FINANCIAL STATEMENTS (UNAUDITED)
−Removed: The June 30, 2024 and December 31, 2023, 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, 2024 and 2023, the related consolidated statement of changes in shareholders’ equity for the three and six months ended June 30, 2024 and 2023, the related condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023, and the notes to consolidated financial statements appear on the following pages.
+Added: The September 30, 2024 and December 31, 2023, 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, 2024 and 2023, the related consolidated statement of changes in shareholders’ equity for the three and nine months ended September 30, 2024 and 2023, the related condensed consolidated statements of cash flows for the nine months ended September 30, 2024 and 2023, 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-$ 3,679,539 at June 30, 2024 and $ 4,149,895 at December 31, 2023, allowance for credit losses of $ 0 at June 30, 2024 and December 31, 2023)
−Removed: Securities held to maturity, net of allowance for credit losses of $ 19 at June 30, 2024 and $ 17 at December 31, 2023 (estimated fair value-$ 1,020 at June 30, 2024 and December 31, 2023)
+Added: Securities available for sale at estimated fair value (amortized cost-$ 3,509,648 at September 30, 2024 and $ 4,149,895 at December 31, 2023, allowance for credit losses of $ 0 at September 30, 2024 and December 31, 2023)
+Added: Securities held to maturity, net of allowance for credit losses of $ 19 at September 30, 2024 and $ 17 at December 31, 2023 (estimated fair value-$ 1,020 at September 30, 2024 and December 31, 2023)
Equity securities at estimated fair value
28 unchanged sentences
issued- 142,567,165
−Removed: and 142,257,646 at June 30, 2024 and December 31, 2023, respectively, including 7,345,812 and 7,308,583 shares in treasury at June 30, 2024 and December 31, 2023, respectively
+Added: and 142,257,646 at September 30, 2024 and December 31, 2023, respectively, including 7,346,395 and 7,308,583 shares in treasury at September 30, 2024 and December 31, 2023, respectively
Retained earnings
9 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Interest income
26 unchanged sentences
Other real estate owned (“OREO”) expense
−Removed: Net losses (gains) on the sales of OREO properties
+Added: Net (gains) losses 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
+Added: Nine Months Ended
Change in net unrealized gain (loss) on available-for-sale
8 unchanged sentences
(Dollars in thousands, except per share data)
−Removed: Six Months Ended June 30, 2024
+Added: Nine Months Ended September 30, 2024
Comprehensive
−Removed: Shareholders’
Income (Loss)
+Added: Shareholders’
Balance at January 1, 2024
17 unchanged sentences
Balance at June 30, 2024
+Added: Comprehensive income:
+Added: Other comprehensive gain, net of tax
+Added: Total comprehensive income, net of tax
+Added: Stock based compensation expense
+Added: Purchase of treasury stock ( 226 shares)
+Added: Cash dividends ($ 0.37 per share)
+Added: Stock grant forfeiture ( 357 shares)
+Added: Net issuance of common stock under stock-based compensation plans ( 25,649 shares)
+Added: Balance at September 30, 2024
See notes to consolidated unaudited financial statements.
3 unchanged sentences
(Dollars in thousands, except per share data)
−Removed: Six Months Ended June 30, 2023
+Added: Nine Months Ended September 30, 2023
Comprehensive
Shareholders’
−Removed: Income (Loss)
Balance at January 1, 2023
6 unchanged sentences
Cash dividends ($ 0.36 per share)
−Removed: Net issuance of common stock under stock-based compensation plans ( 226,486 shares)
+Added: Net issuance of common stock under stock- based
+Added: compensation plans ( 226,486 shares)
Balance at March 31, 2023
8 unchanged sentences
Balance at June 30, 2023
+Added: Comprehensive income:
+Added: Other comprehensive loss, net of tax
+Added: Total comprehensive income, net of tax
+Added: Stock based compensation expense
+Added: Purchase of treasury stock ( 232 shares)
+Added: Cash dividends ($ 0.36 per share)
+Added: Stock grant forfeiture ( 2,161 shares)
+Added: Net issuance of common stock under stock-based compensation plans ( 550 shares)
+Added: Balance at September 30, 2023
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
42 unchanged sentences
Actual results could differ from those estimates.
−Removed: The financial statements presented as of June 30, 2024 and 2023 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, 2024 and 2023 and for the three-month and nine-month periods then ended have not been audited.
The consolidated balance sheet as of December 31, 2023 has been extracted from the audited financial statements included in United’s 2023 Annual Report to Shareholders.
7 unchanged sentences
Operating and Reporting Segments
−Removed: As of June 30, 2024, United’s business activities are confined to one operating segment, United Bank, and one reportable segment, community banking.
+Added: As of September 30, 2024, United’s business activities are confined to one operating segment, United Bank, and one reportable segment, community banking.
As a community banking entity, United, through United Bank, offers a full range of products and services through various delivery channels.
93 unchanged sentences
The Merger Agreement was approved and adopted by the board of directors of each of United and Piedmont.
−Removed: Piedmont is a well-capitalized, single bank holding company headquartered in Atlanta, Georgia with total assets of approximately $ 2.1 billion, total loans of approximately $ 1.8 billion, total liabilities of approximately $ 1.9 billion, total deposits of approximately $ 1.9 billion, and total shareholders’ equity of approximately $ 200 million as of June 30, 2024.
+Added: Piedmont is a well-capitalized, single bank holding company headquartered in Atlanta, Georgia with total assets of approximately $ 2.2 billion, total loans of approximately $ 1.9 billion, total liabilities of approximately $ 2.0 billion, total deposits of approximately $ 2.0 billion, and total shareholders’ equity of approximately $ 207 million as of September 30, 2024.
Piedmont is the holding company for The Piedmont Bank, a Georgia state-chartered bank, with sixteen locations in the State of Georgia.
Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of common stock, $ 0.01 par value, of Piedmont (“Piedmont Common Stock”) outstanding immediately prior to the Effective Time, other than certain shares of Piedmont Common Stock held by United and its subsidiaries, will be converted into the right to receive, without interest, (a) 0.300 of a share (the “Exchange Ratio”) of common stock, $ 2.50 par value, of United (“United Common Stock” and such consideration is hereinafter referred to as the “Merger Consideration”) and (b) cash in lieu of fractional shares.
−Removed: At the Effective Time, (i) each option to purchase shares of Piedmont Common Stock will fully vest and will be cashed out based on a formula that takes into account the difference between the exercise price and the volume-weighted average of the closing sales price on Nasdaq of United Common Stock for the 10 full trading days ending on the second trading day immediately preceding the Effective Time and the Exchange Ratio, (ii) each warrant to purchase shares of Piedmont
+Added: At the Effective Time, (i) each option to purchase shares of Piedmont
+Added: Common Stock will fully vest and will be cashed out based on a formula that takes into account the difference between the exercise price and the volume-weighted average of the closing sales price on Nasdaq of United Common Stock for the 10 full trading days ending on the second trading day immediately preceding the Effective Time and the Exchange Ratio, (ii) each warrant to purchase shares of Piedmont
Common Stock will fully vest and holders will have the option to convert into the right to receive shares of United Common Stock based on the exchange ratio or be cashed out based on the same formula applicable to option holders, and (iii) each restricted stock grant, restricted stock unit grant and any other outstanding equity award with respect to Piedmont Common Stock that is subject to vesting will fully vest and be entitled to receive the Merger Consideration.
