On July 24, 2024, Univest Financial Corp (UVSP, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance that exceeded analyst estimates. Univest Financial Corp is engaged in domestic banking services for individuals, businesses, municipalities, and non-profit organizations. The bank operates through three segments: Banking, Wealth Management, and Insurance, with the majority of its revenue generated from the Banking segment.
Performance Overview
Univest Financial Corp reported net income of $18.1 million, or $0.62 diluted earnings per share, for the quarter ended June 30, 2024. This marks an increase from the $16.8 million, or $0.57 diluted earnings per share, reported for the same period in 2023. The reported earnings per share surpassed the analyst estimate of $0.51.
Key Financial Achievements
Univest Financial Corp's financial achievements for Q2 2024 include:
- Gross loans and leases increased by $105.8 million, or 1.6%, from March 31, 2024, and by $117.6 million, or 1.8%, from December 31, 2023.
- Total deposits grew by $90.0 million, or 1.4%, from March 31, 2024, and by $119.5 million, or 1.9%, from December 31, 2023.
- Net interest income was $51.0 million, a decrease of 6.1% from Q2 2023, reflecting continued pressure on the cost of deposits.
- Noninterest income increased by 5.8% to $21.0 million, driven by gains in mortgage banking activities and investment advisory fees.
Income Statement Highlights
Univest Financial Corp's income statement for Q2 2024 reveals:
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income | $18.1 million | $16.8 million |
| Diluted EPS | $0.62 | $0.57 |
| Net Interest Income | $51.0 million | $54.3 million |
| Noninterest Income | $21.0 million | $19.8 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Univest Financial Corp reported total assets of $7.86 billion, up from $7.60 billion a year earlier. The company maintained a strong liquidity position with $190.9 million in cash and cash equivalents. The allowance for credit losses on loans and leases was 1.28% of loans and leases held for investment, consistent with the previous year.
Asset Quality and Credit Losses
Nonperforming assets decreased to $36.6 million from $40.0 million at March 31, 2024. Net loan and lease charge-offs were $809 thousand for Q2 2024, compared to $1.4 million in the previous quarter. The provision for credit losses was $707 thousand, down from $1.4 million in Q1 2024.
Dividend and Share Repurchases
Univest declared a quarterly cash dividend of $0.21 per share, payable on August 21, 2024. During Q2 2024, the company repurchased 190,808 shares of common stock at an average price of $20.93 per share.
Conclusion
Univest Financial Corp's Q2 2024 performance demonstrates its resilience and ability to navigate economic challenges. The company's strong earnings, loan growth, and improved asset quality position it well for future growth. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Univest Financial Corp for further details.
