23 unchanged sentences
United closely monitors the sensitivity of its assets and liabilities on an on-going basis and projects the effect of various interest rate changes on its net interest margin.
−Removed: The following table shows United’s estimated earnings sensitivity profile as of March 31, 2025 and December 31, 2024:
+Added: The following table shows United’s estimated earnings sensitivity profile as of June 30, 2025 and December 31, 2024:
Change in Interest Rates
1 unchanged sentence
Percentage Change in Net Interest Income
−Removed: March 31, 2025
+Added: June 30, 2025
December 31, 2024
−Removed: At March 31, 2025, given an immediate, sustained 100 basis point upward shock to the yield curve used in the simulation model, net interest income for United is estimated to increase by 2.05% over one year as compared to an increase by 1.75% at December 31, 2024.
−Removed: A 200 basis point immediate, sustained upward shock in the yield curve would increase net interest income by an estimated 3.26% over one year as of March 31, 2025, as compared to an increase of 2.82% as of December 31, 2024.
−Removed: A 100 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 0.24% over one year as of March 31, 2025 as compared to an increase of 0.26% over one year as of December 31, 2024.
−Removed: A 200 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 0.41% over one year as of March 31, 2025 as compared to an increase of 0.40% over one year as of December 31, 2024.
+Added: At June 30, 2025, given an immediate, sustained 100 basis point upward shock to the yield curve used in the simulation model, net interest income for United is estimated to increase by 2.13% over one year as compared to an increase by 1.75% at December 31, 2024.
+Added: A 200 basis point immediate, sustained upward shock in the yield curve would increase net interest income by an estimated 3.43% over one year as of June 30, 2025, as compared to an increase of 2.82% as of December 31, 2024.
+Added: A 100 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 0.36% over one year as of June 30, 2025 as compared to an increase of 0.26% over one year as of December 31, 2024.
+Added: A 200 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 0.61% over one year as of June 30, 2025 as compared to an increase of 0.40% over one year as of December 31, 2024.
In addition to the one year earnings sensitivity analysis, a two-year analysis is also performed.
Compared to the one year analysis, United is projected to show improved performance in year two within the upward rate shock scenarios.
−Removed: Given an immediate, sustained 100 basis point upward shock to the yield curve used in the simulation model, net interest income for United is estimated to increase by 4.09% in year two as of March 31, 2025.
−Removed: A 200 basis point immediate, sustained upward shock in the yield curve would increase net interest income by an estimated 7.03% in year two as of March 31, 2025.
−Removed: A 100 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 2.63% in year two as of March 31, 2025.
−Removed: A 200 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 5.79% in year two as of March 31, 2025.
+Added: Given an immediate, sustained 100 basis point upward shock to the yield curve used in the simulation model, net interest income for United is estimated to increase by 4.16% in year two as of June 30, 2025.
+Added: A 200 basis point immediate, sustained upward shock in the yield curve would increase net interest income by an estimated 7.21% in year two as of June 30, 2025.
+Added: A 100 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 2.76% in year two as of June 30, 2025.
+Added: A 200 basis point immediate, sustained downward shock in the yield curve would decrease net interest income by an estimated 6.06% in year two as of June 30, 2025.
While it is unlikely market rates would immediately move 100 or 200 basis points upward or downward on a sustained basis, this is another tool used by management and the Board to gauge interest rate risk.
16 unchanged sentences
This is generally referred to as extension risk.
−Removed: At March 31, 2025, United’s mortgage related securities portfolio had an amortized cost of $1.8 billion, of which approximately $828.1 million or 46% were fixed rate collateralized mortgage obligations (“CMOs”).
+Added: At June 30, 2025, United’s mortgage related securities portfolio had an amortized cost of $1.8 billion, of which approximately $925.2 million or 50% were fixed rate collateralized mortgage obligations (“CMOs”).
These fixed rate CMOs consisted primarily of planned amortization class (“PACs”), sequential-pay and accretion directed (“VADMs”) bonds having an average life of approximately 4.8 years and a weighted average yield of 3.12%, under current projected prepayment assumptions.
These securities are expected to have moderate extension risk in a rising rate environment.
−Removed: Current models show that given an immediate, sustained upward shock of 300 basis points, the average life of these securities would only extend to 6.6 years.
+Added: Current models show that that given an immediate, sustained upward shock of 300 basis points, the average life of these securities would only extend to 6.5 years.
The projected price decline of the fixed rate CMO portfolio in rates up 300 basis points would be 15.3%, or less than the price decline of a 7-year treasury note.
By comparison, the price decline of a 30-year 5.5% current coupon mortgage backed security (“MBS”) in rates higher by 300 basis points would be approximately 19.2%.
−Removed: United had approximately $362.4 million in fixed rate Commercial mortgage backed Securities (CMBS) with a projected yield of 1.87% and a projected average life of 4.5 years on March 31, 2025.
+Added: United had approximately $341.7 million in fixed rate Commercial mortgage backed Securities (“CMBS”) with a projected yield of 1.93% and a projected average life of 4.6 years on June 30, 2025.
This portfolio consisted primarily of Freddie Mac Multifamily K securities and Fannie Mae Delegated Underwriting and Servicing (“DUS”) securities with a weighted average maturity (“WAM”) of 8.6 years.
−Removed: United had approximately $22.3 million in 15-year mortgage backed securities with a projected yield of 4.02% and a projected average life of 4 years as of March 31, 2025.
+Added: United had approximately $21.5 million in 15-year mortgage backed securities with a projected yield of 3.99% and a projected average life of 4 years as of June 30, 2025.
This portfolio consisted of seasoned 15-year mortgage paper with a weighted average loan age (“WALA”) of 5.5 years and a weighted average maturity (“WAM”) of 9.8 years.
−Removed: United had approximately $317.5 million in 20-year mortgage backed securities with a projected yield of 2.14% and a projected average life of 6 years on March 31, 2025.
−Removed: This portfolio consisted of seasoned 20-year mortgage paper with a WALA of 4 years and a WAM of 15.7 years.
−Removed: United had approximately $230.7 million in 30-year mortgage backed securities with a projected yield of 3.95% and a projected average life of 7.6 years on March 31, 2025.
−Removed: This portfolio consisted of seasoned 30-year mortgage paper with a WALA of 5.3 years and a WAM of 22.7 years.
−Removed: The remaining 3% of the mortgage related securities portfolio on March 31, 2025, included floating rate CMO, CMBS and mortgage backed securities.
+Added: United had approximately $310.1 million in 20-year mortgage backed securities with a projected yield of 2.14% and a projected average life of 6 years on June 30, 2025.
+Added: This portfolio consisted of seasoned 20-year mortgage paper with a weighted average loan age (“WALA”) of 4.3 years and a weighted average maturity (“WAM”) of 15.4 years.
+Added: United had approximately $223.6 million in 30-year mortgage backed securities with a projected yield of 3.93% and a projected average life of 7.9 years on June 30, 2025.
+Added: This portfolio consisted of seasoned 30-year mortgage paper with a weighted average loan age (“WALA”) of 5.6 years and a weighted average maturity (“WAM”) of 22.8 years.
+Added: The remaining 1% of the mortgage related securities portfolio on June 30, 2025, included floating rate CMO, CMBS and mortgage backed securities.
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.