UVSP · Univest Financial Corporation

Univest Financial Corporation delivered strong Q1 2026 results with net income of $27.1 million and diluted EPS of $0.96, reflecting a 24.7% EPS increase year-over-year driven by higher net interest income and noninterest income growth. Net interest income rose 11.6% from Q1 2025 to $63.4 million, supported by higher average loan and cash balances, lower cost of funds, and an expanded net interest margin of 3.33% (tax-equivalent basis), up from 3.09%, with excess liquidity impacting it by 11 basis points. Noninterest income increased 7.5% to $24.1 million, boosted by investment advisory fees (+9.6%), insurance commissions (+7.8%), and other service fees (+12.3%), though BOLI income declined due to lower death benefits. Noninterest expense grew 6.8% to $52.7 million, with salaries and benefits up 8.5% from higher salaries and medical claims volatility, plus a $427 thousand restructuring charge for closing two facilities. Asset quality showed nonperforming assets at $41.2 million, up from $34.0 million in Q1 2025, with $1.3 million in net charge-offs and provision; allowance for credit losses remained stable at 1.28% of loans. Balance sheet reflected loan growth of 0.4% quarter-over-quarter and 1.6% year-over-year, focused on full-relationship customers, while deposits fell seasonally 3.9% from year-end but grew 2.3% year-over-year. Noninterest-bearing deposits improved to 21.7% of total, with strong liquidity including $222.4 million in cash and $2.4 billion available committed borrowings. Capital returns included a 4.5% dividend hike to $0.23 per share and repurchases of 351,138 shares, underscoring shareholder focus amid solid profitability.