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Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 297 added, 219 removed, 299 unchanged (63% of the section changed)

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and its wholly-owned subsidiaries, unless otherwise indicated.

Management has evaluated all significant events and transactions that occurred after March 31, 2026, but prior to the date these financial statements were issued, for potential recognition or disclosure required in these financial statements.

Management has evaluated all significant events and transactions that occurred after June 30, 2026, but prior to the date these financial statements were issued, for potential recognition or disclosure required in these financial statements.

This discussion and analysis should be read in conjunction with the unaudited Consolidated Financial Statements and accompanying notes thereto, which are included elsewhere in this document.

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At the acquisition date, Piedmont had total assets of approximately $2.4 billion, total loans of approximately $2.1 billion, total liabilities of approximately $2.2 billion, total deposits of approximately $2.1 billion, and total shareholders’ equity of approximately $202 million.

As a result of the Piedmont acquisition, the first quarter of 2025 included $30.0 million of pre-tax merger-related noninterest expenses and merger-related provision for credit losses.

As a result of the Piedmont acquisition, the second quarter and first six months of 2025 included $1.32 million and $31.36 million, respectively, of pre-tax net income-related noninterest expenses and merger-related provision for credit losses.

USE OF NON-GAAP FINANCIAL MEASURES

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Presentation of a non-GAAP financial measure is consistent with how United’s management evaluates its performance internally and this non-GAAP financial measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the banking industry.

Specifically, this discussion contains certain references to financial measures identified as tax-equivalent (“FTE”) net interest income and return on average tangible equity.

Specifically, this discussion contains certain references to financial measures identified as fully tax-equivalent net interest income and return on average tangible common equity.

Management believes these non-GAAP financial measures to be helpful in understanding United’s results of operations or financial position.

Net interest income is presented in this discussion on a tax-equivalent basis.

The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments.

Although this is a non-GAAP measure, United’s management believes this measure is more widely used within the financial services industry and provides better comparability of net interest income arising from taxable and tax-exempt sources.

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

Net interest income, the yield on earning assets, yield on investment securities, net interest margin, and interest spread are presented in this Management’s Discussion and Analysis of Financial Condition and Results of Operations on a fully tax-equivalent basis.

The fully tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments.

Although these are non-GAAP measures, United’s management believes these measures are more widely used within the financial services industry and provide better comparability of net interest income arising from taxable and tax-exempt sources and additional insight into the net interest margin by adjusting for differences in tax treatment of interest income sources.

United uses this measure to monitor net interest income performance, net interest margin and yields on earning assets and investment securities and to manage its balance sheet composition.

Average tangible common equity is calculated as GAAP total shareholders’ equity minus total intangible assets.

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Based on the valuation techniques used and the sensitivity of financial statement amounts to the methods, assumptions, and estimates underlying those amounts, management has identified the determination of the allowance for loan and lease losses, the calculation of the income tax provision, and the use of fair value measurements to account for certain financial instruments to be the accounting areas that require the most subjective or complex judgments, and as such could be most subject to revision as new information becomes available.

United’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of March 31, 2026 were unchanged from the policies disclosed in United’s Annual Report on Form 10-K for the year ended December 31, 2025 within the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

United’s critical accounting policies involving the significant judgments and assumptions used in the preparation of the Consolidated Financial Statements as of June 30, 2026 were unchanged from the policies disclosed in United’s Annual Report on Form 10-K for the year ended December 31, 2025 within the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

FINANCIAL CONDITION

United’s total assets as of March 31, 2026 were $33.71 billion, remaining steady from December 31, 2025.

Investment securities increased $130.17 million or 3.83%, portfolio loans increased $154.02 million or less than 1% and bank-owned life insurance policies increased $4.18 million or less than 1%.

Partially offsetting these increases in assets, cash and cash equivalents decreased $237.22 million or 9.33%, operating lease right-of-use assets decreased $1.47 million or 1.65%, and loans held for sale decreased $2.04 million or 6.53%.

United’s total assets as of June 30, 2026 were $33.75 billion, remaining steady from December 31, 2025.

Investment securities increased $258.63 million or 7.61%, portfolio loans increased $285.40 million or 1.16%, bank-owned life insurance policies increased $10.91 million or 1.99%, operating lease right-of-use assets increased $3.46 million or 3.87%, and loans held for sale increased $3.95 million or 12.62%.

Partially offsetting these increases in assets, cash and cash equivalents decreased $460.95 million or 18.13% and interest receivable decreased $9.57 million or 8.76%.

Total liabilities remained flat, increasing $77.00 million or less than 1% from year-end 2025.

This increase in total liabilities was due mainly to an increase of $59.94 million or less than 1% in deposits, an increase of $24.51 million or 10.11% in accrued and other liabilities, and an increase of $1.97 million or 5.62% in the allowance for lending-related commitments.

Partially offsetting these increases in liabilities was a $32.40 million or 16.32% decrease in securities sold under agreements to repurchase.

Shareholders’ equity was relatively flat from year-end 2025, decreasing $7.86 million or less than 1%.

This increase in total liabilities was due mainly to an increase of $109.81 million or less than 1% in deposits, an increase of $4.37 million or 4.58% in operating lease right-of-use liabilities, and an increase of $2.15 million or 6.12% in the allowance for lending-related commitments.

Partially offsetting these increases in liabilities was a $31.58 million or 15.90% decrease in securities sold under agreements to repurchase and an $8.54 million or 3.52% decrease in accrued expenses and other liabilities.

Shareholders’ equity was relatively flat from year-end 2025, increasing $14.55 million or less than 1%.

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

Cash and Cash Equivalents

Cash and cash equivalents at March 31, 2026 decreased $237.22 million or 9.33% from year-end 2025.

Cash and cash equivalents at June 30, 2026 decreased $460.95 million or 18.13% from year-end 2025.

In particular, interest-bearing deposits with other banks decreased $491.10 million or 21.41%, as United placed less cash in an interest-bearing account with the Federal Reserve, while cash and due from banks increased $30.11 million or 12.16%.

Federal funds sold increased $42 thousand or 3.09%.

During the first three months of 2026, net cash of $160.86 million was provided by operating activities while net cash of $304.11 million and $93.96 million were used in investing and financing activities.

See the unaudited Consolidated Statements of Cash Flows (unaudited) for data on cash and cash equivalents provided and used in operating, investing and financing activities for the first three months of 2026 and 2025.

Total investment securities at March 31, 2026 increased $130.17 million or 3.83%.

During the first six months of 2026, net cash of $266.02 million was provided by operating activities while net cash of $564.99 million and $161.97 million were used in investing and financing activities.

Total investment securities at June 30, 2026 increased $258.63 million or 7.61%.

Securities available for sale increased $260.30 million or 8.51%.

This change in securities available for sale reflects $350.41 million in sales, maturities and calls of securities, $514.59 million in purchases, and a decrease of $13.21 million in market value.

Equity securities were $12.25 million at March 31, 2026, a decrease of $22.51 million or 64.76% due mainly to the sale of equity securities totaling $26.65 million partially offset by the purchase of $4.16 million in equity securities during the first quarter of 2026.

Other investment securities were flat, increasing $60 thousand or less than 1% from year-end 2025.

This change in securities available for sale reflects $807.30 million in sales, maturities and calls of securities, $1.07 billion in purchases, and a decrease of $6.56 million in market value.

Equity securities were $30.11 million at June 30, 2026, a decrease of $4.65 million or 13.39% due mainly to the sale of equity securities totaling $27.82 million partially offset by the purchase of $18.35 million in equity securities during the first six months of 2026.

Other investment securities were flat, increasing $2.98 million or less than 1% from year-end 2025.

The following table summarizes the changes in the available for sale securities since year-end 2025:

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net of allowance for credit losses of $14 thousand.

At March 31, 2026, gross unrealized losses on available for sale securities were $226.45 million.

Securities with the most significant gross unrealized losses at March 31, 2026 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities and corporate securities.

As of March 31, 2026, United’s available for sale mortgage-backed securities had an amortized cost of $2.13 billion, with an estimated fair value of $1.99 billion.

net of allowance for credit losses of $16 thousand.

At June 30, 2026, gross unrealized losses on available for sale securities were $218.49 million.

Securities with the most significant gross unrealized losses at June 30, 2026 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities and corporate securities.

As of June 30, 2026, United’s available for sale mortgage-backed securities had an amortized cost of $2.28 billion, with an estimated fair value of $2.14 billion.

The portfolio consisted primarily of $1.92 billion in agency residential mortgage-backed securities with a fair value of $1.79 billion, $41.94 million in non-agency residential mortgage-backed securities with an estimated fair value of $38.35 million, and $327.17 million in commercial agency mortgage-backed securities with an estimated fair value of $312.76 million.

