3 unchanged sentences
(In thousands, except share data - Unaudited)
+Added: September 30,
Cash and due from banks
2 unchanged sentences
Investment securities – available for sale (at fair value)
−Removed: Investment securities – held to maturity (fair value $ 220,301 at June 30, 2022 and $ 65,369 at December 31, 2021)
+Added: Investment securities – held to maturity (fair value $ 205,745 at September 30, 2022 and $ 65,369 at December 31, 2021)
Restricted investment in bank stock, at cost
25 unchanged sentences
Authorized 25,000,000 shares;
−Removed: issued and outstanding 6,656,395 shares at June 30, 2022 and 6,620,955 at December 31, 2021
+Added: issued and outstanding 6,659,390 shares at September 30, 2022 and 6,620,955 at December 31, 2021
Retained earnings
6 unchanged sentences
(In thousands, except per share data)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Interest income
17 unchanged sentences
Net gains on investments, available for sale
+Added: Net gains/(losses) on investments, held to maturity
Net gains on sale of residential mortgage loans
20 unchanged sentences
Settlement expense
+Added: FHLB prepayment penalty
Contributions
12 unchanged sentences
Three Months Ended
+Added: September 30,
Interest income
16 unchanged sentences
Other operating income
−Removed: Net gains on investments, available for sale
+Added: Net gains on investments, held to maturity
Gains on sale of residential mortgage loans
−Removed: Gains on disposal of fixed assets
Service charges on deposit accounts
12 unchanged sentences
Contract labor
−Removed: Losses/(gains) on sales and write downs of other real estate owned, net
+Added: Losses on sales and write downs of other real estate owned, net
Investor relations
Contributions
+Added: FHLB prepayment penalty
Total other operating expenses
10 unchanged sentences
(In thousands)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Comprehensive (Loss)/Income
10 unchanged sentences
Unrealized holding losses on securities transferred to held to maturity
+Added: Reclassification adjustment for gains/(losses) realized in income
Reclassification adjustment for amortization realized in income
21 unchanged sentences
Three Months Ended
−Removed: Comprehensive (Loss)/Income (in thousands)
+Added: September 30,
+Added: Comprehensive Income (in thousands)
Other comprehensive (loss)/income, net of tax and reclassification adjustments:
3 unchanged sentences
Other comprehensive(loss)/income on investments with OTTI
−Removed: Unrealized holding (losses)/gains on all other AFS investments
+Added: Unrealized holding losses on all other AFS investments
Reclassification adjustment for gains realized in income
−Removed: Other comprehensive (losses)/gains on all other AFS investments
+Added: Other comprehensive losses on all other AFS investments
Held to Maturity Securities
Unrealized holding losses on securities transferred to held to maturity
−Removed: Unrealized holding losses on HTM investments
+Added: Reclassification adjustment for gains realized in income
Reclassification adjustment for amortization realized in income
1 unchanged sentence
Cash flow hedges:
−Removed: Unrealized holding gains/(loss) on cash flow hedges
+Added: Unrealized holding gains on cash flow hedges
Reclassification adjustment for gains realized in income
−Removed: Other comprehensive income/(loss) on cash flow hedges
+Added: Other comprehensive income on cash flow hedges
Pension plan liability:
−Removed: Unrealized holding (losses)/gains on pension plan liability
+Added: Unrealized holding losses on pension plan liability
Reclassification adjustment for amortization of unrecognized loss realized in income
−Removed: Other comprehensive (losses)/income on pension plan liability
+Added: Other comprehensive losses on pension plan liability
SERP liability:
2 unchanged sentences
Other comprehensive income on SERP liability
−Removed: Other comprehensive (losses)/income before income tax
−Removed: Income tax benefit/(expense) related to other comprehensive income
−Removed: Other comprehensive (loss)/income, net of tax
−Removed: Comprehensive (loss)/income
+Added: Other comprehensive losses before income tax
+Added: Income tax benefit related to other comprehensive income
+Added: Other comprehensive loss, net of tax
+Added: Comprehensive income
See accompanying notes to the consolidated financial statements
15 unchanged sentences
Balance at June 30, 2022
+Added: Other comprehensive loss
+Added: Stock based compensation
+Added: Common stock issued - 4,563 shares
+Added: Common stock dividend declared -
+Added: $ 0.15 per share
+Added: Balance at September 30, 2022
+Added: First United Corporation and Subsidiaries
+Added: Consolidated Statements of Changes in Shareholders’ Equity
+Added: (In thousands, except per share data)
Comprehensive
12 unchanged sentences
Balance at June 30, 2021
+Added: Other comprehensive loss
+Added: Stock based compensation
+Added: Common stock issued - 3,337 shares
+Added: Common stock dividend declared -
+Added: $ 0.15 per share
+Added: Balance at September 30, 2021
See accompanying notes to the consolidated financial statements
2 unchanged sentences
(In thousands)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Operating activities
8 unchanged sentences
Gains on disposal of fixed assets
−Removed: Net amortization of investment securities discounts and premiums- AFS
+Added: Net (accretion)/ amortization of investment securities discounts and premiums- AFS
Net (accretion)/amortization of investment securities discounts and premiums- HTM
1 unchanged sentence
Gains on sales/calls of investment securities – AFS
+Added: Losses/(gains) on investment securities – HTM
Earnings on bank owned life insurance
25 unchanged sentences
Stock repurchase
−Removed: Net cash provided by financing activities
−Removed: (Decrease)/increase in cash and cash equivalents
+Added: Net decrease in long-term borrowings
+Added: Net cash provided by/(used in) financing activities
+Added: Decrease in cash and cash equivalents
Cash and cash equivalents at beginning of the year
9 unchanged sentences
Note 1 – Basis of Presentation
−Removed: The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America (“U.S.
+Added: The financial information is presented in accordance with generally accepted accounting principles and general practice for financial institutions in the United States of America (“GAAP”).
