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A regional bank offering a full suite of financial services, much like a smaller-scale PNC Bank or M&T Bank.

Think of it as a community-focused bank providing commercial and retail banking, wealth management, and insurance, similar to how a more localized U.S. Bank or Truist operates.

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• Commercial Banking: Provides a range of financial solutions for businesses, including commercial loans, lines of credit, treasury management services, and business deposit accounts.
• Consumer Banking: Offers personal financial products such as checking and savings accounts, mortgages, home equity loans, and various consumer lending options.
• Wealth Management: Delivers comprehensive financial planning, investment management, trust and estate planning, and retirement solutions for individuals and families.
• Insurance Services: Offers a broad spectrum of insurance solutions, including commercial property and casualty, personal lines, and employee benefits.

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Major Customers of Univest Financial (UVSP)

Univest Financial (UVSP) is a bank holding company. As such, it does not have "major customers" in the traditional sense of a supplier selling specific products to a few large corporate entities. Instead, Univest Financial provides a wide range of financial services and products to a diverse base of clients, primarily individuals and businesses, within its operating regions.

Therefore, consistent with companies that sell primarily to individuals and a broad range of businesses, its customer base can be categorized as follows:

• Individuals (Consumer Banking): This category includes everyday consumers and families who utilize Univest's personal banking services. These services encompass checking and savings accounts, mortgages, home equity loans, personal loans, auto loans, and credit cards.
• Businesses (Commercial Banking): This category comprises small to medium-sized businesses, as well as larger commercial enterprises. Univest provides a comprehensive suite of commercial banking services, including business checking and savings accounts, commercial loans, lines of credit, treasury management services, merchant services, small business administration (SBA) loans, and employee benefits solutions.
• Wealth Management Clients: This category serves individuals, families, and businesses seeking investment management, financial planning, trust services, retirement planning, and estate planning. Clients range from those looking for basic investment advice to high-net-worth individuals and institutional clients requiring comprehensive wealth management solutions.

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• Q2 Holdings Inc. (NYSE: QTWO)

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The key risks for Univest Financial (UVSP) include credit risk and loan concentration, a competitive deposit environment coupled with interest rate sensitivity, and general economic conditions.

1. Credit Risk and Loan Concentration: Univest Financial faces heightened credit risk, as evidenced by a recent $7.3 million charge-off linked to a credit with suspected fraud, with an additional $16.4 million placed on nonaccrual. Furthermore, the company's credit quality could be compromised by a significant concentration of loans within specific industries. This asset portfolio mix increases the potential for substantial credit losses if those particular sectors or geographic regions experience downturns.
2. Competitive Deposit Environment and Interest Rate Sensitivity: The company operates in an intensely competitive environment for deposits. This competition, alongside an elevated interest rate environment, has negatively impacted net gains on mortgage banking and overall net loan growth due to increased payoff activity.
3. General Economic Conditions: Univest Financial is susceptible to adverse general economic conditions, both nationally and in its operating markets. Risks include economic slowdowns or potential recessions, which can be exacerbated by factors such as employment levels, labor shortages, and inflation. These broader economic challenges can affect the demand for loans and the financial health of borrowers.

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The rapid growth and increasing sophistication of digital-only banks and fintech platforms, which leverage advanced technology to offer banking services (checking, savings, lending, payments) entirely online or via mobile apps, often with lower fees, higher interest rates, and a more seamless user experience. This challenges Univest's branch-centric model and its ability to attract and retain customers, particularly younger, digitally native demographics, by offering a more convenient and often more cost-effective alternative, regardless of geographic proximity. This mirrors the disruptive impact of services like Netflix on Blockbuster by offering a fundamentally different and often preferred mode of service delivery.

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Univest Financial (NASDAQ: UVSP) offers a comprehensive suite of financial solutions across several key areas primarily within the Mid-Atlantic Region, specifically in Pennsylvania, New Jersey, and Maryland. Their main products and services include banking (personal and commercial), wealth management, and insurance.

