UNIVEST FINANCIAL Corp
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
UVSP$40.47+0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-28.
0000102212-26-000028
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0000102212-26-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 136 previous paragraphs and 141 current paragraphs.
89 unchanged; 41 reworded; 7 added; 6 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 12 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
•Risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors;
Current report
The financial results for the three months ended June 30, 2026 included a pre-tax charge of $5.2 million ($4.1 million after-tax), or $0.15 diluted earnings per share, related to a valuation adjustment on an other real estate owned (OREO) property. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell. The property was initially transferred to OREO during the three months ended June 30, 2022 and was listed for sale during the quarter ended June 30, 2025. The financial results for the three months ended June 30, 2026 also included tax-free bank owned life insurance (BOLI) death benefit proceeds of $708 thousand, which represented $0.03 diluted earnings per share.
Current report
Noninterest income for the three months ended June 30, 2026 was $18.1 million, a decrease of $3.4 million, or 15.8%, from the three months ended June 30, 2025. Noninterest income for the six months ended June 30, 2026 was $42.2 million, a decrease of $1.7 million, or 3.9%, from the six months ended June 30, 2025.
Current report
Net loss on the sale and write-down of OREO increased $5.2 million for the three and six months ended June 30, 2026 from the comparable periods in the prior year due to the valuation adjustment recorded during the quarter as previously mentioned.
Current report
Noninterest expense for the three months ended June 30, 2026 was $53.1 million, an increase of $2.8 million, or 5.5%, from the three months ended June 30, 2025. Noninterest expense for the six months ended June 30, 2026 was $105.8 million, an increase of $6.1 million, or 6.2%, from the six months ended June 30, 2025.
Current report
Salaries, benefits and commissions increased $1.7 million, or 5.3%, for the three months ended June 30, 2026 and $4.3 million, or 6.9%, for the six months ended June 30, 2026 from the comparable periods in the prior year. The increases were primarily driven by higher salary expense of $1.3 million and $2.6 million, respectively, due to annual merit increases, as well as increased medical claims expense of $375 thousand and $1.1 million, respectively.
Current report
Professional fees increased $432 thousand, or 27.1%, for the three months ended June 30, 2026 and $312 thousand, or 9.2%, for the six months ended June 30, 2026 from the comparable periods in the prior year, primarily due to increased marketing consultant fees.
Removed paragraphs (6)
Previous report
•System failures or cyber-security breaches of our information technology infrastructure and those of our third-party service providers;
Previous report
Noninterest income for the three months ended March 31, 2026 was $24.1 million, an increase of $1.7 million, or 7.5%, from the three months ended March 31, 2025.
Previous report
Other income increased $587 thousand, or 239.6%, for the three months ended March 31, 2026 from the comparable period in the prior year. Fees on risk participation agreements for interest rate swaps increased $219 thousand due to increased demand. Additionally, income on other real estate owned for the three months ended March 31, 2025 included a one-time expense of $254 thousand related to building repairs.
Previous report
Noninterest expense for the three months ended March 31, 2026 was $52.7 million, an increase of $3.3 million, or 6.8%, from the three months ended March 31, 2025.
Previous report
Salaries, benefits and commissions increased $2.6 million, or 8.5%, for the three months ended March 31, 2026 from the comparable period in the prior year, primarily driven by higher salary expense of $1.3 million. Additionally, medical claims expense increased by $753 thousand, or 48.8%. The Corporation maintains a self-insured medical plan and is responsible for claim costs up to the stop loss limit. This results in expense volatility based on the timing and magnitude of claims.
Previous report
Professional fees decreased $120 thousand, or 6.7%, for the three months ended March 31, 2026 from the comparable period in the prior year, primarily due to reduced consultant fees.
Reworded paragraphs (41)
Previous wording
(All dollar amounts presented in tables are in thousands, except per share data. “BP” equates to “basis points”; "NM" equates to “not meaningful”; “—” equates to “zero” or “doesn’t round to a reportable number”; and “N/A” equates to “not applicable.” Certain prior period amounts have been reclassified to conform to the current-year presentation.)
Current wording
(All dollar amounts presented in tables are in thousands, except per share data. “BP” equates to “basis points”; "N/M" equates to “not meaningful”; “—” equates to “zero” or “doesn’t round to a reportable number”; and “N/A” equates to “not applicable.” Certain prior period amounts have been reclassified to conform to the current-year presentation.)
