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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

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, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy.


			Fair Value at June 30, 2020 Using
Description	Balance as of June 30, 2020		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	$	67,303	$	0	$	67,303	$	0
State and political subdivisions		520,880		0		520,880		0
Residential mortgage-backed securities
Agency		848,231		0		848,231		0
Non-agency		62,965		0		62,965		0
Commercial mortgage-backed securities
Agency		622,785		0		622,785		0
Asset-backed securities		277,721		0		277,721		0
Trust preferred collateralized debt obligations		12,837		0		0		12,837
Single issue trust preferred securities		16,191		0		16,191		0
Other corporate securities		371,028		6,432		364,596		0

Total available for sale securities		2,799,941		6,432		2,780,672		12,837
Equity securities:
Financial services industry		103		103		0		0

Equity mutual funds (1)		3,783		3,783		0		0
Other equity securities		5,989		5,989		0		0

Total equity securities		9,875		9,875		0		0
Loans held for sale		611,277		0		45,480		565,797
Derivative financial assets:
Forward sales commitments		1,745		0		1,745		0
Interest rate lock commitments		27,833		0		7,413		20,420

Total derivative financial assets		29,578		0		9,158		20,420
Liabilities
Derivative financial liabilities:
Interest rate swap contracts		10,083		0		10,083		0
TBA mortgage-backed securities		4,224		0		4,224		0

Total derivative financial liabilities		14,307		0		14,307		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, 2019 Using
Description	Balance as of December 31, 2019		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	$	58,676	$	0	$	58,676	$	0
State and political subdivisions		272,362		0		272,362		0
Residential mortgage-backed securities
Agency		836,534		0		836,534		0
Non-agency		3,833		0		3,833		0
Commercial mortgage-backed securities
Agency		614,973		0		614,973		0
Asset-backed securities		276,139		0		276,139		0
Trust preferred collateralized debt obligations		4,703		0		0		4,703
Single issue trust preferred securities		16,774		0		16,774		0
Other corporate securities		353,302		6,586		346,716		0

Total available for sale securities		2,437,296		6,586		2,426,007		4,703
Equity securities:
Financial services industry		154		154		0		0
Equity mutual funds (1)		3,971		3,971		0		0
Other equity securities		4,769		4,769		0		0

Total equity securities		8,894		8,894		0		0
Loans held for sale		384,375		0		0		384,375

Derivative financial assets:
Interest rate swap contracts		9		0		9		0
Forward sales commitments		4,518		0		0		4,518

Total derivative financial assets		4,527		0		9		4,518
Liabilities
Derivative financial liabilities:		2,394		0		2,394		0
TBA mortgage-backed securities		671		0		671		0

Total derivative financial liabilities		3,065		0		3,065		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, 2020 and December 31, 2019 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, 2020		December 31, 2019
Balance, beginning of period	$	4,703	$	5,917
Total gains or losses (realized/unrealized):
Included in earnings (or changes in net assets)		0		(155	)
Included in other comprehensive income		2,318		(1,059	)
Acquired in Carolina Financial merger		5,816		0

Balance, end of period	$	12,837	$	4,703

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, 2020			December 31, 2019
Balance, beginning of period	$	384,375		$	247,104
Originations		2,363,759			2,941,722
Sales		(2,261,049	)		(2,888,257	)
Total gains or losses during the period recognized in earnings		78,712			83,806

Balance, end of period	$	565,797		$	384,375

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, 2020			December 31, 2019
Balance, beginning of period	$	4,518		$	4,103
Transfers other		15,902			415

Balance, end of period	$	20,420		$	4,518

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, 2020		Three Months Ended June 30, 2019
Assets
Loans held for sale
Income from mortgage banking activities	$	8,846	$	4,578


Description	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Assets
Loans held for sale
Income from mortgage banking activities	$	10,471	$	6,542

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, 2020						December 31, 2019
Description	Unpaid Principal Balance		Fair Value		Fair Value Ove r / (Under) Unpaid Principal Balance		Unpaid Principal Balance		Fair Value		Fair Value Over/ (Under) Unpaid Principal Balance
Assets
Loans held for sale	$	591,397	$	611,277	$	19,880	$	375,274	$	384,375	$	9,101

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, 2020
Description	Balance as of June 30, 2020		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
Loans held for sale	$	14,707	$	0	$	14,707	$	0	$	(2	)
Individually assessed loans		59,488		0		49,732		9,756		568
OREO		29,947		0		29,898		49		(440	)
Mortgage servicing rights		20,200		0		0		20,200		(710	)


			Carrying value at December 31, 2019
Description	Balance as of December 31, 2019		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
Loans held for sale	$	3,139	$	0	$	3,139	$	0	$	(4	)
Impaired Loans		68,213		0		55,792		12,421		1,831
OREO		15,515		0		15,495		20		(785	)

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, 2020
Cash and cash equivalents	$	2,062,813	$	2,062,813	$	0	$	2,062,813	$	0
Securities available for sale		2,799,941		2,799,941		6,432		2,780,672		12,837
Securities held to maturity		1,221		1,220		0		200		1,020
Equity securities		9,875		9,875		9,875		0		0
Other securities		251,161		238,603		0		0		238,603
Loans held for sale		625,984		625,984		0		60,187		565,797
Net loans		17,777,281		17,191,993		0		0		17,191,993
Derivative financial assets		29,578		29,578		0		9,158		20,420
Mortgage servicing rights		20,200		20,200		0		0		20,200
Deposits		19,893,843		19,902,498		0		19,902,498		0
Short-term borrowings		176,168		176,168		0		176,168		0
Long-term borrowings		1,633,891		1,597,685		0		1,597,685		0
Derivative financial liabilities		14,307		14,307		0		14,307		0
December 31, 2019
Cash and cash equivalents	$	837,493	$	837,493	$	0	$	837,493	$	0
Securities available for sale		2,437,296		2,437,296		6,586		2,426,007		4,703
Securities held to maturity		1,446		1,447		0		427		1,020
Equity securities		8,894		8,894		8,894		0		0
Other securities		222,161		211,053		0		0		211,053
Loans held for sale		387,514		387,514		0		3,139		384,375
Net loans		13,635,072		13,185,955		0		0		13,185,955
Derivative financial assets		4,527		4,527		0		9		4,518
Deposits		13,852,421		13,843,077		0		13,843,077		0
Short-term borrowings		374,654		374,654		0		374,654		0
Long-term borrowings		1,838,029		1,820,297		0		1,820,297		0
Derivative financial liabilities		3,065		3,065		0		3,065		0

- 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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