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Financial Data and Key Metrics Changes - The company reported net income of $22.7 million or $0.79 per share for Q4 2025, a 21.5% increase compared to Q4 2024, resulting in record earnings per share for the year of $3.13 [3] - Loan outstandings grew by $129.3 million during Q4 2025, with a solid loan growth after pressures from early payoffs eased [3][4] - The reported net interest margin (NIM) decreased by 7 basis points to 3.10% compared to Q3 2025, while core NIM increased by 4 basis points to 3.37% [5] Business Line Data and Key Metrics Changes - Loans grew by $129.3 million during Q4 2025, or 7.6% annualized, while total loans for the full year increased by $88.2 million, or 1.3% [5][6] - Non-interest expense increased by $2.1 million, or 4.1% compared to Q4 2024, with total expenses for the year rising by $5 million, or 2.5% [6][7] - The company repurchased approximately 400,000 shares of common stock at an average cost of $32.17 per share during Q4 2025, with a total of 1.1 million shares repurchased in 2025 [7][8] Market Data and Key Metrics Changes - Deposits decreased by $130.8 million in Q4 2025, primarily due to a $198.8 million decrease in public funds, partially offset by an $84 million increase in consumer balances [6] - Total deposits grew by $328.1 million, or 4.9%, for the full year of 2025 [6] Company Strategy and Development Direction - The company expects loan growth of approximately 2%-3% and modest NIM expansion for 2026, targeting net interest income growth of approximately 4%-6% [8][9] - The provision for credit losses is expected to be in the range of $11 million-$13 million for 2026, driven by changes in economic forecasts and credit performance [9] - The company is focusing on deposit initiatives, including small business outreach and specific programs to capture deposits from various sectors [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrying momentum from 2025 into 2026, with expectations for continued strong performance [48] - The company anticipates a relatively stable environment with potential Fed rate decreases, which are not expected to materially impact net interest income due to overall asset-liability management neutrality [9] Other Important Information - The effective tax rate is expected to be in the range of 20%-21% based on current statutory rates [10] - The company has 2.3 million shares available for repurchase under the share repurchase plan, with a target of $10 million-$12 million in repurchases per quarter for 2026 [8] Q&A Session Summary Question: What is the seasonality for deposits in Q1? - The company expects $100 million-$150 million in public funds to flow out in Q1 and Q2, with significant portions of excess liquidity deployed over that time [15] Question: What is the expected trajectory for NIM over the year? - NIM is expected to be relatively in line to slightly up compared to Q4 2025, with overall expansion anticipated for 2026 [16] Question: What is the current state of deposit competition? - Competition remains, with slight increases noted, but the company has been successful in retaining CDs and managing deposit costs effectively [20] Question: Can you review the ag farmland portfolio? - The ag portfolio consists of smaller family farms with a conservative underwriting approach, and the company has a diversified business model supporting these loans [22] Question: What is the outlook for loan growth and prepayment activity? - The company anticipates a more stable prepayment environment similar to Q4 2025, with growth expected primarily in the commercial loan sector [30] Question: How is the buyback pace tied to balance sheet movements? - The buyback activity is guided by earnings and balance sheet growth, aiming to avoid significant growth in regulatory capital ratios [38]

Univest Financial (NasdaqGS:UVSP) Q4 2025 Earnings call January 29, 2026 09:00 AM ET Company ParticipantsBrian Richardson - CFOJeff Schweitzer - President, Chairman, and CEOMike Keim - COOTyler Cacciatori - Equity Research AssociateConference Call ParticipantsManuel Navas - Managing Director and Senior Research AnalystTim Switzer - VP and Equity Research AnalystOperatorHello, everyone, and thank you for joining the Univest Financial Corporation fourth quarter 2025 earnings call. My name is Gabrielle, and I ...