Previous wording
This report may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "may," "will," "could," "should," "would," "believe," "anticipate," "plan," "estimate," "expect," "project," "target," and "goal," the negative of these terms and other similar expressions are intended to identify forward-looking statements, but are not the exclusive way to identify such statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include but are not limited to: statements of goals, intentions and expectations; statements regarding business plans, prospects, growth and operating strategies; statements regarding the quality, growth and composition of loan, investment and deposit portfolios; statements regarding our financial performance, financial condition and liquidity; and estimates of our risks and future credit provision and noninterest expenses. These forward-looking statements are based on our current beliefs and expectations and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to certain risks, uncertainties and assumptions with respect to future business strategies and decisions that are subject to change, including but not limited to those set forth below:
Current wording
This report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used or incorporated by reference in disclosure documents, the words "may," "will," "could," "should," "would," "believe," "anticipate," "plan," "estimate," "expect," "project," "target," and "goal," the negative of these terms and other similar expressions are intended to identify forward-looking statements, but are not the exclusive way to identify such statements. These forward-looking statements may include but are not limited to: statements of goals, intentions and expectations; statements regarding business plans, prospects, growth and operating strategies; statements regarding the quality, growth and composition of loan, investment and deposit portfolios; statements regarding our financial performance, financial condition and liquidity; and estimates of our risks and future credit provision and noninterest expenses. These forward-looking statements are based on our current beliefs and expectations and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to certain risks, uncertainties and assumptions with respect to future business strategies and decisions that are subject to change, including but not limited to those set forth below:
Previous wording
•General economic conditions, either nationally or in our market areas, that are worse than expected, included as a result of employment levels and labor shortages, and the effect of a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;
Current wording
•General economic conditions, either nationally or in our market areas, which are worse than expected, including as a result of employment levels and labor shortages, and the effect of a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;
Previous wording
•The imposition of tariffs or other domestic or international governmental policies and any retaliatory responses;
Current wording
•The imposition of tariffs or other domestic or international governmental policies, trade restrictions and any retaliatory measures impacting our borrowers and the broader economy;
Previous wording
•The impact of a potential federal government shutdown;
Current wording
•The impact of a potential federal government shutdown, debt ceiling impasses or fiscal uncertainty;
Previous wording
•Our ability to attract and retain key employees;
Current wording
•Our ability to attract, develop and retain key employees;
Previous wording
The financial results for the three months ended March 31, 2026 included tax-free bank owned life insurance (BOLI) death benefit proceeds of $372 thousand, which represented $0.01 diluted earnings per share. In addition, the financial results for the quarter included a $427 thousand restructuring charge ($337 thousand after-tax), or $0.01 diluted earnings per share, related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office. The financial results for the three months ended March 31, 2025 included tax-free BOLI death benefit proceeds of $1.0 million, which represented $0.04 diluted earnings per share.
Current wording
The financial results for the six months ended June 30, 2026 included tax-free BOLI death benefit proceeds of $1.1 million, which represented $0.04 diluted earnings per share. In addition, the financial results for the six months ended June 30, 2026 included a $427 thousand restructuring charge ($337 thousand after-tax), or $0.01 diluted earnings per share, related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office. The financial results for the six months ended June 30, 2025 included tax-free BOLI death benefit proceeds of $1.1 million, which represented $0.04 diluted earnings per share.
Previous wording
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 months ended March 31, 2026 and 2025. 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.
Current wording
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, 2026 and 2025. 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.
Previous wording
Net interest income on a tax-equivalent basis for the three months ended March 31, 2026 was $63.8 million, an increase of $6.7 million, or 11.7%, compared to $57.2 million for the three months ended March 31, 2025. The increase in tax-equivalent net interest income for the three months ended March 31, 2026 compared to the comparable period in the prior year was driven by higher average balances of loans and cash and cash equivalents, as well as a reduction in our cost of funds offset by higher average balances of interest-bearing liabilities.
