SOUDERTON, PA — Univest Financial Corporation (NASDAQ: UVSP) has reported robust fourth-quarter 2024 financial results, showcasing an 18.2% increase in diluted earnings per share year-over-year, reaching $0.65 from $0.55. Net income for the quarter stood at $18.9 million, up from $16.3 million in Q4 2023.
The growth was supported by higher net interest income, which rose 5.1% to $55.5 million, compared to the fourth quarter of the prior year. This was driven by increased yields on loans and leases as well as higher average balances of interest-earning assets. The company also saw its net interest margin on a tax-equivalent basis climb to 2.88%, up from 2.82% in the prior quarter.
Loan and Deposit Changes
Gross loans and leases grew $259.4 million, or 3.9%, year-over-year, with commercial real estate and residential mortgage loans leading the increase. However, total deposits decreased by $94.9 million from Q3 2024 but demonstrated a 6.0% year-over-year growth, reaching $383.5 million.
Noninterest Income and Expenses
Noninterest income rose to $21.3 million, a 14.6% increase from Q4 2023, bolstered by gains in investment advisory commissions and mortgage banking activities. The reversal of a $785,000 valuation allowance on mortgage servicing rights also contributed to the uptick.
On the expense side, noninterest expenses totaled $50.7 million, marking a 3.3% increase year-over-year. Salaries, benefits, and commissions grew by 7.5%, driven by higher incentive payouts linked to increased profitability. Meanwhile, deposit insurance premiums and data processing costs saw reductions.
Asset Quality and Credit Losses
Univest demonstrated stable asset quality, with nonperforming assets declining to $33.2 million from $40.1 million a year ago. The provision for credit losses increased to $2.4 million, reflecting prudent risk management amid evolving market conditions.
Shareholder Returns
The company declared a quarterly cash dividend of $0.21 per share, payable on February 19, 2025. Additionally, Univest repurchased 139,492 shares in Q4 at an average price of $29.97, bringing the total repurchase count for 2024 to 802,535 shares.
Univest Financial Corporation’s strong performance underscores its ability to deliver consistent results across its core banking, insurance, and investment segments, highlighting a positive trajectory into the new year.
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