XBRL 0001193125-12-215378

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2012	Apr. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	UNITED COMMUNITY BANKS INC
Entity Central Index Key	0000857855
Document Type	10-Q
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		57,613,842

Consolidated Statement of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Interest revenue:
Loans, including fees	$ 55,759	$ 61,107
Investment securities, including tax exempt of $250 and $259	13,004	13,604
Federal funds sold, reverse repurchase agreements, commercial paper and deposits in banks	1,012	819
Total interest revenue	69,775	75,530
Deposits:
NOW	637	1,324
Money market	641	2,028
Savings	37	77
Time	6,159	11,732
Total deposit interest expense	7,474	15,161
Federal funds purchased, repurchase agreements and other short-term borrowings	1,045	1,042
Federal Home Loan Bank advances	466	590
Long-term debt	2,372	2,780
Total interest expense	11,357	19,573
Net interest revenue	58,418	55,957
Provision for loan losses	15,000	190,000
Net interest revenue after provision for loan losses	43,418	(134,043)
Fee revenue:
Service charges and fees	7,783	6,720
Mortgage loan and other related fees	2,099	1,494
Brokerage fees	813	677
Securities gains, net	557	55
Loss from prepayment of debt	(482)
Other	4,609	2,892
Total fee revenue	15,379	11,838
Total revenue	58,797	(122,205)
Operating expenses:
Salaries and employee benefits	25,225	24,924
Communications and equipment	3,155	3,344
Occupancy	3,771	4,074
Advertising and public relations	846	978
Postage, printing and supplies	979	1,118
Professional fees	1,975	3,330
Foreclosed property	3,825	64,899
FDIC assessments and other regulatory charges	2,510	5,413
Amortization of intangibles	732	762
Other	3,937	6,429
Total operating expenses	46,955	115,271
Net income (loss) before income taxes	11,842	(237,476)
Income tax expense (benefit)	314	(140)
Net income (loss)	11,528	(237,336)
Preferred stock dividends and discount accretion	3,030	2,778
Net income (loss) available to common shareholders	$ 8,498	$ (240,114)
Earnings (loss) per common share - Basic / Diluted	$ 0.15	$ (13.00)
Weighted average common shares outstanding - Basic / Diluted	57,764	18,466

Consolidated Statement of Operations (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Consolidated Statement of Operations [Abstract]
Investment securities, tax exemption	$ 250	$ 259

Consolidated Statement of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Consolidated Statement of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 11,528	$ (237,336)
Unrealized losses on available for sale securities:
Unrealized holding losses arising during period	(3,340)	(959)
Reclassification adjustment for gains included in net income	(557)	(55)
Amortization of gains included in net income (loss) on available for sale securities transferred to held to maturity	(413)	(663)
Amortization of gains included in net income (loss) on derivative financial instruments accounted for as cash flow hedges	(1,600)	(4,223)
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plans	154
Total other comprehensive (loss)	(5,756)	(5,900)
Comprehensive income (loss)	$ 5,772	$ (243,236)