Current wording
Net interest income on a tax-equivalent basis for the three months ended June 30, 2026 was $66.7 million, an increase of $6.8 million, or 11.3%, compared to $60.0 million for the three months ended June 30, 2025. Net interest income on a tax-equivalent basis for thesix months ended June 30, 2026 was $130.6 million, an increase of $13.5 million, or 11.5%, compared to $117.1 million for thesix months ended June 30, 2025. The increase in tax-equivalent net interest income for the three andsix months ended June 30, 2026 compared to the comparable periods in the prior year was driven by higher average balances of interest-earning assets, and a reduction in our cost of funds, partially offset by higher average balances of interest-bearing liabilities.
Previous wording
The net interest margin, on a tax-equivalent basis, was 3.33% for the three months ended March 31, 2026, compared to 3.09% for the three months ended March 31, 2025. Excess liquidity reduced net interest margin by approximately 11 basis points for the three months ended March 31, 2026, and approximately three basis points for the three months ended March 31, 2025.
Current wording
The net interest margin, on a tax-equivalent basis, was 3.49% and 3.41% for the three and six months ended June 30, 2026, respectively, compared to 3.20% and 3.14% for the three and six months ended June 30, 2025, respectively. Excess liquidity reduced net interest margin by approximately four and eight basis points for the three and six months ended June 30, 2026, respectively, and approximately four basis points for the three and six months ended June 30, 2025.
Previous wording
Net interest income includes net deferred costs amortization of $793 thousand and $554 thousand for the three months ended March 31, 2026 and 2025, respectively.
Current wording
Net interest income includes net deferred costs amortization of $801 thousand and $689 thousand for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
The provision for credit losses for the three months ended March 31, 2026 and 2025 was $1.3 million and $2.3 million, respectively. The following table details information pertaining to the Corporation’s allowance for credit losses on loans and leases as a percentage of loans and leases held for investment at the dates indicated.
Current wording
The provision for credit losses for the three months ended June 30, 2026 and 2025 was $2.7 million and $5.7 million, respectively. The provision for credit losses for the six months ended June 30, 2026 and 2025 was $4.0 million and $8.0 million, respectively. The following table details information pertaining to the Corporation’s allowance for credit losses on loans and leases as a percentage of loans and leases held for investment at the dates indicated.
Previous wording
The following table presents noninterest income for the three months ended March 31, 2026 and 2025:
Current wording
The following table presents noninterest income for the three and six months ended June 30, 2026 and 2025:
Previous wording
Investment advisory commission and fee income increased $541 thousand, or 9.6%, for the three months ended March 31, 2026 from the comparable period in the prior year, driven by appreciation in assets under management and new customer relationships.
Current wording
Investment advisory commission and fee income increased $583 thousand, or 10.7%, for the three months ended June 30, 2026 and $1.1 million, or 10.2%, for the six months ended June 30, 2026 from the comparable periods in the prior year, driven by appreciation in assets under management and new customer relationships.
Previous wording
Net gain on mortgage banking activities increased $144 thousand, or 22.3%, for the three months ended March 31, 2026 from the comparable period in the prior year, primarily due to increased salable volume.
Current wording
Net gain on mortgage banking activities increased $365 thousand, or 37.2%, for the three months ended June 30, 2026 and $509 thousand, or 31.3%, for the six months ended June 30, 2026 from the comparable periods in the prior year, primarily due to increased salable volume and increased margins.
Previous wording
Bank owned life insurance income ("BOLI") decreased $627 thousand, or 32.0%, for the three months ended March 31, 2026 from the comparable period in the prior year. The financial results for the three months ended March 31, 2026 included $372 thousand in BOLI death benefit proceeds compared to $1.0 million for the three months ended March 31, 2025.
Current wording
BOLI increased $686 thousand, or 67.8%, for the three months ended June 30, 2026 from the comparable period in the prior year. The financial results for the three months ended June 30, 2026 included $708 thousand in BOLI death benefit proceeds compared to $71 thousand for the three months ended June 30, 2025.
Previous wording
Insurance commission and fee income increased $534 thousand, or 7.8%, for the three months ended March 31, 2026 from the comparable period in the prior year, primarily due to an increase of $342 thousand in premiums on commercial lines. Additionally, contingent income increased $194 thousand for the quarter, from $1.6 million for the three months ended March 31, 2025 to $1.8 million for the three months ended March 31, 2026. Contingent income is largely recognized in the first quarter of each year.
