FINANCIAL STATEMENTS (UNAUDITED)
−Removed: The June 30, 2022 and December 31, 2021, consolidated balance sheets of United Bankshares, Inc.
−Removed: and Subsidiaries (“United” or the “Company”), consolidated statements of income and comprehensive income for the three and six months ended June 30, 2022 and 2021, the related consolidated statement of changes in shareholders’ equity for the three and six months ended June 30, 2022 and 2021, the related condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021, and the notes to consolidated financial statements appear on the following pages.
+Added: The September 30, 2022 and December 31, 2021, consolidated balance sheets of United Bankshares, Inc.
+Added: and Subsidiaries (“United” or the “Company”), consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2022 and 2021, the related consolidated statement of changes in shareholders’ equity for the three and nine months ended September 30, 2022 and 2021, the related condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021, and the notes to consolidated financial statements appear on the following pages.
CONSOLIDATED BALANCE SHEETS
6 unchanged sentences
Total cash and cash equivalents
−Removed: Securities available for sale at estimated fair value (amortized cost-$ 5,153,285 at June 30, 2022 and $ 4,031,494 at December 31, 2021, allowance for credit losses of $ 0 at June 30, 2022 and December 31, 2021)
−Removed: Securities held to maturity, net of allowance for credit losses of $ 18 at June 30, 2022 and $ 19 at December 31, 2021 (estimated fair value-$ 1,020 at June 30, 2022 and December 31, 2021)
+Added: Securities available for sale at estimated fair value (amortized cost-$ 5,142,448 at September 30, 2022 and $ 4,031,494 at December 31, 2021, allowance for credit losses of $ 0 at September 30, 2022 and December 31, 2021)
+Added: Securities held to maturity, net of allowance for credit losses of $ 19 at September 30, 2022 and December 31, 2021 (estimated fair value-$ 1,020 at September 30, 2022 and December 31, 2021)
Equity securities at estimated fair value
8 unchanged sentences
Operating lease right-of-use
−Removed: Mortgage servicing rights, net of valuation allowance of $ 0 at June 30, 2022 and $ 883 at December 31, 2021
+Added: Mortgage servicing rights, net of valuation allowance of $ 0 at September 30, 2022 and $ 883 at December 31, 2021
Bank-owned life insurance (“BOLI”)
−Removed: Accrued interest receivable, net of allowance for credit losses of $ 0 at June 30, 2022 and $ 8 at December 31, 2021
+Added: Accrued interest receivable, net of allowance for credit losses of $ 0 at September 30, 2022 and $ 8 at December 31, 2021
Noninterest-bearing
15 unchanged sentences
issued- 141,897,873
−Removed: and 141,360,266 at June 30, 2022 and December 31, 2021, respectively, including 7,265,805 and 4,967,508 shares in treasury at June 30, 2022 and December 31, 2021, respectively
+Added: and 141,360,266 at September 30, 2022 and December 31, 2021, respectively, including 7,266,226 and 4,967,508 shares in treasury at September 30, 2022 and December 31, 2021, respectively
Retained earnings
9 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Interest income
19 unchanged sentences
Mortgage loan servicing income
−Removed: Net investment securities gains
+Added: Net investment securities ( losses)
Total other income
4 unchanged sentences
Other real estate owned (“OREO”) expense
−Removed: Net gains on the sales of OREO properties
+Added: Net losses (gains) on the sales of OREO properties
Equipment expense
11 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Earnings per common share:
6 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: Change in net unrealized (loss) gain on available-for-sale
+Added: Nine Months Ended
+Added: Change in net unrealized loss on available-for-sale
(“AFS”) securities, net of tax
−Removed: Change in net unrealized gain (loss) on cash flow hedge, net of tax
+Added: Change in net unrealized gain on cash flow hedge, net of tax
Change in pension plan assets, net of tax
5 unchanged sentences
(Dollars in thousands, except per share data)
−Removed: Six Months Ended June 30, 2022
+Added: Nine Months Ended September 30, 2022
Comprehensive
−Removed: Income (Loss)
Shareholders’
10 unchanged sentences
Comprehensive income:
−Removed: Other comprehensive loss
−Removed: Total comprehensive loss
+Added: Other comprehensive loss, net of tax
+Added: Total comprehensive loss, net of tax
Stock based compensation expense
4 unchanged sentences
Balance at June 30, 2022
+Added: Comprehensive income:
+Added: Other comprehensive loss, net of tax
+Added: Total comprehensive loss, net of tax
+Added: Stock based compensation expense
+Added: Purchase of treasury stock (214 shares)
+Added: Cash dividends ($ 0.36 per share)
+Added: Stock grant forfeiture ( 207 shares)
+Added: Net issuance of common stock under stock-based compensation plans ( 51,422 shares)
+Added: Balance at September 30, 2022
See notes to consolidated unaudited financial statements.
3 unchanged sentences
(Dollars in thousands, except per share data)
−Removed: Six Months Ended June 30, 2021
+Added: Nine Months Ended September 30, 2021
Comprehensive
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Cash dividends ($ 0.35 per share)
−Removed: Net issuance of common stock under stock-based compensation plans ( 326,522 shares)
+Added: Grant of restricted stock ( 180,901 shares)
+Added: Common stock options exercised ( 145,621 shares)
Balance at March 31, 2021
5 unchanged sentences
Stock grant forfeiture ( 1,971 shares)
−Removed: Net issuance of common stock under stock-based compensation plans ( 29,767 shares)
+Added: Grant of restricted stock ( 1,443 shares)
+Added: Common stock options exercised ( 28,324 shares)
Balance at June 30, 2021
+Added: Comprehensive income:
+Added: Other comprehensive income, net of tax
+Added: Total comprehensive income, net of tax
+Added: Stock based compensation expense
+Added: Cash dividends ($ 0.35 per share)
+Added: Stock grant forfeiture ( 1,531 shares)
+Added: Common stock options exercised ( 1,717 shares)
+Added: Balance at September 30, 2021
See notes to consolidated unaudited financial statements.
3 unchanged sentences
(Dollars in thousands)
−Removed: Six Months Ended
+Added: Nine Months Ended
NET CASH PROVIDED BY OPERATING ACTIVITIES
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Actual results could differ from those estimates.
−Removed: The financial statements presented as of June 30, 2022 and 2021 and for the three-month and six-month
−Removed: periods then ended have not been audited.
+Added: The financial statements presented as of September 30, 2022 and 2021 and for the three-month and nine-month periods then ended have not been audited.
The Notes to Consolidated Financial Statements appearing in United’s 2021 Annual Report on Form 10-K,
which includes descriptions of significant accounting policies, should be read in conjunction with these interim financial statements.
−Removed: In the opinion of management, any adjustments necessary for a fair presentation of financial position and results of operations for the interim periods have been made.
−Removed: Such adjustments are of a normal and recurring nature.
+Added: Certain amounts reported in prior periods have been reclassified to conform with the current presentation.
+Added: In addition, $ 1,483,987
+Added: was reclassed from noninterest-bearing deposits to interest-bearing deposits on United’s Consolidated Balance Sheets for the period ended December 31, 2021 due to the nature of the underlying deposit accounts and a misclassification in the previous presentation.
+Added: This reclassification did not impact any other amounts reported or disclosed in the consolidated financial statements and footnotes.
+Added: In the opinion of management, any additional adjustments necessary for a fair presentation of financial position and results of operations for the interim periods have been made.
The accompanying consolidated interim financial statements include the accounts of United and its wholly-owned subsidiaries.
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“Derivatives and Hedging (Topic 815):
−Removed: Fair Value Hedging – Portfolio Layer Method”.
+Added: Fair Value Hedging – Portfolio
+Added: Layer Method”.
further aligns risk management objectives with hedge accounting results on the application of the last-of-layer
method, which was first introduced in ASU No.
−Removed: The enhanced guidance further improves the
−Removed: last-of-layer
+Added: The enhanced guidance further improves the last-of-layer
concepts to expand to nonprepayable financial assets and allows more flexibility in the derivative structures used to hedge the interest rate risk.
29 unchanged sentences
is effective for public business entities upon issuance through December 31, 2022.
−Removed: United is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR.
−Removed: In addition, United took steps to ensure that no new contracts using LIBOR are originated after December 31, 2021.
+Added: United has implemented a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR.
+Added: In addition, United took steps to ensure that no new contracts using LIBOR were originated after December 31, 2021.
At this time, United is prioritizing the Secured Overnight Financing Rate (“SOFR”) and Prime as the preferred alternatives to LIBOR;
4 unchanged sentences
The amendments in the ASU remove certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component.
−Removed: The ASU also amends the derivative scope exception guidance for contracts in an entity’s own equity.
+Added: The ASU also amends the
+Added: derivative scope exception guidance for contracts in an entity’s own equity.
The amendments remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception.
−Removed: In addition, the ASU expands
−Removed: disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share
+Added: In addition, the ASU expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share
calculations that are impacted by the amendments.
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As a result of the merger, United recorded preliminary fair value discounts of $ 7,744 on the loans and leases acquired, $ 230 on land acquired, $ 50 on OREO properties acquired and $ 415 on a trust preferred issuance, and premiums of $ 6,766 on investment securities acquired, $ 492 on buildings acquired, $ 2,741 on interest-bearing deposits, and $ 457 on long-term FHLB advances, respectively.
−Removed: United also recorded an allowance for credit losses, including a reserve for unfunded commitments, of $ 25,920 on the loans and commitments acquired split between $ 12,788 for purchased credit deteriorated (“PCD”) loans which is part of the acquisition date fair value, and $ 13,132 for non-PCD loans recorded to the provision for credit losses.
+Added: United also recorded an allowance for credit losses, including a reserve for unfunded commitments, of $ 25,920 on the loans and commitments acquired split between $ 12,788 for purchased credit deteriorated (“PCD”) loans which is part of the acquisition date fair value, and $ 13,132 for non-PCD
+Added: loans recorded to the provision for credit losses.
The discounts and premium amounts, except for discount on the land, OREO and FHLB advances acquired, are being accreted or amortized on an accelerated or straight-line basis, based on the type of asset or liability, over each asset’s or liability’s estimated remaining life at the time of acquisition.
The FHLB advances acquired were subsequently repaid prior to year-end.
−Removed: At June 30, 2022, the discount on the trust preferred issuance had an estimated remaining life of 11.75 years and the premiums on the buildings, and interest-bearing deposits each had an average estimated remaining life of 30.75 years, and 4.75 years, respectively.
−Removed: loans and leases acquired from Community Bankers Trust were recorded at their fair value at the Acquisition Date based on a discounted cash flow methodology.
+Added: At September 30, 2022, the discount on the trust preferred issuance had an estimated remaining life of 11.50 years and the premiums on the buildings, and interest-bearing deposits each had an average estimated remaining life of 30.50 years, and 4.50 years, respectively.
+Added: Portfolio loans and leases acquired from Community Bankers Trust were recorded at their fair value at the Acquisition Date based on a discounted cash flow methodology.
The estimated fair value incorporates adjustments related to market loss assumptions and prevailing market interest rates for comparable assets and other market factors such as liquidity from the perspective of a market participant.
−Removed: Also, acquired portfolio loans and leases were evaluated upon acquisition and classified as either PCD, which indicates that the loan has experienced a more-than-insignificant deterioration in credit quality since origination, or
+Added: Also, acquired portfolio loans and leases were evaluated upon acquisition and classified as either PCD, which indicates that the loan has experienced a more-than-insignificant deterioration in credit quality since origination, or non-PCD.
