Univest Financial Corp. reported first-quarter 2026 net income of $27.1 million, up from $22.4 million a year earlier. Diluted earnings per share rose to $0.96 from $0.77, an increase of 24.7%.
The company also lifted its quarterly dividend to $0.23 a share from $0.22, a 4.5% increase. The new payout is payable May 20 to shareholders of record May 6.
Net interest income climbed to $63.4 million from $56.8 million in the first quarter of 2025, an increase of $6.6 million, or 11.6%. Compared with the fourth quarter of 2025, net interest income rose $816,000, or 1.3%.
Net interest margin, on a tax-equivalent basis, expanded to 3.33% from 3.09% a year earlier and 3.10% in the prior quarter. Excluding the impact of excess liquidity, the margin would have been 3.44%, versus 3.12% in the first quarter of 2025.
Gross loans and leases increased to a level $107.2 million above a year earlier, a gain of 1.6%, led by construction, commercial, commercial real estate and home equity lending. Compared with Dec. 31, 2025, gross loans and leases were up $25.4 million, or 0.4%.
Total deposits rose to $155.3 million above last year’s first quarter, a 2.3% increase, but fell $273.6 million, or 3.9%, from Dec. 31, 2025. Noninterest-bearing deposits totaled $1.5 billion, up from $1.4 billion at year-end, and represented 21.7% of total deposits, up from 20.2%.
At March 31, Univest held $222.4 million in cash and cash equivalents, with $3.7 billion of committed borrowing capacity, including $2.4 billion available, plus $472.0 million in uncommitted funding sources from correspondent banks.
Noninterest income increased to $24.1 million from $22.4 million a year earlier, a gain of $1.7 million, or 7.5%. Investment advisory commission and fee income rose $541,000, or 9.6%, to $6.2 million. Insurance commission and fee income increased $534,000, or 7.8%, to $7.4 million. Other service fee income climbed $334,000, or 12.3%, and net gain on mortgage banking activities increased $144,000, or 22.3%. BOLI income declined $627,000, or 32.0%, to $1.3 million.
Noninterest expense increased to $52.7 million from $49.4 million, up $3.3 million, or 6.8%. Salaries, benefits and commissions rose $2.6 million, or 8.5%, including a $1.3 million increase in salary expense and a $753,000 increase in medical claims expense. Marketing and advertising expense jumped $281,000, or 79.6%, while professional fees fell $120,000, or 6.7%.
The effective tax rate was 19.1%, compared with 18.7% in the first quarter of 2025.
Nonperforming assets increased to $41.2 million from $34.0 million a year earlier and from $37.8 million at Dec. 31, 2025. Net loan and lease charge-offs were $1.3 million, up from $1.1 million in the prior quarter but down from $1.7 million a year earlier. Provision for credit losses fell to $1.3 million from $2.3 million a year earlier and $3.1 million in the fourth quarter of 2025.
During the quarter, Univest repurchased 351,138 shares at an average price of $33.70 each, or $34.07 including brokerage fees and excise tax. It ended the quarter with 1,919,799 shares remaining under its repurchase authorization. Following these announcements, the company's shares moved 0.83%, and are now trading at a price of $33.98. For the full picture, make sure to review UNIVEST FINANCIAL Corp's 8-K report.
