Univest Financial reported third-quarter 2026 net income of $21.6 million, down from $25.6 million a year earlier, as a higher provision for credit losses weighed on results amid elevated charge-offs. Diluted earnings per share fell to 78 cents from 89 cents.
The Souderton, Pennsylvania-based bank holding company also reported higher net interest income and deposit growth, while loans edged down from the prior quarter.
- Earnings: Net income declined about 16% year over year. Univest attributed the decrease primarily to an increase in credit-loss provisions associated with elevated charge-offs.
- Credit and loans: Gross loans and leases fell $27.5 million, or 0.4%, from June 30. The decline reflected a $35.3 million payoff on a shared national credit relationship and a $14.4 million charge-off tied to a $28.3 million commercial loan relationship.
- Loan growth over longer periods: Loans and leases were up $99.6 million, or 1.4%, from year-end 2025 and $229.0 million, or 3.4%, from a year earlier. Growth in construction and commercial real estate lending was partly offset by declining residential mortgage loans.
- Lending strategy: Univest said the mortgage decline is consistent with its focus on customers who use a broader range of the bank’s services, a strategy intended to improve its loan-to-deposit ratio.
- Deposits: Total deposits rose $421.5 million, or 6.1%, from the second quarter and $267.2 million, or 3.8%, from year-end 2025. Seasonal public-funds inflows and growth in commercial deposits drove the increases, partly offset by declines in consumer and brokered deposits. Compared with a year earlier, deposits were up $136.4 million, or 1.9%.
- Net interest income: The bank generated $67.8 million, up $6.4 million, or 10.5%, from the third quarter of 2025 and $1.5 million, or 2.3%, from the second quarter of 2026.
The quarter showed stronger net interest income and deposit growth alongside weaker earnings and elevated credit costs. The loan decline versus the prior quarter reflected both a large loan payoff and a charge-off, while lending growth since year-end remained positive.