Current wording
Insurance commission and fee income increased $624 thousand, or 5.1%, for the six months ended June 30, 2026 from the comparable period in the prior year, primarily due to increases of $268 thousand and $161 thousand in premiums on commercial lines and life and health overrides, respectively. Additionally, contingent income increased $208 thousand for the six months ended June 30, 2026, from $1.6 million for the six months ended June 30, 2025 to $1.8 million for the six months ended June 30, 2026. Contingent income is largely recognized in the first quarter of each year.
Previous wording
Other service fee income increased $334 thousand, or 12.3%, for the three months ended March 31, 2026 from the comparable period in the prior year. This was driven by a $284 thousand decrease in the valuation allowance on servicing rights in the first quarter of 2026 compared to a $19 thousand increase in the first quarter of 2025.
Current wording
Other service fee income increased $506 thousand, or 8.6%, for the six months ended June 30, 2026 from the comparable period in the prior year. This was driven by a $284 thousand decrease in the valuation allowance on servicing rights during the six months ended June 30, 2026. Additionally, interchange fees increased $146 thousand for the six months ended June 30, 2026.
Previous wording
The following table presents noninterest expense for the three months ended March 31, 2026 and 2025:
Current wording
The following table presents noninterest expense for the three and six months ended June 30, 2026 and 2025:
Previous wording
Marketing and advertising expense increased $281 thousand, or 79.6%, for the three months ended March 31, 2026 from the comparable period in the prior year. This increase was partially driven by the inclusion of certain sponsorship activities that were historically reported in Other Expense and the Corporation's entry into a sponsorship agreement with a local university, enhancing community engagement and visibility.
Current wording
Marketing and advertising expense increased $490 thousand, or 98.4%, for the three months ended June 30, 2026 and $771 thousand, or 90.6%, for the six months ended June 30, 2026 from the comparable periods in the prior year. These increases were primarily driven by the inclusion of certain sponsorship activities that were historically reported in Other Expense and the Corporation's entry into a sponsorship agreement with a local university, enhancing community engagement and visibility.
Previous wording
Restructuring charges increased $427 thousand for the three months ended March 31, 2026 from the comparable period in the prior year related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office.
Current wording
Restructuring charges increased $427 thousand for the six months ended June 30, 2026 from the comparable period in the prior year related to the planned closure of two underutilized facilities: a financial center and a limited purpose banking office.
Previous wording
The Corporation recognized a tax expense of $6.4 million and $5.2 million for the three months ended March 31, 2026 and 2025, respectively, resulting in effective rates of 19.1% and 18.7% for the respective periods. The discrete tax effect of vested equity compensation awards favorably impacted the first quarters of 2026 and 2025 by 132 and 71 basis points, respectively. Additionally, the effective tax rates for the three months ended March 31, 2026 and 2025 were favorably impacted by 21 and 73 basis points, respectively, from the proceeds of BOLI death benefit proceeds. Excluding the discrete impact of vested equity compensation awards and BOLI death benefit proceeds, the effective tax rate was 20.6% for the three months ended March 31, 2026 compared to 20.2% for the three months ended March 31, 2025.
Current wording
The Corporation recognized a tax expense of $5.6 million and $5.0 million for the three months ended June 30, 2026 and 2025, respectively, resulting in effective tax rates of 19.6% and 20.1% for the respective periods. The Corporation recognized a tax expense of $12.0 million and $10.2 million for the six months ended June 30, 2026 and 2025, respectively, resulting in effective tax rates of 19.3% and 19.4% for the respective periods. The effective tax rates for the three and six months ended June 30, 2026 and 2025 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rates for the six months ended June 30, 2026 and 2025 were favorably impacted by proceeds of BOLI death benefits and the impact of equity compensation awards.
Previous wording
Cash and interest-earning deposits decreased $331.4 million, or 59.8%, from December 31, 2025, primarily due to a decrease in interest-earning deposits at the Federal Reserve Bank of $332.1 million due to seasonal decreases in public funds, reflecting decreases in deposits and long-term debt.
Current wording
Cash and interest-earning deposits decreased $358.4 million, or 64.7%, from December 31, 2025, primarily due to a decrease in interest-earning deposits at the Federal Reserve Bank of $369.9 million due to seasonal decreases in public funds and growth in loans and leases held for investment.
