
	December 31, 2019
			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	$	58,127	$	555	$	6	$	58,676	$	0
State and political subdivisions		272,014		3,644		3,296		272,362		0
Residential mortgage-backed securities
Agency		826,857		10,923		1,246		836,534		0
Non-agency		3,429		404		0		3,833		86
Commercial mortgage-backed securities
Agency		609,461		8,319		2,807		614,973		0
Asset-backed securities		284,390		0		8,251		276,139		0
Trust preferred collateralized debt obligations		6,045		0		1,342		4,703		842
Single issue trust preferred securities		18,196		170		1,592		16,774		0
Other corporate securities		348,405		4,897		0		353,302		0

Total	$	2,426,924	$	28,912	$	18,540	$	2,437,296	$	928

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

United has made a policy election to exclude accrued interest from the amortized cost basis of

available-for-sale

debt securities and report accrued interest separately in “Accrued interest receivable” in the consolidated balance sheets.

Available-for-sale

debt securities are placed on

non-accrual

status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income

when a security is placed on

non-accrual

status.

Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable. The table above excludes accrued interest receivable of $9,550 and $9,890 at March 31, 2020 and December 31, 2019, respectively, that is recorded in “Accrued interest receivable.”

The following is a summary of securities available for sale which were in an unrealized loss position at March 31, 2020 and December 31, 2019.


	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
March 31, 2020
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	0	$	0	$	0	$	0	$	0	$	0
State and political subdivisions		72,140		2,141		384		4		72,524		2,145
Residential mortgage-backed securities
Agency		4,350		69		0		0		4,350		69
Non-agency		0		0		0		0		0		0
Commercial mortgage-backed securities
Agency		33,183		233		9,602		12		42,785		245
Asset-backed securities		16,708		1,112		245,228		20,453		261,936		21,565
Trust preferred collateralized debt obligations		2,434		1,113		1,750		750		4,184		1,863
Single issue trust preferred securities		0		0		12,471		2,686		12,471		2,686
Other corporate securities		204,878		6,133		0		0		204,878		6,133

Total	$	333,693	$	10,801	$	269,435	$	23,905	$	603,128	$	34,706


	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
December 31, 2019
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,415	$	6	$	0	$	0	$	1,415	$	6
State and political subdivisions		144,307		3,291		885		5		145,192		3,296
Residential mortgage-backed securities
Agency		108,072		502		71,736		744		179,808		1,246
Non-agency		0		0		0		0		0		0
Commercial mortgage-backed securities
Agency		173,039		2,676		45,251		131		218,290		2,807
Asset-backed securities		135,174		3,252		140,965		4,999		276,139		8,251
Trust preferred collateralized debt obligations		2,703		842		2,000		500		4,703		1,342
Single issue trust preferred securities		0		0		13,562		1,592		13,562		1,592
Other corporate securities		0		0		0		0		0		0

Total	$	564,710	$	10,569	$	274,399	$	7,971	$	839,109	$	18,540

The following table shows the proceeds from maturities, sales and calls of available for sale securities and the gross realized gains and losses on sales and calls of those securities that have been included in earnings as a result of any sales and calls. Gains or losses on sales and calls of available for sale securities were recognized by the 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


	Three Months Ended March 31
	2020		2019
Proceeds from sales and calls	$	132,926	$	196,331
Gross realized gains		253		15
Gross realized losses		79		364

At March 31, 2020, gross unrealized losses on available for sale securities were $34,706 on 133 securities of a total portfolio of 637 available for sale securities. Securities with the most significant gross unrealized losses at March 31, 2020 consisted primarily of asset-backed securities, corporate securities, and single issue trust preferred securities. The asset-backed securities are backed by Federal Family Education Loan Program (FFELP) student loan collateral which includes a minimum of a 97% government repayment guaranty, as well as additional credit support and subordination in excess of the government guaranteed portion. The corporate securities mainly consist of debt issuances of corporations representing a variety of industries, including financial

institutions. The single issue trust preferred securities relate to securities of financial institutions.

In determining whether or not a security is impaired, management considered the severity of the loss in conjunction with United’s positive intent and the more likely than not ability to hold these securities to recovery of their cost basis or maturity.

