020. Excess liquidity reduced net interest margin by approximately 43 basis points for the quarter ended December 31, 2021 compared to 27 basis points for the quarter ended September 30, 2021 and 13 basis points for the quarter ended December 31, 2020. This excess liquidity was primarily driven by strong growth of deposit balances since the beginning of the COVID-19 pandemic, primarily due to the various pandemic-related stimulus initiatives. PPP loans had a favorable impact on net interest margin of eight basis points for the quarter ended December 31, 2021 compared to 20 basis points for the quarter ended September 30, 2021 and an unfavorable impact of seven basis points for the quarter ended December 31, 2020. As PPP loans are forgiven, the associated deferred fees are recognized in earnings, which occurred with greater frequency in 2021 as compared to 2020. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.21% for the quarter ended December 31, 2021 compared to 3.18% for the quarter ended September 30, 2021 and 3.22% for the quarter ended December 31, 2020.

Net interest margin, on a tax-equivalent basis, was 3.06% for the year ended December 31, 2021, compared to 3.16% for the year ended December 31, 2020. Excess liquidity reduced net interest margin by approximately 23 basis points for the year ended December 31, 2021 compared to 14 basis points for the year ended December 31, 2020. This excess liquidity was primarily driven by strong growth of deposit balances since the beginning of the COVID-19 pandemic, primarily due to the various pandemic-related stimulus initiatives. PPP loans had a favorable impact on net interest margin of 11 basis points for the year ended December 31, 2021 compared to an unfavorable impact of seven basis points for the year ended December 31, 2020. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.18% for the year ended December 31, 2021 compared to 3.37% for the year ended December 31, 2020.

Noninterest Income

Noninterest income for the quarter ended December 31, 2021 was $19.2 million, a decrease of $947 thousand, or 4.7%, from the comparable period in the prior year. Noninterest income for the year ended December 31, 2021 was $83.2 million, an increase of $4.9 million, or 6.3%, from the prior year.

Net gain on mortgage banking activities decreased $1.8 million, or 41.8%, for the quarter and $1.3 million, or 7.9%, for the year ended December 31, 2021 compared to the comparable periods in the prior year. The decrease for the three months and year ended December 31, 2021 was primarily due to a decrease in volume and a contraction of margins. Investment advisory commission and fee income increased $741 thousand, or 17.9%, for the quarter and $3.0 million, or 18.8%, for the year ended December 31, 2021 compared to the comparable periods in the prior year, due to increased assets under management driven by new customer relationships and favorable market conditions. BOLI income decreased $14 thousand, or 1.9%, for the quarter and increased $1.0 million, or 35.4%, for the year ended December 31, 2021 compared to the comparable periods in the prior year, primarily due to proceeds from BOLI death benefits of $893 thousand and $196 thousand received in the second and third quarters of 2021, respectively.

Other service fee income increased $667 thousand, or 31.9%, for the quarter and $2.7 million, or 36.2%, for the year ended December 31, 2021 compared to the comparable periods in the prior year. Interchange fee income increased $260 thousand for the quarter and $1.2 million for the year ended December 31, 2021 compared to the comparable periods in the prior year, due to increased customer activity. Mortgage servicing fees increased $299 thousand for the quarter and $1.2 million for the year ended December 31, 2021 compared to the comparable period in the prior year, driven by an increase in retained servicing associated with elevated mortgage volume and reduced amortization due to decreased refinance activity and lower prepayment assumptions.

Other income decreased $928 thousand, or 47.9%, for the quarter and $1.5 million, or 24.7%, for the year ended December 31, 2021 compared to comparable periods in the prior year. Fees on risk participation agreements for interest rate swaps decreased $1.2 million and $3.5 million during the quarter and year ended December 31, 2021, respectively, compared to comparable periods in the prior year driven by a decrease in customer demand. Gain on the sale of SBA loans increased $354 thousand and $1.3 million during the quarter and year ended December 31, 2021, respectively, compared to comparable periods in the prior year. This increase was reflective of the Corporation's continued commitment to delivering comprehensive financial solutions to small businesses through the expansion of the SBA lending team during the first half of 2021. Other income also increased $347 thousand driven by an increase in the fair value of equity securities during the year ended December 31, 2021 compared to the year ended December 31, 2020.

Noninterest Expense

Noninterest expense for the quarter ended December 31, 2021 was $43.3 million, an increase of $1.6 million, or 3.8%, from the comparable period in the prior year. Noninterest expense for the year ended December 31, 2021 was $167.4 million, an increase of $12.4 million, or 8.0%, from the prior year.