−Removed: The completion of the Merger and the Bank Merger are subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals from the Board of Governors of the Federal Reserve System and the Virginia Bureau of Financial Institutions, regulatory filings with the Georgia Department of Banking and Finance, and the approval by the stockholders of Piedmont.
−Removed: United has filed an amended Form S-4
−Removed: with the Securities and Exchange Commission regarding the proposed merger with Piedmont.
+Added: The completion of the Merger and the Bank Merger are subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals from the Board of Governors of the Federal Reserve System, the Virginia Bureau of Financial Institutions, the Georgia Department of Banking and Finance, and the approval by the stockholders of Piedmont.
+Added: United has received regulatory approval from the Virginia Bureau of Financial Institutions and the stockholders of Piedmont have approved the merger.
The merger is expected to close late in the fourth quarter of 2024 or early in the first quarter of 2025.
3 unchanged sentences
The amortized cost, estimated fair values, and allowance for credit losses of securities available for sale are summarized as follows.
−Removed: June 30, 2024
+Added: September 30, 2024
Treasury securities and obligations of U.S.
23 unchanged sentences
debt securities.
−Removed: The table above excludes accrued interest receivable of $ 17,131 and $ 20,878 at June 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023.
+Added: The table above excludes accrued interest receivable of $ 17,334 and $ 20,878 at September 30, 2024 and December 31, 2023, 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, 2024 and December 31, 2023.
Less than 12 months
12 months or longer
−Removed: June 30, 2024
+Added: September 30, 2024
Treasury securities and obligations of U.S.
20 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
−Removed: Proceeds from sales and calls
+Added: Nine Months Ended
+Added: Proceeds from sales, maturities and calls
Gross realized gains
Gross realized losses
−Removed: At June 30, 2024, gross unrealized losses on available for sale securities were $ 364,144 on 1,028 securities of a total portfolio of 1,084 available for sale securities.
−Removed: Securities with the most significant gross unrealized losses at June 30, 2024 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities and other corporate securities.
+Added: At September 30, 2024, gross unrealized losses on available for sale securities were $ 272,558 on 959 securities of a total portfolio of 1,049 available for sale securities.
+Added: Securities with the most significant gross unrealized losses at September 30, 2024 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-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: Generally, the significant amount of gross unrealized losses on available for sale securities at June 30, 2024 was the result of rising interest rates.
+Added: Generally, the significant amount of gross unrealized losses on available for sale securities at September 30, 2024 was the result of rising interest rates.
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 $ 599,741 at June 30, 2024.
−Removed: As of June 30, 2024, approximately 47 % 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, 2024.
+Added: The total amortized cost of available for sale state and political subdivision securities was $ 576,768 at September 30, 2024.
+Added: As of September 30, 2024, approximately 46 % 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, 2024.
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
−Removed: of the state and political subdivision securities had credit losses at June 30, 2024.
+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, 2024.
Mortgage-backed securities
7 unchanged sentences
United had a net unrealized loss of $ 174,973 on mortgage-backed
−Removed: securities at June 30, 2024.
+Added: securities at September 30, 2024.
Below is a detailed discussion of mortgage-backed securities by type.
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 $ 1,582,695 at June 30, 2024.
+Added: The total amortized cost of available for sale agency mortgage-backed securities was $ 1,711,858 at September 30, 2024.
Of the $ 1,711,858 amount, $ 401,126 was related to agency commercial mortgage-backed securities and $ 1,310,732 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, 2024.
+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, 2024.
United’s non-agency
1 unchanged sentence
The total amortized cost of available for sale non-agency
−Removed: residential mortgage-backed securities was $ 89,854 at June 30, 2024.
+Added: residential mortgage-backed securities was $ 89,253 at September 30, 2024.
Of the $ 89,253 , 100 % was rated AAA.
Based upon management’s analysis and judgment, it was determined that none of the non-agency
−Removed: residential mortgage-backed securities had credit losses at June 30, 2024.
+Added: residential mortgage-backed securities had credit losses at September 30, 2024.
Asset-backed securities
−Removed: As of June 30, 2024, United’s asset-backed securities portfolio had a total amortized cost balance of $ 767,123 .
−Removed: 100 % of the portfolio was investment grade rated as of June 30, 2024.
+Added: As of September 30, 2024, United’s asset-backed securities portfolio had a total amortized cost balance of $ 553,808 .
+Added: 100 % of the portfolio was investment grade rated as of September 30, 2024.
Approximately 70 % 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 30 % of the portfolio relates to collateralized loan obligation securities that are all AAA rated.
−Removed: Upon reviewing this portfolio as of June 30, 2024, it was determined that none of the asset-backed securities had credit losses.
+Added: Upon reviewing this portfolio as of September 30, 2024, it was determined that none of the asset-backed securities had credit losses.
Single issue trust preferred securities
2 unchanged sentences
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, 2024 consisted of $ 7,478 in investment grade bonds, $ 3,113 in split rated bonds, and $ 5,808 in unrated bonds.
+Added: The amortized cost of available for sale single issue trust preferred securities as of September 30, 2024 consisted of $ 7,480 in investment grade bonds, $ 3,118 in split rated bonds, and $ 5,811 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 2024, 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 2024, it was determined that none of the single issue trust preferred securities had credit losses.
Other corporate securities
−Removed: As of June 30, 2024, United’s other corporate securities portfolio had a total amortized cost balance of $ 285,653 .
+Added: As of September 30, 2024, United’s other corporate securities portfolio had a total amortized cost balance of $ 281,901 .
The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions.
1 unchanged sentence
For other 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 other corporate securities had credit losses at June 30, 2024.
−Removed: The amortized cost and estimated fair value of securities available for sale at June 30, 2024 and December 31, 2023 by contractual maturity are shown as follows.
+Added: Based upon management’s analysis and judgment, it was determined that none of the other corporate securities had credit losses at September 30, 2024.
+Added: The amortized cost and estimated fair value of securities available for sale at September 30, 2024 and December 31, 2023 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, 2024
+Added: September 30, 2024
December 31, 2023
5 unchanged sentences
Equity securities consist mainly of mutual funds of Community Reinvestment Act (“CRA”) qualified investments and equity securities 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 $ 11,094 at June 30, 2024 and $ 8,945 at December 31, 2023.
−Removed: The balance of $ 11,094 in equity securities at June 30, 2024 includes 2,117 C shares of Visa valued at $ 2,223 .
+Added: The fair value of United’s equity securities was $ 9,082 at September 30, 2024 and $ 8,945 at December 31, 2023.