State and political subdivisions

United’s state and political subdivisions portfolio relates to securities issued by various municipalities located throughout the United States. The total amortized cost of available for sale state and political subdivision securities was $313,164 at March 31, 2020. As of March 31, 2020, approximately 66% of the portfolio was supported by the general obligation of the issuing municipality, which allows for the securities to be repaid by any means available to the municipality. The majority of the portfolio was rated AA or higher, and no securities within the portfolio were rated below investment grade as of March 31, 2020. In addition to monitoring the credit ratings of these securities, management also evaluates the financial performance of the underlying issuers on an ongoing basis. Based upon management’s analysis and judgment, it was determined that none of the state and political subdivision securities were impaired at March 31, 2020.

Agency mortgage-backed securities

United’s agency mortgage-backed securities portfolio relates to securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae. The total amortized cost of available for sale agency mortgage-backed securities was $1,370,905 at March 31, 2020. Of the $1,370,905 amount, $589,288 was related to agency commercial mortgage-backed securities and $781,617 was related to agency residential mortgage-backed securities. Each of the agency mortgage-backed securities provides a guarantee of full and timely payments of principal and interest by the issuing agency. Based upon management’s analysis and judgment, it was determined that none of the agency mortgage-backed securities were impaired at March 31, 2020.

Single issue trust preferred securities

The majority of United’s single issue trust preferred portfolio consists of obligations from large cap banks (i.e. banks with market capitalization in excess of $10 billion). All single issue trust preferred securities are currently receiving interest payments. The amortized cost of available for sale single issue trust preferred securities as of March 31, 2020 consisted of $11,489 in investment grade bonds, $977 in split rated bonds, and $5,737 in unrated bonds. Management reviews each issuer’s current and projected earnings trends, asset quality, capitalization levels, and other key factors. Upon completing the review for the first quarter of 2020, it was determined that none of the single issue trust preferred securities were impaired.

Trust preferred collateralized debt obligations (Trup Cdos)

The total amortized cost balance of United’s Trup Cdo portfolio was $6,047 as of March 31, 2020. For any securities in an unrealized loss position, the Company first assesses its intentions regarding any sale of securities as well as the likelihood that it would be required to sell prior to recovery of the amortized cost. As of March 31, 2020, the Company has determined that it does not intend to sell any Trup Cdo and that it is not more likely than not that the Company will be required to sell such securities before recovery of their amortized cost.

To determine a net realizable value and assess whether impairment existed, management performed detailed cash flow analysis to determine whether, in management’s judgment, it was more likely that United would not recover the entire amortized cost basis of the security. Based on this review, management does not believe any individual security with an unrealized loss as of March 31, 2020 is impaired.

Corporate securities

As of March 31, 2020, United’s Corporate securities portfolio had a total amortized cost balance of $339,557. The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions. Of the $339,557, 90% was investment grade rated and 10% was unrated. For corporate securities, management has evaluated the near-term prospects of the investment in relation to the severity of any

unre

alized loss

. Based upon management’s analysis and judgment, it was determined that none of the other corporate securities were impaired at March 31, 2020.

The amortized cost and estimated fair value of securities available for sale at March 31, 2020 and December 31, 2019 by contractual maturity are shown as follows. Expected maturities may differ from contractual maturities because the issuers may have the right to call or prepay obligations without penalties.


	March 31, 2020				December 31, 2019
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	122,497	$	123,365	$	92,422	$	92,473
Due after one year through five years		504,918		510,917		583,715		592,850
Due after five years through ten years		563,239		583,625		564,922		568,241
Due after ten years		1,193,567		1,199,614		1,185,865		1,183,732

Total	$	2,384,221	$	2,417,521	$	2,426,924	$	2,437,296

Equity securities at fair value

Equity securities consist mainly of equity securities of financial institutions and mutual funds within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries. The fair value of United’s equity securities was $9,013 at March 31, 2020 and $8,894 at December 31, 2019.


	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Net gains (losses) recognized during the period	$	22		$	189
Net gains (losses) recognized during the period on equity securities sold		6			132
Unrealized gains recognized during the period on equity securities still held at period end		71			58
Unrealized losses recognized during the period on equity securities still held at period end		(55	)		(1	)

Other investment securities

During the first quarter of 2020, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the first quarter of 2020 had a significant adverse effect on the fair value of any of its cost method securities. United determined that there was no individual security that experienced an adverse event during the first quarter. There were no other events or changes in circumstances during the first quarter which would have an adverse effect on the fair value of its cost method securities.

The carrying value of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes as required or permitted by law, approximated $2,098,167 and $1,540,717 at March 31, 2020 and December 31, 2019, respectively.