FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from       to      

Commission File Number: 002-86947

United Bankshares, Inc.

(Exact name of registrant as specified in its charter)

West Virginia	55-0641179
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
300 United Center 500 Virginia Street, East Charleston, West Virginia	25301
(Address of principal executive offices)	Zip Code

Registrant’s telephone number, including area code: (304) 424-8716

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $2.50 per share	UBSI	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of April 30, 2024, the registrant had 135,196,935 shares of common stock, $2.50 par value per share, outstanding.

UNITED BANKSHARES, INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS

	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets (Unaudited) March 31, 2024 and December 31, 2023	4
Consolidated Statements of Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023	5
Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2024 and 2023	7
Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) for the Three Months Ended March 31, 2024 and 2023	8
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2024 and 2023	9
Notes to Consolidated Financial Statements	10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	55
Item 3. Quantitative and Qualitative Disclosures about Market Risk	73
Item 4. Controls and Procedures	76
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	77
Item 1A. Risk Factors	77
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	77
Item 3. Defaults Upon Senior Securities	78
Item 4. Mine Safety Disclosures	78
Item 5. Other Information	78
Item 6. Exhibits	79
Signatures	80

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PART I - FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS (UNAUDITED)

The March 31, 2024 and December 31, 2023, consolidated balance sheets of United Bankshares, Inc. and Subsidiaries (“United” or the “Company”), consolidated statements of income and comprehensive income for the three months ended March 31, 2024 and 2023, the related consolidated statement of changes in shareholders’ equity for the three months ended March 31, 2024 and 2023, the related condensed consolidated statements of cash flows for the three months ended March 31, 2024 and 2023, and the notes to consolidated financial statements appear on the following pages.

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CONSOLIDATED BALANCE SHEETS

UNITED BANKSHARES, INC. AND SUBSIDIARIES

(Dollars in thousands, except par value)	March 31 2024			December 31 2023
	(Unaudited)			(Note 1)
Assets
Cash and due from banks	$	238,148		$	257,153
Interest-bearing deposits with other banks		1,493,312			1,340,620
Federal funds sold		1,186			1,170
Total cash and cash equivalents		1,732,646			1,598,943
Securities available for sale at estimated fair value (amortized cost-$3,980,612 at March 31, 2024 and $4,149,895 at December 31, 2023, allowance for credit losses of $0 at March 31, 2024 and December 31, 2023)		3,613,975			3,786,377
Securities held to maturity, net of allowance for credit losses of $19 at March 31, 2024 and $17 at December 31, 2023 (estimated fair value-$1,020 at March 31, 2024 and December 31, 2023)		1,001			1,003
Equity securities at estimated fair value		8,762			8,945
Other investment securities		330,781			329,429
Loans held for sale measured using fair value option		44,426			56,261
Loans and leases		21,532,568			21,373,185
Less: Unearned income		(12,492	)		(14,101	)
Loans and leases, net of unearned income		21,520,076			21,359,084
Less: Allowance for loan and lease losses		(262,905	)		(259,237	)
Net loans and leases		21,257,171			21,099,847
Bank premises and equipment		190,988			190,520
Operating lease right-of-use assets		86,074			86,986
Goodwill		1,888,889			1,888,889
Mortgage servicing rights		4,241			4,554
Bank-owned life insurance (“BOLI”)		490,596			486,895
Accrued interest receivable		113,815			111,420
Other assets		265,433			276,413
TOTAL ASSETS	$	30,028,798		$	29,926,482
Liabilities
Deposits:
Noninterest-bearing	$	6,017,349		$	6,149,080
Interest-bearing		16,902,397			16,670,239
Total deposits		22,919,746			22,819,319
Borrowings:
Securities sold under agreements to repurchase		207,727			196,095
Federal Home Loan Bank (“FHLB”) borrowings		1,460,415			1,510,487
Other long-term borrowings		279,019			278,616
Reserve for lending-related commitments		42,915			44,706
Operating lease liabilities		92,266			92,885
Accrued expenses and other liabilities		219,269			213,134
TOTAL LIABILITIES		25,221,357			25,155,242
Shareholders’ Equity
Preferred stock, $1.00 par value; Authorized-50,000,000 shares, none issued		0			0
Common stock, $2.50 par value; Authorized-200,000,000 shares; issued-142,536,369 and 142,257,646 at March 31, 2024 and December 31, 2023, respectively, including 7,343,694 and 7,308,583 shares in treasury at March 31, 2024 and December 31, 2023, respectively		356,341			355,644
Surplus		3,183,198			3,181,764
Retained earnings		1,782,220			1,745,619
Accumulated other comprehensive loss		(260,992	)		(259,681	)
Treasury stock, at cost		(253,326	)		(252,106	)
TOTAL SHAREHOLDERS’ EQUITY		4,807,441			4,771,240
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	30,028,798		$	29,926,482