Univest Financial (NasdaqGS:UVSP) Q4 2025 Earnings call January 29, 2026 09:00 AM ET Speaker4Hello, everyone, and thank you for joining the Univest Financial Corporation fourth quarter 2025 earnings call. My name is Gabrielle, and I will be coordinating your call today. During the presentation, you can register a question by pressing Star, followed by one on your telephone keypad. If you change your mind, please press Star, followed by two on your telephone keypad. I will now hand over to your host, Jeff Sc ...

Financial Performance - Net income for Q4 2025 was $22.7 million, or $0.79 diluted earnings per share, a 21.5% increase from Q4 2024[1] - Net income for the year ended December 31, 2025, reached $90,757 thousand, up from $75,931 thousand in 2024, marking an increase of 19.5% year-over-year[31] - Net income for the three months ended December 31, 2025, was $22,745,000, an increase from $18,941,000 for the same period in 2024, representing a year-over-year growth of 20%[50] - Net income before amortization of intangibles for the twelve months ended December 31, 2025, was $91,128,000, up from $76,479,000 in 2024, marking a growth of 19.2%[50] Revenue and Income Sources - Net interest income for Q4 2025 was $62.5 million, an increase of $7.1 million, or 12.8%, from Q4 2024[7] - Noninterest income for Q4 2025 was $22.0 million, an increase of $692 thousand, or 3.2%, from the prior year[9] - Total noninterest income for the year ended December 31, 2025, was $87,861 thousand, slightly down from $88,055 thousand in 2024, showing a marginal decline[31] - Net interest income for the twelve months ended December 31, 2025, was $241,852 thousand, up from $212,343 thousand in 2024, reflecting an increase of about 13.9%[45] Asset and Liability Management - Total assets as of December 31, 2025, amounted to $8,436,897, a decrease of 1.6% from $8,573,616 on September 30, 2025[27] - Total liabilities decreased to $7,493,579, down 1.9% from $7,640,397 on September 30, 2025[27] - Total assets increased to $8.53 billion as of December 31, 2025, compared to $8.16 billion in 2024, reflecting a growth of approximately 4.5%[39] - Total liabilities increased to $7,255,122 thousand in 2025 from $7,039,688 thousand in 2024, marking an increase of approximately 3.1%[43] Credit Quality and Provisions - The provision for credit losses was $3.1 million for Q4 2025, compared to $2.4 million for Q4 2024[20] - Nonperforming assets totaled $37.8 million, down from $52.1 million at September 30, 2025[18] - The allowance for credit losses on loans and leases was $88,165, reflecting a slight increase from $86,527 on September 30, 2025[27] - The allowance for credit losses as a percentage of loans and leases held for investment remained stable at 1.28% for the periods ending December 31, 2025, and September 30, 2025[29] Shareholder Equity and Dividends - Shareholders' equity rose to $943,318, an increase of 1.2% from $933,219 on September 30, 2025[27] - Univest declared a quarterly cash dividend of $0.22 per share, to be paid on February 25, 2026[21] - The total shareholders' equity increased to $936.42 million in Q4 2025, up from $880.24 million in Q4 2024, indicating a growth of approximately 6.4%[39] - Average shareholders' equity for the twelve months ended December 31, 2025, was $916,433,000, compared to $858,019,000 in 2024, representing a year-over-year increase of 6.8%[50] Interest Rates and Margins - Net interest margin was 3.10% for Q4 2025, compared to 2.88% for Q4 2024, with excess liquidity reducing the margin by approximately 27 basis points[8] - The net interest margin improved to 3.10% in Q4 2025, compared to 2.88% in Q4 2024, indicating enhanced profitability from interest-earning assets[39] - The average interest rate on commercial, financial, and agricultural loans was 6.98% in 2025, slightly down from 7.19% in 2024[43] - Interest-bearing liabilities totaled $6.10 billion, with a cost of funds at 3.20% for the three months ended December 31, 2025, compared to 3.56% in the same period of 2024[39] Operational Efficiency - Noninterest expense for Q4 2025 was $52.7 million, an increase of $2.1 million, or 4.1%, from the prior year[13] - Total noninterest expense for the year ended December 31, 2025, was $203,039 thousand, an increase from $197,992 thousand in 2024, reflecting a rise in operational costs[31] - The efficiency ratio for the three months ended December 31, 2025, was 61.8%, compared to 60.2% for the three months ended September 30, 2025[33] Growth in Loans and Leases - Gross loans and leases increased by $129.3 million, or 1.9% (7.6% annualized), from Q3 2025, driven by commercial and commercial real estate loans[2] - Total loans and leases held for investment increased to $6,914,804 thousand as of December 31, 2025, up from $6,785,482 thousand at September 30, 2025, representing a growth of 1.9%[29] - Net loans and leases held for investment increased to $6,826,639, up 1.9% from $6,698,955 on September 30, 2025[27] - Total commercial loans reached $5,509,941 thousand, with the largest sector being industries with over $50 million in outstandings, accounting for 83.6% of the total[47]

