Breaking Down Univest Financial Corporation (UVSP) Financial Health: Key Insights for Investors

You're looking at Univest Financial Corporation (UVSP) right now, wondering if the regional bank story has legs in a volatile rate environment, and the third-quarter 2025 numbers give us a very clear answer: performance is strong, but you still need to watch asset quality like a hawk. The headline is a solid beat, with Q3 2025 diluted earnings per share (EPS) hitting $0.89, crushing the consensus estimate of $0.76 by over 17%. That strength is powered by a 15.3% year-over-year jump in Net Interest Income to $61.3 million, plus the company added $635.5 million in deposits from the prior quarter, which is a massive 9.7% increase-that's how you fund growth in a tight market, honestly. But still, the total nonperforming assets sitting at $52.1 million, which includes the fallout from that $23.7 million commercial loan placed on nonaccrual status earlier this year due to suspected fraud, means the credit cycle risk is defintely not gone. We need to break down how they managed that deposit growth and what that $32.00 median price target really means for your next move.

Revenue Analysis

Univest Financial Corporation (UVSP) is showing a solid revenue trajectory, primarily driven by its core banking operations and strong Net Interest Income (NII). The company is on track for an estimated total revenue of approximately $323 million for the full 2025 fiscal year, a defintely healthy increase over the prior year.

Your focus should be on the composition of this revenue, which tells the real story of their financial health and market positioning. For a regional bank holding company like Univest Financial Corporation, revenue breaks down into two main components: Net Interest Income and Noninterest Income (fee-based services).

Primary Revenue Sources and Growth Drivers

Net Interest Income (NII)-the difference between interest earned on assets like loans and interest paid on liabilities like deposits-is the powerhouse. For the third quarter of 2025, NII surged to $61.3 million, marking a strong 15.3% year-over-year (YoY) increase. This growth is a direct result of higher average loan balances and improved yields on interest-earning assets, which is exactly what you want to see in a rising rate environment. The company has guided for full-year 2025 NII growth to land between 12% and 14%, which is a clear signal of management's confidence in their core lending business.

Noninterest Income, which includes fees from wealth management, insurance, and service charges, contributed $21.9 million in Q3 2025. This segment saw a more modest, but still positive, 8.8% increase YoY, which helps diversify the revenue base. This is a stable, fee-generating engine.

• NII is the main driver, with a 15.3% Q3 2025 YoY jump.
• Noninterest Income provides stability, growing 8.8% in Q3 2025.
• Full-year revenue is estimated at $323 million.

Segment Contribution and Near-Term Trends

Here's the quick math for Q3 2025: NII accounted for approximately 73.6% of the total revenue of $83.25 million, with Noninterest Income making up the remaining 26.4%. This concentration in NII means Univest Financial Corporation's performance is highly sensitive to interest rate movements and loan demand, so watch the net interest margin (NIM) closely. The core NIM actually expanded to 3.33% in Q3 2025, a positive sign of efficient funding.

The business segments show a mixed picture. The Banking segment is the primary growth engine, but the Wealth Management segment's pre-tax income showed a slight contraction in Q3 2025 compared to the prior year. This suggests that while core lending is strong, the fee-based advisory business faces headwinds, perhaps from market volatility or competition. The Noninterest Income breakdown reveals where the fee strength is coming from:

A significant change to note is the year-over-year revenue growth rate. Total revenue is projected to be around $323 million for 2025, up from $290 million in 2024, representing an approximate 11.4% increase. This is a strong top-line expansion for a regional bank. Still, the company is managing a seasonal surge in deposits, which will reverse in Q4 2025, impacting excess liquidity. For a deeper dive into who is investing in this growth story, check out Exploring Univest Financial Corporation (UVSP) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking for a clear picture of Univest Financial Corporation (UVSP)'s earnings power, and the data from the 2025 fiscal year tells a story of improving core profitability, even if the headline margins still trail the industry average. The direct takeaway is that UVSP is successfully widening its core net interest margin (NIM) and aggressively managing noninterest expenses, driving a 38% year-over-year increase in net income for the third quarter.

