What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-27 compared with 2025-02-28 · 221 added, 213 removed, 560 unchanged (44% of the section changed)

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The consolidation streamlined operations and will enhance the customer experience.

ECONOMIC AND TRADE POLICY UNCERTAINTY

United continues to monitor the potential impact of evolving trade policies, including the threat of additional tariffs imposed by the United States.

While no specific tariffs have been implemented during the reporting period that materially affect United’s operations, the potential for future changes in cross-border trade arrangements and import/export duties contributes to broader economic uncertainty.

Management has considered these risks in its forward-looking assessments and determined that, as of the reporting date, there are no material adverse effects on United’s financial position, results of operations, or estimates related to credit losses or asset impairments.

THE ONE BIG BEAUTIFUL BILL ACT

On July 4, 2025, President Trump signed into law H.R.

1, The One Big Beautiful Bill Act (“OBBBA”).

There was no significant financial statement impact reflected in the year of 2025.

However, the Company will continue to evaluate and apply the provisions of the OBBBA but does not expect any material impact on its consolidated financial statements.

The following discussion and analysis presents the more significant changes in financial condition as of December 31, 2025 and 2024 and the results of operations of United and its subsidiaries for each of the years then ended.

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At December 31, 2025, the allowance for loan and lease losses was $297.52 million and is subject to periodic adjustment based on management’s assessment of expected credit losses in the loan portfolio.

Such adjustment from period to period can have a significant impact on United’s consolidated financial statements.

adjustment from period to period can have a significant impact on United’s consolidated financial statements.

To illustrate the potential effect on the financial statements of our estimates of the allowance for loan and lease losses, a 10% increase in the allowance for loan and lease losses would have required $29.75 million in additional allowance (funded by additional provision for loan and lease losses), which would have negatively impacted the year of 2025 net income by approximately $23.50 million, after-tax, or $0.17 diluted earnings per common share.

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The allowance allocated to specific credits and loan pools grouped by similar risk characteristics is reviewed on a quarterly basis and adjusted as necessary based upon subsequent changes in circumstances.

In determining the components of the allowance for loan and lease losses, management considers the risk arising in part from, but not limited to, qualitative factors which include charge-off and delinquency trends, current business conditions and reasonable and supportable economic forecasts, lending policies and procedures, the size and risk characteristics of the loan portfolio, concentrations of credit, and other various

The methodology used to determine the allowance for loan and lease losses is described in Note A, Notes to Consolidated Financial Statements.

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These changes can be material to the Company’s operating results for any particular reporting period.

The analysis of the income tax provision requires the assessments of the relative risks and merits of the appropriate tax treatment of transactions, filing positions, filing methods and taxable income calculations after considering statutes, regulations, judicial precedent and other information.

The analysis of the income tax provision requires an assessment of the relative risks and merits of the appropriate tax treatment of transactions, filing positions, filing methods and taxable income calculations after considering statutes, regulations, judicial precedent and other information.

United strives to keep abreast of changes in the tax laws and the issuance of regulations which may impact tax reporting and provisions for income tax expense.

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The potential impact to United’s operating results for any of the changes cannot be reasonably estimated.

See Note O, Notes to Consolidated Financial Statements for information regarding United’s ASC Topic 740 disclosures.

See Note N, Notes to Consolidated Financial Statements for information regarding United’s ASC Topic 740 disclosures.

Use of Fair Value Measurements

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United does not believe that any changes in the unobservable inputs used to value the financial instruments mentioned above would have a material impact on United’s results of operations, liquidity, or capital resources.

See Note W for additional information regarding ASC Topic 820 and its impact on United’s financial statements.

See Note V for additional information regarding ASC Topic 820 and its impact on United’s financial statements.

Any material effect on the financial statements related to these critical accounting areas is further discussed in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

2025 COMPARED TO 2024

United’s total assets as of December 31, 2024 were $30.02 billion, which was an increase of $97.06 million or less than 1% from December 31, 2023.

This increase was mainly due to an increase of $693.30 million or 43.36% in cash and cash equivalents, a $314.41 million or 1.47% increase in loans, net of unearned income, and a $10.29 million or 2.11% increase in cash surrender life insurance policies.

These increases in assets were mostly offset by a $866.46 million or 21.00% decrease in investment securities, a $11.90 million or 21.15% decrease in loans held for sale, a $9.01 million or 8.08% decrease in interest receivable, and a $6.77 million or 2.45% decrease in other assets.

Total liabilities decreased $124.92 million or less than 1% from year-end 2023.

Borrowings decreased $1.27 billion or 63.91%, which were partially offset by a $1.14 billion or 5.01% increase in deposits.

Shareholders’ equity increased $221.98 million or 4.65%.

United’s total assets as of December 31, 2025 were $33.66 billion, which was an increase of $3.64 billion or 12.11% from December 31, 2024.

The acquisition of Piedmont on January 10, 2025 added $2.30 billion in total assets, including purchase accounting amounts.

Portfolio loans increased $3.04 billion or 14.01%, investment securities increased $141.10 million or 4.33%, goodwill increased $129.96 million or 6.88%, other assets increased $31.76 million or 11.78%, bank-owned life insurance policies increased $49.95 million or 10.05%, bank premises and equipment increased $22.70 million or 12.20%, operating lease right-of-use assets increased $7.57 million or 9.26%, interest receivable increased $6.82 million or 6.66%, and cash and cash equivalents increased $250.01 million or 10.91%.

Loans held for sale decreased $13.08 million or 29.49%.

Total liabilities increased $3.13 billion or 12.52% from year-end 2024.

This increase in total liabilities reflects an increase of $3.10 billion or 12.93% in deposits, an increase of $12.23 million or 5.31% in accrued and other liabilities, and an increase of $8.62 million or 9.94% in operating lease right-of-use liabilities, all mainly due to the Piedmont acquisition.

Borrowings increased $13.88 million or 1.94% from year-end 2024.

Shareholders’ equity increased $502.76 million or 10.07% from year-end 2024 due primarily to the acquisition of Piedmont and net earnings.

The following discussion explains in more detail the changes in financial condition by major category.

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Cash and cash equivalents at December 31, 2025 increased $250.01 million or 10.91% from year-end 2024.

In particular, interest-bearing deposits with other banks increased $709.70 million or 52.94% as United placed more cash in an interest-bearing account with the Federal Reserve while cash and due from banks decreased $16.50 million or 6.42%.

Net cash acquired in the Piedmont merger was $77.47 million.

In particular, cash and due from banks increased $6.96 million or 2.89%, while interest-bearing deposits with other banks increased $242.96 million or 11.85% as United placed more cash in an interest-bearing account with the Federal Reserve.

Federal funds sold increased $90 thousand or 7.10%.

During the year of 2024, net cash of $445.45 million and $571.49 million were provided by operating and investing activities, respectively, while net cash of $323.64 million was used in financing activities.

During the year of 2025, net cash of $498.91 million and $650.41 million were provided by operating and financing activities, respectively, while net cash of $899.31 million was used in investing activities.

Further details related to changes in cash and cash equivalents are presented in the Consolidated Statements of Cash Flows.

Total investment securities at December 31, 2024 decreased $866.46 million or 21.00%.

Securities available for sale decreased $826.66 million or 21.83%.

This change in securities available for sale reflects $2.06 billion in purchases, $2.93 billion in sales, maturities and calls of securities, and an increase of $40.55 million in market value.

The majority of the sales activity was related to asset-backed securities, mortgage-backed securities and state and political subdivision securities.

Equity securities were $21.06 million at December 31, 2024, an increase of $12.11 million or 135.42% due mainly to a reclass of an equity security that now has a readily determinable market value.

The equity security was previously held in “Other investment securities” on the December 31, 2023 Consolidated Balance Sheets.

Other investment securities decreased $51.91 million or 15.76% from year-end 2023, due mainly to a redemption of FHLB stock due to a decline in FHLB borrowings.

Total investment securities at December 31, 2025 increased $141.10 million or 4.33%.

Piedmont added $94.43 million in investment securities, including purchase accounting amounts, upon consummation of the acquisition.

Securities available for sale increased $99.73 million or 3.37%.

This change in securities available for sale reflects $92.99 million related to the acquisition of Piedmont, $2.26 billion in sales, maturities and calls of securities, $2.14 billion in purchases, and an increase of $117.56 million in market value.

Equity securities were $34.76 million at December 31, 2025, an increase of $13.70 million or 65.07% due mainly to a net increase in fair value.

Other investment securities increased $27.67 million or 9.97% from year-end 2024 due to an increase in Federal Reserve Bank stock as a result of the Piedmont acquisition and net purchases of investment tax credits.

The following table summarizes the changes in the available for sale securities since year-end 2024:

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At December 31, 2025, gross unrealized losses on available for sale securities were $216.64 million.

Securities with the most significant gross unrealized losses at December 31, 2024 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities and other corporate securities.

Securities with the most significant gross unrealized losses at December 31, 2025 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities and corporate securities.

As of December 31, 2025, United’s available for sale mortgage-backed securities had an amortized cost of $1.93 billion, with an estimated fair value of $1.79 billion.

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United’s available for sale single issue trust preferred securities had a fair value of $12.66 million as of December 31, 2025.

Of the $11.92 million, $7.32 million, or 61.44%, were investment grade and $4.60 million, or 38.56%, were unrated.

The portfolio consists of two exposures, with Truist Bank at $7.32 million and Emigrant Bank at $4.60 million.

Of the $12.66 million, $7.42 million or 58.58% were investment grade rated and $5.24 million or 41.42% were unrated.

The two largest exposures accounted for 100% of the $12.66 million.

These included Truist Bank at $7.42 million and Emigrant Bank at $5.24 million.

All single issue trust preferred securities are currently receiving full scheduled principal and interest payments.

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However, United acknowledges that any securities in an unrealized loss position may be sold in future periods in response to significant, unanticipated changes in asset/liability management decisions, unanticipated future market movements or business plan changes.

During 2024, United sold approximately $470 million of available for sale securities at a loss of $16.30 million.

Further information regarding the amortized cost and estimated fair value of investment securities, including remaining maturities as well as a more detailed discussion of management’s impairment analysis, is presented in Note C, Notes to Consolidated Financial Statements.

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Loan sales in the secondary market exceeded originations during the year of 2025.

Loan originations for the year of 2024 were $645.94 million while loans sales were $657.84 million.

Loan originations for the year of 2025 were $370.86 million while loan sales were $383.94 million.

Portfolio Loans

Loans, net of unearned income, increased $314.41 million or 1.47%.

Since year-end 2023, commercial, financial and agricultural loans decreased $8.01 million or less than 1% as a result of a $213.07 million or 2.56% increase in commercial real estate loans, which was mostly offset by a $221.08 million or 6.19% decrease in commercial loans (not secured by real estate).

Residential real estate loans increased $236.15 million or 4.48% and construction and land development loans increased $360.79 million or 11.46%.

Consumer loans decreased $281.62 million or 26.45% due to a decrease in indirect automobile financing.

Loans, net of unearned income, increased $3.04 billion or 14.01% mainly as a result of the Piedmont acquisition which added $2.02 billion, including purchase accounting amounts, in portfolio loans.

Otherwise, portfolio loans and leases, net of unearned income, grew $1.04 billion from year-end 2024.

Since year-end 2024, commercial, financial and agricultural loans increased $2.39 billion or 20.14% as a result of a $1.96 billion or 22.98% increase in commercial real estate loans and a $433.47 million or 12.93% increase in commercial loans (not secured by real estate).

Residential real estate loans increased $590.88 million or 10.73% and construction and land development loans increased $61.87 million or 1.76%, while consumer loans remained flat, decreasing $5.89 million or less than 1%.

The following table summarizes the changes in the major loan classes since year-end 2024:

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Total residential real estate

(In thousands)

Fifteen Years

Outstanding with fixed interest rates

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More information relating to loans is presented in Note D, Notes to Consolidated Financial Statements.

Other assets decreased $6.77 million or 2.45% from year-end 2023.

Deferred tax assets decreased $3.43 million due to an increase in the fair value and sales of AFS securities, dealer reserve decreased $7.82 million due to a decrease in indirect automobile financing, accounts receivable decreased $4.56 million due to timing differences, core deposit intangibles decreased $3.64 million due to amortization, and OREO properties decreased $2.29 million due to sales of consumer OREO properties.

Partially offsetting these decreases in other assets was a $14.65 million increase in the pension asset.

Bank-Owned Life Insurance

The cash surrender value of bank-owned life insurance policies increased $49.95 million, of which $40.80 million was acquired from Piedmont while the remaining increase was due to an increase in the cash surrender value as a result of higher market values of underlying investments.

Other assets increased $31.76 million or 11.78% from year-end 2024.

In particular, core deposit intangibles increased $23.40 million as the Piedmont acquisition added $32.76 million.

Prepaid assets increased $13.54 million mainly due to a $9.42 million increase in the pension asset and OREO increased $8.53 million.

Partially offsetting these increases in other assets was a $18.20 million decrease in deferred tax assets due an increase in fair value of securities and a $1.32 million decrease in accounts receivable.

Deposits represent United’s primary source of funding.

Total deposits at December 31, 2024 increased $1.14 billion or 5.01%.

In terms of composition, noninterest-bearing deposits decreased $13.67 million or less than 1% while interest-bearing deposits increased $1.16 billion or 6.94% from December 31, 2023.

Total deposits at December 31, 2025 increased $3.10 billion or 12.93% due mainly to the Piedmont acquisition.

Piedmont added $2.11 billion in deposits, including purchase accounting amounts.

In terms of composition, noninterest-bearing deposits increased $438.22 million or 7.14% ($378.24 million added from Piedmont acquisition) while interest-bearing deposits increased $2.66 billion or 14.93% ($1.73 billion added from Piedmont acquisition) from December 31, 2024.

Organically, deposits grew $993.74 million from year-end 2024.

Noninterest-bearing deposits consist of demand deposit and noninterest bearing money market (“MMDA”) account balances.

The $13.67 million decrease in noninterest-bearing deposits was due mainly to a $37.19 million decrease in commercial noninterest-bearing deposits and a $57.56 million decrease in in-process items.

Partially offsetting these decreases in noninterest-bearing deposits were increases of $26.27 million and $19.92 million in personal and public noninterest-bearing deposits, respectively, and an increase of $30.11 million in official checks.

Interest-bearing deposits consist of interest-bearing transaction, regular savings, interest-bearing MMDA, and time deposit account balances.

Interest-bearing transaction accounts increased $288.79 million or 5.11% since year-end 2023.

In particular, commercial interest-bearing transaction accounts increased $414.86 million and public interest-bearing transaction accounts increased $6.03 million while personal interest-bearing transaction accounts decreased $132.10 million.

Regular savings accounts decreased $94.96 million or 7.06% mainly as a result of a $77.10 million decrease in personal savings accounts and a $19.91 million decrease in commercial savings accounts.

The $438.22 million increase in noninterest-bearing deposits was due to a $327.80 million or 7.36% increase in commercial noninterest-bearing deposits, a $134.16 million or 9.46% increase in personal noninterest-bearing deposits, and a $25.22 million or 14.21% increase in public funds noninterest-bearing deposits.

Partially offsetting these increases in noninterest-bearing deposits was a $26.28 million decrease in official checks.

Interest-bearing deposits consist of interest-bearing transactions, regular savings, interest-bearing MMDA, and time deposit account balances.

Interest-bearing transaction accounts increased $720.85 million or 12.14% since year-end 2024 as the result of increases of $602.48 million in commercial interest-bearing transaction accounts and $92.47 million in public funds interest-bearing transaction accounts.

Regular savings accounts increased $15.04 million or 1.20% mainly as a result of a $17.21 million increase in personal savings accounts.

Interest-bearing MMDAs increased $778.90 million or 11.04%.

In particular, commercial MMDAs increased $511.19 million while personal MMDAs and public funds MMDAs increased $162.06 million and $34.20 million, respectively.

In particular, personal MMDAs increased $62.15 million while commercial MMDAs and public funds MMDAs increased $655.60 million and $61.15 million, respectively.

Time deposits under $100,000 increased $191.42 million or 16.33% from year-end 2024.

This increase in time deposits under $100,000 was the result of a $119.22 million increase in fixed rate Certificates of Deposits (“CDs”) under $100,000.

Partially offsetting this increase in deposits under $100,000 was a $5.69 million decrease in CDs under $100,000 obtained through the use of deposit listing services.

Since year-end 2023, time deposits over $100,000 increased $148.57 million or 6.57% as fixed rate CDs increased $375.07 million and public funds CDs increased $45.68 million.

Partially offsetting these increases in time deposits over $100,000, was a decrease of $272.13 million in brokered CDs.

This increase in time deposits under $100,000 was the result of a $162.18 million increase in fixed rate Certificates of Deposits (“CDs”) under $100,000 and a $31.30 million increase in variable rate CDs.

Since year-end 2024, time deposits over $100,000 increased $954.66 million or 39.61% as fixed rate CDs increased $874.61 million, variable rate CDs increased $21.26 million, and public funds CDs over $100,000 increased $51.05 million.

The table below summarizes the changes by deposit category since year-end 2024:

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Time deposits

More information relating to deposits is presented in Note K, Notes to Consolidated Financial Statements.

Total borrowings at December 31, 2024 decreased $1.27 billion or 63.91% since year-end 2023.

During the year of 2024, short-term borrowings decreased $20.01 million or 10.20% due to a decrease in securities sold under agreements to repurchase.

Long-term borrowings decreased $1.25 billion or 69.79% from year-end 2023 due to maturities of advances obtained from the FHLB during the year of 2024.

More information relating to deposits is presented in Note J, Notes to Consolidated Financial Statements.

Total borrowings at December 31, 2025 increased $13.88 million or 1.94% since year-end 2024.

Piedmont added $20.00 million of subordinated debt upon consummation of the acquisition which was redeemed during the third quarter of 2025.

During 2025, short-term borrowings increased $22.48 million or 12.77% due to an increase in securities sold under agreements to repurchase.

Long-term borrowings decreased $8.60 million or 1.59% from year-end 2024 as a result of a $10.20 million reduction in long-term FHLB advances.

The table below summarizes the change in the borrowing categories since year-end 2024:

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Total borrowings

For a further discussion of borrowings see Notes L and M, Notes to Consolidated Financial Statements.

For a further discussion of borrowings see Notes K and L, Notes to Consolidated Financial Statements.

Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at December 31, 2025 increased $12.23 million or 5.31% from year-end 2024.

In particular, other accrued expenses increased $10.96 million due to the accrual associated with housing tax credits, incentives payable increased $2.93 million due to timing differences, deferred compensation increased $3.20 million, and business franchise taxes increased $1.26 million due to timing differences.

Partially offsetting these increases in accrued expenses and other liabilities was a $1.12 million decrease in accrued loan expenses and a $5.24 million decrease in other miscellaneous liabilities.

Piedmont added $20.79 million.

In particular, interest payable increased $2.04 million due to an increase in CDs, accrued loan expenses increased $2.20 million due to an increase in the loan portfolio, incentives payable increased $5.04 million, deferred compensation increased $4.28 million and dividends payable increased $3.00 million.

Partially offsetting these increases in accrued expense and other liabilities was a decrease of $5.91 million in other accrued expenses due to timing differences.

Shareholders’ Equity

Shareholders’ equity at December 31, 2024 was $4.99 billion, which was an increase of $221.98 million or 4.65% from year-end 2023.

Shareholders’ equity at December 31, 2025 was $5.50 billion, which was an increase of $502.76 million or 10.07% from year-end 2024, mainly as the result of the Piedmont acquisition and net earnings.

The Piedmont transaction added approximately $280.95 million in shareholders’ equity as 7,860,831 shares were issued from United’s authorized but unissued shares for the merger at a cost of $280.95 million.

Retained earnings increased $252.60 million or 13.17% from year-end 2024.

Earnings net of dividends for the year of 2025 were $252.60 million.

Accumulated other comprehensive income increased $35.78 million or 13.78% from year-end 2023 due to an increase of $30.85 million in the fair value of United’s available for sale investment portfolio, net of deferred income taxes.

In addition, the after-tax amortization of the pension net actuarial loss was $9.40 million while the after-tax accretion of pension costs was $1.78 million for the year of 2024.

Accumulated other comprehensive income increased $84.98 million or 37.95% from year-end 2024 due mainly to an increase of $89.47 million in the fair value of United’s available for sale investment portfolio, net of deferred income taxes.

In addition, the after-tax pension net actuarial gain was $5.40 million.

Partially offsetting these increases was a decrease of $9.94 million in the fair value of cash flow hedges, net of deferred income taxes.

During the first quarter of 2025, United restarted repurchasing its common stock on the open market under a repurchase plan approved by United’s Board of Directors.

United repurchased 3,587,948 shares during 2025 at a cost of $126.45 million or an average share price of $35.24.

RESULTS OF OPERATIONS

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Net income for the year 2025 was $464.60 million or $3.27 per diluted share, an increase of $91.61 million or 24.56% from $373.00 million or $2.75 per diluted share for the year of 2024.

Higher net income for the year 2024 compared to the year of 2023 was primarily driven by lower noninterest expense, provision for credit losses and income tax expense partially offset by lower net interest income and lower noninterest income.

As previously mentioned, on January 10, 2025, United announced the consummation of its merger with Piedmont.

Expenses of $2.87 million related to the Piedmont acquisition were recorded in the year of 2024.

During the year of 2024, United sold approximately $470 million of AFS investment securities at a loss of $16.30 million.

Additionally, United recognized a net gain of $7.09 million on the sale of its remaining mortgage rights (“MSRs”) associated with a loan portfolio of $1.12 billion, a gain of $6.85 million on a VISA share exchange and $1.72 million gain on the fair value of an equity security.

As previously mentioned, United completed its acquisition of Piedmont on January 10, 2025.

The financial results of Piedmont are included in United’s results from the acquisition date.

As a result of the acquisition, the year of 2025 was impacted for nearly twelve months by increased levels of average balances, income, and expense as compared to the year of 2024.

In addition, United recorded acquisition-related costs for the Piedmont merger of $31.41 million for the year of 2025, including a provision for credit losses of $18.73 million for purchased non-PCD loans recorded in the first quarter of 2025, as compared to $2.87 million for the year of 2024.

United’s return on average assets for the year of 2025 was 1.41% and the return on average shareholders’ equity was 8.63% as compared to 1.26% and 7.61% for the year of 2024.

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Return on Tangible Equity (non-GAAP) [(a) / (b)]

Net interest income for the year of 2024 was $911.07 million which was relatively flat from the prior year, decreasing $8.86 million or less than 1%.

The slight decrease of $8.86 million in net interest income occurred because total interest income increased $100.80 million while total interest expense increased $109.66 million from the year of 2023.

Generally, interest income increased in 2024 due to the impact of rising market interest rates on earning assets, loan growth and a change in the asset mix to higher earning assets while interest expense increased mainly due to higher funding costs as a result of the rising market interest rates on higher interest-bearing balances.

Net interest income for the year of 2025 increased $191.10 million or 20.97% from the year of 2024.

The increase of $191.10 million in net interest income occurred because total interest income increased $183.73 million while total interest expense decreased $7.36 million from the year of 2024.

The provision for credit losses was $53.87 million for the year 2025 as compared to $25.15 million for the year 2024.

Noninterest income was $123.70 million for the year of 2024, which was a decrease of $11.56 million or 8.55% from the year of 2023.

Noninterest expense for the year of 2024 was $545.03 million, which was a decrease of $15.19 million from the year of 2023.

The increase in the provision for credit losses for the year of 2025 was mainly due to the previously mentioned $18.73 million of provision recorded on purchased non-PCD loans from Piedmont.

Noninterest income was $135.15 million for the year of 2025, which was an increase of $11.46 million or 9.26% from the year of 2024.

Noninterest expense for the year of 2025 was $600.05 million, which was an increase of $55.02 million or 10.10% from the year of 2024.

Income taxes for the year of 2025 were $118.80 million as compared to $91.58 million for the year of 2024.

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Such changes, and their impact on net interest income in 2025 and 2024, are presented below.

Net interest income for the year of 2024 was $911.07 million which was relatively flat from the year of 2023, decreasing $8.86 million or less than 1%.

The $8.86 million decrease in net interest income occurred because total interest income increased $100.80 million while total interest expense increased $109.66 million from the year of 2023.

Net interest income for the year of 2025 was $1.10 billion which was an increase of $191.10 million or 20.97% from the year of 2024.

The $191.10 million increase in net interest income occurred because total interest income increased $183.73 million while total interest expense decreased $7.36 million from the year of 2024.

For the purpose of this remaining discussion, net interest income is presented on a tax-equivalent basis to provide a comparison among all types of interest earning assets.

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United uses this measure to monitor net interest income performance and to manage its balance sheet composition.

Tax-equivalent net interest income for the year of 2024 decreased $9.51 million, or 1.04%, from the year of 2023.

The decrease in tax-equivalent net interest income was primarily due to higher interest expense driven by deposit rate repricing, an increase in average interest-bearing deposits, and a decrease in acquired loan accretion income.

These decreases were partially offset by a higher yield on average net loans, loan growth, and a decrease in average long-term borrowings.

The cost on average interest-bearing deposits increased 66 basis points from the year of 2023.

Average interest-bearing deposits increased $1.39 billion from the year of 2023.

Acquired loan accretion income for year of 2024 of $9.26 million was a decrease of $2.28 million from the year of 2023.

The yield on average earning assets increased 33 basis points from the year of 2023 to 5.74% driven by an increase in the yield on average net loans of 28 basis points.

Average net loans increased $683.67 million from the year of 2023.

Average long-term borrowings decreased $906.10 million from the year of 2023.

Additionally, average investment securities decreased $790.73 million, or 17.89%, from the year of 2023 while the yield on average investment securities increased 25 basis points from the year of 2023.

The net interest margin for the year of 2024 and 2023 was 3.49% and 3.56%, respectively.

Tax-equivalent net interest income for the year of 2025 increased $190.88 million, or 20.87%, from the year of 2024.

The increase in tax-equivalent net interest income was primarily due to an increase in average earning assets, a lower average rate paid on deposits, an increase in acquired loan accretion income, and a decrease in average long-term borrowings.

These increases to net interest income and tax-equivalent net interest income were partially offset by an increase in average interest-bearing deposits.

Average earning assets increased $2.99 billion, or 11.42%, from the year of 2024, driven by increases in average net loans of $2.48 billion and average short-term investments of $896.61 million, partially offset by a decrease in average investment securities of $385.87 million.

The cost of average interest-bearing deposits decreased 35 basis points from the year of 2024.

Acquired loan accretion income was $33.70 million for the year of 2025 as compared to $9.26 million for the year of 2024.

Average long-term borrowings decreased $472.63 million, or 46.44%, from the year of 2024.

Average interest-bearing deposits increased $2.69 billion, or 15.64%, from the year of 2024.

The net interest margin of 3.78% for the year of 2025 was an increase of 29 basis points from the net interest margin of 3.49% for the year of 2024.

United’s tax-equivalent net interest income also includes the impact of acquisition accounting fair value adjustments.

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United’s provision for credit losses relates to its portfolio of loans and leases and held to maturity securities which are discussed in more detail in the following paragraphs.

The provision for loan and lease losses for the year of 2024 was $25.15 million as compared to $31.15 million for the year of 2023.

The lower amount of provision expense for the year of 2024 compared to the year of 2023 was mainly due to less severe reasonable and supportable forecast assumptions regarding future economic expectations in 2024 as compared to 2023.

Net charge-offs for the year of 2024 were $12.55 million as compared to $ 6.66 million for the year of 2023.

The higher amount of net charge-offs for the year of 2024 as compared to the year of 2023 was primarily due to increased charge-offs within the commercial real estate nonowner-occupied and consumer loan portfolios.

Net charge-offs as a percentage of average loans and leases were 0.06% and 0.03% for the year of 2024 and 2023, respectively.

The provision for loan and lease losses for the year of 2025 was $53.87 million as compared to a provision for loan and lease losses of $25.15 million for the year of 2024.

The higher amount of provision expense for the year of 2025 compared to the year of 2024 was mainly due to the previously mentioned provision expense of $18.73 million recorded for purchased non-PCD loans from Piedmont as well as increased provision for the commercial real estate non-owner occupied (“CRE NOO”) loan segment.

Net charge-offs for the year of 2025 were $45.71 million as compared to net charge-offs of $12.55 million for the year of 2024.

During the year of 2025, United recorded $21.77 million of charge-offs reflecting updated collateral valuations on two CRE NOO loans associated with the same sponsor downgraded to nonaccrual status.

The loans, originated in 2018 and 2019, are collateralized by office buildings in Northern Virginia and include a full guarantee from the sponsor.

During the third quarter of 2025, the sponsor experienced a significant deterioration in financial condition and concerns arose regarding the sponsor’s ability to support the credits on a long-term basis.

In addition, the higher amount of net charge-offs for the year of 2025 as compared to the same time period in 2024 was primarily due to additional charge-offs within the CRE NOO loan segment.

The following table shows a summary of United’s nonperforming assets including nonperforming loans and other real estate owned (“OREO”) at December 31, 2025 and December 31, 2024:

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Nonaccrual loans

Loans past due 90 days of more

Loans past due 90 days or more

Total nonperforming loans

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At December 31, 2025, the allowance for loan and lease losses was $297.52 million as compared to $271.84 million at December 31, 2024.

The increase in the allowance for loan and lease losses was primarily driven by increased outstanding loan balances for the real estate construction and development and residential real estate portfolios as well as increased reasonable and supportable forecast adjustments for the commercial real estate nonowner-occupied office portfolio.

The increase in the allowance for loan and lease losses was primarily driven by allowances recorded for purchased credit deteriorated loans (“PCD”) and non-PCD loans acquired from Piedmont, increased outstanding loan balances for the commercial real estate nonowner-occupied portfolio and residential real estate segments as well as a change in the reasonable and supportable forecast adjustments for the commercial real estate nonowner-occupied segment partially offset by a decline in the allowance allocated to individually assessed loans.

As a percentage of loans and leases, net of unearned income, the allowance for loan losses was 1.20% at December 31, 2025 and 1.25% at December 31, 2024.

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The decrease in this ratio was due to a larger increase in nonperforming loans than the allowance for loan losses.

The following table summarizes United’s credit loss experience for loan and leases losses, based on loan categories, for the year of 2024 and 2023:

Nonperforming loans increased $28.07 million or 38.24% while the allowance for loan losses increased $25.68 million or 9.44%.

The following table summarizes United’s credit loss experience for loan and leases losses, based on loan categories, for the years of 2025 and 2024:

(Dollars in thousands)

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Loans & leases charged off

Net loans & leases charged off (recovered)

Net loans & leases recovered

Average gross loans & leases outstanding

Net (recoveries) charge-offs as a percentage of average gross loans & leases

Net recoveries as a percentage of average gross loans & leases outstanding

Nonowner-occupied commercial real estate

Loans & leases charged off

Net loans & leases (recovered) charged off

Net loans & leases charged off

Average gross loans & leases outstanding

Net charge-offs (recoveries) as a percentage of average gross loans & leases outstanding

Net charge-offs as a percentage of average gross loans & leases outstanding

Other Commercial

Loans & leases charged off

Net loans & leases charged off (recovered)

Net loans & leases charged off

Average gross loans & leases outstanding

(Dollars in thousands)

Net charge-offs as a percentage of average gross loans & leases outstanding

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Loans & leases charged off

(Dollars in thousands)

Net loans & leases charged off

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Loans & leases charged off

Net loans & leases recovered

Net loans & leases charged-off (recovered)

Average gross loans & leases outstanding

Net (recoveries) charge-offs as a percentage of average gross loans & leases outstanding

Net charge-offs (recoveries) as a percentage of average gross loans & leases outstanding

Loans & leases charged off

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past due, nonaccrual and adversely classified loans and leases;

external environment;

and concentrations of credit.

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Assumptions for the economic variables were the following:

The forecast for real GDP shifted slightly in the fourth quarter, from a projection of 2.00% for 2025 as of mid-September 2024 to 2.10% for 2025 as of mid-December with a projection of 2.00% for 2026.

The unemployment rate forecast also shifted slightly in the fourth quarter from a projection of 4.40% for 2025 as of mid-September 2024 to 4.30% for 2025 as of mid-December with a projection of 4.30% for 2026.

The forecast for real GDP improved in the fourth quarter, from a projection of 1.80% for 2026 as of mid-September 2025 to 2.30% for 2026 as of mid-December with a projection of 2.00% for 2027.

The unemployment rate forecast remained consistent in the fourth quarter with a projection of 4.40% for 2026 as of mid-September 2025 and as of mid-December with a projection of 4.20% for 2027.

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

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United’s review of the allowance for loan and lease losses at December 31, 2025 produced increased reserves in three of the four loan categories as compared to December 31, 2024.

The allowance related to the commercial, financial & agricultural loan pool, consisting of the owner and non-owner occupied commercial real estate and other commercial loan segments, increased $6.64 million due to increased reasonable and supportable forecast adjustments particularly as it pertains to office loans.

The balance of office loans at December 31, 2024 totaled approximately $950 million or 13.7% of nonowner-occupied commercial real estate loans or 4.4% of loans and leases, net of unearned income.

The top forty

office loans make up approximately 68% of the balance of nonowner-occupied commercial real estate office loans.

The weighted average loan-to-value (“LTV”) based on current loan balances and appraised values at origination date for the top forty office loans was approximately 56% at December 31, 2024.

The weighted average LTV at origination date for the top forty office loans was approximately 63%.

United has been disciplined in its approach to underwriting office loans with a stringent underwriting process focusing on the underlying tenants, lease terms, sponsor support, location, property class and amenities.

The residential real estate segment reserve increased $5.21 million due primarily to increased outstanding balances.

The real estate construction and development loan segment reserve increased $3.71 million due to increased outstanding balances.

The consumer loan segment reserve decreased $2.95 million primarily due to a decrease in outstanding balances.

The allowance related to the commercial, financial & agricultural loan pool, consisting of the owner and non-owner occupied commercial real estate and other commercial loan segments, increased $20.53 million due to the first quarter acquisition of Piedmont and increased outstanding balances as well as increased allocations for the reasonable and supportable forecast adjustment.

The residential real estate loan segment reserve increased $7.58 million due to increased outstanding balances with the acquisition of Piedmont and the annual evaluation of delay periods utilized in the historical loss rate calculation.

The consumer loan segment reserve increased $3.22 million primarily due to an increase in the quarterly maximum loss experience utilized within the reasonable and supportable forecast adjustment.

The real estate construction and development loan segment reserve decreased $5.65 million due to reduced concern over collateral values and improvement in expectations for the reasonable and supportable forecast adjustment as well as reduction of the average loss experience in the forecast analysis over the next eight quarters.

An allowance is established for estimated lifetime losses for loans that are individually assessed.

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The allowance for loans and leases that were individually assessed was $8.04 million at December 31, 2025 and $11.21 million at December 31, 2024.

In comparison to the prior year-end, this element of the allowance decreased $1.94 million due to liquidation of collateral securing a commercial relationship which has reduced the balance outstanding for the relationship as well as the loss potential requiring individually assessed reserves.

In comparison to the prior year-end, this element of the allowance decreased $3.17 million due to the liquidation of collateral securing several commercial relationships which reduced the balance outstanding for the relationships as well as the loss potential requiring individually assessed reserves.

There were collateral weaknesses identified in several relationships which necessitated additional individually assessed reserves that offset part of the reductions from collateral liquidation.

Management believes that the allowance for credit losses of $332.59 million at December 31, 2025 is adequate to provide for expected losses on existing loans and lending-related commitments based on information currently available.

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There was no provision for credit losses recorded on available for sale investment securities for the year of 2025 and 2024 and no allowance for credit losses on available for sale investment securities as of December 31, 2025 and 2024.

Management is not aware of any potential problem loans or leases, trends or uncertainties, which it reasonably expects, will materially impact future operating results, liquidity, or capital resources which have not been disclosed.

Management is not aware of any potential problem loans or leases, trends or uncertainties, that it reasonably expects, will materially impact future operating results, liquidity, or capital resources that have not been disclosed.

Other income consists of all revenues, which are not included in interest and fee income related to earning assets.

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Recognizing the importance, management continues to evaluate areas where noninterest income can be enhanced.

Noninterest income for the year of 2024 was $123.70 million, which was a decrease of $11.56 million or 8.55% from the year of 2023.

This decrease was driven by decreases in mortgage loan servicing income and mortgage banking income partially offset by an increase in fees from brokerage services and higher income from bank-owned life insurance.

For the year of 2024, net losses on investment securities were $7.72 million as compared to net losses on investment securities of $7.65 million for the year of 2023.

The net losses in 2024 were mainly due a loss of $16.30 million during the year of 2024 as United sold approximately $470 million of AFS investment securities.

Additionally,

during the year of 2024, United recognized a $6.85 million gain on the VISA share exchange and a $1.72 million change in fair value gain on an equity security.

In the year of 2023, United sold approximately $187 million of AFS investment securities resulting in a net loss of $7.24 million.

United did not recognize any impairment on investment securities for the year of 2024 and 2023.

Noninterest income for the year of 2025 was $135.15 million, which was an increase of $11.46 million or 9.26% from the year of 2024.

This increase in noninterest income was driven by net gains on investment securities for the year of 2025 as compared to net losses on investment securities for the year of 2024 and increases in fees from brokerage services, income from bank-owned life insurance (“BOLI”), and fees from deposit services.

Partially offsetting these increases in noninterest income were decreases in mortgage loan servicing income and income from mortgage banking activities.

For the year of 2025, net gains on investment securities were $11.17 million as compared to net losses on investment securities of $7.72 million for the year of 2024.

The net gains on investment securities of $11.17 million for the year of 2025 were primarily due to a net unrealized fair value gain on equity securities.

The net losses on investment securities of $7.72 million for the year of 2024 included $16.30 million in losses on sales and calls of available for sale (“AFS”) investment securities partially offset by a $6.85 million gain on the VISA share exchange and a $1.72 million gain on a change in fair value of an equity security.

United did not recognize any impairment on investment securities for the years of 2025 and 2024.

Fees from brokerage services for the year of 2025 increased $2.45 million or 12.09%, from the year of 2024.

The increase was primarily due to higher volume.

Fees from deposit services for the year of 2025 increased $1.82 million or 4.87% from the year of 2024.

In particular, debit card, overdraft, and account analysis fees increased for the year of 2025 as compared to the year of 2024.

Income from mortgage banking activities totaled $9.57 million for the year of 2025 compared to $16.06 million for the year of 2024.

2 unchanged sentences

Mortgage loans originated for sale were $370.86 million for the year of 2025 as compared to $645.94 million for the year of 2024.

Mortgage loan servicing income for the year of 2024 decreased $4.79 million or 34.83% from the year of 2023.

The year of 2024 included the $7.09 million net gain on the sale of MSRs while the year of 2023 included net gains on the sale of MSRs of $8.31 million.

In addition, mortgage loan servicing income declined in the year of 2024 due to lower mortgage balances serviced since the sale of the MSRs in 2023 and 2024.

Fees from brokerage services for the year of 2024 increased $3.37 million or 19.90%, from the year of 2023.

The increase was primarily due to higher volume.

Fees from trust services for the year of 2024 were $19.45 million, an increase of $1.13 million or 6.18% from the year of 2023 due to an increase in managed assets.

Income from bank-owned life insurance (“BOLI”) for the year of 2024 increased $2.90 million or 34.75% from the year of 2023.

This increase was due mainly to an increase in the cash surrender value of insurance policies as well as death proceeds of $1.39 million recognized in 2024.

Death benefits were $571 thousand for the year of 2023.

Other income for the year of 2024 decreased $3.34 million or 30.16% from the year of 2023.

Included in the year of 2023 was a gain of $2.66 million from the payoff of a fixed rate commercial loan that had an associated interest rate swap.

Mortgage loan servicing income for the year of 2025 decreased $8.96 million from the year of 2024.

This 100% decrease in 2025 from the same time period in 2024 was due to the sale of United’s remaining mortgage servicing portfolio in the second half of 2024.

Income from bank-owned life insurance for the year of 2025 increased $1.97 million or 17.59% from the year of 2024.

These increases were primarily due to death proceeds of $1.28 million in the year of 2025 as well as income from the bank-owned life insurance policies added from the Piedmont acquisition and an increase in the cash surrender values primarily due to the impact of higher market values of underlying investments.

Other Expense

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Other expense includes all items of expense other than interest expense, the provision for credit losses and income tax expense.

Noninterest expense for the year of 2024 was $545.03 million, which was a decrease of $15.19 million or 2.71% from the year of 2023 driven by decreases in FDIC insurance expense, mortgage loan servicing expense and impairment, OREO expense and other noninterest expense.

Partially offsetting these decreases were increases in employee benefits expense and employee compensation expense.

OREO expense for the year of 2024 decreased $779 thousand or 57.49% from the year of 2023 due mainly to fewer declines in the fair value of OREO properties.

Mortgage loan servicing expense and impairment for the year of 2024 decreased $2.90 million or 51.86% from the year of 2023.

The decrease was due primarily to a lower amount of mortgage loans serviced as a result of the sale of MSRs in 2024 and 2023.

FDIC expense for the year of 2024 decreased $10.64 million or 35.03% from the year of 2023.

The decrease in FDIC insurance expense was driven by $11.99 million of expense recognized in 2023 as compared to $1.51 million of expense recognized in 2024 for a FDIC special assessment levied on banking organizations to recover losses to the Deposit Insurance Fund.

Employee compensation for the year of 2024 increased $3.81 million or 1.65% from the year of 2023.

The increase in employee compensation was driven by higher employee incentives, base salaries and employee severance related to the consolidation of the mortgage delivery channels.

Partially offsetting these increases was a decrease in commissions related to lower mortgage banking production.

Employee benefits expense for the year of 2024 increased $5.25 million or 10.86% as compared to the year of 2023.

For the year of 2024, postretirement expense, which includes expense associated with United’s pension plan, non-qualified deferred compensation plan, supplemental early retirement plans (“SERPs”) and Savings and Stock Investment Plan (“401K plan”), increased $5.58 million from the year of 2023.

United uses certain valuation methodologies to measure the fair value of the assets within United’s pension plan which are presented in Note P, Notes to Consolidated Financial Statements.

The funded status of United’s pension plan is based upon the fair value of the plan assets compared to the projected benefit obligation.

Noninterest expense for the year of 2025 was $600.05 million, which was an increase of $55.02 million or 10.10% from the year of 2024.

Generally, these increases related primarily to the expenses associated with the additional employees and branch offices from the Piedmont acquisition.

In addition, merger-related expenses within the non-interest expense category from the Piedmont acquisition increased $4.14 million for the year of 2025 from the year of 2024.

Employee compensation for the year of 2025 increased $17.44 million or 7.43% from the year of 2024, due primarily to the additional employees from the Piedmont acquisition as well as higher employee incentives.

In addition, $1.46 million in merger-related expenses were recognized in the year of 2025.

Employee benefits expense for the year of 2025 increased $712 thousand or 1.33% from the year of 2024.

This increase was primarily due to increased health insurance costs due to a higher amount of claims and the additional employees from the Piedmont acquisition partially offset by a decline in expenses for postretirement benefits.

For the year of 2025, postretirement expense, which includes expense associated with United’s pension plan, non-qualified deferred compensation plan, supplemental early retirement plans (“SERPs”) and Savings and Stock Investment Plan (“401K plan”), decreased $6.24 million from the year of 2024.

United uses certain valuation methodologies to measure the fair value of the assets within United’s pension plan which are presented in Note O, Notes to Consolidated Financial Statements.

The funded status of United’s pension plan is based upon the fair value of the plan assets compared to the

projected benefit obligation.

The determination of the projected benefit obligation and the associated periodic benefit expense involves significant judgment and estimation of future employee compensation levels, the discount rate and the expected long-term rate of return on plan assets.

If United assumes a 1% increase or decrease in the estimation of future employee compensation levels while keeping all other assumptions constant, the benefit cost associated with the pension plan would increase by approximately $576 thousand and decrease by approximately $289 thousand, respectively.

If United assumes a 1% increase or decrease in the discount rate while keeping all other assumptions constant, the benefit cost associated with the pension plan would decrease by approximately $2.13 million and increase by approximately $2.58 million, respectively.

If United assumes a 1% increase or decrease in the discount rate while keeping all other assumptions constant, the benefit cost associated with the pension plan would increase by approximately $59 thousand and increase by approximately $2.34 million, respectively.

If United assumes a 1% increase or decrease in the expected long-term rate of return on plan assets while keeping all other assumptions constant, the benefit cost associated with the pension plan would decrease by and increase by approximately $1.80 million and $1.80 million, respectively.

Other expense for the year of 2024 decreased $10.08 million or 7.41% from the year of 2023.

Within other expenses, the most significant decrease was $8.31 million in the expense for the reserve for unfunded loan commitments.

In addition, amortization of intangibles declined $1.48 million, consulting and legal expense decreased $1.27 million and advertising expense decreased $994 thousand.

Partially offsetting these decreases were increases in the merger expenses of $2.87 million as well as higher amounts of certain other general operating expenses.

For the year ended December 31, 2024, income taxes were $91.58 million, compared to $97.49 million for 2023, a decrease of $5.91 million or 6.06%.

This decrease was primarily due to the impact of discrete tax benefits recognized in the second quarter of 2024.

Net occupancy for the year of 2025 increased $3.71 million or 8.05% from the year of 2024.

This increase was due mainly to increased building maintenance, depreciation and utilities costs primarily as a result of the Piedmont acquisition.

Equipment expense for the year of 2025 increased $5.23 million or 17.62% from the year of 2024.

This increase was due to higher equipment maintenance and depreciation expense.

Data processing expense for the year of 2025 increased $2.98 million or 10.04% from the year of 2024 due to increased data processing requirements resulting from the Piedmont acquisition.

Mortgage servicing and impairment expense for year of 2025 decreased $2.69 million from the year of 2024 due to the sale of the remaining loans serviced by United in 2024.

FDIC expense for the year of 2025 decreased $2.71 million or 13.75% from the year of 2024 primarily due to a decline in the special assessment resulting from the FDIC’s revised loss estimates to the Deposit Insurance Fund.

Other expense for the year of 2025 increased $30.27 million or 24.03% from the year of 2024.

Within other expense, merger-related expenses increased $4.14 million and the expense for the reserve for unfunded commitments increased $9.96 million, which included $4.06 million for the expense related to the reserve for the acquired unfunded loan commitments from Piedmont.

In addition, consulting and legal fees increased $5.67 million, amortization of investment tax credits increased $2.61 million, business franchise taxes increased $1.75 million and automated teller machine (“ATM”) fees increased $1.60 million.

Amortization of core deposit intangibles increased $5.72 million due mainly to the Piedmont acquisition.

For the year ended December 31, 2025, income taxes were $118.80 million, compared to $91.58 million for 2024, an increase of $27.21 million or 29.72%.

The increase of $27.21 million in income tax expense for the year of 2025 was due mainly to an increase in pre-tax earnings and a higher effective tax rate.

United’s effective tax rate was approximately 20.4% and 19.7% for years ended December 31, 2025 and 2024, respectively.

For further details related to income taxes, see Note O, Notes to Consolidated Financial Statements.

For further details related to income taxes, see Note N, Notes to Consolidated Financial Statements.

Quarterly Results

Net income for the first quarter of 2025 was $84.31 million as compared to earnings of $86.81 million for the first quarter of 2024.

Earnings for the first quarter of 2024, as compared to the first quarter of 2023, decreased primarily due to lower net interest income as a result of the impact of higher market interest rates on interest-bearing liabilities.

Diluted earnings per share were $0.59 for the first quarter of 2025 and $0.64 for the first quarter of 2024.

Net interest income for the first quarter of 2024 decreased $11.83 million, or 5.05%, to $222.49 million from net interest income of $234.32 million for the first three months of 2023.

The decrease of $11.83 million in net interest income occurred because total interest income increased $39.88 million while total interest expense increased $51.71 million from the first quarter of 2023.

As previously mentioned, United completed its acquisition of Piedmont on January 10, 2025.

The financial results of Piedmont are included in United’s results from the acquisition date.

As a result of the acquisition, the first quarter of 2025 was impacted for nearly three months of increased levels of average balances, income, and expense as compared to the first quarter of 2024.

In addition, United recorded acquisition-related costs for the Piedmont merger of $30.04 million, including a provision for credit losses of $18.73 million for purchased non-PCD loans for the first quarter of 2025.

Net interest income for the first quarter of 2025 increased $37.57 million, or 16.88% from the first quarter of 2024.

The increase of $37.57 million in net interest income occurred because total interest income increased $34.47 million while

total interest expense decreased $3.10 million from the first quarter of 2024.

The provision for credit losses was $29.10 million for the first quarter of 2025 as compared to a provision for credit losses of $5.74 million for the first quarter of 2024.

The decrease in the provision for credit losses was mainly due to a change in qualitative factors and the impact of reasonable and supportable forecasts of future macroeconomic conditions.

Noninterest income was $32.21 million for the first three months of 2024, a decrease of $532 thousand or 1.62% from the first three months of 2023 due mainly to a decrease in mortgage loan servicing income of $1.49 million partially offset by increased fees of $1.07 million from brokerage services.

Noninterest expense for the first quarter of 2024 was $140.74 million, an increase of $3.32 million or 2.42% from the first quarter of 2023 primarily due to increases in employee compensation and FDIC insurance expense partially offset by a decrease in other noninterest expense.

Income taxes decreased $3.04 million or 12.45% for the first three months of 2024 as compared to the first three months of 2023 primarily due to decreased earnings and a slightly lower effective tax rate.

United’s effective tax rate was 19.8% and 19.9% for the first quarter of 2024 and 2023, respectively.

The increase in the provision for credit losses was mainly due to the previously mentioned $18.73 million of provision recorded on purchased non-PCD loans from Piedmont.

For the first quarter of 2025, noninterest income decreased $2.66 million or 8.25% from the first quarter of 2024.

The decrease of $2.66 million was primarily due to a decrease in income from mortgage banking activities as a result of lower mortgage loan origination and sale volume.

Noninterest expense for the first quarter of 2025 increased $12.83 million or 9.12% from the first quarter of 2024.

The increase of $12.83 million was due mainly to $11.31 million of merger-related expenses incurred during the first quarter of 2025 from the Piedmont acquisition.

Income taxes increased $1.22 million or 5.71% for the first three months of 2025 as compared to the first three months of 2024 primarily due to a higher effective tax rate partially offset by lower earnings.

The effective tax rate was 21.16% and 19.78% for the first quarter of 2025 and 2024, respectively.

Net income for the second quarter of 2025 was $120.72 million, as compared to earnings of $96.51 million for the second quarter of 2024.

Earnings for the second quarter of 2024 as compared to the second quarter of 2023 increased primarily due to lower provision for credit losses and income tax expense.

Diluted earnings per share were $0.71 for the second quarter of 2024 and $0.68 for the second quarter of 2023.

As previously mentioned, United announced during the second quarter of 2024 that it entered into a definitive merger agreement with Piedmont.

Expenses of $1.27 million related to the announced Piedmont acquisition were recorded in the second quarter of 2024.

United also recognized a $6.87 million gain on a VISA share exchange during the second quarter of 2024, of which $4.65 million was realized through the sale of eligible shares and the remainder of which related to shares held at fair value at quarter-end.

Additionally, during the second quarter of 2024, United sold $102.72 million of AFS investment securities at a loss of $6.81 million.

The first quarter of 2024 included $1.81 million of noninterest expense related to the FDIC’s revised loss estimates to the Deposit Insurance Fund.

For the second quarter of 2024, United’s annualized return on average assets was 1.32% and return on average shareholders’ equity was 7.99% as compared to 1.26% and 7.96% for the second quarter of 2023.

Net interest income for the second quarter of 2024 was $225.72 million, which was relatively flat from the second quarter of 2023, decreasing $1.75 million or less than 1%.

The slight decrease of $1.75 million in net interest income occurred because total interest income increased $28.25 million while total interest expense increased $30.00 million from the second quarter of 2023.

The provision for credit losses was $5.78 million for the second quarter of 2024, respectively, while the provision for credit losses was $11.44 million for the second quarter of 2023.

The decrease in the provision for credit losses was mainly due to a more substantial increase in reserves for future expected losses in 2023 as compared to 2024.

For the second quarter of 2024, noninterest expense was relatively flat from the second quarter of 2023, decreasing $514 thousand or less than 1%.

Several categories of noninterest expense decreased which were largely offset by increases in other categories, none of which were significant.

Income taxes for the second quarter of 2024 were $18.88 million as compared to $23.45 million for the second quarter of 2023.

United’s effective tax rate was 16.4% and 20.2% for the second quarter of 2024 and second quarter of 2023, respectively.

As a result of the acquisition of Piedmont, the second quarter of 2025 was impacted for three months of increased levels of average balances, income, and expense as compared to the second quarter of 2024.

In addition, United recorded acquisition-related costs for the Piedmont merger of $1.32 million for the second quarter of 2025, as compared to $1.27 million for the second quarter of 2024.

Net interest income for the second quarter of 2025 increased $48.82 million, or 21.63% from the second quarter of 2024.

The increase of $48.82 million in net interest income occurred because total interest income increased $47.01 million while total interest expense decreased $1.81 million from the second quarter of 2024.

The provision for credit losses was $5.89 million for the second quarter of 2025 while the provision for credit losses was $5.78 million for the second quarter of 2024.

For the second quarter of 2025, noninterest income increased $1.24 million or 4.09% from the second quarter of 2024 due primarily to increased income from bank-owned life insurance policies due to the impact of higher market values of underlying investments and net proceeds from death benefits.

Noninterest expense for the second quarter of 2025 increased $13.25 million or 9.83% from the second quarter of 2024 due mainly to the additional employees and branches from the Piedmont acquisition.

Income taxes for the second quarter of 2025 were $31.37 million as compared to $18.88 million for the second quarter of 2024, primarily due to higher earnings and effective tax rate.

For the quarters ended June 30, 2025 and 2024, United’s effective tax rate was 20.62% and 16.36%, respectively.

Net income for the third quarter of 2025 was $130.75 million, as compared to earnings of $95.27 million for the third quarter of 2024.

Earnings for the third quarter of 2024 as compared to the third quarter of 2023 decreased primarily due to higher provision for credit losses and lower noninterest income partially offset by a higher net interest income and a lower income tax expense.

As a result of the acquisition of Piedmont, the third quarter of 2025 was impacted for three months of increased levels of average balances, income, and expense as compared to the third quarter of 2024.

Diluted earnings per share were $0.92 for the third quarter of 2025 and $0.70 for the third quarter of 2024.

Net interest income for the third quarter of 2024 was $230.26 million, which was relatively flat from the third quarter of 2023, increasing $1.80 million or less than 1%.

The slight increase of $1.80 million in net interest income occurred because total interest income increased $25.81 million while total interest expense increased $24.01 million from the third quarter of 2023.

The provision for credit losses was $6.94 million for the third quarter of 2024, while the provision for credit losses was $5.95 million for the third quarter of 2023.

For the third quarter of 2024, noninterest income was $31.94 million, which was a decrease of $1.72 million or 5.11% from the third quarter of 2023.

This decrease in noninterest income for the third quarter of 2024 was due mainly to decreases of $6.53 million and $3.01 million, respectively, in net losses on investment securities transactions and in income from mortgage banking activities driven by lower mortgage loan sales volume partially offset by the gain on the sale of MSRs.

For the third quarter of 2024, noninterest expense was relatively flat from the third quarter of 2023, increasing $109 thousand.

This increase was less than 1%.

For the third quarter of 2024 compared to the third quarter of 2023, several categories of noninterest expense increased which were largely offset by decreases in other categories.

Income taxes for the third quarter of 2024 were $24.65 million as compared to $24.78 million for the third quarter of 2023.

Net interest income for the third quarter of 2025 increased $49.86 million, or 21.65% from the third quarter of 2024.

The increase of $49.86 million in net interest income occurred because total interest income increased $48.23 million while total interest expense decreased $1.63 million from the third quarter of 2024.

The provision for credit losses was $12.10 million for the third quarter of 2025, as compared to provision for credit losses of $6.94 million for the third quarter of 2024.

For the third quarter of 2025, noninterest income increased $11.26 million or 35.26% from the third quarter of 2024.

The increase in noninterest income was driven by net gains on investment securities for the third quarter of 2025 as compared to net losses on investment securities for the third quarter of 2024, an increase in fees from brokerage services, and smaller increases in several other categories of noninterest income.

Noninterest expense for the third quarter of 2025 increased $11.40 million or 8.42% from the third quarter of 2024 due mainly to the additional employees and branches from the Piedmont acquisition.

Income taxes for the third quarter of 2025 were $33.74 million as compared to $24.65 million for the third quarter of 2024, primarily due to higher earnings partially offset by a slightly lower effective tax rate.

For the quarters ended September 30, 2025 and 2024, United’s effective tax rate was 20.51% and 20.56%, respectively.

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Net interest income for the fourth quarter of 2025 was $287.46 million, which was an increase of $54.85 million or 23.58% from the fourth quarter of 2024.

The $2.92 million increase in net interest income occurred because total interest income increased $6.86 million while total interest expense increased $3.94 million from the fourth quarter of 2023.

The $54.85 million increase in net interest income occurred because total interest income increased $54.02 million while total interest expense decreased $830 thousand from the fourth quarter of 2024.

The provision for credit losses was $6.78 million for the fourth quarter of 2025 as compared to a provision for credit losses of $6.69 million for the fourth quarter of 2024.

Noninterest income for the fourth quarter of 2024 was $29.32 million, which was a decrease of $4.36 million, or 12.94% from the fourth quarter of 2023.

This decrease in noninterest income was driven by decreases in other noninterest income of $3.26 million and income from mortgage banking activities of $2.43 million due to lower mortgage loan origination and sale volume partially offset by an increase in income from BOLI of $1.37 million due to the impact of higher market values of underlying investments and higher amounts of death benefits recognized in the fourth quarter of 2024.

noninterest income for the fourth quarter of 2023 included a $2.66 million gain from the payoff of a fixed rate commercial loan that had an associated interest rate swap derivative.

Noninterest expense for the fourth quarter of 2024 was $134.18 million, a decrease of $18.11 million, or 11.89%, from the fourth quarter of 2023.

The decrease in noninterest expense was driven by decreases in FDIC insurance expense of $12.74 million and other noninterest expense of $8.66 million due to a lower expense for the reserve for unfunded loan commitments partially offset by increases in employee benefits of $3.95 million.

FDIC insurance expense for the fourth quarter of 2023 included $11.99 million for the FDIC special assessment.

The decrease in the expense for the reserve for unfunded loan commitments was mainly due to a decrease in loan commitments.

