Download PDF

1. Company Snapshot

1.a. Company Description

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in Pennsylvania.It operates through three segments: Banking, Wealth Management, and Insurance.The Banking segment provides a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations.


The Wealth Management segment offers investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships.The Insurance segment provides commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services.It serves customers primarily in Bucks, Berks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia, and York counties in Pennsylvania; and Atlantic, Burlington, and Cape May counties in New Jersey through 37 banking offices.


The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019.Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania.

Show Full description

1.b. Last Insights on UVSP

Univest Financial Corporation's recent performance was driven by strong earnings and revenue growth, with net income increasing to $20.0 million, or $0.69 diluted earnings per share, in the second quarter of 2025. The company's solid financial performance was also reflected in its inclusion in the Zacks Rank #1 (Strong Buy) value and income stocks lists. Additionally, Univest's announcement of its second quarter 2025 earnings call and subsequent release of earnings results demonstrate the company's transparency and commitment to shareholder communication.

1.c. Company Highlights

2. Univest Financial Corporation Beats Expectations with Strong Q3 2025 Earnings

Univest Financial Corporation reported a net income of $25.6 million or $0.89 per share for the third quarter of 2025, representing a 38% increase from the same quarter in the prior year. The growth was driven by a continued expansion in net interest income and margin, as well as prudent expense management. Revenue growth was robust, with net interest income driving the increase. The earnings per share (EPS) of $0.89 exceeded analyst estimates of $0.71, indicating a strong operational performance. The net interest margin (NIM) was 3.17%, down from 3.20% in the previous quarter due to increased excess liquidity.

Publication Date: Oct -27

📋 Highlights
  • Net Income Surge:: Q3 2025 net income rose 38% to $25.6 million ($0.89/share) from prior-year quarter.
  • Deposit Growth:: Deposits increased $635.5 million, driven by seasonal public funds.
  • Loan Production Strength:: YTD new commercial loan commitments hit $808 million vs. $659 million in 2024.
  • Net Interest Margin:: Core NIM expanded 9 bps to 3.17% despite excess liquidity reducing NIM from 3.20% in prior quarter.
  • Capital Deployment:: Buybacks prioritized for capital allocation; no significant regulatory capital growth planned.

Loan and Deposit Trends

Loan outstandings contracted by $15.7 million during the quarter, but production remained solid through the first 9 months of the year. New commercial loan commitments increased to $808 million compared to $659 million in the prior year, indicating a healthy loan pipeline. Deposits rose significantly by $635.5 million, predominantly due to seasonal public funds deposits. According to Mike Keim, Chief Operating Officer, the loan pipeline is healthy and has exceeded last year's levels, with a focus on construction commitments.

Noninterest Income and Expense

Noninterest income grew by $1.8 million or 8.8% compared to the third quarter of 2024. Noninterest expense increased by $2.1 million or 4.4% due to compensation costs, bank shares, taxes, and loan workout fees. The company expects loans to be relatively flat for the full year, with net interest income growth of 12% to 14% compared to 2024, indicating a stable outlook.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio close to its Price-to-Book (P/B) ratio of 0.95, it suggests that tangible assets are a significant portion of the company's valuation. The Dividend Yield of 2.78% is attractive, especially in a rising interest rate environment, though the impact of rate cuts is being monitored. Analysts estimate next year's revenue growth at 4.6%. The current P/E Ratio of 10.22 suggests that the stock is reasonably valued given its earnings growth. Univest Financial Corporation's management indicated that they are not looking to meaningfully grow their regulatory capital ratios and plan to deploy capital via buybacks.

Interest Rate Sensitivity and Capital Deployment

The company's balance sheet model is neutral to the first couple of Fed rate cuts, but deeper into the cut cycle, there could be potential pressure on net interest income, as approximately 1/3 of the loan book is floating rate. Brian Richardson stated that the company has a couple of hundred million dollars a quarter of CDs maturing and churning, presenting an opportunity for rate repricing. The company's appetite for M&A has not changed, but they are not actively pursuing deals due to a lack of attractive opportunities and internal focus on efficiency initiatives.

3. NewsRoom

Card image cap

Creative Planning Buys 13,939 Shares of Univest Corporation of Pennsylvania $UVSP

Nov -26

Source: defenseworld.net

Card image cap

Univest Corporation of Pennsylvania $UVSP Shares Acquired by Creative Planning

Nov -26

Source: defenseworld.net

Card image cap

Univest Financial Corporation (UVSP) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

Card image cap

Univest Financial Corporation to Hold Third Quarter 2025 Earnings Call

Oct -07

Source: globenewswire.com

Card image cap

Univest Financial Corporation (UVSP) Q2 2025 Earnings Call Transcript

Jul -24

Source: seekingalpha.com

Card image cap

Univest Financial Corporation Reports Second Quarter Results

Jul -23

Source: globenewswire.com

Card image cap

Best Value Stocks to Buy for July 15th

Jul -15

Source: zacks.com

Card image cap

Best Income Stocks to Buy for July 15th

Jul -15

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.49%)

6. Segments

Banking

Expected Growth: 3.5%

Univest Financial Corporation's 3.5% growth in banking is driven by strategic expansion into new markets, increased commercial lending, and a focus on digital transformation. Additionally, the corporation's strong risk management practices, diversified revenue streams, and cost discipline have contributed to its growth. Furthermore, investments in technology and talent have enhanced customer experience, driving deposit growth and fee income.

Wealth Management

Expected Growth: 3.8%

Univest Financial Corporation's 3.8% growth in Wealth Management is driven by increasing demand for retirement planning, investment services, and estate planning. Strong relationships with high-net-worth individuals, small business owners, and families contribute to the growth. Additionally, the corporation's expanded product offerings, including trust services and insurance solutions, have attracted new clients and increased assets under management.

Insurance

Expected Growth: 3.2%

Univest Financial Corporation's 3.2% growth in insurance is driven by increasing demand for protection products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, improved customer experience, and competitive pricing have contributed to its growth momentum.

Other

Expected Growth: 3.0%

Univest Financial Corporation's 3.0% growth is driven by strategic expansion into new markets, increased commercial lending, and a focus on digital banking. Additionally, the company's cost-saving initiatives and improved operational efficiency have contributed to its growth. Furthermore, Univest's strong capital position and disciplined risk management have enabled it to capitalize on opportunities and drive growth.

7. Detailed Products

Commercial Banking

Univest Financial Corporation offers a range of commercial banking services, including cash management, commercial lending, and treasury management solutions, to help businesses manage their finances and achieve their goals.

Retail Banking

Univest Financial Corporation provides personal banking services, including checking and savings accounts, credit cards, and personal loans, to help individuals manage their finances and achieve their personal goals.

Mortgage Banking

Univest Financial Corporation offers a range of mortgage banking services, including residential and commercial mortgage lending, to help individuals and businesses finance their real estate needs.

Wealth Management

Univest Financial Corporation provides wealth management services, including investment management, financial planning, and trust services, to help individuals and families achieve their long-term financial goals.

Insurance Services

Univest Financial Corporation offers a range of insurance services, including personal and commercial insurance, to help individuals and businesses manage risk and protect their assets.

8. Univest Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Univest Financial Corporation is moderate due to the presence of alternative financial institutions and online banking platforms.

Bargaining Power Of Customers

The bargaining power of customers is low for Univest Financial Corporation as customers have limited negotiating power and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Univest Financial Corporation as the company relies on a few large suppliers for its operations, but has some negotiating power due to its size.

Threat Of New Entrants

The threat of new entrants is low for Univest Financial Corporation due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Univest Financial Corporation due to the competitive nature of the banking industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.89%
Debt Cost 6.41%
Equity Weight 64.11%
Equity Cost 8.31%
WACC 7.63%
Leverage 55.97%

11. Quality Control: Univest Financial Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
United Bancshares

A-Score: 7.5/10

Value: 8.3

Growth: 4.3

Quality: 7.8

Yield: 6.0

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Richmond Mutual Bancorporation

A-Score: 7.2/10

Value: 7.6

Growth: 8.1

Quality: 5.1

Yield: 8.0

Momentum: 7.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Southern States Bancshares

A-Score: 6.9/10

Value: 6.8

Growth: 8.1

Quality: 7.6

Yield: 2.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Univest Financial

A-Score: 6.3/10

Value: 7.2

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
First US Bancshares

A-Score: 5.1/10

Value: 6.9

Growth: 5.3

Quality: 4.2

Yield: 4.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Codorus Valley

A-Score: 5.1/10

Value: 7.1

Growth: 6.0

Quality: 7.4

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.44$

Current Price

33.44$

Potential

-0.00%

Expected Cash-Flows