Company: UVSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000102212-25-000019
Chunk: 71

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 71
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interest income for the three months ended March 31, 2025 was primarily due to a decrease in contingent income of $700 thousand, which was $1.6 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively. Contingent income is largely recognized in the first quarter of the year. The decrease was partially offset by an increase of $404 thousand in revenue for commercial lines.

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 March 31, 2025.

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Table 5—Regulatory Capital

The Corporation's and Bank's actual and required capital ratios as of March 31, 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 March 31, 2025Total Capital (to Risk-Weighted Assets):Corporation$1,006,906 14.35 %$561,205 8.00 %$701,506 10.00 %Bank850,851 12.18 558,789 8.00 698,487 10.00 Tier 1 Capital (to Risk-Weighted Assets):Corporation769,781 10.97 420,903 6.00 561,205 8.00 Bank763,485 10