Univest Financial Corporation announced net income of $20.0 million, or $0.69 diluted earnings per share, for the second quarter ended June 30, 2025. This represents an increase from $18.1 million, or $0.62 diluted earnings per share, in the second quarter of 2024. Net interest income for the quarter was $59.5 million, an increase of 16.7% year-over-year, driven by higher average loan balances and increased yields on interest-earning assets.
The net interest margin, on a tax-equivalent basis, expanded to 3.20% for the second quarter, up from 3.09% in the first quarter of 2025. Excluding the impact of excess liquidity, the core net interest margin was 3.24%. Loans decreased by $31.9 million, or 0.5%, from March 31, 2025, while deposits decreased by $75.8 million, primarily due to seasonal public funds and brokered deposits, though commercial deposits increased.
The provision for credit losses increased to $5.7 million, largely due to a $7.3 million charge-off on a commercial loan related to suspected fraud. This event also led to a rise in nonperforming assets to $50.6 million. Despite this, management stated the remaining $16.4 million carrying value of the relationship is supported by appraised real estate collateral.
Univest revised its full-year 2025 guidance, now expecting loan growth of approximately 1% to 3%, down from earlier projections. Net interest income growth is projected at 10% to 12%, an increase from previous guidance. Noninterest income growth is revised to 1% to 3%, and noninterest expense growth is now anticipated at 2% to 4%. The quarterly cash dividend was declared at $0.22 per share, and the company repurchased 172,757 shares during the quarter.
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