Salaries, benefits and commissions increased $3.8 million, or 15.9%, for the quarter and $11.0 million, or 11.8%, for the year ended December 31, 2021 compared to the comparable periods in the prior year. These increases reflect our continued investment in revenue producing staff across all business lines and annual merit increases. The Corporation modified the vesting criteria for performance-based restricted stock grants in 2020 to better reflect the operating environment, which resulted in a benefit of $928 thousand in salaries, benefits and commissions in the fourth quarter of 2020. Additionally, variable incentive compensation expenses increased $999 thousand and $3.6 million for the quarter and year ended December 31, 2021, respectively, from the comparable periods in the prior year, due to increased profitability.

Professional fees increased $314 thousand, or 21.9%, for the quarter and $2.3 million, or 44.0%, for the year ended December 31, 2021 compared to the comparable periods in the prior year, primarily attributable to increased consultant fees in support of our Diversity, Equity and Inclusion program, training initiatives and treasury management product enhancements. During 2021, we spent $1.5 million on these initiatives. These expenses are not expected to re-occur in subsequent periods. Data processing expenses increased $394 thousand, or 13.3%, for the quarter and $1.4 million, or 12.4%, for the year ended December 31, 2021 compared to the comparable periods in the prior year, primarily due to continued investments in our end-to-end loan origination solution for loans below $1.0 million, customer relationship management software, internal infrastructure improvements and outsourced data processing solutions.

Restructuring charges decreased $1.4 million for the quarter and year ended December 31, 2021 compared to the comparable periods in the prior year. These charges relate to the Corporation's financial center optimization plan announced in the fourth quarter of 2020. Other expense decreased $1.3 million, or 18.1%, for the quarter and $961 thousand, or 4.1%, for the year ended December 31, 2021 compared to the comparable periods in the prior year, primarily driven by extinguishment of long-term debt expense of $1.1 million and $1.8 million for the quarter and year ended December 31, 2020, respectively, offset primarily by increases in interchange expense driven by increased customer activity.

Asset Quality and Provision for Credit Losses

Nonperforming assets were $34.0 million at December 31, 2021, compared to $37.1 million at September 30, 2021 and $40.5 million at December 31, 2020.

Net loan and lease recoveries were $243 thousand during the fourth quarter of 2021 compared to net loan and lease charge-offs of $618 thousand for the same period in the prior year. The provision for credit losses was $1.4 million for the fourth quarter of 2021, of which $788 thousand (after-tax expense of $623 thousand), or $0.02 diluted earnings per share, was attributable to unfavorable changes in economic-related assumptions within the Corporation's CECL model and $1.3 million was attributable to an increase in reserves for loans. These increases were offset by a decrease of $681 thousand in reserves for unfunded commitments and investment securities. The reversal of provision for credit losses was $8.7 million for the comparable period in the prior year, due to a reserve decrease of $8.2 million related to loans and leases and $690 thousand related to unfunded commitments, offset by a reserve increase of $176 thousand related to investment securities. $11.6 million (after-tax benefit of $9.2 million), or $0.31 diluted earnings per share, of the $8.7 million reversal of provision for credit losses was attributable to changes in economic-related assumptions within the Corporation's CECL model.

Net loan and lease charge-offs were $213 thousand for the year ended December 31, 2021 compared to $4.6 million for the same period in the prior year. The reversal of provision for credit losses was $10.1 million for the year ended December 31, 2021, of which $17.9 million (after-tax benefit of $14.2 million), or $0.48 diluted earnings per share, was attributable to favorable changes in economic-related assumptions within the Corporation's CECL model partially offset by a $7.4 million increase in reserves for loans. The provision for credit losses was $40.8 million for the prior year due to a reserve increase of $39.4 million related to loans and leases, $786 thousand related to reserves for unfunded commitments, and $569 thousand related to investment securities. $27.4 million (after-tax charge of $21.6 million), or $0.74 diluted earnings per share, of the $40.8 million of provision for credit losses was attributable to changes in economic-related assumptions within the Corporation's CECL model.

The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.35% at December 31, 2021, compared to 1.34% at September 30, 2021, and 1.56% at December 31, 2020. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment, excluding PPP loans¹, was 1.36% at December 31, 2021 compared to 1.36% at September 30, 2021 and 1.72% at December 31, 2020.

Tax Provision

The effective income tax rate was 19.7% for the year ended December 31, 2021 compared to an effective income tax rate of 17.5% for the year ended December 31, 2020. The effective tax rate for the year ended December 31, 2021 and 2020 reflects the level of pre-tax income and the benefits of tax-exempt income from investments in municipal securities and loans and leases.

Dividend

On January 26, 2022, Univest declared a quarterly cash dividend of $0.20 per share. The dividend will be paid on February 23, 2022 to shareholders of record as of February 9, 2022.

