Univest Financial : Q1 2024 Investor Presentation

Investor Presentation

June 10, 2024

Safe Harbor Statement

Cautionary Note Regarding Forward-Looking Statements

The information contained in this report may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe," "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include, but are not limited to: statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality, growth and composition of our loan and investment portfolios; and estimates of our risks and future credit provisions, costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Certain of these risks, uncertainties and assumptions are set forth below as well as the risk factors described in Item 1A. "Risk Factors":

• Operating, legal and regulatory risks;
• Economic, political and competitive forces;
• General economic conditions, either nationally or in our market areas, that are worse than expected included as a result of employment levels and labor shortages, and the effect of inflation, a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;
• Legislative, regulatory and accounting changes, including increased assessments by the Federal Deposit Insurance Corporation;
• Monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• Demand for our financial products and services in our market area;
• Major catastrophes such as earthquakes, floods or other natural or human disasters and infectious disease outbreaks, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies;
• The effects of a government shutdown;
• Inflation or volatility in interest rates that reduce our margins and yields, the fair value of financial instruments or our level of loan originations or prepayments on loans we have made and make or the sale of loans or other assets;
• Fluctuations in real estate values in our market area;
• A failure to maintain adequate levels of capital and liquidity to support our operations;
• The composition and credit quality of our loan and investment portfolios;
• Changes in the level and direction of loan delinquencies, classified and criticized loans and charge-offs and changes in estimates of the adequacy of the allowance for credit losses;
• Changes in the economic and other assumptions utilized to calculate the allowance for credit losses;
• Our ability to access cost-effective funding;
• Changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
• Our ability to implement our business strategies;
• Our ability to manage market risk, credit risk, interest rate risk and operational risk;
• Timing and amount of revenue and expenditures;
• Adverse changes in the securities markets;
• The impact of any military conflict, terrorist act or other geopolitical acts;

2

Safe Harbor Statement (cont'd)

Cautionary Note Regarding Forward-Looking Statements

• Our ability to enter new markets successfully and capitalize on growth opportunities;
• Competition for loans, deposits and employees;
• System failures or cyber-security breaches of our information technology infrastructure and those of our third-party service providers;
• The failure to maintain current technologies and/or to successfully implement future information technology enhancements;
• Our ability to retain key employees;
• Other risks and uncertainties, including those occurring in the U.S. and international financial systems; and
• The risk that our analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These forward-looking statements speak only as of the date of the report. Univest Financial Corporation (the Corporation) expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Corporation's expectations with regard to any change in events, conditions or circumstances on which any such statement is based.

3

Non-GAAP Financial Measures

This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These non-GAAP measures include tangible common equity, core net interest income excluding PPP, core noninterest expense excluding purchase accounting ("PA"), core tax equivalent revenue, core pre-tax pre- provision income less net charge-offs("PTPP-NCO"), average assets excluding PPP, and average interest earning assets excluding excess liquidity and PPP. Management uses these "non-GAAP" measures in its analysis of the Corporation's performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, the Corporation believes this information is utilized by regulators and market analysts to evaluate a company's financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the Appendix to this presentation.

4

COMPANY OVERVIEW

Univest Company Overview

• Headquartered in Souderton, Pennsylvania (Montgomery County)
• Bank founded in 1876, holding company formed in 1973
• Engaged in financial services business, providing full range of banking, insurance and wealth management services
  ◦ Comprehensive financial solutions delivered locally
• Experienced management team with proven performance track record
• Primarily serving thirteen counties in the Southeastern and Central regions of Pennsylvania, six counties in Western Pennsylvania, three counties in Southern New Jersey and four counties in Maryland
• Operating leverage and scale with $7.7 billion of assets, $5.0 billion of assets under management and supervision and agent for $213 million of underwritten insurance premiums as of 3/31/24

6

UVSP by the Numbers

7th Largest Diversified Financial Institution Headquartered in PA

4.3%1 Core PTPP-NCO2<--5-yearCAGR-->7.6% TBV/Share

Conservatively Managed Organic	~25% to ~30%
Growth Engine	Fee Income Business
	Revenue/Total

10.1% 5-yr CAGR	9.9% 5-yr CAGR	1st	4th
Organic Loan Growth	Organic Deposit	Largest Bank-owned	Largest Bank-owned
w/ Exceptional Asset	Growth	Insurance Agency in	Wealth Management
Quality		PA	business in PA

1. 5-yearCAGR is calculated by comparing 2019 Core PTPP-NCO to annualized 2024 Core PTPP-NCO.
2. This is a non-GAAP financial measure. Refer to the Appendix for reconciliation.