See notes to consolidated unaudited financial statements

4

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

	Three Months Ended
	March 31
(Dollars in thousands, except per share data)	2024			2023
Interest income
Interest and fees on loans	$	320,991		$	279,896
Interest on federal funds sold and other short-term investments		12,303			10,983
Interest and dividends on securities:
Taxable		34,722			36,259
Tax-exempt		1,164			2,165
Total interest income		369,180			329,303
Interest expense
Interest on deposits		128,377			68,592
Interest on short-term borrowings		2,082			1,157
Interest on long-term borrowings		16,232			25,234
Total interest expense		146,691			94,983
Net interest income		222,489			234,320
Provision for credit losses		5,740			6,890
Net interest income after provision for credit losses		216,749			227,430
Other income
Fees from trust services		4,646			4,780
Fees from brokerage services		5,267			4,200
Fees from deposit services		8,971			9,362
Bankcard fees and merchant discounts		1,873			1,707
Other service charges, commissions, and fees		858			1,138
Income from bank-owned life insurance		2,418			1,891
Income from mortgage banking activities		5,298			6,384
Mortgage loan servicing income		789			2,276
Net investment securities losses		(99	)		(405	)
Other income		2,191			1,411
Total other income		32,212			32,744
Other expense
Employee compensation		59,293			55,414
Employee benefits		14,671			13,435
Net occupancy expense		12,343			11,833
Other real estate owned (“OREO”) expense		159			667
Net gains on the sales of OREO properties		(83	)		(43	)
Equipment expense		6,853			6,996
Data processing expense		7,463			7,473
Mortgage loan servicing expense and impairment		1,015			1,884
Bankcard processing expense		616			522
FDIC insurance expense		6,455			4,587
Other expense		31,957			34,651
Total other expense		140,742			137,419
Income before income taxes		108,219			122,755
Income taxes		21,405			24,448
Net income	$	86,814		$	98,307

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - continued

UNITED BANKSHARES, INC. AND SUBSIDIARIES

	Three Months Ended
	March 31
(Dollars in thousands, except per share data)	2024		2023
Earnings per common share:
Basic	$	0.64	$	0.73
Diluted	$	0.64	$	0.73
Average outstanding shares:
Basic		134,808,634		134,411,166
Diluted		135,121,380		134,840,328

See notes to consolidated unaudited financial statements

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

	Three Months Ended
	March 31
(Dollars in thousands)	2024			2023
Net income	$	86,814		$	98,307
Change in net unrealized (loss) gain on available for sale (“AFS”) securities, net of tax		(2,392	)		45,157
Change in net unrealized gain (loss) on cash flow hedge, net of tax		657			(7,157	)
Change in defined benefit pension plan, net of tax		424			602
Comprehensive income, net of tax	$	85,503		$	136,909

See notes to consolidated unaudited financial statements

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

(Dollars in thousands, except per share data)

