Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2025

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, aggregated by the level in the fair value hierarchy within which those measurements fall:


(in thousands)
December 31, 2025	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	493,755	$	—	$	—	$	493,755
U.S. Government agencies & GSEs	—		298,350		—		298,350
State and political subdivisions	—		154,883		—		154,883
Residential MBS	—		1,690,332		—		1,690,332
Commercial MBS	—		692,087		—		692,087
Corporate bonds	—		136,176		492		136,668
Asset-backed securities	—		284,788		—		284,788
Equity securities with readily determinable fair values	—		2,481		—		2,481
Mortgage loans held for sale	—		39,381		—		39,381
Mutual funds and other investments	16,343		140		—		16,483
Servicing rights for SBA/USDA loans	—		—		4,880		4,880
Residential mortgage servicing rights	—		—		41,231		41,231
Contingent consideration receivable	—		—		7,195		7,195
Derivative financial instruments	—		27,231		8,082		35,313
Total assets	$	510,098	$	3,325,849	$	61,880	$	3,897,827

Liabilities:
Deferred compensation plan liability	$	16,345	$	140	$	—	$	16,485
Derivative financial instruments	—		44,507		8,490		52,997
Total liabilities	$	16,345	$	44,647	$	8,490	$	69,482


(in thousands)
December 31, 2024	Level 1		Level 2		Level 3		Total
Assets:
AFS debt securities:
U.S. Treasuries	$	503,669	$	—	$	—	$	503,669
U.S. Government agencies & GSEs	—		320,267		—		320,267
State and political subdivisions	—		158,232		—		158,232
Residential MBS	—		2,229,959		—		2,229,959
Commercial MBS	—		822,897		—		822,897
Corporate bonds	—		150,394		2,226		152,620
Asset-backed securities	—		248,647		—		248,647
Equity securities with readily determinable fair values	—		2,341		—		2,341
Mortgage loans held for sale	—		57,534		—		57,534
Mutual funds	15,335		—		—		15,335
Servicing rights for SBA/USDA loans	—		—		4,697		4,697
Residential mortgage servicing rights	—		—		39,294		39,294
Contingent consideration receivable	—		—		7,470		7,470
Derivative financial instruments	—		35,227		11,656		46,883
Total assets	$	519,004	$	4,025,498	$	65,343	$	4,609,845

Liabilities:
Deferred compensation plan liability	$	15,331	$	—	$	—	$	15,331
Derivative financial instruments	—		65,548		12,286		77,834
Total liabilities	$	15,331	$	65,548	$	12,286	$	93,165

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 all other assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values:


(in thousands)	Derivative Asset		Derivative Liability		Corporate Bonds		Contingent consideration receivable
December 31, 2022	$	11,513	$	12,840	$	2,212	$	—


Additions	—		241		—		—
Sales and settlements	(11)		—		—		—
Fair value adjustments included in OCI	—		—		(7)		—
Fair value adjustments included in earnings	(860)		(1,909)		—		—
December 31, 2023	10,642		11,172		2,205		—
Transfers from Level 3 (1)	—		(16)		—
Transfers from Level 2 (1)	484		925		—		—
Additions	4,819		58		—		7,623
Sales and settlements	(5,834)		(393)		—		(153)
Fair value adjustments included in OCI	—		—		21		—
Fair value adjustments included in earnings	1,545		540		—		—
December 31, 2024	11,656		12,286		2,226		7,470



Additions	5,423		321		—		—
Sales and settlements	(5,219)		—		(1,750)		(283)
Fair value adjustments included in OCI	—		—		16		—
Fair value adjustments included in earnings	(3,778)		(4,117)		—		8
December 31, 2025	$	8,082	$	8,490	$	492	$	7,195

(1) Certain derivative assets were transferred between Level 2 and Level 3 of the fair value hierarchy due to a change in the availability of an observable forward-rate curve for the duration of the contract.

Schedule of Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs


(in thousands)	Derivative Asset		Derivative Liability		Corporate Bonds		Contingent consideration receivable
December 31, 2022	$	11,513	$	12,840	$	2,212	$	—


Additions	—		241		—		—
Sales and settlements	(11)		—		—		—
Fair value adjustments included in OCI	—		—		(7)		—
Fair value adjustments included in earnings	(860)		(1,909)		—		—
December 31, 2023	10,642		11,172		2,205		—
Transfers from Level 3 (1)	—		(16)		—
Transfers from Level 2 (1)	484		925		—		—
Additions	4,819		58		—		7,623
Sales and settlements	(5,834)		(393)		—		(153)
Fair value adjustments included in OCI	—		—		21		—
Fair value adjustments included in earnings	1,545		540		—		—
December 31, 2024	11,656		12,286		2,226		7,470



Additions	5,423		321		—		—
Sales and settlements	(5,219)		—		(1,750)		(283)
Fair value adjustments included in OCI	—		—		16		—
Fair value adjustments included in earnings	(3,778)		(4,117)		—		8
December 31, 2025	$	8,082	$	8,490	$	492	$	7,195

Schedule of Quantitative Information About Level 3 Fair Value Measurements for Fair Value on a Recurring Basis

The following table presents quantitative information about significant unobservable inputs related to United’s material categories of Level 3 assets and liabilities, excluding servicing rights which are detailed in Note 10:

Level 3 Assets and Liabilities

Valuation Technique

December 31,

Significant Unobservable Inputs

2025

2024

Range

Weighted Average

Range

Weighted Average

Derivative assets - mortgage

Internal model

Pull through rate

60.0% - 100%

91.6%

70.4% - 100%

91.6%

Derivative assets & liabilities - other

Dealer priced

N/A

Contingent consideration receivable

Discounted cash flow

Discount rate

6.7 - 6.7

6.7

0.0-7.1

6.4

Probability of achievement

82.6 - 100

88.2

89.3 - 100.0

92.6

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 loans accounted for under the fair value option, as well as the gain or loss recognized from the change in fair value for the periods indicated.


	Mortgage Loans Held for Sale
	December 31,
(in thousands)	2025		2024
Outstanding principal balance	$	38,187	$	56,097
Fair value	39,381		57,534


(in thousands)	Amount of Gain (Loss) Recognized on Mortgage Loans Held for Sale
Location	2025		2024		2023
Mortgage loan gains and other related fees	$	(243)	$	217	$	900

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 December 31, 2025 and 2024, for which a nonrecurring fair value adjustment was recorded during the periods presented.


(in thousands)
December 31, 2025	Level 1		Level 2		Level 3		Total
Loans held for investment	$	—	$	—	$	19,216	$	19,216


December 31, 2024
Loans held for investment	$	—	$	—	$	27,313	$	27,313

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 for other financial instruments that are not measured at fair value on a recurring basis in United’s consolidated balance sheets are as follows:


(in thousands)	Carrying Amount		Fair Value Level
December 31, 2025			Level 1		Level 2		Level 3		Total
Assets:
HTM debt securities	$	2,237,356	$	19,039	$	1,899,387	$	—	$	1,918,426
Loans, net	19,173,888		—		—		18,651,481		18,651,481

Liabilities:
Deposits	23,798,430		—		23,790,107		—		23,790,107

Long-term debt	120,400		—		—		120,279		120,279

December 31, 2024
Assets:
HTM debt securities	$	2,368,107	$	18,162	$	1,925,964	$	—	$	1,944,126
Loans, net	17,968,982		—		—		17,325,630		17,325,630

Liabilities:
Deposits	23,460,975		—		23,453,487		—		23,453,487
Long-term debt	254,152		—		—		248,657		248,657

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

UNITED COMMUNITY BANKS INC 10-K