UNITED COMMUNITY BANKS INC
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
UCB$36.99+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0000857855-25-000082
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000857855-25-000131
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 123 current paragraphs.
67 unchanged; 25 reworded; 25 added; 13 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 18 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Recent Developments
Current report
On May 1, 2025, we completed the acquisition of ANB, which was headquartered in Oakland Park, Florida where it operated one banking location. We acquired $447 million of assets, including goodwill, and assumed $381 million of liabilities in the acquisition, which included $301 million in loans and $374 million in deposits. Our operating results for the three and six months ended June 30, 2025 include ANB’s operating results for the period subsequent to the acquisition date.
Current report
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act, which includes a broad range of tax reform provisions affecting businesses. Of note, the 21% corporate tax rate provided by the Tax Cuts and Jobs Act of 2017, which was scheduled to sunset on December 31, 2025, was made permanent with the passing of this law.
Current report
Net interest revenue for the second quarter and first half of 2025 was $226 million and $438 million, respectively, compared to $209 million and $408 million, respectively, for the same periods of 2024. The increase in net interest revenue was mostly driven by lower deposit interest expense.
Current report
Net interest margin for the second quarter and first half of 2025 increased to 3.50% and 3.43%, respectively, from 3.37% and 3.28%, respectively, for the comparative 2024 periods. The increases in net interest margin were primarily due to the larger decrease in interest rates paid on deposits compared to the decrease in interest rates earned on loans.
Current report
We recorded a provision for credit losses of $11.8 million and $27.2 million for the second quarter and first half of 2025, respectively, which included $2.49 million for the initial ACL for ANB non-PCD loans and unfunded commitments. Provision expense for the comparative periods of 2024 was $12.2 million and $25.1 million.
Current report
Noninterest expense of $148 million and $289 million in the second quarter and first six months of 2025 were relatively consistent with the expense reported for the comparative periods of 2024. The three and six months of 2025 included ANB merger-related expense and higher communications and equipment expense, while the comparative periods of 2024 included a $5.10 million goodwill write-down related to the sale of FinTrust.
Current report
For the quarter:
Current report
FTE net interest revenue for the second quarter of 2025 was $227 million, an increase of $16.8 million from the same period in 2024. Net interest-rate spread and net interest margin were 2.62% and 3.50%, respectively, which were up 30 basis points and 13 basis points, respectively, compared to the second quarter of 2024. The interest rate changes during the past year included cuts of 100 basis points in the federal funds rate, which drove decreases in funding costs, and to a lesser extent, loan yields.
Current report
For the six months ended:
Current report
FTE net interest revenue for the first six months of 2025 and 2024 was $440 million and $410 million, respectively. During the first six months of 2025, our net interest spread increased 31 basis points and our net interest margin increased by 15 basis points compared to the same period of 2024. Changes in net interest revenue and related metrics for the six months ended 2025 were a result of the same factors affecting the quarter.
Current report
For the Six Months Ended June 30,
Current report
(dollars in thousands, (FTE))
Current report
Customer derivative fees for the three and six months ended June 30, 2025 were up due to stronger loan growth and increased product demand, attributable to the lower rates compared to the same periods of 2024.
Current report
The decrease in other investment income was primarily driven by weaker market conditions for the 2025 reporting periods, particularly related to our mutual fund and fintech investments.
Current report
The increase in other noninterest income was largely driven by a positive change in collateral charges related to derivative positions.
Current report
Noninterest Expense
Current report
Table 6 - Noninterest Expense
Current report
Communications and equipment expense for the second quarter and first half of 2025 compared to the same periods of 2024 increased primarily due to new software contracts and incremental software contract costs on existing contracts, including volume based increases.
Current report
The increase in outside services - electronic banking reflects both volume-based cost increases and enhancements to our digital banking solutions.
Current report
The decrease in amortization of intangibles was primarily driven by the natural decline in amortization expense of our core deposit intangibles over time. This decrease was partially offset by ANB core deposit intangible amortization expense starting in May 2025.
Current report
The increase in merger-related and other charges for the second quarter and first half of 2025 was primarily driven by ANB merger-related costs.
Current report
Other noninterest expense for the three and six months ended 2025 was down compared to the same periods of last year as 2024 included a goodwill write-down of $5.10 million related to the sale of FinTrust.
