Univest Financial Corporation reported a decline in third-quarter net income for the period ended September 30, 2026. The company reported net income of $21.6 million, or $0.78 per diluted share, compared to $25.6 million, or $0.89 per diluted share, during the same period in the prior year. The decrease in earnings was attributed to an increase in the provision for credit losses, driven by elevated charge-offs during the quarter.
Asset quality metrics showed a rise in nonperforming assets, which totaled $51.4 million at September 30, 2026. This figure was up from $63.0 million at the end of the second quarter of 2026. The primary driver of this increase was a $14.4 million charge-off on a $28.3 million commercial loan relationship that was previously classified as nonaccrual. Additionally, a separate $6.9 million commercial loan relationship incurred a $2.7 million charge-off. Net loan and lease charge-offs for the quarter reached $17.6 million, compared to just $480,000 in the prior year.
Despite the credit headwinds, the company reported growth in its deposit base. Total deposits increased by $421.5 million, or 6.1%, from June 30, 2026. The growth was primarily driven by seasonal increases in public funds deposits and commercial deposits. Gross loans and leases decreased by $27.5 million from June 30, 2026, largely due to a $35.3 million payoff of a shared national credit relationship and the aforementioned charge-offs. However, year-over-year, gross loans and leases increased by $229.0 million, or 3.4%, driven by growth in construction and commercial real estate loans.
Net interest income for the third quarter of 2026 was $67.8 million, an increase of $6.4 million from the same period in 2025. The company reported a net interest margin of 3.42% for the quarter, which was negatively impacted by excess liquidity. Excluding the impact of excess liquidity, the margin would have been 3.55%. Noninterest income for the quarter was $22.3 million, with increases seen in investment advisory commissions and fees, as well as other service fee income.
On October 28, 2026, the company declared a quarterly cash dividend of $0.23 per share, payable on November 25, 2026, to shareholders of record as of November 11, 2026. During the quarter, the company repurchased 301,127 shares of common stock at an average price of $42.50 per share. As of September 30, 2026, 1,193,133 shares remained available for repurchase under the company's plan.
