Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018 and December 31, 2017, segregated by the level of the valuation inputs within the fair value hierarchy.


			Fair Value at June 30, 2018 Using
Description	Balance as of June 30, 2018		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 securities:
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	143,815	$	0	$	143,815	$	0
State and political subdivisions		272,180		0		272,180		0
Residential mortgage-backed securities
Agency		890,129		0		890,129		0
Non-agency		4,794		0		4,794		0
Commercial mortgage-backed securities
Agency		501,403		0		501,403		0
Asset-backed securities		166,131		0		166,131		0
Trust preferred collateralized debt obligations		5,818		0		0		5,818


			Fair Value at June 30, 2018 Using
Description	Balance as of June 30, 2018		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		8,238		0		8,238		0
Other corporate securities		68,419		6,940		61,479		0

Total available for sale securities		2,060,927		6,940		2,048,169		5,818
Equity securities:
Financial services industry		175		175		0		0
Equity mutual funds (1)		4,856		4,856		0		0
Other equity securities		4,633		4,633		0		0

Total equity securities		9,664		9,664		0		0
Loans held for sale		282,439		0		0		282,439
Derivative financial assets:
Interest rate swap contracts		3,329		0		3,329		0
Forward sales commitments		112		0		112		0
Interest rate lock commitments		6,541		0		0		6,541

Total derivative financial assets		9,982		0		3,441		6,541
Liabilities
Derivative financial liabilities:
TBA mortgage-backed securities		1,422		0		1,422		0

Total derivative financial liabilities		1,422		0		1,422		0

(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.


			Fair Value at December 31, 2017 Using
Description	Balance as of December 31, 2017		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	$	114,758	$	0	$	114,758	$	0
State and political subdivisions		303,869		0		303,869		0
Residential mortgage-backed securities
Agency		814,593		0		814,593		0
Non-agency		5,512		0		5,512		0
Commercial mortgage-backed securities Agency		454,857		0		454,857		0
Asset-backed securities		109,970		0		109,970		0
Trust preferred collateralized debt obligations		34,269		0		0		34,269
Single issue trust preferred securities		12,560		0		12,560		0
Other corporate securities		28,490		0		28,490		0

Total available for sale debt securities		1,878,878		0		1,844,609		34,269
Available for sale equity securities:
Financial services industry		3,545		331		3,214		0
Equity mutual funds (1)		6,332		6,332		0		0
Other equity securities		1		1		0		0

Total available for sale equity securities		9,878		6,664		3,214		0

Total available for sale securities		1,888,756		6,664		1,847,823		34,269
Loans held for sale		263,308		0		0		263,308
Derivative financial assets:
Interest rate swap contracts		538		0		538		0
Interest rate lock commitments		4,561		0		2		4,559

Total derivative financial assets		5,099		0		540		4,559
Liabilities
Derivative financial liabilities:
Interest rate swap contracts		165		0		165		0
TBA mortgage-backed securities		312		0		312		0

Total derivative financial liabilities		477		0		477		0

(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 table presents additional information about financial assets and liabilities measured at fair value at June 30, 2018 and December 31, 2017 on a recurring basis and for which United has utilized Level 3 inputs to determine fair value:


	Available-for-sale Securities
	Trust preferred collateralized debt obligations
	June 30, 2018			December 31, 2017
Balance, beginning of period	$	34,269		$	33,552
Total gains or losses (realized/unrealized):
Included in earnings (or changes in net assets)		28			9
Included in other comprehensive income		821			8,757
Purchases, issuances, and settlements		0			0
Sales		(29,300	)		(8,049	)
Transfers in and/or out of Level 3		0			0

Balance, end of period	$	5,818		$	34,269

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 relating to assets still held at reporting date	$	0		$	0


	Loans held for sale
	June 30, 2018			December 31, 2017
Balance, beginning of period	$	263,308		$	0
Acquired in Cardinal merger		0			271,301
Originations		1,448,225			2,333,927
Sales		(1,440,029	)		(2,408,945	)
Total gains or losses during the period recognized in earnings		38,351			58,132
Transfers in and/or out of Level 3		(27,416	)		8,893

Balance, end of period	$	282,439		$	263,308

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 relating to assets still held at reporting date	$	0		$	0


	Derivative Financial Assets Interest Rate Lock Commitments
	June 30, 2018		December 31, 2017
Balance, beginning of period	$	4,559	$	0
Acquired in Cardinal merger		0		10,393
Transfers other		1,982		(5,834	)

Balance, end of period	$	6,541	$	4,559

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 relating to assets still held at reporting date	$	0	$	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, 2018		Three Months Ended June 30, 2017
Assets
Loans held for sale
Income from mortgage banking activities	$	3,929	$	(2,439	)

Description	Six Months Ended June 30, 2018		Six Months Ended June 30, 2017
Assets
Loans held for sale
Income from mortgage banking activities	$	3,092	$	(2,439	)

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, 2018						December 31, 2017
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
Assets
Loans held for sale	$	275,693	$	282,439	$	6,746	$	257,674	$	263,308	$	5,634

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:


			Carrying value at June 30, 2018
Description	Balance as of June 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		YTD Losses
Assets
Loans held for sale	$	2,755	$	0	$	2,755	$	0	$	0
Impaired Loans		73,997		0		65,174		8,823		1,581
OREO		21,926		0		21,747		179		825

			Carrying value at December 31, 2017
Description	Balance as of December 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		YTD Losses
Assets
Loans held for sale	$	2,647	$	0	$	2,647	$	0	$	14
Impaired Loans		88,637		0		70,950		17,687		12,291
OREO		24,348		0		24,151		197		4,200

Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of United’s financial instruments, including those measured at amortized cost on the balance sheet, 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, 2018
Cash and cash equivalents	$	1,092,926	$	1,092,926	$	0	$	1,092,926	$	0
Securities available for sale		2,060,927		2,060,927		6,940		2,048,169		5,818
Securities held to maturity		20,378		19,708		0		19,708		0
Equity securities		9,664		9,664		9,664		0		0
Other securities		175,334		166,568		0		0		166,568
Loans held for sale		285,194		285,194		0		2,755		282,439
Loans		13,439,494		12,582,256		0		0		12,582,256
Derivative financial assets		9,882		9,882		0		3,441		6,541
Deposits		13,830,766		13,789,447		0		13,789,447		0
Short-term borrowings		199,507		199,507		0		199,507		0
Long-term borrowings		1,794,641		1,767,186		0		1,767,186		0
Derivative financial liabilities		1,422		1,422		0		1,422		0
December 31, 2017
Cash and cash equivalents	$	1,666,167	$	1,666,167	$	0	$	1,666,167	$	0
Securities available for sale		1,888,756		1,888,756		6,664		1,847,823		34,269
Securities held to maturity		20,428		20,018		0		16,998		3,020
Other securities		162,461		154,338		0		0		154,338
Loans held for sale		265,955		265,955		0		2,647		263,308
Loans		12,934,794		12,437,797		0		0		12,437,797
Derivative financial assets		5,099		5,099		0		540		4,559
Deposits		13,830,591		14,024,720		0		14,024,720		0
Short-term borrowings		477,587		477,587		0		477,587		0
Long-term borrowings		1,363,977		1,338,754		0		1,338,754		0
Derivative financial liabilities		477		477		0		477		0