Univest Earnings Fall to $0.78 a Share as Credit Provision Rises to $9 Million
Key Facts
Univest Financial reported net income of $21.6 million, or $0.78 per diluted share, in the third quarter of 2026, compared with $25.6 million and $0.89 per share in the same period of 2025. Earnings per share came in $0.20 below analysts’ estimate of $0.98, according to Investing.com. Revenue was $90.03 million, below the consensus estimate of $90.55 million. The company said the decline in net income was mainly tied to a higher provision for credit losses amid increased charge-off activity during the quarter. UVSP shares closed at $42.08 on Oct. 28, according to EL7 data.
The provision for credit losses was $9.0 million in the third quarter, up from $2.7 million in the second quarter of 2026 and $517,000 in the third quarter of 2025. Univest attributed the increase mainly to net charge-off activity during the quarter. The cases included a troubled commercial loan relationship that totaled $28.3 million on Sept. 30 and incurred a $14.4 million charge-off. The relationship had a specific reserve of $9.8 million. The company said a letter of intent to sell the business supports the relationship’s remaining book value.
By contrast, net interest income rose to $67.8 million, up 10.5% year over year and 2.3% from the second quarter of 2026. The company attributed the annual growth to higher average loan balances and a lower cost of funding. Net interest margin, on a tax-equivalent basis, was 3.42%, compared with 3.49% in the second quarter and 3.17% a year earlier. Univest said excess liquidity reduced the margin by about 13 basis points during the quarter. Net interest income therefore grew while the margin edged down from the previous quarter.
Gross loans and leases fell $27.5 million, or 0.4%, between June 30 and Sept. 30, 2026. The company attributed the decline mainly to a $35.3 million paydown in a syndicated national credit relationship and a $14.4 million charge-off on the commercial loan relationship. On the funding side, total deposits rose $421.5 million, or 6.1%, from the end of the second quarter. Univest said the increase came mainly from seasonal growth in public funds deposits and higher commercial deposits. That was partly offset by declines in consumer and brokered deposits.
Noninterest income rose 1.6% year over year to $22.3 million in the third quarter, while noninterest expenses increased 6.6% to $54.0 million. These figures show divergent trends in noninterest income and expenses during the period. Univest’s total assets were about $8.606 billion on Sept. 30, 2026, compared with $8.574 billion on Sept. 30, 2025. The company also reported repurchasing 301,127 shares during the quarter at an average price of $42.50 per share. The average cost was $42.96 per share, including brokerage fees and excise tax, while 1,193,133 shares remained available for repurchase at the end of September.
Looking ahead, Univest was scheduled to hold a conference call to discuss third-quarter results on Oct. 29, 2026, at 9:00 a.m. Eastern time. The company also announced a quarterly cash dividend of $0.23 per share on Oct. 28. The dividend is payable Nov. 25 to shareholders of record on Nov. 11, 2026. These dates set out the next steps for shareholders after the results announcement, with the conference call remaining the company’s announced date to discuss quarterly performance.