Three Months Ended
−Removed: Six Months Ended
−Removed: Net gains recognized during the period on equity securities sold
+Added: Nine Months Ended
+Added: Net (losses) gains recognized during the period on equity securities sold
Unrealized gains recognized during the period on equity securities still held at period end
Unrealized losses recognized during the period on equity securities still held at period end
−Removed: recognized during the period
+Added: Net gains (losses) recognized during the period
Other investment securities
−Removed: During the second quarter of 2024, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the second quarter of 2024 had a significant adverse effect on the recorded 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 recorded 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 $ 2,182,117 and $ 2,307,591 at June 30, 2024 and December 31, 2023, respectively.
+Added: During the third quarter of 2024, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the third quarter of 2024 had a significant adverse effect on the recorded 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 recorded 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 $ 2,156,152 and $ 2,307,591 at September 30, 2024 and December 31, 2023, respectively.
LOANS AND LEASES
Major classes of loans and leases are as follows:
−Removed: June 30, 2024
+Added: September 30, 2024
December 31, 2023
6 unchanged sentences
Construction & land development
−Removed: June 30, 2024
+Added: September 30, 2024
+Added: December 31, 2023
Other consumer
1 unchanged sentence
Total gross loans
−Removed: The table above does not include loans held for sale of $ 66,475 and $ 56,261 at June 30, 2024 and December 31, 2023, respectively.
+Added: The table above does not include loans held for sale of $ 46,493 and $ 56,261 at September 30, 2024 and December 31, 2023, 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 $ 23,137 and $ 68,460 at June 30, 2024 and December 31, 2023, respectively.
+Added: The aggregate dollar amount of these loans was $ 22,876 and $ 68,460 at September 30, 2024 and December 31, 2023, respectively.
CREDIT QUALITY
11 unchanged sentences
Age Analysis of Past Due Loans and Leases
−Removed: As of June 30, 2024
+Added: As of September 30, 2024
Commercial real estate:
3 unchanged sentences
Residential real estate
−Removed: Construction & land
+Added: Construction & land development
Other consumer
9 unchanged sentences
The following table sets forth United’s nonaccrual loans and leases, segregated by class of loans and leases:
−Removed: At June 30, 2024
+Added: At September 30, 2024
At December 31, 2023
8 unchanged sentences
Other consumer
−Removed: Interest income recognized on nonaccrual loans was insignificant during the three and six months ended June 30, 2024 and 2023.
+Added: Interest income recognized on nonaccrual loans was insignificant during the three and nine months ended September 30, 2024 and 2023.
In some cases, United will modify a loan to a borrower experiencing financial difficulty by providing multiple types of concessions such as a term extension, principal forgiveness, an interest rate reduction or a combination thereof.
−Removed: The following table presents the amortized cost of loans and leases to borrowers experiencing financial difficulty modified during the first three and six months of 2024 and 2023, respectively, by class of financing receivable and by type of modification.
+Added: The following table presents the amortized cost of loans and leases to borrowers experiencing financial difficulty modified during the first three and nine months of 2024 and 2023, respectively, by class of financing receivable and by type of modification.
The percentage of the amortized cost basis of loans and leases that were modified to borrowers experiencing financial difficulty as compared to the amortized cost basis of each class of financing receivable is also represented below.
−Removed: Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial
−Removed: For the Three Months ended June 30, 2024
+Added: No loans were modified for the three months ended September 30, 2023.
+Added: Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing
+Added: Financial Difficulty
+Added: For the Three Months ended September 30, 2024
Term Extension &
9 unchanged sentences
Construction & land development
−Removed: Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial
−Removed: For the Three Months ended June 30, 2024
−Removed: Term Extension &
−Removed: Interest Rate
−Removed: Term Extension &
−Removed: Payment Delay
−Removed: % of Total Class of
Other consumer
Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial
−Removed: For the Three Months ended June 30, 2023
−Removed: Term Extension &
−Removed: Interest Rate
−Removed: Term Extension &
−Removed: Payment Delay
−Removed: % of Total Class of
−Removed: Commercial real estate:
−Removed: Owner-occupied
−Removed: Nonowner-occupied
−Removed: Other commercial
−Removed: Residential real estate
−Removed: Construction & land
−Removed: Other consumer
−Removed: Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial
−Removed: For the Six Months ended June 30, 2024
+Added: For the Nine Months ended September 30, 2024
Term Extension &
11 unchanged sentences
Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial
−Removed: For the Six Months ended June 30, 2023
+Added: For the Nine Months ended September 30, 2023
Term Extension &
8 unchanged sentences
Residential real estate
−Removed: Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial
−Removed: For the Six Months ended June 30, 2023
−Removed: Term Extension &
−Removed: Interest Rate
−Removed: Term Extension &
−Removed: Payment Delay
−Removed: % of Total Class of
Construction & land development
Other consumer
−Removed: As of June 30, 2024 and December 31, 2023, there were commitments to lend additional funds of $ 340 and $ 28 , respectively, to debtors owing loan receivables whose terms have been modified.
+Added: As of September 30, 2024 and December 31, 2023, there were commitments to lend additional funds of $ 49 and $ 28 , respectively, to debtors owing loan receivables whose terms have been modified.
United’s estimate of future credit losses uses a lifetime methodology, derived from modeled loan performance based on the extensive historical experience of loans with similar risk characteristics, adjusted to reflect current conditions and reasonable and supportable forecasts.
3 unchanged sentences
Payment Status (Amortized Cost Basis)
−Removed: As of June 30, 2024
−Removed: As of June 30, 2023
+Added: As of September 30, 2024
+Added: As of September 30, 2023
Commercial real estate:
3 unchanged sentences
Residential real estate
−Removed: Construction & land
+Added: Construction & land development
Other consumer
−Removed: The following table presents the financial effect of loan and lease modifications to borrowers experiencing financial difficulty for the three and six months ended June 30, 2024 and 2023.
+Added: The following table presents the financial effect of loan and lease modifications to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2024 and 2023.
+Added: No loans were modified for the three months ended September 30, 2023.
For the Three Months Ended
−Removed: June 30, 2024
−Removed: June 30, 2023
−Removed: Interest Rate
+Added: September 30, 2024
Interest Rate
4 unchanged sentences
Residential Real Estate
−Removed: For the Three Months Ended
−Removed: June 30, 2024
−Removed: June 30, 2023
−Removed: Interest Rate
−Removed: Interest Rate
Construction & land development
Other consumer
−Removed: For the Six Months Ended
−Removed: June 30, 2024
−Removed: June 30, 2023
+Added: For the Nine Months Ended
+Added: September 30, 2024
+Added: September 30, 2023
Interest Rate
7 unchanged sentences
Other consumer
−Removed: No loan or lease modifications completed within the last 12 months to borrowers experiencing financial difficulty had a payment default during the three and six months ended June 30, 2024 and 2023.
+Added: No loan or lease modifications completed within the last 12 months to borrowers experiencing financial difficulty had a payment default during the three and nine months ended September 30, 2024 and 2023.