	Three Months Ended March 31, 2024
	Common Stock				Surplus			Retained Earnings			Accumulated Other Comprehensive Loss			Treasury Stock			Total Shareholders’ Equity
	Shares		Par Value
Balance at January 1, 2024		142,257,646	$	355,644	$	3,181,764		$	1,745,619		$	(259,681	)	$	(252,106	)	$	4,771,240
Comprehensive income:
Net income		0		0		0			86,814			0			0			86,814
Other comprehensive loss, net of tax		0		0		0			0			(1,311	)		0			(1,311	)
Total comprehensive income, net of tax																		85,503
Stock based compensation expense		0		0		3,266			0			0			0			3,266
Stock grant forfeiture (5,215 shares)		0		0		190			0			0			(190	)		0
Purchase of treasury stock (29,896 shares)		0		0		0			0			0			(1,030	)		(1,030	)
Cash dividends ($0.37 per share)		0		0		0			(50,213	)		0			0			(50,213	)
Net issuance of common stock under stock-based compensation plans (278,723 shares)		278,723		697		(2,022	)		0			0			0			(1,325	)
Balance at March 31, 2024		142,536,369	$	356,341	$	3,183,198		$	1,782,220		$	(260,992	)	$	(253,326	)	$	4,807,441

	Three Months Ended March 31, 2023
	Common Stock				Surplus		Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Treasury Stock			Total Shareholders’ Equity
	Shares		Par Value
Balance at January 1, 2023		142,011,560	$	355,029	$	3,168,874	$	1,575,426		$	(332,732	)	$	(250,404	)	$	4,516,193
Comprehensive income:
Net income		0		0		0		98,307			0			0			98,307
Other comprehensive income, net of tax		0		0		0		0			38,602			0			38,602
Total comprehensive income, net of tax																	136,909
Stock based compensation expense		0		0		2,713		0			0			0			2,713
Stock grant forfeiture (1,506 shares)		0		0		58		0			0			(58	)		0
Purchase of treasury stock (33,551 shares)		0		0		0		0			0			(1,374	)		(1,374	)
Cash dividends ($0.36 per share)		0		0		0		(48,720	)		0			0			(48,720	)
Net issuance of common stock under stock-based compensation plans (226,486 shares)		226,486		566		250		0			0			0			816
Balance at March 31, 2023		142,238,046	$	355,595	$	3,171,895	$	1,625,013		$	(294,130	)	$	(251,836	)	$	4,606,537

See notes to consolidated unaudited financial statements

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

	Three Months Ended March 31
(Dollars in thousands)	2024			2023
NET CASH PROVIDED BY OPERATING ACTIVITIES	$	124,371		$	118,154
INVESTING ACTIVITIES
Proceeds from sales of securities available for sale		93			1,689
Proceeds from maturities and calls of securities available for sale		416,317			184,059
Purchases of securities available for sale		(248,049	)		(7,855	)
Proceeds from sales of equity securities		289			98
Purchases of equity securities		(205	)		(246	)
Proceeds from sales and redemptions of other investment securities		46,739			21,547
Purchases of other investment securities		(52,379	)		(52,217	)
Purchases of bank premises and equipment		(4,772	)		(3,447	)
Proceeds from sales of bank premises and equipment		63			2,465
Proceeds from the sales of OREO properties		146			279
Net change in loans and leases		(160,675	)		(54,938	)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES		(2,433	)		91,434
FINANCING ACTIVITIES
Cash dividends paid		(50,137	)		(48,651	)
Acquisition of treasury stock		(1,030	)		(1,374	)
Proceeds from exercise of stock options		702			1,559
Redemption of subordinated debt		0			(10,250	)
Repayment of long-term Federal Home Loan Bank borrowings		(1,500,000	)		(1,900,000	)
Proceeds from issuance of long-term Federal Home Loan Bank borrowings		1,450,000			2,500,000
Changes in:
Deposits		100,598			(18,227	)
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		11,632			9,396
NET CASH PROVIDED BY FINANCING ACTIVITIES		11,765			532,453
Increase in cash and cash equivalents		133,703			742,041
Cash and cash equivalents at beginning of year		1,598,943			1,176,652
Cash and cash equivalents at end of period	$	1,732,646		$	1,918,693
Supplemental information
Noncash investing activities:
Transfers of loans to OREO	$	119		$	2,919
Right-of-use assets obtained in the exchange for lease liabilities		3,671			10,192