In preparing financial statements, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities as of the date of financial statements.
1 unchanged sentence
Principles of Consolidation
−Removed: The consolidated financial statements include the accounts of First United Corporation, the Bank, First United Statutory Trust I, First United Statutory Trust II, OakFirst Loan Center, LLC, Oakfirst Loan Center, Inc., First OREO Trust and FUBT OREO I, LLC.
+Added: The consolidated financial statements include the accounts of First United Corporation, First United Bank & Trust (the “Bank”), First United Statutory Trust I, First United Statutory Trust II, OakFirst Loan Center, LLC, Oakfirst Loan Center, Inc., First OREO Trust and FUBT OREO I, LLC.
All significant inter-company accounts and transactions have been eliminated.
Certain prior period balances have been reclassified to conform to the current period presentation.
−Removed: Operating results for the six and three month periods ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year or for any future interim period.
+Added: Operating results for the nine and three month periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year or for any future interim period.
These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in First United Corporation’s Annual Report on Form 10-K for the year ended December 31, 2021.
As used in these notes, the terms “the Corporation” “we”, “us”, and “our” refer to First United Corporation and, unless the context clearly requires otherwise, its consolidated subsidiaries.
−Removed: The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of June 30, 2022 and through the date these consolidated financial statements were issued, for items of potential recognition or disclosure.
+Added: The Corporation has evaluated events and transactions occurring subsequent to the statement of financial condition date of September 30, 2022 and through the date these consolidated financial statements were issued, for items of potential recognition or disclosure.
Note 2 – Earnings Per Common Share
1 unchanged sentence
Diluted earnings per share is derived by dividing net income available to common shareholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of outstanding common stock equivalents, such as restricted stock units (“RSUs”).
−Removed: There were no anti-dilutive shares outstanding at June 30, 2022 or 2021.
−Removed: The following table sets forth the calculation of basic and diluted earnings per common share for the six and three month periods ended June 30, 2022 and 2021:
−Removed: Six months ended June 30,
+Added: There were no anti-dilutive shares outstanding at September 30, 2022 or 2021.
+Added: The following table sets forth the calculation of basic and diluted earnings per common share for the nine and three month periods ended September 30, 2022 and 2021:
+Added: Nine months ended September 30,
(in thousands, except for per share amount)
2 unchanged sentences
Restricted stock units
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(in thousands, except for per share amount)
3 unchanged sentences
Note 3 – Investments
−Removed: The following table shows a comparison of amortized cost and fair values of investment securities at June 30, 2022 and December 31, 2021:
+Added: The following tables show a comparison of amortized cost and fair values of investment securities at September 30, 2022 and December 31, 2021:
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Available for Sale:
8 unchanged sentences
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Held to Maturity:
22 unchanged sentences
Total held to maturity
−Removed: The Corporation reassessed classification of certain investments and, effective February 1, 2022, the Corporation transferred $ 139.0 million of callable agencies, obligations of state and political subdivisions, and collateralized mortgage obligations from available for sale to held to maturity securities.
+Added: The Corporation reassessed the classification of certain investments and, effective February 1, 2022, transferred $ 139.0 million of callable agencies, obligations of state and political subdivisions, and collateralized mortgage obligations from available for sale to held to maturity securities.
The transfer occurred at fair value.
1 unchanged sentence
No gain or loss was recorded at the time of transfer.
−Removed: The following table shows the Corporation’s investment securities with gross unrealized and unrecognized losses and fair values at June 30, 2022 and December 31, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
+Added: The following table shows the Corporation’s investment securities with gross unrealized and unrecognized losses and fair values at September 30, 2022 and December 31, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position:
Less than 12 months
1 unchanged sentence
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Available for Sale:
4 unchanged sentences
Obligations of states and political subdivisions
−Removed: Collateralized debt obligations
Corporate Bonds
+Added: Collateralized debt obligations
Total available for sale
2 unchanged sentences
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Held to Maturity:
25 unchanged sentences
Management systematically evaluates securities for impairment on a quarterly basis.
−Removed: Based upon application of Accounting Standards Codification (“ASC”) Topic 320 (Section 320-10-35), management must assess whether (a) the Corporation has the intent to sell the security and (b) it is more likely than not that the Corporation will be required to sell the security prior to its anticipated recovery.
+Added: Based upon application of Accounting Standards Codification (“ASC”) Topic 320 (Section 320-10-35) issued by the Financial Accounting Standards Board (the “FASB”), management must assess whether (a) the Corporation has the intent to sell the security and (b) it is more likely than not that the Corporation will be required to sell the security prior to its anticipated recovery.
If neither applies, then declines in the fair value of securities below their cost that are considered other-than-temporary declines are split into two components.
5 unchanged sentences
Due to the duration and the significant market value decline in the pooled trust preferred securities held in our portfolio, we performed more extensive testing on these securities for purposes of evaluating whether or not an OTTI has occurred.
−Removed: The following table presents a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses that have been recognized in earnings for the trust preferred securities held in the CDO portfolio during the six and three month periods ended June 30, 2022 and 2021 that the Corporation does not intend to sell:
−Removed: Six Months Ended
+Added: The following table presents a cumulative roll-forward of the amount of non-cash OTTI charges related to credit losses that have been recognized in earnings for the trust preferred securities held in the CDO portfolio during the nine and three month periods ended September 30, 2022 and 2021 that the Corporation does not intend to sell:
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
1 unchanged sentence
Reduction for increases in cash flows expected to be collected
−Removed: Balance of credit-related OTTI at June 30
+Added: Balance of credit-related OTTI at September 30
Three Months Ended
+Added: September 30,
(in thousands)
−Removed: Balance of credit-related OTTI at April 1
+Added: Balance of credit-related OTTI at July 1
Reduction for increases in cash flows expected to be collected
−Removed: Balance of credit-related OTTI at June 30
−Removed: The amortized cost and estimated fair value of securities by contractual maturity at June 30, 2022 are shown in the following table.
