Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Financial Assets and Liabilities Measured at Fair Value


			Fair Value at March 31, 2023 Using
Description	Balance as of March 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Available for sale debt securities:
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	531,170	$	0	$	531,170	$	0
State and political subdivisions		721,974		0		721,974		0
Residential mortgage-backed securities
Agency		1,165,655		0		1,165,655		0
Non-agency		110,751		0		110,751		0
Commercial mortgage-backed securities
Agency		537,010		0		537,010		0
Asset-backed securities		897,127		0		897,127		0


			Fair Value at March 31, 2023 Using
Description	Balance as of March 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Single issue trust preferred securities		15,838		0		15,838		0
Other corporate securities		439,888		5,326		434,562		0

Total available for sale securities		4,419,413		5,326		4,414,087		0
Equity securities:
Financial services industry		202		202		0		0
Equity mutual funds (1)		2,369		2,369		0		0
Other equity securities		5,221		5,221		0		0

Total equity securities		7,792		7,792		0		0
Loans held for sale		68,176		0		7,912		60,264
Derivative financial assets:
Interest rate swap contracts		3,057		0		3,057		0
Forward sales commitments		127		0		96		31
Interest rate lock commitments		2,099		0		589		1,510

Total derivative financial assets		5,283		0		3,742		1,541
Liabilities
Derivative financial liabilities:
TBA mortgage-backed securities		567		0		84		483

Total derivative financial liabilities		567		0		84		483


			Fair Value at December 31, 2022 Using
Description	Balance as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Available for sale debt securities:
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	529,492	$	0	$	529,492	$	0
State and political subdivisions		709,530		0		709,530		0
Residential mortgage-backed securities
Agency		1,174,944		0		1,174,944		0
Non-agency		111,973		0		111,973		0
Commercial mortgage-backed securities
Agency		562,553		0		562,553		0
Asset-backed securities		911,611		0		911,611		0
Single issue trust preferred securities		16,284		0		16,284		0
Other corporate securities		525,538		5,367		520,171		0

Total available for sale securities		4,541,925		5,367		4,536,558		0
Equity securities:
Financial services industry		270		270		0		0
Equity mutual funds (1)		2,221		2,221		0		0
Other equity securities		5,138		5,138		0		0

Total equity securities		7,629		7,629		0		0
Loans held for sale		56,879		0		12,008		44,871
Derivative financial assets:
Interest rate swap contracts		4,038		0		4,038		0
Forward sales commitments		220		0		214		6
TBA mortgage-backed securities		146		0		120		26
Interest rate lock commitments		1,146		0		302		844


			Fair Value at December 31, 2022 Using
Description	Balance as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Total derivative financial assets		5,550		0		4,674		876
Liabilities
Derivative financial liabilities:
TBA mortgage-backed securities		213		0		0		213
Interest rate lock commitments		348		0		0		348

Total derivative financial liabilities		561		0		0		561

Schedule of Additional Information about Financial Assets and Liabilities Measured at Fair Value Utilized Level 3

The following tables present additional information about financial assets and liabilities measured at fair value at March 31, 2023 and December 31, 2022 on a recurring basis and for which United has utilized Level 3 inputs to determine fair value. The amount of total gains or losses for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses related to assets still held at the reporting date are recorded in Income from mortgage banking activities in the Consolidated Statements of Income.


	Loans held for sale
	March 31, 2023			December 31, 2022
Balance, beginning of period	$	44,871		$	464,109
Originations		256,593			2,360,908
Sales		(248,517	)		(2,673,795	)
Transfers to portfolio loans		0			(154,699	)
Total gains during the period recognized in earnings		7,317			48,348

Balance, end of period	$	60,264		$	44,871

The amount of total (losses) gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	785		$	(9,852	)


	Derivative Financial Assets TBA Securities
	March 31, 2023			December 31, 2022
Balance, beginning of period	$	26		$	61
Transfers other		(26	)		(35	)

Balance, end of period	$	0		$	26

The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	0		$	26


	Derivative Financial Assets Forward Sales Commitments
	March 31, 2023		December 31, 2022
Balance, beginning of period	$	6	$	0
Transfers other		25		6

Balance, end of period	$	31	$	6

The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	31	$	6


	Derivative Financial Assets Interest Rate Lock Commitments
	March 31, 2023		December 31, 2022
Balance, beginning of period	$	844	$	9,444
Transfers other		666		(8,600	)

Balance, end of period	$	1,510	$	844

The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	1,510	$	844

	Derivative Financial Liabilities Forward Sales Commitments
	March 31, 2023		December 31, 2022
Balance, beginning of period	$	0	$	36
Transfers other		0		(36	)

Balance, end of period	$	0	$	0

The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	0	$	0


	Derivative Financial Liabilities TBA Securities
	March 31, 2023		December 31, 2022
Balance, beginning of period	$	213	$	470
Transfers other		270		(257	)

