SOUDERTON, PA — Univest Financial Corporation (Nasdaq: UVSP) reported net income of $27.1 million, or $0.96 per diluted share, for the first quarter of 2026, driven by higher net interest income and loan growth.
The results compare with net income of $22.4 million, or $0.77 per diluted share, in the same period last year.
Net interest income increased 11.6% year over year to $63.4 million, supported by higher average loan balances and lower funding costs.
The net interest margin expanded to 3.33% from 3.09% a year earlier.
Gross loans and leases increased $25.4 million from the end of 2025 and $107.2 million from a year earlier, led by commercial and commercial real estate lending.
Total deposits declined $273.6 million from the prior quarter, primarily due to seasonal public fund outflows, but increased $155.3 million from the same period in 2025.
Noninterest income rose 7.5% to $24.1 million, driven by higher investment advisory, insurance, and service fee income.
Noninterest expense increased 6.8% to $52.7 million, reflecting higher salaries, benefits, and restructuring costs tied to the planned closure of two facilities.
The company recorded $372,000 in bank-owned life insurance proceeds and a $427,000 restructuring charge during the quarter.
Univest declared a quarterly cash dividend of $0.23 per share, payable May 20 to shareholders of record on May 6, an increase of $0.01 per share.
Cash and cash equivalents totaled $222.4 million at March 31, with $2.4 billion available under committed borrowing capacity.
Nonperforming assets increased to $41.2 million from $34.0 million a year earlier.
Net charge-offs were $1.3 million for the quarter, while the provision for credit losses declined to $1.3 million from $2.3 million a year earlier.
The company repurchased 351,138 shares during the quarter at an average cost of $34.07 per share, with approximately 1.9 million shares remaining authorized for repurchase.
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