Company: UVSP
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000102212-25-000006
Chunk: 34

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 34
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 are highly rated by major rating agencies and have a long history of no credit losses. The Corporation did not recognize any credit losses on held-to-maturity debt securities for the years ended December 31, 2024 or 2023.At December 31, 2024, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $271.8 million, including unrealized losses of $39.6 million. These holdings were comprised of: (1) 114 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) two collateralized mortgage obligation bonds, and (3) one investment grade corporate bond. 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 negative fair value of these securities was not indicative of a credit loss. Accrued interest receivable on available-for-sale debt securities totaled $1.2 million at December 31, 2024 and is included within Accrued interest receivable and other assets on the consolidated balance sheet. This amount is excluded from the estimate of expected credit losses.

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The table below presents a rollforward by major security type for the years ended December 31, 2024 and 2023 of the allowance for credit losses on securities available-for-sale.(Dollars in thousands)Corporate BondsFor the Year Ended December 31, 2024Securities Available-for-SaleBeginning balance$(731)Additions for securities for which no previous expected credit losses were recognized(3)Change in securities for which a previous expected credit loss was recognized(105)Ending balance$(839)For the Year Ended December 31, 2023Securities Available-for-SaleBeginning balance$(1,140)Additions for securities for which no previous expected credit losses were recognized(3)Change in securities for which a previous expected credit loss was recognized412 Ending balance$(731)At December 31, 2024, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has been recorded was $68.3 million, including unrealized losses of $5.9 million, and allowance