Financial Performance - Net income for the three months ended September 30, 2025, was $91,494 thousand, representing a significant increase of 93.5% compared to $47,347 thousand in the prior year[14]. - Net income for the nine months ended September 30, 2025, was $241,640,000, an increase from $176,593,000 in the same period of 2024, representing a growth of 36.8%[19]. - For Q3 2025, net income was $91.5 million, with diluted earnings per share of $0.70, compared to $47.3 million and $0.38 in Q3 2024, representing a 93% increase in net income[151]. - The diluted earnings per share for the three months ended September 30, 2025, was $0.70, up from $0.38 in the same period of 2024, reflecting an increase of 84.2%[136]. - The company reported a net charge-off of $12.854 million for the three months ended September 30, 2025, compared to a charge-off of $26.974 million in the same period of the previous year[89]. Revenue and Income Sources - Net interest revenue for the three months ended September 30, 2025, was $233,629 thousand, up 11.7% from $209,186 thousand in the same period of 2024[14]. - Noninterest income for the nine months ended September 30, 2025, totaled $113,583 thousand, a 34.9% increase from $84,234 thousand in the same period of 2024[14]. - Noninterest income surged by 435% year-over-year to $43,219 thousand in Q3 2025, compared to $8,091 thousand in Q3 2024[161]. - Total revenue rose by 27% year-over-year to $276,848 thousand in Q3 2025, up from $217,277 thousand in Q3 2024[161]. Assets and Liabilities - Total assets increased to $28,143,473 thousand as of September 30, 2025, compared to $27,720,258 thousand at December 31, 2024, reflecting a growth of 1.5%[12]. - Total liabilities stood at $24,546,622 thousand as of September 30, 2025, compared to $24,288,131 thousand at December 31, 2024, indicating a growth of 1.1%[12]. - The carrying value of loans held for investment as of September 30, 2025, was $18,399,997,000, an increase from $17,325,630,000 on December 31, 2024[131]. - The total carrying value of pledged securities as of September 30, 2025, was $2.50 billion, down from $3.20 billion as of December 31, 2024[37]. Deposits and Cash Management - Total deposits rose to $24,020,618 thousand as of September 30, 2025, an increase of 2.4% from $23,460,975 thousand at December 31, 2024[12]. - The balance of cash and cash equivalents at the end of the period was $613,431,000 for September 30, 2025, down from $740,039,000 at the same date in 2024[19]. - The bank's liquidity management strategy includes maximizing liquid funds, with available cash and cash equivalents at $613.431 million as of September 30, 2025[211]. Credit Quality and Losses - The provision for credit losses decreased to $7,907 thousand for the three months ended September 30, 2025, down from $14,428 thousand in the same period of 2024[14]. - The total Allowance for Credit Losses (ACL) for loans was $215.791 million, reflecting a decrease from $228.276 million at the end of the previous quarter[88]. - Nonperforming Assets (NPAs) decreased to $97.92 million as of September 30, 2025, from $115.64 million at December 31, 2024, with nonaccrual loans as a percentage of total loans at 0.50%[196]. Acquisition and Goodwill - The company completed the acquisition of ANB on May 1, 2025, acquiring $447 million in assets and assuming $381 million in liabilities[150]. - The company recorded goodwill of $18,029,000 related to the acquisition of ANB, reflecting the intangible value of the business and its reputation[27]. - Goodwill and other intangible assets increased to $971 million, reflecting the acquisition of ANB, which added $18 million in goodwill[201]. Capital and Shareholder Returns - As of September 30, 2025, the CET1 capital ratio was 13.44%, well above the minimum requirement of 4.5%[138]. - Total capital as of September 30, 2025, was $3,073,175,000, compared to $2,982,273,000 on December 31, 2024, showing an increase of 3%[138]. - The company redeemed all outstanding shares of its 6.875% Series I preferred stock on September 15, 2025, resulting in a cash payment of $91.5 million[140]. Loan Portfolio and Growth - The total loan portfolio increased to $19.175 billion as of September 30, 2025, up from $18.176 billion at December 31, 2024, representing a growth of approximately 5.5%[56]. - The commercial loan segment totaled $14.347 billion as of September 30, 2025, compared to $13.506 billion at December 31, 2024, reflecting an increase of approximately 6.2%[56]. - Mortgage loans originated increased by 18% to $282.66 million for the three months ended September 30, 2025, compared to $238.66 million in 2024[170]. Market and Economic Conditions - The U.S. enacted the One Big Beautiful Bill Act on July 4, 2025, making the 21% corporate tax rate permanent, which may impact the company's future tax liabilities[149]. - The bank's interest sensitivity position indicates a 3.32% increase in net interest revenue under a 200 basis point shock scenario as of September 30, 2025[209].
UNITED COM(UCBIO) - 2025 Q3 - Quarterly Report