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Item 1. Financial Statements

2025-05-09 compared with 2024-11-08 · 473 added, 513 removed, 1360 unchanged (42% of the section changed)

FINANCIAL STATEMENTS (UNAUDITED)

The September 30, 2024 and December 31, 2023, consolidated balance sheets of United Bankshares, Inc.

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.

The March 31, 2025 and December 31, 2024, consolidated balance sheets of United Bankshares, Inc.

and Subsidiaries (“United” or the “Company”), consolidated statements of income and comprehensive income for the three months ended March 31, 2025 and 2024, the related consolidated statement of changes in shareholders’ equity for the three months ended March 31, 2025 and 2024, the related condensed consolidated statements of cash flows for the three months ended March 31, 2025 and 2024, and the notes to consolidated financial statements appear on the following pages.

CONSOLIDATED BALANCE SHEETS

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Total cash and cash equivalents

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)

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)

Securities available for sale at estimated fair value (amortized cost-$ 3,282,372 at March 31, 2025 and $ 3,282,690 at December 31, 2024, allowance for credit losses of $ 0 at March 31, 2025 and December 31, 2024)

Securities held to maturity, net of allowance for credit losses of $ 18 at March 31, 2025 and December 31, 2024 (estimated fair value-$ 1,020 at March 31, 2025 and December 31, 2024)

Equity securities at estimated fair value

8 unchanged sentences

Operating lease right-of-use

Mortgage servicing rights

Bank-owned life insurance (“BOLI”)

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issued- 150,830,203

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

and 142,694,816

at March 31, 2025 and December 31, 2024, respectively, including 7,939,055 and 7,348,188 shares in treasury at March 31, 2025 and December 31, 2024, respectively

Retained earnings

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Three Months Ended

Nine Months Ended

Interest income

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Mortgage loan servicing income

Net investment securities losses

Net investment securities gains (losses)

Total other income

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Other real estate owned (“OREO”) expense

Net (gains) losses on the sales of OREO properties

Net gains on the sales of OREO properties

Equipment expense

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Three Months Ended

Nine Months Ended

Earnings per common share:

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Three Months Ended

Nine Months Ended

Change in net unrealized gain (loss) on available-for-sale

Other comprehensive income (loss) on available-for-sale

(“AFS”) securities, net of tax

Change in net unrealized (loss) gain on cash flow hedge, net of tax

Change in pension plan assets, net of tax

Comprehensive income, net of tax

Other comprehensive (loss) income on cash flow hedge, net of tax

Other comprehensive income on defined benefit pension plan, net of tax

Total comprehensive income, net of tax

See notes to consolidated unaudited financial statements

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

UNITED BANKSHARES, INC.

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(Dollars in thousands, except per share data)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Comprehensive

Income (Loss)

Shareholders’

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Comprehensive income:

Other comprehensive loss, net of tax

Other comprehensive income, net of tax

Total comprehensive income, net of tax

Stock based compensation expense

Acquisition of Piedmont Bancorp, Inc.

Stock grant forfeiture ( 8,543 shares)

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Balance at March 31, 2025

Comprehensive income:

Other comprehensive loss, net of tax

Total comprehensive income, net of tax

Stock based compensation expense

Purchase of treasury stock ( 65 shares)

Cash dividends ($ 0.37 per share)

Stock grant forfeiture ( 2,053 shares)

Net issuance of common stock under stock-based compensation plans ( 5,147 shares)

Balance at June 30, 2024

Comprehensive income:

Other comprehensive gain, net of tax

Total comprehensive income, net of tax

Stock based compensation expense

Purchase of treasury stock ( 226 shares)

Cash dividends ($ 0.37 per share)

Stock grant forfeiture ( 357 shares)

Net issuance of common stock under stock-based compensation plans ( 25,649 shares)

Balance at September 30, 2024

See notes to consolidated unaudited financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY

UNITED BANKSHARES, INC.

AND SUBSIDIARIES

(Dollars in thousands, except per share data)

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Comprehensive

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Comprehensive income:

Other comprehensive income, net of tax

Total comprehensive income, net of tax

Stock based compensation expense

Stock grant forfeiture ( 1,506 shares)

Purchase of treasury stock ( 33,551 shares)

Cash dividends ($ 0.36 per share)

Net issuance of common stock under stock- based

compensation plans ( 226,486 shares)

Balance at March 31, 2023

Comprehensive income:

Other comprehensive loss, net of tax

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Stock based compensation expense

Purchase of treasury stock ( 60 shares)

Cash dividends ($ 0.36 per share)

Stock grant forfeiture ( 5,215 shares)

Net issuance of common stock under stock-based compensation plans ( 2,812 shares)

Balance at June 30, 2023

Comprehensive income:

Other comprehensive loss, net of tax

Total comprehensive income, net of tax

Stock based compensation expense

Purchase of treasury stock ( 29,896 shares)

Cash dividends ($ 0.37 per share)

Stock grant forfeiture ( 2,161 shares)

Net issuance of common stock under stock-based compensation plans ( 278,723 shares)

Balance at September 30, 2023

Balance at March 31, 2024

See notes to consolidated unaudited financial statements

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(Dollars in thousands)

Nine Months Ended

Three Months Ended

NET CASH PROVIDED BY OPERATING ACTIVITIES

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Purchases of other investment securities

Redemption of bank-owned life insurance policies

Purchases of bank premises and equipment

Proceeds from sales of bank premises and equipment

Proceeds from sales of mortgage servicing rights

Proceeds from termination of bank-owned life insurance policies

Acquisition of Piedmont Bancorp, Inc., net of cash paid

Proceeds from the sales of OREO properties

Net change in loans

NET CASH PROVIDED BY INVESTING ACTIVITIES

Net change in loans and leases

NET CASH USED IN INVESTING ACTIVITIES

FINANCING ACTIVITIES

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Proceeds from issuance of long-term Federal Home Loan Bank borrowings

Redemption of subordinated debt

Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings

NET CASH USED IN FINANCING ACTIVITIES

NET CASH PROVIDED BY FINANCING ACTIVITIES

Increase in cash and cash equivalents

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assets obtained in the exchange for lease liabilities

Acquisition of Piedmont Bancorp, Inc.:

Assets acquired, net of cash

Liabilities assumed

See notes to consolidated unaudited financial statements

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Actual results could differ from those estimates.

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 financial statements presented as of March 31, 2025 and 2024 and for the three-month periods then ended have not been audited.

The consolidated balance sheet as of December 31, 2024 has been extracted from the audited financial statements included in United’s 2024 Annual Report to Shareholders.

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Operating and Reporting Segments

As of September 30, 2024, United’s business activities are confined to one operating segment, United Bank, and one reportable segment, community banking.

As of March 31, 2025, 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.

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United’s chief operating decision maker regularly reviews the operating results of United Bank in order to assess performance and make decisions about resource allocation.

At December 31, 2023, United had three operating segments:

United Bank, George Mason Mortgage, LLC (“George Mason”) and Crescent Mortgage Company (“Crescent”), and two reporting segments:

community banking and mortgage banking.

However, during the first quarter of 2024, United consolidated the mortgage origination and sales business of George Mason and Crescent with that of United Bank.

United previously exited the third-party origination (“TPO”) business during the fourth quarter of 2023.

New Accounting Standards

In January 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-01,

“Income Statement – Reporting, Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40).”

revised the effective date of ASU 2024-03

to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

Entities within the ASU’s scope are permitted to early adopt.

In November 2024, the FASB issued Accounting Standards Update ASU 2024-04,

“Induced Conversions of Convertible Debt Instruments.” ASU 2024-04

provides additional guidance on whether induced conversion or extinguishment accounting should be applied to certain settlements of convertible debt instruments that do not occur in accordance with the instruments’ preexisting terms.

requires entities to apply a preexisting contract approach.

for induced conversion accounting under this approach, the inducement offer is required to preserve the form of consideration and result in an amount of consideration that is not less than that issuable pursuant to the preexisting conversion privileges.

clarifies how entities should assess the form and amount of consideration when applying this approach.

is effective for public business entities for annual periods beginning after December 15, 2025, with early adoption permitted, and can be adopted either on a prospective or retrospective basis.

