XML 46 R35.htm IDEA: XBRL DOCUMENT v3.20.2
Assets and Liabilities Measured at Fair Value (Tables)
 9 Months Ended
Sep. 30, 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).
September 30, 2020Level 1Level 2Level 3Total
Assets:    
Debt securities available-for-sale:    
U.S. Treasuries$128,534 $— $— $128,534 
U.S. Government agencies— 51,745 — 51,745 
State and political subdivisions— 259,176 — 259,176 
Residential mortgage-backed securities— 1,299,804 — 1,299,804 
Commercial mortgage-backed securities— 394,517 — 394,517 
Corporate bonds— 97,520 1,750 99,270 
Asset-backed securities— 457,402 — 457,402 
Equity securities with readily available fair values573 830 — 1,403 
Mortgage loans held for sale— 128,587 — 128,587 
Deferred compensation plan assets9,001 — — 9,001 
Servicing rights for SBA/USDA loans— — 6,761 6,761 
Residential mortgage servicing rights— — 14,367 14,367 
Derivative financial instruments— 90,590 12,798 103,388 
Total assets$138,108 $2,780,171 $35,676 $2,953,955 
Liabilities:
Deferred compensation plan liability$9,007 $— $— $9,007 
Derivative financial instruments— 31,037 2,482 33,519 
Total liabilities$9,007 $31,037 $2,482 $42,526 
December 31, 2019Level 1Level 2Level 3Total
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 values1,973 — — 1,973 
Mortgage loans held for sale— 58,484 — 58,484 
Deferred compensation plan assets8,133 — — 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).
20202019
Derivative AssetsDerivative LiabilitiesServicing rights for SBA/USDA loansResidential mortgage servicing rightsDebt Securities Available-for-SaleDerivative
Assets		Derivative
Liabilities		Servicing rights for SBA/USDA loansResidential mortgage servicing rightsDebt Securities Available-for-Sale
Three Months Ended September 30,        
Balance at beginning of period$12,107 $2,569 $6,034 $12,492 $1,000 $7,744 $9,012 $7,380 $10,679 $995 
Additions99 — 296 3,055 750 — — 486 1,789 — 
Sales and settlements— — (100)(723)— — — (286)(416)— 
Other comprehensive income— — — — — — — — — 3 
Amounts included in earnings - fair value adjustments592 (87)531 (457)— (1,501)(2,299)(334)(963)— 
Balance at end of period$12,798 $2,482 $6,761 $14,367 $1,750 $6,243 $6,713 $7,246 $11,089 $998 
Nine Months Ended September 30,
Balance at beginning of period$7,238 $8,559 $6,794 $13,565 $998 $11,841 $15,732 $7,510 $11,877 $995 
Additions106 — 694 8,387 1,750 — — 1,266 3,880 — 
Transfers into Level 3583 — — — — — — — — — 
Sales and settlements— — (441)(1,898)(1,000)(1,135)(2,330)(837)(719)— 
Other comprehensive income— — — — 2 — — — — 3 
Amounts included in earnings - fair value adjustments4,871 (6,077)(286)(5,687)— (4,463)(6,689)(693)(3,949)— 
Balance at end of period$12,798 $2,482 $6,761 $14,367 $1,750 $6,243 $6,713 $7,246 $11,089 $998 
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. 
   Weighted Average
Level 3 Assets and LiabilitiesValuation Technique September 30,
2020		December 31, 2019
Unobservable Inputs
Servicing rights for SBA/USDA loansDiscounted cash flowDiscount rate7.6 %12.3 %
Prepayment rate18.2 %16.5 %
Residential mortgage servicing rightsDiscounted cash flowDiscount rate10.0 %10.0 %
Prepayment rate18.7 %14.1 %
Corporate bondsIndicative bid provided by a brokerMultiple factors, including but not limited to, current operations, financial condition, cash flows, and similar financing transactions executed in the marketN/AN/A
Derivative assets - customer derivative positionsInternal modelProbability of default rate53.7 %N/A
Loss given default rate100 %N/A
Derivative assets - mortgageInternal modelPull through rate83.2 %83.6 %
Derivative assets and liabilities - otherDealer pricedDealer pricedN/AN/A
Derivative assets & liabilities - risk participationsInternal modelProbable exposure rate1.05 %0.36 %
Probability of default rate1.88 %1.80 %
Schedule of loans held for sale at fair value under the fair value option The following tables present the fair value and outstanding principal balance of these loans, as well as the gain or loss recognized resulting from the change in fair value for the periods indicated (in thousands).
Mortgage Loans Held for Sale
September 30, 2020December 31, 2019
Outstanding principal balance$121,687 $56,613 
Fair value128,587 58,484 
Amount of Gain (Loss) Recognized on
Mortgage Loans Held for Sale
LocationThree Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
 Mortgage loan gains and other related fees$1,758 $(2)$5,029 $873 
Schedule of presentation of assets measured at fair value on nonrecurring basis The following table presents the fair value hierarchy and carrying value of all assets that were still held as of September 30, 2020 and December 31, 2019, for which a nonrecurring fair value adjustment was recorded during the year-to-date periods presented (in thousands).
 Level 1Level 2Level 3Total
September 30, 2020    
Loans$— $— $16,350 $16,350 
December 31, 2019
Loans$— $— $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 AmountLevel 1Level 2Level 3Total
September 30, 2020     
Assets:     
Securities held-to-maturity$398,373 $— $413,820 $— $413,820 
Loans and leases, net11,664,654 — — 11,651,643 11,651,643 
Liabilities:
Deposits14,603,376 — 14,604,902 — 14,604,902 
Long-term debt326,703 — — 332,869 332,869 
December 31, 2019
Assets:
Securities held-to-maturity$283,533 $— $287,904 $— $287,904 
Loans and leases, net8,750,464 — — 8,714,592 8,714,592 
Liabilities:
Deposits10,897,244 — 10,897,465 — 10,897,465 
Long-term debt212,664 — — 217,665 217,665