As of March 31, 2026, United’s available for sale state and political subdivisions securities had an amortized cost of $569.15 million, with an estimated fair value of $510.65 million.

The portfolio relates to securities issued by various municipalities located throughout the United States, and no securities within the portfolio were rated below investment grade as of March 31, 2026.

As of March 31, 2026, United’s available for sale corporate securities had an amortized cost of $450.24 million, with an estimated fair value of $435.26 million.

As of June 30, 2026, United’s available for sale state and political subdivisions securities had an amortized cost of $564.69 million, with an estimated fair value of $509.24 million.

As of June 30, 2026, United’s available for sale corporate securities had an amortized cost of $401.45 million, with an estimated fair value of $389.42 million.

The portfolio consisted of $13.33 million in single issue trust preferred securities with an estimated fair value of $12.96 million.

In addition to the single issue trust preferred securities, the Company held positions in various other corporate securities, including asset-backed securities with an amortized cost of $175.61 million and a fair value of $173.53 million and other corporate securities, with an amortized cost of $212.50 million and a fair value of $202.94 million.

United’s available for sale single issue trust preferred securities had a fair value of $12.67 million as of March 31, 2026.

United’s available for sale single issue trust preferred securities had a fair value of $12.96 million as of June 30, 2026.

Of the $12.96 million, $7.44 million or 57.40% were investment grade rated and $5.52 million or 42.60% were unrated.

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

During the first quarter of 2026, United did not recognize any credit losses on its available for sale investment securities.

Management does not believe that any individual security with an unrealized loss as of March 31, 2026 is impaired.

During the second quarter of 2026, United did not recognize any credit losses on its available for sale investment securities.

Management does not believe that any individual security with an unrealized loss as of June 30, 2026 is impaired.

United believes the decline in value resulted from changes in market interest rates, credit spreads and liquidity, not a deterioration of credit.

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United has the intent and the ability to hold these securities until such time as the value recovers or the securities mature.

As of March 31, 2026, there was no allowance for credit losses related to the Company’s available for sale securities.

As of June 30, 2026, there was no allowance for credit losses related to the Company’s available for sale securities.

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.

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Loans Held for Sale

Loans held for sale were $29.24 million at March 31, 2026, a decrease of $2.04 million or 6.53% from year-end 2025.

Loan sales in the secondary market exceeded originations during the first three months of 2026.

Loan originations for the first three months of 2026 were $87.05 million while loans sales were $89.10 million.

Loans held for sale were $35.22 million at June 30, 2026, an increase of $3.95 million or 12.62% from year-end 2025.

Loan originations in the secondary market exceeded sales during the first six months of 2026.

Loan originations for the first six months of 2026 were $195.20 million while loans sales were $191.25 million.

Portfolio Loans

Loans, net of unearned income, increased $154.02 million or less than 1% from year-end 2025.

Since year-end 2025, commercial, financial and agricultural loans increased $171.54 million or 1.20% as a result of a $197.45 million or 1.88% increase in commercial real estate loans, which was partially offset by a $25.91 million or less than 1% decrease in commercial loans (not secured by real estate).

Residential real estate loans increased $16.79 million while construction and land development loans decreased $28.91 million and consumer loans decreased $5.30 million.

Loans, net of unearned income, increased $285.40 million or 1.16% from year-end 2025.

Since year-end 2025, commercial, financial and agricultural loans increased $425.24 million or 2.98% as a result of a $403.09 million or 3.84% increase in commercial real estate loans and a $22.15 million or less than 1% increase in commercial loans (not secured by real estate).

Residential real estate loans increased $81.75 million or 1.34% and consumer loans increased $13.99 million or 1.80%.

Partially offsetting these increases in loans, net of unearned income, was a $235.36 million or 6.59% decrease in construction and land development loans.

The following table summarizes the changes in the major loan classes since year-end 2025:

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Bank-Owned Life Insurance

The balance of bank-owned life insurance increased $4.18 million due to an increase in the cash surrender value of underlying policies.

Other assets remained relatively flat from year-end 2025, decreasing $999 thousand or less than 1% from year-end 2025 as prepaid assets decreased $5.06 million, income taxes receivable decreased $2.01 million due to timing differences and core deposit intangibles decreased $1.84 million due to amortization.

Partially offsetting these decreases were increases in deferred tax assets of $4.41 million due mainly to the decrease in the fair value of available for sale securities, OREO of $1.53 million and accounts receivable of $1.79 million.

The balance of bank-owned life insurance increased $10.91 million or 1.99% for the first six months of 2026 due to an increase in the cash surrender value of underlying policies.

Other assets remained relatively flat from year-end 2025, decreasing $746 thousand or less than 1% from year-end 2025 as prepaid assets decreased $2.59 million, core deposit intangibles decreased $3.68 million due to amortization, accounts receivable decreased $688 thousand due to timing differences, and repossessions decreased $609 thousand.

Partially offsetting these decreases were increases in deferred tax assets of $2.10 million due mainly to the decrease in the fair value of available for sale securities, OREO of $1.35 million and income tax receivable of $2.48 million.

Deposits represent United’s primary source of funding.

Total deposits at March 31, 2026 increased $59.94 million or less than 1% from year-end 2025.

In terms of composition, noninterest-bearing deposits decreased $163.71 million or 2.49% while interest-bearing deposits increased $223.66 million or 1.09% from December 31, 2025.

Total deposits at June 30, 2026 increased $109.81 million or less than 1% from year-end 2025.

In terms of composition, noninterest-bearing deposits increased $158.10 million or 2.41% while interest-bearing deposits decreased $48.30 million or less than 1% from December 31, 2025.

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

The $163.71 million decrease in noninterest-bearing deposits was due to a $156.81 million decrease in official checks and a $30.41 million decrease in commercial noninterest-bearing deposits.

Partially offsetting these decreases was a $38.43 million increase in personal noninterest-bearing deposits and a $5.73 million increase in public funds noninterest-bearing deposits.

The $158.10 million increase in noninterest-bearing deposits was due to a $88.52 million increase in commercial noninterest-bearing deposits, a $14.42 million increase in personal noninterest-bearing deposits and a $20.65 million increase in official checks.

Partially offsetting these increases was a $20.15 million decrease in public funds noninterest-bearing deposits.

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

Interest-bearing transaction accounts decreased $39.74 million since year-end 2025 as the result of a $59.80 million decrease in public funds interest-bearing transaction accounts, partially offset by a $16.53 million increase in commercial interest-bearing transaction accounts.

Regular savings accounts increased $20.89 million mainly as a result of a $27.94 million increase in personal savings accounts.

Interest-bearing transaction accounts decreased $219.65 million since year-end 2025 as the result of a $198.44 million decrease in commercial interest-bearing transaction accounts, and a $52.07 million decrease in personal interest-bearing transaction accounts, which were partially offset by a $30.86 million increase in public funds interest-bearing transaction accounts.

Regular savings accounts increased $7.82 million mainly as a result of a $16.24 million increase in personal savings accounts, partially offset by a $8.08 million decrease in commercial savings accounts.

Interest-bearing MMDAs increased $62.11 million.

In particular, personal MMDAs increased $64.96 million while commercial MMDAs and public funds MMDAs increased $114.40 million and $18.99 million, respectively.

In particular, commercial MMDAs increased $93.65 million while personal MMDAs decreased $33.19 million.

Time deposits under $100,000 increased $1.93 million or less than 1% from year-end 2025.

This increase in time deposits under $100,000 was the result of a $26.26 million increase in fixed rate Certificates of Deposits (“CDs”) under $100,000 and a $1.77 million increase in Certificate of Deposit Account Registry Service (“CDARS”) under $100,000, partially offset by a $23.49 million decrease in variable rate CDs.

Since year-end 2025, time deposits over $100,000 increased $38.44 million or 1.14% as fixed rate CDs increased $56.84 million.

Partially offsetting this increase was a $14.47 million decrease in variable rate CDs and a $5.47 million decrease in CDARS over $100,000.

This increase in time deposits under $100,000 was the result of a $29.64 million increase in fixed rate Certificates of Deposits (“CDs”) under $100,000 and a $3.35 million increase in Certificate of Deposit Account Registry Service (“CDARS”) under $100,000, mostly offset by a $32.15 million decrease in variable rate CDs.

Since year-end 2025, time deposits over $100,000 increased $99.51 million or 2.96% as fixed rate CDs increased $74.65 million and public funds CDs increased $48.05 million.

Partially offsetting these increases was a $21.26 million decrease in variable rate CDs and a $1.93 million decrease in CDARS over $100,000.

