Company: UVSP
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000102212-25-000006
Chunk: 160

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-02-24
Form: 10-K
Item: Item 7
Chunk 160
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 existing ACL may not be adequate or increases may be necessary should the quality of any loans or leases deteriorate or if there are changes to the assumptions noted above. Any material increase in the ACL would adversely affect the Corporation’s financial condition and results of operations.

Economic Factors

At December 31, 2024At December 31, 2023Description of Economic FactorsPrepayment rates11.58 %12.62 %Average total portfolio rateCurtailment rates28.21 %28.97 %Average total portfolio rateRecovery delay31 months32 monthsAverage across all poolsEconomic forecastMoody's downside S2 weighted 60%, Baseline weighted 40%Moody's downside S2 weighted 70%, Baseline weighted 30%Moody's US Macro Forecast Narratives for December 2023 & 2022Unemployment rates5.42 %5.18 %Average of 4 quarter forecast periodGDP rates1.12 %0.76 %Average of 4 quarter forecast periodHouse price index(1.62)%(1.72)%Average of 4 quarter forecast period

Sensitivity Analysis

The below table indicates the impact to the allowance for credit losses on loans and leases if the factors described below were adjusted in the Corporation's CECL model.

Increase (Decrease) ($)Adjustment FactorPrepayment rates+/- 2,000If rates were adjusted across all pools by +/-100 basis pointsCurtailment rates+/- 425If rates were adjusted across all pools by +/- 100 basis pointsRecovery delay +/- 3,600If recovery delays were adjusted by +/- 3 months across all poolsEconomic forecast(28,500)If Baseline forecasts were used instead of the weighted Downside/Baseline scenariosEconomic forecast21,800If S2 Downside forecasts were used instead of the weighted Downside/Baseline scenariosEconomic forecast49,000If S3 Downside forecasts were used instead of the weighted Downside/Baseline scenariosUnemployment rates20,300If rates were increased across all pools by 100 basis pointsUnemployment rates(17,400)If rates were decreased across all pools by 100 basis pointsGDP rates +/- 2,300If the GDP forecast inputs were adjusted by +/- 100 basis pointsHouse price index +/- 160If the HPI forecast inputs were adjusted by +/- 100 basis pointsReversion period1,100If the reversion period was increased by