UNIVEST FINANCIAL Corp has recently released its 10-Q report. Univest Financial Corporation is the bank holding company for Univest Bank and Trust Co., with operations organized into Banking, Wealth Management and Insurance. The Banking unit serves individuals, businesses, municipalities and nonprofit organizations with deposit, lending, mortgage banking and equipment lease financing services, while Wealth Management provides advisory, trust and brokerage services and Insurance offers commercial, personal and employee benefit coverage plus human resources consulting. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.
In Item 2, management said second-quarter 2026 net income rose to $23.0 million from $20.0 million a year earlier, up 14.9%, while six-month net income increased to $50.0 million from $42.4 million, up 18.1%. Basic earnings per share were $0.83 for the quarter versus $0.69, and $1.79 for the first six months versus $1.46; diluted EPS was $0.82 versus $0.69 and $1.78 versus $1.45.
Return on average assets improved to 1.13% from 1.00% in the quarter and to 1.23% from 1.07% for the six-month period. Return on average equity increased to 9.67% from 8.82% in the quarter and to 10.62% from 9.47% for six months.
The quarter’s results included a $5.2 million pre-tax valuation adjustment on an other real estate owned property, or $4.1 million after tax, equal to $0.15 per diluted share. The property had been transferred to OREO in the second quarter of 2022 and was listed for sale in the second quarter of 2025. Offsetting that, Univest recorded $708,000 of tax-free bank-owned life insurance death benefit proceeds in the quarter, and $1.1 million for the first half.
For the six months, results also included a $427,000 restructuring charge, or $337,000 after tax, tied to the planned closure of two underutilized facilities: a financial center and a limited-purpose banking office. The company said the closures were part of its operating actions during the period.
Tax-equivalent net interest income rose to $66.7 million in the quarter from $60.0 million, up 11.3%, and to $130.6 million for the first half from $117.1 million, up 11.5%. The tax-equivalent net interest margin widened to 3.49% from 3.20% in the quarter and to 3.41% from 3.14% for six months.
Management said the improvement came from higher average balances of interest-earning assets and lower funding costs, partly offset by higher average balances of interest-bearing liabilities. Excess liquidity reduced the margin by about 4 basis points in the quarter and 8 basis points for the first half.
Average gross loans and leases increased to $7.01 billion in the quarter from $6.85 billion a year earlier. Commercial, financial and agricultural loans averaged $990.0 million, down from $1.01 billion, while real estate-commercial and construction loans averaged $3.89 billion, up from $3.69 billion. Residential real estate loans averaged $1.71 billion, compared with $1.73 billion.
On the funding side, average total time and interest-bearing deposits rose to $5.41 billion from $5.21 billion, while the cost of those deposits fell to 2.87% from 3.21%. Money market savings averaged $2.00 billion, up from $1.75 billion, and time deposits averaged $1.41 billion, down from $1.54 billion. Total borrowings declined to $264.2 million from $355.2 million, with subordinated notes falling to $98.9 million from $149.4 million.
Average noninterest-bearing deposits were $1.43 billion, slightly above $1.42 billion a year earlier. Total interest-bearing liabilities averaged $5.68 billion, up from $5.57 billion, while the overall cost of funds improved to 2.36% from 2.65%. Following these announcements, the company's shares moved 2.23%, and are now trading at a price of $45.19. For the full picture, make sure to review UNIVEST FINANCIAL Corp's 10-Q report.
