UNIVEST FINANCIAL CorpUVSP
UNIVEST FINANCIAL Corp Segments Disclosure
Segment Reporting
At December 31, 2025, the Corporation had three reportable business segments, Banking, Wealth Management and Insurance, which were determined by the Chief Executive Officer ("CEO"), who is the designated Chief Operating Decision Maker ("CODM") of the Corporation. The CEO determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. The CEO is responsible for allocating resources and assessing the performance of the Corporation based on each reportable business segment, and regularly receives information from the reportable segment managers. These segments represent how the Corporation strategically operates and has positioned itself in the marketplace. The parent holding company and intercompany eliminations are included in the "Other" segment. The accounting policies of the reportable segments are the same as those described in Note 1. Summary of Significant Accounting Policies.
Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated as follows:
| ● | The Banking segment provides financial services to individuals, businesses, municipalities and non-profit organizations. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. | ||||
| ● | The Wealth Management segment offers investment advisory, financial planning and trust and brokerage services. The Wealth Management segment serves a diverse client base of private families and individuals, municipal pension plans, retirement plans, trusts and guardianships. | ||||
| ● | The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resources consulting. | ||||
Each reportable segment manager receives a monthly management report containing current-month and year-to-date actual and budgeted income statement data, which reflects the segment's interest income, interest expense, provision for credit losses, noninterest income, noninterest expense, and income before taxes. Income before taxes is the most important measurement used by the segment managers, Chief Operating Officer, Chief Financial Officer and CEO to assess performance of the segments and the Corporation as a whole.
The monthly management reports and results are regularly reviewed by the segment managers and the CEO. In addition, the CEO regularly meets with the segment managers to discuss operating results, forecasts and business issues. The CEO uses total revenue and noninterest expense for each segment predominantly in the annual budget and forecasting process. The CEO considers budget-to-actual variances on a quarterly basis for both measures when making decisions about the allocation of operating and capital resources to each segment. Accordingly, significant operating decisions are based upon analysis of each of these segments.
Information About Significant Segment Expenses
The significant segment expenses are regularly provided to the CEO and included in the reported measure of the segment's profit and loss. The Corporation considered relevant qualitative and quantitative factors when determining whether these segment expense categories and amounts were significant.
The following tables provide reportable segment-specific information, as well as the Other Segment, and reconciliations to consolidated financial information for the years ended December 31, 2025, 2024 and 2023.
| (Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Interest income | $ | 430,306 | $ | 62 | $ | — | $ | 118 | $ | 430,486 | |||||||||||||||||||
| Interest expense | 180,818 | — | — | 9,473 | 190,291 | ||||||||||||||||||||||||
| Net interest income (expense) | 249,488 | 62 | — | (9,355) | 240,195 | ||||||||||||||||||||||||
| Noninterest income | 33,317 | 31,920 | 22,484 | 140 | 87,861 | ||||||||||||||||||||||||
| Total revenue | 282,805 | 31,982 | 22,484 | (9,215) | 328,056 | ||||||||||||||||||||||||
