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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | NOTE R—DERIVATIVE FINANCIAL INSTRUMENTS United uses derivative instruments to help aid against adverse price changes or interest rate movements on the value of certain assets or liabilities and on future cash flows. These derivatives may consist of interest rate swaps, caps, floors, collars, futures, forward contracts, written and purchased options. United also executes derivative instruments with its commercial banking customers to facilitate its risk management strategies. During 2020, United entered into two interest rate swap derivatives designated as cash flow hedges. The notional amount of these cash flow hedge derivatives totaled $500,000,000. The derivatives are intended to hedge the changes in cash flows associated with floating rate FHLB borrowings. One of these two interest rate swap derivatives matured during the third quarter of 2024. As of December 31, 2025, United has determined that no forecasted transactions related to its cash flow hedge resulted in gains or losses pertaining to cash flow hedge reclassification from AOCI to income because the forecasted transactions became probable of not occurring. United estimates that $ 7,378,000 will be reclassified from AOCI as a decrease to interest expense over the next 12-months following December 31, 2025 related to the cash flow hedge. As of December 31, 2025, the maximum length of time over which forecasted transactions are hedged is five years. United is subject to the Dodd-Frank Act clearing requirement for eligible derivatives. United has executed and cleared eligible derivatives through the London Clearing House (“LCH”). Variation margin at the LCH is distinguished as settled-to-market and settled daily based on the prior day value, rather than collateralized-to-market. The daily settlement of the derivative exposure does not change or reset the contractual terms of the instrument. The total notional amount of interest rate swap derivatives designated as cash flow hedges cleared through the LCH include $250,000,000 for asset derivatives as of December 31, 2025. Balances related to LCH are presented as a single unit of account with the fair value of the designated cash flow interest rate swap asset being reduced by variation margin posted by (with) the applicable counterparty and reported in the following table on a net basis. The related fair value on a net basis approximates zero. The following tables disclose the derivative instruments’ location on the Company’s Consolidated Balance Sheets and the notional amount and fair value of those instruments at December 31, 2025 and December 31, 2024.
|  | Asset Derivatives |
|  | December 31, 2025 |  |  | December 31, 2024 |
(In thousands) |  | Balance Sheet Location |  |  | Notional Amount |  |  | Fair Value |  |  | Balance Sheet Location |  |  | Notional Amount |  |  | Fair Value |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair Value Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts (hedging commercial loans) |  |  | Other assets |  |  | $ | 9,466 |  |  | $ | 316 |  |  |  | Other assets |  |  | $ | 10,770 |  |  | $ | 644 |
Total Fair Value Hedges |  |  |  |  |  | $ | 9,466 |  |  | $ | 316 |  |  |  |  |  |  | $ | 10,770 |  |  | $ | 644 |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts (hedging FHLB borrowings) |  |  | Other assets |  |  | $ | 250,000 |  |  | $ | 0 |  |  |  | Other assets |  |  | $ | 250,000 |  |  | $ | 0 |
Total Cash Flow Hedges |  |  |  |  |  | $ | 250,000 |  |  | $ | 0 |  |  |  |  |  |  | $ | 250,000 |  |  | $ | 0 |
Total derivatives designated as hedging instruments |  |  |  |  |  | $ | 259,466 |  |  | $ | 316 |  |  |  |  |  |  | $ | 260,770 |  |  | $ | 644 |
|  | Asset Derivatives |
|  | December 31, 2025 |  |  | December 31, 2024 |
(In thousands) |  | Balance Sheet Location |  |  | Notional Amount |  |  | Fair Value |  |  | Balance Sheet Location |  |  | Notional Amount |  |  | Fair Value |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward loan sales commitments |  |  | Other assets |  |  | $ | 3,981 |  |  | $ | 15 |  |  |  | Other assets |  |  | $ | 0 |  |  | $ | 0 |
TBA mortgage-backed securities |  |  | Other assets |  |  |  | 0 |  |  |  | 0 |  |  |  | Other assets |  |  |  | 54,826 |  |  |  | 278 |
Interest rate lock commitments |  |  | Other assets |  |  |  | 23,046 |  |  |  | 458 |  |  |  | Other assets |  |  |  | 21,553 |  |  |  | 339 |
Total derivatives not designated as hedging instruments |  |  |  |  |  | $ | 27,027 |  |  | $ | 473 |  |  |  |  |  |  | $ | 76,379 |  |  | $ | 617 |