Previous wording
Total investment securities at March 31, 2026 increased $5.1 million, or 1.0%, from December 31, 2025 as purchases of $29.5 million, which were primarily residential mortgage-backed securities, were offset by maturities and pay-downs of $20.1 million, sales of $2.3 million, decreases in the fair value of available-for-sale investment securities of $1.2 million, calls of $500 thousand, net amortization of purchased premiums and discounts of $216 thousand and a provision for credit losses of $19 thousand.
Current wording
Total investment securities at June 30, 2026 increased $1.2 million, or 0.2%, from December 31, 2025 as purchases of $50.5 million, which were primarily residential mortgage-backed securities, were offset by maturities and pay-downs of $39.8 million, sales of $5.7 million, decreases in the fair value of available-for-sale investment securities of $2.4 million, calls of $999 thousand, net amortization of purchased premiums and discounts of $429 thousand and a provision for credit losses of $23 thousand.
Previous wording
Gross loans and leases held for investment increased $25.4 million, or 0.4%, from December 31, 2025. The increase in gross loans and leases held for investment was primarily due to increases in commercial and commercial real estate loans, partially offset by decreases in construction and residential mortgage loans. For more information on the composition of the commercial loan portfolio, see "Table 4 - Loan Portfolio Overview."
Current wording
Gross loans and leases held for investment increased $127.2 million, or 1.8%, from December 31, 2025. The increase in gross loans and leases held for investment was primarily due to increases in commercial, construction and commercial real estate loans, partially offset by a decrease in residential mortgage loans. For more information on the composition of the commercial loan portfolio, see "Table 4 - Loan Portfolio Overview."
Previous wording
At March 31, 2026, nonaccrual loans and leases were $13.3 million and had a related allowance for credit losses on loans and leases of $3.1 million. At December 31, 2025, nonaccrual loans and leases were $13.7 million and had a related allowance for credit losses on loans and leases of $3.0 million. During the first quarter of 2026, a $3.9 million commercial real estate loan and a $1.0 million residential real estate loan secured for business purpose million were placed on nonaccrual status. Subsequent to their nonaccrual designation, these loans incurred charge-offs totaling $652 thousand and were transferred to held-for-sale status. Individual reserves have been established based on current facts and management's judgments about the ultimate outcome of these credits, including the most recent known data available on any related underlying collateral and the borrower's cash flows. The amount of individual reserve needed for these credits could change in future periods subject to changes in facts and judgments related to these credits.
Current wording
At June 30, 2026, nonaccrual loans and leases were $43.9 million and had a related allowance for credit losses on loans and leases of $10.9 million. At December 31, 2025, nonaccrual loans and leases were $13.7 million and had a related allowance for credit losses on loans and leases of $3.0 million. During the first quarter of 2026, a $3.9 million commercial real estate loan was placed on nonaccrual status. Subsequent to its nonaccrual designation, the loan incurred a $195 thousand charge-off. During the second quarter of 2026, a commercial loan relationship totaling $28.6 million was placed on nonaccrual status with a specific reserve of $9.8 million. Additionally, during the second quarter of 2026, two nonaccrual commercial loans totaling $1.7 million were charged-off. These loans were fully reserved prior to charge-off. Individual reserves have been established based on current facts and management's judgments about the ultimate outcome of these credits, including the most recent known data available on any related underlying collateral and the borrower's cash flows. The amount of individual reserve needed for these credits could change in future periods subject to changes in facts and judgments related to these credits.
Previous wording
Net loan and lease charge-offs for the three months ended March 31, 2026 were $1.3 million compared to $1.7 million for the same period in the prior year.
Current wording
Net loan and lease charge-offs for the three months ended June 30, 2026 were $1.9 million compared to $7.8 million for the same period in the prior year. Net loan and lease charge-offs for the six months ended June 30, 2026 were $3.2 million compared to $9.5 million for the same period in the prior year. The three and six months ended June 30, 2025 included a $7.3 million charge-off on a commercial loan relationship.
Previous wording
Other real estate owned (OREO) was $24.1 million at March 31, 2026, compared to $23.9 million at December 31, 2025. Repossessed assets were $124 thousand and $65 thousand at March 31, 2026 and December 31, 2025, respectively. During the three months ended March 31, 2026, repossessed assets totaling $78 thousand were acquired and repossessed assets totaling $19 thousand were written down.
