Increase in Net Interest Margin
Reported NIM increased to 3.2%, rising by 11 basis points from the previous quarter due to increased yields on assets and a reduction in the cost of funds. Core NIM expanded by 12 basis points to 3.24%.
Growth in Noninterest Income
Noninterest income increased by $521,000 or 2.5% compared to the second quarter of 2024, driven by increases in investment management fees, gains on sale of SBA loans, and treasury management fees.
Solid Loan Production
Year-to-date commercial loan production through June 30 was $507 million compared to $402 million in the prior year, indicating a strong demand for loans.
Guidance for Net Interest Income Growth
For the full year, Univest expects net interest income growth of 10% to 12% compared to 2024.