However, the effective date was updated by ASU 2025-01.

The adoption of ASU 2024-04

is not expected to have an impact on the Company’s financial condition or results of operations.

In November 2024, the FASB issued Accounting Standards Update ASU 2024-03,

“Disaggregation of Income Statement Expenses.” ASU 2024-03

requires disaggregated disclosure of income statement expenses for public business entities.

adds ASC 220-40

to require a footnote disclosure about specific expenses by requiring public business entities to disaggregate, in a tabular presentation, each relevant expense caption on the face of the income statement that includes any of the following natural expenses:

purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion, and amortization recognized as part of oil-

and gas-producing

activities or other types of depletion expenses.

Certain other expenses and gains or losses that must be disclosed under existing U.S.

GAAP, and that are recorded in a relevant expense caption, must be presented in the same tabular disclosure.

does not change or remove existing expense disclosure requirements;

however, it may affect where that information appears in the footnote to the financial statements.

is effective for public business entities for annual periods beginning after December 15, 2026.

Entities are permitted to early adopt the standard and apply retrospectively for annual financial statements that have not yet been issued or made available for issuance.

The adoption of ASU 2024-03

is not expected to have an impact on the Company’s financial condition or results of operations but could change certain disclosures in United’s SEC filings.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09,

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is effective for public business entities for annual periods beginning after December 15, 2024.

For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025.

Entities are permitted to early adopt the standard for annual financial statements that have not yet been issued or made available for issuance.

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The adoption of ASU 2023-07

is not expected to have an impact on the Company’s financial condition or results of operations but could change certain disclosures in United’s SEC filings starting with its 2024 Annual Report on Form 10-K.

did not have an impact on the Company’s financial condition or results of operations but changed certain disclosures in United’s SEC filings starting with the 2024 Annual Report on Form 10-K.

In October 2023, the FASB issued ASU 2023-06,

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The adoption of ASU 2023-06

is not expected to have an impact on the Company’s financial condition or results of operations but could change certain disclosures in United’s SEC filings.

did not have an impact on the Company’s financial condition or results of operations.

In August 2023, the FASB issued ASU 2023-05,

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The adoption of ASU 2023-05

is not expected to have an impact on the Company’s financial condition or results of operations.

In July 2023, the FASB issued ASU No.

“Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718):

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X:

Income or Loss Applicable to Common Stock.” ASU 2023-03

amends the ASC for SEC updates pursuant to SEC Staff Accounting Bulletin No.

SEC Staff Announcement at the March 24, 2022 Emerging Issues Task Force (“EITF”) Meeting;

and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X:

Income or Loss Applicable to Common Stock.

These updates were immediately effective and did not have a significant impact on the Company’s financial statements.

did not have an impact on the Company’s financial condition or results of operations.

In March 2023, the FASB issued Accounting ASU 2023-02,

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Accordingly, ASU 2022-06

defers the expiration date of ASU 848 to December 31, 2024.

defers the expiration date of ASU 848

to December 31, 2024.

United implemented a comprehensive project plan to execute the transition of its LIBOR-based financial instruments to alternative reference rates.

United utilized the Secured Overnight Financing Rate (“SOFR”) and Prime as the preferred alternatives to LIBOR.

In June 2022, the FASB issued ASU 2022-03,

“Fair Value Measurement (Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03

clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value.

also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires certain new disclosures for equity securities subject to contractual sale restrictions.

was effective for United on January 1, 2024.

The adoption of ASU 2022-03

did not have a material impact on the Company’s financial condition or results of operations.

MERGERS AND ACQUISITIONS

On May 9, 2024, United entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Piedmont Bancorp, Inc., a Georgia corporation (“Piedmont”).

The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, Piedmont will merge with and into United (the “Merger”), with United as the surviving corporation in the Merger.

Immediately following the Merger, Piedmont’s wholly-owned subsidiary, The Piedmont Bank, a state bank chartered under the laws of the State of Georgia, will merge with and into United’s wholly-owned subsidiary, United Bank, a state bank chartered under the laws of the Commonwealth of Virginia (the “Bank Merger”), with United Bank as the surviving bank in the Bank Merger.

The Merger Agreement was approved and adopted by the board of directors of each of United and Piedmont.

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.

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

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.

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.

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.

On January 10, 2025 (“Acquisition Date”), United consummated its acquisition of Piedmont Bancorp, Inc.

(“Piedmont”).

Piedmont was merged with and into United (the “Merger”), pursuant to the terms of the Agreement and Plan of Merger, dated May 9, 2024, by and between United and Piedmont (the “Agreement”).

The Merger was accounted for under the acquisition method of accounting.

Piedmont was the holding company for The Piedmont Bank, a Georgia state-chartered bank, with sixteen locations in the State of Georgia.

Under the terms of the Agreement, each outstanding share of common stock of Piedmont was converted into the right to receive 0.300 shares of United common stock, par value $ 2.50 per share

(the “Exchange Ratio”).

Also pursuant to the Agreement, as of the effective time of the Merger, each option to purchase shares of Piedmont Common Stock (each, a “Piedmont Stock Option”) that was outstanding under the Piedmont Bancorp, Inc.

2009 Stock Option Plan (the “Piedmont Stock Plan”) immediately prior to the effective time of the Merger, was, to the extent not vested, became fully vested and exercisable and was canceled in consideration for the right to receive a lump sum cash payment with respect thereto equal to the product of:

(i) the excess, if any, of the product of (A) 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 date of the Merger (the “Average United Closing Price”) multiplied by (B) the Exchange Ratio, over the applicable exercise price of such Piedmont Stock Option;

and (ii) the number of shares of Piedmont Common Stock subject to such Piedmont Stock Option, less any required withholding taxes.

Also pursuant to the Agreement, as of the effective time of the Merger, each warrant to purchase shares of Piedmont Common Stock (each, a “Piedmont Stock Warrant”) that was outstanding under the Piedmont Stock Plan or individual award agreement immediately prior to the Effective Time, was, to the extent not vested, became fully vested and exercisable and canceled, and in consideration therefor, received a lump sum cash payment with respect thereto equal to the product of:

(A) the excess, if any, of the product of (x) the Average United Closing Price multiplied by (y) the Exchange Ratio, over the applicable exercise price of such Piedmont Stock Warrant;

and (B) the number of shares of Piedmont Common Stock subject to such Piedmont Stock Warrant, less any required withholding taxes.

In addition, at the effective time of the Merger, each restricted stock grant, restricted stock unit grant and any other award in respect of a share of Piedmont Common Stock subject to vesting, repurchase or other lapse restriction under a Piedmont Stock Plan that was outstanding immediately prior to the Effective Time other than a Piedmont Option or a Piedmont Stock Warrant (each, a “Piedmont Stock Award”) became fully vested, cancelled and converted automatically into the right to receive the Merger Consideration (with any fractional share being entitled to receive cash in lieu thereof) in respect of each share of Piedmont Common Stock underlying such Piedmont Stock Award, less any required withholding taxes.

Immediately following the Merger, The Piedmont Bank, a wholly-owned subsidiary of Piedmont, merged with and into United Bank, a wholly-owned subsidiary of United (the “Bank Merger”) pursuant to an Agreement and Plan of Merger dated May 9, 2024 (the “Bank Plan of Merger”).

United Bank survived the Bank Merger and continues to exist as a Virginia banking corporation.

The Piedmont Merger was accounted for under the acquisition method of accounting.

The results of operations of Piedmont are included in the consolidated results of operations from the Acquisition Date.

At the Acquisition Date, Piedmont had $ 2,356,883 in total assets, $ 2,079,933 in loans and leases, net of unearned income and $ 2,105,402 in deposits.