(21.5% increase in earnings per share compared to fourth quarter 2024)SOUDERTON, Pa., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the "Bank") and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended December 31, 2025 of $22.7 million, or $0.79 diluted earnings per share, compared to net income of $18.9 million, or $0.65 diluted earnings per ...

Core Viewpoint - Univest Financial Corporation will host a conference call to discuss its fourth quarter 2025 earnings on January 29, 2026, with earnings released after market close on January 28, 2026 [1]. Group 1: Conference Call Details - The conference call is scheduled for January 29, 2026, at 9:00 a.m. [1] - Participants can pre-register for the call to avoid delays using a provided link [2]. - The audio dial-in number for the call is 1-833-470-1428, with an access code of 927698 [2]. Group 2: Replay Information - A replay of the conference call can be accessed by dialing 1-866-813-9403 with the replay code 393949 [3]. - The replay will be available until February 5, 2026 [3]. Group 3: Company Overview - Univest Financial Corporation has approximately $8.6 billion in assets and $5.7 billion in assets under management as of September 30, 2025 [3]. - The company provides a full range of financial solutions for individuals, businesses, municipalities, and nonprofit organizations primarily in the Mid-Atlantic Region [3]. - Univest operates through a network of more than 50 offices and online services [3].

Core Points - Univest Financial Corporation has completed a $50.0 million private placement of fixed-to-floating rate subordinated notes [1] - The proceeds will be used to redeem $80.0 million of callable subordinated notes and for general corporate purposes [1] - The notes have a maturity date of November 15, 2035, with a fixed interest rate of 6.00% for the first five years, transitioning to a floating rate thereafter [2] Financial Details - The floating rate will be set quarterly, equal to the three-month Secured Overnight Financing Rate (SOFR) plus 261.5 basis points [2] - The notes can be redeemed by the Corporation without penalty starting November 15, 2030 [2] - These notes are structured to qualify as Tier 2 capital for regulatory purposes [2] Regulatory and Advisory Information - The Corporation has entered into registration rights agreements with purchasers for the exchange of the notes for registered subordinated notes [3] - Piper Sandler & Co. acted as the sole placement agent for the private offering, with legal advice provided by Luse Gorman, PC and Troutman Pepper Locke LLP [4] Company Overview - Univest Financial Corporation has approximately $8.6 billion in assets and $5.7 billion in assets under management as of September 30, 2025 [6] - The Corporation provides a full range of financial solutions primarily in the Mid-Atlantic Region through over 50 offices [6]