The table below summarizes the changes by deposit category since year-end 2025:

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Total deposits

Includes time deposits of $250,000 or more of $1,760,815 and $1,724,739 at March 31, 2026 and December 31,

2025, respectively.

Total borrowings at March 31, 2026 decreased $32.00 million or 4.38% since year-end 2025.

During the first three months of 2026, short-term borrowings decreased $32.40 million or 16.32% due to a decrease in securities sold under agreements to repurchase.

Includes time deposits of $250,000 or more of $1,826,069 and $1,724,739 at June 30, 2026 and December 31, 2025, respectively.

Total borrowings at June 30, 2026 decreased $30.78 million or 4.21% since year-end 2025.

During the first six months of 2026, short-term borrowings decreased $31.58 million or 15.90% due to a decrease in securities sold under agreements to repurchase.

Long-term borrowings remained flat, increasing $798 thousand or less than 1% from year-end 2025.

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Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities at March 31, 2026 increased $24.51 million or 10.11% from year-end 2025.

In particular, income taxes payable increased $30.80 million due to timing differences, business franchise taxes increased $3.03 million, and accrued loan expenses increased $10.43 million.

Partially offsetting these increases was a decrease of $16.69 million in incentives payable due to payments.

Accrued expenses and other liabilities at June 30, 2026 decreased $8.54 million or 3.52% from year-end 2025.

In particular, business franchise taxes decreased $6.85 million, income taxes payable decreased $687 thousand due to timing differences, incentives payable decreased $10.20 million due to payments, interest payable decreased $910 thousand due to a decrease in interest-bearing deposits as well as a lower average interest rate paid on these deposits and other accrued expenses decreased $5.00 million.

Partially offsetting these decreases was an increase of $13.04 million in accrued mortgage escrow expense.

Shareholders’ Equity

Shareholders’ equity at March 31, 2026 was $5.49 billion, which was a decrease of $7.86 million or less than 1% from year-end 2025.

Shareholders’ equity at June 30, 2026 was $5.51 billion, which was an increase of $14.55 million or less than 1% from year-end 2025.

Retained earnings increased $149.80 million or 6.90% from year-end 2025.

Earnings net of dividends for the first three months of 2026 were $71.03 million.

Earnings net of dividends for the first six months of 2026 were $149.80 million.

Accumulated other comprehensive income decreased $4.44 million or 3.20% from year-end 2025 due mainly to a decrease of $5.00 million in the fair value of United’s available for sale investment portfolio, net of deferred income taxes.

The fair value of cash flow hedges, net of deferred income taxes, decreased $136 thousand.

The fair value of cash flow hedges, net of deferred income taxes, increased $555 thousand.

Treasury stock increased $137.64 million or 36.09%.

During the first quarter of 2026, United repurchased 1,739,501 shares on the open market under a repurchase plan approved by United’s Board of Directors at a cost of $69.43 million or an average share price of $39.92.

During the first six months of 2026, United repurchased 3,241,721 shares on the open market under a repurchase plan approved by United’s Board of Directors at a cost of $135.43 million or an average share price of $41.78.

RESULTS OF OPERATIONS

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Three Months Ended

Six Months Ended

(Dollars in thousands)

Income Statement Summary :

Interest income

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Provision for credit losses

Other expense

Noninterest income

Noninterest expense

Income before income taxes

Net income for the first quarter of 2026 was $124.20 million as compared to earnings of $84.31 million for the first quarter of 2025.

Diluted earnings per share were $0.89 for the first quarter of 2026 and $0.59 for the first quarter of 2025.

On a linked-quarter basis, net income for the fourth quarter of 2025 was $128.83 million or $0.91 per diluted share.

Net income for the second quarter and first six months of 2026 was $131.38 million and $255.58 million, respectively, as compared to earnings of $120.72 million and $205.03 million for the second quarter and first six months of 2025.

Diluted earnings per share were $0.95 for the second quarter of 2026 and $0.85 for the second quarter of 2025.

Diluted earnings per share were $1.83 for the first six months of 2026 as compared to $1.44 for the first six months of 2025.

On a linked-quarter basis, net income for the first quarter of 2026 was $124.20 million or $0.89 per diluted share.

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, 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.

United’s annualized return on average assets for the first three months of 2026 was 1.49% and return on average shareholders’ equity was 9.08% as compared to 1.06% and 6.47%, respectively, for the first three months of 2025.

On a linked-quarter basis, United’s annualized return on average assets for the fourth quarter of 2025 was 1.52% and return on average shareholders’ equity was 9.31%.

For the first three months of 2026, United’s annualized return on average tangible common equity, a non-GAAP measure, was 14.40%, as compared to 10.61% for the first three months of 2025.

On a linked-quarter basis, United’s annualized return on average tangible common equity was 14.86% for the fourth quarter of 2025.

As a result of the acquisition, United recorded acquisition-related costs for the Piedmont merger of $1.32 million for the second quarter of 2025 and $31.36 million for the first six months of 2025, including a provision for credit losses of $18.73 million for purchased non-PCD loans recorded in the first quarter of 2025.

For the second quarter of 2026, United’s annualized return on average assets was 1.56% and return on average shareholders’ equity was 9.53% as compared to 1.49% and 9.05% for the second quarter of 2025.

United’s annualized return on average assets was 1.49% and return on average shareholders’ equity was 9.08% for the first quarter of 2026.

United’s annualized return on average assets for the first six months of 2026 was 1.53% and return on average shareholders’ equity was 9.31% as compared to 1.28% and 7.78% for the first six months of 2025.

For the second quarter and first half of 2026, United’s annualized return on average tangible common equity, a non-GAAP measure, was 15.15% and 14.77%, respectively, as compared to 14.67% and 12.67% for the second quarter and first half of 2025, respectively.

United’s annualized return on average tangible common equity was 14.40% for the first quarter of 2026.

Three Months Ended

Six Months Ended

(Dollars in thousands)

Return on Average Tangible Common Equity:

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[(a) / (b)] x 365 / (c)

Net interest income for the first quarter of 2026 increased $22.46 million, or 8.64% from the first quarter of 2025.

The increase of $22.46 million in net interest income occurred because total interest income increased $12.28 million while total interest expense decreased $10.18 million from the first quarter of 2025.

Net interest income for the first quarter of 2026 decreased $4.94 million, or 1.72%, from the fourth quarter of 2025.

The decrease of $4.94 million in net interest income occurred because total interest income decreased $14.12 million while total interest expense decreased $9.18 million from the fourth quarter of 2025.

The provision for credit losses was $7.78 million for the first quarter of 2026 as compared to $29.10 million for the first quarter of 2025.

This decrease 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 during the first quarter of 2025.

The provision for credit losses was $6.78 million for the fourth quarter of 2025.

For the first quarter of 2026, noninterest income increased $4.51 million or 15.26% and $3.13 million or 10.11% from the first quarter and fourth quarter of 2025, respectively.

These increases were primarily due to increased fees from brokerage services and net gains on the sale of equity securities in the first quarter of 2026.

Noninterest expense for the first quarter of 2026 was flat, decreasing $759 thousand or less than 1% from the first quarter of 2025.

The decrease was due mainly to merger-related expenses from the Piedmont acquisition incurred in the first quarter of 2025 being mostly offset by increases in employee compensation and employee benefits expenses during the first quarter of 2026.

Noninterest expense for the first quarter of 2026 was also flat from the fourth quarter of 2025, increasing $1.10 million or less than 1% from the fourth quarter of 2025.

The increase was primarily due to an increase in employee benefits expense mostly offset by decreases in data processing expense and the amortization of investment tax credits within other expense.

Income taxes increased $9.16 million or 40.49% for the first three months of 2026 as compared to the first three months of 2025 primarily due to higher earnings partially offset by a lower effective tax rate.

On a linked-quarter basis, income taxes increased $720 thousand or 2.32% for the first quarter of 2026 as compared to the fourth quarter of 2025 due mainly to a higher effective tax rate partially offset by lower earnings.

The effective tax rate was 20.38% and 21.16% for the first quarter of 2026 and 2025, respectively.

The effective tax rate was 19.43% for the fourth quarter of 2025.

Net interest income for the second quarter of 2026 increased $10.78 million, or 3.92% from the second quarter of 2025.

The increase of $10.78 million in net interest income occurred because total interest income decreased $3.00 million while total interest expense decreased $13.77 million from the second quarter of 2025.

Net interest income for the first half of 2026 increased $33.24 million or 6.22% from the first half of 2025.

The increase of $33.24 million in net interest income occurred because total interest income increased $9.28 million while total interest expense decreased $23.95 million from the first half of 2025.

Net interest income for the second quarter of 2026 was relatively flat from the first quarter of 2026, increasing $2.80 million, or less than 1%.