For the first quarter of 2025, United recorded acquisition-related costs for the Piedmont merger of $ 30,041 , including a provision for credit losses of $ 18,726 for purchased non-credit

deteriorated (“non-PCD”)

The aggregate purchase price was $ 280,967 , including common stock valued at $ 280,946 and cash paid for fractional shares of $ 21 .

The number of shares issued in the transaction was 7,860,831 , which were valued based on the closing market price of $ 35.74 for United’s common shares on January 10, 2025.

The purchase price has been allocated to the identifiable tangible and intangible assets resulting in preliminary additions to goodwill, and core deposit intangibles of $ 134,715 and $ 32,764 ,

respectively.

The goodwill recognized results from the expected synergies and potential earnings from the combination of United and Piedmont.

None of the goodwill from the Piedmont acquisition is expected to be deductible for tax purposes.

The core deposit intangible is expected to be amortized on an accelerated basis over ten years.

used an independent third party to help determine the fair values of the assets and liabilities acquired from Piedmont.

As a result of the merger, United recorded preliminary fair value discounts of $ 64,934 on the loans and leases acquired, $ 24,977

on available-for-sale

investment securities acquired, and $ 3,492

on land acquired, respectively, and premiums of $ 1,469

on buildings acquired and $ 408 on interest-bearing time deposits, respectively.

United also recorded an allowance for loan and lease losses of $ 36,244

on the loans acquired split between $ 17,518

for purchased credit deteriorated (“PCD”) loans which is part of the acquisition date fair value, and $ 18,726

loans recorded to the provision for credit losses.

In addition, United also recorded a reserve for lending-related commitments of $ 4,058

on the loan commitments acquired with an offset within other expense.

The discounts and premium amounts, except for discount on the land 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.

At March 31, 2025, the premiums on the buildings and interest-bearing time deposits each had an average estimated remaining life of 31.3

years and 1.8 years, respectively.

Portfolio loans acquired from Piedmont 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.

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.

For PCD loans and leases, an initial allowance is determined based on the same methodology as other portfolio loans and leases.

This initial allowance for loan and lease 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.

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

at Acquisition Date.

This discount will be recognized through interest income on a level-yield method over the life of the loans which is estimated at March 31, 2025

to be a weighted-average of 6.3

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 at March 31, 2025

is estimated to be a weighted-average of 5.6

The total fair value mark on the non-PCD

loans at the Acquisition Date was $ 44,634 .

At the Acquisition Date, an initial allowance for expected loan and lease losses of $ 18,726

was recorded with a corresponding charge to the provision for credit losses in the Consolidated Statements of Income.

Subsequent changes in the allowance for credit losses related to PCD and non-PCD

loans and leases are recognized in the provision for credit

The following table provides a reconciliation of the difference between the purchase price and the par value of portfolio PCD loans and leases acquired from Piedmont as of the Acquisition Date:

Purchase price of PCD loans and leases at acquisition

Allowance for credit losses at acquisition

discount at acquisition

Par value (UPB) of acquired PCD loans and leases at acquisition

The consideration paid for Piedmont’s common equity and the preliminary amounts of acquired identifiable assets and liabilities assumed as of the Piedmont Acquisition Date were as follows:

Purchase price:

Value of common shares issued (7,860,831 shares)

Cash for fractional shares

Total purchase price

Identifiable assets:

Cash and cash equivalents

Investment securities

Net loans and leases

Premises and equipment

Operating lease right-of-use

Core deposit intangible

Total identifiable assets

Identifiable liabilities:

Long-term borrowings

Operating lease liabilities

Other liabilities

Total identifiable liabilities

Preliminary fair value of net assets acquired including identifiable intangible assets

Preliminary resulting goodwill

The operating results of United include operating results of acquired assets and assumed liabilities subsequent to the Acquisition Date.

The operations of United’s Georgia geographic area, which comprises the acquired operations of Piedmont provided $ 30,154

in total revenues (net interest income plus other income), and $ 19,424

in net income

, excluding non-allocated items,

since the Acquisition Date.

These amounts are included in United’s consolidated financial statements as of March 31, 2025 and for the first three months of 2025.

Piedmont’s results of operations prior to the Acquisition Date are not included in United’s consolidated results of operations.

The following table presents certain unaudited pro forma information for the results of operations for the three months ended March 31, 2025 and 2024, as if the Piedmont merger had occurred on January 1, 2025 and 2024, respectively.

These results combine the historical results of Piedmont 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.

In particular, no adjustments have been made to eliminate the amount of Piedmont’s provision for credit losses for 2025 and 2024 that may not have been necessary had the acquired loans been recorded at fair value as of the beginning of 2025 and 2024.

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.

Three Months Ended

Total Revenues (1)

Represents net interest income plus other income

INVESTMENT SECURITIES

Securities Available for Sale

Securities held for indefinite periods of time are classified as available for sale and carried at estimated fair value.

The amortized cost, estimated fair values, and allowance for credit losses of securities available for sale are summarized as follows.

September 30, 2024

The amortized cost and estimated fair values of securities available for sale are summarized as follows.

March 31, 2025

Treasury securities and obligations of U.S.

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debt securities.

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.”

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.

The table above excludes accrued interest receivable of $ 14,300 and $ 14,776 at March 31, 2025 and December 31, 2024, respectively, that is recorded in “Accrued interest receivable.”

The following is a summary of securities available for sale which were in an unrealized loss position at March 31, 2025 and December 31, 2024.

Less than 12 months

12 months or longer

September 30, 2024

March 31, 2025

Treasury securities and obligations of U.S.

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Three Months Ended

Nine Months Ended

Proceeds from sales, maturities and calls

Proceeds from maturities, sales and calls

Gross realized gains

Gross realized losses

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.

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.

At March 31, 2025, gross unrealized losses on available for sale securities were $ 286,595 on 948 securities of a total portfolio of 1,096 available for sale securities.

Securities with the most significant gross unrealized losses at March 31, 2025 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.

Generally, the significant amount of gross unrealized losses on available for sale securities at September 30, 2024 was the result of rising interest rates.

Generally, the significant amount of gross unrealized losses on available for sale securities at March 31, 2025 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.

The total amortized cost of available for sale state and political subdivision securities was $ 576,768 at September 30, 2024.

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.

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.

The total amortized cost of available for sale state and political subdivision securities was $ 584,978 at March 31, 2025.

As of March 31, 2025, 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.

The majority of the portfolio was rated AA or higher, and no securities within the portfolio were rated below investment grade as of March 31, 2025.

In addition to monitoring the credit ratings of these securities, management also evaluates the financial performance of the underlying issuers on an ongoing basis.

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.

Based upon management’s analysis and judgment, it was determined that none of the state and political subdivision securities had credit losses at March 31, 2025.

Mortgage-backed securities

7 unchanged sentences

United had a net unrealized loss of $ 179,226 on mortgage-backed

securities at September 30, 2024.

securities at March 31, 2025.

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.

The total amortized cost of available for sale agency mortgage-backed securities was $ 1,711,858 at September 30, 2024.

The total amortized cost of available for sale agency mortgage-backed securities was $ 1,722,349 at March 31, 2025.

Of the $ 1,722,349 amount, $ 457,455 was related to agency commercial mortgage-backed securities and $ 1,264,894 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.

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.

Based upon management’s analysis and judgment, it was determined that none of the agency mortgage-backed securities had credit losses at March 31, 2025.

United’s non-agency

1 unchanged sentence

The total amortized cost of available for sale non-agency

residential mortgage-backed securities was $ 89,253 at September 30, 2024.

residential mortgage-backed securities was $ 87,215 at March 31, 2025.

Of the $ 87,215 , 100 % was rated AAA.

Based upon management’s analysis and judgment, it was determined that none of the non-agency

residential mortgage-backed securities had credit losses at September 30, 2024.

residential mortgage-backed securities had credit losses at March 31, 2025.

Asset-backed securities

As of September 30, 2024, United’s asset-backed securities portfolio had a total amortized cost balance of $ 553,808 .

100 % of the portfolio was investment grade rated as of September 30, 2024.

