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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Financial Assets and Liabilities Measured at Fair Value

The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, segregated by the level of the valuation inputs within the fair value hierarchy.


			Fair Value at June 30, 2024 Using
Description	Balance as of June 30, 2024		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	$	333,159	$	0	$	333,159	$	0
State and political subdivisions		515,906		0		515,906		0
Residential mortgage-backed securities
Agency		955,313		0		955,313		0
Non-agency		81,775		0		81,775		0
Commercial mortgage-backed securities
Agency		401,621		0		401,621		0
Asset-backed securities		763,345		0		763,345		0
Single issue trust preferred securities		14,569		0		14,569		0
Other corporate securities		250,038		5,064		244,974		0

Total available for sale securities		3,315,726		5,064		3,310,662		0
Equity securities:
Financial services industry		163		163		0		0
Equity mutual funds (1)		3,576		3,576		0		0
Visa C sh ar es		2,223		2,223		0		0
Fixed income mutual funds		5,132		5,132		0		0

Total equity securities		11,094		11,094		0		0
Loans held for sale		66,475		0		0		66,475
Derivative financial assets :
Interest rate swap contracts		753		0		753		0
Forward sales co mm itments		1		0		0		1
TBA mortgage-backed securities		118		0		0		118
Interest rate lock commitments		646		0		0		646

Total derivative financial assets		1,518		0		753		765
Liabilities
Derivative financial liabilities :
TBA mortgage-backed securities		45		0		0		45
Forward sales commitments		1		0		0		1

Total derivative financial liabilities		46		0		0		46

			Fair Value at December 31, 2023 Using
Description	Balance as of December 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	$	484,950	$	0	$	484,950	$	0
State and political subdivisions		533,831		0		533,831		0
Residential mortgage-backed securities
Agency		1,049,941		0		1,049,941		0
Non-agency		90,611		0		90,611		0
Commercial mortgage-backed securities
Agency		459,298		0		459,298		0


			Fair Value at December 31, 2023 Using
Description	Balance as of December 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset-backed securities		860,638		0		860,638		0
Single issue trust preferred securities		15,141		0		15,141		0
Other corporate securities		291,967		5,159		286,808		0

Total available for sale securities		3,786,377		5,159		3,781,218		0
Equity securities:
Financial services industry		211		211		0		0
Equity mutual funds (1)		3,524		3,524		0		0
Fixed income mutual funds		5,210		5,210		0		0

Total equity securities		8,945		8,945		0		0
Loans held for sale		56,261		0		4,283		51,978
Derivative financial assets:
Interest rate swap contracts		611		0		611		0
Forward sales commitments		93		0		60		33
Interest rate lock commitments		1,144		0		139		1,005

Total derivative financial assets		1,848		0		810		1,038
Liabilities
Derivative financial liabilities:
TBA mortgage-backed securities		678		0		11		667

Total derivative financial liabilities		678		0		11		667

(1)	The equity mutual funds are within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries.

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 June 30, 2024 and December 31, 2023 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.


				Derivative Assets								Derivative Liabilities
June 30, 2024	Loans Held for Sale			TBA Securities		Forward Sales Commitments			Interest Rate Lock Commitments			TBA Securities			Forward Sales Commitments
Balance, beginning of period	$	51,978		$	0	$	33		$	1,005		$	667		$	0
Originations		323,669			0		0			0			0			0
Sales		(317,476	)		0		0			0			0			0
Transfers other		0			118		(32	)		(359	)		(622	)		1
Total gains during the period recognized in earnings		8,304			0		0			0			0			0

Balance, end of period	$	66,475		$	118	$	1		$	646		$	45		$	1

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	$	(587	)	$	118	$	1		$	646		$	45		$	1


				Derivative Assets							Derivative Liabilities
December 31, 2023	Loans Held for Sale			TBA Securities			Forward Sales Commitments		Interest Rate Lock Commitments		TBA Securities		Interest Rate Lock Commitments
Balance, beginning of period	$	44,871		$	26		$	6	$	844	$	213	$	348
Originations		1,156,616			0			0		0		0		0
Sales		(1,179,612	)		0			0		0		0		0
Transfers other		0			(26	)		27		161		454		(348	)
Total gains during the period recognized in earnings		30,103			0			0		0		0		0

Balance, end of period	$	51,978		$	0		$	33	$	1,005	$	667	$	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	$	1,142		$	0		$	33	$	1,005	$	667	$	0

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 June 30, 2024		Three Months Ended June 30, 2023
Income from mortgage banking activities	$	249	$	(431	)


Description	Six Months Ended June 30, 2024			Six Months Ended June 30, 2023
Income from mortgage banking activities	$	(587	)	$	357

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:


	June 30, 2024						December 31, 2023
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	$	65,178	$	66,475	$	1,297	$	54,377	$	56,261	$	1,884

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:


			Fair Value at June 30, 2024
Description	Balance as of June 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		YTD Losses
Assets
Individually assessed loans	$	44,177	$	0	$	42,942	$	1,235	$	(1,005	)
OREO		2,156		0		2,070		86		(89	)


			Fair Value at December 31, 2023
Description	Balance as of December 31, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		YTD Gains ( Losses )
Assets
Individually assessed loans	$	45,308	$	0	$	44,722	$	586	$	314
OREO		2,615		0		2,615		0		(67	)

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)
June 30, 2024
Cash and cash equivalents	$	1,858,861	$	1,858,861	$	0	$	1,858,861	$	0
Securities available for sale		3,315,726		3,315,726		5,064		3,310,662		0
Securities held to maturity		1,001		1,020		0		0		1,020
Equity securities		11,094		11,094		11,094		0		0
Other securities		322,761		306,623		0		0		306,623
Loans held for sale		66,475		66,475		0		0		66,475
Net loans		21,331,304		20,607,605		0		0		20,607,605
Derivative financial assets		1,518		1,518		0		753		765
Mortgage servicing rights		3,934		13,434		0		0		13,434
Deposits		23,066,440		23,010,029		0		23,010,029		0
Short-term borrowings		203,519		203,519		0		203,519		0
Long-term borrowings		1,489,764		1,470,331		0		1,470,331		0
Derivative financial liabilities		46		46		0		0		46
December 31, 2023
Cash and cash equivalents	$	1,598,943	$	1,598,943	$	0	$	1,598,943	$	0
Securities available for sale		3,786,377		3,786,377		5,159		3,781,218		0
Securities held to maturity		1,003		1,020		0		0		1,020
Equity securities		8,945		8,945		8,945		0		0
Other securities		329,429		312,958		0		0		312,958
Loans held for sale		56,261		56,261		0		4,283		51,978
Net loans		21,099,847		20,463,710		0		0		20,463,710
Derivative financial assets		1,848		1,848		0		810		1,038
Mortgage servicing rights		4,554		13,427		0		0		13,427
Deposits		22,819,319		22,760,310		0		22,760,310		0
Short-term borrowings		196,095		196,095		0		196,095		0
Long-term borrowings		1,789,103		1,769,123		0		1,769,123		0
Derivative financial liabilities		678		678		0		11		667

- 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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