Investment Securities

6 Months Ended

Jun. 30, 2026

Investments, Debt and Equity Securities [Abstract]

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 and estimated fair values of securities available for sale are summarized as follows.


	June 30, 2026
	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	$	281,141	$	48	$	1,398	$	0	$	279,791
State and political subdivisions		564,691		431		55,882		0		509,240
Residential mortgage-backed securities
Agency		1,915,333		2,223		127,368		0		1,790,188
Non-agency		41,938		470		4,060		0		38,348
Commercial mortgage-backed securities
Agency		327,174		3,308		17,722		0		312,760
Asset-backed securities		175,611		37		2,121		0		173,527
Single issue trust preferred securities		13,330		0		372		0		12,958
Other corporate securities		212,504		0		9,566		0		202,938

Total	$	3,531,722	$	6,517	$	218,489	$	0	$	3,319,750


	December 31, 2025
	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	$	283,058	$	75	$	1,476	$	0	$	281,657
State and political subdivisions		572,217		343		55,634		0		516,926
Residential mortgage-backed securities
Agency		1,467,436		5,517		114,317		0		1,358,636
Non-agency		42,792		330		4,237		0		38,885
Commercial mortgage-backed securities
Agency		416,177		4,948		26,052		0		395,073
Asset-backed securities		225,617		18		2,381		0		223,254
Single issue trust preferred securities		13,319		0		661		0		12,658
Other corporate securities		244,244		0		11,881		0		232,363

Total	$	3,264,860	$	11,231	$	216,639	$	0	$	3,059,452

For the adoption of ASC Topic 326, United made a policy election to exclude accrued interest from the amortized cost basis of

available-for-sale

debt securities and report accrued interest separately in “Accrued interest receivable” in the consolidated balance sheets.

Available-for-sale

debt securities are placed on

non-accrual

status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on

non-accrual

status. Accordingly, United does not currently recognize an allowance for credit loss against accrued interest receivable on

available-for-sale

debt securities. The table above excludes accrued interest receivable of $13,608 and $12,717 at June 30, 2026 and December 31, 2025, respectively, that is recorded in “Accrued interest receivable.”

The following is a summary of securities available for sale which were in an unrealized loss position at June 30, 2026 and December 31, 2025.


	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
June 30, 2026
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	396	$	1	$	30,034	$	1,397	$	30,430	$	1,398
State and political subdivisions		10,055		930		474,897		54,952		484,952		55,882
Residential mortgage-backed securities
Agency		732,079		10,361		728,665		117,007		1,460,744		127,368
Non-agency		0		0		21,302		4,060		21,302		4,060
Commercial mortgage-backed securities
Agency		4,327		38		217,727		17,684		222,054		17,722
Asset-backed securities		28,506		40		130,309		2,081		158,815		2,121
Single issue trust preferred securities		0		0		12,958		372		12,958		372
Other corporate securities		5,967		29		192,456		9,537		198,423		9,566

Total	$	781,330	$	11,399	$	1,808,348	$	207,090	$	2,589,678	$	218,489


	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
December 31, 2025
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	133	$	1	$	31,485	$	1,475	$	31,618	$	1,476
State and political subdivisions		6,177		543		483,564		55,091		489,741		55,634
Residential mortgage-backed securities
Agency		109,848		270		795,183		114,047		905,031		114,317
Non-agency		0		0		21,189		4,237		21,189		4,237
Commercial mortgage-backed securities
Agency		6,287		4		293,038		26,048		299,325		26,052
Asset-backed securities		50,181		154		136,940		2,227		187,121		2,381
Single issue trust preferred securities		0		0		12,658		661		12,658		661
Other corporate securities		0		0		224,942		11,881		224,942		11,881

Total	$	172,626	$	972	$	1,998,999	$	215,667	$	2,171,625	$	216,639

The following table shows the proceeds from maturities, sales and calls

available for sale securities and the gross realized gains and losses on sales and calls of those securities that have been included in earnings as a result of any sales and calls. Gains or losses on sales and calls of available for sale securities were recognized by the specific identification method.


	Three Months Ended June 30				Six Months Ended June 30
	2026		2025		2026		2025
Proceeds from sales, calls and maturities	$	447,168	$	331,825	$	797,573	$	918,062
Gross realized gains		0		0		0		0
Gross realized losses		9,728		0		9,728		0

At June 30, 2026, gross unrealized losses on available for sale securities were $218,489 on 878 securities of a total portfolio of 1,034 available for sale securities. Securities with the most significant gross unrealized losses at June 30, 2026 consisted primarily of agency residential mortgage-backed securities, state and political subdivision securities, agency commercial mortgage-backed securities and other corporate securities.

In determining whether or not a security is impaired, management considered the severity of the loss in conjunction with United’s positive intent and the more likely than not ability to hold these securities to recovery of their cost basis or maturity. Generally, the significant amount of gross unrealized losses on available for sale securities at June 30, 2026 was the result of rising interest rates.

State and political subdivisions

United’s state and political subdivisions portfolio relates to securities issued by various municipalities located throughout the United States. The total amortized cost of available for sale state and political subdivision securities was $564,691 at June 30, 2026. As of June 30, 2026, approximately 46% of the portfolio was supported by the general obligation of the issuing municipality, which allows for the securities to be repaid by any means available to the municipality. The majority of the portfolio was rated AA or higher, and no securities within the portfolio were rated below investment grade as of June 30, 2026. In addition to monitoring the credit ratings of these securities, management also evaluates the financial performance of the underlying issuers on an ongoing basis. Based upon management’s analysis and judgment, it was determined that none of the state and political subdivision securities had credit losses at June 30, 2026.