7

Deposits and Liquidity Highlights (As of March 31, 2024)

Committed borrowing capacity of $3.4 billion ($2.1 billion available1)

	Brokered deposits
Uncommitted funding	totaled $479 million or
6.2% of total assets.
sources of $334.0
Additional available
million ($334.0 million
liquidity from future
unused)
brokered deposits up
	to $1.1 billion2

Estimated unprotected deposits totaled $1.4 billion3 or 22.3% of total deposits

Noninterest-bearing deposits represent 21.9% of total deposits

Prudently managed investment portfolio:

~ 6% of total assets

Unrealized loss ~ 7%4 of equity5

1. Reflects usage of $250.0 million of FHLB advances and $1.062 billion of letters of credit used to collateralize public fund deposits
2. Brokered Deposit policy limit allows for a maximum of 20% of assets
3. Excludes insured, collateralized and internal accounts
4. Includes AFS and HTM investments
5. Excludes AOCI impact of unrealized losses on AFS investments

8

Deposit and Liquidity Update (As of May 31, 2024)

Deposits

Dollars in thousands		3/31/24	%		5/31/24	%		Change	%
Noninterest-Bearing Deposits	$	1,401,806	21.9%	$	1,390,582	21.8%	$	(11,224)	(0.8)%
Demand Deposits		2,833,521	44.2%		2,789,215	43.7%		(44,306)	(1.6)%
Savings Deposits		777,637	12.1%		763,041	12.0%		(14,596)	(1.9)%
Time Deposits		1,392,394	21.7%		1,439,638	22.6%		47,244	3.4%
Total Deposits	$	6,405,358		$	6,382,476		$	(22,882)	(0.4)%
Consumer	$	2,449,566	38.2%	$	2,469,410	38.7%	$	19,844	0.8%
Commercial		2,281,354	35.6%		2,300,290	36.0%		18,936	0.8%
Public Funds		1,195,122	18.7%		1,169,756	18.3%		(25,366)	(2.1)%
Brokered		479,316	7.5%		443,020	6.9%		(36,296)	(7.6)%
Total Deposits	$	6,405,358		$	6,382,476		$	(22,882)	(0.4)%
Total estimated unprotected deposits 1	$	1,430,567		$	1,457,000		$	26,433	1.8%
% of Total deposits		22.3 %			22.8 %

• Excludes insured, collateralized and internal accounts.

Liquidity

		3/31/24				5/31/24				Change
Dollars in millions		Balance		Unused			Balance		Unused			Balance		Unused
FHLB - Pittsburgh 1	$	250.0	$	1,919.7	$	250.0	$	1,960.0	$	-	$	40.3
Federal Fund Lines (9 Lenders) 2		-		334.0					459.0			-		125.0
FRB - Philadelphia		-		176.4					314.0			-		137.6
Univest Financial Corp LOC 3		-		10.0					10.0			-		-
Total	$	250.0	$	2,440.1	$	250.0	$	2,743.0	$	-	$	302.9
Total Broker Deposit Capacity Per Policy 4			$	1,549.3					1,546.0					(3.3)
Available Broker Deposit Capacity			$	1,070.0					1,103.0					33.0

• Balances do not include letters of credit used to collateralize public fund deposits ($1.062 billion at March 31, 2024 and $1.031 billion at May 31, 2024)
  2 Uncommitted lines ranging from $15 million to $79 million
  3 Holding Company Line of Credit with 3rd Party Financial Institution 4 20% of Total Assets

9

Executive Leadership Team

Name	Age	Tenure (yrs)	Title
with Univest
Jeffrey M. Schweitzer	51	16	Chairman, President, and CEO, Univest Financial Corporation
Michael S. Keim	56	15	Chief Operating Officer, Univest Financial Corporation and President, Univest Bank and Trust Co.
Brian J. Richardson	41	7	Chief Financial Officer
Megan D. Santana	49	8	Chief Risk Officer and General Counsel
Patrick C. McCormick	47	2	Chief Commercial Banking Officer
John T. Haurin	59	7	President, Commercial Banking, East Penn and NJ Division
Thomas J. Jordan	56	7	President, Commercial Banking, Central PA Division
Christopher M. Trombetta	54	2	President, Commercial Banking, Western PA Division
Matthew L. Cohen	41	2	President, Commercial Banking, Maryland Division
Ronald R. Flaherty	57	15	President, Univest Insurance, LLC
David W. Geibel	51	10	President, Girard (Univest Wealth Management Division)
William J. Clark	60	18	President, Univest Capital, Inc.
Brian E. Grzebin	52	6	President, Mortgage Banking Division
Eric W. Conner	53	18	Chief Information Officer
M. Theresa Fosko	54	20	Director of Human Resources
Briana Dona	43	23	Managing Director of Innovation
Joseph A. Pensabene	57	1	Managing Director of Operations
Neil D. McHugh	43	0	Managing Director of Deposit Strategy & Programs (joined Univest September 2023)
Eleni S. Monios	59	1	Chief Credit Officer
			10