Assets and Liabilities Measured at Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

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 as of the dates indicated, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).

March 31, 2020	Level 1		Level 2		Level 3		Total
Assets:
Debt securities available-for-sale:
U.S. Treasuries	$	158,964	$	—	$	—	$	158,964
U.S. Government agencies	—		2,967		—		2,967
State and political subdivisions	—		227,681		—		227,681
Residential mortgage-backed securities	—		1,297,591		—		1,297,591
Commercial mortgage-backed securities	—		267,789		—		267,789
Corporate bonds	—		190,785		—		190,785
Asset-backed securities	—		104,099		—		104,099
Equity securities with readily available fair values	1,338		—		—		1,338
Mortgage loans held for sale	—		89,959		—		89,959
Deferred compensation plan assets	7,537		—		—		7,537
Servicing rights for SBA/USDA loans	—		—		6,290		6,290
Residential mortgage servicing rights	—		—		11,059		11,059
Derivative financial instruments	—		75,307		7,361		82,668
Total assets	$	167,839	$	2,256,178	$	24,710	$	2,448,727
Liabilities:
Deferred compensation plan liability	$	7,549	$	—	$	—	$	7,549
Derivative financial instruments	—		24,632		2,717		27,349
Total liabilities	$	7,549	$	24,632	$	2,717	$	34,898

December 31, 2019	Level 1		Level 2		Level 3		Total
Assets:
Debt securities available-for-sale
U.S. Treasuries	$	154,618	$	—	$	—	$	154,618
U.S. Agencies	—		3,035		—		3,035
State and political subdivisions	—		226,490		—		226,490
Residential mortgage-backed securities	—		1,299,025		—		1,299,025
Commercial mortgage-backed securities	—		284,953		—		284,953
Corporate bonds	—		202,093		998		203,091
Asset-backed securities	—		103,369		—		103,369
Equity securities with readily available fair values	1,973		—		—		1,973
Mortgage loans held for sale	—		58,484		—		58,484
Deferred compensation plan assets	8,133		—		—		8,133
Servicing rights for SBA/USDA loans	—		—		6,794		6,794
Residential mortgage servicing rights	—		—		13,565		13,565
Derivative financial instruments	—		27,769		7,238		35,007
Total assets	$	164,724	$	2,205,218	$	28,595	$	2,398,537
Liabilities:
Deferred compensation plan liability	$	8,132	$	—	$	—	$	8,132
Derivative financial instruments	—		6,957		8,559		15,516
Total liabilities	$	8,132	$	6,957	$	8,559	$	23,648

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 the periods indicated for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).

	2020														2019
	Derivative Asset		Derivative Liability			Servicing rights for SBA/USDA loans			Residential mortgage servicing rights			Debt Securities Available-for-Sale			Derivative Asset			Derivative Liability			Servicing rights for SBA/USDA loans			Residential mortgage servicing rights			Debt Securities Available-for-Sale
Three Months Ended March 31,
Balance at beginning of period	$	7,238	$	8,559		$	6,794		$	13,565		$	998		$	11,841		$	15,732		$	7,510		$	11,877		$	995
Additions	—		—			95			2,115			—			—			—			375			863			—
Sales and settlements	—		—			(307		)	(493		)	(1,000		)	(1,135		)	(2,330		)	(363		)	(150		)	—
Other comprehensive income	—		—			—			—			2			—			—			—			—			—
Amounts included in earnings - fair value adjustments	123		(5,842		)	(292		)	(4,128		)	—			(1,145		)	(1,958		)	(121		)	(1,143		)	—
Balance at end of period	$	7,361	$	2,717		$	6,290		$	11,059		$	—		$	9,561		$	11,444		$	7,401		$	11,447		$	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 as of the dates indicated (in thousands). 

	Fair Value						Weighted Average
Level 3 Assets and Liabilities	March 31, 2020		December 31, 2019		Valuation Technique		March 31, 2020		December 31, 2019
						Unobservable Inputs
Servicing rights for SBA/USDA loans	$	6,290	$	6,794	Discounted cash flow	Discount rate	12.0	%	12.3	%
						Prepayment rate	17.1	%	16.5	%
Residential mortgage servicing rights	11,059		13,565		Discounted cash flow	Discount rate	10.0	%	10.0	%
						Prepayment rate	19.3	%	14.1	%
Corporate bonds	—		998		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	7,361		1,970		Internal model	Pull through rate	80.5	%	83.6	%
Derivative assets - other	—		5,268		Dealer priced	Dealer priced	N/A		N/A
Derivative liabilities - risk participations	28		12		Internal model	Probable exposure rate	0.15	%	0.36	%
						Probability of default rate	1.80	%	1.80	%
Derivative liabilities - other	2,689		8,547		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 March 31, 2020 and December 31, 2019, for which a nonrecurring fair value adjustment was recorded during the year-to-date periods presented (in thousands).

	Level 1		Level 2		Level 3		Total
March 31, 2020
Loans	$	—	$	—	$	3,909	$	3,909
December 31, 2019
Loans	$	—	$	—	$	20,977	$	20,977

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

The carrying amount and fair values as of the dates indicated for other financial instruments that are not measured at fair value on a recurring basis are as follows (in thousands).

			Fair Value Level
	Carrying Amount		Level 1		Level 2		Level 3		Total
March 31, 2020
Assets:
Securities held-to-maturity	$	290,404	$	—	$	301,595	$	—	$	301,595
Loans and leases, net	8,853,519		—		—		8,690,538		8,690,538
Liabilities:
Deposits	11,034,926		—		11,037,183		—		11,037,183
Long-term debt	212,849		—		—		213,940		213,940
December 31, 2019
Assets:
Securities held-to-maturity	$	283,533	$	—	$	287,904	$	—	$	287,904
Loans and leases, net	8,750,464		—		—		8,714,592		8,714,592
Liabilities:
Deposits	10,897,244		—		10,897,465		—		10,897,465
Long-term debt	212,664		—		—		217,665		217,665