Conference Call

Univest will host a conference call to discuss fourth quarter and year end 2021 results on Thursday, January 27, 2022 at 9:00 a.m. EST. Participants may preregister at https://www.incommglobalevents.com/registration/q4inc/9616/univest-financial-corporation-to-hold-fourth-quarter-and-year-end-2021-earnings-call/. The general public can access the call by dialing 1-844-200-6205; using Access Code 454983. A replay of the conference call will be available through February 28, 2022 by dialing 1-866-813-9403; using Access Code: 298990.

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

About Univest Financial Corporation

Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.1 billion in assets and $4.9 billion in assets under management and supervision through its Wealth Management lines of business at December 31, 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 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 strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future 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) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory or tax changes that may adversely affect businesses; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets or (9) 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 pandemic 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. 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 economic conditions worsen, loan delinquencies, problem assets, and foreclosures may increase and our allowance for credit losses may have to be increased; (3) collateral for loans, especially real estate, may decline in value; (4) the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; (5) 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; (6) our wealth management revenues may decline with continuing market turmoil; (7) 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; and (8) our cyber security risks are increased as the result of an increase in the number of employees working remotely. 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 Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2021
(Dollars in thousands)

Balance Sheet (Period End)	12/31/21			09/30/21			06/30/21			03/31/21			12/31/20
Assets	$	7,122,421		$	6,979,852		$	6,356,305		$	6,416,665		$	6,336,496
Cash and cash equivalents		890,150			902,357			203,449			187,317			219,858
Investment securities, net of allowance for credit losses		496,989			393,377			397,426			377,506			373,176
Loans held for sale		21,600			29,093			27,322			22,636			37,039
Loans and leases held for investment, gross		5,310,017			5,252,045			5,327,313			5,415,006			5,306,841
Allowance for credit losses, loans and leases		71,924			70,146			71,355			71,497			83,044
Loans and leases held for investment, net		5,238,093			5,181,899			5,255,958			5,343,509			5,223,797
Total deposits		6,055,124			5,938,154			5,318,704			5,311,592			5,242,715
Noninterest-bearing deposits		2,065,423			1,861,007			1,872,031			1,857,547			1,690,663
Interest-bearing demand, money market and savings		3,505,535			3,583,107			2,954,450			2,979,834			2,988,277
Time deposits		484,166			494,040			492,223			474,211			563,775
Borrowings		213,980			207,898			218,970			295,293			311,421
Shareholders' equity		773,794			756,023			739,998			722,455			692,472


Balance Sheet (Average)	For the three months ended,															For the twelve months ended,
	12/31/21			09/30/21			06/30/21			03/31/21			12/31/20			12/31/21			12/31/20
Assets	$	7,088,289		$	6,698,177		$	6,443,629		$	6,383,463		$	6,353,519		$	6,655,443		$	6,006,877
Investment securities, net of allowance for credit losses		469,588			395,280			385,694			374,369			369,511			406,463			402,011
Loans and leases, gross		5,255,279			5,320,411			5,389,110			5,325,897			5,253,720			5,322,475			4,888,801
Deposits		6,041,798			5,666,725			5,351,089			5,296,147			5,222,452			5,591,195			4,850,890
Shareholders' equity		762,334			746,185			728,750			699,736			676,426			734,456			668,201


Asset Quality Data (Period End)
	12/31/21			09/30/21			06/30/21			03/31/21			12/31/20
Nonaccrual loans and leases, including nonaccrual troubled debt restructured
loans and leases and nonaccrual loans held for sale	$	33,210		$	34,528		$	37,466		$	29,996		$	31,692
Accruing loans and leases 90 days or more past due		498			2,204			750			664			1,392
Accruing troubled debt restructured loans and leases		51			51			52			52			53
Total nonperforming loans and leases		33,759			36,783			38,268			30,712			33,137
Other real estate owned		279			279			279			7,481			7,355
Total nonperforming assets	$	34,038		$	37,062		$	38,547		$	38,193		$	40,492
Nonaccrual loans and leases / Loans and leases held for investment and nonaccrual loans held for sale		0.63	%		0.66	%		0.70	%		0.55	%		0.60	%
Nonperforming loans and leases / Loans and leases held for investment		0.64	%		0.70	%		0.72	%		0.57	%		0.62	%
Nonperforming assets / Total assets		0.48	%		0.53	%		0.61	%		0.60	%		0.64	%

Allowance for credit losses, loans and leases	$	71,924		$	70,146		$	71,355		$	71,497		$	83,044
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.35	%		1.34	%		1.34	%		1.32	%		1.56	%
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)		1.36	%		1.36	%		1.41	%		1.46	%		1.72	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment		216.57	%		203.16	%		212.97	%		238.36	%		262.03	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment		213.05	%		190.70	%		208.00	%		232.80	%		250.61	%