Current wording
Other real estate owned (OREO) was $18.9 million at June 30, 2026, compared to $23.9 million at December 31, 2025. During the second quarter of 2026, a commercial real estate property incurred a $5.2 million valuation adjustment. The adjustment was recorded based on an updated appraisal which reflects the property's estimated fair value less costs to sell. Repossessed assets were $10 thousand and $65 thousand at June 30, 2026 and December 31, 2025, respectively. During the six months ended June 30, 2026, repossessed assets totaling $88 thousand were acquired, repossessed assets totaling $19 thousand were written down and repossessed assets totaling $124 thousand were sold.
Previous wording
Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of core deposit and customer-related intangibles was $93 thousand and $130 thousand for the three months ended March 31, 2026 and 2025, respectively. See Note 5 to the Condensed Unaudited Consolidated Financial Statements, "Goodwill and Other Intangible Assets," for a summary of intangible assets at March 31, 2026 and December 31, 2025.
Current wording
Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of core deposit and customer-related intangibles was $92 thousand and $131 thousand for the three months ended June 30, 2026 and 2025, respectively. The amortization of core deposit and customer-related intangibles was $185 thousand and $261 thousand for the six months ended June 30, 2026 and 2025, respectively. See Note 5 to the Condensed Unaudited
Previous wording
The Corporation also has goodwill with a net carrying value of $175.5 million at March 31, 2026 and December 31, 2025, which is deemed to be an indefinite intangible asset and is not amortized. The Corporation completes a goodwill impairment analysis on an annual basis, or more often if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the three months ended March 31, 2026 or 2025. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.
Current wording
The Corporation also has goodwill with a net carrying value of $175.5 million at June 30, 2026 and December 31, 2025, which is deemed to be an indefinite intangible asset and is not amortized. The Corporation completes a goodwill impairment analysis on an annual basis, or more often if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the six months ended June 30, 2026 or 2025. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.
Previous wording
Total deposits decreased $273.6 million, or 3.9%, from December 31, 2025 due to decreases in commercial, consumer, brokered deposits, and public funds, primarily reflecting seasonal public funds runoff during the quarter. At March 31, 2026, noninterest bearing deposits totaling $1.5 billion represented 21.7% of total deposits compared to $1.4 billion representing 20.2% of total deposits at December 31, 2025. At March 31, 2026 and December 31, 2025, unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.6 billion, which represented 23.7% and 23.2% of total deposits for the respective periods.
Current wording
Total deposits decreased $154.3 million, or 2.2%, from December 31, 2025 primarily due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits. At June 30, 2026, noninterest-bearing deposits totaling $1.5 billion represented 21.1% of total deposits compared to $1.4 billion representing 20.2% of total deposits at December 31, 2025. At June 30, 2026 and December 31, 2025, unprotected deposits, which exclude insured, internal, and collateralized deposit accounts, totaled $1.7 billion and $1.6 billion, respectively, which represented 24.6% and 23.2% of total deposits for the respective periods.
Previous wording
Total borrowings decreased $23.2 million, or 7.2%, from December 31, 2025, primarily due to maturities of long-term FHLB advances totaling $50.0 million, offset by a $25.0 million long-term FHLB advance, partially offset by a $1.7 million increase in customer repurchase agreements.
Current wording
Total borrowings decreased $80.5 million, or 24.9%, from December 31, 2025, primarily due to maturities of long-term FHLB advances totaling $100.0 million, offset by a $25.0 million long-term FHLB advance, and a $5.6 million decrease in customer repurchase agreements.
Previous wording
Other liabilities decreased $6.4 million, or 11.7%, from December 31, 2025, primarily due to the payment of previously accrued annual incentive compensation.
Current wording
Other liabilities decreased $8.4 million, or 15.4%, from December 31, 2025, primarily due to the payment of previously accrued annual incentive compensation.
Previous wording
Total shareholders' equity increased $8.6 million, or 0.9%, from December 31, 2025. Retained earnings at March 31, 2026 increased by $20.6 million primarily due to net income of $27.1 million offset by $6.2 million in cash dividends paid during the three months ended March 31, 2026. Accumulated other comprehensive loss increased by $484 thousand, which was primarily attributable to decreases in the fair value of available-for-sale investment securities of $1.2 million, net of tax. Treasury stock increased $8.6 million from December 31, 2025, related to repurchases of 351,138 shares at a cost of $11.9 million, offset by $3.3 million of stock issued under the dividend reinvestment and employee stock purchase plans and stock-based incentive plan activity.