Current report
Goodwill and Other Intangible Assets
Current report
As of June 30, 2025 and December 31, 2024, goodwill and other intangibles totaled $974 million and $957 million, respectively. In connection with the acquisition of ANB in the second quarter of 2025, we recorded goodwill and a core deposit intangible of $18.0 million and $6.29 million, respectively. See Notes 3 and 7 to the financial statements for further information.
Removed paragraphs (13)
Previous report
Net interest revenue increased to $212 million for the first quarter of 2025, compared to $199 million for the first quarter of 2024. The increase was mostly driven by a $14.9 million decrease in deposit interest expense as the average rate paid on interest-bearing deposits decreased 42 basis points. The net interest margin increased to 3.36% for the three months ended March 31, 2025 from 3.20% for the same period in 2024, primarily due to the steeper decrease in interest rates paid on deposits compared to the decrease in interest rates earned on loans.
Previous report
We recorded a provision for credit losses of $15.4 million and $12.9 million for the first quarters of 2025 and 2024, respectively. The higher provision expense for the first quarter of 2025 reflects a less favorable economic forecast and net loan growth, partially offset by lower net charge-offs and a partial release of the 2024 reserve related to Hurricane Helene.
Previous report
For the first quarter of 2025, noninterest expenses of $141 million decreased by $3.90 million compared to the same period of 2024. The decrease was largely driven by a decrease in FDIC assessment and other regulatory charges of $2.92 million as the first quarter of 2024 included $2.50 million in expense related to the FDIC special assessment.
Previous report
The following discussion provides additional details on the daily average balances and net interest revenue for the periods presented. The table that follows indicates the relationship between interest revenue and expense and the daily average amounts of assets and liabilities, which provides further insight into net interest spread and net interest margin for the periods indicated.
Previous report
Net interest revenue for the first quarters of 2025 and 2024 was $212 million and $199 million, respectively. FTE net interest revenue for the first quarter of 2025 was $213 million, representing an increase of $12.8 million, or 6%, from the same period in 2024. The net interest spread for the first quarters of 2025 and 2024 was 2.46% and 2.16%, respectively. The net interest margin for the first quarters of 2025 and 2024 was 3.36% and 3.20%, respectively.
Previous report
The interest rate environment changes over the past year included 100 basis points of federal funds rate cuts, which resulted in decreases in both earning-asset yields and funding costs. As a result, FTE net interest revenue for the first quarter of 2025 increased compared to the same period of 2024 as the decrease in deposit interest expense of $14.9 million more than offset the $10.0 million decrease in loan interest revenue. In addition, interest revenue from taxable securities increased $12.5 million due to both a higher average balance and an increase in the average rate earned as we have continued to reinvest in higher-yielding securities. We also experienced a decrease in interest revenue from federal funds sold and other interest-earning assets due to lower interest rates. The increase in net interest margin and net interest spread was primarily driven by a steeper decrease in average rates paid on deposits compared to the decrease in rates earned on loans.
Previous report
Customer derivative fee income was up mostly due to stronger loan growth and increased demand for customer derivatives, attributable to the decrease in rates since the first quarter of 2024.
Previous report
We recorded a provision for credit losses of $15.4 million for the three months ended March 31, 2025, compared to $12.9 million for the same period of 2024. The increase in provision was mostly driven by a less favorable economic forecast and net loan growth.
Previous report
Noninterest Expenses
Previous report
Table 5 - Noninterest Expenses
Previous report
Salaries and employee benefits for the first quarter of 2025 benefited from the reduction in employees resulting from the sale of FinTrust in the fourth quarter of 2024 and the staff reduction following the manufactured housing loan sale in the third quarter of 2024.
Previous report
Communications and equipment expense increased primarily due to incremental software contract costs. We also recorded increased depreciation related to equipment placed into service since March 31, 2024, which included technology equipment for our new Greenville headquarters building and new signage associated with our rebranding.
Previous report
Merger-related and other charges for the first quarter of 2025 decreased compared to the same period in 2024 primarily due to a decrease in costs associated with our rebranding.
