SOUDERTON, PA — Univest Financial Corporation (NASDAQ: UVSP) has announced robust financial results for the first quarter of 2025, with net income reaching $22.4 million, or $0.77 per diluted share. This reflects an increase from $20.3 million, or $0.69 per diluted share, during the same period in 2024.
The corporation also declared a quarterly dividend of $0.22 per share, marking a 4.8% increase compared to the prior dividend. This increase highlights Univest’s commitment to shareholder returns, with the latest payment scheduled for May 21, 2025, for shareholders of record as of May 7, 2025.
Loan and Deposit Performance
Univest reported moderate growth in its loan portfolio, with gross loans and leases up $6.5 million from December 31, 2024, and $254.0 million, or 3.9%, year-over-year. Growth in commercial, real estate, and residential loans offset declines in construction loans and lease financings.
Deposits declined by $100.8 million, or 1.5%, from the previous quarter, primarily due to seasonal reductions in public fund deposits. However, year-over-year deposits increased by $253.1 million, or 4.0%, driven by consumer and commercial growth. Noninterest-bearing deposits represented 21.5% of total deposits at the end of the quarter, slightly up from the prior quarter.
Other Financial Highlights
Net interest income grew to $56.8 million, a 10.3% increase from Q1 2024, driven by higher loan balances and lower funding costs. Net interest margin improved to 3.09%, reflecting a more favorable interest environment.
Noninterest income for Q1 2025 was $22.4 million, down 12.4% year-over-year, due to lower mortgage-related gains and other income sources. However, areas such as investment advisory fees and service charges on deposit accounts posted growth.
Despite a 1.5% decline in noninterest expenses to $49.3 million, asset quality remained solid with nonperforming assets at $34.0 million, consistent with the previous quarter but down from $40.0 million a year prior.
During Q1, Univest repurchased 221,760 shares of common stock at an average price of $29.54, demonstrating ongoing efforts to optimize its capital management strategy.
Outlook
Univest’s strong Q1 results, bolstered by strategic lending and deposit management alongside increased shareholder returns, reflect its resilient financial standing. Positioning itself for sustained growth, the company’s robust liquidity and funding capacity underscore its ability to adapt to market conditions while continuing to prioritize shareholder value.
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