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Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2025
Receivables [Abstract] |
Allowance for Credit Losses | N OTE F—ALLOWANCE FOR CREDIT LOSSES The allowance for loan losses is an estimate of the expected credit losses on financial assets measured at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset (contractual term). Assets are charged off when United determines that such financial assets are deemed uncollectible or based on regulatory requirements, whichever is earlier. Charge-offs are recognized as a deduction from the allowance for credit losses. Expected recoveries of amounts previously charged-off, not to exceed the aggregate of the amount previously charged-off, are included in determining the necessary reserve at the balance sheet date. United made a policy election to present the balance separately in its consolidated balance sheets from the amortized cost of a loan. Accrued interest receivable was $95,960,000 and $87,062,000 at December 31, 2025 and December 31, 2024, respectively, related to loans and leases are included separately in “Accrued interest receivable” in the consolidated balance sheets. For all classes of loans and leases receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due, unless the loan is well secured and in the process of collection. Interest received on nonaccrual loans and leases, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. The following table represents the accrued interest receivable as of December 31, 2025 and December 31, 2024:
|  | Accrued Interest Receivable |
(In thousands) |  | At December 31, 2025 |  |  | At December 31, 2024 |
Commercial Real Estate: |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 6,922 |  |  | $ | 4,700 |
Nonowner-occupied |  |  | 37,086 |  |  |  | 30,582 |
Other Commercial |  |  | 11,822 |  |  |  | 10,512 |
Residential Real Estate |  |  | 21,643 |  |  |  | 21,662 |
Construction |  |  | 16,046 |  |  |  | 17,174 |
Consumer: |  |  |  |  |  |  |  |
Bankcard |  |  | 0 |  |  |  | 0 |
Other consumer |  |  | 2,441 |  |  |  | 2,432 |
Total |  | $ | 95,960 |  |  | $ | 87,062 |
The following table represents the accrued interest receivables written off by reversing interest income for the year ended December 31, 2025 and December 31, 2024:
|  | Accrued Interest Receivables Written Off by Reversing Interest Income |
(In thousands) |  | Year Ended |
|  | 2025 |  |  | 2024 |
Commercial Real Estate: |  |  |  |  |  |  |  |
Owner-occupied |  | $ | 90 |  |  | $ | 186 |
Nonowner-occupied |  |  | 1,481 |  |  |  | 853 |
Other Commercial |  |  | 82 |  |  |  | 736 |
Residential Real Estate |  |  | 577 |  |  |  | 232 |
Construction |  |  | 267 |  |  |  | 23 |
Consumer: |  |  |  |  |  |  |  |
Bankcard |  |  | 0 |  |  |  | 0 |
Other consumer |  |  | 241 |  |  |  | 345 |
Total |  | $ | 2,738 |  |  | $ | 2,375 |
United maintains an allowance for loan losses and a reserve for lending-related commitments such as unfunded loan commitments and letters of credit. For a detailed discussion of the methodology used to estimate the reserve for lending-related commitments, see Note A, “Summary of Significant Accounting Policies.” The reserve for lending-related commitments of $35,075,000 and $34,911,000 at December 31, 2025 and December 31, 2024, respectively, is separately classified on the balance sheet within liabilities. The combined allowance for loan losses and reserve for lending-related commitments is considered the allowance for credit losses. United continuously evaluates any risks which may impact its loan and lease portfolios. Reserves are initially determined based on losses identified from the PD/LGD and Cohort models which utilize the Company’s historical information. Then any qualitative adjustments are applied to account for the Company’s view of the future and other factors. If current conditions underlying any qualitative adjustment factor were deemed to be materially different than historical conditions, then an adjustment was made for that factor. United’s allowance for loan and lease losses at December 31, 2025 increased $25,674,000 or 9.44% from December 31, 2024. As previously mentioned, during the year of 2025, United recorded an allowance for loan and lease losses on acquired Piedmont non-PCD loans of $18,726,000 and on acquired Piedmont PCD loans of $17,518,000. The year of 2025 qualitative adjustments include analyses of the following:
| • |  | Current conditions – United considered the impact of changes in economic and business conditions; collateral values for dependent loans; past due, nonaccrual and adversely classified loans and leases; external environment; 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. 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:
| Ø |  | The forecast for real GDP improved in the fourth quarter, from a projection of 1.80% for 2026 as of mid-September 2025 to 2.30% for 2026 as of mid-December with a projection of 2.00% for 2027. The unemployment rate forecast remained consistent in the fourth quarter with a projection of 4.40% for 2026 as of mid-September 2025 and as of mid-December with a projection of 4.20% for 2027.
| Ø |  | Greater risk of loss in the office portfolio due to continued hybrid and remote work that may be exacerbated by future economic conditions.
| Ø |  | Reversion to historical loss data occurs via a straight-line method during the year following the one-year reasonable and supportable forecast period.
