Item 1A. Risk Factors
Item 1A.
RISK FACTORS
In addition to the other information set forth in this report, please refer to United’s Annual Report on Form 10-K
for the year ended December 31, 2021 for disclosures with respect to United’s risk factors which could materially affect United’s business, financial condition or future results. The risks described in the Annual Report on Form 10-K
are not the only risks facing United. Additional risks and uncertainties not currently known to United or that United currently deems to be immaterial also may materially adversely affect United’s business, financial condition and/or operating results.
The following risk factor supplements the “Risk Factors” section in Item 1A of United’s Annual Report on Form 10-K
for the year ended December 31, 2021:
Our Needs to Improve rating under The Community Reinvestment Act may restrict our operations and limit our ability to pursue certain strategic opportunities.
As described in our Management’s Discussion and Analysis of Financial Condition and Results of Operations under the heading of “Recent Developments,” United Bank (the “Bank”), the wholly-owned bank subsidiary of United, has received a Community Reinvestment Act (“CRA”) Performance Evaluation with a rating from the Federal Reserve Bank of Richmond (the “FRB”) of “Needs to Improve.” A “Needs to Improve” rating results in restrictions on certain expansionary activities, including certain mergers and acquisitions and the establishment of bank branches. These restrictions will remain in place until the FRB issues a higher CRA rating following a subsequent CRA examination. The next CRA examination is expected to commence in October 2022. The precise timing of the completion of that examination and any results therefrom will not be known until later.
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