United considered a variety of factors in evaluating the acquired loans and leases for a more-than-insignificant deterioration in credit quality, including but not limited to risk grades, delinquency, nonperforming status, current or previous troubled debt restructurings or bankruptcies, watch list credits and other qualitative factors that indicated a deterioration in credit quality since origination.
1 unchanged sentence
This initial allowance for credit losses is allocated to individual PCD loans and leases and added to the acquisition date fair values to establish the initial amortized cost basis for the PCD loans and leases.
−Removed: The difference between the unpaid principal balance (“UPB”), or par value, of PCD loans and leases and the amortized cost basis is considered to relate to noncredit factors and resulted in a discount of $
−Removed: 3,559 at the Acquisition Date.
−Removed: This discount will be recognized through interest income on a level-yield method over the life of the loans which is estimated to be a weighted-average of
−Removed: acquired loans and leases, the differences between the initial fair value and the UPB, or par value, are recognized as interest income on a level-yield basis over the lives of the related loans and leases which is estimated to be a weighted-average of
−Removed: The total fair value mark on the
+Added: The difference between the unpaid principal balance (“UPB”), or par value, of PCD loans and leases and the amortized cost basis is considered to relate to noncredit factors and resulted in a discount of $ 3,559 at the Acquisition Date.
+Added: This discount will be recognized through interest income on a level-yield method over the life of the loans which is estimated to be a weighted-average of 5.5 years.
+Added: acquired loans and leases, the differences between the initial fair value and the UPB, or par value, are recognized as interest income on a level-yield basis over the lives of the related loans and leases which is estimated to be a weighted-average of 5.6 years.
+Added: The total fair value mark on the non-PCD
loans and leases at the Acquisition Date was $ 4,186 .
−Removed: At the Acquisition Date, an initial allowance for expected credit losses of $
−Removed: 12,288 was recorded with a corresponding charge to the provision for credit losses in the Consolidated Statements of Income.
−Removed: Subsequent changes in the allowance for credit losses related to PCD and
+Added: At the Acquisition Date, an initial allowance for expected credit losses of $ 12,288 was recorded with a corresponding charge to the provision for credit losses in the Consolidated Statements of Income.
+Added: Subsequent changes in the allowance for credit losses related to PCD and non-PCD
loans and leases are recognized in the provision for credit losses.
26 unchanged sentences
Preliminary resulting goodwill
−Removed: The following table presents certain unaudited pro forma information for the results of operations for the first six months of 2021, as if the Merger had occurred on January 1, 2021.
+Added: The following table presents certain unaudited pro forma information for the results of operations for the first nine months of 2021, as if the Merger had occurred on January 1, 2021.
These results combine the historical results of Community Bankers Trust into United’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair valuation adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on the indicated date nor are they intended to represent or be indicative of future results of operations.
−Removed: In particular, no adjustments have been made to eliminate the amount of Community Bankers Trust’s provision for credit losses for the first six months of 2021 that may not have been necessary had the acquired loans and leases been recorded at fair value as of the beginning of 2021.
+Added: In particular, no adjustments have been made to eliminate the amount of Community Bankers Trust’s provision for credit losses for the first nine months of 2021 that may not have been necessary had the acquired loans and leases been recorded at fair value as of the beginning of 2021.
Additionally, United expects to achieve operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts.
−Removed: Six Months Ended
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2021
Total Revenues (1)
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The amortized cost, estimated fair values, and allowance for credit losses of securities available for sale are summarized as follows.
−Removed: June 30, 2022
+Added: September 30, 2022
Treasury securities and obligations of U.S.
23 unchanged sentences
debt securities.
−Removed: The table above excludes accrued interest receivable of $ 20,039 and $ 15,353 at June 30, 2022 and December 31, 2021, respectively, that is recorded in “Accrued interest receivable.”
−Removed: The following is a summary of securities available for sale which were in an unrealized loss position at June 30, 2022 and December 31, 2021.
+Added: The table above excludes accrued interest receivable of $ 22,269 and $ 15,353 at September 30, 2022 and December 31, 2021, respectively, that is recorded in “Accrued interest receivable.”
+Added: The following is a summary of securities available for sale which were in an unrealized loss position at September 30, 2022 and December 31, 2021.
Less than 12 months
12 months or longer
−Removed: June 30, 2022
+Added: September 30, 2022
Treasury securities and obligations of U.S.
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Three Months Ended
−Removed: Six Months Ended
−Removed: Proceeds from sales and calls
+Added: Nine Months Ended
+Added: Proceeds from maturities, sales and calls
Gross realized gains
Gross realized losses
−Removed: At June 30, 2022, gross unrealized losses on available for sale securities were $ 341,906 on 1,374 securities of a total portfolio of 1,543 available for sale securities.
−Removed: Securities with the most significant gross unrealized losses at June 30, 2022 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities, asset-backed securities and other corporate securities.
+Added: At September 30, 2022, gross unrealized losses on available for sale securities were $ 494,529 on 1,468 securities of a total portfolio of 1,526 available for sale securities.
+Added: Securities with the most significant gross unrealized losses at September 30, 2022 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities, asset-backed securities and other corporate securities.
In determining whether or not a security is impaired, management considered the severity of the loss in conjunction with United’s positive intent and the more likely than not ability to hold these securities to recovery of their cost basis or maturity.
−Removed: Management believes the significant amount of gross unrealized losses on available for sale securities at June 30, 2022 was primarily the result of rising interest rates and does not reflect any expected credit losses.
+Added: Management believes the significant amount of gross unrealized losses on available for sale securities at September 30, 2022 was primarily the result of rising interest rates and does not reflect any expected credit losses.
State and political subdivisions
United’s state and political subdivisions portfolio relates to securities issued by various municipalities located throughout the United States.
−Removed: The total amortized cost of available for sale state and political subdivision securities was $ 836,622 at June 30, 2022.
−Removed: As of June 30, 2022, approximately 53 % of the portfolio was supported by the general obligation of the issuing municipality, which allows for the securities to be repaid by any means available to the municipality.
−Removed: The majority of the portfolio was rated AA or higher, and no securities within the portfolio were rated below investment grade as of June 30, 2022.
+Added: The total amortized cost of available for sale state and political subdivision securities was $ 827,078 at September 30, 2022.
+Added: As of September 30, 2022, approximately 53 % of the portfolio was supported by the general obligation of the issuing municipality, which allows for the securities to be repaid by any means available to the municipality.
+Added: The majority of the portfolio was rated AA or higher, and no securities within the portfolio were rated below investment grade as of September 30, 2022.
In addition to monitoring the credit ratings of these securities, management also evaluates the financial performance of the underlying issuers on an ongoing basis.
−Removed: Based upon management’s analysis and judgment, it was determined that none of the state and political subdivision securities had credit losses at June 30, 2022.
+Added: Based upon management’s analysis and judgment, it was determined that none of the state and political subdivision securities had credit losses at September 30, 2022.
Agency mortgage-backed securities
United’s agency mortgage-backed securities portfolio relates to securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae.
−Removed: The total amortized cost of available for sale agency mortgage-backed securities was $ 2,111,407 at June 30, 2022.
+Added: The total amortized cost of available for sale agency mortgage-backed securities was $ 2,071,977 at September 30, 2022.
Of the $ 2,071,977 amount, $ 656,637 was related to agency commercial mortgage-backed securities and $ 1,415,340 was related to agency residential mortgage-backed securities.
Each of the agency mortgage-backed securities provides a guarantee of full and timely payments of principal and interest by the issuing agency.
−Removed: Based upon management’s analysis and judgment, it was determined that none of the agency mortgage-backed securities had credit losses at June 30, 2022.
+Added: Based upon management’s analysis and judgment, it was determined that none of the agency mortgage-backed securities had credit losses at September 30, 2022.
residential mortgage-backed securities
2 unchanged sentences
The total amortized cost of available for sale non-agency
−Removed: residential mortgage-backed securities was $ 114,692 at June 30, 2022.
+Added: residential mortgage-backed securities was $ 122,069 at September 30, 2022.
Of the $ 122,069 , 100 % was rated AAA.
Based upon management’s analysis and judgment, it was determined that no ne of the non-agency
−Removed: residential mortgage-backed securities had credit losses at June 30, 2022.
+Added: residential mortgage-backed securities had credit losses at September 30, 2022.
Asset-backed securities
−Removed: As of June 30, 2022, United’s asset-backed securities portfolio had a total amortized cost balance of $ 953,347 .
−Removed: 100 % of the portfolio was investment grade rated as of June 30, 2022.
+Added: As of September 30, 2022, United’s asset-backed securities portfolio had a total amortized cost balance of $ 961,942 .
+Added: 100 % of the portfolio was investment grade rated as of September 30, 2022.
Approximately 28 % of the portfolio relates to securities that are backed by Federal Family Education Loan Program (“FFELP”) student loan collateral which includes a minimum of a 97 % government repayment guaranty, as well as additional credit support and subordination in excess of the government guaranteed portion.
Approximately 72 % of the portfolio relates to collateralized loan obligation securities that are all AAA rated.
−Removed: Upon reviewing this portfolio for the second quarter of 2022, it was determined that no ne of the asset-backed securities had credit losses.
+Added: Upon reviewing this portfolio for the third quarter of 2022, it was determined that no ne of the asset-backed securities had credit losses.
Single issue trust preferred securities
The majority of United’s single issue trust preferred portfolio consists of obligations from large cap banks (i.e.
−Removed: market capitalization in excess of $ 10 billion).
+Added: banks with market capitalization in excess of $ 10 billion).
All single issue trust preferred securities are currently receiving interest payments.
−Removed: The amortized cost of available for sale single issue trust preferred securities as of June 30, 2022 consisted of $ 8,461 in investment grade bonds, $ 3,078 in split rated bonds, and $ 5,777 in unrated bonds.
+Added: The amortized cost of available for sale single issue trust preferred securities as of September 30, 2022 consisted of $ 8,464 in investment grade bonds, $ 3,083 in split rated bonds, and $ 5,782 in unrated bonds.
Management reviews each issuer’s current and projected earnings trends, asset quality, capitalization levels, and other key factors.
−Removed: Upon completing the review for the second quarter of 2022, it was determined that none of the single issue trust preferred securities had credit losses.
+Added: Upon completing the review for the third quarter of 2022, it was determined that none of the single issue trust preferred securities had credit losses.
Other corporate securities
−Removed: As of June 30, 2022, United’s other corporate securities portfolio had a total amortized cost balance of $ 617,171 .
+Added: As of September 30, 2022, United’s other corporate securities portfolio had a total amortized cost balance of $ 592,127 .
The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions.
1 unchanged sentence
For corporate securities, management has evaluated the near-term prospects of the investment in relation to the severity of any unrealized loss.
−Removed: Based upon management’s analysis and judgment, it was determined that none of the corporate securities had credit losses at June 30, 2022.
−Removed: The amortized cost and estimated fair value of securities available for sale at June 30, 2022 and December 31, 2021 by contractual maturity are shown as follows.
+Added: Based upon management’s analysis and judgment, it was determined that none of the corporate securities had credit losses at September 30, 2022.
+Added: The amortized cost and estimated fair value of securities available for sale at September 30, 2022 and December 31, 2021 by contractual maturity are shown as follows.
Expected maturities may differ from contractual maturities because the issuers may have the right to call or prepay obligations without penalties.
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
4 unchanged sentences
Equity securities at fair value
−Removed: Equity securities consist mainly of equity securities of financial institutions and mutual funds within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries.
−Removed: The fair value of United’s equity securities was $ 13,513 at June 30, 2022 and $ 12,404 at December 31, 2021.
