Financial Performance - Net income for the three months ended June 30, 2025, was $78,733 thousand, up 18.2% from $66,615 thousand in the same period of 2024[13]. - Net income for the six months ended June 30, 2025, was $150,146 thousand, an increase from $129,246 thousand in the same period of 2024, representing a growth of approximately 16%[18]. - For the second quarter of 2025, net income was $78.7 million, an increase of 18.5% from $66.6 million in the same period of 2024[148]. - Diluted earnings per common share for the second quarter of 2025 were $0.63, up from $0.54 in the second quarter of 2024, representing a 16.7% increase[148]. - Return on common equity (GAAP) improved to 8.45% in the second quarter of 2025, compared to 7.53% in the second quarter of 2024[158]. Revenue and Income - Net interest revenue for the three months ended June 30, 2025, was $225,531 thousand, an increase of 8.8% compared to $208,700 thousand for the same period in 2024[13]. - Total revenue for the second quarter of 2025 was $260,239, reflecting a 6% increase from $245,256 in the second quarter of 2024[158]. - Noninterest income for the six months ended June 30, 2025, was $70,364 thousand, a decrease of 7.5% compared to $76,143 thousand for the same period in 2024[13]. - Noninterest income decreased by 5% to $34,708 in the second quarter of 2025 from $36,556 in the second quarter of 2024[158]. Assets and Liabilities - Total assets increased to $28,085,521 thousand as of June 30, 2025, up from $27,720,258 thousand at the end of 2024, representing a growth of 1.31%[12]. - Total liabilities increased to $24,472,597 thousand as of June 30, 2025, compared to $24,288,131 thousand at the end of 2024, reflecting a growth of 0.76%[12]. - Total deposits reached $23,963,012 thousand as of June 30, 2025, an increase of 2.14% from $23,460,975 thousand at the end of 2024[12]. - The balance of cash and cash equivalents at the end of the period was $574,956 thousand, compared to $562,863 thousand at the end of June 2024, indicating a year-over-year increase[18]. Credit Losses and Provisions - The provision for credit losses for the three months ended June 30, 2025, was $11,818 thousand, slightly down from $12,235 thousand in the same period of 2024[13]. - The company reported a provision for credit losses of $27,237 thousand for the six months ended June 30, 2025, compared to $25,134 thousand in 2024, marking an increase of approximately 8%[18]. - The Allowance for Credit Losses (ACL) for loans increased to $216.5 million as of June 30, 2025, reflecting an increase of $11.5 million from the previous period[87]. Loan Portfolio - The loan portfolio totaled $18.920 billion as of June 30, 2025, an increase from $18.176 billion at December 31, 2024, reflecting a growth of approximately 4.1%[56]. - Nonaccrual loans totaled $80.452 million as of June 30, 2025, compared to $113.579 million as of December 31, 2024, indicating a decrease of about 29.1%[62]. - The total commercial loans reached $14.157 billion, up from $13.506 billion, indicating a growth of about 4.8%[56]. Acquisition and Goodwill - The acquisition of ANB was completed on May 1, 2025, adding $447 million in assets and $301 million in loans[146]. - The carrying amount of goodwill increased to $925,119 thousand as of June 30, 2025, up from $907,090 thousand at the end of 2024[107]. - Goodwill and other intangible assets rose to $974 million as of June 30, 2025, from $957 million at December 31, 2024, due to the acquisition of ANB[198]. Regulatory and Capital Ratios - Regulatory capital ratios as of June 30, 2025, showed CET1 capital at 13.34%, significantly above the minimum requirement of 4.5%[137]. - The Bank maintained a "well-capitalized" status under regulatory requirements as of June 30, 2025[211]. Market and Economic Conditions - The baseline economic forecast worsened slightly due to larger-than-anticipated tariffs, negatively impacting forecasted unemployment and GDP[82]. - The company utilized a regression model based on historical data and economic forecasts to estimate expected credit losses, indicating a proactive approach to risk management[81]. Efficiency and Expenses - Noninterest expense for the second quarter of 2025 was $148 million, consistent with the expense reported for the same period in 2024[153]. - The efficiency ratio (GAAP) was 56.69% for the second quarter of 2025, slightly improved from 59.70% in the second quarter of 2024[158].
UNITED COM(UCBIO) - 2025 Q2 - Quarterly Report