As of March 31, 2025, United’s asset-backed securities portfolio had a total amortized cost balance of $ 347,462 .

100 % of the portfolio was investment grade rated as of March 31, 2025.

Approximately 46 % 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 54 % of the portfolio relates to collateralized loan obligation securities that are all AAA rated.

Upon reviewing this portfolio as of September 30, 2024, it was determined that none of the asset-backed securities had credit losses.

Upon reviewing this portfolio as of March 31, 2025, 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.

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.

The amortized cost of available for sale single issue trust preferred securities as of March 31, 2025 consisted of $ 7,483 in investment grade bonds and $ 5,818 in unrated bonds.

Management reviews each issuer’s current and projected earnings trends, asset quality, capitalization levels, and other key factors.

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.

Upon completing the review for the first quarter of 2025, it was determined that none of the single issue trust preferred securities had credit losses.

Other corporate securities

As of September 30, 2024, United’s other corporate securities portfolio had a total amortized cost balance of $ 281,901 .

As of March 31, 2025, United’s other corporate securities portfolio had a total amortized cost balance of $ 279,887 .

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.

Based upon management’s analysis and judgment, it was determined that none of the other corporate securities had credit losses at September 30, 2024.

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.

Based upon management’s analysis and judgment, it was determined that none of the other corporate securities had credit losses at March 31, 2025.

The amortized cost and estimated fair value of securities available for sale at March 31, 2025 and December 31, 2024 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.

September 30, 2024

March 31, 2025

December 31, 2024

4 unchanged sentences

Equity securities at fair value

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.

The fair value of United’s equity securities was $ 9,082 at September 30, 2024 and $ 8,945 at December 31, 2023.

Equity securities consist mainly of equity securities of financial institutions, 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.

The fair value of United’s equity securities was $ 21,514 at March 31, 2025 and $ 21,058 at December 31, 2024.

Three Months Ended

Nine Months Ended

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

2 unchanged sentences

Other investment securities

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.

United determined that there was no individual security that experienced an adverse event during the third quarter.

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.

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.

During the first quarter of 2025, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the first quarter of 2025 had a significant adverse effect on the recorded value of any of its cost method securities.

United determined that there was no individual security that experienced an adverse event during the first quarter.

There were no other events or changes in circumstances during the first quarter which would have an adverse effect on the recorded fair value of its cost method securities.

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 $ 2,008,860 and $ 2,038,864 at March 31, 2025 and December 31, 2024, respectively.

LOANS AND LEASES

Major classes of loans and leases are as follows:

September 30, 2024

March 31, 2025

December 31, 2024

6 unchanged sentences

Construction & land development

September 30, 2024

December 31, 2023

Other consumer

1 unchanged sentence

Total gross loans

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.

The table above does not include loans held for sale of $ 28,642 and $ 44,360 at March 31, 2025 and December 31, 2024, 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.

The aggregate dollar amount of these loans was $ 22,876 and $ 68,460 at September 30, 2024 and December 31, 2023, respectively.

The aggregate dollar amount of these loans was $ 22,486 and $ 22,702 at March 31, 2025 and December 31, 2024, respectively.

CREDIT QUALITY

11 unchanged sentences

Age Analysis of Past Due Loans and Leases

As of September 30, 2024

As of March 31, 2025

Commercial real estate:

15 unchanged sentences

The following table sets forth United’s nonaccrual loans and leases, segregated by class of loans and leases:

At September 30, 2024

At March 31, 2025

At December 31, 2024

2 unchanged sentences

Credit Losses

With No Related

Allowance for

Credit Losses

Commercial Real Estate:

4 unchanged sentences

Other consumer

Interest income recognized on nonaccrual loans was insignificant during the three and nine months ended September 30, 2024 and 2023.

Interest income recognized on nonaccrual loans was insignificant during the three months ended March 31, 2025 and 2024.

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.

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 following table presents the amortized cost of loans and leases to borrowers experiencing financial difficulty modified during the first three months of 2025 and 2024, 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.

No loans were modified for the three months ended September 30, 2023.

Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing

Financial Difficulty

For the Three Months ended September 30, 2024

Term Extension &

Interest Rate

Term Extension &

Payment Delay

% of Total Class of

Commercial real estate:

Owner-occupied

Nonowner-occupied

Other commercial

Residential real estate

Construction & land development

Other consumer

Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial

For the Nine Months ended September 30, 2024

For the Three Months ended March 31, 2025

Term Extension &

11 unchanged sentences

Amortized Cost Basis of Loan Modifications Made to Borrowers Experiencing Financial

For the Nine Months ended September 30, 2023

For the Three Months ended March 31, 2024

Term Extension &

10 unchanged sentences

Other consumer

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.

As of March 31, 2025 and December 31, 2024, there were commitments to lend additional funds of $ 1,386 and $ 1,199 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)

As of September 30, 2024

As of September 30, 2023

As of March 31, 2025

As of March 31, 2024

Commercial real estate:

5 unchanged sentences

Other consumer

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.

No loans were modified for the three months ended September 30, 2023.

The following

table presents the financial effect of loan and lease modifications to borrowers experiencing financial difficulty for the three months ended March 31, 2025 and 2024.

For the Three Months Ended

September 30, 2024

Interest Rate

Commercial Real Estate:

Owner-occupied

Nonowner-occupied

Other Commercial

Residential Real Estate

Construction & land development

Other consumer

For the Nine Months Ended

September 30, 2024

September 30, 2023

March 31, 2025

For the Three Months Ended

March 31, 2024

Interest Rate

7 unchanged sentences

Other consumer

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.

The following table presents loan or lease modifications completed within the last 12 months to borrowers experiencing financial difficulty had a payment default during the three months ended March 31, 2025.

No loan or lease modifications completed within the last 12 months to borrowers experiencing financial difficulty had a payment default during the three months ended March 31, 2025 and 2024.

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.

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

At September 30, 2024

At March 31, 2025

Commercial real estate:

46 unchanged sentences

Based on the most recent analysis performed, the risk category of loans and leases as well as charge-offs and recoveries by class of loans is as follows.

Loans originated in any year may be renewals of existing loans and not necessarily new loans

Commercial Real Estate – Owner-occupied

2 unchanged sentences

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

2 unchanged sentences

Current-period recoveries

Current-period net recoveries

Current-period net recoveries (charge-offs)

Revolving loans

7 unchanged sentences

Current-period recoveries

Current-period net recoveries (charge-offs)

Current-period net recoveries

Commercial Real Estate – Nonowner-occupied

2 unchanged sentences

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

2 unchanged sentences

Current-period recoveries

Current-period net (charge-offs) recoveries

Current-period net charge-offs

Revolving loans

7 unchanged sentences

Current-period recoveries

Current-period net recoveries

Current-period net charge-offs

Other commercial

loans and leases

Term Loans and leases

1 unchanged sentence

amortized cost

loans and leases

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

2 unchanged sentences

Current-period recoveries

Current-period net (charge-offs) recoveries

Current-period net charge-offs

Term Loans and leases

8 unchanged sentences

Current-period recoveries

Current-period net (charge- offs) recoveries

Current-period net recoveries (charge- offs)

Residential Real Estate

2 unchanged sentences

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

11 unchanged sentences

Current-period recoveries

Current-period net recoveries (charge-offs)

Current-period net (charge- offs) recoveries

Construction and Land Development

2 unchanged sentences

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

15 unchanged sentences

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

16 unchanged sentences

Origination Year

As of September 30, 2024

As of March 31, 2025

Internal Risk Grade:

11 unchanged sentences

Current-period recoveries

Current-period net (charge- offs) recoveries

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.

Current-period net charge-offs

At March 31, 2025 and December 31, 2024, other real estate owned (“OREO”) included in other assets in the Consolidated Balance Sheets was $ 1,475 and $ 327 , 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.

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

At March 31, 2025 and December 31, 2024, the recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $ 84 and $ 795 , respectively.

FOR CREDIT LOSSES

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.

Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term).

Assets are charged off when United determines that such financial assets are deemed uncollectible or based on regulatory requirements, whichever is earlier.

Assets are charged off when United determines that

such financial assets are deemed uncollectible or based on regulatory requirements, whichever is earlier.

Charge-offs are recognized as a deduction from the allowance for credit losses.

3 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.

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.

Accrued interest receivable was $ 94,360 and $ 87,062 at March 31, 2025 and December 31, 2024, respectively, related to loans and leases 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.

The following table represents the accrued interest receivable as of September 30, 2024 and December 31, 2023:

The following table represents the accrued interest receivable as of March 31, 2025 and December 31, 2024:

Accrued Interest Receivable

At September 30, 2024

At March 31, 2025

At December 31, 2024

5 unchanged sentences

Other consumer

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:

The following table represents the accrued interest receivables written off by reversing interest income for the three months ended March 31, 2025 and 2024:

Accrued Interest Receivables Written Off

1 unchanged sentence

Three Months Ended

Nine Months Ended

Commercial Real Estate:

3 unchanged sentences

Residential Real Estate

Construction & land development

Other consumer

28 unchanged sentences

For allowance for credit losses under ASC Topic 326 calculation purposes, United includes its acquired loans and leases in their relevant pool unless they meet the criteria for specific review.

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.

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.

The decrease in the reserve for lending-related commitments from December 31, 2023 was due mainly to a lower amount of loan commitments outstanding.

United maintains an allowance for loan losses and a reserve for lending-related commitments such as unfunded loan commitments and letters of credit.

The reserve for lending-related commitments of $ 36,567 and $ 34,911 at March 31, 2025 and December 31, 2024, 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.

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

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.

The third quarter of 2024 qualitative adjustments include analyses of the following:

United’s allowance for loan and lease losses at March 31, 2025 increased $ 38,580 or 14.19 % from December 31, 2024.

As previously mentioned, during the first quarter of 2025, United recorded an allowance for loan and lease losses on acquired Piedmont non-PCD

loans of $ 18,726

and on acquired Piedmont PCD loans of $ 17,518

The first quarter of 2025 qualitative adjustments include analyses of the following:

Current conditions

– United considered the impact of inflation, interest rates, the banking regulatory environment, geopolitical conflict and the presidential election when making determinations related to factor adjustments for the external environment.

United also considered portfolio trends related to economic and business conditions, collateral values for dependent loans;

past due, nonaccrual and graded loans and leases;

– United considered the impact of government efficiency efforts and potential tariffs when making determinations related to factor adjustments for the external environment.

United also considered the impact of changes in economic and business conditions;

collateral values for dependent loans;

past due, nonaccrual and adversely classified loans and leases;

and concentrations of credit.

4 unchanged sentences

Assumptions for the economic variables were the following:

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.

The unemployment rate forecast

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.

United recognized this greater risk of loss by increasing the loss multiple relating to the historical loss experience of the office portfolio.

The forecast for real GDP adjusted downward in the first quarter, from a projection of 2.10 % for 2025 as of mid-December

2024 to 1.70 % for 2025 as of mid-March

with a projection of 1.80 % for 2026.

The unemployment rate forecast shifted slightly in the first quarter from a projection of 4.30 % for 2025 as of mid-December

2024 to 4.40 % for 2025 as of mid-March

with a projection of 4.30 % for 2026.

Greater risk of loss in the office portfolio due to continued hybrid and remote work that may be exacerbated by future economic conditions.

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

For the Three Months Ended September 30, 2024

Commercial Real Estate

Construction &

Allowance for Loan and Lease Losses:

Beginning balance

Ending balance

Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Commercial Real Estate

Construction &

Allowance for Loan and Lease Losses:

Beginning balance

Initial allowance for PCD loans (acquired during the period)

Ending balance

2 unchanged sentences

Commercial Real Estate

Construction &

Allowance for Loan and Lease Losses:

3 unchanged sentences

The following is a summary of intangible assets subject to amortization and those not subject to amortization:

September 30, 2024

March 31, 2025

Community Banking

4 unchanged sentences

Community Banking

Mortgage Banking

Amortized intangible assets:

1 unchanged sentence

Goodwill not subject to amortization

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 provides a reconciliation of goodwill:

Goodwill at December 31, 2024

Preliminary addition to goodwill from Piedmont acquisition

Goodwill at March 31, 2025

United incurred amortization expense of $ 2,341 and $ 910 for the quarters ended March 31, 2025 and 2024, respectively.

The following table sets forth the anticipated amortization expense for intangible assets for the years subsequent to 2024:

2030 and thereafter

MORTGAGE SERVICING RIGHTS

Mortgage loans serviced for others are not included in the accompanying Consolidated Balance Sheets.

The value of mortgage servicing rights (“MSRs”) is included on the Company’s Consolidated Balance Sheets.

The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale (“MSRs”) at fair value, if practicable.

For subsequent measurement purposes, the Company measures servicing assets and liabilities based on the lower of cost or market using the amortization method.

MSRs are amortized in proportion to, and over the period of, estimated net servicing income.

The amortization of the MSRs is analyzed periodically and is adjusted to reflect changes in prepayment rates and other estimates.

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.

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.

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.

Service fee income is recorded for fees earned for servicing mortgage loans under servicing agreements with the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and certain private investors.

The fees are based on a contractual percentage of the outstanding principal balance of the loans serviced and are recorded in noninterest income.

Amortization of MSRs and mortgage servicing costs are charged to expense when incurred.

During the third quarter of 2024, United sold its remaining MSRs at a net gain of $ 7,086 .

The unpaid principal balances of loans serviced for others were approximately $ 1,202,448 at December 31, 2023.

Because of the sale of its remaining MSRs during the third quarter of 2024, there was no

estimated fair value of the MSRs at September 30, 2024.

The estimated fair value of MSRs at December 31, 2023 was $ 13,427 .

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.

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

Nine Months Ended

MSRs beginning balance

Amount capitalized

Amount amortized

MSRs ending balance

MSRs valuation allowance beginning balance

Aggregate additions charged and recoveries credited to operations

MSRs impairment

MSRs valuation allowance ending balance

MSRs, net of valuation allowance

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.

The Company did no t record any temporary impairments on MSRs for the three and nine months ended September 30, 2024 and 2023.

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.

15 unchanged sentences

The components of lease expense were as follows:

Classification

September 30,

Operating lease cost

Net occupancy expense

Sublease income

Net occupancy expense

Net lease cost

Three Months Ended

Classification

September 30,

March 31, 2025

March 31, 2024

Operating lease cost

5 unchanged sentences

Classification

September 30,

Operating lease right-of-use

March 31, 2025

December 31, 2024

Operating lease right-of-use assets

Operating lease right-of-use

2 unchanged sentences

Other information related to leases was as follows:

September 30, 2024

March 31, 2025

Weighted-average remaining lease term:

4 unchanged sentences

Three Months Ended

September 30, 2024

September 30, 2023

Cash paid for amounts in the measurement of lease liabilities:

Operating cash flows used for operating leases

ROU assets obtained in the exchange for lease liabilities

Nine Months Ended

September 30, 2024

September 30, 2023

March 31, 2025

March 31, 2024

Cash paid for amounts in the measurement of lease liabilities:

Operating cash flows used for operating leases

Operating cash flows from operating leases

ROU assets obtained in the exchange for lease liabilities

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:

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, 2024, consists of the following as of March 31, 2025:

Total lease payments

1 unchanged sentence

SHORT-TERM BORROWINGS

At September 30, 2024 and December 31, 2023, short-term borrowings were as follows:

September 30, 2024

At March 31, 2025 and December 31, 2024, short-term borrowings were as follows:

March 31, 2025

December 31, 2024

7 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.

United has a $ 20,000 line of credit with an unrelated financial institution to provide for general liquidity needs.

The line is an unsecured, revolving line of credit.

The line is renewable on a 360 day basis and carries an indexed, floating-rate of interest.