Total asset derivatives |  |  |  |  |  | $ | 286,493 |  |  | $ | 789 |  |  |  |  |  |  | $ | 337,149 |  |  | $ | 1,261 |
|  | Liability Derivatives |
|  | December 31, 2025 |  |  | December 31, 2024 |
(In thousands) |  | Balance Sheet Location |  |  | Notional Amount |  |  | Fair Value |  |  | Balance Sheet Location |  |  | Notional Amount |  |  | Fair Value |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TBA mortgage-backed securities |  |  | Other liabilities |  |  | $ | 33,882 |  |  | $ | 70 |  |  |  | Other liabilities |  |  | $ | 0 |  |  | $ | 0 |
Forward loan sales commitments |  |  | Other liabilities |  |  |  | 0 |  |  |  | 0 |  |  |  | Other liabilities |  |  |  | 3,186 |  |  |  | 20 |
Total derivatives not designated as hedging instruments |  |  |  |  |  | $ | 33,882 |  |  | $ | 70 |  |  |  |  |  |  | $ | 3,186 |  |  | $ | 20 |
Total liability derivatives |  |  |  |  |  | $ | 33,882 |  |  | $ | 70 |  |  |  |  |  |  | $ | 3,186 |  |  | $ | 20 |
The following table represents the carrying amount of the hedged assets/(liabilities) and the cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/(liabilities) that are designated as a fair value accounting relationship as of December 31, 2025 and December 31, 2024.
|  |  |  | December 31, 2025 |
(In thousands) Derivatives in Fair Value Hedging Relationships |  | Location in the Statement of Condition |  | Carrying Amount of the Hedged Assets/ (Liabilities) |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) |  |  | Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/ (Liabilities) for which Hedge Accounting has been Discontinued |
Interest rate swaps |  | Loans, net of unearned income |  | $ 9,466 |  | $ | (331) |  |  | $ | 0 |
|  |  |  | December 31, 2024 |
(In thousands) Derivatives in Fair Value Hedging Relationships |  | Location in the Statement of Condition |  | Carrying Amount of the Hedged Assets/(Liabilities) |  |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) |  |  | Cumulative Amount of Fair Value Hedging Adjustment Remaining for any Hedged Assets/ (Liabilities) for which Hedge Accounting has been Discontinued |
Interest rate swaps |  | Loans, net of unearned income |  | $ | 10,770 |  |  | $ | (657) |  |  | $ | 0 |
Derivative contracts involve the risk of dealing with both bank customers and institutional derivative counterparties and their ability to meet contractual terms. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. United’s exposure is limited to the replacement value of the contracts rather than the notional amount of the contract. The Company’s agreements generally contain provisions that limit the unsecured exposure up to an agreed upon threshold. Additionally, the Company attempts to minimize credit risk through certain approval processes established by management. The effect of United’s derivative financial instruments on its Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023 is presented as follows:
|  |  |  | Year Ended |
(In thousands) |  | Income Statement Location |  | December 31, 2025 |  |  | December 31, 2024 |  |  | December 31, 2023 |
Derivatives in hedging relationships Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | Interest on long-term borrowings (1) |  | $ | 9,718 |  |  | $ | 20,932 |  |  | $ | 23,574 |
Fair Value Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | Interest and fees on loans and leases |  | $ | (2 | ) |  | $ | 8 |  |  | $ | 117 |
Total derivatives in hedging relationships |  |  |  | $ | 9,716 |  |  | $ | 20,940 |  |  | $ | 23,691 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward loan sales commitments |  | Income from Mortgage Banking Activities |  |  | 35 |  |  |  | (114 | ) |  |  | (127 | )
TBA mortgage-backed securities |  | Income from Mortgage Banking Activities |  |  | (348 | ) |  |  | 956 |  |  |  | (611 | )
Interest rate lock commitments |  | Income from Mortgage Banking Activities |  |  | (11 | ) |  |  | (489 | ) |  |  | (240 | )
Total derivatives not designated as hedging instruments |  | $ | (324 | ) |  | $ | 353 |  |  | $ | (978 | )
Total derivatives |  | $ | 9,392 |  |  | $ | 21,293 |  |  | $ | 22,713 |
(1) | Decreases or increases in interest expense are expressed as positive or negative amounts, respectively, based on their impact to net income.
For the years ended December 31, 2025, 2024 and 2023, changes in the fair value of any interest rate swaps attributed to hedge ineffectiveness were recorded, but were not significant to United’s Consolidated Statements of Income.

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