Balance Sheet Offsetting and Repurchase Agreements Accounted for as Secured Borrowings

6 Months Ended

Jun. 30, 2016

Offsetting [Abstract]

Balance Sheet Offsetting and Repurchase Agreements Accounted for as Secured Borrowings

Note 4 – Balance Sheet Offsetting and Repurchase Agreements Accounted for as Secured Borrowings

United enters into reverse repurchase agreements in order to invest short-term funds. In addition, United enters into repurchase agreements and reverse repurchase agreements with the same counterparty in transactions commonly referred to as collateral swaps that are subject to master netting agreements under which the balances are netted in the balance sheet in accordance with ASC 210-20, Offsetting.

The following table presents a summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of the dates indicated (in thousands).

	Gross Amounts of			Gross Amounts Offset on					Gross Amounts not Offset in the Balance Sheet
June 30, 2016	Recognized Assets			the Balance Sheet			Net Asset Balance		Financial Instruments			Collateral Received			Net Amount
Repurchase agreements / reverse repurchase agreements	$	300,000		$	(300,000	)	$	-	$	-		$	-		$	-
Derivatives		26,880			-			26,880		(1,779	)		(4,760	)		20,341
Total	$	326,880		$	(300,000	)	$	26,880	$	(1,779	)	$	(4,760	)	$	20,341
Weighted average interest rate of reverse repurchase agreements		1.43	%

	Gross Amounts of			Gross Amounts Offset on			Net		Gross Amounts not Offset  in the Balance Sheet
	Recognized Liabilities			the Balance Sheet			Liability Balance		Financial Instruments			Collateral Pledged			Net Amount
Repurchase agreements / reverse repurchase agreements	$	300,000		$	(300,000	)	$	-	$	-		$	-		$	-
Derivatives		34,930			-			34,930		(1,779	)		(33,182	)		-
Total	$	334,930		$	(300,000	)	$	34,930	$	(1,779	)	$	(33,182	)	$	-
Weighted average interest rate of repurchase agreements		.58	%

	Gross Amounts of			Gross Amounts Offset on					Gross Amounts not Offset  in the Balance Sheet
December 31, 2015	Recognized Assets			the Balance Sheet			Net Asset Balance		Financial Instruments			Collateral Received			Net Amount
Repurchase agreements / reverse repurchase agreements	$	400,000		$	(400,000	)	$	-	$	-		$	-		$	-
Derivatives		20,082			-			20,082		(519	)		(3,729	)		15,834
Total	$	420,082		$	(400,000	)	$	20,082	$	(519	)	$	(3,729	)	$	15,834
Weighted average interest rate of reverse repurchase agreements		1.34	%

	Gross Amounts of			Gross Amounts Offset on			Net		Gross Amounts not Offset  in the Balance Sheet
	Recognized Liabilities			the Balance Sheet			Liability Balance		Financial Instruments			Collateral Pledged			Net Amount
Repurchase agreements / reverse repurchase agreements	$	400,000		$	(400,000	)	$	-	$	-		$	-		$	-
Derivatives		28,825			-			28,825		(519	)		(30,917	)		-
Total	$	428,825		$	(400,000	)	$	28,825	$	(519	)	$	(30,917	)	$	-
Weighted average interest rate of repurchase agreements		.50	%

At June 30, 2016, United recognized the right to reclaim cash collateral of $33.5 million and the obligation to return cash collateral of $4.76 million. At December 31, 2015, United recognized the right to reclaim cash collateral of $6.26 million and the obligation to return cash collateral of $3.73 million. The right to reclaim cash collateral and the obligation to return cash collateral were included in the consolidated balance sheet in other assets and other liabilities, respectively.

The following table presents additional detail regarding repurchase agreements accounted for as secured borrowings and the securities underlying these agreements as of the dates indicated (in thousands).

	Remaining Contractual Maturity of the Agreements
	Overnight and
As of June 30, 2016	Continuous		Up to 30 Days		30 to 90 Days		91 to 110 days		Total
U.S. Treasuries	$	-	$	-	$	50,000	$	50,000	$	100,000
Mortgage-backed securities		-		50,000		50,000		100,000		200,000
Total	$	-	$	50,000	$	100,000	$	150,000	$	300,000
Gross amount of recognized liabilities for repurchase agreements in offsetting disclosure									$	300,000
Amounts related to agreements not included in offsetting disclosure									$	-

	Remaining Contractual Maturity of the Agreements
	Overnight and
As of December 31, 2015	Continuous		Up to 30 Days		30 to 90 Days		91 to 110 days		Total
U.S. Treasuries	$	-	$	-	$	100,000	$	-	$	100,000
U.S. Government agencies		32		-		-		-		32
Mortgage-backed securities		16,608		25,000		175,000		100,000		316,608
Total	$	16,640	$	25,000	$	275,000	$	100,000	$	416,640
Gross amount of recognized liabilities for repurchase agreements in offsetting disclosure									$	400,000
Amounts related to agreements not included in offsetting disclosure									$	16,640

United is obligated to promptly transfer additional securities if the market value of the securities falls below the repurchase agreement price.  United manages this risk by maintaining an unpledged securities portfolio that it believes is sufficient to cover a decline in the market value of the securities sold under agreements to repurchase.