Univest Financial Raises Dividend 4.5% as Q1 EPS Jumps 24.7%
Univest Financial reported Q1 net income of $27.1 million, delivering $0.96 in diluted EPS, a 24.7% increase from the prior year; net interest margin expanded to 3.33% from 3.09% year-over-year. The board approved a quarterly dividend hike of 4.5% to $0.23 per share, payable May 20.
1. Q1 Financial Performance
Univest Financial generated net income of $27.1 million for the quarter ended March 31, 2026, up from $22.4 million a year earlier. Diluted earnings per share rose to $0.96 from $0.77, benefiting from $0.01 EPS from BOLI death benefits and offset by a $0.01 EPS restructuring charge.
2. Dividend Increase
The board declared a quarterly cash dividend of $0.23 per share, up $0.01 or 4.5% from the prior quarterly rate, payable May 20, 2026 to shareholders of record as of May 6, 2026. This marks the second consecutive annual dividend increase of $0.01 per share.
3. Loan and Deposit Trends
Gross loans and leases grew $107.2 million or 1.6% year-over-year, driven by construction, commercial real estate and home equity lending, while deposits rose $155.3 million or 2.3%, led by commercial deposits. Noninterest-bearing balances represented 21.7% of total deposits at quarter end.
4. Net Interest Income and Margin
Net interest income climbed 11.6% to $63.4 million year-over-year, supported by higher loan and cash balances and lower funding costs. Tax-equivalent net interest margin improved to 3.33% from 3.09%, with excess liquidity impact narrowing from 27 to 11 basis points compared to year-end levels.