Welcome to the 2026 Annual Meeting of Shareholders for Univest Financial Corporation. Our host for today's call is Jeffrey Schweitzer, Chairman, President, and CEO. I will now turn the call over to your host. Mr. Schweitzer, you may begin.
Thank you, Ross. Ladies and gentlemen, as fixed by the order of the Board of Directors, the hour has arrived. The 2026 Annual Shareholders Meeting of Univest Financial Corporation, pursuant to notice to each shareholder. As Chairman, President, and CEO of the corporation, it is my privilege to call the meeting to order. This meeting is being held in person as well as via a live webcast. On behalf of the directors and the officers of Univest, let me welcome you and express my appreciation to you for participating in this meeting. If you are attending this meeting via the live webcast, you may submit written questions at any point online by entering them in the lower left corner of the meeting center screen. We will address questions that relate to the matters conducted at this meeting throughout the meeting.
Also, we intend to follow the rules of conduct for this meeting, a copy of which are posted on the virtual meeting webpage and have been made available to in-person attendees. The board has appointed Megan Santana as Secretary of the meeting and Doug Chia as the Judge of Election. The next order of business is to ask for the reading of the minutes of last year's annual meeting of shareholders.
I move that the reading of the minutes of last year's annual shareholders meeting be waived.
I second the motion.
All those in favor signify by saying aye, and those opposed signify by saying no.
Aye.
The ayes have it. Mr. Chia, as meeting judge, will you report whether a quorum is present?
Yes, Mr. Chairman. As the Judge, I report that a quorum is present. Approximately 86.77% of the outstanding shares are represented by proxy.
Ms. Santana, meeting secretary, will you confirm that notice of this meeting was properly provided?
A copy of the notice and proxy has been made available to in-person attendees and is available online as part of the meeting materials in the lower right corner of the meeting center screen. It was mailed on March 13th, 2026, to all shareholders of record as of February 6th, 2026. Further, the following action was taken at the January 28th, 2026, meeting of the Board of Directors as provided by Article 3, Section 1 of the amended bylaws. Upon motion, duly seconded and unanimously passed, it was resolved to fix the number of directors to be elected at the annual shareholders meeting on April 23rd, 2026, at four Class III directors to be elected for a three-year term.
The Nominating Committee has recommended that the following persons be elected as Class III directors for the three-year term: Joseph P. Beebe, Natalye Paquin, Anne Vazquez, and Robert C. Wonderling. Article 2, Section 17 of the bylaws requires other nominations be submitted in writing and received by the corporation not less than 50 days prior to the meeting. As there were no such nominations, the nominations are closed.
I move that the nominations of four Class III directors be approved.
I second the motion.
Are there any questions with respect to the nominations of the four Class III directors? The next order of business is the ratification of the appointment of KPMG LLP as our independent registered public accounting firm for 2026. I move that the appointment of KPMG LLP as the corporation's independent registered public accounting firm for 2026 be ratified.
I second the motion.
Are there any questions with respect to the ratification of the appointment of the independent registered public accounting firm? The next order of business is the approval on an advisory basis of the compensation of our named executive officers as presented in the proxy statement. I move that the compensation of our named executive officers as presented in the proxy statement be approved.
I second the motion.
Are there any questions with respect to the approval on an advisory basis of the compensation of our named executive officers as presented? The polls are open for voting for Class III directors, the ratification of the appointment of KPMG LLP as Univest's independent registered public accounting firm for 2026, and the approval on an advisory basis for the compensation of our named executive officers as presented in the proxy statement. If you've already voted, there's no need for you to recast your vote. However, if you have not yet voted and you would like to cast a ballot at this time, please identify yourself by raising your hand if you are attending this meeting in person. If you are attending this meeting online, you may cast your ballot by clicking in the lower center of the meeting screen. The polls for voting are hereby closed.
Let me ask for a report of the ballot.
Mr. Chairman, based on the preliminary count of proxies, each nominee for election as a director has received a majority of the votes cast and has been duly elected. KPMG LLP's appointment has been ratified by the majority of the votes cast as the corporation's independent registered public accounting firm for 2026, and the compensation of the named executive officers as presented in the proxy has been approved by the majority of the votes cast.
The judge will provide a detailed report to the secretary. At this time, I'd like to present Univest 2025 annual report and summarize our key highlights. First, I'd like to just thank everybody for joining us today. We definitely appreciate your time and continued support of Univest Financial Corporation. As shareholders, you play an important role in our success, and it is always a privilege to share an update on our past performance and where we are headed. As we reflect on 2025, what stands out most is our disciplined execution in a complex operating environment. The year was shaped by ongoing economic uncertainty, elevated competition for deposits, and continued pressure across the industry. Yet through it all, the Univest family remained focused on what we do best, building relationships, serving as trusted advisors, and executing our strategy with consistency and discipline.
Because of that focus, 2025 was a year of record earnings and meaningful progress across the organization. We advanced strategies that position Univest for long-term success while continuing to create value for our shareholders, customers, employees, and communities. Liquidity and deposit competition remained intense throughout the year, and we responded by executing on a comprehensive, diversified deposit strategy centered on full relationship customers, focusing on key industries and segments, and further developing our small business strategy. Treasury management again played a critical role in deepening relationships and generating fee income. This approach helped us lower our loan-to-deposit ratio and strengthen our balance sheet, which are key priorities for the organization. On the lending side, we remained committed to relationship-oriented pricing discipline and supporting our customers as they navigated a changing environment.
