XML 24 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Securities
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
The amortized cost basis, unrealized gains and losses and fair value of debt securities held-to-maturity as of the dates indicated are as follows (in thousands).
Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesFair
Value
As of September 30, 2020    
U.S. Government agencies$10,616 $146 $— $10,762 
State and political subdivisions163,180 6,200 28 169,352 
Residential mortgage-backed securities, Agency125,011 5,149 — 130,160 
Commercial mortgage-backed, Agency99,566 4,104 124 103,546 
Total$398,373 $15,599 $152 $413,820 
As of December 31, 2019
State and political subdivisions$45,479 $1,574 $9 $47,044 
Residential mortgage-backed securities, Agency153,967 2,014 694 155,287 
Commercial mortgage-backed, Agency84,087 1,627 141 85,573 
Total$283,533 $5,215 $844 $287,904 

The cost basis, unrealized gains and losses, and fair value of debt securities available-for-sale as of the dates indicated are presented below (in thousands).
Amortized
Cost		Gross Unrealized
Gains		Gross Unrealized
Losses		Fair
Value
As of September 30, 2020    
U.S. Treasuries$123,534 $5,000 $— $128,534 
U.S. Government agencies51,312 491 58 51,745 
State and political subdivisions239,190 19,999 13 259,176 
Residential mortgage-backed securities, Agency1,038,637 31,772 276 1,070,133 
Residential mortgage-backed securities, Non-agency218,097 11,574 — 229,671 
Commercial mortgage-backed, Agency386,340 8,254 77 394,517 
Corporate bonds97,758 1,537 25 99,270 
Asset-backed securities458,741 509 1,848 457,402 
Total$2,613,609 $79,136 $2,297 $2,690,448 
As of December 31, 2019
U.S. Treasuries$152,990 $1,628 $— $154,618 
U.S. Government agencies2,848 188 1 3,035 
State and political subdivisions214,677 11,813 — 226,490 
Residential mortgage-backed securities, Agency1,030,948 12,022 726 1,042,244 
Residential mortgage-backed securities, Non-agency250,550 6,231 — 256,781 
Commercial mortgage-backed, Agency266,770 2,261 128 268,903 
Commercial mortgage-backed, Non-agency15,395 918 263 16,050 
Corporate bonds202,131 1,178 218 203,091 
Asset-backed securities104,298 743 1,672 103,369 
Total$2,240,607 $36,982 $3,008 $2,274,581 
 
Securities with a carrying value of $903 million and $918 million were pledged, primarily to secure public deposits, at September 30, 2020 and December 31, 2019, respectively.
 The following table summarizes debt securities held-to-maturity in an unrealized loss position as of the dates indicated (in thousands).
 Less than 12 Months12 Months or MoreTotal
Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss
As of September 30, 2020      
State and political subdivisions$4,972 $28 $— $— $4,972 $28 
Residential mortgage-backed securities, Agency124 — — — 124 — 
Commercial mortgage-backed, Agency3,462 124 — — 3,462 124 
Total unrealized loss position$8,558 $152 $— $— $8,558 $152 
As of December 31, 2019
State and political subdivisions$10,117 $9 $— $— $10,117 $9 
Residential mortgage-backed securities, Agency16,049 64 48,237 630 64,286 694 
Commercial mortgage-backed, Agency21,841 87 1,685 54 23,526 141 
Total unrealized loss position$48,007 $160 $49,922 $684 $97,929 $844 
 
The following table summarizes debt securities available-for-sale in an unrealized loss position as of the dates indicated (in thousands).
 Less than 12 Months12 Months or MoreTotal
Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss
As of September 30, 2020      
U.S. Government agencies$7,442 $58 $— $— $7,442 $58 
State and political subdivisions6,182 13 — — 6,182 13 
Residential mortgage-backed securities, Agency111,540 274 749 2 112,289 276 
Commercial mortgage-backed, Agency29,604 77 — — 29,604 77 
Corporate bonds4,653 25 — — 4,653 25 
Asset-backed securities110,018 266 58,305 1,582 168,323 1,848 
Total unrealized loss position$269,439 $713 $59,054 $1,584 $328,493 $2,297 
As of December 31, 2019
U.S. Government agencies$404 $1 $— $— $404 $1 
Residential mortgage-backed securities, Agency228,611 576 18,294 150 246,905 726 
Commercial mortgage-backed, Agency— — 33,517 128 33,517 128 
Commercial mortgage-backed, Non-agency— — 4,864 263 4,864 263 
Corporate bonds19,742 216 998 2 20,740 218 
Asset-backed securities32,294 625 38,990 1,047 71,284 1,672 
Total unrealized loss position$281,051 $1,418 $96,663 $1,590 $377,714 $3,008 
 
At September 30, 2020, there were 57 debt securities available-for-sale and four debt securities held-to-maturity that were in an unrealized loss position. United does not intend to sell nor does it believe it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at September 30, 2020 were primarily attributable to changes in interest rates.

No impairment charges were recognized during the three and nine months ended September 30, 2019. At adoption of CECL on January 1, 2020 and at September 30, 2020, calculated credit losses on held-to-maturity debt securities were not material due to the high credit quality of the portfolio, which included securities issued or guaranteed by U.S. Government agencies and high credit quality municipal securities. As a result, no ACL was recorded on the held-to-maturity portfolio at September 30, 2020. In addition, at September 30, 2020, there was no ACL related to the available-for-sale portfolio. See Note 1 for additional details on the adoption of CECL as it relates to the securities portfolio.
Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes available-for-sale securities sales activity for the three and nine months ended September 30, 2020 and 2019 (in thousands).
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2020201920202019
Proceeds from sales$39,365 $— $40,365 $225,883 
Gross gains on sales$746 $— $746 $1,776 
Gross losses on sales— — — (1,894)
Net gains (losses) on sales of securities$746 $— $746 $(118)
Income tax expense (benefit) attributable to sales$191 $— $191 $(30)

The amortized cost and fair value of debt securities available-for-sale and held-to-maturity at September 30, 2020, by contractual maturity, are presented in the following table (in thousands). Expected maturities may differ from contractual maturities because issuers and borrowers may have the right to call or prepay obligations. 
 Available-for-SaleHeld-to-Maturity
 Amortized CostFair ValueAmortized CostFair Value
U.S. Treasuries:    
1 to 5 years$123,534 $128,534 $— $— 
123,534 128,534 — — 
U.S. Government agencies:
1 to 5 years277 281 — — 
5 to 10 years26,263 26,561 — — 
More than 10 years24,772 24,903 10,616 10,762 
51,312 51,745 10,616 10,762 
State and political subdivisions:
Within 1 year20,029 20,368 200 206 
1 to 5 years39,638 42,296 13,509 14,722 
5 to 10 years51,119 55,609 9,557 10,942 
More than 10 years128,404 140,903 139,914 143,482 
239,190 259,176 163,180 169,352 
Corporate bonds:
Within 1 year37,498 37,759 — — 
1 to 5 years36,373 37,316 — — 
5 to 10 years20,111 20,380 — — 
More than 10 years3,776 3,815 — — 
97,758 99,270 — — 
Debt securities not due at a single maturity date:
Asset-backed securities458,741 457,402 — — 
Residential mortgage-backed securities1,256,734 1,299,804 125,011 130,160 
Commercial mortgage-backed securities386,340 394,517 99,566 103,546 
Total$2,613,609 $2,690,448 $398,373 $413,820