Univest(US:UVSP)2025-04-24 12:39Financial Performance - Univest Financial Corporation reported net income of $22.4 million, or $0.77 diluted earnings per share, for Q1 2025, an increase of 10.3% in net income compared to $20.3 million, or $0.69 diluted earnings per share, in Q1 2024[1]. - For the three months ended March 31, 2025, net income was $22,395,000, an increase of 18.9% compared to $18,941,000 for the previous quarter[33]. - The net income for the three months ended March 31, 2025, was $22,395 thousand, an increase from $20,305 thousand in the same period of 2024[49]. Loan and Lease Activity - Gross loans and leases increased by $254.0 million, or 3.9%, from March 31, 2024, primarily driven by increases in commercial and residential mortgage loans[4]. - Net loans and leases held for investment increased to $6,745,247 thousand, compared to $6,739,492 thousand at the end of the previous quarter, a slight increase of 0.08%[31]. - The company reported a total of $1,034,361 thousand in commercial, financial, and agricultural loans, a slight decrease from $1,037,835 thousand in the previous quarter[31]. - Total commercial loans outstanding as of March 31, 2025, were $5,398,630 thousand, with industries having more than $50 million in outstandings accounting for 82.7% of the portfolio[46]. - The average rate on commercial, financial, and agricultural loans was 6.97% for Q1 2025, down from 7.11% in Q1 2024[44]. Interest Income and Margin - Net interest income for Q1 2025 was $56.8 million, an increase of $5.3 million, or 10.3%, from Q1 2024, driven by higher average loan balances and increased yields[8]. - The net interest margin on a tax-equivalent basis was 3.09% for Q1 2025, up from 2.88% for the same period in 2024[9]. - Net interest income for the three months ended March 31, 2025, was $57,167 thousand, an increase from $51,750 thousand in the same period of 2024[44]. - The net interest margin improved to 3.09% for the three months ended March 31, 2025, up from 2.88% in the same period of 2024[44]. Deposits and Assets - Total deposits decreased by $100.8 million, or 1.5%, from December 31, 2024, but increased by $253.1 million, or 4.0%, from March 31, 2024[5]. - Total assets decreased to $7,975,167 thousand as of March 31, 2025, down from $8,128,417 thousand at December 31, 2024, representing a decline of 1.88%[29]. - As of March 31, 2025, Univest had total assets of approximately $8.0 billion and $5.2 billion in assets under management[25]. - Total assets as of March 31, 2025, were $7,981,043 thousand, compared to $7,696,575 thousand as of March 31, 2024, reflecting a year-over-year increase of approximately 3.7%[49]. Noninterest Income and Expenses - Noninterest income decreased by $3.2 million, or 12.4%, to $22.4 million in Q1 2025 compared to the prior year[10]. - Total noninterest income for the period was $22,415,000, compared to $21,330,000 in the previous quarter, representing a 5.1% increase[33]. Credit Quality - Nonperforming assets totaled $34.0 million at March 31, 2025, compared to $40.0 million at March 31, 2024[20]. - The provision for credit losses was $2.3 million for Q1 2025, slightly down from $2.4 million in Q4 2024[21]. - Nonaccrual loans and leases decreased to $11,126 thousand, down from $12,667 thousand, a reduction of 12.16%[31]. - The allowance for credit losses remained stable at $87,790 thousand, consistent with the previous quarter[31]. - The allowance for credit losses on loans and leases was $87,822 thousand, slightly increasing from $86,812 thousand in the previous quarter[37]. Shareholder Equity and Dividends - Shareholders' equity increased to $903,472 thousand from $887,301 thousand, reflecting an increase of 1.93%[29]. - Univest declared a quarterly cash dividend of $0.22 per share, representing an increase of $0.01 per share, or 4.8%[2]. - Total shareholders' equity increased to $896,811 thousand as of March 31, 2025, from $842,546 thousand a year earlier, reflecting a growth of approximately 6.4%[49]. Operational Efficiency - The efficiency ratio decreased to 61.6%, down from 65.5% in the previous quarter, indicating improved operational efficiency[35]. - The return on average assets improved to 1.14% for the period, up from 0.92% in the previous quarter[35]. - Common equity book value per share increased to $31.19, compared to $30.55 in the previous quarter, reflecting a growth of 2.1%[35].