	For the three months ended,															For the twelve months ended,
	12/31/21			09/30/21			06/30/21			03/31/21			12/31/20			12/31/21			12/31/20
Net loan and lease (recoveries) charge-offs	$	(243	)	$	(75	)	$	243		$	288		$	618		$	213		$	4,648
Net loan and lease (recoveries) charge-offs (annualized)/Average loans and leases		(0.02	%)		(0.01	%)		0.02	%		0.02	%		0.05	%		0.00	%		0.10	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2021
(Dollars in thousands, except per share data)
	For the three months ended,														For the twelve months ended,
For the period:	12/31/21		09/30/21			06/30/21			03/31/21			12/31/20			12/31/21			12/31/20
Interest income	$	52,262	$	53,571		$	52,441		$	51,457		$	51,334		$	209,731		$	203,945
Interest expense		4,737		4,884			5,684			6,043			6,813			21,348			29,584
Net interest income		47,525		48,687			46,757			45,414			44,521			188,383			174,361
Provision (reversal of provision) for credit losses		1,392		(182	)		(59	)		(11,283	)		(8,721	)		(10,132	)		40,794
Net interest income after provision for credit losses		46,133		48,869			46,816			56,697			53,242			198,515			133,567
Noninterest income:
Trust fee income		2,086		2,126			2,157			2,034			1,974			8,403			7,703
Service charges on deposit accounts		1,486		1,422			1,314			1,282			1,371			5,504			4,845
Investment advisory commission and fee income		4,885		4,796			4,558			4,697			4,144			18,936			15,944
Insurance commission and fee income		3,726		3,837			3,839			4,955			3,512			16,357			16,087
Other service fee income		2,759		2,576			2,748			2,192			2,092			10,275			7,543
Bank owned life insurance income		719		925			1,620			717			733			3,981			2,940
Net gain on sales of investment securities		5		21			54			65			54			145			871
Net gain on mortgage banking activities		2,518		3,224			3,461			5,938			4,323			15,141			16,442
Other income		1,008		1,625			479			1,370			1,936			4,482			5,953
Total noninterest income		19,192		20,552			20,230			23,250			20,139			83,224			78,328
Noninterest expense:
Salaries, benefits and commissions		27,374		26,641			25,396			24,780			23,613			104,191			93,208
Net occupancy		2,477		2,525			2,656			2,739			2,697			10,397			10,358
Equipment		985		1,000			968			946			951			3,899			3,841
Data processing		3,355		3,274			3,064			3,050			2,961			12,743			11,333
Professional fees		1,750		2,174			2,015			1,748			1,436			7,687			5,338
Marketing and advertising		683		539			561			280			575			2,063			1,975
Deposit insurance premiums		698		765			613			636			765			2,712			2,591
Intangible expenses		267		214			249			249			282			979			1,216
Restructuring charges		-		-			-			-			1,439			-			1,439
Other expense		5,746		6,116			5,764			5,112			7,015			22,738			23,699
Total noninterest expense		43,335		43,248			41,286			39,540			41,734			167,409			154,998
Income before taxes		21,990		26,173			25,760			40,407			31,647			114,330			56,897
Income tax expense		4,578		5,262			4,885			7,804			5,773			22,529			9,981
Net income	$	17,412	$	20,911		$	20,875		$	32,603		$	25,874		$	91,801		$	46,916
Net income per share:
Basic	$	0.59	$	0.71		$	0.71		$	1.11		$	0.88		$	3.12		$	1.60
Diluted	$	0.59	$	0.71		$	0.71		$	1.11		$	0.88		$	3.11		$	1.60
Dividends declared per share	$	0.20	$	0.20		$	0.20		$	0.20		$	-		$	0.80		$	0.60
Weighted average shares outstanding		29,471,304		29,420,256			29,389,525			29,327,432			29,274,915			29,402,845			29,243,773
Period end shares outstanding		29,500,542		29,438,402			29,411,731			29,379,575			29,295,052			29,500,542			29,295,052

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
December 31, 2021

	For the three months ended,															For the twelve months ended,
Profitability Ratios (annualized)	12/31/21			09/30/21			06/30/21			03/31/21			12/31/20			12/31/21			12/31/20

Return on average assets		0.97	%		1.24	%		1.30	%		2.07	%		1.62	%		1.38	%		0.78	%
Return on average assets, excluding restructuring		0.97	%		1.24	%		1.30	%		2.07	%		1.69	%		1.38	%		0.80	%
charges (1)
Return on average shareholders' equity		9.06	%		11.12	%		11.49	%		18.90	%		15.22	%		12.50	%		7.02	%
Return on average shareholders' equity, excluding		9.06	%		11.12	%		11.49	%		18.90	%		15.89	%		12.50	%		7.19	%
restructuring charges (1)
Return on average tangible common equity (1)		11.79	%		14.51	%		15.11	%		25.20	%		20.54	%		16.41	%		9.52	%
Return on average tangible common equity, excluding		11.79	%		14.51	%		15.11	%		25.20	%		21.44	%		16.41	%		9.76	%
restructuring charges (1)
Net interest margin (FTE)		2.86	%		3.11	%		3.15	%		3.12	%		3.02	%		3.06	%		3.16	%
Efficiency ratio (2)		64.3	%		61.8	%		60.7	%		57.0	%		63.8	%		60.9	%		60.6	%
Efficiency ratio, excluding restructuring charges (1) (2)		64.3	%		61.8	%		60.7	%		57.0	%		61.6	%		60.9	%		60.0	%