See notes to consolidated unaudited financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

UNITED BANKSHARES, INC. AND SUBSIDIARIES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated interim financial statements of United Bankshares, Inc. and Subsidiaries (“United” or “the Company”) have been prepared in accordance with accounting principles for interim financial information generally accepted in the United States (“GAAP”) and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, the financial statements do not contain all of the information and footnotes required by accounting principles generally accepted in the United States. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The financial statements presented as of March 31, 2024 and 2023 and for the three-month periods then ended have not been audited. The consolidated balance sheet as of December 31, 2023 has been extracted from the audited financial statements included in United’s 2023 Annual Report to Shareholders. The Notes to Consolidated Financial Statements appearing in United’s 2023 Annual Report on Form 10-K, which includes descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. In the opinion of management, any adjustments necessary for a fair presentation of financial position and results of operations for the interim periods have been made. Such adjustments are of a normal and recurring nature.

The accompanying consolidated interim financial statements include the accounts of United and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements. Information is presented in these notes to the unaudited consolidated interim financial statements with dollars expressed in thousands, except per share or unless otherwise noted.

Operating and Reporting Segments

As of March 31, 2024, United’s business activities are confined to one operating segment, United Bank, and one reportable segment, community banking. As a community banking entity, United, through United Bank, offers a full range of products and services through various delivery channels. Included among the banking products and services offered are the acceptance of deposits in checking, savings, time and money market accounts; the making and servicing of personal, credit card, commercial, and floor plan loans; and the making of construction and real estate loans as well as the origination and sale of residential mortgages in the secondary market. Also offered are trust and brokerage services, safe deposit boxes, and wire transfers. United’s chief operating decision maker regularly reviews the operating results of United Bank in order to assess performance and make decisions about resource allocation. Previously, United had three operating segments: United Bank, George Mason Mortgage, LLC (“George Mason”) and Crescent Mortgage Company (“Crescent”), and two reporting segments: community banking and mortgage banking. However, during the first quarter of 2024, United consolidated the mortgage origination and sales business of George Mason and Crescent with that of United Bank. United previously exited the third-party origination (“TPO”) business during the fourth quarter of 2023.

New Accounting Standards

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Improvements to Income Tax Disclosures.” ASU 2023-09 enhances annual income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. ASU 2023-09 also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Entities are permitted to early adopt the standard for annual financial statements that have not yet been issued or made available for issuance. The adoption of ASU 2023-09 is not expected to have an impact on the Company’s financial condition or results of operations but could change certain disclosures in United’s SEC filings.

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In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in ASU 2023-07 improve reportable segment disclosure requirements, mainly through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments will enable investors to better understand an entity’s overall performance and assess potential future cash flows. ASU No. 2023-07 is effective for public business entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption of the amendment is permitted. The adoption of ASU 2023-07 is not expected to have an impact on the Company’s financial condition or results of operations but could change certain disclosures in United’s SEC filings starting with its 2024 Annual Report on Form 10-K.

In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” which adopts certain disclosure requirements referred by the SEC. For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. For all other entities, the amendments will be effective two years later. The adoption of ASU 2023-06 is not expected to have an impact on the Company’s financial condition or results of operations but could change certain disclosures in United’s SEC filings.

