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Investment Securities

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

NOTE C--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.


	December 31, 2025
			Gross		Gross		Allowance		Estimated
(Dollars in thousands)	Amortized		Unrealized		Unrealized		For Credit		Fair
	Cost		Gains		Losses		Losses		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


	December 31, 2024
(Dollars in thousands)	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	$	248,867	$	59	$	3,084	$	0	$	245,842
State and political subdivisions		574,580		8		79,515		0		495,073
Residential mortgage-backed securities Agency		1,226,400		433		167,114		0		1,059,719
Non-agency		88,392		262		6,531		0		82,123
Commercial mortgage-backed securities
Agency		372,646		38		42,698		0		329,986
Asset-backed securities		476,863		166		2,047		0		474,982
Single issue trust preferred securities		13,296		0		1,377		0		11,919
Other corporate securities		281,646		0		21,571		0		260,075

Total	$	3,282,690	$	966	$	323,937	$	0	$	2,959,719

For the adoption of ASC Topic 326, “Financial Instruments—Credit Losses,” 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 $12,717,000 and $14,776,000 at December 31, 2025 and December 31, 2024, 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 December 31, 2025 and December 31, 2024.


	Less than 12 months				12 months or longer				Total

	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	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


	Less than 12 months				12 months or longer				Total

	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses

December 31, 2024
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	1,476	$	3	$	42,886	$	3,081	$	44,362	$	3,084
State and political subdivisions		3,314		22		479,681		79,493		482,995		79,515
Residential mortgage-backed securities
Agency		128,655		1,660		856,448		165,454		985,103		167,114
Non-agency		0		0		59,668		6,531		59,668		6,531
Commercial mortgage-backed securities
Agency		0		0		319,506		42,698		319,506		42,698
Asset-backed securities		83,188		50		215,886		1,997		299,074		2,047
Single issue trust preferred securities		0		0		11,919		1,377		11,919		1,377
Other corporate securities		2,476		24		252,634		21,547		255,110		21,571

Total	$	219,109	$	1,759	$	2,238,628	$	322,178	$	2,457,737	$	323,937

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


	Year Ended
(In thousands)	2025		2024		2023
Proceeds from maturities, sales and calls	$	2,260,860	$	2,914,095	$	952,213
Gross realized gains		0		0		0
Gross realized losses		0		16,296		7,659

At December 31, 2025, gross unrealized losses on available for sale securities were $216,639,000 on 864 securities of a total portfolio of 1,045 available for sale securities. Securities with the most significant gross unrealized losses at December 31, 2025 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 December 31, 2025 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 $572,217,000 at December 31, 2025. As of December 31, 2025, 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 December 31, 2025. 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 December 31, 2025.

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 $133,811,000 on

mortgage-backed

securities at December 31, 2025. 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 $1,883,613,000 at December 31, 2025. Of the $1,883,613,000 amount, $416,177,000 was related to agency commercial mortgage-backed securities and $1,467,436,000 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 December 31, 2025.

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 $42,792,000 at December 31, 2025. Of the $42,792,000, 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 December 31, 2025.

Asset-backed securities

As of December 31, 2025, United’s asset-backed securities portfolio had a total amortized cost balance of $225,617,000. 99% of the portfolio was investment grade rated as of December 31, 2025. Approximately 64% 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 36% of the portfolio relates to collateralized loan obligation securities that are all AAA rated. Upon reviewing this portfolio as of December 31, 2025, 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 December 31, 2025 consisted of $7,489,000 in investment grade bonds and $5,830,000 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 fourth quarter of 2025, it was determined that none of the single issue trust preferred securities had credit losses.

Corporate securities

As of December 31, 2025, United’s other corporate securities portfolio had a total amortized cost balance of $244,244,000. The majority of the portfolio consisted of debt issuances of corporations representing a variety of industries, including financial institutions. Of the $244,244,000, 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 December 31, 2025.

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

Maturities of mortgage-backed securities with an amortized cost of $1,926,405,000 and an estimated fair value of $1,792,594,000 at December 31, 2025 are included below based upon contractual maturity.


(In thousands)	Amortized Cost		Estimated Fair Value


Due in one year or less	$	298,573	$	298,193
Due after one year through five years		527,383		494,204
Due after five years through ten years		559,647		521,011
Due after ten years		1,879,257		1,746,044

Total	$	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 $34,760,000 at December 31, 2025 and $21,058,000 at December 31, 2024.


	Year Ended
(In thousands)	December 31, 2025			December 31, 2024
Net gains recognized during the period on equity securities sold	$	0		$	4,602
Unrealized gains recognized during the period on equity securities still held at period end		11,445			4,259
Unrealized losses recognized during the period on equity securities still held at period end		(275	)		(285	)

Net gains recognized during the period	$	11,170		$	8,576

Other investment securities

During the fourth quarter of 2025, United evaluated all of its cost method investments to determine if certain events or changes in circumstances during the fourth quarter of 2025 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 fourth quarter. There were no other events or changes in circumstances during the fourth 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 $2,102,175,000 and $2,038,864,000 at December 31, 2025 and December 31, 2024, respectively.