Consolidated Balance Sheet - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
ASSETS
Cash and due from banks	$ 53,147	$ 53,807	$ 153,891
Interest-bearing deposits in banks	139,439	139,609	465,656
Federal funds sold, reverse repurchase agreements, commercial paper and short-term investments	235,000	185,000	470,087
Cash and cash equivalents	427,586	378,416	1,089,634
Securities available for sale	1,898,815	1,790,047	1,638,494
Securities held to maturity (fair value $318,490, $343,531 and $248,361)	303,636	330,203	245,430
Loans held for sale			80,629
Mortgage loans held for sale	24,809	23,881	25,364
Loans, net of unearned income	4,127,566	4,109,614	4,194,372
Less allowance for loan losses	113,601	114,468	133,121
Loans, net	4,013,965	3,995,146	4,061,251
Assets covered by loss sharing agreements with the FDIC	72,854	78,145	125,789
Premises and equipment, net	174,419	175,088	179,143
Bank owned life insurance	80,956	80,599	79,777
Accrued interest receivable	20,292	20,693	21,687
Intangible assets	7,695	8,428	10,684
Foreclosed property	31,887	32,859	54,378
Unsettled securities sales	43,527
Other assets	73,252	69,915	97,228
Total assets	7,173,693	6,983,420	7,709,488
Deposits:
Demand	1,101,757	992,109	864,708
NOW	1,389,016	1,509,896	1,320,136
Money market	1,123,734	1,038,778	967,938
Savings	214,150	199,007	193,591
Time:
Less than $100,000	1,207,479	1,332,394	1,576,505
Greater than $100,000	796,882	847,152	990,289
Brokered	167,521	178,647	684,581
Total deposits	6,000,539	6,097,983	6,597,748
Federal funds purchased, repurchase agreements, and other short-term borrowings	101,925	102,577	102,107
Federal Home Loan Bank advances	215,125	40,625	55,125
Long-term debt	120,245	120,225	150,166
Unsettled securities purchases	119,565	10,325	177,532
Accrued expenses and other liabilities	36,755	36,199	40,766
Total liabilities	6,594,154	6,407,934	7,123,444
Shareholders' equity:
Common stock	41,689	41,647	20,903
Common stock issuable; 90,126, 93,681 and 79,428 shares	2,948	3,233	3,681
Capital surplus	1,056,135	1,054,940	738,963
Accumulated deficit	(722,363)	(730,861)	(732,390)
Accumulated other comprehensive (loss) income	(9,065)	(3,309)	14,951
Total shareholders' equity	579,539	575,486	586,044
Total liabilities and shareholders' equity	7,173,693	6,983,420	7,709,488
Series A Preferred Stock
Shareholders' equity:
Preferred stock	217	217	217
Total shareholders' equity	217	217	217
Series B Preferred Stock
Shareholders' equity:
Preferred stock	177,451	177,092	176,049
Total shareholders' equity	177,451	177,092	176,049
Series D Preferred Stock
Shareholders' equity:
Preferred stock	16,613	16,613	16,613
Total shareholders' equity	16,613	16,613	16,613
Series F Preferred Stock
Shareholders' equity:
Preferred stock			195,872
Total shareholders' equity			195,872
Series G Preferred Stock
Shareholders' equity:
Preferred stock			151,185
Total shareholders' equity			151,185
Non-Voting Common Stock
Shareholders' equity:
Common stock	15,914	15,914
Total shareholders' equity	$ 15,914	$ 15,914

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
Fair value of securities held to maturity	$ 318,490	$ 343,531	$ 248,361
Preferred stock, par value	$ 1	$ 1	$ 1
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Common stock, par value	$ 1	$ 1	$ 1
Common stock, shares authorized	100,000,000	100,000,000	100,000,000
Common stock, shares issued	41,688,647	41,647,100	20,903,111
Common stock, shares outstanding	41,688,647	41,647,100	20,903,111
Common stock issuable, shares	90,126	93,681	79,428
Series A Preferred Stock
Preferred stock, par value	$ 10	$ 10	$ 10
Preferred stock, shares issued	21,700	21,700	21,700
Preferred stock, shares outstanding	21,700	21,700	21,700
Series B Preferred Stock
Preferred stock, par value	$ 1,000	$ 1,000	$ 1,000
Preferred stock, shares issued	180,000	180,000	180,000
Preferred stock, shares outstanding	180,000	180,000	180,000
Series D Preferred Stock
Preferred stock, par value	$ 1,000	$ 1,000	$ 1,000
Preferred stock, shares issued	16,613	16,613	16,613
Preferred stock, shares outstanding	16,613	16,613	16,613
Series F Preferred Stock
Preferred stock, par value			$ 1,000
Preferred stock, shares issued			195,872
Preferred stock, shares outstanding			195,872
Series G Preferred Stock
Preferred stock, par value			$ 1,000
Preferred stock, shares issued			151,185
Preferred stock, shares outstanding			151,185
Non-Voting Common Stock
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	15,914,209	15,914,209
Common stock, shares outstanding	15,914,209	15,914,209

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Series A Preferred Stock	Series B Preferred Stock	Series D Preferred Stock	Series F Preferred Stock	Series G Preferred Stock	Non-Voting Common Stock	Common Stock	Common Stock Issuable	Capital Surplus	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2010	$ 468,578	$ 217	$ 175,711					$ 18,937	$ 3,894	$ 741,244	$ (492,276)	$ 20,851
Net income (loss)	(237,336)										(237,336)
Other comprehensive loss	(5,900)											(5,900)
Preferred for common equity exchange related to tax benefits preservation plan (1,551,126 common shares)				16,613				(1,551)		(15,062)
Common stock issued to dividend reinvestment plan and employee benefit plans (46,019 shares in 2011 and 35,648 shares in 2012)	375							46		329
Common and preferred stock issued (3,467,699 common shares)	362,529				195,872	151,185		3,468		12,004
Amortization of stock options and restricted stock awards	549									549
Vesting of restricted stock (1,419 shares issued, 6382 shares deferred in 2011 and 4,397 shares issued, 8,399 shares deferred in 2012)								1	54	(55)
Deferred compensation plan, net, including dividend equivalents	65								65
Shares issued from deferred compensation plan (2,098 shares in 2011 and 1,502 shares in 2012)								2	(332)	330
Tax on option exercise and restricted stock vesting	(376)									(376)
Preferred stock dividends:
Series A	(3)										(3)
Series B	(2,264)		338								(2,602)
Series D	(173)										(173)
Ending balance at Mar. 31, 2011	586,044	217	176,049	16,613	195,872	151,185		20,903	3,681	738,963	(732,390)	14,951
Beginning balance at Dec. 31, 2011	575,486	217	177,092	16,613			15,914	41,647	3,233	1,054,940	(730,861)	(3,309)
Net income (loss)	11,528										11,528
Other comprehensive loss	(5,756)											(5,756)
Common stock issued to dividend reinvestment plan and employee benefit plans (46,019 shares in 2011 and 35,648 shares in 2012)	278							36		242
Amortization of stock options and restricted stock awards	585									585
Vesting of restricted stock (1,419 shares issued, 6382 shares deferred in 2011 and 4,397 shares issued, 8,399 shares deferred in 2012)	40							4	(151)	187
Deferred compensation plan, net, including dividend equivalents	49								49
Shares issued from deferred compensation plan (2,098 shares in 2011 and 1,502 shares in 2012)								2	(183)	181
Preferred stock dividends:
Series A	(3)										(3)
Series B	(2,249)		359								(2,608)
Series D	(419)										(419)
Ending balance at Mar. 31, 2012	$ 579,539	$ 217	$ 177,451	$ 16,613			$ 15,914	$ 41,689	$ 2,948	$ 1,056,135	$ (722,363)	$ (9,065)

Consolidated Statement of Changes in Shareholders' Equity (Parenthetical) (Unaudited) - shares	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Number of common stock issued to dividend reinvestment plan and employee benefit plans	35,648	46,019
Common and preferred stock issued		3,467,699
Vesting of restricted stock, shares issued	4,397
Vesting of restricted stock, shares deferred	8,399
Series D Preferred Stock
Preferred for common stock equity exchange related to tax preservation plan, shares		1,551,126
Series F Preferred Stock
Common and preferred stock issued		3,467,699
Series G Preferred Stock
Common and preferred stock issued		3,467,699
Common Stock
Preferred for common stock equity exchange related to tax preservation plan, shares		1,551,126
Number of common stock issued to dividend reinvestment plan and employee benefit plans	35,648	46,019
Common and preferred stock issued		3,467,699
Vesting of restricted stock, shares issued	4,397	1,419
Vesting of restricted stock, shares deferred	8,399	6,382
Number of shares issued from deferred compensation plan	1,502	2,098
Common Stock Issuable
Vesting of restricted stock, shares issued	4,397	1,419
Vesting of restricted stock, shares deferred	8,399	6,382
Number of shares issued from deferred compensation plan	1,502	2,098
Capital Surplus
Preferred for common stock equity exchange related to tax preservation plan, shares		1,551,126
Number of common stock issued to dividend reinvestment plan and employee benefit plans	35,648	46,019
Common and preferred stock issued		3,467,699
Vesting of restricted stock, shares issued	4,397	1,419
Vesting of restricted stock, shares deferred	8,399	6,382
Number of shares issued from deferred compensation plan	1,502	2,098

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Operating activities:
Net income (loss)	$ 11,528	$ (237,336)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and accretion	6,803	4,743
Provision for loan losses	15,000	190,000
Stock based compensation	585	549
Securities gains, net	(557)	(55)
Losses and write downs on sales of other real estate owned	2,204	60,605
Loss on prepayment of borrowings	482
Changes in assets and liabilities:
Other assets and accrued interest receivable	(2,612)	(4,770)
Accrued expenses and other liabilities	646	6,518
Mortgage loans held for sale	(928)	10,544
Net cash provided by operating activities	33,151	30,798
Investment securities held to maturity:
Proceeds from maturities and calls	25,653	21,116
Purchases		(1,500)
Investment securities available for sale:
Proceeds from sales	61,585	51,240
Proceeds from maturities and calls	142,236	116,175
Purchases	(253,229)	(405,979)
Net (increase) decrease in loans	(41,418)	93,949
Funds collected from FDIC under loss sharing agreements	2,568	9,299
Proceeds from sales of premises and equipment	14	160
Purchases of premises and equipment	(1,614)	(3,604)
Proceeds from sale of other real estate	6,696	36,003
Net cash used in investing activities	(57,509)	(83,141)
Financing activities:
Net change in deposits	(97,444)	128,576
Net change in federal funds purchased, repurchase agreements, and other short-term borrowings	(652)	1,040
Proceeds from Federal Home Loan Bank advances	499,000
Settlement of Federal Home Loan Bank advances	(324,982)
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans	278	375
Proceeds from issuance of common and preferred stock, net of offering costs		362,529
Cash dividends on preferred stock	(2,672)
Net cash provided by financing activities	73,528	492,520
Net change in cash and cash equivalents	49,170	440,177
Cash and cash equivalents at beginning of period	378,416	649,457
Cash and cash equivalents at end of period	427,586	1,089,634
Cash paid during the period for:
Interest	12,252	17,936
Income taxes	1,026	1,287
Unsettled securities sales	43,527
Unsettled securities purchases	$ 119,565	$ 177,532

Accounting Policies

3 Months Ended

Mar. 31, 2012

Accounting Policies [Abstract]

Accounting Policies

Note 1 – Accounting Policies

The accounting and financial reporting policies of United Community Banks, Inc. (“United”) and its subsidiaries conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. A more detailed description of United’s accounting policies is included in its Annual Report on Form 10-K for the year ended December 31, 2011.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods.

Foreclosed property is initially recorded at fair value, less estimated costs to sell. If the fair value, less estimated costs to sell at the time of foreclosure, is less than the loan balance, the deficiency is charged against the allowance for loan losses. If the fair value, less cost to sell, of the foreclosed property decreases during the holding period, a valuation allowance is established with a charge to operating expenses. When the foreclosed property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds and the carrying amount of the property. Financed sales of foreclosed property are accounted for in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 360-20, Real Estate Sales.

Accounting Standards Updates

3 Months Ended

Mar. 31, 2012

Accounting Standards Updates [Abstract]

Accounting Standards Updates

Note 2 – Accounting Standards Updates

In April 2012, the Financial Accounting Standards Board issued a proposed Accounting Standards Update to address the subsequent measurement of indemnification assets recognized as a result of a government assisted acquisition of a financial institution. The proposal requires an indemnification asset recognized as a result of a government assisted acquisition to be subsequently measured on the same basis as the indemnified item subject to the contractual limitations and amounts of the underlying contract. Comment letters on this proposed guidance are due by July 16, 2012. Because this standard is still in the proposal stage, the impact on United’s financial position, results of operations and disclosures has not been assessed.

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References + Details

Mergers and Acquisitions

3 Months Ended

Mar. 31, 2012

Mergers and Acquisitions [Abstract]

Mergers and Acquisitions

Note 3 – Mergers and Acquisitions

On June 19, 2009, United Community Bank (“UCB” or the “Bank”) purchased substantially all the assets and assumed substantially all the liabilities of Southern Community Bank (“SCB”) from the Federal Deposit Insurance Corporation (“FDIC”), as Receiver of SCB. UCB and the FDIC entered loss sharing agreements regarding future losses incurred on loans and foreclosed loan collateral existing at June 19, 2009. Under the terms of the loss sharing agreements, the FDIC will absorb 80 percent of losses and share 80 percent of loss recoveries on the first $109 million of losses and, absorb 95 percent of losses and share in 95 percent of loss recoveries on losses exceeding $109 million. The term for loss sharing on 1-4 Family loans is ten years, while the term for loss sharing on all other loans is five years.

Under the loss sharing agreement, the portion of the losses expected to be indemnified by FDIC is considered an indemnification asset in accordance with ASC 805, Business Combinations. The indemnification asset, referred to as “estimated loss reimbursement from the FDIC” is included in the balance of “Assets covered by loss sharing agreements with the FDIC” on the Consolidated Balance Sheet. The indemnification asset was recognized at fair value, which was estimated at the acquisition date based on the terms of the loss sharing agreement. The indemnification asset is expected to be collected over a four-year average life. No valuation allowance was required.

Loans, foreclosed property and the estimated FDIC reimbursement resulting from the loss sharing agreements with the FDIC are reported as “assets covered by loss sharing agreements with the FDIC” in the consolidated balance sheet.

The table below shows the components of covered assets at March 31, 2012 (in thousands).


(in thousands)	Purchased Impaired Loans		Other Purchased Loans		Other		Total
Commercial (secured by real estate)	$	—	$	29,888	$	—	$	29,888
Commercial & industrial		—		1,751		—		1,751
Construction and land development		546		7,896		—		8,442
Residential mortgage		145		6,797		—		6,942
Consumer installment		—		143		—		143

Total covered loans		691		46,475		—		47,166
Covered foreclosed property		—		—		13,983		13,983
Estimated loss reimbursement from the FDIC		—		—		11,705		11,705

Total covered assets	$	691	$	46,475	$	25,688	$	72,854

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1486-128463

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1383-128463

+ Details

Reverse Repurchase Agreements

3 Months Ended

Mar. 31, 2012

Reverse Repurchase Agreements [Abstract]

Reverse Repurchase Agreements

Note 4 – Reverse Repurchase Agreements

United enters into reverse repurchase agreements in order to invest short-term funds. In addition, United enters into repurchase agreements and reverse repurchase agreements with the same counter party in transactions that are subject to master netting agreements under which the balances are netted in the balance sheet in accordance with ASC 210-20. The following table presents a summary of amounts outstanding under reverse repurchase agreements including those entered into in connection with repurchase agreements with the same counterparty under master netting agreements (in thousands).


	March 31, 2012
	Reverse Repurchase Agreements (Assets)			Repurchase Agreements (Liabilities)			Net Reported Balance (Asset)
Amounts subject to master netting agreements	$	171,000		$	171,000		$	—
Other reverse repurchase agreements		235,000			—			235,000

Total	$	406,000		$	171,000		$	235,000

Weighted average interest rate		1.17	%		.32	%

United did not have any outstanding reverse repurchase agreements at March 31, 2011.

Securities

3 Months Ended

Mar. 31, 2012

Securities [Abstract]

Securities

Note 5 – Securities

Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three months ended March 31, 2012 and 2011(in thousands).


	Three Months Ended March 31,
	2012		2011
Proceeds from sales	$	105,111	$	51,240

Gross gains on sales	$	557	$	331
Gross losses on sales		—		(276	)

Net gains on sales of securities	$	557	$	55

Substantially all securities with a carrying value of $1.38 billion, $1.72 billion, and $1.83 billion were pledged to secure public deposits, FHLB advances and other secured borrowings at March 31, 2012, December 31, 2011 and March 31, 2011, respectively.

Securities are classified as held to maturity when management has the positive intent and ability to hold them until maturity. Securities held to maturity are carried at amortized cost. The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at March 31, 2012, December 31, 2011, and March 31, 2011 are as follows (in thousands).