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, 2024 and December 31, 2023:
+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, 2024 and December 31, 2023:
Collateral Dependent Loans and Leases
−Removed: At June 30, 2024
+Added: At September 30, 2024
Commercial real estate:
12 unchanged sentences
Residential real estate
−Removed: Construction & land
+Added: Construction & land development
Other consumer
32 unchanged sentences
Commercial Real Estate – Owner-occupied
−Removed: Origination Year
Revolving loans
amortized cost
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
3 unchanged sentences
Current-period net recoveries
−Removed: Origination Year
Revolving loans
1 unchanged sentence
loans and leases
+Added: Origination Year
As of December 31, 2023
5 unchanged sentences
Commercial Real Estate – Nonowner-occupied
−Removed: Origination Year
Revolving loans
amortized cost
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
3 unchanged sentences
Current-period net (charge-offs) recoveries
−Removed: Origination Year
Revolving loans
1 unchanged sentence
loans and leases
+Added: Origination Year
As of December 31, 2023
6 unchanged sentences
Term Loans and leases
−Removed: Origination Year
Revolving loans
1 unchanged sentence
loans and leases
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
4 unchanged sentences
Term Loans and leases
−Removed: Origination Year
Revolving loans
1 unchanged sentence
loans and leases
+Added: Origination Year
As of December 31, 2023
5 unchanged sentences
Residential Real Estate
−Removed: Origination Year
Revolving loans
amortized cost
−Removed: loans converted to
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
2 unchanged sentences
Current-period recoveries
−Removed: Current-period net recoveries
−Removed: Origination Year
+Added: Current-period net (charge-offs) recoveries
Revolving loans
amortized cost
+Added: Origination Year
As of December 31, 2023
5 unchanged sentences
Construction and Land Development
−Removed: Origination Year
Revolving loans
amortized cost
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
3 unchanged sentences
Current-period net recoveries
−Removed: Origination Year
Revolving loans
amortized cost
+Added: Origination Year
As of December 31, 2023
4 unchanged sentences
Current-period net recoveries
−Removed: Origination Year
Revolving loans
amortized cost
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
3 unchanged sentences
Current-period net charge-offs
−Removed: Origination Year
Revolving loans
amortized cost
+Added: Origination Year
As of December 31, 2023
5 unchanged sentences
Other Consumer
−Removed: Origination Year
Revolving loans
amortized cost
−Removed: As of June 30, 2024
+Added: Origination Year
+Added: As of September 30, 2024
Internal Risk Grade:
3 unchanged sentences
Current-period net charge- offs
−Removed: Origination Year
Revolving loans
amortized cost
+Added: Origination Year
As of December 31, 2023
4 unchanged sentences
Current-period net (charge- offs) recoveries
−Removed: At June 30, 2024 and December 31, 2023, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $ 2,156 and $ 2,615 , respectively.
+Added: At September 30, 2024 and December 31, 2023, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $ 169 and $ 2,615 , 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, 2024 and December 31, 2023, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are
−Removed: in process was $ 952 and $ 142 , respectively.
+Added: At September 30, 2024 and December 31, 2023, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $ 244 and $ 142 , respectively.
ALLOWANCE FOR CREDIT LOSSES
7 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 $ 91,330 and $ 88,963 at June 30, 2024 and December 31, 2023, respectively, related to loans and leases t
−Removed: are included separately in “Accrued interest receivable” in the consolidated balance sheets.
+Added: Accrued interest receivable was $ 87,774 and $ 88,963 at September 30, 2024 and December 31, 2023, respectively, related to loans and leases that are included separately in “Accrued interest receivable” in the consolidated balance sheets.
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, 2024 and December 31, 2023:
+Added: The following table represents the accrued interest receivable as of September 30, 2024 and December 31, 2023:
Accrued Interest Receivable
−Removed: At June 30, 2024
+Added: At September 30, 2024
At December 31, 2023
5 unchanged sentences
Other consumer
−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, 2024 and 2023:
−Removed: Accrued Interest Receivables Written Off by Reversing Interest Income
+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, 2024 and 2023:
+Added: Accrued Interest Receivables Written Off
+Added: by Reversing Interest Income
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
Commercial real estate:
35 unchanged sentences
United maintains an allowance for loan and lease 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 $ 40,739 and $ 44,706 at June 30, 2024 and December 31, 2023, respectively, is separately classified on the balance sheet and is included in other liabilities.
+Added: The reserve for lending-related commitments of $ 37,973 and $ 44,706 at September 30, 2024 and December 31, 2023, respectively, is separately classified on the balance sheet and is included in other liabilities.
+Added: The decrease in the reserve for lending-related commitments from December 31, 2023 was due mainly to a lower amount of loan commitments outstanding.
The combined allowance for loan losses and reserve for lending-related commitments is considered the allowance for credit losses.
−Removed: United’s allowance for credit losses at June 30, 2024 increased $ 4,219 or 1.39 % from December 31, 2023.
+Added: United’s allowance for credit losses at September 30, 2024 increased $ 4,797 or 1.58 % from December 31, 2023.
The increase in the allowance for credit losses was primarily driven by increased outstanding loan balances for the commercial real estate non-owner
−Removed: occupied and residential real estate loan segments as well as adjustments for the reasonable and supportable forecast increasing the reserve for the commercial real estate non-owner
+Added: occupied, real estate construction and land development, and residential real estate loan segments as well as adjustments for the reasonable and supportable forecast increasing the reserve for the commercial real estate non-owner
occupied segment, particularly as it relates to office loans.
−Removed: The second quarter of 2024 qualitative adjustments include analyses of the following:
+Added: The third quarter of 2024 qualitative adjustments include analyses of the following:
Current conditions
8 unchanged sentences
Assumptions for the economic variables were the following:
−Removed: The forecast for real GDP in the second quarter remained consistent with the first quarter projections of 2.10 % for 2024, 2.00 % for 2025 and 2.00 % for 2026.
−Removed: The unemployment rate remained the same for 2024 at 4.00 % while 2025 shifted up slightly to 4.20 % from 4.10 % and 2026 also increased slightly to 4.10 % from 4.00 % .
+Added: The forecast for real GDP in the third quarter remained relatively consistent with the second quarter projections of 2.00 % for 2024 (a decrease of 0.10 % from the second quarter), 2.00 % for 2025 and 2.00 % for 2026.
+Added: The unemployment rate forecast
+Added: increased by 0.40 % for 2024 to 4.40 % while 2025 shifted up slightly to 4.40 % from 4.20 % and 2026 also increased slightly to 4.30 % from 4.10 %.
Greater risk of loss is probable in the office portfolio due to continued hybrid and remote work that may be exacerbated by future economic conditions as well as higher interest rates, cap rates and the uncertainty surrounding appraised values of the collateral.
4 unchanged sentences
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases
−Removed: For the Three Months Ended June 30, 2024
+Added: For the Three Months Ended September 30, 2024
Commercial Real Estate
4 unchanged sentences
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases
−Removed: For the Six Months Ended June 30, 2024
+Added: For the Nine Months Ended September 30, 2024
Commercial Real Estate
12 unchanged sentences
The following is a summary of intangible assets subject to amortization and those not subject to amortization:
−Removed: June 30, 2024
+Added: September 30, 2024
Community Banking
8 unchanged sentences
Goodwill not subject to amortization
−Removed: United incurred amortization expense of $ 910 and $ 1,820 for the three and six months ended June 30, 2024 as compared to $ 1,279 and $ 2,558 for the three and six months ended June 30, 2023, respectively.
