Company: UVSP
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001628280-25-036392
Chunk: 136

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 8
Chunk 136
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Interest rate swap—cash flow hedge—net interest paymentsInterest expense$— $1,586 $— $3,172 Reclassification adjustment included in earnings (1)Interest income(569)— (1,134)— Total net loss$(569)$(1,586)$(1,134)$(3,172)(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.The following table presents amounts included in the condensed consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:Statement of Income ClassificationThree Months EndedSix Months EndedJune 30,June 30,(Dollars in thousands)2025202420252024Credit derivativesOther noninterest income$135 $111 $152 $338 Interest rate locks with customersNet (loss) gain on mortgage banking activities(62)236 146 30 Forward loan sale commitmentsNet gain (loss) on mortgage banking activities90 (92)(63)289 Total net gain$163 $255 $235 $657 The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at June 30, 2025 and December 31, 2024:(Dollars in thousands)Accumulated Other Comprehensive (Loss) IncomeAt June 30, 2025At December 31, 2024Interest rate swap—cash flow hedge (1)Fair value, net of taxes$(1,526)$(2,422)Total$(1,526)$(2,422)(1) The interest rate swap was terminated on August 2, 2024. This after-tax amount will be reclassified to earnings as a reduction to interest income over the remaining 10 months of the original swap.

Note 12. Fair Value Disclosures 

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation.