Investment Securities (Tables)

12 Months Ended

Dec. 31, 2012

Summary Of Amortized Cost And Fair Values Of Available For Sale Securities

The following is a summary of the amortized cost and estimated fair values of securities available for sale.

	December 31, 2012
(In thousands)	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	$	336,747	$	827	$	52	$	337,522	$	0
State and political subdivisions		76,765		3,664		1		80,428		0
Residential mortgage-backed securities
Agency		101,769		4,741		0		106,510		0
Non-agency		24,569		934		458		25,045		458
Asset-backed securities		11,729		0		20		11,709		0
Trust preferred collateralized debt obligations		94,794		5		54,186		40,613		46,522
Single issue trust preferred securities		15,286		312		3,469		12,129		0
Other corporate securities		4,996		287		0		5,283		0
Marketable equity securities		6,660		257		531		6,386		0
Total	$	673,315	$	11,027	$	58,717	$	625,625	$	46,980

	December 31, 2011
(In thousands)	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	$	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 December 31, 2012 and 2011.

	Less than 12 months				12 months or longer
(In thousands)	Fair     Value		Unrealized     Losses		Fair     Value		Unrealized     Losses
December 31, 2012
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	25,170	$	52	$	0	$	0
State and political subdivisions		126		1		0		0
Residential mortgage-backed securities
Agency		0		0		0		0
Non-agency		0		0		10,879		458
Asset-backed securities		7,993		20		0		0
Trust preferred collateralized debt obligations		0		0		40,613		54,186
Single issue trust preferred securities		0		0		7,221		3,469
Marketable equity securities		603		507		313		24
Total	$	33,892	$	580	$	59,026	$	58,137
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 Specific Identification Method

The realized losses relate to sales of securities within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers and its subsidiaries.

	Year Ended
(In thousands)	2012		2011		2010
Proceeds from maturities, sales and calls	$	1,996,547	$	1,486,936	$	1,389,197
Gross realized gains		157		1,729		813
Gross realized losses		141		311		462

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 and single issue trust preferred securities in an unrealized loss position twelve months or greater as of December 31, 2012.

							Amortized Cost
Class	Amortized Cost		Fair Value		Unrealized Loss		Investment Grade		Split Rated		Below Investment Grade
	(In thousands)
Senior – Bank		$      8,485		$  5,593		$   2,892		$        0		$ 5,000		$  3,485
Senior – Insurance		9,142		7,056		2,086		9,142		0		0
Mezzanine – Bank (now in senior position)		11,726		5,820		5,906		0		0		11,726
Mezzanine – Bank		53,728		17,583		36,145		0		0		53,728
Mezzanine – Insurance		6,500		3,355		3,145		0		0		6,500
Mezzanine – Bank & Insurance (combination)		5,218		1,206		4,012		0		0		5,218
Single issue trust preferreds		10,690		7,221		3,469		0		0		10,690
Totals		$  105,489		$ 47,834		$  57,655		$ 9,142		$ 5,000		$ 91,347

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:

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)
	(Dollars in thousands)
Senior – Bank	$	8,485		85.6 - 89.0	%		12.9 - 13.3	%		6.3 - 7.2	%		0.5 - 1.0	%		4.0 - 6.3	%	$	1,219
Senior – Insurance		9,142		92.0 - 92.8	%		0.0 - 0.0	%		4.3 - 4.8	%		1.0 - 1.0	%		6.2 - 6.6	%		0
Mezzanine – Bank (now in senior position)		11,726		80.6 - 95.5	%		3.6 - 9.1	%		0.6 - 2.7	%		0.3 - 1.0	%		7.1 - 7.3	%		6,537
Mezzanine – Bank		53,728		66.2 - 91.5	%		7.5 - 20.6	%		3.3 - 30.2	%		0.3 - 0.8	%		6.4 - 9.5	%		25,224
Mezzanine – Insurance		6,500		84.5 - 92.0	%		0.0 - 0.0	%		4.3 - 8.5	%		0.0 - 1.0	%		6.2 - 7.8	%		0
Mezzanine – Bank & Ins.		5,218		66.4 - 76.2	%		13.4 - 18.8	%		16.7 - 27.2	%		0.3 - 0.8	%		6.3 - 6.7	%		2,934

(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 66.2% to 91.5%. The weighted average percentage of performing collateral is 79.3%.

