Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 206

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 2
Chunk 206
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30, 2025 was primarily due to a decrease in contingent income of $701 thousand, which was $1.6 million and $2.3 million for the six months ended June 30, 2025 and 2024, respectively. Contingent income is largely recognized in the first quarter of the year. 

Capital Adequacy

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum capital amounts and ratios as set forth in the following table. To comply with the regulatory definition of well capitalized, a depository institution must maintain minimum capital amounts and ratios as set forth in the following table.

Under current rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity Tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.50% of total risk-weighted assets. The Corporation's and Bank's intent is to maintain capital levels in excess of the capital conservation buffer, which requires Tier 1 Capital to Risk Weighted Assets to exceed 8.50% and Total Capital to Risk Weighted Assets to exceed 10.50%. The Corporation and the Bank were in compliance with these requirements at June 30, 2025.

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Table 5—Regulatory Capital

The Corporation's and Bank's actual and required capital ratios as of June 30, 2025 and December 31, 2024 under regulatory capital rules were as follows.

 ActualFor Capital AdequacyPurposesTo Be Well-CapitalizedUnder PromptCorrective ActionProvisions(Dollars in thousands)AmountRatioAmountRatioAmount  Ratio  At June 30, 2025Total Capital (to Risk-Weighted Assets):Corporation$1,016,926 14.58 %$557,817 8.00 %$697,271 10.00 %Bank857,916 12.36 555,336 8.00 694,170 10.00 Tier 1 Capital (to Risk-Weighted Assets):Corporation780,215 11.19 418,363 6.00 557,817 8.00 Bank771,100 11.11 416,502 6.00 555,336 8.00 Tier 1 Common Capital (to