For a bank, we look past traditional gross profit and focus on the Net Interest Margin (NIM), which is the bank's core 'gross' engine. For the third quarter of 2025, UVSP reported a NIM of 3.17%, but the more telling metric is the core NIM, which excludes temporary excess liquidity, expanding to 3.33%. This expansion is a key indicator of pricing power and effective balance sheet management in a competitive rate environment.

Margin Analysis and Industry Comparison

When we look at the Trailing Twelve Months (TTM) margins, Univest Financial Corporation (UVSP) is still playing catch-up with the broader financial services industry, but the trend is positive. The operational efficiency improvements suggest this gap should narrow over time. Here's the quick math on TTM profitability through the most recent quarter:

The TTM Net Profit Margin of 28.13% means nearly 28 cents of every dollar of revenue converts to profit, which is defintely solid, but the industry average of 34.52% shows room for improvement. Still, the quarterly numbers are very strong. Q3 2025 net income hit $25.6 million, a significant jump from the prior year.

Operational Efficiency and Cost Management

Operational efficiency is where UVSP shines, showing clear execution on cost control. The Efficiency Ratio-which measures noninterest expense as a percentage of total revenue-improved to 60.2% in Q3 2025, down from 65.7% a year ago. This means the company is spending less to generate the same amount of revenue. For context, to generate the $83.2 million in Q3 2025 total revenue (net interest income of $61.3 million plus noninterest income of $21.9 million), the estimated noninterest expense was approximately $50.09 million.

• Improve efficiency: Ratio dropped to 60.2% in Q3 2025.
• Control expenses: Noninterest expense was up only 2% year-to-date through Q3 2025.
• Grow revenue: Net interest income is projected to grow 12% to 14% for the full year 2025.

This focus on expense management, combined with strong net interest income growth, is the core driver of the improved profitability trend. The company is extracting more profit from each dollar of revenue, which is the best kind of growth. You can dive deeper into the forces behind this performance by Exploring Univest Financial Corporation (UVSP) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You want to know how Univest Financial Corporation (UVSP) is funding its operations, and the short answer is: mostly through equity, which is defintely a good sign for a bank. Their capital structure shows a conservative, well-managed approach to leverage, especially when you look at the industry benchmark.

As of the second quarter of 2025, Univest Financial Corporation's debt-to-equity (D/E) ratio stood at a healthy 0.42. This means for every dollar of shareholder equity, the company uses only about 42 cents of debt to finance its assets. That's a low leverage profile for a financial institution, whose business model inherently involves borrowing and lending.

Here's the quick math on their core leverage components from the second quarter of 2025, with all figures in millions of U.S. Dollars:

• Total Stockholders Equity: $916.733 million
• Total Debt (Short-Term & Long-Term): $385.888 million (calculated from $6.271M + $379.617M)

Debt Profile and Industry Comparison

When we break down the debt, we see a clear preference for long-term financing. The total debt of $385.888 million is composed of only $6.271 million in short-term obligations, with the bulk being $379.617 million in long-term debt and capital lease obligations. This structure reduces near-term refinancing risk. What this estimate hides, however, is the constant management of that long-term debt to optimize the cost of capital.

To be fair, a D/E ratio of 0.42 is notably lower than the average for the Regional Banks industry, which typically sits around 0.50 to 0.57. This suggests Univest Financial Corporation is operating with more capital strength than many of its peers, prioritizing stability over aggressive, debt-fueled growth. That's a realist's strategy in an uncertain rate environment.

Recent Capital Structure Actions

The company is actively managing its debt to both reduce cost and maintain its regulatory capital position. In a very recent move in November 2025, Univest Financial Corporation announced the closing of a $50.0 million private placement of fixed-to-floating rate subordinated notes due in 2035.

