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Derivative Financial Instruments
 12 Months Ended
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.