The line requires compliance with various financial and nonfinancial covenants.

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.

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.

At March 31, 2025, United had an unused borrowing amount of approximately $ 8,138,657 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.

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.

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.

At March 31, 2025, a $

FHLB advance with a weighted-average contractual interest rate of

% and a weighted-average effective interest rate of

% is scheduled to mature in 2025.

The weighted-average effective rate considers the effect of any interest rate swaps designated as cash flow hedges outstanding at March 31, 2025 to manage interest rate risk on its long-term debt.

The scheduled maturities of these FHLB borrowings are as follows:

2029 and thereafter

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.

At March 31, 2025, 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.

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.

At March 31, 2025 and December 31, 2024, the outstanding balance of the Debentures was $ 280,623 and $ 280,221 , 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.

Under the provisions of the subordinated debt, United has the right to defer payment of interest on the subordinated debt at any time, or from time to time, for periods not exceeding five years .

Under the provisions of the subordinated debt, United has the right to defer payment of interest on the subordinated debt at any time, or from time to time, for periods not exceeding

If interest payments on the subordinated debt are deferred, the dividends on the Capital Securities are also deferred.

Interest on the subordinated debt is cumulative.

In accordance with the fully-phased in “Basel III Capital Rules” as published by United’s primary federal regulator, the Federal Reserve, United is unable to consider the Capital Securities as Tier 1 capital, but rather the Capital Securities are included as a component of United’s Tier 2 capital.

United can include the Capital Securities in its Tier 2 capital on a permanent basis.

United also assumed $20,000 in aggregate principal amount of fixed-to-floating

rate subordinated notes in the Piedmont acquisition which are also included in the category of long-term debt on the Consolidated Balance Sheets entitled “Other long-term borrowings.”.

rate subordinated notes as Tier 1 capital, but rather the Capital Securities and the fixed-to-floating

rate subordinated notes are included as a component of United’s Tier 2 capital.

United can include the Capital Securities and the fixed-to-floating

rate subordinated notes in its Tier 2 capital on a permanent basis.

COMMITMENTS AND CONTINGENT LIABILITIES

12 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.

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.

United had approximately $ 6,408,461 and $ 5,886,473 of loan commitments outstanding as of March 31, 2025 and December 31, 2024, respectively, approximately 3

6% of which contractually expire within one year .

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.

As of September 30, 2024 and December 31, 2023, United had $ 15,771 and $ 16,233 of commercial letters of credit outstanding.

As of March 31, 2025 and December 31, 2024, United had $ 15,398 and $ 15,546 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.

United has issued standby letters of credit of $ 156,805 and $ 147,705 as of September 30, 2024 and December 31, 2023, respectively.

United has issued standby letters of credit of $ 148,957 and $ 148,874 as of March 31, 2025 and December 31, 2024, 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.

United’s reserve was immaterial as of September 30, 2024 and December 31, 2023.

United’s reserve was immaterial as of March 31, 2025 and December 31, 2024.

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.

26 unchanged sentences

The derivatives were intended to hedge the changes in cash flows associated with floating rate FHLB borrowings.

One of these two interest rate swap derivatives matured during the third quarter of 2024.

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.

One of these two interest rate swap derivatives with a notional amount of $

250,000 matured during the third quarter of 2024.

As of March 31, 2025, 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 $ 8,714 will be reclassified from AOCI as a decrease to interest expense over the next 12-months

following September 30, 2024 related to the cash flow hedge.

As of September 30, 2024, the maximum length of time over which forecasted transactions are hedged is six years.

following March 31, 2025 related to the cash flow hedges.

As of March 31, 2025, the maximum length of time over which forecasted transactions are hedged is five 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.

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.

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 March 31, 2025.

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.

The related fair value on a net basis approximates zero .

United through its mortgage banking channel enters into interest rate lock commitments to finance residential mortgage loans with its customers.

United enters into interest rate lock commitments to finance residential mortgage loans with its customers.

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.

1 unchanged sentence

Market risk on interest rate lock commitments and mortgage loans held for sale is managed using corresponding forward mortgage loan sales contracts.

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.

United is a party to these forward mortgage loan sales contracts to sell loans with servicing released and short sales of mortgage-backed securities.

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.

3 unchanged sentences

Income from mortgage banking activities includes the gain recognized for the period presented and associated elements of fair value.

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

September 30, 2024

March 31, 2025

December 31, 2024

8 unchanged sentences

Derivatives not designated as hedging instruments

Asset Derivatives

March 31, 2025

December 31, 2024

Forward loan sales commitments

4 unchanged sentences

Liability Derivatives

September 30, 2024

March 31, 2025

December 31, 2024

8 unchanged sentences

Total liability derivatives

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

Location in the Statement of

September 30, 2024

Location in the Statement

March 31, 2025

Carrying Amount of

the Hedged Assets/

(Liabilities)

Assets/(Liabilities)

Cumulative Amount

15 unchanged sentences

Hedging Relationships

Location in the Statement of

Location in the Statement

December 31, 2024

Carrying Amount of

the Hedged Assets/

(Liabilities)

Assets/(Liabilities)

Cumulative Amount

2 unchanged sentences

in the Carrying

Amount of the

Hedged Assets/

(Liabilities)

Amount of the Hedged

Assets/(Liabilities)

Cumulative Amount of

12 unchanged sentences

Additionally, the Company attempts to minimize credit risk through certain approval processes established by management.

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:

The effect of United’s derivative financial instruments on its unaudited Consolidated Statements of Income for the three months ended March 31, 2025 and 2024 are presented as follows:

Three Months Ended

Income Statement

September 30,

Derivatives in hedging relationships

Cash flow Hedges:

Interest rate swap contracts

Interest on long-term borrowings

Fair Value Hedges:

Derivatives in hedging relationships Fair Value Hedges:

Interest rate swap contracts

Interest and fees on loans

Total derivatives in hedging relationships

Derivatives not designated as hedging instruments

Forward loan sales commitments

Income from Mortgage Banking Activities

TBA mortgage-backed securities

Income from Mortgage Banking Activities

Interest rate lock commitments

Income from Mortgage Banking Activities

Total derivatives not designated as hedging instruments

Total derivatives

Nine Months Ended

Income Statement

September 30,

Derivatives in hedging relationships

Cash flow Hedges:

1 unchanged sentence

Interest on long-term borrowings

Fair Value Hedges:

Interest rate swap contracts

Interest and fees on loans

Total derivatives in hedging relationships

8 unchanged sentences

Total derivatives

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

t significant to United’s Consolidated Statements

For the three months ended March 31, 2025 and 2024, 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.

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.

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.

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.

For assets and liabilities that are

no t actively traded, the fair value measurement is based primarily upon estimates that require significant judgment.

Therefore, the results may

no t be realized in an actual sale or immediate settlement of the asset or liability.

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 not traded in active markets, United looks to market observable data for similar assets and liabilities and classifies such items as Level 2.

Nevertheless, certain assets and liabilities are not 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.

For assets and liabilities that are not actively traded, the fair value measurement is based primarily

upon estimates that require significant judgment.

Therefore, the results may not 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.

Upon completing its review of the pricing from third party vendors at September 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.

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.

Upon completing its review of the pricing from third party vendors at March 31, 2025, 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.

Therefore, prices obtained from third party vendors that did not reflect forced liquidation or distressed sales were not adjusted materially by management at March 31, 2025.

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.

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 March 31, 2025, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.042 % to 0.270 % with a weighted average increase of 0.141 %.

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.

11 unchanged sentences

The Company records its interest rate lock commitments and forward loan sales commitments at fair value determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date.

In the normal course of business, United, through its mortgage banking channel, enters into contractual interest rate lock commitments to extend credit to borrowers with fixed expiration dates.

In the normal course of business, United enters into contractual interest rate lock commitments to extend credit to borrowers with fixed expiration dates.

The commitments become effective when the borrowers “lock-in”

2 unchanged sentences

Interest rate 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.