Current wording
Total shareholders' equity increased $10.9 million, or 1.2%, from December 31, 2025. Retained earnings at June 30, 2026 increased by $37.1 million primarily due to net income of $50.0 million offset by $12.6 million in cash dividends paid during the six months ended June 30, 2026. Accumulated other comprehensive loss increased by $1.3 million, which was primarily attributable to decreases in the fair value of available-for-sale investment securities of $1.9 million, net of tax. Treasury stock increased $23.5 million from December 31, 2025, related to repurchases of 776,677 shares at a cost of $28.5 million, offset by $5.1 million of stock issued under the dividend reinvestment and employee stock purchase plans and stock-based incentive plan activity.
Previous wording
The Banking segment reported pre-tax income of $29.1 million and $26.1 million for the three months ended March 31, 2026 and 2025, respectively. See the section of this Management's Discussion and Analysis under the headings "Results of Operations" and "Financial Condition" for a discussion of key items impacting the Banking Segment.
Current wording
The Banking segment reported pre-tax income of $28.1 million and $26.6 million for the three months ended June 30, 2026 and 2025, respectively, and pre-tax income of $57.2 million and $52.7 million for the six months ended June 30, 2026 and 2025, respectively. See the section of this Management's Discussion and Analysis under the headings "Results of Operations" and "Financial Condition" for a discussion of key items impacting the Banking Segment.
Previous wording
The Wealth Management segment reported pre-tax income of $2.5 million and $2.0 million for the three months ended March 31, 2026 and 2025, respectively, which included noninterest income of $8.5 million and $7.8 million for the three months ended March 31, 2026 and 2025, respectively. The increase in pre-tax income and noninterest income for the three months ended March 31, 2026 was driven by appreciation in assets under management compared to the previous year and new customer relationships. Assets under management and supervision were $5.8 billion as of March 31, 2026, $5.9 billion as of December 31, 2025, $5.2 billion as of March 31, 2025 and $5.2 billion as of December 31, 2024.
Current wording
The Wealth Management segment reported pre-tax income of $2.4 million and $1.8 million for the three months ended June 30, 2026 and 2025, respectively, which included noninterest income of $8.4 million in 2026 and $7.7 million in 2025, and pre-tax income of $4.9 million and $3.8 million for the six months ended June 30, 2026 and 2025, respectively, which included noninterest income of $16.9 million in 2026 and $15.5 million in 2025. The increase in pre-tax income and noninterest income for the three and six months ended June 30, 2026 was driven by appreciation in assets under management compared to the previous year and new customer relationships. Assets under management and supervision were $6.2 billion as of June 30, 2026, $5.8 billion as of March 31, 2026, $5.4 billion as of June 30, 2025 and $5.2 billion as of March 31, 2025.
Previous wording
The Insurance segment reported pre-tax income of $3.0 million and $2.4 million for the three months ended March 31, 2026 and 2025, respectively, which included noninterest income of $7.4 million and $6.9 million for the three months ended March 31, 2026 and 2025, respectively. The increase in pre-tax income and noninterest income for the three months ended March 31, 2026 was primarily due to an increase of $342 thousand in premiums on commercial lines. Additionally, contingent income increased $194 thousand for the quarter, from $1.6 million for the three months ended March 31, 2025 to $1.8 million for the three months ended March 31, 2026. Contingent income is largely recognized in the first quarter of the year.
Current wording
The Insurance segment reported pre-tax income of $1.1 million and $964 thousand for the three months ended June 30, 2026 and 2025, respectively, which included noninterest income of $5.4 million in 2026 and $5.3 million in 2025, and pre-tax income of $4.1 million and $3.4 million for the six months ended June 30, 2026 and 2025, respectively, which included noninterest income of $12.8 million in 2026 and $12.2 million in 2025. The increase in pre-tax income and noninterest income for the three months ended June 30, 2026 was primarily due to an increase of $154 thousand in life and health overrides, partially offset by a decrease of $74 thousand in premiums on commercial lines. The increase in pre-tax income and noninterest income for the six months ended June 30, 2026 was primarily due to increases of $268 thousand and $161 thousand in premiums on commercial lines and life and health overrides, respectively. Additionally, contingent income increased $208 thousand for the six months ended June 30, 2026, from $1.6 million for the six months ended June 30, 2025 to $1.8 million for the six months ended June 30, 2026. Contingent income is largely recognized in the first quarter of the year.
