
	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance For Credit Losses		Estimated Fair 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 $22,269 and $15,353 at September 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 September 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
September 30, 2022
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	519,227	$	19,556	$	151	$	3	$	519,378	$	19,559
State and political subdivisions		626,426		104,819		61,881		19,829		688,307		124,648
Residential mortgage-backed securities
Agency		826,491		109,707		386,937		90,114		1,213,428		199,821
Non-agency		67,993		3,564		25,712		5,641		93,705		9,205
Commercial mortgage-backed securities
Agency		461,338		36,176		124,012		31,419		585,350		67,595
Asset-backed securities		567,394		16,711		363,190		14,647		930,584		31,358
Single issue trust preferred securities		2,936		147		13,163		1,083		16,099		1,230
Other corporate securities		376,976		26,130		119,164		14,983		496,140		41,113

Total	$	3,448,781	$	316,810	$	1,094,210	$	177,719	$	4,542,991	$	494,529


	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 September 30					Nine Months Ended September 30
	2022		2021			2022		2021
Proceeds from maturities, sales and calls	$	145,482	$	167,520		$	448,024	$	568,513
Gross realized gains		2		125			2		1,667
Gross realized losses		0		(17	)		0		(115	)

At September 30, 2022, gross unrealized losses on available for sale securities were $494,529 on 1,468 securities of a total portfolio of 1,526 available for sale securities. Securities with the most significant gross unrealized losses at September 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 September 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 $827,078 at September 30, 2022. As of September 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 September 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 September 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 $2,071,977 at September 30, 2022. Of the $2,071,977 amount, $656,637 was related to agency commercial mortgage-backed securities and $1,415,340 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 September 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 $122,069 at September 30, 2022. Of the $122,069, 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 September 30, 2022.

Asset-backed securities

As of September 30, 2022, United’s asset-backed securities portfolio had a total amortized cost balance of $961,942. 100% of the portfolio was investment grade rated as of September 30, 2022. Approximately 28% 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 72% of the portfolio relates to collateralized loan obligation securities that are all AAA rated. Upon reviewing this portfolio for the third 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 September 30, 2022 consisted of $8,464 in investment grade bonds, $3,083 in split rated bonds, and $5,782 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 third quarter of 2022, it was determined that none of the single issue trust preferred securities had credit losses.

Other corporate securities

As of September 30, 2022, United’s other corporate securities portfolio had a total amortized cost balance of $592,127. The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions. Of the $592,127 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 September 30, 2022.

The amortized cost and estimated fair value of securities available for sale at September 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.


	September 30, 2022				December 31, 2021
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	408,713	$	403,924	$	126,032	$	126,564
Due after one year through five years		855,482		817,121		661,627		670,298
Due after five years through ten years		1,011,502		882,921		940,031		941,640
Due after ten years		2,866,751		2,544,121		2,303,804		2,304,197

Total	$	5,142,448	$	4,648,087	$	4,031,494	$	4,042,699

Equity securities at fair value

Equity securities consist primarily of mutual funds. The fair value of United’s equity securities was $7,314 at September 30, 2022 and $12,404 at December 31, 2021.


	Three Months Ended September 30						Nine Months Ended September 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		19			2			44			53
Unrealized losses recognized during the period on equity securities still held at period end		(226	)		(27	)		(684	)		(132	)

Net (losses) gains recognized during the period	$	(207	)	$	(25	)	$	(640	)	$	709

Other investment securities

During the third quarter of 2022, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the third 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 third quarter. There were no other events or changes in circumstances during the third 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 $1,722,762 and $1,871,328 at September 30, 2022 and December 31, 2021, respectively.