Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 43

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 43
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 periods indicated:Six Months Ended June 30,(Dollars in thousands)20252024Stock-based compensation expense:Restricted stock units$2,252 $2,231 Employee stock purchase plan45 49 Total$2,297 $2,280 Tax benefit on nonqualified stock option expense and disqualifying dispositions of incentive stock options$275 $658 

Note 10. Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:(Dollars in thousands)Net UnrealizedLosses onAvailable-for-SaleInvestmentSecuritiesNet ChangeRelated toDerivatives Used for Cash Flow HedgesNet ChangeRelated toDefined BenefitPension PlansAccumulatedOtherComprehensiveLossBalance, December 31, 2024$(35,117)$(2,422)$(6,453)$(43,992)Other comprehensive income8,068 — 59 8,127 Reclassification adjustment recorded in earnings (1)— 896 — 896 Balance, June 30, 2025$(27,049)$(1,526)$(6,394)$(34,969)Balance, December 31, 2023$(34,321)$(4,566)$(11,759)$(50,646)Other comprehensive (loss) income(2,205)(1,505)232 (3,478)Balance, June 30, 2024$(36,526)$(6,071)$(11,527)$(54,124)(1) Represents reclassification to earnings as a reduction to interest income of amounts included in accumulated other comprehensive income on the condensed consolidated balance sheet related to the interest rate swap terminated on August 2, 2024.

Note 11. Derivative Instruments and Hedging Activities 

Interest Rate SwapsThe Corporation periodically uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation’s credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party.In May 2022, the Corporation entered into an interest rate swap classified as a cash flow hedge with a notional amount of $250.0 million to hedge the interest payments received on a pool of variable rate loans. Under the terms