+Added: United incurred amortization expense of $ 909 and $ 2,729 for the three and nine months ended September 30, 2024 as compared to $ 1,279 and $ 3,837 for the three and nine months ended September 30, 2023, respectively.
The following table sets forth the anticipated amortization expense for intangible assets for the years subsequent to 2023:
14 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 $ 1,138,443 at June 30, 2024 and $ 1,202,448 at December 31, 2023.
−Removed: The estimated fair value of the mortgage servicing rights was $ 13,434 and $ 13,427 at June 30, 2024 and December 31, 2023, respectively.
−Removed: The estimated fair value of servicing rights at June 30, 2024 was determined using a net servicing fee of 0.25 %, average discount rates ranging from 10.43 % to 11.00 % with a weighted average discount rate of 10.53 %, average constant prepayment rates (“CPR”) ranging from 7.55 % to 9.82 % with a weighted average prepayment rate of 9.05 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 2.95 %.
−Removed: The estimated fair value of servicing rights at December 31, 2023 was determined using a net servicing fee of 0.25 %, average discount rates ranging from 10.50 % to 10.82 % with a weighted average discount rate of 10.58 %, average constant prepayment rates (“CPR”) ranging from 7.84 % to 10.25 % with a weighted average prepayment rate of 9.43 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 3.29 %.
+Added: During the third quarter of 2024, United sold its remaining MSRs at a net gain of $ 7,086 .
+Added: The unpaid principal balances of loans serviced for others were approximately $ 1,202,448 at December 31, 2023.
+Added: Because of the sale of its remaining MSRs during the third quarter of 2024, there was no
+Added: estimated fair value of the MSRs at September 30, 2024.
+Added: The estimated fair value of MSRs at December 31, 2023 was $ 13,427 .
+Added: The estimated fair value of MSRs at December 31, 2023 was determined using a net servicing fee of 0.25 %, average discount rates ranging from 10.50 % to 10.82 % with a weighted average discount rate of 10.58 %, average constant prepayment rates (“CPR”) ranging from 7.84 % to 10.25 % with a weighted average prepayment rate of 9.43 %, depending upon the stratification of the specific servicing right, and a delinquency rate, including loans on forbearance of 3.29 %.
Please refer to Note 14 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, 2024 and 2023:
+Added: The following presents the activity in mortgage servicing rights, including their valuation allowance for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
MSRs beginning balance
7 unchanged sentences
MSRs, net of valuation allowance
−Removed: For the three and six months ended June 30, 2023, United recognized net gains of $ 8,148 and $ 8,306 on the sale of MSRs.
−Removed: The Company did no t record any temporary impairments on MSRs for the three and six months ended June 30, 2024 and 2023.
−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.
+Added: For the nine months ended September 30, 2024 and 2023, United recognized net gains of $ 7,086 and $ 8,306 , respectively, on the sale of MSRs.
+Added: The Company did no t record any temporary impairments on MSRs for the three and nine months ended September 30, 2024 and 2023.
+Added: The estimated amortization expense was based on current information regarding future loan payments and prepayments.
United determines if an arrangement is a lease at inception.
16 unchanged sentences
Classification
−Removed: June 30, 2024
−Removed: June 30, 2023
+Added: September 30,
+Added: September 30,
Operating lease cost
4 unchanged sentences
Classification
−Removed: June 30, 2024
−Removed: June 30, 2023
+Added: September 30,
+Added: September 30,
Operating lease cost
5 unchanged sentences
Classification
−Removed: June 30, 2024
−Removed: December 31, 2023
+Added: September 30,
Operating lease right-of-use
3 unchanged sentences
Other information related to leases was as follows:
−Removed: June 30, 2024
+Added: September 30, 2024
Weighted-average remaining lease term:
4 unchanged sentences
Three Months Ended
−Removed: June 30, 2024
−Removed: June 30, 2023
+Added: September 30, 2024
+Added: September 30, 2023
Cash paid for amounts in the measurement of lease liabilities:
−Removed: Operating cash flows from operating leases
+Added: Operating cash flows used for operating leases
ROU assets obtained in the exchange for lease liabilities
−Removed: Six Months Ended
−Removed: June 30, 2024
−Removed: June 30, 2023
+Added: Nine Months Ended
+Added: September 30, 2024
+Added: September 30, 2023
Cash paid for amounts in the measurement of lease liabilities:
−Removed: Operating cash flows from operating leases
+Added: Operating cash flows used for operating leases
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, 2023, consists of the following as of June 30, 2024:
+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, 2023, consists of the following as of September 30, 2024:
Total lease payments
1 unchanged sentence
SHORT-TERM BORROWINGS
−Removed: At June 30, 2024 and December 31, 2023, short-term borrowings were as follows:
+Added: At September 30, 2024 and December 31, 2023, short-term borrowings were as follows:
+Added: September 30, 2024
+Added: December 31, 2023
Federal funds purchased
10 unchanged sentences
The line requires compliance with various financial and nonfinancial covenants.
−Removed: At June 30, 2024, United had no outstanding balance under this credit.
+Added: At September 30, 2024, 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, 2024, United had an unused borrowing amount of approximately $ 7,257,739 available subject to delivery of collateral after certain trigger points.
+Added: At September 30, 2024, United had an unused borrowing amount of approximately $ 8,186,527 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, 2024, $ 1,210,343 of FHLB advances with a weighted-average contractual interest rate of 5.42 % and a weighted-average effective interest rate of 3.33 % are scheduled to mature within the next two years.
−Removed: The weighted-average effective rate considers the effect of any interest rate swaps designated as cash flow hedges outstanding at June 30, 2024 to manage interest rate risk on its long-term debt.
+Added: At September 30, 2024, $ 260,271 of FHLB advances with a weighted-average contractual interest rate of 5.27 % and a weighted-average effective interest rate of 0.63 % are scheduled to mature within the next year.
+Added: The weighted-average effective rate considers the effect of any interest rate swaps designated as cash flow hedges outstanding at September 30, 2024 to manage interest rate risk on its long-term debt.
The scheduled maturities of these FHLB borrowings are as follows:
2028 and thereafter
−Removed: At June 30, 2024, 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, 2024, 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.
−Removed: At June 30, 2024 and December 31, 2023, the outstanding balance of the Debentures was $ 279,421 and $ 278,616 , 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, 2024 and December 31, 2023, the outstanding balance of the Debentures was $ 279,820 and $ 278,616 , 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.
18 unchanged sentences
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 $ 6,630,609 and $ 6,851,890 of loan commitments outstanding as of June 30, 2024 and December 31, 2023, respectively, approximately 41% of which contractually expire within one year .
+Added: United had approximately $ 6,406,595 and $ 6,851,890 of loan commitments outstanding as of September 30, 2024 and December 31, 2023, respectively, approximately 41% of which contractually expire within one year .
Excluded in the December 31, 2023 amount above were commitments to extend credit of $ 416,095 related to mortgage loan funding commitments of United’s previous mortgage banking segment which were of a short-term nature.