(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 1.2%. 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. These charges were recorded through earnings and other comprehensive income.

(In thousands)
Balance of cumulative credit losses at December 31, 2011	$	55,738
Additions for credit losses on securities for which OTTI was not previously recognized		275
Additions for additional credit losses on securities for which OTTI was previously recognized		7,101
Balance of cumulative credit losses at December 31, 2012	$	63,114

Summary Of Maturities Of Securities Available For Sale By Amortized Cost And Estimated Fair Value

Maturities of mortgage-backed securities with an amortized cost of $126,338,000 and an estimated fair value of $131,555,000 at December 31, 2012 are included below based upon contractual maturity.

			Estimated
(In thousands)	Amortized		Fair
	Cost		Value
Due in one year or less	$	192,182	$	192,373
Due after one year through five years		208,036		211,045
Due after five years through ten years		89,286		92,947
Due after ten years		177,151		122,874
Marketable equity securities		6,660		6,386
Total	$	673,315	$	625,625

Summary Of Amortized Cost And Estimated Fair Values Of Securities Held To Maturity

The following is a summary of the amortized cost and estimated fair values of securities held to maturity.

	December 31, 2012
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	10,916	$	2,500	$	0	$	13,416
State and political subdivisions		12,515		108		0		12,623
Residential mortgage-backed securities
Agency		61		10		0		71
Non-agency		0		0		0		0
Single issue trust preferred securities		19,750		0		3,390		16,360
Other corporate securities		225		0		0		225
Total	$	43,467	$	2,618	$	3,390	$	42,695

	December 31, 2011
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated     Fair     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 Sales Of Held To Maturity Securities Included In Earnings

The following table shows the gross realized gains and losses on calls and sales of held to maturity securities that have been included in earnings as a result of those calls and sales. Gains or losses on calls and sales of held to maturity securities are recognized by the specific identification method.

	Year Ended
(In thousands)	2012		2011		2010
Gross realized gains		352		1		1,297
Gross realized losses		0		0		39

Summary Of Maturities Of Debt Securities Held To Maturity By Amortized Cost And Estimated Fair Value

Maturities of mortgage-backed securities with an amortized cost of $61,000 and an estimated fair value of $71,000 at December 31, 2012 are included below based upon contractual maturity.

			Estimated
(In thousands)	Amortized		Fair
	Cost		Value
Due in one year or less	$	795	$	799
Due after one year through five years		8,611		9,535
Due after five years through ten years		13,110		14,788
Due after ten years		20,951		17,573
Total	$	43,467	$	42,695

Maturities And Weighted-Average Yields Of Securities

The following table sets forth the maturities of all securities (based on amortized cost) at December 31, 2012, and the weighted-average yields of such securities (calculated on the basis of the cost and the effective yields weighted for the scheduled maturity of each security).

	Within 1 Year				After 1 But Within 5 Years				After 5 But Within 10 Years				After 10 Years
	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(Dollars in thousands)
U.S. Treasury and other U.S. Government agencies and corporations	$	176,355		0.17%	$	134,997		0.99%	$	36,311		1.37%	$	0		0.00%
States and political subdivisions (1)		15,836		3.54%		38,236		4.67%		28,339		6.34%		6,869		6.45%
Residential mortgage-backed securities
Agency		786		4.48%		30,406		4.00%		25,158		4.22%		45,479		3.43%
Non-agency		0		0.00%		0		0.00%		12,587		4.99%		11,982		5.73%
Asset-backed securities		0		0.00%		8,013		0.75%		0		0.00%		3,716		0.46%
Trust preferred collateralized debt obligations		0		0.00%		0		0.00%		0		0.00%		94,794		4.59%
Single issue trust preferred securities		0		0.00%		0		0.00%		0		0.00%		35,036		2.73%
Marketable equity securities		0		0.00%		0		0.00%		0		0.00%		6,660		1.07%
Other Corporate securities		0		0.00%		4,995		2.73%		0		0.00%		225		0.00%

(1) Tax-equivalent adjustments (using a 35% federal rate) have been made in calculating yields on obligations of states and political subdivisions.