+Added: Balance of credit-related OTTI at September 30
+Added: The amortized cost and estimated fair value of securities by contractual maturity at September 30, 2022 are shown in the following table.
Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.
−Removed: June 30, 2022
+Added: September 30, 2022
(in thousands)
16 unchanged sentences
Note 4 – Loans and Related Allowance for Loan Losses
−Removed: The following table summarizes the primary segments of the loan portfolio at June 30, 2022 and December 31, 2021:
+Added: The following table summarizes the primary segments of the loan portfolio at September 30, 2022 and December 31, 2021:
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Individually evaluated for impairment
3 unchanged sentences
Collectively evaluated for impairment
−Removed: The commercial and industrial portfolio in the table above includes $ 0.8 million and $ 7.7 million of Paycheck Protection Program (“PPP”) loans at June 30, 2022 and December 31, 2021, respectively, which are 100 % guaranteed by the SBA, and no allowance for loan loss (“ALL”) has been assigned to them.
−Removed: The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention and substandard within the internal risk rating system at June 30, 2022 and December 31, 2021:
+Added: The commercial and industrial portfolio in the table above includes $ 0.4 million and $ 7.7 million of Paycheck Protection Program (“PPP”) loans at September 30, 2022 and December 31, 2021, respectively, which are 100 % guaranteed by the SBA, and no allowance for loan loss (“ALL”) has been assigned to them.
+Added: The following table presents the classes of the loan portfolio summarized by the aggregate pass and the criticized categories of special mention and substandard within the internal risk rating system at September 30, 2022 and December 31, 2021:
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Commercial real estate
20 unchanged sentences
Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due.
−Removed: The increase of $ 6.3 million in the substandard category was related to one large relationship in the nursing care sector that was downgraded from special mention in the first quarter of 2022.
−Removed: This relationship continues to perform according to its contractual terms and is not considered impaired.
−Removed: The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at June 30, 2022 and December 31, 2021:
+Added: The increase of $ 9.9 million in the substandard category was related to one large relationship in the nursing care sector that was downgraded from special mention in the first quarter of 2022 and one large relationship in the airline sector that was added to the substandard portfolio in the third quarter of 2022.
+Added: These relationships continue to perform according to their contractual terms and are not considered impaired.
+Added: The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and non-accrual loans at September 30, 2022 and December 31, 2021:
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Commercial real estate
19 unchanged sentences
Residential mortgage - home equity
−Removed: Non-accrual loans that have been subject to partial charge-offs totaled $ 1.3 million at June 30, 2022 and $ 0.5 million at December 31, 2021.
−Removed: Loans secured by 1-4 family residential real estate properties in the process of foreclosure totaled $ 0.1 million at June 30, 2022 and $ 0.2 million at December 31, 2021.
−Removed: As a percentage of the loan portfolio, accruing loans past due 30 days or more increased to 0.37 % compared to 0.19 % at March 31, 2022 and 0.31 % as of December 31, 2021.
−Removed: The following table summarizes the primary segments of the ALL at June 30, 2022 and December 31, 2021, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:
+Added: Non-accrual loans that have been subject to partial charge-offs totaled $ 0.2 million at September 30, 2022 and $ 0.5 million at December 31, 2021.
+Added: There were no loans secured by 1-4 family residential real estate properties in the process of foreclosure at September 30, 2022 compared to $ 0.2 million of such loans at December 31, 2021.
+Added: As a percentage of the loan portfolio, accruing loans past due 30 days or more decreased to 0.27 % compared to 0.37 % at June 30, 2022 and 0.31 % as of December 31, 2021.
+Added: The following table summarizes the primary segments of the ALL at September 30, 2022 and December 31, 2021, segregated by the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment:
(in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
Individually evaluated
8 unchanged sentences
The evaluation of the need and amount of a specific allocation of the ALL and whether a loan can be removed from impairment status is made on a quarterly basis.
−Removed: The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at June 30, 2022 and December 31, 2021:
+Added: The following table presents impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required at September 30, 2022 and December 31, 2021:
Impaired Loans with
3 unchanged sentences
Investment (1)
−Removed: June 30, 2022
+Added: September 30, 2022
Commercial real estate
49 unchanged sentences
Both full and partial charge-offs reduce the recorded investment of the loan and the ALL and are considered to be charge-offs for purposes of all credit loss metrics and trends, including the historical rolling charge-off rates used in the determination of the ALL.
−Removed: The following tables present the activity in the ALL for the six and three month periods ended June 30, 2022 and 2021:
−Removed: (in thousands)
+Added: The following tables present the activity in the ALL for the nine and three month periods ended September 30, 2022 and 2021:
+Added: Nine months ended (in thousands)
ALL balance at January 1, 2022
−Removed: ALL balance at June 30, 2022
+Added: ALL balance at September 30, 2022
ALL balance at January 1, 2021
−Removed: ALL balance at June 30, 2021
−Removed: (in thousands)
−Removed: ALL balance at April 1, 2022
−Removed: ALL balance at June 30, 2022
−Removed: ALL balance at April 1, 2021
−Removed: ALL balance at June 30, 2021
+Added: ALL balance at September 30, 2021
+Added: Three months ended (in thousands)
+Added: ALL balance at July 1, 2022
+Added: ALL balance at September 30, 2022
+Added: ALL balance at July 1, 2021
+Added: ALL balance at September 30, 2021
The ALL is based on estimates, and actual losses may vary from current estimates.
1 unchanged sentence
The following table presents the average recorded investment in impaired loans by class and related interest income recognized for the periods indicated:
−Removed: Six months ended
−Removed: Six months ended
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: Nine months ended
+Added: Nine months ended
+Added: September 30, 2022
+Added: September 30, 2021
(in thousands)
21 unchanged sentences
Three months ended
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: September 30, 2022
+Added: September 30, 2021
(in thousands)
23 unchanged sentences
experiencing financial difficulties) and a concession has been granted.