+Added: Equity securities consist primarily of mutual funds.
+Added: The fair value of United’s equity securities was $ 7,314 at September 30, 2022 and $ 12,404 at December 31, 2021.
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Net gains recognized during the period on equity securities sold
3 unchanged sentences
Other investment securities
−Removed: During the second quarter of 2022, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the second quarter of 2022 had a significant adverse effect on the fair value of any of its cost method securities.
−Removed: United determined that there was no individual security that experienced an adverse event during the second quarter.
−Removed: There were no other events or changes in circumstances during the second quarter which would have an adverse effect on the fair value of its cost method securities
−Removed: The carrying value of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes as required or permitted by law, approximated $ 1,636,234 and $ 1,871,328 at June 30, 2022 and December 31, 2021, respectively.
+Added: During the third quarter of 2022, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the third quarter of 2022 had a significant adverse effect on the fair value of any of its cost method securities.
+Added: United determined that there was no individual security that experienced an adverse event during the third quarter.
+Added: There were no other events or changes in circumstances during the third quarter which would have an adverse effect on the fair value of its cost method securities.
+Added: The carrying value of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes as required or permitted by law, approximated $ 1,722,762 and $ 1,871,328 at September 30, 2022 and December 31, 2021, respectively.
LOANS AND LEASES
Major classes of loans and leases are as follows:
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
8 unchanged sentences
Unearned income
−Removed: Total gross loans
−Removed: The table above does not include loans held for sale of $ 220,689 and $ 504,416 at June 30, 2022 and December 31, 2021, respectively.
+Added: Total loans and leases, net of unearned income
+Added: The table above does not include loans held for sale of $ 210,075 and $ 504,416 at September 30, 2022 and December 31, 2021, respectively.
Loans held for sale consist of single-family residential real estate loans originated for sale in the secondary market.
United’s subsidiary bank has made loans to the directors and officers of United and its subsidiaries, and to their affiliates.
−Removed: The aggregate dollar amount of these loans was $ 25,430 and $ 32,990 at June 30, 2022 and December 31, 2021, respectively.
+Added: The aggregate dollar amount of these loans was $ 25,386 and $ 32,990 at September 30, 2022 and December 31, 2021, respectively.
CREDIT QUALITY
7 unchanged sentences
When interest accruals are discontinued, unpaid interest recognized in income in the current year is reversed, and unpaid interest accrued in prior years is charged to the allowance for credit losses.
−Removed: United’s method of income recognition for loans and leases that are classified as nonaccrual is to recognize interest income on a cash basis or apply the cash receipt to principal when the ultimate collectibility of principal is in doubt.
+Added: United’s method of income recognition for loans and leases that are classified as nonaccrual is to recognize interest income on a cash
+Added: basis or apply the cash receipt to principal when the ultimate collectibility of principal is in doubt.
Nonaccrual loans and leases will not normally be returned to accrual status unless all past due principal and interest has been paid and the borrower has evidenced their ability to meet the contractual provisions of the note.
−Removed: Generally, a loan is categorized as a TDR if a concession is granted and there is deterioration in the financial condition of the borrower.
−Removed: The portfolio of TDR loans is monitored monthly.
A loan is categorized as a troubled debt restructuring (“TDR”) if a concession is granted and there is deterioration in the financial condition of the borrower.
4 unchanged sentences
TDRs can take the form of a reduction of the stated interest rate, splitting a loan into separate loans and leases with market terms on one loan and concessionary terms on the other loan, receipts of assets from a debtor in partial or full satisfaction of a loan, the extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk, the reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement, or the reduction of accrued interest or any other concessionary type of renegotiated debt.
−Removed: Under United’s current loan policy, a loan is not recognized as a TDR until it becomes probable that the loan will be a TDR.
+Added: Under United’s current loan policy, a loan is not recognized as a TDR until it becomes reasonably expected that the loan will be a TDR.
+Added: The portfolio of TDR loans is monitored monthly.
In response to the coronavirus (“COVID-19”)
3 unchanged sentences
As provided for under the CARES Act, these loan modifications are exempt by law from classification as a TDR as defined by GAAP.
−Removed: As of June 30, 2022, United has 40 eligible loan modifications in deferral under section 4013, “Temporary Relief from Troubled Debt Restructurings,” of the CARES Act on $ 2,031 of loans outstanding, compared to 188 eligible loan modifications in deferral on $ 18,039 of loans outstanding at December 31, 2021.
−Removed: As of June 30, 2022, United had TDRs of $ 25,504 as compared to $ 35,856 as of December 31, 2021.
−Removed: Of the $ 25,504 aggregate balance of TDRs at June 30, 2022, $ 11,298 was on nonaccrual, $ 3,162 was 90 days or more past due and $ 140 was 30 - 89
−Removed: days past due.
+Added: As of September 30, 2022, United no longer has any eligible loan modifications in deferral under section 4013, “Temporary Relief from Troubled Debt Restructurings,” of the CARES Act as compared to 188 eligible loan modifications in deferral on $ 18,039 of loans outstanding at December 31, 2021.
+Added: As of September 30, 2022, United had TDRs of $ 23,155 as compared to $ 35,856 as of December 31, 2021.
+Added: Of the $ 23,155 aggregate balance of TDRs at September 30, 2022, $ 10,336 was on nonaccrual and $ 2,941 was 90 days or more past due.
Of the $ 35,856 aggregate balance of TDRs at December 31, 2021, $ 22,421 was on nonaccrual and $ 102 was 90 days or more days past due.
All these amounts are included in the appropriate categories in the “Age Analysis of Past Due Loans” table on a subsequent page.
−Removed: As of June 30, 2022, there was a commitment to lend additional funds of $ 49 to a debtor owing a receivable whose terms have been modified in a TDR.
−Removed: During the first six months of 2022, advances of $ 65 were made to this debtor under a loan that had been previously modified.
−Removed: The following tables sets forth the balances of TDRs at June 30, 2022 and December 31, 2021 and the reasons for modification:
+Added: As of September 30, 2022, there was a commitment to lend additional funds of $ 60 to a debtor owing a receivable whose terms have been modified in a TDR.
+Added: During the first nine months of 2022, advances of $ 72 were made to this debtor under a loan that had been previously modified.
+Added: The following tables sets forth the balances of TDRs at September 30, 2022 and December 31, 2021 and the reasons for modification:
Reason for modification
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
5 unchanged sentences
Change in terms
−Removed: The following table sets forth United’s troubled debt restructurings that have been restructured during the three months ended June 30, 2022 and 2021, segregated by class of loans:
+Added: The following table sets forth United’s troubled debt restructurings that have been restructured during the three months ended September 30, 2022 and 2021, segregated by class of loans:
Troubled Debt Restructurings
For the Three Months Ended
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: September 30, 2022
+Added: September 30, 2021
Commercial real estate:
5 unchanged sentences
Other consumer
−Removed: The following table sets forth United’s troubled debt restructurings that have been restructured during the six months ended June 30, 2022 and 2021, segregated by class of loans:
+Added: The following table sets forth United’s troubled debt restructurings that have been restructured during the nine months ended September 30, 2022 and 2021, segregated by class of loans:
Troubled Debt Restructurings
−Removed: For the Six Months Ended
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: For the Nine Months Ended
+Added: September 30, 2022
+Added: September 30, 2021
Commercial real estate:
5 unchanged sentences
Other consumer
−Removed: The following table sets forth United’s troubled debt restructurings, based on their post-modification outstanding recorded balance, that have been restructured during the three and six months ended June 30, 2022 and 2021, segregated by the reason for modification:
+Added: The following table sets forth United’s troubled debt restructurings, based on their post-modification outstanding recorded balance, that have been restructured during the three and nine months ended September 30, 2022 and 2021, segregated by the reason for modification:
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Reason for modification
−Removed: Interest rate reduction
Interest rate reduction and change in terms
−Removed: Forgiveness of principal
−Removed: Concession of principal and termp
Transfer of asset
1 unchanged sentence
Change in terms
−Removed: The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended June 30, 2022 and had charge-offs during the six months ended June 30, 2022.
−Removed: No charge-offs were recorded during the three months ended June 30, 2022.
−Removed: The recorded investment amounts presented were as of the June 30, 2022 balance sheet date.
−Removed: Six Months Ended
−Removed: June 30, 2022
+Added: The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended September 30, 2022 and had charge-offs during the three and nine months ended September 30, 2022.
+Added: The recorded investment amounts presented were as of the September 30, 2022 balance sheet date.
+Added: Three Months Ended
+Added: September 30, 2022
+Added: Nine Months Ended
+Added: September 30, 2022
Troubled Debt Restructurings
6 unchanged sentences
Other consumer
−Removed: The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended June 30, 2021 and had charge-offs during the three and six months ended June 30, 2021.
−Removed: The recorded investment amounts presented were as of the June 30, 2021 balance sheet date.
−Removed: Three Months Ended
−Removed: June 30, 2021
−Removed: Six Months Ended
−Removed: June 30, 2021
+Added: The following table presents troubled debt restructurings, by class of loan, that were restructured during the twelve-month period ended September 30, 2021 and had charge-offs during the nine months ended September 30, 2021.
+Added: No charge-offs were recorded during the three months ended September 30, 2021.
+Added: The recorded investment amounts presented were as of the September 30, 2021 balance sheet date.
+Added: Nine Months Ended
+Added: September 30, 2021
Troubled Debt Restructurings
8 unchanged sentences
Age Analysis of Past Due Loans and Leases
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Commercial real estate:
15 unchanged sentences
The following table sets forth United’s nonaccrual loans and leases, segregated by class of loans:
−Removed: At June 30, 2022
+Added: At September 30, 2022
At December 31, 2021
4 unchanged sentences
Residential Real Estate
+Added: Construction & land
Other consumer
−Removed: Interest income recognized on nonaccrual loans was insignificant during the three and six months ended June 30, 2022 and 2021.
+Added: Interest income recognized on nonaccrual loans was insignificant during the three and nine months ended September 30, 2022 and 2021.
For the adoption of ASC Topic 326, United elected the practical expedient to measure expected credit losses on collateral dependent loans and leases based on the difference between the loan’s amortized cost and the collateral’s fair value, adjusted for selling costs.
−Removed: The following table presents the amortized cost basis of collateral-dependent loans and leases in which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty, by class of loans and leases as of June 30, 2022 and December 31, 2021:
+Added: The following table presents the amortized cost basis of collateral-dependent loans and leases in which repayment is expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty, by class of loans and leases as of September 30, 2022 and December 31, 2021:
Collateral Dependent Loans and Leases
−Removed: At June 30, 2022
+Added: At September 30, 2022
Commercial real estate:
3 unchanged sentences
Residential real estate
−Removed: Construction & land
+Added: Construction & land development
Other consumer
6 unchanged sentences
Residential real estate
−Removed: Construction & land
+Added: Construction & land development
Other consumer
32 unchanged sentences
Commercial Real Estate – Owner-occupied
−Removed: As of June 30, 2022
Origination Year
1 unchanged sentence
amortized cost
−Removed: Revolving loans
+Added: As of September 30, 2022
Internal Risk Grade:
17 unchanged sentences
amortized cost
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Internal Risk Grade:
14 unchanged sentences
Other commercial
+Added: loans and leases
Term Loans and leases
2 unchanged sentences
amortized cost
−Removed: loans and leases
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Internal Risk Grade:
4 unchanged sentences
Term Loans and leases
+Added: Origination Year
Revolving loans
1 unchanged sentence
loans and leases
−Removed: Origination Year
As of December 31, 2021
5 unchanged sentences
Residential Real Estate
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Internal Risk Grade:
3 unchanged sentences
Current-period net charge-offs
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
As of December 31, 2021
5 unchanged sentences
Construction and Land Development
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Internal Risk Grade:
3 unchanged sentences
Current-period net charge-offs
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
As of December 31, 2021
4 unchanged sentences
YTD net charge-offs
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Internal Risk Grade:
3 unchanged sentences
Current-period net charge-offs
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
As of December 31, 2021
5 unchanged sentences
Other Consumer
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
Internal Risk Grade:
3 unchanged sentences
Current-period net charge-offs
+Added: Origination Year
Revolving loans
amortized cost
−Removed: Origination Year
As of December 31, 2021
4 unchanged sentences
YTD net charge-offs
−Removed: At June 30, 2022 and December 31, 2021, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $ 13,847 and $ 14,823 , respectively.