Reworded paragraphs (25)
Previous wording
The following is a discussion of our financial condition at March 31, 2025 and December 31, 2024 and our results of operations for the three months ended March 31, 2025 and 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. The following discussion and analysis should be read along with our consolidated financial statements and related notes included in Part I - Item 1 of this Report, “Cautionary Note Regarding Forward-Looking Statements” and the risk factors discussed in our 2024 10-K and the other reports we have filed with the SEC after we filed the 2024 10-K.
Current wording
The following is a discussion of our financial condition at June 30, 2025 and December 31, 2024 and our results of operations for the three and six months ended June 30, 2025 and 2024. The purpose of this discussion is to focus on information about our financial condition and results of operations which is not otherwise apparent from our consolidated financial statements and is intended to provide insight into our results of operations and financial condition. The following discussion and analysis should be read along with our consolidated financial statements and related notes included in Part I - Item 1 of this Report, “Cautionary Note Regarding Forward-Looking Statements” and the risk factors discussed in our 2024 10-K and the other reports we have filed with the SEC after we filed the 2024 10-K.
Previous wording
We offer a wide array of commercial and consumer banking services and investment advisory solutions through a 200 branch network throughout Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. Our equipment finance and SBA/USDA lending businesses operate throughout the United States. At March 31, 2025, we had consolidated total assets of $27.9 billion and 2,982 full-time equivalent employees.
Current wording
We offer a wide array of commercial and consumer banking services and investment advisory solutions through a network of 200 banking offices in Georgia, South Carolina, North Carolina, Tennessee, Florida and Alabama. Our equipment finance and SBA/USDA lending businesses operate throughout the United States. At June 30, 2025, we had consolidated total assets of $28.1 billion and 3,050 full-time equivalent employees.
Previous wording
We reported net income and diluted earnings per common share of $71.4 million and $0.58, respectively, for the first quarter of 2025. This compared to net income and diluted earnings per common share of $62.6 million and $0.51, respectively, for the same period in 2024. We reported total revenue for the first quarters of 2025 and 2024 of $248 million and $239 million, respectively.
Current wording
We reported net income and diluted earnings per common share of $78.7 million and $0.63, respectively, for the second quarter of 2025, compared to $66.6 million and $0.54, respectively, for the same period in 2024. For the six months ended June 30, 2025 and 2024, we reported net income of $150 million and $129 million, respectively, and diluted earnings per common share of $1.21 and $1.05, respectively.
Previous wording
Noninterest income of $35.7 million for the first quarter of 2025 was down $3.93 million, or 10%, from the first quarter of 2024, primarily driven by a $1.39 million decrease in mortgage loan gains and related fees and a $1.85 million decrease in wealth management fees. The decrease in mortgage loan gains and related fees was primarily due to a less favorable fair value adjustment on our mortgage servicing asset. The decrease in wealth management fees reflects the decrease in assets under management following the sale of FinTrust in the fourth quarter of 2024.
Current wording
Noninterest income of $34.7 million and $70.4 million for the second quarter and first half of 2025 decreased by $1.85 million and $5.78 million, respectively, compared to the same periods of 2024. The decrease was mostly driven by negative fair value adjustments to our mortgage servicing asset and a decrease in wealth management fees. The decrease in wealth management fees is reflective of the decrease in assets under management following the sale of FinTrust in the fourth quarter of 2024.
Previous wording
Results for the first quarter of 2025 are discussed in further detail throughout the following sections of MD&A.
Current wording
Results for the second quarter and first six months of 2025 are discussed in further detail throughout the following sections of MD&A.
Previous wording
(1)Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $991,000 and $1.06 million, respectively, for the three months ended March 31, 2025 and 2024. The tax rate used to calculate the adjustment was 26%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
Current wording
(1)Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $983,000 and $1.06 million, respectively, for the three months ended June 30, 2025 and 2024. The tax rate used to calculate the adjustment was 25%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
Previous wording
(3)Unrealized losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $269 million in 2025 and $322 million in 2024 are included in other assets for purposes of this presentation.
Current wording
(3)Unrealized losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $240 million in 2025 and $344 million in 2024 are included in other assets for purposes of this presentation.
Previous wording
The decrease in mortgage loan gains and related fees for the three months ended March 31, 2025 compared to the same period of 2024 was primarily a result of a $1.58 million less favorable fair value adjustment to our mortgage servicing asset partially offset by higher gains on mortgage sales and rate lock volume. The following table provides additional mortgage metrics for the periods indicated.