A progression of the allowance for loan losses, by portfolio segment, for the periods indicated is summarized as follows:
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases For the Year Ended December 31, 2025 |
|  | Commercial Real Estate |  |  | Other Commercial |  |  | Residential Real Estate |  |  | Construction & Land Development |  |  | Bankcard |  |  | Other Consumer |  |  | Total |
(In thousands) |  | Owner- occupied |  |  | Nonowner- occupied |
Allowance for Loan and Lease Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 11,852 |  |  | $ | 74,522 |  |  | $ | 65,105 |  |  | $ | 46,373 |  |  | $ | 63,621 |  |  | $ | 891 |  |  | $ | 9,480 |  |  | $ | 271,844 |
Initial allowance for PCD loans (acquired during the period) |  |  | 795 |  |  |  | 11,059 |  |  |  | 872 |  |  |  | 208 |  |  |  | 4,584 |  |  |  | 0 |  |  |  | 0 |  |  |  | 17,518 |
Charge-offs |  |  | (228 | ) |  |  | (35,798 | ) |  |  | (5,424 | ) |  |  | (999 | ) |  |  | (408 | ) |  |  | (320 | ) |  |  | (7,735 | ) |  |  | (50,912 | )
Recoveries |  |  | 318 |  |  |  | 160 |  |  |  | 2,309 |  |  |  | 704 |  |  |  | 225 |  |  |  | 55 |  |  |  | 1,429 |  |  |  | 5,200 |
Provision |  |  | 827 |  |  |  | 46,773 |  |  |  | (1,133 | ) |  |  | 7,663 |  |  |  | (10,055 | ) |  |  | 263 |  |  |  | 9,530 |  |  |  | 53,868 |
Ending balance |  | $ | 13,564 |  |  | $ | 96,716 |  |  | $ | 61,729 |  |  | $ | 53,949 |  |  | $ | 57,967 |  |  | $ | 889 |  |  | $ | 12,704 |  |  | $ | 297,518 |
Allowance for Loan and Lease Losses and Carrying Amount of Loans and Leases For the Year Ended December 31, 2024 |
(In thousands) |  | Commercial Real Estate |  |  | Other Commercial |  |  | Residential Real Estate |  |  | Construction & Land Development |  |  | Bankcard |  |  | Other Consumer |  |  | Total |
| Owner- occupied |  |  | Nonowner- occupied |
Allowance for Loan and Lease Losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 11,895 |  |  | $ | 57,935 |  |  | $ | 75,007 |  |  | $ | 41,167 |  |  | $ | 59,913 |  |  | $ | 810 |  |  | $ | 12,510 |  |  | $ | 259,237 |
Charge-offs |  |  | (116 | ) |  |  | (2,581 | ) |  |  | (3,589 | ) |  |  | (481 | ) |  |  | (29 | ) |  |  | (431 | ) |  |  | (10,303 | ) |  |  | (17,530 | )
Recoveries |  |  | 1,183 |  |  |  | 200 |  |  |  | 1,650 |  |  |  | 495 |  |  |  | 319 |  |  |  | 19 |  |  |  | 1,119 |  |  |  | 4,985 |
Provision |  |  | (1,110 | ) |  |  | 18,968 |  |  |  | (7,963 | ) |  |  | 5,192 |  |  |  | 3,418 |  |  |  | 493 |  |  |  | 6,154 |  |  |  | 25,152 |
Ending balance |  | $ | 11,852 |  |  | $ | 74,522 |  |  | $ | 65,105 |  |  | $ | 46,373 |  |  | $ | 63,621 |  |  | $ | 891 |  |  | $ | 9,480 |  |  | $ | 271,844 |
A progression of the allowance for credit losses, which includes the allowance for loan losses and the reserve for lending-related commitments, for the periods presented is summarized as follows:
|  | Year Ended December 31 |
(In thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
Balance of allowance for loan and lease losses at beginning of period |  | $ | 271,844 |  |  | $ | 259,237 |  |  | $ | 234,746 |
Initial allowance for acquired PCD loans |  |  | 17,518 |  |  |  | 0 |  |  |  | 0 |
Gross charge-offs |  |  | (50,912 | ) |  |  | (17,530 | ) |  |  | (11,304 | )
Recoveries |  |  | 5,200 |  |  |  | 4,985 |  |  |  | 4,641 |
Net charge-offs |  |  | (45,712 | ) |  |  | (12,545 | ) |  |  | (6,663 | )
Provision for loan and lease losses |  |  | 53,868 |  |  |  | 25,152 |  |  |  | 31,154 |
Balance of allowance for loan and lease losses at end of period |  | $ | 297,518 |  |  | $ | 271,844 |  |  | $ | 259,237 |
Reserve for lending-related commitments |  |  | 35,075 |  |  |  | 34,911 |  |  |  | 44,706 |
Balance of allowance for credit losses at end of period |  | $ | 332,593 |  |  | $ | 306,755 |  |  | $ | 303,943 |

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