This new debt, which carries a fixed rate of 6.00% for the first five years, is specifically structured to qualify as Tier 2 capital for regulatory purposes. The proceeds are earmarked to redeem $80.0 million of outstanding callable subordinated notes that were due in 2030. This action is a clear signal:

• Optimizes Debt: Swapping a larger, shorter-term debt for a smaller, longer-term one.
• Manages Rate Risk: Locking in a fixed rate (6.00%) before shifting to a floating rate (Secured Overnight Financing Rate, or SOFR, plus 261.5 basis points) later on.
• Maintains Capital: Ensuring the new debt qualifies as a key component of their regulatory capital base.

The strategy is to use debt sparingly and strategically, mainly for regulatory capital enhancement and to lock in favorable long-term financing costs. This balance between debt and equity funding is prudent, supporting the company's Mission Statement, Vision, & Core Values of Univest Financial Corporation (UVSP).

Liquidity and Solvency

You need to know how easily Univest Financial Corporation (UVSP) can meet its short-term obligations, and the picture for Q3 2025 is one of deliberate liquidity building, but with a few underlying deposit risks. The firm is holding a substantial cash buffer, indicating a conservative stance in the current rate environment.

For a bank like Univest Financial Corporation (UVSP), the typical Current Ratio (Current Assets / Current Liabilities) and Quick Ratio are not the right tools; their primary assets are loans, and their main short-term liabilities are deposits. Instead, we look at highly liquid assets against deposits. As of September 30, 2025, the company reported Cash and Cash Equivalents of a substantial $816.7 million. Here's the quick math: against total deposits of approximately $7.27 billion (calculated from the unprotected deposit ratio), this cash buffer represents an approximate 11.23% cash-to-deposit ratio. This is a solid, defensive position.

• Cash-to-Deposit Ratio (Q3 2025): 11.23%.
• Committed Borrowing Capacity: $3.6 billion.
• Available Committed Borrowing Capacity: $1.8 billion.

The working capital trend, which for a bank is essentially the stability and cost of its funding base, shows some volatility. In the first quarter of 2025, total deposits fell by $100.8 million, but this was largely seasonal, driven by public funds. By the third quarter, deposits had rebounded, increasing by $635.5 million, again primarily due to these seasonal public funds. This seasonal swing is something to defintely keep an eye on, as it creates short-term funding pressure each year. Still, the Net Interest Margin (NIM) has been improving, reaching 3.17% in Q3 2025, which helps the profitability of that funding base.

Looking at the cash flow statement (CFS), the Trailing Twelve Months (TTM) data ending Q3 2025 provides a clear operational view:

The primary liquidity strength is the sheer amount of available funding. Univest Financial Corporation (UVSP) has its $816.7 million in cash and equivalents, plus an additional $1.8 billion in available committed borrowing capacity. That's a huge cushion. The main liquidity concern is the composition of its funding: unprotected deposits (deposits exceeding FDIC insurance, internal, or collateralized accounts) totaled $1.6 billion, representing 22.0% of total deposits at September 30, 2025. While this percentage is within a reasonable range for a regional bank, it is the segment most sensitive to market sentiment and rate hikes. This is why management is likely building that cash buffer. You can read more about the overall picture in Breaking Down Univest Financial Corporation (UVSP) Financial Health: Key Insights for Investors.

Valuation Analysis

You want to know if Univest Financial Corporation (UVSP) is a buy, a hold, or a sell right now. Looking at the latest 2025 fiscal year data, the stock appears to be fairly valued, leaning toward slightly undervalued, especially when you consider its book value. The analyst consensus is a clear Hold, suggesting limited immediate upside but solid stability.

As a seasoned analyst, I look past the headlines to the core metrics. For a regional bank like Univest Financial Corporation (UVSP), the Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios are the most telling valuation tools. The Enterprise Value-to-EBITDA (EV/EBITDA) is less relevant here, as banks are valued differently due to their capital structure and regulatory environment. Here's the quick math on where the company stands today, in November 2025.

