Univest Financial Corporation Reports 10.3% Increase in Net Income for Q2 2025

Univest Financial Corporation reported a net income of $19.98 million, or $0.69 per diluted share, for the second quarter of 2025, reflecting a 10.3% increase from the $18.11 million, or $0.62 per diluted share, recorded in the same period last year. For the first half of 2025, the company achieved a net income of $42.37 million, up 10.3% from $38.41 million in the prior year. The increase in profitability was attributed to higher net interest income, which rose to $59.54 million for the quarter, compared to $51.03 million in the previous year, driven by increased loan volumes and improved yields on interest-earning assets.

Total assets decreased by 2.3% to $7.94 billion as of June 30, 2025, down from $8.13 billion at the end of 2024. This decline was primarily due to a significant reduction in cash and cash equivalents, which fell by 51.2% to $160.37 million. Conversely, total investment securities increased slightly to $496.68 million, while loans and leases held for investment decreased marginally to $6.80 billion. The allowance for credit losses on loans and leases remained stable at $86.99 million, representing 1.28% of total loans.

In terms of operational metrics, the company reported a provision for credit losses of $5.69 million for the second quarter, a notable increase from $707,000 in the same quarter of 2024. This rise was largely due to a $7.3 million charge-off related to a commercial loan placed on nonaccrual status. Nonaccrual loans and leases increased to $27.91 million, compared to $12.67 million at the end of 2024, indicating a growing concern over credit quality.

Univest Financial also experienced a decrease in total deposits, which fell by 2.6% to $6.58 billion, primarily due to declines in consumer and public funds deposits. The company’s capital position remained strong, with total shareholders' equity increasing by 3.3% to $916.73 million, supported by retained earnings growth and a reduction in accumulated other comprehensive loss. The outlook for the remainder of 2025 remains cautiously optimistic, with management focusing on maintaining capital adequacy and managing credit risk effectively amid changing market conditions.