Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 139

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 139
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 related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

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The following table presents the assets and liabilities measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024, classified using the fair value hierarchy: At June 30, 2025(Dollars in thousands)Level 1Level 2Level 3Assets/Liabilities atFair ValueAssets:Available-for-sale securities:Residential mortgage-backed securities$— $291,158 $— $291,158 Collateralized mortgage obligations— 1,541 — 1,541 Corporate bonds— 73,722 — 73,722 Total available-for-sale securities— 366,421 — 366,421 Equity securities:Money market mutual funds1,801 — — 1,801 Total equity securities1,801 — — 1,801 Loans held for sale— 17,774 — 17,774 Interest rate locks with customers*— 359 — 359 Total assets$1,801 $384,554 $— $386,355 Liabilities:Credit derivatives*$— $— $79 $79 Forward loan sale commitments*— 51 — 51 Total liabilities$— $51 $79 $130 * Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."The $79 thousand of credit derivatives liability represented the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 134 interest rate swaps with a notional amount of $839.3 million. The June 30, 2025 CVA was calculated using a 40% loss given default rate on the most recent investment grade credit curve. At December 31, 2024(Dollars in thousands)Level 1Level 2Level 3Assets/Liabilities atFair ValueAssets:Available-for-sale securities:State and political subdivisions$— $1,295 $— $1,295 Residential mortgage-backed securities— 283,