Leases

9 Months Ended

Sep. 30, 2026

7. LEASES

United determines if an arrangement is a lease at inception. United and certain subsidiaries have entered into various noncancelable-operating leases for branch and loan production offices as well as operating facilities. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. Operating leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. United did not have any finance leases as of September 30, 2026 or December 31, 2025.

United’s

operating leases are subject to renewal options under various terms. United’s operating leases have remaining terms of

years, some of which include options to extend leases generally for periods of

years. United rents or subleases certain real estate to third parties. Our sublease portfolio generally consists of operating leases to other organizations for former branch

offices.

ROU assets represent United’s right to use an underlying asset for the lease term and lease liabilities represent United’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of United’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend the lease when it is reasonably certain that United will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term

The components of lease expense were as follows:


			Three Months Ended			Three Months Ended
	Classification		September 30, 2026			September 30, 2025
Operating lease cost		Net occupancy expense	$	5,215		$	5,038
Sublease income		Net occupancy expense		(53	)		(51	)

Net lease cost			$	5,162		$	4,987


			Nine Months Ended			Nine Months Ended
	Classification		September 30, 2026			September 30, 2025
Operating lease cost		Net occupancy expense	$	15,419		$	15,066
Sublease income		Net occupancy expense		(157	)		(152	)

Net lease cost			$	15,262		$	14,914

Supplemental balance sheet information related to leases was as follows:


	Classification	September 30, 2026		December 31, 2025
Operating lease right-of-use assets	Operating lease right-of-use assets	$	99,188	$	89,312
Operating lease liabilities	Operating lease liabilities	$	106,918	$	95,392

Other information related to leases was as follows:


	September 30, 2026
Weighted-average remaining lease term:
Operating leases		7.71 years
Weighted-average discount rate:
Operating leases		3.92	%

Supplemental cash flow information related to leases was as follows:


	Three Months Ended
	September 30, 2026		September 30, 2025
Cash paid for amounts in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,987	$	4,920
ROU assets obtained in the exchange for lease liabilities		10,920		2,783


	Nine Months Ended
	September 30, 2026		September 30, 2025
Cash paid for amounts in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,175	$	14,891
ROU assets obtained in the exchange for lease liabilities		23,007		15,433

Maturities of lease liabilities by year and in the aggregate, under operating leases with initial or remaining terms of one year or more, for years subsequent to December 31, 2025, consists of the following as of September 30, 2026:


Year	Amount
2026	$	4,775
2027		20,028
2028		18,307
2029		16,153
2030		14,183
Thereafter		52,053

Total lease payments		125,499
Less: imputed interest		(18,581	)

Total	$	106,918