UNIVEST FINANCIAL CorpUVSP
UNIVEST FINANCIAL Corp Debt Disclosure
Borrowings
The following is a summary of borrowings by type. Short-term borrowings consist of overnight borrowings and term borrowings with an original maturity of one year or less.
| Balance at End of Year | Weighted Average Interest Rate | Maximum Amount Outstanding at Month End During the Year | Average Amount Outstanding During the Year | Weighted Average Interest Rate During the Year | |||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||||||||
| Federal funds purchased | $ | — | — | % | $ | — | $ | 291 | 4.57 | % | |||||||||||||||||||
| Customer repurchase agreements | 24,411 | 0.05 | 24,411 | 10,821 | 0.05 | ||||||||||||||||||||||||
| Long-term debt: | |||||||||||||||||||||||||||||
| FHLB advances | $ | 200,000 | 4.20 | % | $ | 200,000 | $ | 204,452 | 4.29 | % | |||||||||||||||||||
| Subordinated notes | 98,867 | 6.98 | 149,581 | 139,584 | 6.79 | ||||||||||||||||||||||||
| 2024 | |||||||||||||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||||||||
| FHLB borrowings | $ | — | — | % | $ | 16,000 | $ | 201 | 5.79 | % | |||||||||||||||||||
| Federal funds purchased | — | — | 60,000 | 4,126 | 5.63 | ||||||||||||||||||||||||
| Customer repurchase agreements | 11,181 | 0.05 | 14,101 | 9,376 | 0.05 | ||||||||||||||||||||||||
| Long-term debt: | |||||||||||||||||||||||||||||
| FHLB advances | $ | 225,000 | 4.35 | % | $ | 310,000 | $ | 253,730 | 4.31 | % | |||||||||||||||||||
| Security repurchase agreements | — | — | — | 3 | — | ||||||||||||||||||||||||
| Subordinated notes | 149,261 | 6.08 | 149,261 | 149,007 | 6.12 | ||||||||||||||||||||||||
The Corporation, through the Bank, has a credit facility with the FHLB that had a maximum borrowing capacity of approximately $3.4 billion and $3.3 billion at December 31, 2025 and 2024, respectively. All borrowings and letters of credit from the FHLB are secured by qualifying commercial real estate and residential mortgage loans, investments and other assets. At December 31, 2025 and 2024, the Bank had outstanding short-term letters of credit with the FHLB totaling $1.4 billion and $1.3 billion, respectively, which were utilized to collateralize public funds deposits and other secured deposits. The maximum borrowing capacity with the FHLB changes as a function of the Bank's qualifying collateral assets as well as the FHLB's internal credit rating of the Bank. The available borrowing capacity from the FHLB totaled $1.9 billion and $1.7 billion at December 31, 2025 and 2024, respectively.
The Corporation, through the Bank, holds investment securities at the Federal Reserve Bank of Philadelphia to provide access to the Discount Window Lending program. The Bank participates in the FRB Borrower in Custody program, which provides additional committed borrowing capacity for the Bank through the Discount Window Lending program based upon select loans pledged to the FRB. The total borrowing capacity based upon the qualifying pledged commercial loans and held investment securities was $380.2 million and $397.2 million at December 31, 2025 and 2024, respectively. At December 31, 2025 and 2024, the Corporation had no outstanding borrowings under the Discount Window Lending program.
The Corporation has a $10.0 million committed line of credit with a correspondent bank. At December 31, 2025 and 2024, the Corporation had no outstanding borrowings under this line.
The Corporation and the Bank had $3.8 billion and $3.7 billion of committed borrowing capacity at December 31, 2025 and 2024, respectively, of which $2.3 billion and $2.1 billion was available as of December 31, 2025 and 2024, respectively. The Corporation, through the Bank, also maintained uncommitted funding sources from correspondent banks of $457.0 million and $468.0 million at December 31, 2025 and 2024, respectively. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.
Long-term advances with the FHLB of Pittsburgh mature as follows:
| (Dollars in thousands) | As of December 31, 2025 | Weighted Average Rate | |||||||||
| 2026 | $ | 100,000 | 4.29 | % | |||||||
| 2027 | 25,000 | 3.99 | |||||||||
| 2028 | 40,000 | 4.33 | |||||||||
| 2029 | 25,000 | 3.91 | |||||||||
| 2030 | 10,000 | 3.94 | |||||||||
| Thereafter | — | — | |||||||||
| Total | $ | 200,000 | 4.20 | % | |||||||
Subordinated Notes
On November 15, 2022, the Corporation issued $50.0 million aggregate principal amount of 7.25% fixed-to-floating rate subordinated notes due 2032 (the "2022 Notes") in an underwritten public offering. The net proceeds of the offering approximated $49.0 million. The 2022 Notes bear interest at a fixed rate of 7.25%, payable semi-annually in arrears for a five-year period. The last interest payment date for the fixed rate period will be November 15, 2027. From and including November 15, 2027 to, but excluding, November 15, 2032 or the date of earlier redemption, the Notes will bear interest at an annual floating rate of interest equivalent to the Benchmark rate, which is expected to be the Three-Month Term SOFR, plus 309.8 basis points, payable quarterly in arrears, commencing on February 15, 2028. Notwithstanding the foregoing, if the Benchmark rate is less than zero, the Benchmark rate will be deemed to be zero. The Corporation may redeem the 2022 Notes (i) in whole or in part beginning with the interest payment date of November 15, 2027, and on any interest payment date thereafter or (ii) in whole, but not in part, at any time within 90 days upon the occurrence of certain tax, regulatory capital and Investment Company Act of 1940 events. The redemption price for any redemption is 100% of the principal amount of the subordinated notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any redemption of the subordinated notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations.
On November 6, 2025, the Corporation issued $50.0 million aggregate principal amount of 6.00% fixed-to-floating rate subordinated notes due 2035 (the "2025 Notes") in a private placement transaction. Subsequently, the Corporation has taken certain actions to provide for the exchange of the 2025 Notes for subordinated notes that are registered under the Securities Act and have substantially the same terms as the 2025 Notes. The net proceeds of the offering approximated $49.2 million. The 2025 Notes bear interest at a fixed rate of 6.00%, payable semi-annually in arrears for a five-year period. The last interest payment date for the fixed rate period will be May 15, 2030. From and including November 15, 2030 to, but excluding, November 15, 2035 or the date of earlier redemption, the Notes will bear interest at an annual floating rate of interest equivalent to the Benchmark rate, which is expected to be the Three-Month Term SOFR, plus 261.5 basis points, payable quarterly in arrears, commencing on February 15, 2031. Notwithstanding the foregoing, if the Benchmark rate is less than zero, the Benchmark rate will be deemed to be zero. The Corporation may redeem the 2025 Notes (i) in whole or in part beginning with the interest payment date of November 15, 2030, and on any interest payment date thereafter or (ii) in whole, but not in part, at any time upon certain other events. The redemption price for any redemption is 100% of the principal amount of the subordinated notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any redemption of the subordinated notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations.
Subordinated notes qualify as Tier 2 capital for regulatory capital purposes for the first five years of the notes' terms. The Tier 2 capital benefit is phased out at 20% per year after the fifth year (from years six to ten) and have no benefit in the tenth year.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.