SOUDERTON, PA — Univest Financial Corporation (NASDAQ: UVSP), parent company of Univest Bank and Trust Co., reported net income of $25.6 million, or $0.89 per diluted share, for the quarter ended September 30, 2025, up from $18.6 million, or $0.63 per diluted share, a year earlier. The increase reflects stronger net interest income, improved noninterest revenue, and disciplined expense management.
The quarter included a $967,000 tax-free benefit from bank-owned life insurance (BOLI) claims, contributing $0.03 per share to earnings.
Solid Deposit Growth and Improved Liquidity
Total deposits rose sharply by $635.5 million, or 9.7%, from the prior quarter to $7.2 billion, driven by seasonal increases in public funds and higher commercial and brokered deposits. Liquidity strengthened as cash and cash equivalents reached $816.7 million, reflecting a $662.2 million rise in interest-earning deposits at other banks. Univest also reported $3.6 billion in committed borrowing capacity, with $1.8 billion available, and $457 million in uncommitted funding from correspondent banks.
Noninterest-bearing deposits accounted for 19.3% of total deposits at quarter-end, down from 22.2% in the previous quarter. Unprotected deposits represented 22.0% of total deposits, compared to 23.0% in June.
Loan Portfolio Trends
Gross loans and leases decreased modestly by $15.7 million, or 0.2%, from June 30, 2025, primarily due to declines in commercial and residential mortgage lending and lease financing. Year-over-year, total loans and leases increased $54.7 million, or 0.8%, led by growth in construction, commercial real estate, and home equity lending.
Net Interest Income and Margin Expansion
Net interest income rose 15.3% year-over-year to $61.3 million, reflecting higher average loan balances, improved yields, and a lower cost of funds. The net interest margin, on a tax-equivalent basis, was 3.17%, compared to 2.82% a year ago. Excluding the impact of excess liquidity, the margin would have been 3.33%.
Noninterest Income and Expense
Noninterest income climbed 8.8% to $21.9 million, supported by higher BOLI income, stronger investment advisory and insurance commissions, and increased service fee revenue. Mortgage banking activity declined, offset by valuation improvements in mortgage servicing rights.
Noninterest expense rose 4.4% to $50.7 million, largely due to higher compensation, state tax expenses, and consulting fees tied to data integration projects.
Credit Quality and Provisioning
Nonperforming assets increased to $52.1 million from $50.6 million in the prior quarter, reflecting the transfer of a $1.4 million residential loan to other real estate owned. The company also noted a previously identified $23.7 million commercial relationship placed on nonaccrual in the second quarter, with a $7.3 million charge-off recorded in the current period.
Net charge-offs were $480,000 for the quarter, down from $7.8 million in the second quarter. The provision for credit losses declined to $517,000, compared with $5.7 million in the prior quarter. The allowance for credit losses held steady at 1.28% of loans and leases.
Dividend and Share Repurchases
Univest declared a quarterly cash dividend of $0.22 per share, payable November 19, 2025, to shareholders of record as of November 5. The company repurchased 255,010 shares during the quarter at an average price of $30.49 including fees and taxes, leaving 750,627 shares authorized for future repurchase.
Outlook
Univest’s third-quarter results highlight steady balance sheet management, improved profitability, and a cautious credit posture amid evolving economic conditions. The company continues to prioritize liquidity strength and shareholder returns while managing lending exposure across commercial and consumer segments.
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