Previous wording
The Corporation and its subsidiaries maintain ample ability to meet the liquidity needs of its customers. Our most liquid assets, unencumbered cash and cash equivalents, were $220.7 million and $549.2 million at March 31, 2026 and December 31, 2025, respectively. Unencumbered securities classified as available-for-sale, which provide additional sources of liquidity, totaled $40.2 million and $37.3 million at March 31, 2026 and December 31, 2025, respectively. Further, the Corporation and its subsidiaries had committed borrowing capacity from the Federal Home Loan Bank, Federal Reserve Bank and a correspondent bank of $3.7 billion and $3.8 billion at March 31, 2026 and December 31, 2025, respectively, of which $2.4 billion and $2.3 billion was available as of March 31, 2026 and December 31, 2025, respectively. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $472.0 million and $457.0 million at March 31, 2026 and December 31, 2025, respectively. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.
Current wording
The Corporation and its subsidiaries maintain ample ability to meet the liquidity needs of its customers. Our most liquid assets, unencumbered cash and cash equivalents, were $193.8 million and $549.2 million at June 30, 2026 and December 31, 2025, respectively. Unencumbered securities classified as available-for-sale, which provide additional sources of liquidity, totaled $51.7 million and $37.3 million at June 30, 2026 and December 31, 2025, respectively. Further, the Corporation and its subsidiaries had committed borrowing capacity from the Federal Home Loan Bank, Federal Reserve Bank and a correspondent bank of $3.7 billion and $3.8 billion at June 30, 2026 and December 31, 2025, respectively, of which $2.4 billion and $2.3 billion was available as of June 30, 2026 and December 31, 2025, respectively. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $422.0 million and $457.0 million at June 30, 2026 and December 31, 2025, respectively. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.
Previous wording
Non-brokered deposits continue to be the largest significant funding source for the Corporation. These deposits are primarily generated from individuals, businesses, public funds and non-profit customers located in our primary service areas. The Corporation faces increased competition for these deposits from a large array of financial market participants, including banks, credit unions, savings institutions, mutual funds, security dealers and others.
Current wording
Non-brokered deposits continue to be the largest funding source for the Corporation. These deposits are primarily generated from individuals, businesses, public funds and non-profit customers located in our primary service areas. The Corporation faces increased competition for these deposits from a large array of financial market participants, including banks, credit unions, savings institutions, mutual funds, security dealers and others.
Previous wording
The Corporation has cash requirements for various financial obligations, including contractual obligations and commitments that require cash payments. The most significant contractual obligations, in both the under and over one-year time period, are for the Bank to repay certificates of deposit and short- and long-term borrowings. Certificates of deposit due within one year of March 31, 2026 totaled $1.0 billion. If these deposits do not remain with the Bank, the Bank will be required to seek other sources of funds, which may be expensive to obtain. The Bank anticipates meeting these obligations by utilizing on-balance sheet liquidity and continuing to provide convenient depository and cash management services through its financial center network, thereby replacing these contractual obligations with similar funding sources at rates that are competitive in our market. The Bank will also use borrowings and brokered deposits to meet its obligations.
Current wording
The Corporation has cash requirements for various financial obligations, including contractual obligations and commitments that require cash payments. The most significant contractual obligations, in both the under and over one-year time period, are for the Bank to repay certificates of deposit and short- and long-term borrowings. Certificates of deposit due within one year of June 30, 2026 totaled $1.0 billion. If these deposits do not remain with the Bank, the Bank will be required to seek other sources of funds, which may be expensive to obtain. The Bank anticipates meeting these obligations by utilizing on-balance sheet liquidity and continuing to provide convenient depository and cash management services through its financial center network, thereby replacing these contractual obligations with similar funding sources at rates that are competitive in our market. The Bank may also use borrowings and brokered deposits to meet its obligations.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Current report — wording carried from elsewhere
Net interest income includes net deferred costs amortization of $1.6 million and $1.2 million for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2026 and 2025 have been calculated using the Corporation's federal applicable rate of 21%.
Current report — wording carried from elsewhere
Consolidated Financial Statements, "Goodwill and Other Intangible Assets," for a summary of intangible assets at June 30, 2026 and December 31, 2025.