−Removed: The Bank evaluates the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification.
+Added: The Bank evaluates the probability that the borrower will be in payment default on any of its debt in the foreseeable future without
+Added: modification.
To make this determination, the Bank performs a global financial review of the borrower and loan guarantors to assess their current ability to meet their financial obligations.
1 unchanged sentence
interest rate, payment, amortization period and/or maturity date) are modified in such a way to enable the borrower to cover the modified debt service payments based on current financials and cash flow adequacy.
−Removed: If a borrower’s hardship is thought to be temporary, then modified terms are only offered for that
+Added: If a borrower’s hardship is thought to be temporary, then modified terms are only offered for that time period.
Where possible, the Bank obtains additional collateral and/or secondary payment sources at the time of the restructure in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms.
8 unchanged sentences
The volume, type and performance of TDR activity is considered in the assessment of the local economic trend qualitative factor used in the determination of the ALL for loans that are evaluated collectively for impairment.
−Removed: There were 12 loans totaling $ 3.2 million and $ 3.3 million that were classified as TDRs at June 30, 2022 and December 31, 2021, respectively.
−Removed: The following table presents the volume and recorded investment in TDRs at the times they were modified, by class and type of modification that occurred during the periods indicated.
−Removed: During the six month period ended June 30, 2022, there were no new TDRs and no existing TDRs that were re-modified.
+Added: There were 12 loans totaling $ 3.1 million and $ 3.3 million that were classified as TDRs at September 30, 2022 and December 31, 2021, respectively.
+Added: During the nine month period ended September 30, 2022, there were no new TDRs and no existing TDRs that were re-modified.
The Bank had no significant commitments to lend additional funds to TDRs.
−Removed: During the six month period ended June 30, 2021, there were no new TDRs and one existing TDR that had reached its modification maturity date was re-modified.
+Added: During the nine month period ended September 30, 2021, there were no new TDRs and three existing TDRs that had reached their modification maturity date and were re-modified.
These modifications did not impact the ALL.
−Removed: During the six month periods ended June 30, 2022 and 2021, there were no payment defaults.
+Added: During the nine month periods ended September 30, 2022 and 2021, there were no payment defaults.
+Added: The following table presents the volume and recorded investment in TDRs at the times they were modified, by class and type of modification that occurred during the periods indicated.
Temporary Rate
3 unchanged sentences
(in thousands)
−Removed: Six months ended June 30, 2021
+Added: Nine months ended September 30, 2021
Commercial real estate
8 unchanged sentences
Residential mortgage – home equity
−Removed: The following table presents the volume and recorded investment in TDRs at the times they were modified, by class and type of modification that occurred during the periods indicated.
−Removed: During the three month period ended June 30, 2022, there were no new TDRs and no existing TDRs that were re-modified.
+Added: During the three month period ended September 30, 2022, there were no new TDRs and no existing TDRs that were re-modified.
The Bank had no significant commitments to lend additional funds to TDR borrowers.
−Removed: During the three month period ended June 30, 2021, there were no new TDRs and one existing TDR that had reached its modification maturity date was re-modified.
+Added: During the three month period ended September 30, 2021, there were no new TDRs and two existing TDRs that had reached their modification maturity date were re-modified.
These re-modifications did not impact the ALL.
−Removed: During the three months ended June 30, 2022 and 2021, there were no payment defaults under TDRs.
+Added: During the three months ended September 30, 2022 and 2021, there were no payment defaults under TDRs.
+Added: The following table presents the volume and recorded investment in TDRs at the times they were modified, by class and type of modification that occurred during the periods indicated.
Temporary Rate
3 unchanged sentences
(in thousands)
−Removed: Three months ended June 30, 2021
+Added: Three months ended September 30, 2021
Commercial real estate
9 unchanged sentences
Note 5 - Other Real Estate Owned, net
−Removed: The following table presents the components of other real estate owned (“OREO”) at June 30, 2022 and December 31, 2021:
+Added: The following table presents the components of other real estate owned (“OREO”) at September 30, 2022 and December 31, 2021:
(in thousands)
+Added: September 30,
Acquisition and development
1 unchanged sentence
Total OREO, net
−Removed: The following table presents the activity in the OREO valuation allowance for the six and three month periods ended June 30, 2022 and 2021:
−Removed: Six Months Ended
+Added: The following table presents the activity in the OREO valuation allowance for the nine and three month periods ended September 30, 2022 and 2021:
+Added: Nine Months Ended
Three Months Ended
+Added: September 30,
+Added: September 30,
(in thousands)
3 unchanged sentences
Balance at end of period
−Removed: The following table presents the components of OREO (income)/expenses, net, for the six and three month periods ended June 30, 2022 and 2021:
−Removed: Six Months Ended
+Added: The following table presents the components of OREO (income)/expenses, net, for the nine and three month periods ended September 30, 2022 and 2021:
+Added: Nine Months Ended
Three Months Ended
+Added: September 30,
+Added: September 30,
(in thousands)
27 unchanged sentences
Investments – The investment portfolio is classified and accounted for based on the guidance of ASC Topic 320, Investments – Debt and Equity Securities .
−Removed: The fair value of investments available-for-sale is determined using a market approach.
−Removed: At June 30, 2022 and December 31, 2021, the U.S.
−Removed: Government agencies and treasuries, residential and commercial mortgage-backed securities, and municipal bonds segments are classified as Level 2 within the valuation hierarchy.
−Removed: Their fair values were determined based upon market-corroborated inputs and valuation matrices, which were obtained through third party data service providers or securities brokers through which we have historically transacted both purchases and sales of investment securities.
+Added: The fair value of investments is determined using a market approach.
+Added: As of September 30, 2022, the U.S.
