Company: UVSP
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000102212-25-000006
Chunk: 69

Company: UNIVEST FINANCIAL Corp
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 69
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 2023Weighted-average remaining lease term in years10.811.4Weighted-average discount rate3.97 %3.92 %At December 31, 2024, maturities of lease liabilities are as follows:Year(Dollars in thousands)Amount2025$4,293 20264,273 20274,079 20283,714 20293,371 Thereafter19,655 Total lease payments39,385 Less: imputed interest(7,900)Present value of lease liabilities$31,485 

98

Note 17.     Commitments and Contingencies

Lending OperationsCommitments to extend credit, performance letters of credit, standby letters of credit, and other letters of credit are financial instruments issued by the Corporation to accommodate the financial needs of our customers. The Corporation uses the same credit policies in issuing these financial instruments as it does for on-balance sheet financial instruments, including obtaining collateral when management's credit assessment of the customer deems it necessary. These financial instruments generally have fixed expiration dates and historically most of these financial instruments expire without being drawn upon. The Corporation maintains a reserve for off-balance sheet credit exposures that are currently unfunded.  Commitments to extend credit are agreements to lend to a customer if there is no violation of any condition established in the contract. The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Performance letters of credit and standby letters of credit commit the Bank to make payments on behalf of customers when certain specified future events occur. The Corporation's exposure to credit loss is essentially the same as the risk involved in extending loans to customers. At December 31, 2024, the maximum potential amount of future payments under letters of credit was $65.6 million. The carrying amount of the contingent obligation at December 31, 2024 was $323 thousand. The following schedule summarizes the Corporation's off-balance sheet financial instruments at December 31, 2024:(Dollars in thousands)Contract/Notional AmountFinancial instruments representing credit risk:Commitments to extend credit$1,791,589 Performance letters of credit25,661 Financial standby letters of credit39,910 The Bank maintains a reserve in other liabilities for estimated losses associated with sold mortgages that may be repurchased. At December 31, 2024, the reserve for sold mortgages