Assets and Liabilities Measured at Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of assets and liabilities measured at fair value on a recurring basis

The table below presents United’s assets and liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands):



December 31, 2018	Level 1		Level 2		Level 3		Total
Assets:
Debt securities available for sale:
U.S. Treasuries	$	149,307	$	—	$	—	$	149,307
U.S. Government agencies	—		25,553		—		25,553
State and political subdivisions	—		233,941		—		233,941
Residential mortgage-backed securities	—		1,445,910		—		1,445,910
Commercial mortgage-backed securities	—		391,917		—		391,917
Corporate bonds	—		198,168		995		199,163
Asset-backed securities	—		182,676		—		182,676
Equity securities with readily determinable fair values	1,076		—		—		1,076
Mortgage loans held for sale	—		18,935		—		18,935
Deferred compensation plan assets	6,404		—		—		6,404
Servicing rights for SBA/USDA loans	—		—		7,510		7,510
Residential mortgage servicing rights	—		—		11,877		11,877
Derivative financial instruments	—		12,864		11,841		24,705
Total assets	$	156,787	$	2,509,964	$	32,223	$	2,698,974

Liabilities:
Deferred compensation plan liability	$	6,404	$	—	$	—	$	6,404
Derivative financial instruments	—		10,701		15,732		26,433
Total liabilities	$	6,404	$	10,701	$	15,732	$	32,837



December 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Securities available for sale:
U.S. Treasuries	$	121,113	$	—	$	—	$	121,113
U.S. Government agencies	—		26,372		—		26,372
State and political subdivisions	—		197,286		—		197,286
Residential mortgage-backed securities	—		1,311,733		—		1,311,733
Commercial mortgage-backed securities	—		415,478		—		415,478
Corporate bonds	—		305,453		900		306,353
Asset-backed securities	—		237,458		—		237,458
Other	—		57		—		57
Mortgage loans held for sale	—		26,252		—		26,252
Deferred compensation plan assets	5,716		—		—		5,716
Servicing rights for SBA/USDA loans	—		—		7,740		7,740
Residential mortgage servicing rights	—		—		8,262		8,262
Derivative financial instruments	—		10,514		12,207		22,721
Total assets	$	126,829	$	2,530,603	$	29,109	$	2,686,541

Liabilities:
Deferred compensation plan liability	$	5,716	$	—	$	—	$	5,716
Derivative financial instruments	—		8,632		16,744		25,376
Total liabilities	$	5,716	$	8,632	$	16,744	$	31,092

Schedule of assets measured at fair value on a recurring basis using significant unobservable inputs

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands):



	Derivative Asset			Derivative Liability			Servicing rights for SBA/USDA loans			Residential mortgage servicing rights			Debt Securities Available- for-Sale
December 31, 2015	$	9,418		$	15,794		$	3,712		$	—		$	750
Additions	—			17			2,723			—			—
Sales and settlements	(509		)	(1,001		)	(393		)	—			—
Other comprehensive income	—			—			—			—			(75		)
Amounts included in earnings - fair value adjustments	2,868			1,537			(290		)	—			—
December 31, 2016	11,777			16,347			5,752			—			675
Transfer from amortization method to fair value	—			—			—			5,070			—
Business combinations	—			—			419			—			—
Additions	—			—			2,737			3,602			—
Sales and settlements	(1,744		)	(2,423		)	(621		)	(328		)	—
Other comprehensive income	—			—			—			—			225
Amounts included in earnings - fair value adjustments	2,174			2,820			(547		)	(82		)	—
December 31, 2017	12,207			16,744			7,740			8,262			900
Business combinations	—			—			(354		)	—			—
Additions	—			—			2,573			4,587			—
Sales and settlements	(1,029		)	(1,347		)	(810		)	(537		)	—
Other comprehensive income	—			—			—			—			95
Amounts included in earnings - fair value adjustments	663			335			(1,639		)	(435		)	—
December 31, 2018	$	11,841		$	15,732		$	7,510		$	11,877		$	995

Schedule of quantitative information about Level 3 fair value measurements for fair value on a recurring basis

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at (in thousands):



	Fair Value						Weighted Average
	December 31,				Valuation Technique		December 31,
Level 3 Assets	2018		2017		Valuation Technique	Unobservable Inputs	2018		2017
Servicing rights for SBA/USDA loans	$	7,510	$	7,740	Discounted cash flow	Discount rate	14.5	%	12.5	%
						Prepayment rate	12.1	%	8.31	%
Residential mortgage servicing rights	11,877		8,262		Discounted cash flow	Discount rate	10.0	%	10.0	%
						Prepayment rate	10.6	%	9.50	%
Corporate bonds	995		900		Indicative bid provided by a broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	N/A		N/A
Derivative assets - mortgage	1,190		1,150		Internal model	Pull through rate	80.7	%	80.0	%
Derivative assets - other	10,651		11,057		Dealer priced	Dealer priced	N/A		N/A
Derivative liabilities - risk participations	8		20		Internal model	Probable exposure rate	0.44	%	0.37	%
						Probability of default rate	1.80	%	1.80	%
Derivative liabilities - other	15,724		16,724		Dealer priced	Dealer priced	N/A		N/A

Schedule of presentation of United's assets and liabilities measured at fair value on nonrecurring basis

The following table presents the fair value hierarchy and carrying value of all assets that were still held as of December 31, 2018 and 2017, for which a nonrecurring fair value adjustment was recorded during the periods presented (in thousands).



December 31, 2018	Level 1		Level 2		Level 3		Total
Loans	$	—	$	—	$	8,631	$	8,631

December 31, 2017
Loans	$	—	$	—	$	6,905	$	6,905

Schedule of summary of carrying amount and fair values for other financial instruments not measured at fair value on a recurring basis

The carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis in United’s consolidated balance sheets are as follows (in thousands):



	Carrying Amount		Fair Value Level
December 31, 2018	Carrying Amount		Level 1		Level 2		Level 3		Total
Assets:
Securities held to maturity	$	274,407	$	—	$	268,803	$	—	$	268,803
Loans, net	8,322,198		—		—		8,277,387		8,277,387

Liabilities:
Deposits	10,534,513		—		10,528,834		—		10,528,834
Federal Home Loan Bank advances	160,000		—		159,988		—		159,988
Long-term debt	267,189		—		—		278,996		278,996

December 31, 2017
Assets:
Securities held to maturity	$	321,094	$	—	$	321,276	$	—	$	321,276
Loans, net	7,676,658		—		—		7,674,460		7,674,460
Loans held for sale	6,482		—		6,514		—		6,514

Liabilities:
Deposits	9,807,697		—		9,809,264		—		9,809,264
Federal Home Loan Bank advances	504,651		—		504,460		—		504,460
Long-term debt	120,545		—		—		123,844		123,844