INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2012

Summary of amortized cost and fair values of available for sale securities


	June 30, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cumulative OTTI in AOCI⁽¹⁾
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	283,858	$	630	$	1	$	284,487	$	0
State and political subdivisions		85,093		3,919		0		89,012		0
Residential mortgage-backed securities
Agency		126,274		6,099		85		132,288		0
Non-agency		30,814		543		5,491		25,866		2,080
Asset-backed securities		13,904		0		43		13,861		0
Trust preferred collateralized debt obligations		99,641		0		59,412		40,229		47,588
Single issue trust preferred securities		15,264		354		3,458		12,160		0
Other corporate securities		4,995		187		0		5,182		0
Marketable equity securities		4,199		96		236		4,059		0

Total	$	664,042	$	11,828	$	68,726	$	607,144	$	49,668


	December 31, 2011
			Gross		Gross		Estimated		Cumulative
	Amortized		Unrealized		Unrealized		Fair		OTTI in
	Cost		Gains		Losses		Value		AOCI ⁽¹⁾
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	303,484	$	75	$	12	$	303,547	$	0
State and political subdivisions		94,794		4,092		38		98,848		0
Residential mortgage-backed securities
Agency		185,543		8,036		175		193,404		0
Non-agency		39,526		607		2,592		37,541		2,234
Trust preferred collateralized debt obligations		104,161		0		61,792		42,369		47,167
Single issue trust preferred securities		15,242		304		3,786		11,760		0
Other corporate securities		4,994		96		0		5,090		0
Marketable equity securities		4,341		80		462		3,959		0

Total	$	752,085	$	13,290	$	68,857	$	696,518	$	49,401

(1)	Other-than-temporary impairment in accumulated other comprehensive income. Amounts are before-tax.

Summary of securities available for sale in an unrealized loss position

The following is a summary of securities available-for-sale which were in an unrealized loss position at June 30, 2012 and December 31, 2011.


	Less than 12 months				12 months or longer
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
June 30, 2012
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	13,615	$	1	$	0	$	0
State and political subdivisions		0		0		0		0
Residential mortgage-backed securities
Agency		8,440		38		6,289		47
Non-agency		0		0		10,805		5,491
Asset-backed securities		13,861		43		0		0
Trust preferred collateralized debt obligations		0		0		40,229		59,412
Single issue trust preferred securities		0		0		7,714		3,458
Marketable equity securities		578		101		1,069		135

Total	$	36,494	$	183	$	66,106	$	68,543


	Less than 12 months				12 months or longer
	Market		Unrealized		Market		Unrealized
	Value		Losses		Value		Losses
December 31, 2011
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	196,988	$	12	$	0	$	0
State and political subdivisions		3,760		25		968		13
Residential mortgage-backed securities
Agency		14,789		175		0		0
Non-agency		0		0		12,369		2,592
Trust preferred collateralized debt obligations		0		0		42,369		61,792
Single issue trust preferred securities		412		88		6,956		3,698
Marketable equity securities		2,009		433		133		29

Total	$	217,958	$	733	$	62,795	$	68,124

Summary of gains or losses on sales and calls of available for sale securities by the specific identification method


	Three Months Ended June 30				Six Months Ended June 30
	2012		2011		2012		2011
Proceeds from sales and calls	$	603,516	$	489,483	$	996,150	$	710,996
Gross realized gains		57		629		83		1,222
Gross realized losses		9		0		117		21

Summary of unrealized loss positions of available for sale TRUP CDOs and Single Issue Trust Preferred Securities

The following is a summary of the available for sale TRUP CDOs in an unrealized loss position twelve months or greater as of June 30, 2012:


							Amortized Cost
Class	Amortized Cost		Fair Value		Unrealized Loss		Investment Grade		Split Rated		Below Investment Grade
Senior – Bank	$	9,872	$	4,940	$	4,932	$	0	$	5,000	$	4,872
Senior – Insurance		9,267		6,957		2,310		9,267		0		0
Mezzanine – Bank (now in senior position)		13,026		6,179		6,847		0		0		13,026
Mezzanine – Bank		55,625		17,819		37,806		0		0		55,625
Mezzanine – Insurance		6,500		3,090		3,410		0		0		6,500
Mezzanine – Bank & Insurance (combination)		5,351		1,244		4,107		0		0		5,351

Totals	$	99,641	$	40,229	$	59,412	$	9,267	$	5,000	$	85,374

Assumptions utilized in other than temporary impairment analysis of TRUP CDO's

The following schedule reflects data and certain assumptions that are utilized in the other-than-temporary impairment analysis of the TRUP CDO’s at June 30, 2012.