+Added: At September 30, 2022 and December 31, 2021, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $ 10,779 and $ 14,823 , respectively.
OREO consists of real estate acquired in foreclosure or other settlement of loans.
2 unchanged sentences
Any subsequent valuation adjustments as well as any costs relating to operating, holding or disposing of the property are recorded in other expense in the period incurred.
−Removed: At June 30, 2022, there were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as compared to $ 13 at December 31, 2021.
+Added: Outstanding balances of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process are $ 1,200 at September 30, 2022 as compared to $ 13 at December 31, 2021.
ALLOWANCE FOR CREDIT LOSSES
−Removed: United adopted the CECL methodology for measuring credit losses as of January 1, 2020.
−Removed: All disclosures as of June 30, 2022 and December 31, 2021 and for the three and six months ended June 30, 2022 and 2021 are presented in accordance with ASC Topic 326.
The allowance for loan losses is an estimate of the expected credit losses on financial assets measured at amortized cost to present the net amount expected to be collected as of the balance sheet date.
6 unchanged sentences
United made a policy election to present the accrued interest receivable balance separately in its consolidated balance sheets from the amortized cost of a loan.
−Removed: Accrued interest receivable was $ 50,847 ( no allowance for credit losses) and $ 49,029 (net of an allowance for credit losses of $ 8
−Removed: ) at June 30, 2022 and December 31, 2021, respectively, related to loans and leases are included separately in “Accrued interest receivable” in the consolidated balance sheets.
+Added: Accrued interest receivable was $ 59,331 ( no allowance for credit losses) and $ 49,029 (net of an allowance for credit losses of $ 8 ) at September 30, 2022 and December 31, 2021, respectively, related to loans and leases are included separately in “Accrued interest receivable” in the consolidated balance sheets.
Due to loan interest payment deferrals granted by United under the CARES Act, United assessed the collectability of the accrued interest receivables on these deferring loans and leases.
−Removed: As a result of this assessment, United did not record an allowance for credit losses for accrued interest receivables not expected to be collected as of June 30, 2022 as compared to an allowance for credit losses of
−Removed: $ 8 as of December 31, 2021.
+Added: As a result of this assessment, United did not record an allowance for credit losses for accrued interest receivables not expected to be collected as of September 30, 2022 as compared to an allowance for credit losses of $ 8 as of December 31, 2021.
For all classes of loans and leases receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due, unless the loan is well secured and in the process of collection.
Interest received on nonaccrual loans and leases, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal.
−Removed: The following table represents the accrued interest receivable as of June 30, 2022 and December 31, 2021:
+Added: The following table represents the accrued interest receivable as of September 30, 2022 and December 31, 2021:
Accrued Interest Receivable
−Removed: At June 30, 2022
+Added: At September 30, 2022
At December 31, 2021
4 unchanged sentences
Residential Real Estate
+Added: Construction & land development
Other consumer
Allowance for credit losses
−Removed: The following table represents the accrued interest receivables written off by reversing interest income for the three months and six months ended June 30, 2022 and 2021:
+Added: The following table represents the accrued interest receivables written off by reversing interest income for the three months and nine months ended September 30, 2022 and 2021:
Accrued Interest Receivables Written Off by Reversing Interest Income
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Commercial real estate:
37 unchanged sentences
United maintains an allowance for loan losses and a reserve for lending-related commitments such as unfunded loan commitments and letters of credit.
−Removed: The reserve for lending-related commitments of $ 42,579 and $ 31,442 at June 30, 2022 and December 31, 2021, respectively, is separately classified on the balance sheet and is included in other liabilities.
+Added: The reserve for lending-related commitments of $ 39,698 and $ 31,442 at September 30, 2022 and December 31, 2021, respectively, is separately classified on the balance sheet and is included in other liabilities.
The combined allowance for loan losses and reserve for lending-related commitments is considered the allowance for credit losses.
3 unchanged sentences
If current conditions underlying any qualitative adjustment factor were deemed to be materially different than historical conditions, then an adjustment was made for that factor.
−Removed: The second quarter of 2022 qualitative adjustments include analyses of the following:
+Added: The third quarter of 2022 qualitative adjustments include analyses of the following:
– This includes portfolio trends related to economic and business conditions;
2 unchanged sentences
Current conditions
−Removed: – United considered the impact of inflation, supply chain disruptions, rising interest rates, increased oil and gas prices and the conflict in eastern Europe when making determinations related to factor adjustments, such as changes in economic and business conditions, collateral values and external factors.
+Added: – United considered the impact of inflation, supply chain disruptions, rising interest rates, increased oil and gas prices and the potential impact of the geopolitical situation when making determinations related to factor adjustments, such as changes in economic and business conditions, collateral values and external factors.
Reasonable and supportable forecasts
−Removed: – The forecast is
−Removed: determined on a
−Removed: portfolio-by-portfolio
+Added: – The forecast is determined on a portfolio-by-portfolio
basis by relating the correlation of real GDP and the unemployment rate to loss rates to forecasts of those variables.
1 unchanged sentence
Assumptions for the economic variables were the following:
−Removed: The forecast for real GDP shifted downward in the second quarter, from a projection of 2.80 % for 2022 as of mid-March
−Removed: 2022 to 1.70 % for 2022 as of mid-June
−Removed: with a level future trendline as compared to the first quarter of 2022.
−Removed: The unemployment rate forecast shifted upward compared to the first quarter of 2022 with an increasing trend expected throughout 2024.
+Added: The forecast for real GDP shifted downward in the third quarter, from a projection of 1.70 % for 2022 as of mid-June
+Added: 2022 to 0.20 % for 2022 as of mid-September
+Added: with a steeper increasing future trendline as compared to the second quarter of 2022.
+Added: The unemployment rate forecast shifted slightly upward compared to the second quarter of 2022 with an increasing trend expected throughout 2023 and 2024.
Reversion to historical loss data occurs via a straight-line method during the year following the one-year
2 unchanged sentences
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases
−Removed: For the Three Months Ended June 30, 2022
+Added: For the Three Months Ended September 30, 2022
Commercial Real Estate
−Removed: Construction &
Allowance for Loan and Lease Losses:
2 unchanged sentences
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases
−Removed: For the Six Months Ended June 30, 2022
+Added: For the Nine Months Ended September 30, 2022
Commercial Real Estate
−Removed: Construction &
Allowance for Loan and Lease Losses:
4 unchanged sentences
Commercial Real Estate
−Removed: Construction &
Allowance for Loan and Lease Losses:
4 unchanged sentences
The following is a summary of intangible assets subject to amortization and those not subject to amortization:
−Removed: June 30, 2022
+Added: September 30, 2022
Community Banking
12 unchanged sentences
Core deposit intangible assets
+Added: December 31, 2021
+Added: Community Banking
+Added: Mortgage Banking
Non-amortized
3 unchanged sentences
Goodwill not subject to amortization
−Removed: United incurred amortization expense of $ 1,379 and $ 2,758 for the three and six months ended June 30, 2022 as compared to $ 1,467 and $ 2,933 for the three and six months ended June 30, 2021, respectively.
+Added: United incurred amortization expense of $ 1,379 and $ 4,137 for the three and nine months ended September 30, 2022 as compared to $ 1,466 and $ 4,399 for the three and nine months ended September 30, 2021, respectively.
The following table provides a reconciliation of goodwill:
1 unchanged sentence
Addition to goodwill from Community Bankers Trust acquisition
−Removed: Goodwill at June 30, 2022
−Removed: The addition during the first six months of 2022 to goodwill from the Community Bankers Trust acquisition was due mainly to a measurement period adjustment to establish a reserve for income tax contingencies that existed at the time of the acquisition.
+Added: Goodwill at September 30, 2022
+Added: The addition during the first nine months of 2022 to goodwill from the Community Bankers Trust acquisition was due mainly to a measurement period adjustment to establish a reserve for income tax contingencies that existed at the time of the acquisition.
The following table sets forth the anticipated amortization expense for intangible assets for the years subsequent to 2021:
6 unchanged sentences
MSRs are amortized in proportion to, and over the period of, estimated net servicing income.
−Removed: The amortization of the MSRs is analyzed periodically and is adjusted to reflect changes in prepayment rates and other estimates.
+Added: The amortization of the MSRs is analyzed periodically and is adjusted to reflect changes in prepayment rates, economic factors and other assumptions.
The Company evaluates potential impairment of MSRs based on the difference between the carrying amount and current estimated fair value of the servicing rights.
In determining impairment, the Company aggregates all servicing rights and stratifies them into tranches based on predominant risk characteristics.
−Removed: If impairment exists, a valuation allowance is established for any excess of amortized cost over the current estimated fair value by a charge to income.
+Added: If impairment exists, a valuation allowance is
+Added: established for any excess of amortized cost over the current estimated fair value by a charge to income.
If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income.
2 unchanged sentences
Amortization of MSRs and mortgage servicing costs are charged to expense when incurred.
−Removed: The unpaid principal balances of loans serviced for others were approximately $ 3,534,607 at June 30, 2022 and $ 3,698,998 at December 31, 2021.
−Removed: The estimated fair value of the mortgage servicing rights was $ 41,748 and $ 27,355 at June 30, 2022 and December 31, 2021, respectively.
−Removed: The estimated fair value of servicing rights at June 30, 2022 was determined using a net servicing fee of 0.26 %, average discount rates ranging from 10.50 % to 11.00 % with a weighted average discount rate of 10.61 %, average constant prepayment rates (“CPR”) ranging from 6.66 % to 10.99 % with a weighted average prepayment rate of 7.54 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 2.90 %.
−Removed: The estimated fair value of servicing rights at December 31, 2021 was determined using a net servicing fee of 0.26 %, average discount rates ranging from 10.50 % to 11.71 % with a weighted average discount rate of 10.60 %, average constant prepayment rates (“CPR”) ranging from 12.59 % to 21.20
−Removed: % with a weighted average prepayment rate of 16.56 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 2.09 %.
+Added: The unpaid principal balances of loans serviced for others were approximately $ 3,459,781 at September 30, 2022 and $ 3,698,998 at December 31, 2021.
+Added: The estimated fair value of the mortgage servicing rights was $ 44,305 and $ 27,355 at September 30, 2022 and December 31, 2021, respectively.
+Added: The estimated fair value of servicing rights at September 30, 2022 was determined using a net servicing fee of 0.26 %, average discount rates ranging from 10.50 % to 11.02 % with a weighted average discount rate of 10.62 %, average constant prepayment rates (“CPR”) ranging from 5.92 % to 10.06 % with a weighted average prepayment rate of 6.48 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 1.97 %.