| Provision for credit losses | 11,667 | — | — | — | 11,667 | ||||||||||||||||||||||||
Less: (1) | |||||||||||||||||||||||||||||
| Salaries, benefits and commissions | 74,773 | 17,665 | 14,493 | 20,092 | 127,023 | ||||||||||||||||||||||||
| Net occupancy | 8,925 | 497 | 630 | 1,097 | 11,149 | ||||||||||||||||||||||||
| Equipment | 3,703 | 42 | 94 | 454 | 4,293 | ||||||||||||||||||||||||
| Data processing | 10,132 | 1,499 | 576 | 5,218 | 17,425 | ||||||||||||||||||||||||
| Professional fees | 2,458 | 1,061 | 42 | 3,656 | 7,217 | ||||||||||||||||||||||||
| Marketing and advertising | 882 | 152 | 52 | 567 | 1,653 | ||||||||||||||||||||||||
| Deposit insurance premiums | 4,526 | — | — | — | 4,526 | ||||||||||||||||||||||||
| Intangible expense | 143 | — | 326 | — | 469 | ||||||||||||||||||||||||
Other segment items (2) | 23,546 | 2,237 | 284 | 3,217 | 29,284 | ||||||||||||||||||||||||
Intersegment expense (revenue) (3) | 26,495 | 548 | 443 | (27,486) | — | ||||||||||||||||||||||||
| Income (expense) before income taxes | $ | 115,555 | $ | 8,281 | $ | 5,544 | $ | (16,030) | $ | 113,350 | |||||||||||||||||||
| Income tax expense (benefit) | 23,311 | 1,674 | 1,129 | (3,521) | 22,593 | ||||||||||||||||||||||||
| Net income (loss) | $ | 92,244 | $ | 6,607 | $ | 4,415 | $ | (12,509) | $ | 90,757 | |||||||||||||||||||
| Net capital expenditures | $ | 3,133 | $ | 18 | $ | 44 | $ | 979 | $ | 4,174 | |||||||||||||||||||
| (Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Interest income | $ | 412,264 | $ | 73 | $ | — | $ | 18 | $ | 412,355 | |||||||||||||||||||
| Interest expense | 192,060 | — | — | 9,125 | 201,185 | ||||||||||||||||||||||||
| Net interest income (expense) | 220,204 | 73 | — | (9,107) | 211,170 | ||||||||||||||||||||||||
| Noninterest income | 35,480 | 29,909 | 22,471 | 195 | 88,055 | ||||||||||||||||||||||||
| Total revenue | 255,684 | 29,982 | 22,471 | (8,912) | 299,225 | ||||||||||||||||||||||||
| Provision for credit losses | 5,933 | — | — | — | 5,933 | ||||||||||||||||||||||||
Less: (1) | |||||||||||||||||||||||||||||
| Salaries, benefits and commissions | 74,561 | 17,912 | 13,578 | 17,694 | 123,745 | ||||||||||||||||||||||||
| Net occupancy | 9,446 | 316 | 614 | 649 | 11,025 | ||||||||||||||||||||||||
| Equipment | 4,039 | 40 | 96 | 278 | 4,453 | ||||||||||||||||||||||||
| Data processing | 12,866 | 1,417 | 544 | 2,129 | 16,956 | ||||||||||||||||||||||||
| Professional fees | 3,278 | 616 | 57 | 2,451 | 6,402 | ||||||||||||||||||||||||
| Marketing and advertising | 834 | 158 | 53 | 1,128 | 2,173 | ||||||||||||||||||||||||
| Deposit insurance premiums | 4,432 | — | — | — | 4,432 | ||||||||||||||||||||||||
| Intangible expenses | 267 | — | 427 | — | 694 | ||||||||||||||||||||||||
Other segment items (2) | 20,922 | 2,594 | 661 | 3,935 | 28,112 | ||||||||||||||||||||||||
Intersegment expense (revenue) (3) | 22,984 | 846 | 711 | (24,541) | — | ||||||||||||||||||||||||
| Income (expense) before income taxes | $ | 96,122 | $ | 6,083 | $ | 5,730 | $ | (12,635) | $ | 95,300 | |||||||||||||||||||
| Income tax expense (benefit) | 19,467 | 1,372 | 1,264 | (2,734) | 19,369 | ||||||||||||||||||||||||
| Net income (loss) | $ | 76,655 | $ | 4,711 | $ | 4,466 | $ | (9,901) | $ | 75,931 | |||||||||||||||||||
| Net capital expenditures | $ | 449 | $ | 14 | $ | 75 | $ | 199 | $ | 737 | |||||||||||||||||||
| (Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Interest income | $ | 371,625 | $ | 67 | $ | — | $ | 38 | $ | 371,730 | |||||||||||||||||||
| Interest expense | 142,608 | — | — | 9,125 | 151,733 | ||||||||||||||||||||||||
| Net interest income (expense) | 229,017 | 67 | — | (9,087) | 219,997 | ||||||||||||||||||||||||
| Noninterest income | 28,414 | 26,804 | 21,501 | 105 | 76,824 | ||||||||||||||||||||||||