• Price-to-Earnings (P/E) Ratio: The trailing twelve months (TTM) P/E is 10.45. This is just below the industry median for banks, which suggests the stock is trading at a reasonable, if not slightly discounted, multiple relative to its earnings.
• Price-to-Book (P/B) Ratio: This is the most compelling figure. The P/B ratio is currently 0.94. Honestly, a P/B below 1.0 often signals that the market is valuing the company for less than the net value of its assets, which can be an attractive entry point for a quality bank.

What this estimate hides is the market's concern over interest rate cycles, but still, trading at less than book value is defintely something to pay attention to. For a deeper dive into the company's operational strength, you should check out Breaking Down Univest Financial Corporation (UVSP) Financial Health: Key Insights for Investors.

Stock Price and Dividend Health

The stock price trend over the last 12 months shows Univest Financial Corporation (UVSP) is trading near the high end of its range, but not quite at the peak. The stock's 52-week range has been from a low of $22.83 to a high of $32.86. The latest closing price, as of November 21, 2025, was $31.34. The all-time high was set back in July 2025 at $32.21, so the stock has held up well, but the easy money from the recovery move is likely gone.

The dividend profile is healthy, which is crucial for a bank investment. The annual dividend is currently $0.88 per share, which translates to a dividend yield of approximately 2.94%. More importantly, the payout ratio sits at a very sustainable 29.20%. This low payout ratio means the dividend is well-covered by earnings, and the company has plenty of capital left over for growth or to cushion against economic slowdowns. That's a sign of management discipline.

Analyst Consensus and Actionable Takeaway

The street consensus for Univest Financial Corporation (UVSP) is currently a firm Hold. This isn't a strong buy signal, but it's not a panic button either. Analysts have set an average 12-month price target of $32.50.

Here's how the analyst targets stack up against the current price:

The average target of $32.50 only represents a modest upside of about 3.7% from the current price, plus the dividend yield. So, the clear action is this: if you already own it, Hold. If you are looking to start a position, wait for a pullback closer to the 52-week average price of $29.94 to build a better margin of safety.

Risk Factors

You're looking for the clear-eyed view on Univest Financial Corporation (UVSP), and the near-term risks boil down to credit quality management and the external pressure on core loan growth. The company is defintely taking steps to manage its capital structure, but the credit cycle and market competition remain the biggest variables for 2025 performance.

Credit Quality and Event-Driven Provisioning

The most immediate and quantifiable risk for a bank is credit quality, and Univest Financial Corporation's 2025 guidance reflects this. The full-year provision for credit losses is projected to be between $11 million and $13 million, which is a significant allowance for potential issues. This provision is explicitly 'event-driven,' meaning a single, large problem loan can skew the numbers fast. We saw this in the second quarter of 2025, when a single nonaccrual commercial loan relationship led to a substantial charge-off of $7.3 million, pushing the quarterly provision to $5.7 million. That's a sharp reminder that concentration risk is real. The allowance for credit losses coverage ratio stood at 1.28% of loans at September 30, 2025, a figure that needs constant monitoring.

Here's the quick math: one bad loan can wipe out a quarter's worth of expected provision. Your focus should be on the trend in non-performing assets.

External and Strategic Headwinds

Univest Financial Corporation faces two key external risks that directly impact revenue streams: market competition and regulatory uncertainty. On the strategic side, loan growth is a struggle. While new commercial loan commitments were strong at $808 million year-to-date through September 30, 2025, total loan outstandings actually contracted by $41.1 million over the same period due to high early payoffs and paydowns. The market is competitive, so retaining assets is hard.

Also, the company's noninterest income is vulnerable to government actions. Management noted that a continued government shutdown could prevent them from originating and selling Small Business Administration (SBA) loans, which poses a risk to their 2025 noninterest income growth guidance of 1% to 3% off the 2024 base of $84.5 million. Plus, the elevated interest rate environment and competition are already pressuring net gains from mortgage banking.