+Added: Government agencies and treasuries, residential and commercial mortgage-backed securities, collateralized mortgage obligations, and state and political subdivisions bonds, excluding the tax increment financing (“TIF”) bonds, were classified as Level 2 within the valuation hierarchy.
+Added: Their fair values were determined based upon market-corroborated inputs and valuation matrices, which were obtained through third party data service providers or securities brokers through which the Corporation has historically transacted both purchases and sales of investment securities.
+Added: The TIF bonds and collateralized debt obligation (“CDO”) portfolio, which consists of pooled trust preferred securities issued by banks, thrifts, and insurance companies, are classified as Level 3 within the valuation hierarchy.
+Added: The CDO fair values are determined by a third party using a discounted cash flow model.
Derivative financial instruments (Cash flow hedge) – The Corporation’s open derivative positions are interest rate swap agreements.
11 unchanged sentences
These assets are included as Level 3 fair values based upon the lowest level of input that is significant to the fair value measurements.
−Removed: For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2022 and December 31, 2021 were as follows:
+Added: For assets measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2022 and December 31, 2021 were as follows:
Fair Value Measurements
−Removed: at June 30, 2022 Using
−Removed: Assets/(liabilities)
+Added: at September 30, 2022 Using
Active Markets
32 unchanged sentences
Other real estate owned
−Removed: At June 30, 2022, the fair value of impaired loans with a valuation allowance or partial charge-off was $ 0.8 million, net of valuation allowances of $ 61,811 and partial charge-offs of $ 1.3 million.
−Removed: During the six months ended June 30, 2022, changes to the valuation allowance or additional charge off activity was recorded on loans with a net balance of approximately $ 0.3 million.
+Added: At September 30, 2022, the fair value of impaired loans with a valuation allowance or partial charge-off was $ 0.5 million, net of valuation allowances of $ 29,781 and partial charge-offs of $ 0.1 million.
+Added: During the nine months ended September 30, 2022, changes to the valuation allowance or additional charge off activity was recorded on loans with a net balance of approximately $ 0.1 million.
At December 31, 2021, the fair value of impaired loans with a valuation allowance or charge-off was $ 1.0 million, net of valuation allowances of $ 64,700 and charge-offs of $ 1.3 million.
During the year ended December 31, 2021, changes to the valuation allowance or additional charge off activity was recorded on loans with a net balance of approximately $ 0.4 million.
−Removed: There were no transfers of assets between any of the fair value hierarchy for the six month periods ended June 30, 2022 or 2021.
−Removed: For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2022 and December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:
+Added: There were no transfers of assets between any of the fair value hierarchy for the nine month periods ended September 30, 2022 or 2021.
+Added: For Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis as of September 30, 2022 and December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:
(in thousands)
Fair Value at
+Added: September 30,
Investment Securities – available for sale -CDO
1 unchanged sentence
Discount Margin
−Removed: Range of low to mid 300 and mid 400
+Added: Range of low to mid 300 and low to high 400
Non-recurring:
2 unchanged sentences
Marketability Discount
−Removed: 10.0% - 15.0% (1) (weighted avg 14.2 %)
Equity Investment
19 unchanged sentences
(1) Range would include discounts taken since appraisal and estimated values
−Removed: The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured on a recurring basis using Level 3 significant unobservable inputs for the six and three month periods ended June 30, 2022 and 2021:
+Added: The following tables show a reconciliation of the beginning and ending balances for fair valued assets measured on a recurring basis using Level 3 significant unobservable inputs for the nine and three month periods ended September 30, 2022 and 2021:
Fair Value Measurements
6 unchanged sentences
Included in other comprehensive loss
−Removed: Ending balance June 30, 2022
+Added: Ending balance September 30, 2022
Fair Value Measurements
3 unchanged sentences
Available for Sale
−Removed: Beginning balance April 1, 2022
+Added: Beginning balance July 1, 2022
Total gains realized/unrealized:
Included in other comprehensive income
−Removed: Ending balance June 30, 2022
+Added: Ending balance September 30, 2022
Fair Value Measurements
6 unchanged sentences
Included in other comprehensive loss
−Removed: Ending balance June 30, 2021
+Added: Ending balance September 30, 2021
Fair Value Measurements
3 unchanged sentences
Available for Sale
−Removed: Beginning balance April 1, 2021
+Added: Beginning balance July 1, 2021
Total losses realized/unrealized:
Included in other comprehensive income
−Removed: Ending balance June 30, 2021
−Removed: There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the six and three month periods ended June 30, 2022 or 2021.
+Added: Ending balance September 30, 2021
+Added: There were no gains or losses included in earnings attributable to the change in realized/unrealized gains or losses related to the assets for the nine and three month periods ended September 30, 2022 or 2021.
The disclosed fair values may vary significantly between institutions based on the estimates and assumptions used in the various valuation methodologies.
