Univest(US:UVSP)2026-01-29 13:45Financial 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]