SOUDERTON, PA — Univest Financial Corporation (NASDAQ: UVSP) recently reported its financial results for the fourth quarter and the full year 2023. The numbers depict a mixed bag as the corporation navigated the financial landscape.
The net income for the quarter, which ended on December 31, 2023, fell to $16.3 million. A sharp contrast compared to last year’s figure of $23.8 million. Diluted earnings per share followed a similar trend, down from $0.81 in 2022 to this year’s $0.55.
However, it’s not all a downhill slope. Univest saw a marked upswing in both its gross loans and leases, and total deposits. The former surged by $444.0 million (a 7.3% increment), while the latter rose by $462.3 million (a 7.8% increment) from the end of the previous year.
Amidst these fluctuations, Univest’s noninterest income and noninterest expenses experienced changes as well. Noninterest income recorded a dip by $1.8 million or 9.0% compared to the same period in the prior year. Simultaneously, noninterest expense increased by $1.7 million or 3.6% year-over-year.
Univest’s effective income tax rate for the quarter also saw a marginal increase, from 19.6% in 2022 to 20.3% in 2023. Nonperforming assets maintained stability, remaining at $40.1 million at the end of both the third and fourth quarters of 2023.
Investors should take note of Univest’s declaration of a quarterly cash dividend of $0.21 per share, scheduled for payment on February 21, 2024. This move gives credence to the Corporation’s commitment to providing value to its shareholders.
Ultimately, this blend of growth and decline presents a textured view of Univest’s financial health. With an inflow in lending activities and deposits and a stable line in nonperforming assets, Univest seems to be bearing the brunt of decreased net income and earnings per share. Yet, the declaration of a cash dividend remains a beacon of reassurance for stakeholders vested in the Corporation.
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