Univest Financial Corporation reported a net income of $22.4 million, or $0.77 per diluted share, for the first quarter of 2025, reflecting a 10.3% increase from the $20.3 million, or $0.69 per diluted share, recorded in the same period of 2024. The increase in profitability was attributed to higher net interest income, which rose to $56.8 million from $51.5 million year-over-year, driven by increased loan volumes and improved yields on interest-earning assets. The net interest margin also improved to 3.09% from 2.88%, indicating enhanced efficiency in generating income from assets.
Total assets decreased to $7.98 billion as of March 31, 2025, down from $8.13 billion at the end of 2024. This decline was primarily due to a significant reduction in cash and interest-earning deposits, which fell by 48.6% to $169.1 million, largely influenced by seasonal decreases in public funds. However, total investment securities increased slightly to $497.1 million, supported by new purchases and fair value adjustments. The loan portfolio remained stable, with loans and leases held for investment rising marginally to $6.83 billion.
In terms of operational metrics, the corporation's provision for credit losses increased to $2.3 million from $1.4 million in the prior year, reflecting a proactive approach to managing credit risk amid changing economic conditions. Nonaccrual loans decreased to $11.1 million from $12.7 million, indicating improved asset quality. The allowance for credit losses as a percentage of loans held for investment remained stable at 1.28%, consistent with the previous quarter.
Strategically, Univest Financial continues to focus on enhancing its service offerings across its three segments: Banking, Wealth Management, and Insurance. The Wealth Management segment reported a slight increase in pre-tax income, attributed to new customer relationships and asset appreciation. However, the Insurance segment experienced a decline in pre-tax income, primarily due to reduced contingent income. The corporation's capital position remains strong, with total shareholders' equity increasing to $903.5 million, supported by retained earnings and a decrease in accumulated other comprehensive loss.
Looking ahead, Univest Financial remains committed to maintaining its capital adequacy and liquidity while navigating potential economic challenges. The corporation's management expressed confidence in its ability to adapt to market conditions and continue delivering value to its shareholders.
About UNIVEST FINANCIAL Corp
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