3 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, 2024 and December 31, 2023, United had $ 15,922 and $ 16,233 of commercial letters of credit outstanding.
+Added: As of September 30, 2024 and December 31, 2023, United had $ 15,771 and $ 16,233 of commercial letters of credit outstanding.
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 $ 151,898 and $ 147,705 as of June 30, 2024 and December 31, 2023, respectively.
+Added: United has issued standby letters of credit of $ 156,805 and $ 147,705 as of September 30, 2024 and December 31, 2023, 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.
2 unchanged sentences
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 reserve was immaterial as of June 30, 2024 and December 31, 2023.
+Added: United’s reserve was immaterial as of September 30, 2024 and December 31, 2023.
United has derivative counter-party risk that may arise from the possible inability of United’s mortgage banking third party investors to meet the terms of their forward sales contracts.
25 unchanged sentences
The notional amount of these cash flow hedge derivatives totaled $ 500,000 .
−Removed: The derivatives are intended to hedge the changes in cash flows associated with floating rate FHLB borrowings.
−Removed: As of June 30, 2024, 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: The derivatives were intended to hedge the changes in cash flows associated with floating rate FHLB borrowings.
+Added: One of these two interest rate swap derivatives matured during the third quarter of 2024.
+Added: As of September 30, 2024, United has determined that no forecasted transactions related to its remaining cash flow hedge 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 $ 8,719 will be reclassified from AOCI as a decrease to interest expense over the next 12-months
−Removed: following June 30, 2024 related to the cash flow hedges.
−Removed: As of June 30, 2024, the maximum length of time over which forecasted transactions are hedged is six years.
+Added: following September 30, 2024 related to the cash flow hedge.
+Added: As of September 30, 2024, the maximum length of time over which forecasted transactions are hedged is six 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.
7 unchanged sentences
The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument.
−Removed: 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 June 30, 2024.
+Added: The total notional amount of interest rate swap derivatives designated as cash flow hedges cleared through the LCH include $ 250,000 for asset derivatives as of September 30, 2024.
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.
10 unchanged sentences
Income from mortgage banking activities includes the gain recognized for the period presented and associated elements of fair value.
−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, 2024 and December 31, 2023.
+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, 2024 and December 31, 2023.
Asset Derivatives
−Removed: June 30, 2024
+Added: September 30, 2024
December 31, 2023
14 unchanged sentences
Liability Derivatives
−Removed: June 30, 2024
+Added: September 30, 2024
December 31, 2023
8 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, 2024 and December 31, 2023.
−Removed: June 30, 2024
+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, 2024 and December 31, 2023.
Derivatives in Fair Value
Hedging Relationships
−Removed: Location in the Statement
+Added: Location in the Statement of
+Added: September 30, 2024
Carrying Amount of
−Removed: Assets/(Liabilities)
+Added: the Hedged Assets/
+Added: (Liabilities)
Cumulative Amount
13 unchanged sentences
Loans, net of unearned income
−Removed: December 31, 2023
Derivatives in Fair Value
Hedging Relationships
−Removed: Location in the Statement
+Added: Location in the Statement of
+Added: December 31, 2023
Carrying Amount of
−Removed: Assets/(Liabilities)
+Added: the Hedged Assets/
+Added: (Liabilities)
Cumulative Amount
2 unchanged sentences
in the Carrying
−Removed: Amount of the Hedged
−Removed: Assets/(Liabilities)
+Added: Amount of the
+Added: Hedged Assets/
+Added: (Liabilities)
Cumulative Amount of
12 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, 2024 and 2023 are presented as follows:
+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, 2024 and 2023 are presented as follows:
Three Months Ended
Income Statement
+Added: September 30,
+Added: September 30,
Derivatives in hedging relationships
3 unchanged sentences
Fair Value Hedges:
−Removed: rate swap contracts
+Added: Interest rate swap contracts
Interest and fees on loans
9 unchanged sentences
Total derivatives
−Removed: Six Months Ended
+Added: Nine Months Ended
Income Statement
+Added: September 30,
+Added: September 30,
Derivatives in hedging relationships
3 unchanged sentences
Fair Value Hedges:
−Removed: rate swap contracts
+Added: Interest rate swap contracts
Interest and fees on loans
9 unchanged sentences
Total derivatives
−Removed: For the three and six months ended June 30, 2024 and 2023, changes in the fair value of any interest rate swaps attributed to hedge ineffectiveness were recorded, but not significant to United’s Consolidated Statements of Income.
+Added: For the three and nine months ended September 30, 2024 and 2023, changes in the fair value of any interest rate swaps attributed to hedge ineffectiveness were recorded, but no
+Added: t significant to United’s Consolidated Statements
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: When determining the fair v
−Removed: alue 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.
−Removed: When identical assets and liabilities are no t
−Removed: traded in active markets, United looks to market observable data for similar assets and liabilities and classifies such items as Level 2.
−Removed: Nevertheless, certain assets and liabilities are no t actively traded in observable markets and United must use alternative valuation techniques using unobservable inputs to determine a fair value and classifies such items as Level 3.
−Removed: For assets and liabilities that are no t actively traded, the fair value measurement is based primarily upon estimates that require significant judgment.
−Removed: Therefore, the results may no t be realized in an actual sale or immediate settlement of the asset or liability.
+Added: 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 identical assets and liabilities are
+Added: no t traded in active markets, United looks to market observable data for similar assets and liabilities and classifies such items as Level 2.
+Added: Nevertheless, certain assets and liabilities are
+Added: no t actively traded in observable markets and United must use alternative valuation techniques using unobservable inputs to determine a fair value and classifies such items as Level 3.
+Added: For assets and liabilities that are
+Added: no t actively traded, the fair value measurement is based primarily upon estimates that require significant judgment.
+Added: Therefore, the results may
+Added: no t be realized in an actual sale or immediate settlement of the asset or liability.
Additionally, there are inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values.
12 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, 2024, 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, 2024.
+Added: Upon completing its review of the pricing from third party vendors at September 30, 2024, management determined that the prices provided by
+Added: 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, 2024.
Management utilizes a number of factors to determine if a market is inactive, all of which may require a significant level of judgment.
8 unchanged sentences
The unobservable input for Level 3 valuations is the Company’s historical sales prices.
−Removed: For June 30, 2024, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.034 % to 0.336 % with a weighted average increase of 0.150 %.
+Added: For September 30, 2024, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.017 % to 0.419 % with a weighted average increase of 0.168 %.
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.
22 unchanged sentences
The unobservable input for Level 3 valuations is the Company’s historical sales prices.
−Removed: For June 30, 2024, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.034 % to 0.336 % with a weighted average increase of 0.150 %.
+Added: For September 30, 2024, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.017 % to 0.419 % with a weighted average increase of 0.168 %.
For interest rate swap derivatives that are not designated in a hedge relationship within United’s mortgage banking activities, changes in the fair value of the derivatives are recognized in income from mortgage banking activities in the same period as the change in the fair value.
Unrealized gains and losses due to changes in the fair value of other derivative financial instruments not in hedge relationships 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, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy.