6 unchanged sentences
The actual carrying amounts and estimated fair values of the Corporation’s financial instruments that are included in the Consolidated Statement of Financial Condition are as follows:
−Removed: June 30, 2022
+Added: September 30, 2022
Fair Value Measurements
38 unchanged sentences
Note 7 – Accumulated Other Comprehensive Loss
−Removed: The following table presents the changes in each component of accumulated other comprehensive loss for the 12 months ended December 31, 2021, and the three months ended March 31, 2022 and June 30, 2022:
+Added: The following table presents the changes in each component of accumulated other comprehensive loss for the 12 months ended December 31, 2021 and the three month periods ended March 31, 2022, June 30, 2022 and September 30, 2022:
(in thousands)
10 unchanged sentences
Balance - June 30, 2022
−Removed: The following tables present the components of other comprehensive income/(loss) for the six and three month periods ended June 30, 2022 and 2021:
+Added: Other comprehensive
+Added: income/(loss) before
+Added: reclassifications
+Added: Amounts reclassified from
+Added: accumulated other
+Added: comprehensive loss
+Added: Balance - September 30, 2022
+Added: The following tables present the components of other comprehensive income/(loss) for the nine and three month periods ended September 30, 2022 and 2021:
Components of Other Comprehensive Loss
(in thousands)
−Removed: For the six months ended June 30, 2022
+Added: For the nine months ended September 30, 2022
Available for sale (AFS) securities with OTTI:
9 unchanged sentences
Unrealized holding losses on securities transferred to held to maturity
+Added: gains recognized in income
amortization recognized in income
12 unchanged sentences
(in thousands)
−Removed: For the six months ended June 30, 2021
+Added: For the nine months ended September 30, 2021
Available for sale (AFS) securities with OTTI:
Unrealized holding gains
−Removed: gains recognized in income
accretable yield recognized in income
6 unchanged sentences
Unrealized holding gains
+Added: gains recognized in income
amortization recognized in income
5 unchanged sentences
amortization of unrecognized loss
−Removed: amortization of prior service costs
Net pension plan liability adjustment
1 unchanged sentence
amortization of unrecognized loss
+Added: amortization of prior service costs
Net SERP liability adjustment
2 unchanged sentences
(in thousands)
−Removed: For the three months ended June 30, 2022
+Added: For the three months ended September 30, 2022
Available for sale (AFS) securities with OTTI:
4 unchanged sentences
Unrealized holding losses
−Removed: Unrealized holding losses on securities transferred from available for sale to held to maturity
gains recognized in income
2 unchanged sentences
Unrealized holding gains
+Added: gains recognized in income
amortization recognized in income
10 unchanged sentences
Other comprehensive loss
−Removed: Components of Other Comprehensive Income
+Added: Components of Other Comprehensive Loss
(in thousands)
−Removed: For the three months ended June 30, 2021
+Added: For the three months ended September 30, 2021
Available for sale (AFS) securities with OTTI:
3 unchanged sentences
Available for sale securities – all other:
−Removed: Unrealized holding gains
+Added: Unrealized holding losses
gains recognized in income
−Removed: Net unrealized gains on all other AFS securities
+Added: Net unrealized losses on all other AFS securities
Held to maturity securities:
+Added: Unrealized holding gains
+Added: gains recognized in income
amortization recognized in income
1 unchanged sentence
Cash flow hedges:
−Removed: Unrealized holding losses
+Added: Unrealized holding gains
Pension Plan:
−Removed: Unrealized net actuarial gain
+Added: Unrealized net actuarial loss
amortization of unrecognized loss
3 unchanged sentences
amortization of unrecognized loss
+Added: amortization of prior service costs
Net SERP liability adjustment
−Removed: Other comprehensive income
−Removed: The following table presents the details of amounts reclassified from accumulated other comprehensive loss for the six and three month periods ended June 30, 2022 and 2021:
+Added: Other comprehensive loss
+Added: The following table presents the details of amounts reclassified from accumulated other comprehensive loss for the nine and three month periods ended September 30, 2022 and 2021:
Amounts Reclassified from
−Removed: Six Months Ended
+Added: Nine Months Ended
Accumulated Other Comprehensive Loss
+Added: September 30,
Affected Line Item in the Statement
10 unchanged sentences
Interest income on taxable investment securities
+Added: Gains/(losses) recognized
+Added: Net gains/(losses)
Provision for income tax expense
6 unchanged sentences
Other Expense
+Added: Amortization of prior service costs
+Added: Salaries and employee benefits
Provision for income tax expense
3 unchanged sentences
Accumulated Other Comprehensive Loss
+Added: September 30,
Affected Line Item in the Statement
5 unchanged sentences
Provision for income tax expense
−Removed: Net unrealized gains on available for sale investment securities - all others:
−Removed: Gains recognized
−Removed: Provision for income tax expense
Net unrealized losses on held to maturity securities:
Interest income on taxable investment securities
+Added: Gains/(losses) recognized
+Added: Net gains/(losses)
Provision for income tax expense
2 unchanged sentences
Other expense
+Added: Amortization of prior service costs
+Added: Salaries and employee benefits
Provision for income tax expense
2 unchanged sentences
Other expense
+Added: Amortization of prior service costs
+Added: Salaries and employee benefits
Provision for income tax expense
2 unchanged sentences
The following tables present the components of the net periodic pension plan cost for First United Corporation’s noncontributory Defined Benefit Pension Plan (the “Pension Plan”) and the Bank’s Defined Benefit Supplemental Executive Retirement Plan (“Defined Benefit SERP”) for the periods indicated:
−Removed: Six Months Ended
+Added: Nine Months Ended
Three Months Ended
+Added: September 30,
+Added: September 30,
(in thousands)
3 unchanged sentences
Net pension credit included in employee benefits and other expense
−Removed: At June 30, 2022, the market value of the pension plan decreased $ 9.4 million since December 31, 2021.
−Removed: This decrease is related to the increasing rate environment and market volatility resulting in a pension plan liability of $ 4.6 million at June 30, 2022 compared to a pension plan asset of $ 4.8 million at December 31, 2021.
−Removed: Six Months Ended
+Added: The market value of the pension plan decreased $ 12.5 million during the first nine months of 2022.
+Added: This decrease was due to the increasing rate environment and market volatility, which resulted in a pension plan liability of $ 7.7 million at September 30, 2022 compared to a pension plan asset of $ 4.8 million at December 31, 2021.
+Added: Nine Months Ended
Three Months Ended
Defined Benefit SERP
+Added: September 30,
+Added: September 30,
(in thousands)
17 unchanged sentences
The Corporation will assess the need for future annual contributions to the pension plan based upon its funded status and an evaluation of the future benefits to be provided thereunder.
−Removed: No contributions were made to the Pension Plan during the first six months of 2022 or 2021.
+Added: No contributions were made to the Pension Plan during the first nine months of 2022 or 2021.