Financial Performance - Net income for Q3 2025 was $25,639,000, a 38.0% increase from $18,578,000 in Q3 2024[162] - Basic earnings per share for Q3 2025 was $0.89, up 39.1% from $0.64 in Q3 2024[162] - Noninterest income for the three months ended September 30, 2025, was $21.9 million, an increase of $1.8 million or 8.8% from the same period in 2024[178] - The Banking segment reported pre-tax income of $85.2 million for the nine months ended September 30, 2025, compared to $70.3 million for the same period in 2024[213] - The Insurance segment's pre-tax income for the nine months ended September 30, 2025, was $4.5 million, down from $5.3 million in the prior year[215] Net Interest Income and Margin - Net interest income on a tax-equivalent basis for Q3 2025 was $61,700,000, a 15.4% increase from $53,500,000 in Q3 2024[165] - The net interest margin for Q3 2025 was 3.17%, compared to 2.82% in Q3 2024[166] - Net interest income for Q3 2025 was $61,736 thousand, compared to $53,492 thousand in Q3 2024, reflecting an increase of 15.5%[168] - The net interest margin improved to 3.17% in Q3 2025, up from 2.82% in Q3 2024[170] - The Corporation's overall cost of funds decreased, contributing to the increase in net interest income[165] Assets and Liabilities - Total assets increased to $8,191,010 thousand in Q3 2025, up from $8,005,265 thousand in Q3 2024, representing a growth of 2.32%[167] - Total liabilities increased to $7,267,556 thousand in Q3 2025, compared to $7,140,859 thousand in Q3 2024, an increase of 1.77%[170] - Total deposits increased by $458.9 million, or 6.8%, from December 31, 2024, primarily due to seasonal increases in public funds deposits[207] - Total shareholders' equity rose to $923,454 thousand in Q3 2025, compared to $864,406 thousand in Q3 2024, an increase of 6.83%[170] Credit Quality - The provision for credit losses for the nine months ended September 30, 2025, was $8.5 million, up from $3.6 million in 2024, primarily due to a $7.3 million charge-off on a commercial loan[175] - Nonaccrual loans and leases increased to $27.3 million as of September 30, 2025, compared to $12.7 million at December 31, 2024[197] - Net loan and lease charge-offs for the nine months ended September 30, 2025, were $10.0 million, compared to $3.0 million for the same period in the prior year[198] - Total nonperforming assets increased to $52.1 million as of September 30, 2025, from $33.2 million at December 31, 2024[202] Funding and Liquidity - The Corporation's unencumbered cash and cash equivalents were $811.1 million at September 30, 2025, compared to $327.8 million at December 31, 2024[224] - Committed borrowing capacity from the Federal Home Loan Bank and Federal Reserve Bank was $3.6 billion as of September 30, 2025, with $1.8 billion available[224] - Non-brokered deposits remain the largest funding source for the Corporation, facing increased competition from various financial market participants[225] - The Corporation has a contingency funding plan to address liquidity needs during financial crises[223] Expenses - Noninterest expense for the three months ended September 30, 2025 was $50.7 million, an increase of $2.1 million, or 4.4%, from the same period in 2024[186] - Salaries, benefits, and commissions increased by $950 thousand, or 3.1%, for the three months ended September 30, 2025, primarily due to annual merit increases and increased incentive compensation[187] - Other expenses rose by $967 thousand, or 14.8%, for the three months ended September 30, 2025, mainly due to increases in Pennsylvania bank shares tax expense and loan workout fees[188] Regulatory Compliance - The Corporation's capital ratios were in compliance with regulatory requirements as of September 30, 2025, maintaining a capital conservation buffer above the minimum[217] - As of September 30, 2025, the Corporation's total capital to risk-weighted assets ratio was 14.28%, exceeding the regulatory minimum of 8.00%[219] - The Bank's Tier 1 capital to risk-weighted assets ratio was 11.33% as of September 30, 2025, above the required 6.00%[219] Other Income and Fees - Bank owned life insurance income increased by $987 thousand or 107.2% for the three months ended September 30, 2025, compared to the prior year[179] - Other service fee income increased by $601 thousand or 33.1% for the three months ended September 30, 2025, but decreased by $3.0 million or 26.6% for the nine months ended September 30, 2025[180] - Investment advisory commission and fee income rose by $352 thousand or 6.6% for the three months ended September 30, 2025, and by $993 thousand or 6.3% for the nine months ended September 30, 2025[181]