−Removed: Fair Value at June 30, 2024 Using
+Added: The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy.
+Added: Fair Value at September 30, 2024 Using
Balance as of
+Added: September 30,
Quoted Prices
17 unchanged sentences
Interest rate swap contracts
−Removed: Forward sales co mm
TBA mortgage-backed securities
2 unchanged sentences
Derivative financial liabilities
−Removed: TBA mortgage-backed securities
Forward sales commitments
9 unchanged sentences
Commercial mortgage-backed securities
−Removed: Fair Value at December 31, 2023 Using
−Removed: Balance as of
−Removed: Quoted Prices
Asset-backed securities
17 unchanged sentences
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.
−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, 2024 and the year ended December 31, 2023.
−Removed: The following tables present additional information about financial assets and liabilities measured at fair value at June 30, 2024 and December 31, 2023 on a recurring basis and for which United has utilized Level 3 inputs to determine fair value.
+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, 2024 and the year ended December 31, 2023.
+Added: The following tables present additional information about financial assets and liabilities measured at fair value at September 30, 2024 and December 31, 2023 on a recurring basis and for which United has utilized Level 3 inputs to determine fair value.
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.
1 unchanged sentence
Derivative Liabilities
−Removed: June 30, 2024
+Added: September 30, 2024
Forward Sales
8 unchanged sentences
December 31, 2023
+Added: Forward Sales
Interest Rate
2 unchanged sentences
Transfers other
−Removed: recognized in
+Added: Total gains during the period recognized in earnings
Balance, end of period
3 unchanged sentences
Three Months Ended
−Removed: June 30, 2024
+Added: September 30, 2024
Three Months Ended
−Removed: June 30, 2023
+Added: September 30, 2023
Income from mortgage banking activities
−Removed: Six Months Ended
−Removed: June 30, 2024
−Removed: Six Months Ended
−Removed: June 30, 2023
+Added: Nine Months Ended
+Added: September 30, 2024
+Added: Nine Months Ended
+Added: September 30, 2023
Income from mortgage banking activities
−Removed: No loans held for sale were past due or on nonaccrual status as of June 30, 2024 and December 31, 2023.
+Added: No loans held for sale were past due or on nonaccrual status as of September 30, 2024 and December 31, 2023.
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, 2024
+Added: September 30, 2024
December 31, 2023
49 unchanged sentences
As a result of this consolidation decision, United impaired the trade names intangibles at George Mason and Crescent to zero at December 31, 2023.
−Removed: No fair value measurement of intangible assets was made during the first six months of 2024 and 2023.
+Added: No fair value measurement of intangible assets was made during the first nine months of 2024 and 2023.
Mortgage Servicing Rights (“MSRs”):
−Removed: A mortgage servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing.
−Removed: The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale (“mortgage servicing rights”) at fair value.
+Added: A MSR asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing.
+Added: The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale at fair value.
For subsequent measurement purposes, the Company measures servicing assets and liabilities using the amortization method on a quarterly basis.
3 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, 2024 and December 31, 2023, 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, 2024 and 2023.
+Added: During the third quarter of 2024, United sold its remaining balance of MSRs.
+Added: For the unobservable inputs used in the valuation of MSRs at December 31, 2023, refer to Note 8 of these Notes to Consolidated Financial Statements.
+Added: The Company did no t record any temporary impairment of MSRs in the third quarter and first nine months ended September 30, 2024 and 2023.
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, 2024
+Added: Fair Value at September 30, 2024
Balance as of
−Removed: June 30, 2024
+Added: September 30, 2024
Quoted Prices
31 unchanged sentences
Quoted Prices
−Removed: June 30, 2024
+Added: September 30, 2024
Cash and cash equivalents
5 unchanged sentences
Derivative financial assets
−Removed: Mortgage servicing rights
Short-term borrowings
22 unchanged sentences
Unless otherwise determined by the Board, the Compensation Committee of the Board (the “Committee”) shall administer the 2020 LTI Plan.
−Removed: The maximum number of options and stock appreciation rights, in the aggregate, which may be awarded to any individual key employee during any calendar year is 100,000 .
+Added: maximum number of options and stock appreciation rights, in the aggregate, which may be awarded to any individual key employee during any calendar year is 100,000 .
The maximum number of options and stock appreciation rights, in the aggregate, which may be awarded to any non-employee
1 unchanged sentence
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
−Removed: 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
−Removed: no awards will vest sooner than 1/3 per year over the first three
+Added: 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 $ 3,004 and $ 6,270 related to the nonvested awards under United’s Long-Term Incentive Plans was incurred for the second quarter and first six months of 2024, respectively, as compared to the compensation expense of $ 3,295 and $ 6,008 related to the nonvested awards under United’s Long-Term Incentive Plans incurred for the second quarter and first six months of 2023, respectively.
+Added: Compensation expense of $ 3,118 and $ 9,388 related to the nonvested awards under United’s Long-Term Incentive Plans was incurred for the third quarter and first nine months of 2024, respectively, as compared to the compensation expense of $ 3,148 and $ 9,156 related to the nonvested awards under United’s Long-Term Incentive Plans incurred for the third quarter and first nine months of 2023, 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, 2024, and the changes during the first six months of 2024 are presented below:
−Removed: Six Months Ended June 30, 2024
+Added: A summary of activity under United’s stock option plans as of September 30, 2024, and the changes during the first nine months of 2024 are presented below:
+Added: Nine Months Ended September 30, 2024
Weighted Average
1 unchanged sentence
Forfeited or expired
−Removed: Outstanding at June 30, 2024
−Removed: Exercisable at June 30, 2024
−Removed: The following table summarizes the status of United’s nonvested stock option awards during the first six months of 2024:
+Added: Outstanding at September 30, 2024
+Added: Exercisable at September 30, 2024
+Added: The following table summarizes the status of United’s nonvested stock option awards during the first nine months of 2024:
Weighted-Average
2 unchanged sentences
Forfeited or expired
−Removed: Nonvested at June 30, 2024
−Removed: During the six months ended June 30, 2024 and 2023, 31,138 and 58,608 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, 2024 and 2023 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, 2024 and 2023 was $ 254 and $ 763 respectively.
−Removed: As of June 30, 2024, there was no unrecognized compensation cost related to nonvested stock option awards.
+Added: Nonvested at September 30, 2024
+Added: During the nine months ended September 30, 2024 and 2023, 56,787 and 59,123 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, 2024 and 2023 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, 2024 and 2023 was $ 524 and $ 767 respectively.
+Added: As of September 30, 2024, there was no unrecognized compensation cost related to nonvested stock option awards.
Restricted Stock
1 unchanged sentence
Restricted shares granted to participants will vest no sooner than 1/3 per year over the first three anniversaries of the award.
−Removed: Unless determined by the Committee or the Board and provided in the award agreement, recipients of restricted shares do
−Removed: not pay any consideration to United for the shares, have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested.
+Added: Unless determined by the Committee or the Board and provided in the award agreement, recipients of restricted shares do not pay any consideration to United for the shares, have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested.
