
	December 31, 2021
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		For Credit		Fair
	Cost		Gains		Losses		Losses		Value
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	82,136	$	51	$	337	$	0	$	81,850
State and political subdivisions		831,499		19,608		3,809		0		847,298
Residential mortgage-backed securities
Agency		1,120,423		9,173		15,822		0		1,113,774
Non-agency		74,965		306		726		0		74,545
Commercial mortgage-backed securities
Agency		633,802		12,731		6,608		0		639,925
Asset-backed securities		659,830		49		3,307		0		656,572
Single issue trust preferred securities		17,291		146		626		0		16,811
Other corporate securities		611,548		3,558		3,182		0		611,924

Total	$	4,031,494	$	45,622	$	34,417	$	0	$	4,042,699

United excludes 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, United does not currently recognize an allowance for credit loss against accrued interest receivable on

available-for-sale

debt securities. The table above excludes accrued interest receivable of $20,039 and $15,353 at June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021.


	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
June 30, 2022
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	383,535	$	10,005	$	170	$	3	$	383,705	$	10,008
State and political subdivisions		670,707		76,647		40,051		9,138		710,758		85,785
Residential mortgage-backed securities
Agency		1,051,557		93,467		216,233		36,647		1,267,790		130,114
Non-agency		67,293		3,187		17,347		3,065		84,640		6,252
Commercial mortgage-backed securities
Agency		541,440		27,157		92,340		17,740		633,780		44,897
Asset-backed securities		776,828		30,045		134,998		5,693		911,826		35,738
Single issue trust preferred securities		0		0		13,123		1,115		13,123		1,115
Other corporate securities		487,011		26,433		30,839		1,564		517,850		27,997

Total	$	3,978,371	$	266,941	$	545,101	$	74,965	$	4,523,472	$	341,906


	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
December 31, 2021
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	75,106	$	334	$	213	$	3	$	75,319	$	337
State and political subdivisions		223,754		2,872		24,067		937		247,821		3,809
Residential mortgage-backed securities
Agency		680,320		13,167		71,392		2,655		751,712		15,822
Non-agency		55,336		726		0		0		55,336		726
Commercial mortgage-backed securities
Agency		136,071		2,912		70,543		3,696		206,614		6,608
Asset-backed securities		532,373		2,620		82,222		687		614,595		3,307
Single issue trust preferred securities		0		0		13,594		626		13,594		626
Other corporate securities		307,912		3,182		0		0		307,912		3,182

Total	$	2,010,872	$	25,813	$	262,031	$	8,604	$	2,272,903	$	34,417

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.


	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
Proceeds from sales and calls	$	150,915	$	131,464	$	302,542	$	400,993
Gross realized gains		0		0		0		1,542
Gross realized losses		0		0		0		98

At June 30, 2022, gross unrealized losses on available for sale securities were $341,906 on 1,374 securities of a total portfolio of 1,543 available for sale securities. Securities with the most significant gross unrealized losses at June 30, 2022 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities, asset-backed securities and other corporate securities.

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. Management believes the significant amount of gross unrealized losses on available for sale securities at June 30, 2022 was primarily the result of rising interest rates and does not reflect any expected credit losses.

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 $836,622 at June 30, 2022. As of June 30, 2022, approximately 53% 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 June 30, 2022. 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 had credit losses at June 30, 2022.

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 $2,111,407 at June 30, 2022. Of the $2,111,407 amount, $686,470 was related to agency commercial mortgage-backed securities and $1,424,937 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 had credit losses at June 30, 2022.

Non-agency

residential mortgage-backed securities

United’s

non-agency

residential mortgage-backed securities portfolio relates to securities of various private label issuers. The total amortized cost of available for sale

non-agency

residential mortgage-backed securities was $114,692 at June 30, 2022. Of the $114,692, 100% was rated AAA. Based upon management’s analysis and judgment, it was determined that none of the

non-agency

residential mortgage-backed securities had credit losses at June 30, 2022.

Asset-backed securities

As of June 30, 2022, United’s asset-backed securities portfolio had a total amortized cost balance of $953,347. 100% of the portfolio was investment grade rated as of June 30, 2022. Approximately 31% of the portfolio relates to securities that 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. Approximately 69% of the portfolio relates to collateralized loan obligation securities that are all AAA rated. Upon reviewing this portfolio for the second quarter of 2022, it was determined that none of the asset-backed securities had credit losses.

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 June 30, 2022 consisted of $8,461 in investment grade bonds, $3,078 in split rated bonds, and $5,777 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 second quarter of 2022, it was determined that none of the single issue trust preferred securities had credit losses.

Other corporate securities

As of June 30, 2022, United’s other corporate securities portfolio had a total amortized cost balance of $617,171. The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions. Of the $617,171 total amortized cost balance, 96% was investment grade rated, 2% was below investment grade rated, 1% was split rated, and 1% was unrated. For corporate securities, management has evaluated the near-term prospects of the investment in relation to the severity of any unrealized loss. Based upon management’s analysis and judgment, it was determined that none of the corporate securities had credit losses at June 30, 2022.

The amortized cost and estimated fair value of securities available for sale at June 30, 2022 and December 31, 2021 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.


	June 30, 2022				December 31, 2021
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	292,926	$	290,619	$	126,032	$	126,564
Due after one year through five years		965,407		943,395		661,627		670,298
Due after five years through ten years		986,624		901,478		940,031		941,640
Due after ten years		2,908,328		2,677,212		2,303,804		2,304,197

Total	$	5,153,285	$	4,812,704	$	4,031,494	$	4,042,699

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 $13,513 at June 30, 2022 and $12,404 at December 31, 2021.


	Three Months Ended June 30					Six Months Ended June 30
	2022			2021		2022			2021
Net gains recognized during the period on equity securities sold	$	0		$	0	$	0		$	788
Unrealized gains recognized during the period on equity securities still held at period end		6			24		25			51
Unrealized losses recognized during the period on equity securities still held at period end		(188	)		0		(458	)		(105	)

Net (losses) gains recognized during the period	$	(182	)	$	24	$	(433	)	$	734

Other investment securities

During the second quarter of 2022, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the second quarter of 2022 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 second quarter. There were no other events or changes in circumstances during the second 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 $1,636,234 and $1,871,328 at June 30, 2022 and December 31, 2021, respectively.