Oct 29, 2026 earnings call — Q3 results and credit charge-off
Univest reported net income of $21.6 million, or $0.78 per share, and took a $14.4 million charge-off on one commercial loan.
Revenue $0.1B (est $0.1B) · EPS $0.78 (est $0.98)
Key quotes
"Our results for the quarter were negatively impacted by a $14.4 million charge-off associated with a commercial lending relationship, which had a specific reserve of $9.8 million at June 30th."
"Excluding the impact of excess liquidity, our core net interest margin increased two basis points to 3.55% from 3.53% in the second quarter."
"We are maintaining our outlook for loan growth of approximately 2%-3% for the full year."
Analyst Q&A 3
Interest margin outlook with rising rates
Q (Tim Switzer · KBW): He asked how more Fed rate hikes would affect the bank's interest margin and whether the bank is asset sensitive. He also asked about customer demand for higher deposit rates, competition across markets, and expansion and hiring in Western PA and Maryland.
A: They expect NIM to be relatively flat to slightly up, with core NIM increasing slightly from Q3 into Q4 and a couple of basis points of potential expansion. Competition for loans and deposits is increasing; customers expect higher rates, the bank acted on 25-month CDs and ran a checking marketing campaign, and market offers can be as high as $800. Expansion in Western PA and Maryland continues at a measured pace, and they will hire quickly for lift-out opportunities if they arise.
"So I think there's slight opportunity, but relatively flat to slightly up would be the expectation for NIM." — Brian Richardson (CFO)
Charge-off details, pipeline, deposit seasonality
Q (Matthew Breese · Stephens): He asked what happened with the charged-off loan, its asset class, and whether it signals broader problems. He also asked about the loan pipeline, prepay/payoffs, and how much of deposit growth was seasonal and how the loan-to-deposit ratio will settle.
A: The charged-off loan was a single C&I credit in a cyclical industry—about a "$70 million-$80 million" revenue company where management did not execute, and it is not indicative of the broader portfolio. Overall they are seeing stable and improving credit quality, expect criticized classifications to fall by "$35 million-$40 million" in Q4, and view asset quality as improving into year-end and next year. Pipelines are strong, mortgage balances decline because the bank now originates-and-sells, CRE focus is on construction commitments, and a significant portion of this quarter's deposit increase ("$420 million") was public funds that they expect to run out "$100 million-$200 million" each quarter until June next year as they manage toward a "95%-100%" loan-to-deposit ratio.
"Overall, we are seeing stable and improving credit quality." — Jeff Schweitzer (CEO·CHAIR)
Loan growth outlook and capital plans
Q (Manuel Navas · Piper Sandler): He asked whether loan growth could accelerate if deposit growth is consistent and whether the 2%-3% guide holds into next year. He also asked about rate impacts on CRE projects and an update on buybacks, M&A, dividends, and capital allocation.
A: If the bank can grow deposits consistently at attractive levels, they believe they can grow loans faster, but methodology changes on residential mortgages and CRE will limit growth versus historical levels. They do stress testing and discussions with borrowers; higher rates add stress to some projects, lenders may require additional borrower capital, and they are seeing some borrowers pause new deals. On capital deployment, they expect to remain active in buybacks, are open to strategic M&A, the board considers dividends and payout, and they want to keep dry powder for opportunities across the bank, wealth management, and insurance businesses.
"We're definitely going to be active in buybacks, but we also like to have dry powder in case any type of opportunities arose, whether it's on the bank side, the wealth management side or the insurance side." — Jeff Schweitzer (CEO·CHAIR)