Univest Financial stock hit by commercial loan charge-off

Published on 11/03/2026 at 01:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Univest Financial stock faces pressure after a commercial loan charge-off cut third-quarter earnings. Deposits and net interest income still grew.

Univest results and credit quality

A commercial loan charge-off weighed on third-quarter earnings, while net interest income increased year over year.
Deposits grew during the quarter, and management maintained its full-year loan-growth outlook.
Univest declared a quarterly dividend payable on November 25, 2026.

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Univest Financial Corporation reported third-quarter net income of 21.6 million USD, or 0.78 USD per diluted share, on October 28, 2026. The result fell from 25.6 million USD, or 0.89 USD per share, a year earlier, mainly because credit-loss provisions increased after elevated charge-offs, according to the company's third-quarter results release.

Credit losses weigh on earnings

A 14.4 million USD charge-off was tied to a 28.3 million USD commercial loan relationship. Net loan and lease charge-offs reached 17.6 million USD, while the provision for credit losses rose to 9.0 million USD. Nonperforming assets nevertheless declined to 51.4 million USD from 63.0 million USD at June 30, 2026.

Deposits and lending trends

Total deposits increased by 421.5 million USD, or 6.1 percent, from the second quarter, helped by seasonal public-funds balances and commercial deposits. Gross loans and leases fell by 27.5 million USD during the quarter, mainly because of a 35.3 million USD payoff and the commercial charge-off, but increased by 3.4 percent from a year earlier.

Net interest income rose 10.5 percent year over year to 67.8 million USD and increased 2.3 percent from the second quarter. The tax-equivalent net interest margin was 3.42 percent; excluding excess liquidity, the margin was 3.55 percent, up from 3.53 percent in the prior quarter.

Outlook and shareholder returns

Univest maintained its full-year loan-growth outlook of approximately 2 percent to 3 percent. The company declared a quarterly cash dividend of 0.23 USD per share, payable on November 25, 2026, to shareholders of record on November 11, 2026. It also repurchased 301,127 shares during the quarter.

Univest Financial Corporation provides banking, wealth-management, insurance, investment and equipment-financing services to individuals, businesses, municipalities and nonprofit organizations, primarily in the Mid-Atlantic region. The company is headquartered in Souderton, Pennsylvania, and operates through more than 50 offices and online channels.