Current wording
The decrease in mortgage loan gains and related fees for the three and six months ended June 30, 2025 compared to the same periods of 2024 was primarily a result of negative fair value adjustments to our mortgage servicing asset which were less favorable by $1.40 million and $2.98 million, respectively, compared to the fair value adjustments for the comparable periods of 2024. This decrease was partially offset by higher gains on mortgage sales and rate lock volume. The following table provides additional mortgage metrics for the periods indicated.
Previous wording
The decrease in wealth management fees reflects the decrease in assets under management and advisement as a result of the FinTrust sale during the fourth quarter of 2024. Assets under management and advisement totaled $3.18 billion and $5.39 billion at March 31, 2025 and 2024, respectively.
Current wording
The decrease in wealth management fees reflects the decrease in assets under management and advisement as a result of the FinTrust sale in the fourth quarter of 2024. Assets under management and advisement totaled $3.29 billion and $5.30 billion at June 30, 2025 and 2024, respectively.
Previous wording
These increases were partially offset by a decrease in net charge-offs and a release of a portion of the Hurricane Helene additional allowance established in 2024. Additional discussion on credit quality and the ACL is included in the “Asset Quality and Risk Elements” section of MD&A in this Report.
Current wording
We recorded a provision for credit losses of $11.8 million and $27.2 million for the three and six months ended June 30, 2025, compared to $12.2 million and $25.1 million for the same periods of 2024. For the three and six months ended June 30, 2025, the provision for credit losses included the initial provision for ANB’s non-PCD loans and unfunded commitments of $2.49 million. Additional discussion on credit quality and the ACL is included in the “Asset Quality and Risk Elements” section of MD&A in this Report.
Previous wording
The following table presents the components of noninterest expenses for the periods indicated.
Current wording
The following table presents the components of noninterest expense for the periods indicated.
Previous wording
The decrease in FDIC assessments and other regulatory charges in the first quarter of 2025 compared to the same period of 2024 reflects a $2.50 million FDIC special assessment accrued in the first quarter of 2024.
Current wording
FDIC assessments and other regulatory charges decreased for the first six months of 2025 as the comparative period of 2024 included $1.74 million of FDIC special assessment accrued expense.
Previous wording
Total assets at March 31, 2025 and December 31, 2024 were $27.9 billion and $27.7 billion, respectively. Total liabilities at March 31, 2025 and December 31, 2024 were $24.4 billion and $24.3 billion, respectively. Shareholders’ equity totaled $3.50 billion and $3.43 billion at March 31, 2025 and December 31, 2024, respectively.
Current wording
Total assets at June 30, 2025 and December 31, 2024 were $28.1 billion and $27.7 billion, respectively. Total liabilities at June 30, 2025 and December 31, 2024 were $24.5 billion and $24.3 billion, respectively. Shareholders’ equity totaled $3.61 billion and $3.43 billion at June 30, 2025 and December 31, 2024, respectively.
Previous wording
(1)Loans presented excludes fair value hedge basis adjustments.
Current wording
(1)Loans presented exclude fair value hedge basis adjustments.
Previous wording
The following table provides a disaggregation of our income producing CRE portfolio as of March 31, 2025 and December 31, 2024. Office is the largest subcategory within the income producing CRE portfolio. At March 31, 2025, the average loan within the office category was $1.45 million and the largest loan was $16.4 million.
Current wording
The following table provides a disaggregation of our income producing CRE portfolio as of June 30, 2025 and December 31, 2024.
Previous wording
The total ACL for loans at March 31, 2025 increased by $4.98 million, or 2%, compared to December 31, 2024 and the ACL for loans as a percentage of total loans increased slightly to 1.15% from 1.14%. The increase in the ACL was primarily attributable to loan growth and a less favorable economic forecast due to uncertainty surrounding the federal administration’s policies. These increases were partially offset by a decrease in the Hurricane Helene related allowance based on our most recent assessment of potential losses from loans impacted by the storm. This reserve totaled $7.17 million and $9.80 million at March 31, 2025 and December 31, 2024, respectively. Our ACL for unfunded commitments increased mostly due to an increase in our construction commitments.
Current wording
The ACL for loans at June 30, 2025 totaled $217 million compared to $207 million at December 31, 2024. The ACL for loans as a percentage of total loans remained flat at 1.14%. The increase in the ACL was primarily attributable to loan growth and the initial allowance established for ANB, partially offset by a reduction in the Hurricane Helene related allowance based on our latest assessment of potential storm related-loan losses. The initial ACL for ANB loans totaled $3.65 million, $1.25 million of which was reclassified from the fair value of PCD loans with no impact to earnings. The Hurricane Helene related reserve totaled $4.42 million and $9.80 million at June 30, 2025 and December 31, 2024, respectively. Our ACL for unfunded commitments, which totaled $11.5 million, increased $1.15 million compared to December 31, 2024 mostly due to an increase in our construction commitments.
Previous wording
The decrease in net charge-offs for the first quarter of 2025 compared to the first quarter of 2024 was primarily driven by lower commercial and industrial, equipment finance and manufactured housing charge-offs. We completed the sale of the substantially all of our manufactured housing portfolio in the third quarter of 2024. For the first quarter of 2025, the average balance and net charge-offs related to the remaining manufactured housing loans are reflected in consumer loans. Equipment finance charge-offs decreased due to lower long-haul trucking related losses.
Current wording
We completed the sale of substantially all of our manufactured housing loan portfolio in the third quarter of 2024. For the second quarter and first six months of 2025, the average balance and net charge-offs related to the remaining manufactured housing loans are reflected in consumer loans. Equipment finance charge-offs for the three months ended June 30, 2025 decreased compared to the same period in 2024 due to lower long-haul trucking related losses.
Previous wording
The table below summarizes NPAs for the periods indicated. NPAs include nonaccrual loans, OREO and repossessed assets. The decrease in NPAs since December 31, 2024 was primarily driven by $24.3 million in payoffs and paydowns of nonaccrual loans. Notably, we had one $7.85 million senior care loan payoff (included in income producing CRE) and significant paydowns and payoffs for two commercial and industrial relationships of $5.85 million.
Current wording
The table below summarizes NPAs for the periods indicated. NPAs include nonaccrual loans, OREO and repossessed assets. The decrease in NPAs since December 31, 2024 was primarily driven by $49.6 million in payoffs and paydowns of nonaccrual loans. Notably, we had two payoffs of senior care loans (included in income producing CRE) totaling $14.6 million and significant paydowns and payoffs for three larger relationships totaling $17.8 million included in commercial and industrial and owner occupied CRE loans.
Previous wording
At March 31, 2025, HTM debt securities had a fair value of $1.95 billion, indicating net unrealized losses of $386 million. Additional unrealized losses on HTM debt securities of $57.5 million (pre-tax) were included in AOCI as a result of the transfer of AFS debt securities to HTM in 2022. Unrealized losses were primarily attributable to changes in interest rates.
Current wording
At June 30, 2025, HTM debt securities had a fair value of $1.94 billion, indicating net unrealized losses of $371 million (pre-tax). Additional unrealized losses on HTM debt securities of $55.5 million (pre-tax) were included in AOCI as a result of the transfer of AFS debt securities to HTM in 2022. Unrealized losses were primarily attributable to changes in interest rates.
Previous wording
Customer deposits are the primary source of funds for the continued growth of our earning assets. We believe our high level of service, as evidenced by our strong customer satisfaction scores, is instrumental in attracting and retaining customer deposit accounts. Since December 31, 2024, customer deposits increased $309 million, mostly driven by an increase in money market deposit balances. As of March 31, 2025, we had approximately $9.78 billion of uninsured deposits, of which $3.04 billion was collateralized by investment securities.
Current wording
Customer deposits are the primary source of funds for the continued growth of our earning assets. We believe our high level of service, as evidenced by our strong customer satisfaction scores, is instrumental in attracting and retaining customer deposit accounts, which has continued to contribute to our organic deposit growth. Since December 31, 2024, customer deposits increased $514 million, which includes deposits of $374 million acquired in the ANB transaction as of the acquisition date. As of June 30, 2025, we had approximately $9.64 billion of uninsured deposits, of which $2.81 billion was collateralized by investment securities.