Capitalization Ratios

Dividends declared to net income (3)		33.9	%		28.1	%		28.2	%		18.0	%		0.0	%		25.6	%		37.4	%
Shareholders' equity to assets (Period End)		10.86	%		10.83	%		11.64	%		11.26	%		10.93	%		10.86	%		10.93	%
Tangible common equity to tangible assets (1)		8.56	%		8.55	%		9.15	%		8.77	%		8.40	%		8.56	%		8.40	%
Common equity book value per share	$	26.23		$	25.68		$	25.16		$	24.59		$	23.64		$	26.23		$	23.64
Tangible common equity book value per share (1)	$	20.14		$	19.75		$	19.22		$	18.64		$	17.66		$	20.14		$	17.66

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.13	%		9.53	%		9.64	%		9.45	%		9.08	%		9.13	%		9.08	%
Common equity tier 1 risk-based capital ratio		11.08	%		11.15	%		11.04	%		11.08	%		10.76	%		11.08	%		10.76	%
Tier 1 risk-based capital ratio		11.08	%		11.15	%		11.04	%		11.08	%		10.76	%		11.08	%		10.76	%
Total risk-based capital ratio		13.77	%		13.87	%		13.82	%		15.13	%		15.31	%		13.77	%		15.31	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial 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 Corporation changed the timing of future dividend declarations and payments.


Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Three Months Ended,
Tax Equivalent Basis	December 31, 2021							September 30, 2021
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	914,287		$	370	0.16	%	$	530,191		$	189	0.14	%
U.S. government obligations		6,999			37	2.10			6,999			36	2.04
Obligations of state and political subdivisions		2,334			19	3.23			2,992			24	3.18
Other debt and equity securities		460,255			1,845	1.59			385,289			1,516	1.56
Federal Home Loan Bank, Federal Reserve Bank and other stock		28,402			375	5.24			26,713			334	4.96
Total interest-earning deposits, investments and other interest-earning assets		1,412,277			2,646	0.74			952,184			2,099	0.87

Commercial, financial, and agricultural loans		869,471			7,022	3.20			880,986			7,412	3.34
Paycheck Protection Program loans		53,745			1,568	11.57			162,611			4,162	10.15
Real estate—commercial and construction loans		2,826,720			26,669	3.74			2,784,398			25,634	3.65
Real estate—residential loans		1,107,911			10,165	3.64			1,100,799			10,171	3.67
Loans to individuals		26,462			249	3.73			26,048			253	3.85
Municipal loans and leases		245,038			2,515	4.07			247,603			2,504	4.01
Lease financings		125,932			1,951	6.15			117,966			1,856	6.24
Gross loans and leases		5,255,279			50,139	3.79			5,320,411			51,992	3.88
Total interest-earning assets		6,667,556			52,785	3.14			6,272,595			54,091	3.42
Cash and due from banks		54,958							59,642
Allowance for credit losses, loans and leases		(71,020	)						(72,606	)
Premises and equipment, net		56,087							55,685
Operating lease right-of-use assets		31,048							31,998
Other assets		349,660							350,863
Total assets	$	7,088,289						$	6,698,177

Liabilities:
Interest-bearing checking deposits	$	939,478		$	493	0.21	%	$	857,098		$	537	0.25	%
Money market savings		1,616,890			968	0.24			1,382,832			922	0.26
Regular savings		997,814			253	0.10			998,568			281	0.11
Time deposits		487,434			1,370	1.12			496,702			1,490	1.19
Total time and interest-bearing deposits		4,041,616			3,084	0.30			3,735,200			3,230	0.34

Short-term borrowings		14,144			1	0.03			15,116			2	0.05
Long-term debt		95,000			325	1.36			95,000			324	1.35
Subordinated notes		98,833			1,327	5.33			98,754			1,328	5.34
Total borrowings		207,977			1,653	3.15			208,870			1,654	3.14
Total interest-bearing liabilities		4,249,593			4,737	0.44			3,944,070			4,884	0.49
Noninterest-bearing deposits		2,000,182							1,931,525
Operating lease liabilities		34,114							35,094
Accrued expenses and other liabilities		42,066							41,303
Total liabilities		6,325,955							5,951,992

