Univest(US:UVSP)2025-10-24 18:55Financial 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]