The slight increase of $2.80 million in net interest income occurred because total interest income increased $2.27 million while total interest expense decreased $529 thousand from the first quarter of 2026.

The provision for credit losses was $4.96 million and $12.74 million for the second quarter and first half of 2026, respectively, while the provision for credit losses was $5.89 million and $34.99 million for the second quarter and first half of 2025.

The provision for credit losses was $7.78 million for the first quarter of 2026.

The decrease in the provision for credit losses for the first half of 2026 was mainly due to the previously mentioned $18.73 million of provision recorded on purchased non-PCD loans from Piedmont.

For the second quarter of 2026, noninterest income increased $7.05 million or 22.40% from the second quarter of 2025 while noninterest income for the first six months of 2026 increased $11.56 million or 18.94% from the first six months of 2025.

These increases were primarily due to increased fees from brokerage services, net gains on investment securities and other noninterest income.

Noninterest income for the second quarter of 2026 increased $4.44 million, or 13.04%, from the first quarter of 2026.

Noninterest expense for the second quarter of 2026 increased $6.70 million or 4.52% from the second quarter of 2025 primarily due to increases in employee compensation and employee benefits.

For the first six months of 2026, noninterest expense increased $5.94 million or 1.97% from the first six months of 2025 driven by increases in employee compensation, employee benefits, and equipment expense partially reduced by merger-related expenses from the Piedmont acquisition in the first six months of 2025.

Noninterest expense for the second quarter of 2026 increased $1.90 million, or 1.24%, from the first quarter of 2026.

Income taxes for the second quarter of 2026 were $32.77 million as compared to $31.37 million for the second quarter of 2025.

For the first six months of 2026 and 2025 income tax expense was $64.55 million and $53.99 million, respectively.

These increases in income tax expense for the 2026 time periods above were primarily due to higher earnings partially offset by lower effective tax rates.

Income tax expense increased $977 thousand from the first quarter of 2026 due mainly to increased earnings partially offset by a lower effective tax rate.

For the quarters ended June 30, 2026 and 2025, United’s effective tax rate was 19.96% and 20.62%, respectively.

The effective tax rate for the first six months of 2026 and 2025 was 20.16% and 20.85%, respectively.

For the quarter ended March 31, 2026, United’s effective tax rate was 20.38%.

The following discussion explains in more detail the consolidated results of operations by major category.

4 unchanged sentences

Such changes, and their impact on net interest income in 2026 and 2025, are presented below.

Net interest income for the first quarter of 2026 was $282.52 million, which was an increase of $22.46 million or 8.64% from the first quarter of 2025.

The $22.46 million increase in net interest income occurred because total interest income increased $12.28 million while total interest expense decreased $10.18 million from the first quarter of 2025.

On a linked-quarter basis, net interest income for the first quarter of 2026 decreased $4.94 million, or 1.72%, from the fourth quarter of 2025.

The $4.94 million decrease in net interest income occurred because total interest income decreased $14.12 million while total interest expense decreased $9.18 million from the fourth quarter of 2025.

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.

The tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments.

Net interest income for the second quarter of 2026 was $285.31 million, which was an increase of $10.78 million or 3.92% from the second quarter of 2025.

The $10.78 million increase in net interest income occurred because total interest income decreased $3.00 million while total interest expense decreased $13.77 million from the second quarter of 2025.

Net interest income for the first half of 2026 was $567.83 million, which was an increase of $33.24 million or 6.22% from the first half of 2025.

The $33.24 million increase in net interest income occurred because total interest income increased $9.28 million while total interest expense decreased $23.95 million from the first half of 2025.

On a linked-quarter basis, net interest income for the second quarter of 2026 was relatively flat from the first quarter of 2026, increasing $2.80 million or less than 1%.

The $2.80 million slight increase in net interest income occurred because total interest income increased $2.27 million while total interest expense decreased $529 thousand from the first quarter of 2026.

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

The fully tax-equivalent basis adjusts for the tax-favored status of income from certain loans and investments.

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

Tax-equivalent net interest income for the first quarter of 2026 was $283.30 million, an increase of $22.46 million or 8.61% from the first quarter of 2025.

This increase in tax-equivalent net interest income was primarily due to an increase in average earning assets, mainly net loans, and a lower average cost of interest-bearing funds, mainly deposits.

These increases to tax-equivalent net interest income were partially offset by an increase in average interest-bearing funds, mainly deposits, and a lower yield on average earning assets, mainly short-term investments.

Average earning assets for the first quarter of 2026 increased $1.54 billion or 5.39% from the first quarter of 2025.

The increase in average earning assets was due mainly to a $1.38 billion or 5.97% increase in average net loans as well as increases of $107.72 million or 5.05% and $48.75 million or 1.50% in average short-term investments and average investment securities, respectively.

Average interest-bearing funds for the first quarter of 2026 increased $1.24 billion or 6.17% from the first quarter of 2025.

In particular, average interest-bearing deposits increased $1.25 billion or 6.44% while average short-term borrowings increased $15.35 million or 9.19% and average long-term borrowings decreased $22.64 million or 4.08% from the first quarter of 2025.

The average cost of funds for the first quarter of 2026 decreased 36 basis points due primarily to a decrease in interest rates from the first quarter of 2025.

Most notably, the cost of average interest-bearing deposits decreased 36 basis points and the cost of average short-term and long-term borrowings decreased 32 basis points and 28 basis points, respectively, from the first quarter of 2025.

The average yield on earning assets for the first quarter of 2026 decreased 13 basis points from the first quarter of 2025.

In particular, the yield on average short-term investments decreased 76 basis points while the yield on average net loans and average investment securities declined 8 basis points and 15 basis points, respectively.

For the first quarter of 2026, interest income and tax-equivalent net interest income included $7.47 million of acquired loan accretion income as compared to $5.99 million for the first quarter of 2025.

The net interest margin of 3.80% for the first quarter of 2026 was an increase of 11 basis points from the net interest margin of 3.69% for the first quarter of 2025.

On a linked-quarter basis, tax-equivalent net interest income decreased $4.96 million or 1.72% from the fourth quarter of 2025.

The net interest margin was 3.80% and 3.83% for first quarter of 2026 and the fourth quarter of 2025, respectively.

The interest rate spread for the first quarter of 2026 increased 2 basis points to 3.06% from the fourth quarter of 2025 due to a 14 basis point decrease in the average cost of funds partially offset by a 12 basis point decrease in the yield on average earning assets.

The decrease in the average cost of funds was primarily due to a 14 basis point decrease in the average rate paid on deposits.

The decrease in the yield on average earning assets was primarily due to an 11 basis point decrease in the yield on average net loans, a 26 basis point decrease in the yield on average short-term investments and lower acquired loan accretion income.

Acquired loan accretion income for the first quarter of 2026 decreased $988 thousand or 11.68% from the fourth quarter of 2025.

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

The following table provides the discount/premium and net accretion impact to tax-equivalent net interest income for the three months ended March 31, 2026, March 31, 2025 and December 31, 2025:

Fully tax-equivalent net interest income for the second quarter of 2026 was $286.10 million, an increase of $10.77 million or 3.91% from the second quarter of 2025.

The increase in fully tax-equivalent net interest income was primarily due to a lower rate paid on average interest-bearing deposits and an increase in average net loans partially offset by a lower yield on average net loans and an increase in average interest-bearing deposits.

The rate paid on average interest-bearing deposits decreased 38 basis points from the second quarter of 2025.

Average net loans increased $970.63 million, or 4.10%, from the second quarter of 2025.

The yield on average net loans decreased 27 basis points from the second quarter of 2025.

Acquired loan accretion income decreased $6.76 million from the second quarter of 2025.

Average interest-bearing deposits increased $900.48 million, or 4.59%, from the second quarter of 2025.

The net interest margin was 3.81% for both the second quarter of 2026 and the second quarter of 2025.

Fully tax-equivalent net interest income for the first half of 2026 increased $33.23 million, or 6.20%, from the first half of 2025.

The increase in fully tax-equivalent net interest income was primarily due to an increase in average net loans and a lower rate paid on average interest-bearing deposits.

These increases to fully tax-equivalent net interest income were partially offset by a lower yield on average net loans and an increase in average interest-bearing deposits.

Average net loans increased $1.18 billion, or 5.02%, from the first half of 2025.

The rate paid on average interest-bearing deposits decreased 37 basis points from the first half of 2025.

The yield on average net loans decreased 17 basis points from the first half of 2025.

Acquired loan accretion income decreased $5.27 million from the first half of 2025.

Average interest-bearing deposits increased $1.07 billion, or 5.51%, from the first half of 2025.