Class	Amortized Cost		% of issuers currently performing (1)			% of original collateral defaulted (2)			% of original collateral deferring (3)			Projected Prepayment Rate (4)			Lifetime additional projected loss from performing collateral (5)			Credit Related OTTI (6)
Senior – Bank	$	9,872		80.5 - 85.6	%		12.9 - 13.3	%		6.3 - 13.8	%		0.5 - 1.0	%		5.7 - 6.2	%	$	967
Senior – Insurance		9,267		82.8 - 94.9	%		0.0 - 0.0	%		3.5 - 9.3	%		1.0 - 1.0	%		6.3 - 6.3	%		0
Mezzanine – Bank (now in senior position)		13,026		80.3 - 80.6	%		3.6 - 9.1	%		1.9 - 2.7	%		0.5 - 1.0	%		7.5 - 8.7	%		5,790
Mezzanine – Bank		55,625		57.5 - 88.1	%		7.5 - 20.6	%		6.2 - 30.5	%		0.3 - 1.0	%		6.7 - 10.3	%		23,408
Mezzanine – Insurance		6,500		82.8 - 87.3	%		0.0 - 0.0	%		8.1 - 9.3	%		0.0 - 1.0	%		6.3 - 7.4	%		0
Mezzanine – Bank & Ins.		5,351		61.0 - 76.2	%		13.4 - 18.8	%		16.7 - 31.7	%		0.3 - 0.8	%		6.6 - 7.6	%		2,744

(1)	Represents performing collateral as a percent of non-defaulted, current collateral outstanding. In the “Mezzanine – Bank” line, the percentage of issuers currently performing ranges from 57.5% to 88.1%. The weighted average percentage of performing collateral is 74.9%.

(2)	Defaulted collateral is identified as defaulted when the issuer has been closed by a regulator. All defaults are assumed to have a zero percent recovery in the OTTI cash flow model.

(3)	Deferring collateral is identified when the Company becomes aware that an issuer has announced or elected to defer interest payments on its trust preferred debt. The Company utilizes issuer specific loss assumptions on deferring collateral that range from 100% cure to 100% loss.

(4)	Management utilizes an annual prepayment rate in its assumptions to calculate OTTI. The prepayment rate is pool specific and is assigned based upon management’s estimate of potential prepayments over the life of the security.

(5)

Management applied an annual constant default rate to the performing collateral balance for each pool ranging from 0.38% to 1.20%. The calculation in the chart above represents the sum of the incremental projected losses over the remaining life of the security as a percentage of the performing collateral.

(6)	Credit related OTTI represents the cumulative credit-related other-than-temporary impairment recognized over the life of the security.

Roll Forward of credit losses on securities

Below is a progression of the credit losses on securities which United has recorded other-than-temporary charges through earnings and other comprehensive income.


Balance of cumulative credit losses at December 31, 2011	$	55,738
Additions for credit losses on securities for which OTTI was not previously recognized		85
Additions for additional credit losses on securities for which OTTI was previously recognized		3,034

Balance of cumulative credit losses at June 30, 2012	$	58,857

Summary of maturities of securities available for sale by amortized cost and estimated fair value


	June 30, 2012				December 31, 2011
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	140,929	$	141,061	$	259,162	$	259,267
Due after one year through five years		211,167		214,286		128,279		130,898
Due after five years through ten years		92,215		96,647		91,031		96,345
Due after ten years		215,532		151,091		269,272		206,049
Marketable equity securities		4,199		4,059		4,341		3,959

Total	$	664,042	$	607,144	$	752,085	$	696,518

Summary of maturities of debt securities held to maturity by amortized cost and estimated fair value


	June 30, 2012				December 31, 2011
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	140,929	$	141,061	$	259,162	$	259,267
Due after one year through five years		211,167		214,286		128,279		130,898
Due after five years through ten years		92,215		96,647		91,031		96,345
Due after ten years		215,532		151,091		269,272		206,049
Marketable equity securities		4,199		4,059		4,341		3,959

Total	$	664,042	$	607,144	$	752,085	$	696,518

Summary of amortized cost and estimated fair values of securities held to maturity


	June 30, 2012
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	10,991	$	2,697	$	0	$	13,688
State and political subdivisions		11,998		178		0		12,176
Residential mortgage-backed securities
Agency		68		11		0		79
Non-agency		0		0		0		0
Single issue trust preferred securities		26,992		0		4,666		22,326
Other corporate securities		3,225		0		0		3,225

Total	$	53,274	$	2,886	$	4,666	$	51,494


	December 31, 2011
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	11,062	$	2,785	$	0	$	13,847
State and political subdivisions		12,794		207		1		13,000
Residential mortgage-backed securities
Agency		77		12		0		89
Non-agency		0		0		0		0
Single issue trust preferred securities		32,116		0		6,111		26,005
Other corporate securities		3,240		0		0		3,240

Total	$	59,289	$	3,004	$	6,112	$	56,181

Summary of gross realized gains and losses on calls and a sales of held to maturity securities included in earnings


	Three Months Ended June 30				Six Months Ended June 30
	2012		2011		2012		2011
Gross realized gains		151		1		151		1
Gross realized losses		0		0		0		0