+Added: The estimated fair value of servicing rights at December 31, 2021 was determined using a net servicing fee of 0.26 %, average discount rates ranging from 10.50 % to 11.71 % with a weighted average discount rate of 10.60 %, CPR ranging from 12.59 % to 21.20% with a weighted average prepayment rate of 16.56 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 2.09 %.
Please refer to Note 15 in these Notes to Consolidated Financial Statements for additional information concerning the fair value of MSRs.
−Removed: The following presents the activity in mortgage servicing rights, including their valuation allowance for the three and six months ended June 30, 2022 and 2021:
+Added: The following presents the activity in mortgage servicing rights, including their valuation allowance for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
MSRs beginning balance
8 unchanged sentences
MSRs, net of valuation allowance
−Removed: In determining impairment, the Company aggregates all servicing rights and stratifies them into tranches based on predominant risk characteristics.
−Removed: The Company did not record any temporary impairments on mortgage servicing rights for the three and six months ended June 30, 2022.
−Removed: The Company recorded a $ 250 temporary impairment, net of recoveries on mortgage servicing rights for the three and six months ended June 30, 2021.
−Removed: The estimated amortization expense is based on current information regarding future loan payments and prepayments.
−Removed: Amortization expense could change in future periods based on changes in the volume of prepayments and economic factors.
United determines if an arrangement is a lease at inception.
16 unchanged sentences
Classification
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: Three Months Ended
+Added: September 30, 2022
+Added: Three Months Ended
+Added: September 30, 2021
Operating lease cost
4 unchanged sentences
Classification
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2022
+Added: Nine Months Ended
+Added: September 30, 2021
Operating lease cost
5 unchanged sentences
Classification
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
Operating lease right-of-use
−Removed: Operating lease right-of-use
+Added: Operating lease right-of-use assets
Operating lease liabilities
1 unchanged sentence
Other information related to leases was as follows:
−Removed: June 30, 2022
+Added: September 30, 2022
Weighted-average remaining lease term:
4 unchanged sentences
Three Months Ended
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: September 30, 2022
+Added: September 30, 2021
Cash paid for amounts in the measurement of lease liabilities:
1 unchanged sentence
ROU assets obtained in the exchange for lease liabilities
−Removed: Six Months Ended
−Removed: June 30, 2022
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2022
+Added: September 30, 2021
Cash paid for amounts in the measurement of lease liabilities:
1 unchanged sentence
ROU assets obtained in the exchange for lease liabilities
−Removed: Maturities of lease liabilities by year and in the aggregate, under operating leases with initial or remaining terms of one year or more, for years subsequent to December 31, 2021, consists of the following as of June 30, 2022:
+Added: Maturities of lease liabilities by year and in the aggregate, under operating leases with initial or remaining terms of one year or more, for years subsequent to December 31, 2021, consists of the following as of September 30, 2022:
Total lease payments
1 unchanged sentence
SHORT-TERM BORROWINGS
−Removed: At June 30, 2022 and December 31, 2021, short-term borrowings were as follows:
−Removed: June 30, 2022
+Added: At September 30, 2022 and December 31, 2021, short-term borrowings were as follows:
+Added: September 30, 2022
December 31, 2021
−Removed: Federal funds purchased
Securities sold under agreements to repurchase
−Removed: Total short-term borrowings
Securities sold under agreements to repurchase have been a significant source of funds for the company.
3 unchanged sentences
These lines of credit, which bear interest at prevailing market rates, permit United to borrow funds in the overnight market, and are renewable annually subject to certain conditions.
−Removed: The securities sold under agreements to repurchase were accounted for as collateralized financial transactions.
−Removed: They were recorded at the amounts at which the securities were acquired or sold plus accrued interest.
United has a $ 20,000 line of credit with an unrelated financial institution to provide for general liquidity needs.
2 unchanged sentences
The line requires compliance with various financial and nonfinancial covenants.
−Removed: At June 30, 2022, United had no outstanding balance under this credit.
+Added: At September 30, 2022, United had no outstanding balance under this credit.
LONG-TERM BORROWINGS
2 unchanged sentences
All FHLB borrowings are collateralized by a mix of single-family residential mortgage loans, commercial loans and investment securities.
−Removed: At June 30, 2022, United had an unused borrowing amount of approximately $ 7,679,664 available subject to delivery of collateral after certain trigger points.
+Added: At September 30, 2022, United had an unused borrowing amount of approximately $ 7,065,152 available subject to delivery of collateral after certain trigger points.
Advances may be called by the FHLB or redeemed by United based on predefined factors and penalties.
−Removed: At June 30, 2022, $ 510,918 of FHLB advances with a weighted-average contractual interest rate of 1.29 % and a weighted-average effective interest rate of 0.42 % are scheduled to mature within the next three
−Removed: The weighted-average effective rate considers the effect of any interest rate swaps designated as cash flow hedges outstanding at June 30, 2022 to manage interest rate risk on its long-term debt.
+Added: At September 30, 2022, $ 1,010,846 of FHLB advances with a weighted-average contractual interest rate of 2.84 % and a weighted-average effective interest rate of 1.61 % are scheduled to mature within the next three years.
+Added: The weighted-average effective rate considers the effect of any interest rate swaps designated as cash flow hedges outstanding at September 30, 2022 to manage interest rate risk on its long-term debt.
The scheduled maturities of these FHLB borrowings are as follows:
2026 and thereafter
−Removed: At June 30, 2022, United had a total of twenty statutory business trusts that were formed for the purpose of issuing or participating in pools of trust preferred capital securities (“Capital Securities”) with the proceeds invested in junior subordinated debt securities (“Debentures”) of United.
+Added: At September 30, 2022, United had a total of twenty statutory business trusts that were formed for the purpose of issuing or participating in pools of trust preferred capital securities (“Capital Securities”) with the proceeds invested in junior subordinated debt securities (“Debentures”) of United.
The Debentures, which are subordinate and junior in right of payment to all present and future senior indebtedness and certain other financial obligations of United, are the sole assets of the trusts and United’s payment under the Debentures is the sole source of revenue for the trusts.
2 unchanged sentences
rate subordinated notes in the Carolina Financial Corporation acquisition.
−Removed: At June 30, 2022 and December 31, 2021, the outstanding balance of the subordinated notes was $ 9,882 and $ 9,872 , respectively.
−Removed: At June 30, 2022 and December 31, 2021, the outstanding balance of the Debentures was $ 276,161 and $ 275,323 , respectively, and was included in the category of long-term debt on the Consolidated Balance Sheets entitled “Other long-term borrowings.” The Capital Securities are not included as a component of shareholders’ equity in the Consolidated Balance Sheets.
+Added: At September 30, 2022 and December 31, 2021, the outstanding balance of the subordinated notes was $ 9,887 and $ 9,872 , respectively.
+Added: At September 30, 2022 and December 31, 2021, the outstanding balance of the Debentures was $ 276,575 and $ 275,323 , respectively, and was included in the category of long-term debt on the Consolidated Balance Sheets entitled “Other long-term borrowings.” The Capital Securities are not included as a component of shareholders’ equity in the Consolidated Balance Sheets.
United fully and unconditionally guarantees each individual trust’s obligations under the Capital Securities.
17 unchanged sentences
Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily, and historically do not, represent future cash requirements.
−Removed: The amount of collateral obtained, if deemed necessary upon the extension of credit, is based on management’s credit evaluation of the counterparty.
−Removed: United had approximately $ 7,397,308 and $ 6,847,550 of loan commitments outstanding as of June 30, 2022 and December 31, 2021, respectively, approximately 35% of which contractually expire within one year .
−Removed: Excluded in the June 30, 2022 and December 31, 2021 amounts above are commitments to extend credit of $ 714,635 and $ 571,792 , respectively, related to mortgage loan funding commitments of United’s mortgage banking segment which are of a short-term nature.
+Added: The amount of collateral obtained, if deemed necessary upon the extension of credit, is based on management’s credit evaluation of the
+Added: counterparty.
+Added: United had approximately $ 7,274,694 and $ 6,847,550 of loan commitments outstanding as of September 30, 2022 and December 31, 2021, respectively, approximately 35% of which contractually expire within one year .
+Added: Excluded in the September 30, 2022 and December 31, 2021 amounts above are commitments to extend credit of $ 739,809 and $ 571,792 , respectively, related to mortgage loan funding commitments of United’s mortgage banking segment which are of a short-term nature.
Commercial and standby letters of credit are agreements used by United’s customers as a means of improving their credit standing in their dealings with others.
2 unchanged sentences
Typically, under the terms of a commercial letter of credit, a commitment is drawn upon when the underlying transaction is consummated as intended between the customer and a third party.
−Removed: As of June 30, 2022 and December 31, 2021, United had $ 17,408 and $ 14,774 of commercial letters of credit outstanding, respectively.
+Added: As of September 30, 2022 and December 31, 2021, United had $ 17,408 and $ 14,774 of commercial letters of credit outstanding, respectively.
A standby letter of credit is generally contingent upon the failure of a customer to perform according to the terms of an underlying contract with a third party.
−Removed: United has issued standby letters of credit of $ 156,599 and $ 164,743 as of June 30, 2022 and December 31, 2021, respectively.
+Added: United has issued standby letters of credit of $ 151,662 and $ 164,743 as of September 30, 2022 and December 31, 2021, respectively.
In accordance with the Contingencies Topic of the FASB Accounting Standards Codification, United has determined that substantially all of its letters of credit are renewed on an annual basis and the fees associated with these letters of credit are immaterial.
−Removed: Mortgage Repurchase Reserve
+Added: Mortgage Banking Activities
United’s mortgage banking segment provides for its estimated exposure to repurchase loans previously sold to investors for which borrowers failed to provide full and accurate information on their loan application or for which appraisals have not been acceptable or where the loan was not underwritten in accordance with the loan program specified by the loan investor, and for other exposure to its investors related to loan sales activities.
United evaluates the merits of each claim and estimates its reserve based on actual and expected claims received and considers the historical amounts paid to settle such claims.
−Removed: United’s mortgage banking segment had a reserve of $ 1,081 and $ 1,150 as of June 30, 2022 and December 31, 2021.
+Added: United’s mortgage banking segment had a reserve of $ 1,081 and $ 1,150 as of September 30, 2022 and December 31, 2021.
United has derivative counter-party risk that may arise from the possible inability of United’s mortgage banking segment’s third party investors to meet the terms of their forward sales contracts.
4 unchanged sentences
On at least a quarterly basis, United assesses its liabilities and contingencies in connection with all pending or threatened claims and litigation, utilizing the most recent information available.
−Removed: On a matter-by-matter basis, an accrual for loss is established for those matters which United believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated.
+Added: On a matter-by-matter
+Added: basis, an accrual for loss is established for those matters which United believes it is probable that a loss may be incurred and that the amount of such loss can be reasonably estimated.
Once established, each accrual is adjusted as appropriate to reflect any subsequent developments.
1 unchanged sentence
For matters where a loss is not probable, or the amount of the loss cannot be estimated, no accrual is established.
−Removed: Management is vigorously pursuing all its legal and factual defenses and, after consultation with legal counsel, believes that all such litigation will be resolved with no material effect on United’s financial position.
+Added: As of September 30, 2022, United accrued a $ 5,000 estimated liability related to a litigation matter with a former commercial customer.
+Added: This accrual was based upon currently available information and is subject to adjustment to reflect any subsequent developments.
+Added: Management is vigorously pursuing all its legal and factual defenses and, after consultation with legal counsel, believes that all such litigation will be resolved with no material effect on United’s financial statements.