In August 2023, the FASB issued ASU 2023-05, “Business Combinations – Joint Venture Formations (Subtopic 805-60).” ASU 2023-05 requires a joint venture to apply a new basis of accounting at its formation date by valuing the net assets contributed at fair value for both business and asset transactions. The value of the net assets in total is then allocated to individual assets and liabilities by applying Topic 805 with certain exceptions. ASU 2023-05 requires certain disclosures to aid the user of the financial statements in understanding the implications of the joint venture formation. ASU 2023-05 is effective for joint venture formations with a formation date on or after January 1, 2025. The adoption of ASU 2023-05 is not expected to have an impact on the Company’s financial condition or results of operations.

In July 2023, the FASB issued ASU No. 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock.” ASU 2023-03 amends the ASC for SEC updates pursuant to SEC Staff Accounting Bulletin No. 120; SEC Staff Announcement at the March 24, 2022 Emerging Issues Task Force (“EITF”) Meeting; and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280 - General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. These updates were immediately effective and did not have a significant impact on the Company’s financial statements.

In March 2023, the FASB issued Accounting ASU 2023-02, “Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” ASU 2023-02 permits reporting entities to elect to account for their tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. The amendments in this ASU apply to all reporting entities that hold

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tax equity investments that meet the conditions for and elect to account for them using the proportional amortization method or an investment in a low income housing tax credit (“LIHTC”) structure through a limited liability entity that is not accounted for using the proportional amortization method and to which certain LIHTC-specific guidance removed from Subtopic 323-740 has been applied. Additionally, the disclosure requirements apply to investments that generate income tax credits and other income tax benefits from a tax credit program for which the entity has elected to apply the proportional amortization method (including investments within that elected program that do not meet the conditions to apply the proportional amortization method). ASU 2023-02 was effective for United on January 1, 2024. The amendments in this update must be applied on either a modified retrospective or a retrospective basis except for LIHTC investments not accounted for using the proportional amortization method. At January 1, 2024, United chose not to elect to account for its tax equity investments using the proportional amortization method.

In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848.” ASU 2022-06 extends the period of time financial statement preparers can utilize the reference rate reform relief guidance. In 2020, the FASB issued ASU 2020-04 to provide temporary, optional expedients related to the accounting for contract modifications and hedging transactions as a result of the global markets’ anticipated transition away from the use of LIBOR and other interbank offered rates to alternative reference rates. At the time ASU 2020-04 was issued, the United Kingdom’s Financial Conduct Authority (“FCA”) had established the intent that it would no longer be necessary to persuade, or compel, banks to submit to LIBOR after December 31, 2021. As a result, the sunset provision was set for December 31, 2022; 12 months after the expected cessation date of all currencies and tenors of LIBOR. In March 2021, the FCA announced that the intended cessation date of LIBOR in the United States would be June 30, 2023, which has now taken effect as intended. Accordingly, ASU 2022-06 defers the expiration date of ASU 848 to December 31, 2024. United implemented a comprehensive project plan to execute the transition of its LIBOR-based financial instruments to alternative reference rates. United utilized the Secured Overnight Financing Rate (“SOFR”) and Prime as the preferred alternatives to LIBOR.

In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. ASU 2022-03 also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction and requires certain new disclosures for equity securities subject to contractual sale restrictions. ASU 2022-03 was effective for United on January 1, 2024. The adoption of ASU 2022-03 did not have a material impact on the Company’s financial condition or results of operations.

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2. INVESTMENT SECURITIES

Securities Available for Sale

Securities held for indefinite periods of time are classified as available for sale and carried at estimated fair value. The amortized cost, estimated fair values, and allowance for credit losses of securities available for sale are summarized as follows.

	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance For Credit Losses		Estimated Fair Value
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	439,648	$	45	$	5,582	$	0	$	434,111
State and political subdivisions		611,240		14		82,953		0		528,301
Residential mortgage-backed securities
Agency		1,183,484		4		176,629		0		1,006,859
Non-agency		83,698		0		8,394		0		75,304
Commercial mortgage-backed securities
Agency		507,889		13		54,189		0