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		298,508							297,482
Retained earnings and other equity		306,042							290,919
Total shareholders' equity		762,334							746,185
Total liabilities and shareholders' equity	$	7,088,289						$	6,698,177
Net interest income				$	48,048						$	49,207

Net interest spread						2.70							2.93
Effect of net interest-free funding sources						0.16							0.18
Net interest margin						2.86	%						3.11	%
Ratio of average interest-earning assets to average interest-bearing liabilities		156.90	%						159.04	%

Note 1: For rate calculation purposes, average loan and lease categories include 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 December 31, 2021 and September 30, 2021 have
been calculated using the Corporation's federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Three Months Ended December 31,
Tax Equivalent Basis				2021							2020
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	914,287		$	370	0.16	%	$	296,258		$	82	0.11	%
U.S. government obligations		6,999			37	2.10			6,998			36	2.05
Obligations of state and political subdivisions		2,334			19	3.23			14,269			129	3.60
Other debt and equity securities		460,255			1,845	1.59			348,244			1,237	1.41
Federal Home Loan Bank, Federal Reserve Bank and other stock		28,402			375	5.24			29,838			438	5.84
Total interest-earning deposits, investments and other interest-earning assets		1,412,277			2,646	0.74			695,607			1,922	1.10

Commercial, financial, and agricultural loans		869,471			7,022	3.20			824,374			7,366	3.55
Paycheck Protection Program loans		53,745			1,568	11.57			497,035			3,133	2.51
Real estate—commercial and construction loans		2,826,720			26,669	3.74			2,518,056			24,388	3.85
Real estate—residential loans		1,107,911			10,165	3.64			1,025,818			10,345	4.01
Loans to individuals		26,462			249	3.73			27,427			289	4.19
Municipal loans and leases		245,038			2,515	4.07			258,627			2,776	4.27
Lease financings		125,932			1,951	6.15			102,383			1,690	6.57
Gross loans and leases		5,255,279			50,139	3.79			5,253,720			49,987	3.79
Total interest-earning assets		6,667,556			52,785	3.14			5,949,327			51,909	3.47
Cash and due from banks		54,958							53,360
Allowance for credit losses, loans and leases		(71,020	)						(92,766	)
Premises and equipment, net		56,087							55,653
Operating lease right-of-use assets		31,048							34,272
Other assets		349,660							353,673
Total assets	$	7,088,289						$	6,353,519

Liabilities:
Interest-bearing checking deposits	$	939,478		$	493	0.21	%	$	838,323		$	537	0.25	%
Money market savings		1,616,890			968	0.24			1,213,585			898	0.29
Regular savings		997,814			253	0.10			905,918			341	0.15
Time deposits		487,434			1,370	1.12			582,782			2,034	1.39
Total time and interest-bearing deposits		4,041,616			3,084	0.30			3,540,608			3,810	0.43

Short-term borrowings		14,144			1	0.03			15,091			2	0.05
Long-term debt		95,000			325	1.36			169,623			611	1.43
Subordinated notes		98,833			1,327	5.33			193,244			2,390	4.92
Total borrowings		207,977			1,653	3.15			377,958			3,003	3.16
Total interest-bearing liabilities		4,249,593			4,737	0.44			3,918,566			6,813	0.69
Noninterest-bearing deposits		2,000,182							1,681,844
Operating lease liabilities		34,114							37,616
Accrued expenses and other liabilities		42,066							39,067
Total liabilities		6,325,955							5,677,093

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		298,508							296,810
Retained earnings and other equity		306,042							221,832
Total shareholders' equity		762,334							676,426
Total liabilities and shareholders' equity	$	7,088,289						$	6,353,519
Net interest income				$	48,048						$	45,096

Net interest spread						2.70							2.78
Effect of net interest-free funding sources						0.16							0.24
Net interest margin						2.86	%						3.02	%
Ratio of average interest-earning assets to average interest-bearing liabilities		156.90	%						151.82	%

Note 1: For rate calculation purposes, average loan and lease categories include 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 December 31, 2021 and 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 Twelve Months Ended December 31,
Tax Equivalent Basis					2021							2020
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	476,351		$	661	0.14	%	$	274,372		$	574	0.21	%
U.S. government obligations		6,999			144	2.06			7,132			145	2.03
Obligations of state and political subdivisions		5,702			206	3.61			23,065			825	3.58
Other debt and equity securities		393,762			5,992	1.52			371,814			7,697	2.07
Federal Home Loan Bank, Federal Reserve Bank and other stock		26,844			1,417	5.28			29,726			1,746	5.87
Total interest-earning deposits, investments and other interest-earning assets		909,658			8,420	0.93			706,109			10,987	1.56