Regulatory Matters
A variety of consumer products, including mortgage and deposit products, and certain fees and charges related to such products, have come under increased regulatory scrutiny.
−Removed: It is possible that regulatory authorities could bring enforcement actions, including civil money penalties, or take other actions against United in regard to these consumer products.
+Added: It is possible that regulatory authorities could bring enforcement
+Added: actions, including civil money penalties, or take other actions against United in regard to these consumer products.
United could also determine of its own accord, or be required by regulators, to refund or otherwise make remediation payments to customers in connection with these products.
3 unchanged sentences
These derivatives may consist of interest rate swaps, caps, floors, collars, futures, forward contracts, written and purchased options.
−Removed: United also executes derivative instruments with its commercial banking customers to facilitate its risk management strategies.
+Added: United may execute derivative instruments with its commercial banking customers to facilitate its risk management strategies.
Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges.
Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.
−Removed: United uses derivative instruments to help aid against adverse price changes or interest rate movements on the value of certain assets or liabilities and on future cash flows.
−Removed: These derivatives may consist of interest rate swaps, caps, floors, collars, futures, forward contracts, written and purchased options.
−Removed: United also executes derivative instruments with its commercial banking customers to facilitate its risk management strategies.
+Added: The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and accrued interest payable and other liabilities in United’s Consolidated Balance Sheets and in the net change in these financial statement line items in net cash provided by operating activities in United’s Condensed Consolidated Statements of Cash Flows.
During the second quarter of 2020, United entered into a new interest rate swap derivative designated as a cash flow hedge.
12 unchanged sentences
The tenor of the interest rate swap derivative is 4 years with an expiration date in August 2024.
−Removed: As of June 30, 2022, United has determined that no forecasted transactions related to its cash flow hedges resulted in gains or losses pertaining to cash flow hedge reclassification from AOCI to income because the forecasted transactions became probable of not occurring.
+Added: As of September 30, 2022, United has determined that no forecasted transactions related to its cash flow hedges resulted in gains or losses pertaining to cash flow hedge reclassification from AOCI to income because the forecasted transactions became probable of not occurring.
United estimates that $ 19,181 will be reclassified from AOCI as a decrease to interest expense over the next 12-months
−Removed: following June 30, 2022 related to the cash flow hedges.
−Removed: As of June 30, 2022, the maximum length of time over which forecasted transactions are hedged is eight years.
+Added: following September 30, 2022 related to the cash flow hedges.
+Added: As of September 30, 2022, the maximum length of time over which forecasted transactions are hedged is eight years.
At inception of a hedge relationship, United formally documents the hedged item, the particular risk management objective, the nature of the risk being hedged, the derivative being used, how effectiveness of the hedge will be assessed and how the ineffectiveness of the hedge will be measured.
4 unchanged sentences
These commitments, which contain fixed expiration dates, offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and closes within the timeframe established by United.
−Removed: rate risk arises on these commitments and subsequently closed loans if interest rates change between the time of the interest rate lock and the delivery of the loan to the investor.
+Added: Interest rate risk arises on these commitments and subsequently closed loans if interest rates change between the time of the interest rate lock and the delivery of the loan to the investor.
Market risk on interest rate lock commitments and mortgage loans held for sale is managed using corresponding forward mortgage loan sales contracts.
−Removed: United is a party to these forward mortgage loan sales contracts to sell loans servicing released and short sales of mortgage-backed securities.
−Removed: When the interest rate is locked with the borrower, the rate lock commitment, forward sale agreement, and mortgage-backed security position are undesignated derivatives and marked to fair value through earnings.
−Removed: The fair value of the rate lock derivative includes the servicing premium and the interest spread for the difference between retail and wholesale mortgage rates.
+Added: United is a party to these forward mortgage loan sales contracts to sell loans with servicing either released or retained and short sales of mortgage-backed securities.
+Added: When the interest rate is locked with the borrower, the rate lock commitment, forward sale agreement, and mortgage-backed
+Added: security position are undesignated derivatives and marked to fair value through earnings.
+Added: The fair value of the rate lock derivative is measured using valuations from investors for loans with similar characteristics as well as considering the probability of the loan closing (i.e.
+Added: the “pull-through” rate) with some adjusted for the Company’s actual sales experience versus the investor’s indicated pricing.
+Added: Fair values of TBA mortgage-backed securities are measured using valuations from investors for mortgage-backed securities with similar characteristics.
Income from mortgage banking activities includes the gain recognized for the period presented and associated elements of fair value.
3 unchanged sentences
and settled daily based on the prior day value, rather than collateralized-to-market.
−Removed: The total notional amount of interest rate swap derivatives cleared through the LCH include $ 500,000 for asset derivatives as of June 30, 2022.
−Removed: The related fair value on a net basis approximate zero .
−Removed: The following tables disclose the derivative instruments’ location on the Company’s Consolidated Balance Sheets and the notional amount and fair value of those instruments at June 30, 2022 and December 31, 2021.
+Added: The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument.
+Added: The total notional amount of interest rate swap derivatives designated as cash flow hedges cleared through the LCH include $ 500,000 for asset derivatives as of September 30, 2022.
+Added: Balances related to LCH are presented as a single unit of account with the fair value of the designated cash flow interest rate swap asset being reduced by variation margin posted by (with) the applicable counterparty and reported in the following table on a net basis.
+Added: The related fair value on a net basis approximates zero .
+Added: The following tables disclose the derivative instruments’ location on the Company’s Consolidated Balance Sheets and the notional amount and fair value of those instruments at September 30, 2022 and December 31, 2021.
Asset Derivatives
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
1 unchanged sentence
Fair Value Hedges:
−Removed: Interest rate swap contracts
−Removed: (hedging commercial loans)
+Added: Interest rate swap contracts (hedging commercial loans)
Total Fair Value Hedges
Cash Flow Hedges:
−Removed: Interest rate swap contracts
−Removed: (hedging FHLB borrowings)
+Added: Interest rate swap contracts (hedging FHLB borrowings)
Total Cash Flow Hedges
7 unchanged sentences
Liability Derivatives
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
5 unchanged sentences
Total Fair Value Hedges
+Added: Liability Derivatives
+Added: September 30, 2022
+Added: December 31, 2021
Total derivatives designated as hedging instruments
11 unchanged sentences
Total liability derivatives
−Removed: The following table represents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value accounting relationship as of June 30, 2022 and December 31, 2021.
+Added: The following table represents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value accounting relationship as of September 30, 2022 and December 31, 2021.
Derivatives in Fair Value
Hedging Relationships
−Removed: Location in the Statement of
−Removed: June 30, 2022
+Added: Location in the Statement
+Added: September 30, 2022
Carrying Amount of
17 unchanged sentences
Hedging Relationships
−Removed: Location in the Statement of
+Added: Location in the Statement
December 31, 2021
Carrying Amount of
−Removed: the Hedged Assets/
−Removed: (Liabilities)
+Added: Assets/(Liabilities)
Cumulative Amount
18 unchanged sentences
Additionally, the Company attempts to minimize credit risk through certain approval processes established by management.
−Removed: The effect of United’s derivative financial instruments on its unaudited Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 are presented as
+Added: The effect of United’s derivative financial instruments on its unaudited Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021 are presented as follows:
Three Months Ended
−Removed: Income Statement
+Added: Location of Gain (Loss) Recognized in
+Added: the Consolidated Statements of Income
+Added: September 30,
+Added: September 30,
Derivatives in hedging relationships
−Removed: Cash flow Hedges:
−Removed: Interest rate swap contracts
−Removed: Interest on long-term borrowings
Fair Value Hedges:
1 unchanged sentence
Interest and fees on loans
+Added: Three Months Ended
+Added: Location of Gain (Loss) Recognized in
+Added: the Consolidated Statements of Income
+Added: September 30,
+Added: September 30,
+Added: Cash flow Hedges:
+Added: Interest rate swap contracts
+Added: Interest on long-term borrowings
Total derivatives in hedging relationships
8 unchanged sentences
Total derivatives
−Removed: Six Months Ended
−Removed: Income Statement
+Added: Nine Months Ended
+Added: Location of Gain (Loss) Recognized in
+Added: the Consolidated Statements of Income
+Added: September 30,
+Added: September 30,
Derivatives in hedging relationships
−Removed: Cash flow Hedges:
−Removed: Interest rate swap contracts
−Removed: Interest on long-term borrowings
Fair Value Hedges:
1 unchanged sentence
Interest and fees on loans
+Added: Cash flow Hedges:
+Added: Interest rate swap contracts
+Added: Interest on long-term borrowings
Total derivatives in hedging relationships
8 unchanged sentences
Total derivatives
+Added: Gains/losses on United’s interest rate swap contracts used in cash flow hedge accounting relationships for the three and nine months ended September 30, 2022 and 2021 are presented in Note 18 to these unaudited Notes to Consolidated Financial Statements.
+Added: United includes the gains/losses on the hedging derivative in the same line item in United’s Consolidated Statements of Income as the change in cash flows on the related hedge item.
FAIR VALUE MEASUREMENTS
6 unchanged sentences
Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market.
−Removed: determining the fair value measurements for assets and liabilities, United looks to active and observable markets to price identical assets or liabilities whenever possible and classifies such items in Level 1.
+Added: When determining the fair value measurements for assets and liabilities, United looks to active and observable markets to price identical assets or liabilities whenever possible and classifies such items in Level 1.
When identical assets and liabilities are no t traded in active markets, United looks to market observable data for similar assets and liabilities and classifies such items as Level 2.
16 unchanged sentences
Management also obtains an independent service auditor’s report from third party vendors to provide reasonable assurance that appropriate controls are in place over the valuation process.
−Removed: Upon completing its review of the pricing from third party vendors at June 30, 2022, management determined that the prices provided by its third party pricing sources were reasonable and in line with management’s expectations for the market values of these securities.
−Removed: Therefore, prices obtained from third party vendors that did not reflect forced liquidation or distressed sales were not adjusted materially by management at June 30, 2022.
+Added: Upon completing its review of the pricing from third party vendors at September 30, 2022, management determined that the prices provided by its third party pricing sources were reasonable and in line with management’s expectations for the market values of these securities.
+Added: Therefore, prices obtained from third party vendors that did not reflect forced liquidation or distressed sales were not adjusted materially by management at September 30, 2022.
Management utilizes a number of factors to determine if a market is inactive, all of which may require a significant level of judgment.
6 unchanged sentences
Loans held for sale
−Removed: For residential mortgage loans sold in the mortgage banking segment, the loans closed are recorded at fair value using the fair value option which is measured using valuations from investors for loans with similar characteristics (“Level 2”) with some adjusted
−Removed: for the Company’s actual sales experience versus the investor’s indicated pricing (“Level 3”).
+Added: For residential mortgage loans sold in the mortgage banking segment, the loans closed are recorded at fair value using the fair value option which is measured using valuations from investors for loans with similar characteristics (“Level 2”) with some adjusted for the Company’s actual sales experience versus the investor’s indicated
+Added: pricing (“Level 3”).
The unobservable input for Level 3 valuations is the Company’s historical sales prices.
−Removed: For June 30, 2022, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.07 % to 0.65 % with a weighted average increase of 0.13 %.
+Added: For September 30, 2022, the range of historical sales prices (decreased)/increased the investor’s indicated pricing by a range of ( 0.22 %) to 0.73 % with a weighted average increase of 0.31 %.
United utilizes interest rate swaps to hedge exposure to interest rate risk and variability of cash flows associated to changes in the underlying interest rate of the hedged item.
16 unchanged sentences
Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to the investor.