Presently, these nonvested participating securities have an immaterial impact on diluted earnings per share.
−Removed: As of June 30, 2024, the total unrecognized compensation cost related to nonvested restricted stock awards was $ 9,570 with a weighted-average expense recognition period of 1.4 years.
−Removed: The following summarizes the changes to United’s nonvested restricted common shares for the period ended June 30, 2024:
+Added: As of September 30, 2024, the total unrecognized compensation cost related to nonvested restricted stock awards was $ 8,173 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, 2024:
Weighted-Average
1 unchanged sentence
Nonvested at January 1, 2024
−Removed: Nonvested at June 30, 2024
+Added: Nonvested at September 30, 2024
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 2024:
+Added: The following table summarizes the status of United’s nonvested RSUs during the first nine months of 2024:
Weighted-Average
2 unchanged sentences
Forfeited or expired
−Removed: Nonvested at June 30, 2024
−Removed: As of June 30, 2024, the total unrecognized compensation cost related to nonvested restricted stock units was $ 11,709 with a weighted-average expense recognition period of 1.7 years.
+Added: Nonvested at September 30, 2024
+Added: As of September 30, 2024, the total unrecognized compensation cost related to nonvested restricted stock units was $ 10,105 with a weighted-average expense recognition period of 1.5 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 2024 and 2023.
+Added: No discretionary contributions were made during the first nine months of 2024 and 2023.
Included in accumulated other comprehensive income at December 31, 2023 are unrecognized actuarial losses of $ 32,548 ($ 20,817 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, 2024 and 2023 included the following components:
+Added: Net periodic pension cost for the three and nine months ended September 30, 2024 and 2023 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, 2024 and 2023, the total amount of accrued interest related to uncertain tax positions was $ 800 and $ 788 , respectively.
+Added: As of September 30, 2024 and 2023, the total amount of accrued interest related to uncertain tax positions was $ 827 and $ 815 , 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, 2020, 2021 and 2022 and certain State Taxing authorities for the years ended December 31, 2020 through 2022.
−Removed: United’s effective tax rate was 16.36 % and 18.02 % for the second quarter and first six months of 2024, respectively, and 20.23 % and 20.07 % for the second quarter and first six months of 2023.
−Removed: United’s effective tax rate was 19.78 % for the first quarter of 2024.
−Removed: The lower effective tax rates in the second quarter and first six months of 2024 were primarily due to the impact of discrete tax benefits recognized in the second quarter of 2024.
+Added: United’s effective tax rate was 20.56 % and 18.90 % for the third quarter and first nine months of 2024, respectively, and 20.49 % and 20.21 % for the third quarter and first nine months of 2023.
+Added: United’s effective tax rate was 16.36 % for the second quarter of 2024.
+Added: The lower effective tax rates in the second quarter and first nine months of 2024 were primarily due to the impact of discrete tax benefits recognized in the second quarter of 2024.
COMPREHENSIVE INCOME
−Removed: The components of total comprehensive income for the three and six months ended June 30, 2024 and 2023 are as follows:
+Added: The components of total comprehensive income for the three and nine months ended September 30, 2024 and 2023 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 the period
+Added: Change in net unrealized gain(loss) on AFS securities arising during the period
Related income tax effect
2 unchanged sentences
Net effect of AFS securities on other comprehensive income
−Removed: Three Months Ended
−Removed: Six Months Ended
Cash flow hedge derivatives:
−Removed: Unrealized gain on cash flow hedge before reclassification to interest expense
+Added: Unrealized (loss) gain on cash flow hedge before reclassification to interest expense
Related income tax effect
8 unchanged sentences
Total Comprehensive Income
−Removed: The components of accumulated other comprehensive income for the six months
−Removed: ended June 30, 2024 are as follows:
+Added: The components of accumulated other comprehensive income for the nine months ended September 30, 2024 are as follows:
Changes in Accumulated Other Comprehensive Income (AOCI) by Component (a)
−Removed: For the Six Months Ended June 30, 2024
+Added: For the Nine Months Ended September 30, 2024
Balance at January 1, 2024
1 unchanged sentence
Amounts reclassified from accumulated other comprehensive income
−Removed: Net current-period other comprehensive (loss)
−Removed: Balance at June 30, 2024
+Added: Net current-period other comprehensive (loss) income, net of tax
+Added: Balance at September 30, 2024
All amounts are net-of-tax.
+Added: United has adopted the portfolio approach for purposes of releasing residual tax effects within AOCI.
Reclassifications out of Accumulated Other Comprehensive Income (AOCI)
−Removed: For the Six Months Ended June 30, 2024
+Added: For the Nine Months Ended September 30, 2024
Details about AOCI Components
21 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 st ock
−Removed: outstanding of 1,025,677 and 1,321,544 for the three months and six months ended June 30, 2024, respectively, were excluded from the earnings per diluted common share calculation as compared to 1,548,913 and 1,078,040 for the three months and six months ended June 30, 2023, respectively.
+Added: Antidilutive stock options and restricted stock outstanding of 754,682 and 1,318,294 for the three months and nine months ended September 30, 2024, respectively, were excluded from the earnings per diluted common share calculation as compared to 1,413,862 and 1,411,484 for the three months and nine months ended September 30, 2023, respectively.
VARIABLE INTEREST ENTITIES
−Removed: Variable interest entities (“VIEs”) are entities that either have a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest (i.e., ability to make significant decisions, through voting rights, right to receive the expected residual returns of the entity, and obligation to absorb the expected losses of the entity).
+Added: Variable interest entities (“VIEs”) are entities that either have a total equity investment that is insufficient to permit
+Added: the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest (i.e., ability to make significant decisions, through voting rights, right to receive the expected residual returns of the entity, and obligation to absorb the expected losses of the entity).
VIEs can be structured as corporations, trusts, partnerships, or other legal entities.
10 unchanged sentences
The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE.
−Removed: At June 30, 2024 and December 31, 2023, United’s investment (maximum exposure to loss) in these trusts were $ 12,001 and $ 11,751 , respectively.
+Added: At September 30, 2024 and December 31, 2023, United’s investment (maximum exposure to loss) in these trusts were $ 12,126 and $ 11,751 , respectively.
Information related to United’s statutory trusts is presented in the table below:
88 unchanged sentences
however, these partnerships are not consolidated as United is not deemed to be the primary beneficiary.
−Removed: At June 30, 2024 and December 31, 2023, United’s investment (maximum exposure to loss) in these low income housing and community development partnerships were $ 93,829 and $ 87,554 , respectively, while related unfunded commitments were $ 100,214 and $ 63,539 , respectively.
−Removed: As of June 30, 2024, United expects to recover its remaining investments through the use of the tax credits that are generated by the investments.
+Added: At September 30, 2024 and December 31, 2023, United’s investment (maximum exposure to loss) in these low income housing and community development partnerships were $ 97,830 and $ 87,554 , respectively, while related unfunded commitments were $ 87,695 and $ 63,539 , respectively.
+Added: As of September 30, 2024, United expects to recover its remaining investments through the use of the tax credits that are generated by the investments.
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.