Commercial, financial, and agricultural loans		840,133			28,142	3.35			817,489			30,657	3.75
Paycheck Protection Program loans		281,484			15,032	5.34			342,920			8,072	2.35
Real estate—commercial and construction loans		2,734,259			101,692	3.72			2,312,996			94,962	4.11
Real estate—residential loans		1,077,952			40,045	3.71			1,007,915			42,047	4.17
Loans to individuals		26,062			1,018	3.91			28,792			1,332	4.63
Municipal loans and leases		247,396			10,147	4.10			283,495			11,857	4.18
Lease financings		115,189			7,363	6.39			95,194			6,498	6.83
Gross loans and leases		5,322,475			203,439	3.82			4,888,801			195,425	4.00
Total interest-earning assets		6,232,133			211,859	3.40			5,594,910			206,412	3.69
Cash and due from banks		55,724							52,000
Allowance for credit losses, loans and leases		(74,943	)						(73,459	)
Premises and equipment, net		55,875							55,888
Operating lease right-of-use assets		32,758							34,277
Other assets		353,896							343,261
Total assets	$	6,655,443						$	6,006,877

Liabilities:
Interest-bearing checking deposits	$	850,713		$	2,007	0.24	%	$	692,049		$	2,173	0.31	%
Money market savings		1,366,762			3,574	0.26			1,113,039			5,551	0.50
Regular savings		983,752			1,114	0.11			874,366			2,057	0.24
Time deposits		498,638			6,178	1.24			572,103			9,835	1.72
Total time and interest-bearing deposits		3,699,865			12,873	0.35			3,251,557			19,616	0.60

Short-term borrowings		16,552			8	0.05			86,658			327	0.38
Long-term debt		96,562			1,318	1.36			189,410			2,879	1.52
Subordinated notes		137,896			7,149	5.18			134,949			6,762	5.01
Total borrowings		251,010			8,475	3.38			411,017			9,968	2.43
Total interest-bearing liabilities		3,950,875			21,348	0.54			3,662,574			29,584	0.81
Noninterest-bearing deposits		1,891,330							1,599,333
Operating lease liabilities		36,001							37,557
Accrued expenses and other liabilities		42,781							39,212
Total liabilities		5,920,987							5,338,676

Shareholders' Equity:
Common stock		157,784							157,784
Additional paid-in capital		297,189							296,023
Retained earnings and other equity		279,483							214,394
Total shareholders' equity		734,456							668,201
Total liabilities and shareholders' equity	$	6,655,443						$	6,006,877
Net interest income				$	190,511						$	176,828

Net interest spread						2.86							2.88
Effect of net interest-free funding sources						0.20							0.28
Net interest margin						3.06	%						3.16	%
Ratio of average interest-earning assets to average interest-bearing liabilities		157.74	%						152.76	%

Note 1: For rate calculation purposes, average loan and lease categories include 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 twelve months ended December 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 December 31, 2021
Industry Description	Total Outstanding Balance (excl PPP)		% of Commercial Loan Portfolio		$ Balance of Modified Loans (1)		Modified Loans as a % of Portfolio (1)
CRE - Retail		350,373	8.0	%	$	-	-	%
Animal Production		304,487	7.0			-	-
CRE - 1-4 Family Residential Investment		255,397	5.8			-	-
CRE - Office		235,078	5.4			-	-
CRE - Multi-family		222,488	5.1			-	-
Nursing and Residential Care Facilities		169,708	3.9			-	-
Hotels & Motels (Accommodation)		169,397	3.9			1,437	0.8
CRE - Industrial / Warehouse		169,329	3.9			-	-
Education		162,776	3.7			-	-
Specialty Trade Contractors		130,418	3.0			-	-
CRE - Mixed-Use - Residential		121,019	2.8			3,405	2.8
Merchant Wholesalers, Durable Goods		110,675	2.5			-	-
CRE - Medical Office		106,348	2.4			-	-
Homebuilding (tract developers, remodelers)		93,469	2.1			-	-
Real Estate Lenders, Secondary Market Financing		87,389	2.0			-	-
Crop Production		81,704	1.9			-	-
Motor Vehicle and Parts Dealers		78,292	1.8			-	-
Food Manufacturing		75,587	1.7			-	-
Wood Product Manufacturing		70,769	1.6			-	-
Rental and Leasing Services		69,048	1.6			-	-
Administrative and Support Services		66,529	1.5			-	-
Personal and Laundry Services		62,051	1.4			-	-
Food Services and Drinking Places		59,636	1.4			-	-
Fabricated Metal Product Manufacturing		58,924	1.3			-	-
Merchant Wholesalers, Nondurable Goods		57,114	1.3			-	-
Repair and Maintenance		53,820	1.2			-	-
Miniwarehouse / Self-Storage		51,987	1.2			-	-
Religious Organizations, Advocacy Groups		50,432	1.2			-	-
Industries with >$50 million in outstandings	$	3,524,244	80.7	%	$	4,842	0.1	%
Industries with <$50 million in outstandings	$	844,505	19.3	%	$	981	0.1	%
Total Commercial Loans	$	4,368,749	100.0	%	$	5,823	0.1	%