−Removed: To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, United’s mortgage banking subsidiaries enter into either a forward sales contract to sell loans to investors when using best efforts or a TBA mortgage-backed security under mandatory delivery.
+Added: To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, United’s mortgage banking subsidiaries may enter into either a forward sales contract to sell loans to investors or a TBA mortgage-backed security.
Fair values of TBA mortgage-backed securities are measured using valuations from investors for mortgage-backed securities with similar characteristics (“Level 2”).
The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.
−Removed: Under the Company’s best efforts model, the rate lock commitments to borrowers and the forward sales contracts to investors through to the date the loan closes are undesignated derivatives and accordingly, are marked to fair value through earnings.
−Removed: These valuations fall into a Level 2 category.
−Removed: For residential mortgage loans sold in the mortgage banking segment, the interest rate lock commitments are recorded at fair value which is measured using valuations from investors for loans with similar characteristics as well as considering the probability of the loan closing (i.e.
+Added: The rate lock commitments to borrowers and the forward sales contracts to investors are undesignated derivatives and accordingly, are marked to fair value through earnings.
+Added: The interest rate lock commitments are recorded at fair value which is measured using valuations from investors for loans with similar characteristics as well as considering the probability of the loan closing (i.e.
the “pull-through” rate) (“Level 2”) with some adjusted for the Company’s actual sales experience versus the investor’s indicated pricing (“Level 3”).
The unobservable input for Level 3 valuations is the Company’s historical sales prices.
−Removed: For June 30, 2022, the range of historical sales prices increased the investor’s indicated pricing by a range
−Removed: of 0.07 % to 0.65 % with a weighted average increase of 0.13 %.
−Removed: For interest rate swap derivatives that are not designated in a hedge relationship, changes in the fair value of the derivatives are recognized in earnings in the same period as the change in the fair value.
−Removed: Unrealized gains and losses due to changes in the fair value of other derivative financial instruments not in hedge relationship are included in noninterest income and noninterest expense, respectively.
−Removed: The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy.
−Removed: Fair Value at June 30, 2022 Using
+Added: For September 30, 2022, the range of historical sales prices (decreased)/increased the investor’s indicated pricing by a range of ( 0.22 %) to 0.73 % with a weighted average increase of 0.31 %.
+Added: For derivatives that are not designated in a hedge relationship within the mortgage banking segment, changes in the fair value of these derivatives are recognized in income from mortgage banking activities in the same period as the change in the fair value.
+Added: Unrealized gains and losses due to changes in the fair value of other derivative financial instruments not in hedge relationship, if any, are included in noninterest income and noninterest expense, respectively.
+Added: The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy.
+Added: Fair Value at September 30, 2022 Using
Balance as of
+Added: September 30,
Quoted Prices
3 unchanged sentences
State and political subdivisions
−Removed: Residential mortgage-backed securities
−Removed: Commercial mortgage-backed securities
+Added: Residential mortgage-backed securities Agency
+Added: Commercial mortgage-backed securities Agency
Asset-backed securities
25 unchanged sentences
State and political subdivisions
−Removed: Residential mortgage-backed securities
−Removed: Commercial mortgage-backed securities
+Added: Residential mortgage-backed securities Agency
+Added: Fair Value at December 31, 2021 Using
+Added: Balance as of
+Added: Quoted Prices
+Added: Commercial mortgage-backed securities Agency
Asset-backed securities
9 unchanged sentences
Derivative financial assets:
−Removed: Interest rate swap contracts
Forward sales commitments
8 unchanged sentences
Total derivative financial liabilities
−Removed: There were no transfers between Level 1 and Level 2 for financial assets and liabilities measured at fair value on a recurring basis during the six months ended June 30, 2022 and the year ended December 31, 2021.
−Removed: The following tables present additional information about financial assets and liabilities measured at fair value at June 30, 2022 and December 31, 2021 on a recurring basis and for which United has utilized Level 3 inputs to determine fair value.
−Removed: The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses related to assets still held at the reporting date are recorded in Income from mortgage banking activities in the Consolidated Statements of
+Added: The equity mutual funds are within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries.
+Added: There were no transfers between Level 1 and Level 2 for financial assets and liabilities measured at fair value on a recurring basis during the nine months ended September 30, 2022 and the year ended December 31, 2021.
+Added: The following tables present additional information about financial assets and liabilities measured at fair value at September 30, 2022 and December 31, 2021 on a recurring basis and for which United has utilized Level 3 inputs to determine fair value.
+Added: The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses related to assets still held at the reporting date are recorded in Income from mortgage banking activities in the Consolidated Statements of Income.
Loans held for sale
+Added: September 30,
Balance, beginning of period
Total gains or losses during the period recognized in earnings
−Removed: Loans held for sale
Balance, end of period
2 unchanged sentences
TBA Securities
+Added: September 30,
Balance, beginning of period
4 unchanged sentences
Interest Rate Lock
+Added: September 30,
Balance, beginning of period
4 unchanged sentences
Forward Sales Commitments
+Added: September 30,
Balance, beginning of period
4 unchanged sentences
TBA Securities
+Added: September 30,
Balance, beginning of period
1 unchanged sentence
Balance, end of period
−Removed: Derivative Financial Liabilities
−Removed: TBA Securities
The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date
1 unchanged sentence
Interest Rate Lock
+Added: September 30,
Balance, beginning of period
5 unchanged sentences
Three Months Ended
−Removed: June 30, 2022
+Added: September 30, 2022
Three Months Ended
−Removed: June 30, 2021
+Added: September 30, 2021
Income from mortgage banking activities
−Removed: Six Months Ended
−Removed: June 30, 2022
−Removed: Six Months Ended
−Removed: June 30, 2021
+Added: Nine Months Ended
+Added: September 30, 2022
+Added: Nine Months Ended
+Added: September 30, 2021
Income from mortgage banking activities
The following table reflects the difference between the aggregate fair value and the remaining contractual principal outstanding for financial instruments for which the fair value option has been elected:
−Removed: June 30, 2022
+Added: September 30, 2022
December 31, 2021
5 unchanged sentences
The following describes the valuation techniques used by United to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements.
−Removed: Loans held for sale
−Removed: Loans held for sale within the community banking segment that are delivered on a best efforts basis are carried at the lower of cost or fair value.
−Removed: The fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (“Level 2”).
−Removed: As such, United records any fair value adjustments for these loans held for sale on a nonrecurring basis.
−Removed: No nonrecurring fair value adjustments were recorded on loans held for sale during the year ended June 30, 2022.
−Removed: Gains and losses on sale of loans are recorded within income from mortgage banking activities on the Consolidated Statements of Income.
Individually assessed loans
36 unchanged sentences
United performed its annual goodwill impairment test on the Company’s reporting units as of September 30, 2022.
−Removed: The goodwill impairment test did not
−Removed: identify any goodwill impairment.
−Removed: In subsequent periods, economic uncertainty and
−Removed: volatility surrounding COVID-19
+Added: The goodwill impairment test did not identify any goodwill impairment.
+Added: In subsequent periods, economic uncertainty and volatility surrounding COVID-19
and the performance of the Company’s stock as well as possible other impairment indicators could cause us to perform a goodwill impairment test which could result in an impairment charge being recorded for that period if the carrying value of goodwill was found to exceed fair value.
1 unchanged sentence
Management reviews core deposit intangible assets on an annual basis, or sooner if indicators of impairment exist, and evaluates changes in facts and circumstances that may indicate impairment in the carrying value.
−Removed: No other fair value measurement of intangible assets was made during the first six months of 2022 and 2021.
+Added: No other fair value measurement of intangible assets was made during the first nine months of 2022 and 2021.
Mortgage Servicing Rights (“MSRs”):
6 unchanged sentences
The unobservable inputs for Level 3 valuations are market discount rates, anticipated prepayment speeds, projected delinquency rates, and ancillary fee income net of servicing costs.
−Removed: For the unobservable inputs used in the valuation of mortgage servicing rights at June 30, 2022 and December 31, 2021, refer to Note 8 of these Notes to Consolidated Financial Statements.
−Removed: The Company did no t record any temporary impairment of mortgage servicing rights in the second quarter and first six months ended June 30, 2022.
−Removed: The Company recorded a temporary impairment, net of recoveries of $ 250 on mortgage servicing rights in the second quarter and first six months ended June 30, 2021.
+Added: For the unobservable inputs used in the valuation of mortgage servicing rights at September 30, 2022 and December 31, 2021, refer to Note 8 of these Notes to Consolidated Financial Statements.
The following table summarizes United’s financial assets that were measured at fair value on a nonrecurring basis during the period:
−Removed: Fair value at June 30, 2022
Balance as of
−Removed: June 30, 2022
+Added: September 30, 2022
+Added: Fair value at September 30, 2022
Quoted Prices
Individually assessed loans
−Removed: Mortgage servicing rights
−Removed: Fair value at December 31, 2021
Balance as of
December 31, 2021
+Added: Fair value at December 31, 2021
Quoted Prices
8 unchanged sentences
If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data.
−Removed: Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data.
+Added: Third party vendors compile prices from various sources and may determine the
+Added: fair value of identical or similar securities by using pricing models that consider observable market data.
Any securities held to maturity, not valued based upon the methods above, are valued based on a discounted cash flow methodology using appropriately adjusted discount rates reflecting nonperformance and liquidity risks.
16 unchanged sentences
Quoted Prices
−Removed: June 30, 2022
+Added: September 30, 2022
Cash and cash equivalents
9 unchanged sentences
Derivative financial liabilities
+Added: Fair Value Measurements
+Added: Quoted Prices
December 31, 2021
22 unchanged sentences
director during any calendar year is 10,000 or, if such Award is payable in cash, the Fair Market Value equivalent thereof.
−Removed: The maximum number of shares of restricted stock or shares
−Removed: subject to a restricted stock units award that may be granted during any calendar year is 225,000 shares to any individual key employee and 10,000 shares to any individual non-employee
+Added: The maximum number of shares of restricted stock or shares subject to a restricted stock units award that may be granted during any calendar year is 225,000 shares to any individual key employee and 10,000 shares to any individual non-employee
Subject to certain change in control provisions, the 2020 LTI Plan provides that all awards of will vest as the Committee determines in the award agreement, provided that no awards will vest sooner than 1/3 per year over the first three anniversaries of the award.
2 unchanged sentences
The 2020 LTI Plan replaces the 2016 LTI Plan.
−Removed: Compensation expense of $ 2,543 and $ 4,604 related to the nonvested awards under United’s Long-Term Incentive Plans was incurred for the second quarter and first six months of 2022, respectively, as compared to the compensation expense of $ 1,892 and $ 3,580 related to the nonvested awards under United’s Long-Term Incentive Plans incurred for the second quarter and first six months of 2021, respectively.
+Added: Compensation expense of $ 2,462 and $ 7,066 related to the nonvested awards under United’s Long-Term Incentive Plans was incurred for the third quarter and first nine months of 2022, respectively, as compared to the compensation expense of $ 1,912 and $ 5,492 related to the nonvested awards under United’s Long-Term Incentive Plans incurred for the third quarter and first nine months of 2021, respectively.
Compensation expense was included in employee compensation in the unaudited Consolidated Statements of Income.
4 unchanged sentences
The maximum term for options granted under the plans is ten ( 10 ) years.
