Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 107

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 107
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 30, 2024 of the allowance for credit losses on securities available-for-sale.(Dollars in thousands)Corporate BondsSix months ended June 30, 2025Securities Available-for-SaleBeginning balance$(839)Change in securities for which a previous expected credit loss was recognized822 Ending balance$(17)Six months ended June 30, 2024Securities Available-for-SaleBeginning balance$(731)Additions for securities for which no previous expected credit losses were recognized(1)Change in securities for which a previous expected credit loss was recognized(49)Ending balance$(781)At June 30, 2025, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has been recorded was $10.3 million, including unrealized losses of $209 thousand, and allowance for credit losses of $17 thousand. These holdings were comprised of 19 investment grade corporate bonds, all of which fluctuate in value based on changes in market conditions. For these securities, fluctuations were primarily due to changes in the interest rate environment. The Corporation does not intend to sell these securities, and it is not likely that it will be required to sell the securities before their anticipated recovery. The underlying issuers continue to make timely principal and interest payments on the securities.During the second quarter of 2025, $719 thousand of allowance credit for losses was reversed on six investment grade corporate bonds. These six investment grade corporate bonds were issued by Global Systemically Important Banks and Domestic Systemically Important Banks which hold a significant amount of excess capital to address a systemic event. As such, these banks were excluded from the allowance for credit loss on investments as the credit risk within this portfolio is deemed to be zero.The Corporation recognized a $42 thousand net loss on equity securities during the six months ended June 30, 2024 in other noninterest income. There were no sales of equity securities during the six months ended June 30, 2025 or 2024.

Note 4. Loans and Leases

Summary of Major Loan and Lease Categories(Dollars in thousands)At June 30, 2025At December 31, 2024Commercial, financial and agricultural$1,052,246 $1,037,835 Real estate-commercial3,485,615 3,530,451 Real estate-construction302,424 274,483 Real estate-residential secured for business purpose535