Mortgage-backed securities

The fair value of

mortgage-backed

securities is affected by changes in interest rates and prepayment speeds. When interest rates decline, prepayment speeds generally accelerate due to homeowners refinancing their mortgages at lower interest rates. This may result in the proceeds being reinvested at lower interest rates. Rising interest rates may decrease the assumed prepayment speed. Slower prepayment speeds may extend the maturity of the security beyond its estimated maturity. Therefore, investors may not be able to invest at current higher market rates due to the extended expected maturity of the security. United had a net unrealized loss of $143,149 on

mortgage-backed

securities at June 30, 2026. Below is a detailed discussion of mortgage-backed securities by type.

United’s agency mortgage-backed securities portfolio relates to securities issued by Fannie Mae, Freddie Mac, and Ginnie Mae. The total amortized cost of available for sale agency mortgage-backed securities was $2,242,507 at June 30, 2026. Of the $2,242,507 amount, $327,174 was related to agency commercial mortgage-backed securities and $1,915,333 was related to agency residential mortgage-backed securities. Each of the agency mortgage-backed securities provides a guarantee of full and timely payments of principal and interest by the issuing agency. Based upon management’s analysis and judgment, it was determined that none of the agency mortgage-backed securities had credit losses at June 30, 2026.

United’s

non-agency

residential mortgage-backed securities portfolio relates to securities of various private label issuers. The total amortized cost of available for sale

non-agency

residential mortgage-backed securities was $41,938 at June 30, 2026. Of the $

41,938

, 100% was rated AAA. Based upon management’s analysis and judgment, it was determined that none of the

non-agency

residential mortgage-backed securities had credit losses at June 30, 2026.

Asset-backed securities

As of June 30, 2026, United’s asset-backed securities portfolio had a total amortized cost balance of $175,611. 100% of the portfolio had at least one rating above investment grade as of June 30, 2026. Approximately 77% of the portfolio relates to securities that are backed by Federal Family Education Loan Program (“FFELP”) student loan collateral which includes a minimum of a 97% government repayment guaranty, as well as additional credit support and subordination in excess of the government guaranteed portion. Approximately 23% of the portfolio relates to collateralized loan obligation securities that are all AAA rated. Upon reviewing this portfolio as of June 30, 2026, it was determined that none of the asset-backed securities had credit losses.

Single issue trust preferred securities

The majority of United’s single issue trust preferred portfolio consists of obligations from large cap banks (i.e. banks with market capitalization in excess of $10 billion). All single issue trust preferred securities are currently receiving interest payments. The amortized cost of available for sale single issue trust preferred securities as of June 30, 2026 consisted of $7,492 in investment grade bonds and $5,838 in unrated bonds. Management reviews each issuer’s current and projected earnings trends, asset quality, capitalization levels, and other key factors. Upon completing the review for the second quarter of 2026, it was determined that none of the single issue trust preferred securities had credit losses.

Other corporate securities

As of June 30, 2026, United’s other corporate securities portfolio had a total amortized cost balance of $212,504. The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions. Of the $212,504, 95% had at least one rating above investment grade, 2% were below investment grade rated, and 3% were unrated. For other corporate securities, management has evaluated the near-term prospects of the investment in relation to the severity of any unrealized loss. Based upon management’s analysis and judgment, it was determined that none of the other corporate securities had credit losses at June 30, 2026.

The amortized cost and estimated fair value of securities available for sale at June 30, 2026 and December 31, 2025 by contractual maturity are shown as follows. Expected maturities may differ from contractual maturities because the issuers may have the right to call or prepay obligations without penalties.


	June 30, 2026				December 31, 2025
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	321,854	$	321,258	$	298,573	$	298,193
Due after one year through five years		453,898		423,859		527,383		494,204
Due after five years through ten years		512,196		477,054		559,647		521,011
Due after ten years		2,243,774		2,097,579		1,879,257		1,746,044

Total	$	3,531,722	$	3,319,750	$	3,264,860	$	3,059,452

Equity securities at fair value

Equity securities consist mainly of equity securities of financial institutions, mutual funds of Community Reinvestment Act (“CRA”) qualified investments and equity securities within a rabbi trust for the payment of benefits under a deferred compensation plan for certain key officers of United and its subsidiaries. The fair value of United’s equity securities was $30,107 at June 30, 2026 and $34,760 at December 31, 2025.


	Three Months Ended June 30					Six Months Ended June 30
	2026			2025		2026			2025
Net gains recognized during the period on equity securities sold	$	1,815		$	0	$	4,111		$	0
Unrealized gains recognized during the period on equity securities still held at period end		4,865			425		4,867			979
Unrealized losses recognized during the period on equity securities still held at period end		(23	)		0		(56	)		(33	)

Net gains recognized during the period	$	6,657		$	425	$	8,922		$	946

Other investment securities

During the second quarter of 2026, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the second quarter of 2026 had a significant adverse effect on the recorded value of any of its cost method securities. United determined that there was no individual security that experienced an adverse event during the second quarter. There were no other events or changes in circumstances during the second quarter which would have an adverse effect on the recorded fair value of its cost method securities.

The carrying value of securities pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes as required or permitted by law, approximated $2,063,626 and $2,102,175 at June 30, 2026 and December 31, 2025, respectively.