Univest Financial Corporation Reports First Quarter Results

Core Insights - Univest Financial Corporation reported a net income of $22.4 million for Q1 2025, an increase from $20.3 million in Q1 2024, translating to diluted earnings per share of $0.77 compared to $0.69 in the previous year [1][34]. Financial Performance - The company declared a quarterly cash dividend of $0.22 per share, marking a 4.8% increase from the previous dividend [2]. - Net interest income rose to $56.8 million, a 10.3% increase from Q1 2024, driven by higher loan balances and improved yields on interest-earning assets [8][34]. - Noninterest income decreased to $22.4 million, down 12.4% from the same period last year [11]. Loan and Deposit Trends - Gross loans and leases increased by $254.0 million, or 3.9%, year-over-year, primarily due to growth in commercial and residential mortgage loans [4]. - Total deposits decreased by $100.8 million, or 1.5%, from the end of 2024, but increased by $253.1 million, or 4.0%, compared to Q1 2024 [5]. - Noninterest-bearing deposits represented 21.5% of total deposits as of March 31, 2025, up from 20.9% at the end of 2024 [5]. Asset Quality and Credit Losses - Nonperforming assets totaled $34.0 million, slightly up from $33.2 million at the end of 2024 but down from $40.0 million in Q1 2024 [21]. - The provision for credit losses was $2.3 million, a slight decrease from $2.4 million in Q4 2024 [23]. Shareholder Returns and Capital Management - The company repurchased 221,760 shares at an average price of $29.22 during the quarter, with 1,178,394 shares remaining available for repurchase [24]. - The effective income tax rate decreased to 18.7% in Q1 2025 from 20.5% in Q1 2024, positively impacted by BOLI death benefits [20]. Operational Metrics - The net interest margin improved to 3.09% for Q1 2025, compared to 2.88% in the same quarter of the previous year [9][37]. - Return on average assets was 1.14%, and return on average shareholders' equity was 10.13% for Q1 2025 [37].