Company: UVSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000102212-25-000019
Chunk: 119

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 8
Chunk 119
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 consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:Statement of Income ClassificationThree Months EndedMarch 31,(Dollars in thousands)20252024Credit derivativesOther noninterest income$18 $227 Interest rate locks with customersNet gain (loss) on mortgage banking activities208 (206)Forward loan sale commitmentsNet (loss) gain on mortgage banking activities(153)381 Total net gain$73 $402 

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The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at March 31, 2025 and December 31, 2024:(Dollars in thousands)Accumulated Other Comprehensive (Loss) IncomeAt March 31, 2025At December 31, 2024Interest rate swap—cash flow hedge (1)Fair value, net of taxes$(1,976)$(2,422)Total$(1,976)$(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 13 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. Unobservable inputs are inputs that reflect the Corporation’s assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting periods.Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.Level 2