The net interest margin was 3.80% and 3.75% for the first half of 2026 and the first half of 2025, respectively.

On a linked-quarter basis, fully tax-equivalent net interest income for the second quarter of 2026 was relatively flat from the first quarter of 2026, increasing $2.80 million, or less than 1%.

The net interest margin was 3.81% and 3.80% for second quarter of 2026 and the first quarter of 2026, respectively.

The interest spread for the second quarter of 2026 increased a basis point to 3.07% from the first quarter of 2026 due to a 3 basis point decrease in the average cost of funds partially offset by a 2 basis point decrease in the yield on average earning assets.

The decrease in the average cost of funds was primarily due to a 2 basis point decrease in the rate paid on average interest-bearing deposits.

The decrease in the yield on average earning assets was driven by a 6 basis point decrease in the yield on average net loans partially offset by a 19 basis point increase in the yield on average investment securities.

Acquired loan accretion income was $5.00 million for the second quarter of 2026, a decrease of $2.47 million from the first quarter of 2026 which contributed to an approximately 4 basis point decrease in the interest spread and in the net interest margin.

The increase in the yield on average investment securities reflects United’s strategic purchases of higher yielding investment securities throughout 2026.

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

The following table provides the discount/premium and net accretion impact to fully tax-equivalent net interest income for the three months ended June 30, 2026, June 30, 2025 and March 31, 2026 and the six months ended June 30, 2026 and June 30, 2025:

Three Months Ended

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Long-term borrowings

The following tables reconcile the difference between net interest income and tax-equivalent net interest income for the three months ended March 31, 2026, March 31, 2025 and December 31, 2025.

Six Months Ended

(Dollars in thousands)

Loan accretion

Certificates of deposit

Long-term borrowings

The following tables reconcile the difference between net interest income and fully tax-equivalent net interest income for the three months ended June 30, 2026, June 30, 2025 and March 31, 2026 and the six months ended June 30, 2026 and June 30, 2025.

Three Months Ended

1 unchanged sentence

Net interest income, GAAP basis

Tax-equivalent adjustment (1)

Tax-equivalent net interest income

The tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21% for the three months ended March 31, 2026 and 2025 and December 31, 2025.

Fully tax-equivalent adjustment (1)

Fully tax-equivalent net interest income

Six Months Ended

(Dollars in thousands)

Net interest income, GAAP basis

Fully tax-equivalent adjustment (1)

Fully tax-equivalent net interest income

The fully tax-equivalent adjustment combines amounts of interest income on federally nontaxable loans and investment securities using the statutory federal income tax rate of 21% for the three months and six months ended June 30, 2026 and 2025 and the three months ended March 31, 2026.

All interest income on loans and investment securities was subject to state income taxes.

The following table shows the unaudited consolidated daily average balance of major categories of assets and liabilities for the three-month periods ended March 31, 2026 and 2025, respectively, with the interest and rate earned or paid on such amount.

The interest income and yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21% for the three-month period ended March 31, 2026 and 2025.

The following table shows the unaudited consolidated daily average balance of major categories of assets and liabilities for the three-month periods ended June 30, 2026 and 2025, respectively, with the interest and rate earned or paid on such amount.

The interest income and yields on federally nontaxable loans and investment securities are presented on a fully tax-equivalent basis using the statutory federal income tax rate of 21% for the three-month period ended June 30, 2026 and 2025.

Interest income on all loans and investment securities was subject to state income taxes.

Three Months Ended

March 31, 2026

June 30, 2026

Three Months Ended

March 31, 2025

June 30, 2025

(Dollars in thousands)

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Allowance for loan losses

Net loans (2)(3)

Total earning assets

Interest-Bearing Funds:

Interest-Bearing Liabilities:

Interest-bearing deposits

1 unchanged sentence

Long-term borrowings

Total Interest-Bearing Funds

Total Interest-Bearing Liabilities

Noninterest-bearing deposits

2 unchanged sentences

SHAREHOLDERS’ EQUITY

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

NET INTEREST INCOME

1 unchanged sentence

NET INTEREST MARGIN

The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%.

The interest income and the yields on federally nontaxable loans and investment securities are presented on a fully tax-equivalent basis using the statutory federal income tax rate of 21%.

Nonaccruing loans are included in the daily average loan amounts outstanding.

Loans held for sale and leases are included in the daily average loan amounts outstanding.

The following table shows the unaudited consolidated daily average balance of major categories of assets and liabilities for the three-month periods ended March 31, 2026 and December 31, 2025, respectively, with the interest and rate earned or paid on such amount.

The following table shows the unaudited consolidated daily average balance of major categories of assets and liabilities for the three-month periods ended June 30, 2026 and March 31, 2026, respectively, with the interest and rate earned or paid on such amount.

Interest income on all loans and investment securities was subject to state income taxes.

Three Months Ended

March 31, 2026

June 30, 2026

Three Months Ended

December 31, 2025

March 31, 2026

(Dollars in thousands)

5 unchanged sentences

Allowance for loan losses

Net loans (2)(3)

Total earning assets

Interest-Bearing Funds:

Interest-Bearing Liabilities:

Interest-bearing deposits

1 unchanged sentence

Long-term borrowings

Total Interest-Bearing Funds

Total Interest-Bearing Liabilities

Noninterest-bearing deposits

2 unchanged sentences

SHAREHOLDERS’ EQUITY

TOTAL LIABILITIES AND

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

NET INTEREST INCOME

INTEREST SPREAD

NET INTEREST MARGIN

The interest income and the yields on federally nontaxable loans and investment securities are presented on a fully tax-equivalent basis using the statutory federal income tax rate of 21%.

Nonaccruing loans are included in the daily average loan amounts outstanding.

Loans held for sale and leases are included in the daily average loan amounts outstanding.

The following table shows the unaudited consolidated daily average balance of major categories of assets and liabilities for the six-month periods ended June 30, 2026 and 2025, respectively, with the interest and rate earned or paid on such amount.

Interest income on all loans and investment securities was subject to state income taxes.

Six Months Ended

June 30, 2026

Six Months Ended

June 30, 2025

(Dollars in thousands)

Earning Assets:

Federal funds sold and securities repurchased under agreements to resell and other short-term investments

Investment Securities:

Total Securities

Loans, net of unearned income (2)(3)

Allowance for loan losses

Total earning assets

Interest-Bearing Liabilities:

Interest-bearing deposits

Short-term borrowings

Long-term borrowings

Total Interest-Bearing Liabilities

Non-interest bearing deposits

Accrued expenses and other liabilities

TOTAL LIABILITIES

SHAREHOLDERS’ EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

NET INTEREST INCOME

1 unchanged sentence

NET INTEREST MARGIN

The interest income and the yields on federally nontaxable loans and investment securities are presented on a tax-equivalent basis using the statutory federal income tax rate of 21%.

The interest income and the yields on federally nontaxable loans and investment securities are presented on a fully tax-equivalent basis using the statutory federal income tax rate of 21%.

Nonaccruing loans are included in the daily average loan amounts outstanding.

1 unchanged sentence

Provision for Credit Losses

The provision for credit losses was $7.78 million for the first quarter of 2026 as compared to a provision for credit losses of $29.10 million for the first quarter of 2025.

On a linked-quarter basis, the provision for credit losses for the fourth quarter of 2025 was $6.78 million.

The provision for credit losses for the first quarter of 2025 included provision expense of $18.73 million recorded for purchased non-PCD loans from Piedmont.

The provision for credit losses was $4.96 million and $12.74 million for the second quarter and first half of 2026, respectively, as compared to a provision for credit losses of $5.89 million and $34.99 million for the second quarter and first half of 2025, respectively.

On a linked-quarter basis, the provision for credit losses for the first quarter of 2026 was $7.78 million.

The provision for credit losses for the first quarter and first half of 2025 included provision expense of $18.73 million recorded for purchased non-PCD loans from Piedmont.

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

For the quarter ended March 31, 2026, the provision for loan and lease losses was $7.78 million as compared to a provision for loan and lease losses of $29.10 million for the quarter ended March 31, 2025.

The lower amount of provision expense for the first quarter of 2026 compared to the first quarter of 2025 was mainly due to the previously mentioned provision expense of $18.73 million recorded for purchased non-PCD loans from Piedmont during the first quarter of 2025.

Net charge-offs were $5.70 million for the first quarter of 2026 compared to net charge-offs of $8.04 million for the first quarter of 2025.

The lower amount of net charge-offs for 2026 as compared to 2025 was primarily due to decreased charge-offs within the consumer and other commercial loan segments.

On a linked-quarter basis, the provision for loan and lease losses for the fourth quarter of 2025 was $6.78 million.

Net charge-offs were $9.31 million for the fourth quarter of 2025.

Annualized net charge-offs as a percentage of average loans and leases, net of unearned income for the first quarter of 2026 was 0.15% as compared to annualized net charge-offs of 0.14% for the first quarter of 2025 and annualized net charge-offs of 0.15% for the fourth quarter of 2025.

The following table shows a summary of United’s nonperforming assets including nonperforming loans and other real estate owned (“OREO”) at March 31, 2026 and December 31, 2025:

For the quarter ended June 30, 2026, the provision for loan and lease losses was $4.96 million as compared to a provision for loan and lease losses of $5.89 million for the quarter ended June 30, 2025.

The provision for loan and lease losses for the first six months of 2026 was $12.74 million as compared to a provision for loan and lease losses of $34.99 million for the first six months of 2025.

The higher amount of provision expense for the first half of 2025 was mainly due to the previously mentioned provision expense of $18.73 million recorded for purchased non-PCD loans from Piedmont.

Net charge-offs for the second quarter and first six months of 2026 were $5.06 million and $10.75 million, respectively, as compared to net charge-offs of $8.35 million and $16.39 million, respectively, for the second quarter and first six months of 2025.

The lower amount of net charge-offs for 2026 as compared to 2025 was primarily due to decreased charge-offs within the consumer and other commercial real estate nonowner-occupied loan segments.

On a linked-quarter basis, the provision for loan and lease losses was $7.78 million for the first quarter of 2026.

Net charge-offs were $5.70 million for the first quarter of 2026.

Annualized net charge-offs as a percentage of average loans and leases, net of unearned income for the second quarter and first half of 2026 was 0.08% and 0.09%, respectively, as compared to annualized net charge-offs of 0.14% for both time periods in 2025.

Annualized net charge-offs as a percentage of average loans and leases, net of unearned income for the first quarter of 2026 was 0.09%.

The following table shows a summary of United’s nonperforming assets including nonperforming loans and other real estate owned (“OREO”) at June 30, 2026 and December 31, 2025:

(In thousands)

6 unchanged sentences

The combined allowance for loan losses and reserve for lending-related commitments is considered the allowance for credit losses.

At March 31, 2026, the allowance for credit losses was $336.65 million as compared to $332.59 million at December 31, 2025.

At March 31, 2026, the allowance for loan and lease losses was $299.60 million as compared to $297.52 million at December 31, 2025.

The allowance for loan and lease losses at March 31, 2026 saw the largest increase in the reserves for the commercial real estate nonowner-occupied loan segment from year-end 2025 due to increased outstanding loan balances and an increased adjustment resulting from the reasonable and supportable forecast around economic and business conditions.

The largest decrease in reserves at March 31, 2026 was for the real estate construction and development loan segment due to a decreased adjustment within the reasonable and supportable forecast around strength and growth of the segment.

As a percentage of loans and leases, net of unearned income, the allowance for loan and lease losses was 1.20% at both March 31, 2026 and December 31, 2025.

The ratio of the allowance for loan and lease losses to nonperforming loans and leases or coverage ratio was 291.34% and 293.22% at March 31, 2026 and December 31, 2025, respectively.

At June 30, 2026, the allowance for credit losses was $336.73 million as compared to $332.59 million at December 31, 2025.

At June 30, 2026, the allowance for loan and lease losses was $299.50 million as compared to $297.52 million at December 31, 2025.

The allowance for loan and lease losses at June 30, 2026 saw the largest increase in the reserves for the commercial real estate nonowner-occupied loan segment from year-end 2025 due to increased outstanding loan balances and an increase in the allowance for individually evaluated loans.

The largest decrease in reserves at June 30, 2026 was for the real estate construction and development loan segment due to an improvement in the historical loss rate and decreased outstanding loan balances.

As a percentage of loans and leases, net of unearned income, the allowance for loan and lease losses was 1.20% for both June 30, 2026 and December 31, 2025.

The ratio of the allowance for loan and lease losses to nonperforming loans and leases or coverage ratio was 270.68% and 293.22% at June 30, 2026 and December 31, 2025, respectively.

The slight decrease in this ratio was due mainly to a larger increase in nonperforming loans as compared to the increase in the allowance for loan and lease losses.

3 unchanged sentences

If current conditions underlying any qualitative adjustment factor were deemed to be materially different than historical conditions, an adjustment was made for that factor.

The first quarter of 2026 qualitative adjustments include analyses of the following:

The second quarter of 2026 qualitative adjustments include analyses of the following:

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

2 unchanged sentences

and concentrations of credit.

Reasonable and supportable forecasts – The forecast is determined on a portfolio-by-portfolio basis by relating the correlation of real GDP and the unemployment rate to loss rates to forecasts of those variables.

Reasonable and supportable forecasts – The forecast is determined on a portfolio-by-portfolio basis by relating the correlation of real GDP, the unemployment rate, commercial real estate price index, mortgage rate, house price index and real disposable personal income to loss rates to forecasts of those variables.

The reasonable and supportable forecast selection is subjective in nature and requires more judgment compared to the other components of the allowance.

Assumptions for the economic variables were the following:

The forecast for real GDP improved slightly in the first quarter, from a projection of 2.30% for 2026 as of mid-December 2025 to 2.40% for 2026 as of mid-March with a projection of 2.30% for 2027.

The unemployment rate forecast remained the same in the first quarter with a projection of 4.40% for 2026 as of mid-December 2025 and mid-March 2026 with a slightly lower projection of 4.30% 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.

The forecast for real GDP declined slightly in the second quarter, from a projection of 2.40% for 2026 as of mid-March 2026 to 2.20% for 2026 as of mid-June with a projection of 2.30% for 2027.

The unemployment rate forecast improved slightly in the second quarter with a projection of 4.40% for 2026 as of mid-March 2026 to 4.30% as of mid-June 2026 with projection of 4.30% for 2027.

The forecast for the house price index declined in the second quarter with a projection of 0.67% for 2026 and 0.70% for 2027 compared to 1.82% and 2.24% for 2026 and 2027, respectively, in the first quarter.

Similarly, the mortgage rate increased to 6.32% for 2026 and 2027 during the second quarter compared to 6.13% in 2026 and 6.22% in 2027 in the first quarter.

The real disposable personal income forecast declined for 2026 from 2.03% in the first quarter to 0.87% in the second quarter but improved for 2027 from 2.13% in the first quarter to 2.40% in the second quarter.

The outlook for the commercial real estate price index experienced minimal change in the second quarter as compared to the first quarter of 2026.

Reversion to historical loss data occurs via a straight-line method during the year following the one-year reasonable and supportable forecast period.

United’s review of the allowance for loan and lease losses at March 31, 2026 produced increased reserves in two of the four loan categories as compared to December 31, 2025.

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 $5.75 million due to increased outstanding loan balances.

The consumer loan segment reserve increased $738 thousand 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 $4.09 million due to improvement in the reasonable and supportable adjustment.

United’s review of the allowance for loan and lease losses at June 30, 2026 produced increased reserves in two of the four loan categories as compared to December 31, 2025.

The allowance related to the commercial, financial & agricultural loan pool, consisting of the owner and nonowner-occupied commercial real estate and other commercial loan segments, increased $8.02 million due to increased outstanding loan balances.

The consumer loan segment reserve increased $988 thousand primarily due to an increase in the quarterly maximum loss experience utilized within the reasonable and supportable forecast adjustment as well as increased outstanding loan balances.

The real estate construction and development loan segment reserve decreased $6.65 million due to decreased outstanding loan balances as well as improvement in the reasonable and supportable adjustment.

The residential real estate loan segment reserve decreased $377 thousand due to an improvement in historical loss rates.

5 unchanged sentences

When the selected measure is less than the recorded investment in the loan, an expected credit loss has occurred.

The allowance for loans and leases that were individually assessed was $10.60 million at March 31, 2026 and $8.04 million at December 31, 2025.

The allowance for loans and leases that were individually assessed was $17.68 million at June 30, 2026 and $8.04 million at December 31, 2025.

In comparison to year-end, this element of the allowance increased $9.64 million due to collateral weaknesses identified in several relationships which necessitated individually assessed reserves and increases to reserves previously identified.

Management believes that the allowance for credit losses of $336.65 million at March 31, 2026 is appropriate to provide for expected losses on existing loans and lending-related commitments based on information currently available.

Management believes that the allowance for credit losses of $336.73 million at June 30, 2026 is appropriate to provide for expected losses on existing loans and lending-related commitments based on information currently available.

United’s loan administration policies are focused on the risk characteristics of the loan portfolio in terms of loan approval and credit quality.

3 unchanged sentences

It is the opinion of management that these commercial loans do not pose any unusual risks and that adequate consideration has been given to these loans in establishing the allowance for credit losses.