Consumer Loans and Lease Financings	Total Outstanding Balance				$ Balance of Modified Loans (1)		Modified Loans as a % of Portfolio (1)
Real Estate-Residential Secured for Personal Purpose		540,566				338	0.1	%
Real Estate-Home Equity Secured for Personal Purpose		158,909				-	-
Loans to Individuals		25,504				14	0.1
Lease Financings		184,541				33	-
Total - Consumer Loans and Lease Financings	$	909,520			$	385	-	%

Total	$	5,278,269			$	6,208	0.1	%

(1) Loan modifications referenced above were made 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 therefore were not classified as TDRs as of December 31, 2021.

Univest Financial Corporation
Non-GAAP Reconciliation
December 31, 2021

Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.

	As of or for the three months ended,															As of or for the twelve months ended,
	12/31/21			09/30/21			06/30/21			03/31/21			12/31/20			12/31/21			12/31/20
Restructuring charges (a)	$	-		$	-		$	-		$	-		$	1,439		$	-		$	1,439
Tax effect of restructuring charges		-			-			-			-			(302	)		-			(302	)
Restructuring charges, net of tax	$	-		$	-		$	-		$	-		$	1,137		$	-		$	1,137

Shareholders' equity	$	773,794		$	756,023		$	739,998		$	722,455		$	692,472		$	773,794		$	692,472
Goodwill		(175,510	)		(172,559	)		(172,559	)		(172,559	)		(172,559	)		(175,510	)		(172,559	)
Other intangibles (b)		(4,210	)		(1,922	)		(2,073	)		(2,326	)		(2,580	)		(4,210	)		(2,580	)
Tangible common equity	$	594,074		$	581,542		$	565,366		$	547,570		$	517,333		$	594,074		$	517,333

Total assets	$	7,122,421		$	6,979,852		$	6,356,305		$	6,416,665		$	6,336,496		$	7,122,421		$	6,336,496
Goodwill		(175,510	)		(172,559	)		(172,559	)		(172,559	)		(172,559	)		(175,510	)		(172,559	)
Other intangibles (b)		(4,210	)		(1,922	)		(2,073	)		(2,326	)		(2,580	)		(4,210	)		(2,580	)
Tangible assets	$	6,942,701		$	6,805,371		$	6,181,673		$	6,241,780		$	6,161,357		$	6,942,701		$	6,161,357

Average shareholders' equity	$	762,334		$	746,185		$	728,750		$	699,736		$	676,426		$	734,456		$	668,201
Average goodwill		(173,553	)		(172,559	)		(172,559	)		(172,559	)		(172,559	)		(172,810	)		(172,559	)
Average other intangibles (b)		(2,696	)		(1,983	)		(2,209	)		(2,464	)		(2,734	)		(2,338	)		(3,181	)
Average tangible common equity	$	586,085		$	571,643		$	553,982		$	524,713		$	501,133		$	559,308		$	492,461

Net income before taxes	$	21,990		$	26,173		$	25,760		$	40,407		$	31,647		$	114,330		$	56,897
Provision for credit losses		1,392			(182	)		(59	)		(11,283	)		(8,721	)		(10,132	)		40,794
Pre-tax pre-provision income	$	23,382		$	25,991		$	25,701		$	29,124		$	22,926		$	104,198		$	97,691

Loans and leases held for investment, gross	$	5,310,017		$	5,252,045		$	5,327,313		$	5,415,006		$	5,306,841		$	5,310,017		$	5,306,841
Paycheck Protection Program ("PPP") loans		(31,748	)		(85,601	)		(252,849	)		(528,452	)		(483,773	)		(31,748	)		(483,773	)
Gross loans and leases excluding PPP loans	$	5,278,269		$	5,166,444		$	5,074,464		$	4,886,554		$	4,823,068		$	5,278,269		$	4,823,068

Allowance for credit losses, loans and leases	$	71,924		$	70,146		$	71,355		$	71,497		$	83,044		$	71,924		$	83,044
Gross loans and leases excluding PPP loans		5,278,269			5,166,444			5,074,464			4,886,554			4,823,068			5,278,269			4,823,068
Allowance for credit losses, loans and leases as a percentage of gross loans and leases excluding PPP loans		1.36	%		1.36	%		1.41	%		1.46	%		1.72	%		1.36	%		1.72	%

(a) Associated with financial center optimization plan
(b) Amount does not include mortgage servicing rights

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

Univest Financial Corporation Reports Fourth Quarter and 2021 Results