The addressable markets for Univest Financial's main products and services in Pennsylvania are as follows:

• Commercial Banking: The market size of the Commercial Banking industry in Pennsylvania is estimated at $43.2 billion in 2025. This includes receiving deposits from customers and issuing consumer, commercial, and industrial loans. The market size for commercial lending across the broader U.S. was valued at $8,823.53 billion in 2020 and is projected to reach $29,379.83 billion by 2030.
• Wealth Management: While a specific overall market size for wealth management in Pennsylvania is not readily available, major firms in Pennsylvania manage significant assets. For example, Clark Capital Management Group Inc. manages approximately $21.9 billion in assets, and PNC Investments manages around $20.2 billion in assets in Pennsylvania. The Vanguard Group, based in Pennsylvania, managed approximately $6.2 trillion in global assets as of March 2021. The average annual pay for a Wealth Management Advisor in Pennsylvania is $103,327 as of November 2025, indicating an active professional market within the state.
• Insurance: The market size of the Health & Medical Insurance industry in Pennsylvania is projected to be $108.9 billion in 2025. Univest also offers commercial property and casualty insurance and personal insurance lines.

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Univest Financial (UVSP) is expected to drive future revenue growth over the next two to three years through several key areas:

1. Net Interest Income (NII) Growth: Univest Financial anticipates a 12% to 14% increase in net interest income for 2025 compared to 2024. This growth is primarily driven by higher average balances on loans and cash equivalents, along with improved loan yields.
2. Growth in Non-Interest Income: The company projects non-interest income to grow by approximately 1% to 3% for 2025. This segment saw an 8.8% increase in the third quarter of 2025, bolstered by higher bank-owned life insurance (BOLI) income, including death benefit claims, and an increase in service fee income. Contributions from Univest Insurance, which experienced solid organic growth, and the Univest Wealth Division (Girard), which reported a notable revenue increase and strong new client acquisition, also support this driver.
3. Increase in Commercial Loan Commitments and Production: While overall loan outstandings were projected to be relatively flat for the full year 2025, commercial loan commitments significantly increased to $808 million in the third quarter of 2025, up from $659 million in the prior year. Management has also indicated a healthy loan pipeline, suggesting future revenue generation from new lending activities.
4. Deposit Growth: Univest has demonstrated robust deposit growth, with a substantial increase largely fueled by seasonal public funds. Total deposits rose by 9.7% from the previous quarter due to both seasonal and commercial deposit growth, providing essential liquidity to fund loan expansion and support net interest income.
5. Strategic Expansion and Diversification within Core Markets and Lines of Business: The company is focused on strategic growth within its core markets, which include Pennsylvania, New Jersey, and Maryland. Univest leverages its diversified lines of business, encompassing banking, insurance, investment, and equipment financing solutions, to deepen customer relationships and expand its offerings. Successful segments like their SBA lending team, which had a record year in gain on sale fee income, further contribute to this diversified revenue approach.

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Share Repurchases

• Univest Financial has an authorized share repurchase plan, originally announced on October 23, 2013, which permitted the company to repurchase up to 800,000 shares, representing approximately 5% of shares outstanding at that time.
• As of September 30, 2025, Univest had repurchased a total of 3,049,373 shares for $72.87 million under the aforementioned buyback plan.
• During the third quarter of 2025 (July 1 to September 30, 2025), the company repurchased 255,010 shares at a cost of $7.69 million.

Outbound Investments

• On December 1, 2021, Univest Financial Corporation expanded its insurance subsidiary, Univest Insurance, LLC, through the acquisition of the Paul I. Sheaffer Insurance Agency.
• This acquisition of the Paul I. Sheaffer Insurance Agency marked Univest's ninth insurance acquisition since the company began expanding its financial solutions beyond traditional banking in 1999.

Capital Expenditures

• In the most recent trailing twelve months, Univest Financial's capital expenditures were approximately -$4.55 million.
• Capital expenditures are primarily focused on acquiring, improving, or maintaining long-term assets, which can include new equipment, machinery, buildings, software, or intangible assets.