The provision for credit losses related to held to maturity securities for the first quarter of 2026 and 2025 was immaterial.

The allowance for credit losses related to held to maturity securities was $16 thousand as of March 31, 2026 as well as December 31, 2025.

There was no provision for credit losses recorded on available for sale investment securities for the first quarter of 2026 and 2025 and no allowance for credit losses on available for sale investment securities as of March 31, 2026 and December 31, 2025.

The provision for credit losses related to held to maturity securities for the second quarter of 2026 and 2025 was immaterial.

The allowance for credit losses related to held to maturity securities was $14 thousand and $16 thousand, respectively, as of June 30, 2026 and December 31, 2025.

There was no provision for credit losses recorded on available for sale investment securities for the first half of 2026 and 2025 and no allowance for credit losses on available for sale investment securities as of June 30, 2026 and December 31, 2025.

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.

3 unchanged sentences

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

Noninterest income for the first quarter of 2026 was $34.06 million, an increase of $4.51 million or 15.26% from the first quarter of 2025.

This increase was driven by increases in fees from brokerage services and net gains on investment securities.

Fees from brokerage services for the first quarter of 2026 increased $1.76 million or 31.14% from the first quarter of 2025 due to higher volume driven by growth in the business.

Net gains on investment securities were $2.27 million for the first quarter of 2026 as compared to net gains on investment securities were $521 thousand for the first quarter of 2025.

The net gains on investment securities in the first quarter of 2026 were primarily due to a net gain on the sale of equity securities whereas the net gains on investment securities in the first quarter of 2025 were due to an increase in the fair value of equity securities.

On a linked-quarter basis, noninterest income for the first quarter of 2026 increased of $3.13 million, or 10.11%, from the fourth quarter of 2025.

Net gains on investment securities were $2.27 million for the first quarter of 2026 as compared to net losses on investment securities of $218 thousand for the fourth quarter of 2025.

Net gains on investment securities for the first quarter of 2026 were primarily due to the above mentioned gains on sales of equity securities.

Fees from brokerage services increased $1.45 million from the fourth quarter of 2025, primarily due to previously mentioned higher volume driven by growth in the business.

Noninterest income for the second quarter of 2026 was $38.51 million, an increase of $7.05 million or 22.40% from the second quarter of 2025.

Noninterest income for the first half of 2026 was $72.57 million, an increase of $11.56 million or 18.94% from the first half of 2025.

These increases were driven primarily by increases in fees from brokerage services and net gains on investment securities.

Fees from brokerage services for the second quarter and first half of 2026 increased $1.90 million or 39.12% and $3.66 million or 34.83%, respectively, from the second quarter and first half of 2025 due to higher volume driven by growth in the business.

Net gains on investment securities were $2.79 million for the second quarter of 2026 as compared to net gains on investment securities of $425 thousand for the second quarter of 2025.

The net gains on investment securities for the second quarter of 2026 included a gain of $5.86 million as a result of the sale of an unaffiliated company in which United held an investment, a $5.66 million gain from a VISA share exchange, and a $1.00 million unrealized fair value net gain on equity securities.

Partially offsetting these gains on investment securities was a loss of $9.73 million on the sale of available for sale investment securities.

For the first six months of 2026, net gains on investment securities were $5.05 million as compared to net gains on investment securities of $946 thousand for the first six months of 2025.

Net gains on investment securities for the first half of 2026 included the aforementioned gain as a result of the sale of an unaffiliated company in which United held an investment, the VISA share exchange gain and unrealized fair value net gain on equity securities as well as a net gain of $2.29 million on the sale of equity securities in the first quarter of 2026.

Partially offsetting these gains on investment securities was the aforementioned loss on the sale of available for sale investment securities.

Other noninterest income for the second quarter and first half of 2026 increased $1.95 million or 92.72% and $2.67 million or 98.05% from the second quarter and first half of 2025, respectively.

These increases in other noninterest income were primarily due to higher market values of underlying investments associated with postretirement benefit plans, which was largely offset by an increase in postretirement benefit costs recorded in noninterest expense as described in the “Other Expenses” section of this MD&A.

Income from bank-owned life insurance (“BOLI”) for the first half of 2026 decreased $860 thousand or 12.31% from the first half of 2025 due primarily to death proceeds of $1.07 million in the first half of 2025 partially offset by income on BOLI policies added from the Piedmont acquisition and an increase in the cash surrender value of insurance policies.

On a linked-quarter basis, noninterest income for the second quarter of 2026 increased of $4.44 million, or 13.04%, from the first quarter of 2026 driven by a $2.71 million increase in other noninterest income and smaller increases in several other categories of noninterest income.

The increase in other noninterest income was primarily due to higher market values of underlying investments associated with postretirement benefit plans, which was largely offset by an increase in postretirement benefit costs recorded in noninterest expense.

Other Expenses

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Other expenses include all items of expense other than interest expense, the provision for credit losses, and income taxes.

Noninterest expense for the first quarter of 2026 was $152.81 million which was relatively flat from the first quarter of 2025, decreasing $759 thousand or less than 1%.

The first quarter of 2025 included $11.31 million of merger-rated expenses from the Piedmont acquisition.

Employee compensation for the first quarter of 2026 increased $2.63 million or 4.32% when compared to the first quarter of 2025.

The increase in employee compensation was primarily due to higher employee incentives and higher brokerage commissions.

Employee compensation for the first quarter of 2025 included $1.17 million in merger-related expenses.

Employee benefits expense for the first quarter of 2026 increased $2.69 million or 20.23% from the first quarter of 2025.

Noninterest expense for the second quarter of 2026 was $154.72 million, which was an increase of $6.70 million or 4.52% from the second quarter of 2025.

For the first half of 2026, noninterest expense was $307.53 million, which was an increase of $5.94 million or 1.97% from the first half of 2025.

The second quarter and first six months of 2025 included $1.32 million and $12.63 million, respectively, of merger-related expenses from the Piedmont acquisition.

Employee compensation for the second quarter and first half of 2026 increased $3.62 million or 5.75% and $6.25 million or 5.05%, respectively, from the second quarter and first half of 2025.

The increase in employee compensation was primarily due to higher salaries, brokerage commissions, employee incentives, and stock-based compensation costs.

Included in employee compensation for the second quarter and first half of 2025 were $310 thousand and $1.46 million, respectively, in merger-related expenses.

Employee benefits expense for the second quarter of 2026 increased $2.86 million or 21.30% from the second quarter of 2025.

This increase in employee benefits was primarily due to higher postretirement benefit costs.

Employee benefits expense for the first half of 2026 increased $5.55 million or 20.77%, from the first half of 2025.

This increase in employee benefits was primarily due to higher post-retirement benefit and Federal Insurance Contributions Act (“FICA”) costs.

Data processing expense for the first quarter of 2026 decreased $1.45 million or 17.20% from the first quarter of 2025.

Net occupancy for the first half of 2026 increased $995 thousand or 3.96% from the first half of 2025.

This increase was due mainly to increased building maintenance, real property taxes and utilities costs.

Equipment expense for the second quarter and first half of 2026 increased $884 thousand or 10.34% and $1.04 million or 6.08%, respectively, from the second quarter and first half of 2025.

These increases were due to higher equipment maintenance expense.

Data processing expense for the second quarter and first half of 2026 decreased $804 thousand or 10.11% and $2.26 million or 13.76%, respectively, from the second quarter and first half of 2025.

The decrease in data processing was primarily due to technology contract renegotiations.

Other expense for the first quarter of 2026 decreased $5.43 million or 12.21% from the first quarter of 2025.

Within other expense for the first quarter of 2026, merger-related expenses decreased $6.00 million and consulting fees declined $2.93 million from the first quarter of 2025.

These decreases within other expense were partially offset by increases of $873 thousand in the amortization of investment tax credits and $811 thousand in business franchise taxes.

On a linked-quarter basis, noninterest expense for the first quarter of 2026 was relatively flat from the fourth quarter of 2025, increasing $1.10 million, or less than 1%.

An increase in employee benefits of $3.01 million and an increase in Federal Deposit Insurance Corporation (“FDIC”) insurance expense of $1.06 million was mostly offset by a $1.08 million decrease in data processing expense and a $1.79 million decrease in other expense.

The increase in employee benefits was primarily due to higher FICA and post-retirement benefit costs.

FDIC insurance expense for the fourth quarter of 2025 included a $1.2 million reduction of expense reflecting the FDIC’s reduced estimates related to the special assessment.

The decrease in data processing was primarily due to the previously mentioned technology contract renegotiations.

Within other expense, the amortization of investment tax credits declined $920 thousand.

For the first quarter of 2026, income tax expense was $31.79 million as compared to $22.63 million for the first quarter of 2025.

The increase of $9.16 million was primarily due to higher earnings partially offset by a lower effective tax rate.

On a linked-quarter basis, income tax expense increased $720 thousand primarily due to a higher effective tax rate partially offset by lower earnings.

United’s effective tax rate was 20.38% for the first quarter of 2026, 21.16% for the first quarter of 2025 and 19.43% for the fourth quarter of 2025.

Other expense for the second quarter of 2026 decreased $812 thousand or 2.18% from the second quarter of 2025.

Within other expense for the second quarter of 2026, consulting fees declined $1.98 million and merger-related expenses decreased $961 thousand from the second quarter of 2025.

These decreases within other expense were partially offset by increases of $1.32 million in the amortization of investment tax credits and $923 thousand in the expense for the reserve for unfunded commitments.

Other expense for the first half of 2026 decreased $6.24 million or 7.64% from the first half of 2025.

Within other expense, merger-related expenses decreased $6.96 million and the amortization of core deposit intangibles declined $1.01 million.

Partially offsetting these decreases was an increase in the expense for the reserve for unfunded commitments of $1.24 million due to an increase in outstanding loan commitments.

The expense for the reserve for unfunded loan commitments for the first half of 2025 included $4.06 million in merger-related expense.

On a linked-quarter basis, noninterest expense for the second quarter of 2026 increased $1.90 million or 1.24% from the first quarter of 2026 due primarily to an increase in employee compensation of $3.06 million.

The increase in employee compensation was primarily due to the timing of annual salary increases, stock-based compensation costs, and employee incentives.

Partially offsetting this increase was a decrease of $2.57 million in other noninterest expense.

Within other expense, the expense for the reserve for unfunded commitments decreased $1.80 million which reflected a smaller increase in outstanding loan commitments during the second quarter of 2026 as compared to the increase during the first quarter of 2026.

For the second quarter of 2026, income tax expense was $32.77 million as compared to $31.37 million in the second quarter of 2025.

For the first half of 2026, income tax expense was $64.55 million as compared to $53.99 million in the first half of 2025.

On a linked-quarter basis, income tax expense increased $977 thousand or 3.07% from the first quarter of 2026.

All of these increases in income tax expense were primarily due to higher earnings partially offset by lower effective tax rates.

United’s effective tax rate was 19.96% for the second quarter of 2026, 20.62% for the second quarter of 2025 and 20.38% for the first quarter of 2026.

For the first half of 2026 and 2025, United’s effective tax rate was 20.16% and 20.85%, respectively.

Liquidity and Capital Resources

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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.

During the first quarter of 2026, United decreased its interest-bearing deposit balance at the FRB by $264.52 million to $1.97 billion.

The change in the balance at the FRB was mostly the result of growth in loans of $154.34 million, net purchases of $164.18 million in available for sale debt securities and a net repayment of $32.40 million in securities sold under agreements to repurchase partially offset by a growth in total deposits of $59.95 million.

For the three months ended March 31, 2026, cash of $160.86 million was provided by operating activities due mainly to net income of $124.20 million.

In addition, proceeds from the sale of mortgage loans in the secondary market exceeded originations by $4.60 million and the provision for loan losses was $7.78 million for the first quarter.

Net cash of $304.11 million was used in investing activities which was primarily due to loan growth of $154.34 million and net purchases of investment securities of $145.46 million over proceeds from sales.

During the first three months of 2026, net cash of $93.96 million was used in financing activities due primarily to net acquisition of $70.26 million in treasury stock, cash dividends paid of $53.38 million and the net repayment of securities sold under agreements to repurchase of $32.40 million partially offset by growth in deposits of $59.95 million.

The net effect of the cash flow activities was a decrease in cash and cash equivalents of $237.22 million for the first three months of 2026.

At March 31, 2026, United had an unused borrowing amount at the FHLB of approximately $9.24 billion subject to delivery of collateral after certain trigger points and $4.89 billion without the delivery of additional collateral.

United has various unused lines of credit available from certain of its correspondent banks in the aggregate amount of $280 million, all of which was available at March 31, 2026.

At March 31, 2026, United’s borrowing capacity for the FRB Discount Window was $4.59 billion.

United did not have any borrowings from the FRB’s Discount Window during the first quarter of 2026.

During the first half of 2026, United decreased its interest-bearing deposit balance at the FRB by $517.17 million to $1.72 billion.

The change in the balance at the FRB was mostly the result of growth in loans of $286.87 million, net purchases of $267.87 million in investment securities and a net repayment of $31.58 million in securities sold under agreements to repurchase partially offset by a growth in total deposits of $109.82 million.

For the six months ended June 30, 2026, cash of $266.02 million was provided by operating activities due mainly to net income of $255.58 million.

Net cash of $564.99 million was used in investing activities which was primarily due to the aforementioned loan growth of $286.87 million and net purchases of investment securities of $267.87 million.

During the first six months of 2026, net cash of $161.97 million was used in financing activities due primarily to net acquisition of $136.25 million in treasury stock, cash dividends paid of $106.69 million and the net repayment of securities sold under agreements to repurchase of $31.58 million partially offset by growth in deposits of $109.82 million.

The net effect of the cash flow activities was a decrease in cash and cash equivalents of $460.95 million for the first half of 2026.

At June 30, 2026, United had an unused borrowing amount at the FHLB of approximately $9.25 billion subject to delivery of collateral after certain trigger points and $5.03 billion without the delivery of additional collateral.

United has various unused lines of credit available from certain of its correspondent banks in the aggregate amount of $280 million and a $20 million unsecured, revolving line of credit with an unrelated financial institution to provide for general liquidity needs, all of which was available at June 30, 2026.

At June 30, 2026, United’s borrowing capacity for the FRB Discount Window was $4.42 billion.

United did not have any borrowings from the FRB’s Discount Window during the first half of 2026.

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 is well-capitalized based upon regulatory guidelines.

United’s risk-based capital ratio is 15.54% at March 31, 2026 while its Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.27%, 13.27% and 11.24%, respectively.

United’s risk-based capital ratio is 15.57% at June 30, 2026 while its Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 13.30%, 13.30% and 11.29%, respectively.

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 $5.49 billion at March 31, 2026, which was a relatively flat from December 31, 2025, decreasing $7.86 million or less than 1%.

This slight decrease was primarily due to a decrease of $10.19 million in accumulated other comprehensive loss and an increase of $70.91 million in treasury stock.

During the first quarter of 2026, United repurchased 1,739,501 shares of its common stock at an average price of $39.92 per share.

Partially offsetting these decreases to shareholders’ equity was an increase of $71.03 million in retained earnings as a result of net earnings (net income less dividends declared) during the first quarter of 2026.

United’s shareholders’ equity to assets ratio was 16.28% at March 31, 2026 as compared to 16.33% at December 31, 2025.

The primary capital ratio, capital and reserves to total assets and reserves, was 17.11% at March 31, 2026 as compared to 17.15% at December 31, 2025.

United’s average shareholders’ equity to average asset ratio was 16.45% for the first quarter of 2026 as compared to 16.42% the first quarter of 2025.

During the first quarter of 2026, United’s Board of Directors declared a cash dividend of $0.38 per share.

Total cash dividends declared were $53.17 million for the first quarter of 2026 which was relatively flat from dividends declared of $53.34 million for the first quarter of 2025.

Total shareholders’ equity was $5.51 billion at June 30, 2026, which was relatively flat from December 31, 2025, increasing $14.55 million or less than 1%.

This slight increase was primarily due to an increase of $149.80 million in retained earnings as a result of net earnings (net income less dividends declared) during the first half of 2026 partially offset by an increase of $137.64 million in treasury stock.

During the first half of 2026, United repurchased 3,241,721 shares of its common stock at an average price of $41.78 per share.

United’s shareholders’ equity to assets ratio was 16.33% at June 30, 2026 as compared to 16.33% at December 31, 2025.

The primary capital ratio, capital and reserves to total assets and reserves, was 17.15% at both June 30, 2026 and December 31, 2025.

United’s average equity to average asset ratio was 16.38% for the second quarter of 2026 as compared to 16.42% the second quarter of 2025.

United’s average equity to average asset ratio was 16.42% for both the first half of 2026 and the first half of 2025.

All of these financial measurements reflect a financially sound position.

During the second quarter of 2026, United’s Board of Directors declared a cash dividend of $0.38 per share.

Cash dividends were $0.76 per common share for the first six months of 2026.

Total cash dividends declared were $52.61 million for the second quarter of 2026 and $105.78 million for the first six months of 2026 as compared to $52.75 million for the second quarter of 2025 and $106.08 million for the first six months of 2025, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis