Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 65

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 65
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2024. The Corporation reported net income of $42.4 million, or $1.45 diluted earnings per share, for the six months ended June 30, 2025, compared to net income of $38.4 million, or $1.30 diluted earnings per share, for the six months ended June 30, 2024. 

The financial results for the six months ended June 30, 2025 included tax-free bank owned life insurance death benefits claims of $1.1 million, which represented $0.04 diluted earnings per share. The financial results for the six months ended June 30, 2024 included a $3.4 million net gain ($2.7 million after-tax), or $0.09 diluted earnings per share, generated from the sale of mortgage servicing rights associated with $591.1 million of serviced loans in the first quarter of 2024.

Results of Operations

Net Interest Income

Net interest income is the difference between interest earned primarily on loans, leases and investment securities and interest paid on deposits, borrowings, long-term debt and subordinated notes. Net interest income is the principal source of the Corporation’s revenue. Table 1 presents the Corporation’s average balances, tax-equivalent interest income, interest expense, tax-equivalent yields earned on average assets, cost of average liabilities, and shareholders' equity on a tax-equivalent basis for the three and six months ended June 30, 2025 and 2024. The tax-equivalent net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread represents the weighted average tax-equivalent yield on interest-earning assets less the weighted average cost of interest-bearing liabilities. The effect of net interest-free funding sources represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders' equity. Table 2 analyzes the changes in the tax-equivalent net interest income for the periods broken down by their rate and volume components. 

Three and six months ended June 30, 2025 versus 2024

Net interest income on a tax-equivalent basis for the three months ended June 30, 2025 was $60.0 million, an increase of $8.6 million, or 16.9%, compared to $51.3 million for the three months ended June 30, 2024. Net interest income on a tax-equivalent basis for the six