Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 176

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 176
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 31, 2024Total Capital (to Risk-Weighted Assets):Corporation$999,073 14.19 %$563,074 8.00 %$703,842 10.00 %Bank843,245 12.03 560,778 8.00 700,972 10.00 Tier 1 Capital (to Risk-Weighted Assets):Corporation763,947 10.85 422,305 6.00 563,074 8.00 Bank757,380 10.80 420,583 6.00 560,778 8.00 Tier 1 Common Capital (to Risk-Weighted Assets):Corporation763,947 10.85 316,729 4.50 457,497 6.50 Bank757,380 10.80 315,438 4.50 455,632 6.50 Tier 1 Capital (to Average Assets):Corporation763,947 9.51 321,439 4.00 401,799 5.00 Bank757,380 9.45 320,674 4.00 400,843 5.00 

At June 30, 2025 and December 31, 2024, the Corporation and the Bank continued to meet all capital adequacy requirements to which they are subject. At June 30, 2025, the Bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that management believes have changed the Bank’s category. 

Asset/Liability Management

The primary functions of Asset/Liability Management are to minimize interest rate risk and to ensure adequate earnings, capital and liquidity while maintaining an appropriate balance of interest-earning assets and interest-bearing liabilities. Management's objective with regard to interest rate risk is to understand the Corporation's sensitivity to changes in interest rates and develop and implement strategies to minimize volatility while maximizing net interest income.

The Corporation uses gap analysis and earnings at risk simulation modeling to quantify exposure to interest rate risk. The Corporation uses the gap analysis to identify and monitor long-term rate exposure and uses a risk simulation model to measure short-term rate exposure. The Corporation runs various earnings simulation scenarios to quantify the impact of declining or rising interest rates on net interest income over a one-year and two-year horizon. The simulations use expected cash flows and repricing characteristics for all