• Competition for loans and deposits remains intense.
• Uncertainty in regulatory environments affects SBA loan sales.
• High paydowns are shrinking the loan portfolio despite new production.

Mitigation and Financial Resilience Actions

What this estimate hides is the active steps Univest Financial Corporation is taking to fortify its balance sheet and manage its capital. The company recently closed a $50.0 million private placement of fixed-to-floating rate subordinated notes in November 2025. This is a smart capital management move, intended to redeem $80.0 million of higher-cost callable subordinated notes and to qualify as Tier 2 capital for regulatory purposes. The new notes carry a fixed interest rate of 6.00% for the first five years, which locks in a predictable cost of funds in a volatile rate environment.

On the operational front, they are actively managing problem assets, including pursuing eviction proceedings on a $1.4 million residential Other Real Estate Owned (OREO) asset. This is a necessary, albeit slow, process of cleaning up the balance sheet. For a deeper dive into the company's overall financial picture, you can check out the full post: Breaking Down Univest Financial Corporation (UVSP) Financial Health: Key Insights for Investors.

Next step: Portfolio Manager: Model the impact of a $10 million single-event charge-off on the 2026 earnings per share (EPS) forecast by the end of the week.

Growth Opportunities

You're looking for a clear map of where Univest Financial Corporation (UVSP) is heading, and the picture for 2025 is one of disciplined, margin-focused growth, not explosive expansion. The core takeaway is that Univest Financial Corporation is successfully driving Net Interest Income (NII) growth while managing a challenging rate environment, which is the real engine here.

The analyst consensus pegs full-year 2025 revenue at about $319.60 million and expects earnings per share (EPS) to land around $2.82. That's a decent, steady performance, but the real story is in the NII. Management forecasts net interest income growth of 12% to 14% over 2024, a significant driver of profitability. Loan growth, to be fair, is guided to be relatively flat for the year compared to late 2024, so the profit is coming from better margin management, not just volume.

Here's the quick math on their top-line strategy:

• Net Interest Income: Expected growth of 12% to 14%.
• Noninterest Income: Projected growth of 1% to 3% off a 2024 base of $84.5 million.
• Loan Portfolio: Guided to be flat for 2025.

The company is defintely prioritizing margin over pure asset expansion right now.

The key growth drivers are less about big, splashy acquisitions-though they've historically used M&A to build density-and more about deepening their existing Mid-Atlantic footprint and service offerings. This is a community bank model that has successfully diversified its revenue streams, which is a competitive advantage in a volatile banking sector. The noninterest income growth, though modest at 1% to 3%, is being fueled by increases in higher-margin areas like investment management fees and treasury management services.

On the strategic side, Univest Financial Corporation is focused on two clear actions:

• Capital Optimization: They completed a $50.0 million subordinated debt offering in November 2025. This move is about optimizing their capital structure, specifically to redeem older, callable notes, which helps manage their long-term funding costs.
• Core Business Deepening: There's a clear strategic push to enhance the deposit base and expand services for small businesses, aiming to lower the loan-to-deposit ratio to a more sustainable 95%-100% range.

This is a solid, defensive strategy that sets them up well for the next cycle. What this estimate hides, however, is the risk from intensifying deposit competition and the need for faster digital transformation, both of which could compress net interest margins if not managed aggressively.

Their competitive position is reinforced by strong profitability metrics; the company posted a net profit margin of 28.1%, an improvement from 25.4% the prior year. Plus, the stock is currently trading at a price-to-earnings (P/E) ratio of 10.3x, which is lower than the US Banks industry average of 11.2x, suggesting a value play for investors who believe their modest growth forecasts are achievable. You can dive deeper into the fundamentals in this full analysis: Breaking Down Univest Financial Corporation (UVSP) Financial Health: Key Insights for Investors.

To summarize the financial health drivers, here is a quick look at the 2025 guidance and key metrics:

Next Step: Your team should model the impact of a 50 basis point rise in funding costs against the 2025 NII guidance by next Wednesday. Owner: Portfolio Manager.