To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, United, through its mortgage banking channel, enters 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”).

To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, United enters 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

The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.

2 unchanged sentences

The unobservable input for Level 3 valuations is the Company’s historical sales prices.

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.

For March 31, 2025, the range of historical sales prices increased the investor’s indicated pricing by a range of 0.042 % to 0.270 % with a weighted average increase of 0.141 %.

For derivatives that are not designated in a hedge relationship, 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.

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.

Fair Value at September 30, 2024 Using

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy.

Fair Value at March 31, 2025 Using

Balance as of

September 30,

Quoted Prices

4 unchanged sentences

Residential mortgage-backed securities

Fair Value at March 31, 2025 Using

Balance as of

Quoted Prices

Commercial mortgage-backed securities

6 unchanged sentences

Equity mutual funds (1)

Fixed income mutual funds

Other equity securities

Total equity securities

2 unchanged sentences

Interest rate swap contracts

TBA mortgage-backed securities

Forward loan sales commitments

Interest rate lock commitments

1 unchanged sentence

Derivative financial liabilities

Forward sales commitments

TBA mortgage-backed securities

Total derivative financial liabilities

19 unchanged sentences

Derivative financial assets:

Fair Value at December 31, 2024 Using

Balance as of

Quoted Prices

Interest rate swap contracts

Forward sales commitments

TBA mortgage-backed securities

Interest rate lock commitments

1 unchanged sentence

Derivative financial liabilities:

TBA mortgage-backed securities

Forward loan sales commitments

Total derivative financial liabilities

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.

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.

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 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.

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 three months ended March 31, 2025 and the year ended December 31, 2024.

The following tables present additional information about financial assets and liabilities measured at fair value at March 31, 2025 and December 31, 2024 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

September 30, 2024

March 31, 2025

Forward Sales

10 unchanged sentences

Interest Rate

Balance, beginning of period

2 unchanged sentences

Balance, end of period

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

The amount of total (losses) 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

Fair Value Option

1 unchanged sentence

Three Months Ended

September 30, 2024

March 31, 2025

Three Months Ended

September 30, 2023

Income from mortgage banking activities

Nine Months Ended

September 30, 2024

Nine Months Ended

September 30, 2023

March 31, 2024

Income from mortgage banking activities

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:

September 30, 2024

March 31, 2025

December 31, 2024

8 unchanged sentences

Loans evaluated individually are not also included in the collective evaluation.

When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Fair value is measured using a market approach based on the value of the collateral securing the loans.

36 unchanged sentences

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.

During the fourth quarter of 2023, United’s management formulated a plan to consolidate its mortgage delivery channels by consolidating George Mason’s and Crescent’s mortgage banking business into United Bank.

As a result of this consolidation decision, United impaired the trade names intangibles at George Mason and Crescent to zero at December 31, 2023.

No fair value measurement of intangible assets was made during the first nine months of 2024 and 2023.

Mortgage Servicing Rights (“MSRs”):

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.

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.

The quarterly determination of fair value of servicing rights is provided by a third party and is estimated using a present value cash flow model.

The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates.

Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy.

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.

During the third quarter of 2024, United sold its remaining balance of MSRs.

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.

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.

Other than those intangible assets recorded in the acquisition of Piedmont in the first quarter of 2025, no other fair value measurement of intangible assets was made during the first three months of 2025 and 2024.

The following table summarizes United’s financial assets that were measured at fair value on a nonrecurring basis during the period:

Fair Value at September 30, 2024

Balance as of

September 30, 2024

March 31, 2025

Fair Value at March 31, 2025

Quoted Prices

Individually assessed loans

Fair Value at December 31, 2023

Balance as of

December 31, 2024

Fair Value at December 31, 2024

Quoted Prices

9 unchanged sentences

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.

Other securities consist mainly of shares of Federal Home Loan Bank and Federal Reserve Bank stock that do not have readily determinable fair values and are carried at cost.

Other securities consist mainly of shares of Federal Home Loan Bank and Federal Reserve Bank stock as well as investment tax credits that do not have readily determinable fair values and are carried at cost.

Loans and leases

14 unchanged sentences

Quoted Prices

September 30, 2024

March 31, 2025

Cash and cash equivalents

16 unchanged sentences

Derivative financial assets

Mortgage servicing rights

Short-term borrowings

10 unchanged sentences

Unless otherwise determined by the Board, the Compensation Committee of the Board (the “Committee”) shall administer the 2020 LTI Plan.

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 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

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.

United adopted a clawback policy that applies to named executive officers and other executive officers and permits the Committee to cancel certain awards and to recoup gains realized from previous awards should United be required to prepare an accounting restatement due to materially inaccurate performance metrics.

1 unchanged sentence

The 2020 LTI Plan replaces the 2016 LTI Plan.

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.

three months of 2025, a total of 184,515 shares of restricted stock and 256,385 of restricted stock units were granted under the 2020 LTI Plan.

No non-qualified

stock options were granted under the 2020 LTI Plan during the first three months of 2025.

Compensation expense of $ 2,875 and $ 3,266 related to the all share-based grants and awards under United’s Long-Term Incentive Plans was incurred for the first quarter of 2025 and 2024, 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.

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:

Nine Months Ended September 30, 2024

A summary of activity under United’s stock option plans as of March 31, 2025, and the changes during the first three months of 2025 are presented below:

Three Months Ended March 31, 2025

Weighted Average

1 unchanged sentence

Forfeited or expired

Outstanding at September 30, 2024

Exercisable at September 30, 2024

The following table summarizes the status of United’s nonvested stock option awards during the first nine months of 2024:

Weighted-Average

Grant Date Fair Value

Nonvested at January 1, 2024

Forfeited or expired

Nonvested at September 30, 2024

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.

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.

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.

As of September 30, 2024, there was no unrecognized compensation cost related to nonvested stock option awards.

Outstanding at March 31, 2025

Exercisable at March 31, 2025

During the three months ended March 31, 2025 and 2024, 9,816 and 25,991 shares, respectively, were issued in connection with stock option exercises.

All shares issued in connection with stock option exercises for the three months ended March 31, 2025 and 2024 were issued from authorized and unissued stock.

The total intrinsic value of options exercised under the Plans during the three months ended March 31, 2025 and 2024 was $ 55 and $ 207 ,

respectively.

As of March 31, 2025, there was no unrecognized compensation cost related to nonvested stock option awards.

Restricted Stock

Under the 2020 LTI Plan, United may award restricted common shares to key employees and non-employee

Restricted shares granted to participants will vest no sooner than 1/3 per year over the first three anniversaries of the award.

Restricted shares granted to participants will vest no sooner than 1/3 per year over the first three

anniversaries of the award.

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.

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.

The following summarizes the changes to United’s nonvested restricted common shares for the period ended September 30, 2024:

As of March 31, 2025, the total unrecognized compensation cost related to nonvested restricted stock awards was $ 11,581 with a weighted-average expense recognition period of 1.6 years.

The following summarizes the changes to United’s nonvested restricted common shares for the period ended March 31, 2025:

Weighted-Average

1 unchanged sentence

Nonvested at January 1, 2025

Nonvested at September 30, 2024

Nonvested at March 31, 2025

Restricted Stock Units

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The Company recognizes expense on the RSUs in accordance with ASC Topic 718.

The following table summarizes the status of United’s nonvested RSUs during the first nine months of 2024:

The following table summarizes the status of United’s nonvested RSUs during the first three months of 2025:

Weighted-Average

2 unchanged sentences

Forfeited or expired

Nonvested at September 30, 2024

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.

Nonvested at March 31, 2025

As of March 31, 2025, the total unrecognized compensation cost related to nonvested restricted stock units was $ 15,313 with a weighted-average expense recognition period of 1.9 years.

EMPLOYEE BENEFIT PLANS

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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.

No discretionary contributions were made during the first nine months of 2024 and 2023.

No discretionary contributions were made during the first quarter of 2025 and 2024.