The increase in employee benefits was driven by higher health insurance costs and higher postretirement benefit costs.

Noninterest income for the fourth quarter of 2025 was $30.94 million, which was an increase of $1.62 million, or 5.52% from the fourth quarter of 2024.

The increase in noninterest income was primarily due to an increase in fees

from brokerage services of $980 thousand driven by higher volume.

Noninterest expense for the fourth quarter of 2025 was $151.72 million, an increase of $17.54 million, or 13.07%, from the fourth quarter of 2024.

The increase in noninterest expense was driven primarily by increased employee compensation of $5.82 million due to a higher employee headcount from the Piedmont acquisition and higher employee incentives and other expenses of $9.49 million due to increases of $5.50 million in the expense on reserve for unfunded commitments, $2.38 million in the amortization of tax credits and $1.43 million for the amortization of core deposit intangibles partially offset by a decline of $1.26 million in merger expense.

Additionally, increases in equipment expense of $1.77 million and net occupancy of $1.11 million were mainly attributable to the acquisition.

For the fourth quarter of 2025, income tax expense was $31.07 million as compared to $26.65 million for the fourth quarter of 2024.

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United’s effective tax rate was 19.4% and 22.0% for the fourth quarter of 2025 and fourth quarter of 2024, respectively.

The effective tax rates for the fourth quarter of 2024 and 2023 reflect the impact of provision to return adjustments during each period.

Additional quarterly financial data for 2024 and 2023 may be found in Note Z, Notes to Consolidated Financial Statements.

Additional quarterly financial data for 2025 and 2024 may be found in Note Y, Notes to Consolidated Financial Statements.

The Effect of Inflation

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Like all banks, United depends upon its ability to renew maturing deposits and other liabilities on a daily basis and to acquire new funds in a variety of markets.

A significant source of funds available to United is “core deposits”.

A significant source of funds available

to United is “core deposits”.

Core deposits include certain demand deposits, statement and special savings and NOW accounts.

These deposits are relatively stable, and they are the lowest cost source of funds available to United.

Short-term borrowings have also been a significant source of funds.

Short-term borrowings have also been a source of funds.

These include federal funds purchased and securities sold under agreements to repurchase as well as advances from the FHLB.

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Short-term needs can be met through a wide array of outside sources such as correspondent and downstream correspondent federal funds and utilization of Federal Home Loan Bank advances.

Other sources of liquidity available to United to provide long-term as well as short-term funding alternatives, in addition to FHLB advances, are long-term certificates of deposit, lines of credit, borrowings that are secured by bank premises or stock of United’s subsidiaries and issuances of trust preferred securities.

In the normal course of business, United through its Asset Liability Committee evaluates these as well as other alternative funding strategies that may be utilized to meet short-term and long-term funding needs.

See Notes L and M, Notes to Consolidated Financial Statements.

See Notes K and L, Notes to Consolidated Financial Statements.

During the year of 2025, United increased its interest-bearing deposit balance at the FRB by $260.19 million to $2.23 billion.

The change in the balance at the FRB was mostly the result of net sales, maturities, and paydowns in the available for sale debt securities portfolio of $867.21 million and an increase in deposits of $1.14 billion partially offset by loan growth of $318.05 million and the net repayment of $1.25 billion in FHLB advances.

The change in the balance at the FRB was mostly the result of net sales, maturities, and paydowns in the available for sale debt securities portfolio of $118.03 million and an increase in deposits of $993.74 million, partially offset by loan growth of $1.04 billion and the net repayment of $10.00 million in FHLB advances.

Cash flows provided by operations in 2025 were $498.91 million due mainly to net income of $464.60 million for the year of 2025.

In 2024, cash flows provided by operations were $445.45 million due mainly to net income of $373.00 million for the year of 2024.

In 2024, net cash of $571.49 million was provided by investing activities which was primarily due to proceeds of $882.85 million from sales, calls and maturities of investment securities over purchases partially offset by loan growth of $318.05 million.

In 2025, net cash of $899.31 million was used in investing activities which was primarily due to loan growth of $1.04 billion partially offset by proceeds of $74.40 million from sales, calls and maturities of investment securities over purchases.

During the year of 2025, net cash of $650.41 million was provided by financing activities due primarily to deposit growth of $993.74 million partially offset by cash payments of $209.00 million for dividends and $126.99 million for the acquisition of treasury stock.

During the year of 2024, net cash of $323.64 million was used in financing activities due primarily to net repayments of $1.25 billion from long-term FHLB borrowings partially offset by an increase of $1.14 billion in deposits.

Other uses of cash within funding activities for the year of 2024 were $200.73 million for cash dividends paid.

During the year of 2023, net cash of $51.94 million was used in financing activities due primarily to net repayments of $400.00 million from long-term FHLB borrowings partially offset by an increase of $517.27 million in deposits.

Other uses of cash within funding activities for the year of 2023 were $194.73 million for cash dividends paid.

The net effect of the cash flow activities was an increase in cash and cash equivalents of $250.01 million for the year of 2025 as compared to increase in cash and cash equivalents of $693.30 million for the year of 2024.

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United enters into derivative contracts, mainly to protect against adverse interest rate movements on the value of certain assets or liabilities, under which it is required to either pay cash to or receive cash from counterparties depending on changes in interest rates.

Derivative contracts are carried at fair value and not notional value on the consolidated balance sheet and therefore do not represent the amounts that may ultimately be paid under these contracts.

Further discussion of derivative instruments is included in Note S, Notes to Consolidated Financial Statements.

Derivative contracts are carried at fair value and not at notional value on the consolidated balance sheet and therefore do not represent the amounts that may ultimately be paid under these contracts.

Further discussion of derivative instruments is included in Note R, Notes to Consolidated Financial Statements.

United is also a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.

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Commitments generally have fixed expiration dates or other termination clauses, generally within one year, and may require the payment of a fee.

Further discussion of commitments is included in Note R, Notes to Consolidated Financial Statements.

Further discussion of commitments is included in Note Q, Notes to Consolidated Financial Statements.

United anticipates it can meet its obligations over the next 12 months and has no material commitments for capital expenditures.

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United also has lines of credit available.

See Notes L and M to the accompanying unaudited Notes to Consolidated Financial Statements for more details regarding the amounts available to United under lines of credit.

See Notes K and L to the accompanying unaudited Notes to Consolidated Financial Statements for more details regarding the amounts available to United under lines of credit.

The Asset Liability Committee monitors liquidity to ascertain that a liquidity position within certain prescribed parameters is maintained.

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United has historically generated attractive returns on shareholders’ equity.

United is well-capitalized based upon regulatory guidelines.

United is well-capitalized within the meaning of applicable regulatory guidelines.

United’s risk-based capital ratio is 15.72% at December 31, 2025 while its Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.44%, 13.44% and 11.28%, respectively.

The December 31, 2024 ratios reflects United’s election of a five-year transition provision, allowed by the Federal Reserve Board and other federal banking agencies in response to the COVID-19 pandemic, to delay for two years the full impact of CECL on regulatory capital, followed by a three-year transition period.

The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10.0%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8.0% and a leverage ratio of 5.0%.

Total shareholders’ equity was $5.50 billion at December 31, 2025, which was an increase of $502.76 million or 10.07% from December 31, 2024.

This increase is primarily due to increases of $172.11 million in net earnings and $35.78 million in accumulated other comprehensive income due mainly to an after-tax increase in the fair value of available for sale securities.

This increase is primarily due to increases of $20.41 million and $272.72 million in common stock and surplus, respectively, primarily as a result of the Piedmont acquisition.

In addition, retained earnings increased $252.60 million due to net earnings and accumulated other comprehensive income increased $84.98 million due mainly to an after-tax increase in the fair value of available for sale securities.

United’s equity to assets ratio was 16.33% at December 31, 2025 as compared to 16.63% at December 31, 2024.

The primary capital ratio, capital and reserves to total assets and reserves, was 17.47% at December 31, 2024 as compared to 16.79% at December 31, 2023.

United’s average equity to average asset ratio was 16.39% at December 31, 2025 as compared to 16.57% at December 31, 2024.

All of these financial measurements reflect a financially sound position.

During the fourth quarter of 2025, United’s Board of Directors declared a cash dividend of $0.38 per share.

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Total cash dividends declared to common shareholders were $212.00 million for the year of 2025 as compared to $200.89 million for the year of 2024.

The year 2024 was the fifty-first consecutive year of dividend increases to United shareholders.

The year 2025 was the fifty-second consecutive year of dividend increases to United shareholders.

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-K

Item 7. Management’s Discussion and Analysis