Company: UVSP
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0000102212-25-000028
Chunk: 108

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-10-24
Form: 10-Q
Item: Item 8
Chunk 108
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 not been recorded was $270.1 million, including unrealized losses of $31.8 million. These holdings were comprised of: (1) 101 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses; (2) eight investment grade corporate bonds, and (3) two collateralized mortgage obligation bonds. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the unrealized loss  of these securities was not indicative of a credit loss. Accrued interest receivable on available-for-sale debt securities totaled $1.2 million at September 30, 2025 and is included within accrued interest receivable and other assets on the condensed consolidated balance sheet. This amount is excluded from the estimate of expected credit losses.

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The table below presents a roll forward by major security type for the nine months ended September 30, 2025 and September 30, 2024 of the allowance for credit losses on securities available-for-sale.(Dollars in thousands)Corporate BondsNine months ended September 30, 2025Securities Available-for-SaleBeginning balance$(839)Additions for securities for which no previous expected credit losses were recognized802 Change in securities for which a previous expected credit loss was recognized19 Ending balance$(18)Nine months ended September 30, 2024Securities Available-for-SaleBeginning balance$(731)Change in securities for which a previous expected credit loss was recognized89 Ending balance$(642)At September 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 $8.8 million, including unrealized losses of $137 thousand, and allowance for credit losses of $18 thousand. These holdings were comprised of 18 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