Loan production was strong throughout the year, but it was offset by higher than normal prepayment activity, which moderated during the fourth quarter. Commercial banking team's commitment to investing in relationships is one of the qualities that distinctly sets Univest apart and drove improved profitability in 2025. Another key differentiator continues to be our diversified business model. Across mortgage banking, wealth management, insurance, and equipment finance, our teams delivered solid performance while remaining focused on long-term relationship growth. These businesses not only provide meaningful solutions for our customers, but also contribute important fee income and stability to our overall financial results. The diversification allows us to navigate cycles more effectively and reinforces the value of our integrated approach. During the year, we continued to make meaningful progress on operational efficiency and scalability. We focused on incremental returns on the investments we've made in technology, data, and process improvement.
From continued enhancements to our digital platforms to Lean Six Sigma initiatives across the organization, these efforts are improving consistency, reducing friction, and strengthening the customer experience. At the same time, we remain disciplined in managing expenses, which is essential as we work toward continually improving our operating leverage and achieving our goal of lowering our efficiency ratio. None of this progress happens without our people. In 2025, we continued to invest in the Univest family by strengthening engagement, expanding learning opportunities, and reinforcing a culture rooted in our core values and the Univest Way. Our employees are the foundation of our success, and their commitment continues to set Univest apart. We also remain deeply committed to the communities we serve. Through financial contributions and volunteerism, our Committed To Local program continues to make a meaningful impact, reflecting our belief that strong communities are essential to long-term success.
Importantly, we remain focused on returning value to our shareholders. Our strong capital position allowed us to increase our dividend and repurchase shares during the year. These actions reflect our confidence in our strategy, performance, and long-term outlook. As we look ahead to 2026, our priorities are clear and consistent. We will continue to focus on lowering our loan-to-deposit ratio into a sustainable range, improving operating leverage, grow our non-interest income businesses, and deepen relationships through an advisory-focused approach. These are not new initiatives, but rather the next phase of disciplined execution as we focus on maximizing returns from the investments we have already made. We will remain focused on being data-driven, relationship-oriented, and thoughtful in how we deploy capital. Yesterday, we reported our first quarter earnings, and our strong momentum and results from 2025 have carried over into 2026.
We had a strong start to the year, reporting diluted earnings per share of $0.96, which was a 24.7% increase over the first quarter of 2025. Additionally, we further rewarded our shareholders by increasing our quarterly dividend to $0.23 per share while buying back more than 351,000 shares of stock in the first quarter. We are optimistic about 2026, and while there is much uncertainty with the war in Ukraine and its impact on gas prices and the overall economy, we remain focused on executing our strategy and serving you, our shareholders, along with our customers and communities. This year is especially meaningful as we approach Univest's 150th anniversary in June.
This milestone is made possible by generations of trust, discipline, and commitment to doing what is right for our customers and communities. While we honor the past and the great leaders whose shoulders we stand on, we continue to look to and invest in the future. I'm confident that our strong foundation, diversified business model, and dedicated team position us well for years to come. On behalf of the entire Univest family, I want to thank you for your continued confidence, support, and investment. This time, I'd be happy to take any questions anybody might have.
I have a question. I think, Brian, what percentage is owned by institutional investors?
Right around 8%.
Okay. As a main %?
No, it's been pretty. It's been stable for a number of years now. Any other questions? Thank you.
At this point, this concludes the scheduled agenda for the meeting. I would like to ask the directors to stay for a short reorganizational meeting and invite everybody to stay for lunch afterwards. Before we go into that, I'd like to ask Charles Zimmerman for invocation for lunch. That's fair.
Father, we pause at the close of this meeting to acknowledge that you are the giver of all wisdom, provision, and opportunity. We thank you for the past year, for the ways you have blessed Univest with growth, stability, and impact. In a year marked by strong performance, we recognize behind every number is your providential hand. We are grateful for the increase in earnings, the strength of relationships, and the trust placed in this organization by customers, team members, and communities. Thank you for the leadership of this board and management team, for their diligence, integrity, and commitment to stewarding resources wisely. Thank you for the team members who serve faithfully each day and for the communities that are strengthened through this work.
As we look ahead, we ask for the continued wisdom to lead with humility, act with integrity, and to pursue not just profitability, but purpose. Guard us from pride and success, and anchor us in the values that sustain long-term flourishing, trust, service, stewardship, and care for others. Bless the conversations that continue beyond this room, bless the partnerships represented here, and bless the meal we're about to share. May it be a time of fellowship, gratitude, and renewed commitment. We entrust all this to you, knowing that every good and perfect gift comes from your hand. We pray in Christ's name. Amen.
Before we adjourn, I'd just like to congratulate the directors who were reappointed for the next three years. I know I look forward to, and the rest of the management team looks forward to working with you, so congratulations on that. If there's no other further business, we are adjourned. Thank you very much.
This now concludes the meeting. Thank you for joining, and have a pleasant day.