Included in accumulated other comprehensive income at December 31, 2024 are unrecognized actuarial losses of $ 17,884 ($ 9,645 net of tax) that have not yet been recognized in net periodic pension cost.

Net periodic pension cost for the three and nine months ended September 30, 2024 and 2023 included the following components:

Three Months Ended

Nine Months Ended

Net periodic pension cost for the three months ended March 31, 2025 and 2024 included the following components:

Three Months Ended March 31

Interest cost

1 unchanged sentence

Recognized net actuarial loss

Net periodic pension cost

Net periodic pension (benefit) cost

Weighted-Average Assumptions:

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Rate of Compensation Increase (ages 40-49)

Rate of Compensation Increase (ages 40-54)

Rate of Compensation Increase (ages 50-54)

Rate of Compensation Increase (ages 55-64)

Rate of Compensation Increase (otherwise)

1 unchanged sentence

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.

As of September 30, 2024 and 2023, the total amount of accrued interest related to uncertain tax positions was $ 827 and $ 815 , respectively.

As of March 31, 2025 and 2024, the total amount of accrued interest related to uncertain tax positions was $ 677 and $ 773 , 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, 2021, 2022 and 2023 and certain State Taxing authorities for the years ended December 31, 2021 through 2023.

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.

United’s effective tax rate was 16.36 % for the second quarter of 2024.

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.

United’s effective tax rate was 21.16 % for the first quarter of 2025 and 19.78 % for the first quarter of 2024.

COMPREHENSIVE INCOME

The components of total comprehensive income for the three and nine months ended September 30, 2024 and 2023 are as follows:

The components of total comprehensive income for the three months ended March 31, 2025 and 2024 are as follows:

Three Months Ended

Nine Months Ended

Available for sale (“AFS”) securities:

1 unchanged sentence

Related income tax effect

Net reclassification adjustment for losses included in net income

Related income tax expense

Net reclassification adjustment for losses (gains) included in net income

Related income tax effect

Net effect of AFS securities on other comprehensive income

Cash flow hedge derivatives:

Unrealized (loss) gain on cash flow hedge before reclassification to interest expense

Unrealized (loss) gain on cash flow hedge before reclassification to interest

Related income tax effect

1 unchanged sentence

Related income tax effect

Net effect of cash flow hedge derivatives on other comprehensive income

Pension plan:

Recognized net actuarial loss

Net effect of cash flow hedge derivatives on other comprehensive

Defined benefit pension plan:

Amortization of net actuarial loss recognized in net income

Related income tax benefit

Net effect of change in pension plan asset on other comprehensive income

Total change in other comprehensive income

Net effect of change in defined benefit pension plan asset on other comprehensive income

Total change in other comprehensive income (loss), net of tax

Total Comprehensive Income

The components of accumulated other comprehensive income for the nine months ended September 30, 2024 are as follows:

The components of accumulated other comprehensive income for the three months ended March 31, 2025 are as follows:

Changes in Accumulated Other Comprehensive Income (AOCI) by Component (a)

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Balance at January 1, 2025

Other comprehensive (loss) income before reclassification

Other comprehensive income before reclassification

Amounts reclassified from accumulated other comprehensive income

Net current-period other comprehensive (loss) income, net of tax

Balance at September 30, 2024

Balance at March 31, 2025

All amounts are net-of-tax.

1 unchanged sentence

Reclassifications out of Accumulated Other Comprehensive Income (AOCI)

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Details about AOCI Components

1 unchanged sentence

Net Income is Presented

Available for sale (“AFS”) securities:

Net reclassification adjustment for losses included in net income

Net investment securities (losses) gains

Total before tax

Related income tax effect

Cash flow hedge:

3 unchanged sentences

Related income tax effect

Pension plan:

Recognized net actuarial loss

Employee benefits

Total before tax

Related income tax effect

Total reclassifications for the period

This AOCI component is included in the computation of changes in plan assets (see Note 16, Employee Benefit Plans)

EARNINGS PER SHARE

1 unchanged sentence

Three Months Ended

Nine Months Ended

Distributed earnings allocated to common stock

2 unchanged sentences

Average common shares outstanding

Equivalents from stock options

Common stock equivalents

Average diluted shares outstanding

1 unchanged sentence

Earnings per diluted common share

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.

Antidilutive stock options and restricted stock outstanding of 567,715 for the three months ended March 31, 2025 were excluded from the earnings per diluted common share calculation as compared to 1,198,358 for the three months ended March 31, 2024.

VARIABLE INTEREST ENTITIES

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).

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).

VIEs can be structured as corporations, trusts, partnerships, or other legal entities.

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United fully and unconditionally guarantees the obligations of each trust and is obligated to redeem the junior subordinated debentures upon maturity.

United does not consolidate these trusts as it is not the primary beneficiary of these entities because United’s wholly owned and indirect wholly owned statutory trust subsidiaries do not have a controlling financial interest in the VIEs.

A controlling financial interest is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

As defined in applicable accounting standards, VIEs are entities that lack one or more of the characteristics of a voting interest entity.

A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE.

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.

United’s wholly owned and indirect wholly owned statutory trust subsidiaries are VIEs for which United is not the primary beneficiary.

Accordingly, its accounts are not included in United’s consolidated financial statements.

At March 31, 2025 and December 31, 2024, United’s investment (maximum exposure to loss) in these trusts were $ 12,345 and $ 12,238 , respectively.

Information related to United’s statutory trusts is presented in the table below:

86 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.

United’s limited partner interests in these entities is immaterial;

however, these partnerships are not consolidated as United is not deemed to be the primary beneficiary.

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.

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.

These partnerships are not consolidated as United is not deemed to be the primary beneficiary.

At March 31, 2025 and December 31, 2024, United’s investment (maximum exposure to loss) in these low income housing and community development partnerships were $ 100,873 and $ 98,441 , respectively, while related unfunded commitments were $ 82,952 and $ 89,292 respectively.

As of March 31, 2025, United expects to recover its remaining investments through the use of the tax credits that are generated by the investments.

SEGMENT INFORMATION

United operates in one reportable segment, community banking.

Through its community banking segment, United offers a full range of products and services through various delivery channels.

Included among the banking products and services offered are the acceptance of deposits in checking, savings, time and money market accounts;

the making and servicing of personal, credit card, commercial, and floor plan loans;

and the making of construction and real estate loans as well as the origination and sale of residential mortgages in the secondary market.

Also offered are trust and brokerage services, safe deposit boxes, and wire transfers.

The community banking segment derives revenues mainly from interest income on loans to customers, investment securities held and other short-term investments in addition to fees and income derived related to the services listed above.

The accounting policies of the community banking segment are the same as those described in the summary of significant accounting policies.

United’s chief operating decision maker (“CODM”) is its chief executive officer who maintains responsibility for the day-to-day

management of the Company including regularly reviewing the operating results of the community banking segment in order to assess performance and make decisions about resource allocation based on net income that also is reported on the income statement as consolidated net income.

The measure of community banking segment assets is reported on the Consolidated Balance Sheets as total assets.

The CODM uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the community banking segment or into other parts of the entity, such as for acquisitions or to pay dividends.

Net income is used to monitor budget versus actual results as well as comparing to prior year’s results.

The comparative analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment.

Information about the community banking segment for the three months ended March 31, 2025 and 2024 is as follows:

For the Three Months Ended

Net interest income

Provision for credit losses

Other expense

Employee compensation

Employee benefits

Net occupancy expense

Net gains on the sales of OREO properties

Equipment expense

Data processing expense

Mortgage loan servicing expense and impairment

Bankcard processing expense

FDIC insurance expense

Other segment expense (a)

Total other expense

Income before income taxes

Segment net income

Reconciliation of profit or loss

Adjustments and reconciling items

Consolidated net income

Other segment expense includes legal, consulting and other professional services expense, franchise and other taxes not on income, expense for reserve on lending-related commitments, ATM expenses, marketing expense, core deposits amortization, and other general operating expenses.

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.

What changed 10-Q

Item 1. Financial Statements