Previous wording
At March 31, 2025 and December 31, 2024, we had long-term debt outstanding of $254 million, which includes senior debentures, subordinated debentures, and trust preferred securities. At March 31, 2025 there were no short-term borrowings outstanding. At December 31, 2024 there were $195 million in short-term borrowings outstanding. The need to utilize wholesale funding sources has decreased as our deposit and cash balances have substantially provided for our liquidity needs.
Current wording
At June 30, 2025 and December 31, 2024, we had long-term debt outstanding of $155 million and $254 million, respectively, which includes senior debentures, subordinated debentures, and trust preferred securities. During the second quarter of 2025, we redeemed our $100 million 2030 senior debentures. At June 30, 2025 there were no short-term borrowings outstanding. At December 31, 2024, there were $195 million in short-term borrowings outstanding. The need to utilize wholesale funding sources has decreased because our liquidity needs have been met by our deposit and cash balances.
Previous wording
Management uses an asset/liability simulation model to measure the potential change in net interest revenue over time using multiple interest rate scenarios. Our modeling is based on the 12-month impact on net interest revenue simulations with various interest rate shocks and ramps, which are compared to a base scenario that assumes rates remain flat. In the shock scenarios, rates immediately change the full amount at the scenario onset. In the ramp scenarios, rates change by 25 basis points per month until they reach the predetermined levels.
Current wording
Management uses an asset/liability simulation model to measure the potential change in net interest revenue over time using multiple interest rate scenarios. Our modeling is based on the 12-month impact on net interest revenue simulations with various interest rate shocks and ramps, which are compared to a base scenario that assumes rates remain unchanged. In the shock scenarios, rates immediately change the full amount at the scenario onset. In the ramp scenarios, rates change by 25 basis points per month until they reach the predetermined levels.
Previous wording
The following table presents our interest sensitivity position at the dates indicated. The scenario results presented assume parallel movements in the yield curve, which may differ from actual future curve behavior. Other than an assumption for the runoff of estimated surge deposits, our model generally assumes no change in deposit portfolio size or composition.
Current wording
The following table presents our interest sensitivity position at the dates indicated. The scenario results presented assume parallel movements in the yield curve, which may differ from actual future curve behavior. Other than an assumption for the runoff of estimated surge deposits, which is assumed to be replaced with higher cost wholesale funding, this presentation generally assumes no change in deposit portfolio size or composition.
Previous wording
In addition, because the Holding Company is a separate entity and apart from the Bank, it must provide for its own liquidity. The Holding Company is responsible for the payment of dividends declared for its common and preferred shareholders, and interest and principal on any outstanding debt or trust preferred securities. The Holding Company currently has sufficient liquid assets to meet these obligations. Holding Company liquidity is maintained at a level of at least 15 months of forecasted cash obligations.
Current wording
In addition, because the Holding Company is a separate entity and apart from the Bank, it must provide for its own liquidity. The Holding Company is responsible for the payment of dividends declared for its common and preferred shareholders, and interest and principal on any outstanding debt or trust preferred securities. The Holding Company currently has sufficient liquid assets to meet these obligations. Holding Company liquidity is maintained at a level of at least 125% of the next 12 months of forecasted cash obligations.
Previous wording
Shareholders’ equity at March 31, 2025 was $3.50 billion, an increase of $68.8 million from December 31, 2024 primarily due to year-to-date earnings and other comprehensive income, partially offset by dividends declared on common and preferred stock.
Current wording
Shareholders’ equity at June 30, 2025 was $3.61 billion, an increase of $181 million from December 31, 2024 primarily due to year-to-date earnings, other comprehensive income and the issuance of stock for the ANB acquisition, partially offset by dividends declared on common and preferred stock.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Table 3 - Average Consolidated Balance Sheets and Net Interest Analysis
Current report — wording carried from elsewhere
(1)Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.97 million and $2.12 million, respectively, for the six months ended June 30, 2025 and 2024. The tax rate used to calculate the adjustment was 25%, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
Current report — wording carried from elsewhere
(2)Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
Current report — wording carried from elsewhere
(3)Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $254 million and $333 million in 2025 and 2024, respectively, are included in other assets for purposes of this presentation.
Current report — wording carried from elsewhere
(4)Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.
Current report — wording carried from elsewhere
(1) In 2025, manufactured housing loans were included in consumer loans.