SOUDERTON, PA — Univest Financial Corporation (Nasdaq: UVSP) reported sharply higher earnings for the fourth quarter and full year of 2025, driven by loan growth, stronger net interest income, and rising fee-based revenue, even as deposits fluctuated and expenses climbed.
The parent company of Univest Bank and Trust Co. said net income for the quarter ended December 31, 2025, rose to $22.7 million, or $0.79 per diluted share, up from $18.9 million, or $0.65 per share, a year earlier. For the full year, net income increased to $90.8 million, or $3.13 per diluted share, compared with $75.9 million, or $2.58 per share, in 2024.
Loan growth remained a key driver. Gross loans and leases increased $129.3 million, or 1.9%, from the prior quarter, led by gains in commercial and commercial real estate lending, partially offset by declines in residential mortgages. On a year-over-year basis, loans rose $88.2 million, or 1.3%, reflecting growth in construction, commercial real estate, and home equity balances.
Deposits showed mixed trends. Total deposits declined $130.8 million, or 1.8%, from the third quarter, primarily due to lower public funds and commercial balances, but increased $328.1 million, or 4.9%, from the end of 2024. Noninterest-bearing deposits totaled $1.4 billion at year-end, representing just over 20% of total deposits.
Liquidity remained robust. As of December 31, 2025, Univest held $553.7 million in cash and cash equivalents and reported committed borrowing capacity of $3.8 billion, with $2.3 billion available. The company also maintained $457.0 million in uncommitted funding sources from correspondent banks.
Net interest income climbed to $62.5 million in the fourth quarter, up 12.8% from a year earlier, reflecting higher average loan balances, improved loan yields, and a lower cost of funds. Net interest margin was 3.10% on a tax-equivalent basis, compared with 2.88% in the prior-year quarter. Excluding the impact of excess liquidity, margin would have been 3.37%.
Noninterest income rose 3.2% year over year to $22.0 million, fueled by double-digit growth in investment advisory fees and a sharp increase in other income tied to interest rate swap activity and real estate operations. Those gains were partially offset by lower mortgage banking revenue and reduced service fees.
Expenses increased as well. Noninterest expense totaled $52.7 million for the quarter, up 4.1% from a year earlier, driven by higher compensation, professional fees, and data processing costs.
Asset quality improved late in the year. Nonperforming assets declined to $37.8 million at December 31, down from $52.1 million at the end of the third quarter, following the payoff of a large nonaccrual commercial loan relationship. Net charge-offs totaled $1.1 million for the quarter, while the allowance for credit losses remained steady at 1.28% of loans and leases.
The company also returned capital to shareholders. On January 28, 2026, Univest declared a quarterly cash dividend of $0.22 per share, payable February 25. During the fourth quarter, the company repurchased nearly 480,000 shares at an average price of $31.82 per share and ended the year with more than 2.27 million shares remaining authorized for repurchase.
Univest said the results reflect disciplined balance-sheet management and steady core earnings momentum heading into 2026.
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