The Corporation expects to fund the annual projected benefit payments for the Defined Benefit SERP from operations.
11 unchanged sentences
In January 2021, the Board of Directors approved discretionary contributions to three participants totaling $ 101,257 .
−Removed: The Corporation recorded $ 25,314 of related compensation expense for the first six months of 2022 and 2021 related to these contributions.
−Removed: The Corporation recorded $ 12,657 of related compensation expense for the second quarter of 2022 and 2021 related to these contributions.
+Added: The Corporation recorded $ 37,971 of related compensation expense for the first nine months of 2022 and 2021 related to these contributions.
+Added: The Corporation recorded $ 12,657 of related compensation expense for the third quarter of 2022 and 2021 related to these contributions.
In January 2022, the Board of Directors approved discretionary contributions to three participants totaling $ 103,689 .
−Removed: The Corporation recorded $ 25,922 of related compensation expense for the first six months of 2022 related to these contributions.
−Removed: The Corporation recorded $ 12,961 of related compensation expense for the second quarter of 2022 related to these contributions.
+Added: The Corporation recorded $ 38,883 of related compensation expense for the first nine months of 2022 and $ 12,961 of related compensation expense for the third quarter of 2022 related to these contributions.
Each discretionary contribution has a two year vesting period.
8 unchanged sentences
In May 2022, a total of 14,940 fully vested shares of common stock were issued to directors, which had a grant date fair value of $ 18.92 per share.
−Removed: Director stock compensation expense was $ 125,588 for the six months ended June 30, 2022 and $ 132,860 for the six months ended June 30, 2021.
−Removed: Director stock compensation expense was $ 66,730 for the second quarter of 2022 and $ 62,644 for the second quarter of 2021.
+Added: Director stock compensation expense was $ 196,254 for the nine months ended September 30, 2022 and $ 191,717 for the nine months ended September 30, 2021.
+Added: Director stock compensation expense was $ 70,666 for the third quarter of 2022 and $ 58,857 for the third quarter of 2021.
Restricted Stock Units
16 unchanged sentences
On March 26, 2022, 1,688 shares of the 3,380 remaining time vesting shares were issued to participants.
−Removed: Stock compensation expense was $ 42,024 and $ 52,254 for the six month periods ended June 30, 2022 and 2021.
−Removed: Stock compensation expense was $ 15,896 and $ 26,127 for the second quarter of 2022 and 2021, respectively.
−Removed: Unrecognized compensation expense at June 30, 2022 related to unvested RSUs was $ 47,687 .
+Added: In the third quarter of 2022, it was projected that the growth metric will not be met at 50%;
+Added: therefore, the stock compensation expense was adjusted accordingly.
+Added: Stock compensation expense was ($ 5,299 ) and $ 78,381 for the nine month periods ended September 30, 2022 and 2021.
+Added: Stock compensation expense was ($ 37,091 ) and $ 26,127 for the third quarter of 2022 and 2021, respectively.
+Added: Unrecognized compensation expense at September 30, 2022 related to unvested RSUs was $ 21,195 .
In May 2021, RSUs relating to 7,389 performance vesting shares and 3,693 time vesting shares (target level) for plan year 2021 were granted, which had a grant date fair market value of $ 17.93 per share of common stock underlying each RSU.
2 unchanged sentences
On May 5, 2022, 1,230 shares of the 3,693 time-vesting RSUs were issued to participants.
−Removed: Stock compensation expense was $ 33,142 and $ 11,048 for the first six months of 2022 and 2021, respectively.
−Removed: Stock compensation expense was $ 16,571 and $ 11,048 for the second quarter of 2022 and 2021, respectively.
−Removed: Unrecognized compensation expense as of June 30, 2022 related to unvested units was $ 121,522 .
+Added: Stock compensation expense was $ 49,714 and $ 27,619 for the first nine months of 2022 and 2021, respectively.
+Added: Stock compensation expense was $ 16,571 for both the third quarter of 2022 and 2021, respectively.
+Added: Unrecognized compensation expense as of September 30, 2022 related to unvested units was $ 104,951 .
In March 2022, RSUs relating to 8,096 performance vesting shares and 6,238 time vesting shares (target level) for plan year 2022 were granted, which had a grant date fair market value of $ 21.88 per share of common stock underlying each RSU.
1 unchanged sentence
The time-vesting RSUs will vest ratably over a three year period beginning on March 9, 2023.
−Removed: Stock compensation expense was $ 26,145 for the six and three month periods ended June 30, 2022.
−Removed: Unrecognized compensation expense as of June 30, 2022 related to unvested units was $ 287,598 .
+Added: Stock compensation expense was $ 52,290 and $ 26,145 for the nine and three month periods ended September 30, 2022, respectively.
+Added: Unrecognized compensation expense as of September 30, 2022 related to unvested units was $ 261,453 .
Note 10 – Derivative Financial Instruments
3 unchanged sentences
In March 2016, the Corporation entered into four interest rate swap contracts totaling $ 30.0 million notional amount, hedging future cash flows associated with floating rate trust preferred debt.
−Removed: As of June 30, 2022, $ 20.0 million notional amount remains.
−Removed: The fair value of the interest rate swap contracts was $ 0.6 million and $( 0.5 ) million at June 30, 2022 and December 31, 2021, respectively.
−Removed: For the six months ended June 30, 2022, the Corporation recorded an increase in the value of the derivatives of $ 1.1 million and the related deferred tax of $ 0.3 million in net accumulated other comprehensive loss to reflect the effective portion of cash flow
−Removed: For the three months ended June 30, 2022, the Corporation recorded an increase in the value of the derivatives of $ 0.2 million and the related deferred tax of $ 0.1 million in net accumulated other comprehensive loss to reflect the effective portion of cash flow hedges.
+Added: As of September 30, 2022, $ 20.0 million notional amount remains.
+Added: The fair value of the interest rate swap contracts was $ 1.2 million and $( 0.5 ) million at September 30, 2022 and December 31, 2021, respectively.
