Univest Financial Q3 net income falls on higher credit loss provision

By Reuters News


Overview

  • U.S. regional bank's Q3 net income and EPS declined yr/yr due to higher credit loss provisions

  • Q3 net interest income rose 10.5% yr/yr, driven by higher loan balances and lower funding costs

  • Company repurchased 301,127 shares during Q3


Outlook

  • Company did not provide specific guidance for future quarters or the full year


Result Drivers

  • LOAN GROWTH & LOWER FUNDING COSTS - Higher average loan balances and reduced rates paid on interest-bearing liabilities drove net interest income increase

  • COMMERCIAL LOAN PAYOFFS & CHARGE-OFFS - Decrease in gross loans and leases was mainly due to payoff of a shared national credit and a large commercial loan charge-off

  • CREDIT LOSS PROVISION - Higher provision for credit losses primarily reflected increased net charge-offs during the quarter


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 EPS

$0.78

Q3 Net Interest Income

$67.80 mln

Q3 Net Interest Margin

3.42%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Univest Financial Corp is $46.00, about 8.5% above its October 27 closing price of $42.40

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Oct 27 - First Commonwealth misses Q3 profit estimates on higher costs, credit loss provisions

  • Oct 27 - National Bank Holdings posts Q3 loss on credit provisions

  • Oct 28 - Hope Bancorp Q3 net income rises 16% year over year


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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