−Removed: A summary of activity under United’s stock option plans as of June 30, 2022, and the changes during the first six months of 2022 are presented below:
−Removed: Six Months Ended June 30, 2022
+Added: A summary of activity under United’s stock option plans as of September 30, 2022, and the changes during the first nine months of 2022 are presented below:
+Added: Nine Months Ended September 30, 2022
Weighted Average
1 unchanged sentence
Forfeited or expired
−Removed: Outstanding at June 30, 2022
−Removed: Exercisable at June 30, 2022
−Removed: The following table summarizes the status of United’s nonvested stock option awards during the first six months of 2022:
+Added: Outstanding at September 30, 2022
+Added: Exercisable at September 30, 2022
+Added: The following table summarizes the status of United’s nonvested stock option awards during the first nine months of 2022:
Weighted-Average
2 unchanged sentences
Forfeited or expired
−Removed: Nonvested at June 30, 2022
−Removed: During the six months ended June 30, 2022 and 2021, 319,573 and 173,945 shares, respectively, were issued in connection with stock option exercises.
−Removed: All shares issued in connection with stock option exercises for the six months ended June 30, 2022 and 2021 were issued from authorized and unissued stock.
−Removed: The total intrinsic value of options exercised under the Plans during the six months ended June 30, 2022 and 2021 was $ 4,619 and $ 1,644 respectively.
−Removed: As of June 30, 2022, the total unrecognized compensation cost related to nonvested stock option awards was $ 753 with a weighted-average expense recognition period of 1.0 years.
+Added: Nonvested at September 30, 2022
+Added: During the nine months ended September 30, 2022 and 2021, 370,995 and 175,662 shares, respectively, were issued in connection with stock option exercises.
+Added: All shares issued in connection with stock option exercises for the nine months ended September 30, 2022 and 2021 were issued from authorized and unissued stock.
+Added: The total intrinsic value of options exercised under the Plans during the nine months ended September 30, 2022 and 2021 was $ 5,095 and $ 1,685 respectively.
+Added: As of September 30, 2022, the total unrecognized compensation cost related to nonvested stock option awards was $ 579 with a weighted-average expense recognition period of 0.7 years.
Restricted Stock
3 unchanged sentences
Presently, these nonvested participating securities have an immaterial impact on diluted earnings per share.
−Removed: As of June 30, 2022, the total unrecognized compensation cost related to nonvested restricted stock awards was $ 10,388 with a weighted-average expense recognition period of 1.3 years.
−Removed: The following summarizes the changes to United’s nonvested restricted common shares for the period ended June 30, 2022:
+Added: As of September 30, 2022, the total unrecognized compensation cost related to nonvested restricted stock awards was $ 9,433 with a weighted-average expense recognition period of 1.1 years.
+Added: The following summarizes the changes to United’s nonvested restricted common shares for the period ended September 30, 2022:
Weighted-Average
1 unchanged sentence
Nonvested at January 1, 2022
−Removed: Nonvested at June 30, 2022
+Added: Nonvested at September 30, 2022
Restricted Stock Units
14 unchanged sentences
The Company recognizes expense on the RSUs in accordance with ASC Topic 718.
−Removed: The following table summarizes the status of United’s nonvested RSUs during the first six months of
+Added: The following table summarizes the status of United’s nonvested RSUs during the first nine months of 2022:
Weighted-Average
2 unchanged sentences
Forfeited or expired
−Removed: Nonvested at June 30, 2022
−Removed: As of June 30, 2022, the total unrecognized compensation cost related to nonvested restricted stock units was $ 6,810 with a weighted-average expense recognition period of 1.4 years.
+Added: Nonvested at September 30, 2022
+Added: As of September 30, 2022, the total unrecognized compensation cost related to nonvested restricted stock units was $ 6,194 with a weighted-average expense recognition period of 1.2 years.
EMPLOYEE BENEFIT PLANS
2 unchanged sentences
Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future.
−Removed: No discretionary contributions were made during the first six months of 2022 and 2021.
+Added: No discretionary contributions were made during the first nine months of 2022 and 2021.
Included in accumulated other comprehensive income at December 31, 2021 are unrecognized actuarial losses of $ 44,370 ($ 34,032 net of tax) that have not yet been recognized in net periodic pension cost.
−Removed: Net periodic pension cost for the three and six months ended June 30, 2022 and 2021 included the following
+Added: Net periodic pension cost for the three and nine months ended September 30, 2022 and 2021 included the following components:
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Interest cost
10 unchanged sentences
and a measurement attribute for all tax positions taken on a tax return, in order for those tax positions to be recognized in the financial statements.
−Removed: As of June 30, 2022 and 2021, the total amount of accrued interest related to uncertain tax positions was $ 780 and $ 722 , respectively.
+Added: As of September 30, 2022 and 2021, the total amount of accrued interest related to uncertain tax positions was $ 807 and $ 748 , respectively.
United accounts for interest and penalties related to uncertain tax positions as part of its provision for federal and state income taxes.
United is currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended December 31, 2019, 2020 and 2021 and certain State Taxing authorities for the years ended December 31, 2019 through 2021.
−Removed: United’s effective tax rate was 19.75 % for both the second quarter and first six months of 2022 and 20.50 % for both the second quarter and first six months of 2021.
+Added: United’s effective tax rate was 20.17 % and 19.90 % the third quarter and first nine months of 2022, respectively, and 20.39 % and 20.47 % for the third quarter and first nine months of 2021, respectively.
COMPREHENSIVE INCOME
−Removed: The components of total comprehensive income for the three and six months ended June 30, 2022 and 2021 are as
+Added: The components of total comprehensive income for the three and nine months ended September 30, 2022 and 2021 are as follows:
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Available for sale (“AFS”) securities:
−Removed: Change in net unrealized (loss) gain on AFS securities arising during
+Added: Change in net unrealized (loss) gain on AFS securities arising during the period
Related income tax effect
2 unchanged sentences
Net effect of AFS securities on other comprehensive income
+Added: Three Months Ended
+Added: Nine Months Ended
Cash flow hedge derivatives:
7 unchanged sentences
Related income tax benefit
−Removed: Net effect of change in pension plan asset on other comprehensive
+Added: Net effect of change in pension plan asset on other comprehensive income
Total change in other comprehensive income
Total Comprehensive (Loss) Income
−Removed: The components of accumulated other comprehensive income for the six months ended June 30, 2022 are as
+Added: The components of accumulated other comprehensive income for the nine months ended September 30, 2022 are as follows:
Changes in Accumulated Other Comprehensive Income (AOCI) by Component (a)
−Removed: For the Six Months Ended June 30, 2022
+Added: For the Nine Months Ended September 30, 2022
Balance at January 1, 2022
2 unchanged sentences
Net current-period other comprehensive income, net of tax
−Removed: Balance at June 30, 2022
+Added: Balance at September 30, 2022
All amounts are net-of-tax.
Reclassifications out of Accumulated Other Comprehensive Income (AOCI)
−Removed: For the Six Months Ended June 30, 2022
+Added: For the Nine Months Ended September 30, 2022
Details about AOCI Components
2 unchanged sentences
Available for sale (“AFS”) securities:
−Removed: Net reclassification adjustment for
−Removed: gains included in net income
+Added: Net reclassification adjustment for gains included in net income
Net investment securities gains
−Removed: Reclassifications out of Accumulated Other Comprehensive Income (AOCI)
−Removed: For the Six Months Ended June 30, 2022
−Removed: Details about AOCI Components
−Removed: Affected Line Item in the Statement Where
−Removed: Net Income is Presented
Total before tax
1 unchanged sentence
Cash flow hedge:
−Removed: Net reclassification adjustment for losses included in net
+Added: Net reclassification adjustment for losses included in net income
Interest expense
4 unchanged sentences
Total before tax
+Added: Reclassifications out of Accumulated Other Comprehensive Income (AOCI)
+Added: For the Nine Months Ended September 30, 2022
+Added: Details about AOCI Components
+Added: Affected Line Item in the Statement Where
+Added: Net Income is Presented
Related income tax effect
4 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Distributed earnings allocated to common stock
6 unchanged sentences
Earnings per diluted common share
−Removed: Antidilutive stock options and restricted stock outstanding of 847,758 and 1,144,734 for the three months and six months ended June 30, 2022, respectively, were excluded from the earnings per diluted common share calculation as compared to 468,892 and 978,095 for the three months and six months ended June 30, 2021, respectively.
+Added: Antidilutive stock options and restricted stock outstanding of 678,879 and 1,117,428 for the three months and nine months ended September 30, 2022, respectively, were excluded from the earnings per diluted common share calculation as compared to 1,239,529 and 984,803 for the three months and nine months ended September 30, 2021, respectively.
VARIABLE INTEREST ENTITIES
12 unchanged sentences
The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE.
−Removed: Information related to United’s statutory trusts is presented in the table
+Added: Information related to United’s statutory trusts is presented in the table below:
Issuance Date
8 unchanged sentences
December 19, 2003
−Removed: LIBOR + 2.85%
+Added: 3-month LIBOR + 2.85%
January 23, 2034
72 unchanged sentences
These partnerships are considered VIEs as the limited partners lack a controlling financial interest in the entities through their inability to make decisions that have a significant effect on the operations and success of the partnerships.
−Removed: United’s limited partner interests in these entities is immaterial, however;
−Removed: these partnerships are not consolidated as United is not deemed to be the primary beneficiary.
+Added: United’s limited partner interests in these entities is immaterial;
+Added: however, these partnerships are not consolidated as United is not deemed to be the primary beneficiary.
The following table summarizes quantitative information about United’s significant involvement in unconsolidated VIEs:
−Removed: As of June 30, 2022
+Added: As of September 30, 2022
As of December 31, 2021
6 unchanged sentences
In particular, the community banking segment includes both commercial and consumer lending and provides customers with such products as commercial loans, real estate loans, business financing and consumer loans.
−Removed: In addition, this segment provides customers with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit as well as investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management.
+Added: In addition, this segment provides customers
+Added: with several choices of deposit products including demand deposit accounts, savings accounts and certificates of deposit as well as investment and financial advisory services to businesses and individuals, including financial planning, retirement/estate planning, and investment management.
The mortgage banking segment engages primarily in the origination and acquisition of residential mortgages for sale into the secondary market though United’s mortgage banking subsidiaries, George Mason and Crescent.
2 unchanged sentences
These rights, which are known as mortgage servicing rights, provide the owner with the contractual right to receive a stream of cash flows in exchange for performing specified mortgage servicing functions.
−Removed: The community banking segment provides the mortgage banking segment (George Mason and Crescent) with short-term funds to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the 30-day
+Added: The community banking segment provides the mortgage banking segment (George Mason and Crescent) with short-term funds to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on a Fed Funds target rate.
These transactions are eliminated in the consolidation process.
4 unchanged sentences
The “Other” represents an overhead function rather than an operating segment.
−Removed: Information about the reportable segments and reconciliation of this information to the consolidated financial statements at and for the three and six months ended June 30, 2022 and 2021 is as follows:
−Removed: At and For the Three Months Ended June 30, 2022
+Added: Information about the reportable segments and reconciliation of this information to the consolidated financial statements at and for the three and nine months ended September 30, 2022 and 2021 is as follows:
+Added: At and For the Three Months Ended September 30, 2022
Net interest income
4 unchanged sentences
Average assets (liabilities)
−Removed: At and For the Three Months Ended June 30, 2021
+Added: At and For the Three Months Ended September 30, 2021
Net interest income
4 unchanged sentences
Average assets (liabilities)
−Removed: At and For the Six Months Ended June 30, 2022
+Added: At and For the Nine Months Ended September 30, 2022
Net interest income
4 unchanged sentences
Average assets (liabilities)
−Removed: At and For the Six Months Ended June 30, 2021
+Added: At and For the Nine Months Ended September 30, 2021
Net interest income
5 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.