+Added: For the nine months ended September 30, 2022, the Corporation recorded an increase in the value of the derivatives of $ 1.6 million and the related deferred tax of $ 0.5 million in net accumulated other comprehensive loss to reflect the effective portion of cash flow hedges.
+Added: For the three months ended September 30, 2022, the Corporation recorded an increase in the value of the derivatives of $ 0.5 million and the related deferred tax of $ 0.1 million in net accumulated other comprehensive loss to reflect the effective portion of cash flow hedges.
ASC Subtopic 815-30 requires the net accumulated other comprehensive loss to be reclassified to earnings if the hedge becomes ineffective or is terminated.
−Removed: There was no hedge ineffectiveness recorded for the six or three months ended June 30, 2022.
+Added: There was no hedge ineffectiveness recorded for the six or three months ended September 30, 2022.
The Corporation does not expect any material losses relating to these hedges to be reclassified into earnings within the next 12 months.
−Removed: Interest rate swap agreements are entered into with counterparties that meet established credit standards and the Corporation believes that the credit risk inherent in these contracts is not significant as of June 30, 2022.
−Removed: The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the six and three month periods ended June 30, 2022 and 2021.
+Added: Interest rate swap agreements are entered into with counterparties that meet established credit standards and the Corporation believes that the credit risk inherent in these contracts is not significant as of September 30, 2022.
+Added: The table below discloses the impact of derivative financial instruments on the Corporation’s Consolidated Financial Statements for the nine and three month periods ended September 30, 2022 and 2021.
Derivative in Cash Flow Hedging Relationships
2 unchanged sentences
Amount of gain or
−Removed: income or derivative
Amount of gain or
+Added: income or derivative
+Added: (loss) recognized in
(loss) reclassified from
(ineffective portion
−Removed: (loss) recognized in
+Added: OCI on derivative
accumulated OCI into
and amount excluded
−Removed: OCI on derivative
+Added: (effective portion),
income (effective
1 unchanged sentence
(in thousands)
−Removed: (effective portion)
Interest rate contracts:
−Removed: Six months ended:
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: Nine months ended:
+Added: September 30, 2022
+Added: September 30, 2021
Three months ended:
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: September 30, 2022
+Added: September 30, 2021
(a) Reported as interest expense
13 unchanged sentences
Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees.
−Removed: The Corporation’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the
−Removed: period in which the service is provided.
+Added: The Corporation’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided.
Check orders and other deposit account related fees are largely transactional based, and therefore, the Corporation’s performance obligation is satisfied, and related revenue recognized, at a point in time.
10 unchanged sentences
Payment is typically received immediately or in the following month.
−Removed: The following presents noninterest income, segregated by revenue streams that are within and outside the scope of ASC Topic 606, for the six and three month periods ended June 30, 2022 and June 30, 2021:
−Removed: Six Months Ended
+Added: The following presents noninterest income, segregated by revenue streams that are within and outside the scope of ASC Topic 606, for the nine and three month periods ended September 30, 2022 and September 30, 2021:
+Added: Nine Months Ended
Three Months Ended
+Added: September 30,
+Added: September 30,
(in thousands)
10 unchanged sentences
Note 12 – Regulatory Capital Requirements
−Removed: The following table presents our capital ratios as of June 30, 2022 and December 31, 2021.
+Added: The following table presents our capital ratios as of September 30, 2022 and December 31, 2021.
+Added: September 30,
Total Capital (to risk-weighted assets)
6 unchanged sentences
First United Bank & Trust
−Removed: As of June 30, 2022 and December 31, 2021, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.
+Added: As of September 30, 2022 and December 31, 2021, the Bank was considered “well capitalized” under the regulatory framework for prompt corrective action.
Note 13 – Borrowed Funds
1 unchanged sentence
(Dollars in thousands)
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
−Removed: Overnight borrowings, weighted average interest rate of 1.75 % at June 30, 2022
+Added: Overnight borrowings, weighted average interest rate of 3.25 % at September 30, 2022
Securities sold under agreements to repurchase:
4 unchanged sentences
Approximate weighted average rate during the period
−Removed: Short-term borrowings increased $ 12.2 million since December 31, 2021, driven by $ 18.9 million in overnight borrowings, which were offset by a decrease in other short-term borrowings of $ 6.7 million during the six months related to our Treasury Management customers utilizing their funds.
−Removed: At June 30, 2022, the repurchase agreements were secured by $ 69.5 million in investment securities issued by government related agencies.
+Added: Short term borrowings increased $ 32.0 million since December 31, 2021, driven by $ 20.0 million in overnight borrowings and an increase in our overnight investments Treasury product of $ 12.0 million during the quarter.
+Added: The increase in overnight borrowings at September 30, 2022 was primarily driven by the strong loan growth and a timing delay of the receipt of deposit funding from a large customer driven transaction.
+Added: These funds were received shortly after quarter end and subsequently repaid the $ 20.0 million in overnight borrowings in full.
+Added: At September 30, 2022, the repurchase agreements were secured by $ 85.4 million in investment securities issued by government related agencies.
A minimum of 102 % of fair value is pledged against account balances.
1 unchanged sentence
Recently issued but not yet effective Accounting Pronouncements
−Removed: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments- Credit Losses (Topic 326):
+Added: In June 2016, FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments- Credit Losses (Topic 326):
Measurement of Credit Losses on Financial Instruments .
−Removed: ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments.
+Added: ASU 2016-13 introduces an approach based on expected losses to
+Added: estimate credit losses on certain types of financial instruments.
It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchases financial assets with credit deterioration since their origination.
−Removed: The new model referred to as current expected credit losses (“CECL”) model, will
+Added: The new model referred to as current expected credit losses (“CECL”) model, will apply to:
(a) financial assets subject to credit losses and measured at amortized cost;
22 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.