Univest(UVSP) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $25.6 million, or $0.89 diluted earnings per share, up from $18.6 million, or $0.63 diluted earnings per share in Q3 2024, representing a 37.6% increase in net income[1] - Noninterest income for Q3 2025 was $21.9 million, an increase of $1.8 million, or 8.8% from the prior year, with BOLI income increasing by $987 thousand, or 107.2%[10] - Net income for Q3 2025 reached $25,639,000, a 28.3% increase compared to $19,978,000 in Q2 2025[33] - Net income for the nine months ended September 30, 2025, was $68,012,000, an increase from $56,990,000 for the same period in 2024, representing a growth of 19.4%[51] - Net income before amortization of intangibles for the nine months ended September 30, 2025, was $68,302,000, up from $57,416,000 in the previous year, a rise of 18.9%[51] Asset and Liability Management - Total assets increased to $8,573,616 thousand as of September 30, 2025, up from $7,939,056 thousand at June 30, 2025, representing an increase of 8.0%[29] - The company’s total liabilities rose to $7,640,397 thousand, an increase of 8.8% from $7,022,323 thousand at June 30, 2025[29] - Total assets increased to $8,191,010 thousand as of September 30, 2025, compared to $8,005,265 thousand a year earlier[40] - Total assets increased to $8,051,278 thousand as of September 30, 2025, compared to $7,808,514 thousand in 2024, reflecting a growth of 3.1%[44] - Total liabilities increased to $7,141,580 thousand in 2025, compared to $6,957,955 thousand in 2024, marking a rise of 2.6%[44] Loan and Lease Performance - Gross loans and leases decreased by $15.7 million, or 0.2% from Q2 2025, but increased by $54.7 million, or 0.8% from Q3 2024, primarily due to increases in construction and commercial real estate loans[3] - Net loans and leases held for investment decreased slightly to $6,698,955 thousand from $6,714,196 thousand, a decline of 0.2%[31] - The commercial, financial, and agricultural loans decreased to $996,612 thousand from $1,052,246 thousand, a decline of 5.3%[31] - The total consumer loans and lease financings amounted to $1,416,511 thousand, contributing to a total loan portfolio of $6,785,482 thousand[48] Income and Expense Analysis - Net interest income for Q3 2025 was $61.3 million, an increase of $8.1 million, or 15.3% from Q3 2024, primarily due to higher average balances on loans and cash[8] - Noninterest expense for Q3 2025 was $50.7 million, an increase of $2.1 million, or 4.4% from the prior year[15] - Interest income for Q3 2025 was $109,648,000, an increase of 3.1% from $105,706,000 in Q2 2025[33] - Net interest income after provision for credit losses was $60,807,000 for Q3 2025, up from $53,847,000 in Q2 2025, representing a 12.3% increase[33] - Total noninterest income for Q3 2025 was $21,923,000, slightly up from $21,501,000 in Q2 2025[33] Shareholder Metrics - Shareholders' equity increased to $933,219 thousand from $916,733 thousand, reflecting a growth of 1.3%[29] - The total shareholders' equity reached $923,454 thousand, reflecting a solid capital position[40] - Shareholders' equity as of September 30, 2025, stood at $933,219,000, compared to $877,071,000 a year earlier, reflecting an increase of 6.4%[51] - The total shareholders' equity rose to $909,698 thousand in 2025, compared to $850,559 thousand in 2024, indicating an increase of 6.9%[44] Credit Quality - Nonperforming assets totaled $52.1 million at September 30, 2025, up from $36.6 million at September 30, 2024[20] - The provision for credit losses was $517 thousand for Q3 2025, significantly lower than $5.7 million in Q2 2025 and $1.4 million in Q3 2024[22] - Nonaccrual loans and leases stood at $27,330 thousand, a decrease from $27,909 thousand, indicating improved asset quality[31] - Total nonperforming assets increased to $52,125 thousand, up from $50,585 thousand, reflecting a slight deterioration in asset quality[31] - The allowance for credit losses on loans and leases was $86,527 thousand, consistent with the previous quarter, maintaining a ratio of 1.28% of loans and leases held for investment[31] Dividend Information - Univest declared a quarterly cash dividend of $0.22 per share, to be paid on November 19, 2025[23] - Dividends declared per share remained stable at $0.22 for both Q3 2025 and Q2 2025[33] Efficiency and Returns - Return on average assets improved to 1.24% in Q3 2025 from 1.00% in Q2 2025[35] - Return on average shareholders' equity increased to 11.02% in Q3 2025, up from 8.82% in Q2 2025[35] - The efficiency ratio improved to 60.2% in Q3 2025, compared to 61.6% in Q2 2025[35] - Total risk-based capital ratio was 14.28% at the end of Q3 2025, slightly down from 14.58% at the end of Q2 2025[35]