Balance, end of period	$	483	$	213

The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	483	$	213


	Derivative Financial Liabilities Interest Rate Lock Commitments
	March 31, 2023			December 31, 2022
Balance, beginning of period	$	348		$	25
Transfers other		(348	)		323

Balance, end of period	$	0		$	348

The amount of total gains for the period included in earnings (or changes in net assets) attributable to the change in unrealized gains or losses relating to assets still held at reporting date	$	0		$	348

Schedule of Changes in Fair Value Included in Earnings of Financial Instruments for which Fair Value Option has been Elected

The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected:


Description	Three Months Ended March 31, 2023		Three Months Ended March 31, 2022
Income from mortgage banking activities	$	788	$	(11,882	)

Summary of Difference Between Aggregate Fair Value and Remaining Contractual Principal Outstanding for Financial Instruments for which Fair Value Option has been Elected

The following table reflects the difference between the aggregate fair value and the remaining contractual principal outstanding for financial instruments for which the fair value option has been elected:


	March 31, 2023						December 31, 2022
Description	Unpaid Principal Balance		Fair Value		Fair Value Over/(Under) Unpaid Principal Balance		Unpaid Principal Balance		Fair Value		Fair Value Over/(Under) Unpaid Principal Balance
Loans held for sale	$	66,679	$	68,176	$	1,497	$	56,170	$	56,879	$	709

Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes United’s financial assets that were measured at fair value on a nonrecurring basis during the period:


Description	Balance as of March 31, 2023		Fair Value at March 31, 2023						YTD Losses
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
					Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Individually assessed loans	$	6,530	$	0	$	650	$	5,880	$	(59	)
OREO		4,086		0		3,588		498		(580	)


Description	Balance as of December 31, 2022		Fair Value at December 31, 2022						YTD Gains (Losses)
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
					Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Individually assessed loans	$	6,125	$	0	$	1,801	$	4,324	$	327
OREO		2,052		0		2,013		39		(96	)

Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of United’s financial instruments are summarized below:


					Fair Value Measurements
	Carrying Amount		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
March 31, 2023
Cash and cash equivalents	$	1,918,693	$	1,918,693	$	0	$	1,918,693	$	0
Securities available for sale		4,419,413		4,419,413		5,326		4,414,087		0
Securities held to maturity		1,002		1,020		0		0		1,020
Equity securities		7,792		7,792		7,792		0		0
Other securities		349,380		331,911		0		0		331,911
Loans held for sale		68,176		68,176		0		7,912		60,264
Net loans		20,371,668		19,348,610		0		0		19,348,610
Derivative financial assets		5,283		5,283		0		3,742		1,541
Mortgage servicing rights		19,987		39,699		0		0		39,699
Deposits		22,284,586		22,229,264		0		22,229,264		0
Short-term borrowings		170,094		170,094		0		170,094		0
Long-term borrowings		2,788,103		2,750,992		0		2,750,992		0
Derivative financial liabilities		567		567		0		84		483
December 31, 2022
Cash and cash equivalents	$	1,176,652	$	1,176,652	$	0	$	1,176,652	$	0
Securities available for sale		4,541,925		4,541,925		5,367		4,536,558		0
Securities held to maturity		1,002		1,020		0		0		1,020
Equity securities		7,629		7,629		7,629		0		0
Other securities		322,048		305,946		0		0		305,946
Loans held for sale		56,879		56,879		0		12,008		44,871
Net loans		20,323,420		19,030,221		0		0		19,030,221
Derivative financial assets		5,550		5,550		0		4,674		876
Mortgage servicing rights		21,022		41,880		0		0		41,880
Deposits		22,303,186		22,249,061		0		22,249,061		0
Short-term borrowings		160,698		160,698		0		160,698		0
Long-term borrowings		2,197,656		2,161,108		0		2,161,108		0
Derivative financial liabilities		561		561		0		0		561

- Definition

The entire disclosure for a company's election to apply the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) the reasons for electing a fair value option for each eligible item or group of similar eligible items; (b) if the fair value option is elected for some but not all eligible items within a group of similar eligible items: (i) a description of those similar items and the reasons for partial election and (ii) information of how the group of similar items relates to individual balance sheet line items; (c) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected: (i) information of how each line item in the statement of financial position relates to major categories of assets and liabilities presented in accordance with other fair value disclosures and (ii) the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (d) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (e) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (f) for investments that would have been accounted for under the equity method if the entity had not chosen to apply the fair value option, the information required for such investments, if material either individually or in the aggregate; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) a description of how interest and dividends are measured and where they are reported in the income statement; (c) for loans and other receivables held as assets: (i) the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk and (ii) how the gains or losses attributable to changes in instrument-specific credit risk were determined; (d) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk: (i) the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk, (ii) qualitative information about the reasons for those changes, and (iii) how the gains and losses attributable to changes in instrument-specific credit risk were determined; and (3) certain other disclosures as required or determined to be provided.

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