| Total revenue | 257,431 | 26,871 | 21,501 | (8,982) | 296,821 | ||||||||||||||||||||||||
| Provision for credit losses | 10,770 | — | — | — | 10,770 | ||||||||||||||||||||||||
Less: (1) | |||||||||||||||||||||||||||||
| Salaries, benefits and commissions | 74,933 | 15,790 | 13,283 | 16,182 | 120,188 | ||||||||||||||||||||||||
| Net occupancy | 9,219 | 278 | 599 | 590 | 10,686 | ||||||||||||||||||||||||
| Equipment | 3,769 | 44 | 88 | 231 | 4,132 | ||||||||||||||||||||||||
| Data processing | 12,914 | 1,361 | 527 | 1,997 | 16,799 | ||||||||||||||||||||||||
| Professional fees | 3,584 | 903 | 22 | 2,632 | 7,141 | ||||||||||||||||||||||||
| Marketing and advertising | 1,251 | 166 | 70 | 693 | 2,180 | ||||||||||||||||||||||||
| Deposit insurance premiums | 4,825 | — | — | — | 4,825 | ||||||||||||||||||||||||
| Intangible expenses | 390 | — | 548 | — | 938 | ||||||||||||||||||||||||
| Restructuring charges | 1,519 | — | — | — | 1,519 | ||||||||||||||||||||||||
Other segment items (2) | 20,067 | 2,828 | 757 | 5,302 | 28,954 | ||||||||||||||||||||||||
Intersegment expense (revenue) (3) | 23,912 | 459 | 486 | (24,857) | — | ||||||||||||||||||||||||
| Income (expense) before income taxes | $ | 90,278 | $ | 5,042 | $ | 5,121 | $ | (11,752) | $ | 88,689 | |||||||||||||||||||
| Income tax expense (benefit) | 18,440 | 768 | 1,128 | (2,751) | 17,585 | ||||||||||||||||||||||||
| Net income (loss) | $ | 71,838 | $ | 4,274 | $ | 3,993 | $ | (9,001) | $ | 71,104 | |||||||||||||||||||
| Net capital expenditures | $ | 4,193 | $ | 19 | $ | 156 | $ | 479 | $ | 4,847 | |||||||||||||||||||
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.
(2) Other segment items for each reportable segment includes:
Banking - loan and lease financing related fees, deposit and card service fees, and certain overhead expenses.
Wealth Management - referral fees, clearing broker fees, and certain overhead expenses.
Insurance - certain overhead expenses.
Other - Board of Director fees, retirement costs, and certain overhead expenses.
(3) Includes an allocation of general and administrative expenses from both the parent holding company and the Bank.
The following tables show significant components of segment net assets as of December 31, 2025 and 2024.
| At December 31, 2025 | |||||||||||||||||||||||||||||
| (Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||||||||||||
| Other segment disclosures: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 462,888 | $ | 55,155 | $ | 35,669 | $ | — | $ | 553,712 | |||||||||||||||||||
| Loans and leases, including loans held for sale, net of allowance for credit losses | 6,841,927 | — | — | — | 6,841,927 | ||||||||||||||||||||||||
| Goodwill | 138,476 | 15,434 | 21,600 | — | 175,510 | ||||||||||||||||||||||||
| Other segment assets | 828,550 | 2,520 | 2,438 | 32,240 | 865,748 | ||||||||||||||||||||||||
| Total segment assets | $ | 8,271,841 | $ | 73,109 | $ | 59,707 | $ | 32,240 | $ | 8,436,897 | |||||||||||||||||||
| At December 31, 2024 | |||||||||||||||||||||||||||||
| (Dollars in thousands) | Banking | Wealth Management | Insurance | Other | Consolidated | ||||||||||||||||||||||||
| Other segment disclosures: | |||||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 247,023 | $ | 50,149 | $ | 31,672 | $ | — | $ | 328,844 | |||||||||||||||||||
| Loans and leases, including loans held for sale, net of allowance for credit losses | 6,756,145 | — | — | — | 6,756,145 | ||||||||||||||||||||||||
| Goodwill | 138,476 | 15,434 | 21,600 | — | 175,510 | ||||||||||||||||||||||||
| Other segment assets | 839,359 | 3,485 | 2,828 | 22,246 | 867,918 | ||||||||||||||||||||||||
| Total segment assets | $ | 7,981,003 | $ | 69,068 | $ | 56,100 | $ | 22,246 | $ | 8,128,417 | |||||||||||||||||||
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.