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
As of March 31, 2012
State and political subdivisions	$	51,893		4,413		—	$	56,306
Mortgage-backed securities⁽¹⁾		251,743		10,441		—		262,184

Total	$	303,636	$	14,854	$	—	$	318,490

As of December 31, 2011
U.S. Government agencies	$	5,000	$	6	$	—	$	5,006
State and political subdivisions		51,903		4,058		13		55,948
Mortgage-backed securities⁽¹⁾		273,300		9,619		342		282,577

Total	$	330,203	$	13,683	$	355	$	343,531

As of March 31, 2011
U.S. Government agencies	$	4,989	$	12	$	—	$	5,001
State and political subdivisions		48,497		616		731		48,382
Mortgage-backed securities⁽¹⁾		191,944		3,041		7		194,978

Total	$	245,430	$	3,669	$	738	$	248,361

⁽¹⁾	All are residential type mortgage-backed securities

The cost basis, unrealized gains and losses, and fair value of securities available for sale at March 31, 2012, December 31, 2011 and March 31, 2011 are presented below (in thousands).


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
As of March 31, 2012
U.S. Government agencies	$	43,593	$	286	$	90	$	43,789
State and political subdivisions		21,490		1,321		3		22,808
Mortgage-backed securities⁽¹⁾		1,692,446		33,212		590		1,725,068
Corporate bonds		119,154		—		14,568		104,586
Other		2,564		—		—		2,564

Total	$	1,879,247	$	34,819	$	15,251	$	1,898,815

As of December 31, 2011
U.S. Government agencies	$	43,592	$	158	$	—	$	43,750
State and political subdivisions		24,997		1,345		3		26,339
Mortgage-backed securities⁽¹⁾		1,576,064		33,988		143		1,609,909
Corporate bonds		119,110		—		11,432		107,678
Other		2,371		—		—		2,371

Total	$	1,766,134	$	35,491	$	11,578	$	1,790,047

As of March 31, 2011
U.S. Government agencies	$	94,966	$	16	$	1,204	$	93,778
State and political subdivisions		26,870		983		20		27,833
Mortgage-backed securities⁽¹⁾		1,388,702		27,617		1,474		1,414,845
Corporate bonds		100,956		150		1,520		99,586
Other		2,452		—		—		2,452

Total	$	1,613,946	$	28,766	$	4,218	$	1,638,494

⁽¹⁾	All are residential type mortgage-backed securities

There were no held to maturity securities in an unrealized loss position at March 31, 2012. The following table summarizes held to maturity securities in an unrealized loss position as of December 31, 2011 and March 31, 2011 (in thousands).


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of December 31, 2011
State and political subdivisions	$	—	$	—	$	363	$	13	$	363	$	13
Mortgage-backed securities		10,967		342		—		—		10,967		342

Total unrealized loss position	$	10,967	$	342	$	363	$	13	$	11,330	$	355

As of March 31, 2011
State and political subdivisions	$	21,313	$	731	$	—	$	—	$	21,313	$	731
Mortgage-backed securities		1,942		7		—		—		1,942		7

Total unrealized loss position	$	23,255	$	738	$	—	$	—	$	23,255	$	738

The following table summarizes available for sale securities in an unrealized loss position as of March 31, 2012, December 31, 2011 and March 31, 2011 (in thousands).


	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
As of March 31, 2012
U.S. Government agencies	$	9,905	$	90	$	—	$	—	$	9,905	$	90
State and political subdivisions		—		—		11		3		11		3
Mortgage-backed securities		405,039		574		21,067		16		426,106		590
Corporate bonds		35,306		2,872		69,230		11,696		104,536		14,568

Total unrealized loss position	$	450,250	$	3,536	$	90,308	$	11,715	$	540,558	$	15,251

As of December 31, 2011
State and political subdivisions	$	—	$	—	$	11	$	3	$	11	$	3
Mortgage-backed securities		98,687		110		22,719		33		121,406		143
Corporate bonds		42,864		5,197		64,765		6,235		107,629		11,432

Total unrealized loss position	$	141,551	$	5,307	$	87,495	$	6,271	$	229,046	$	11,578

As of March 31, 2011
U.S. Government agencies	$	73,763	$	1,204	$	—	$	—	$	73,763	$	1,204
State and political subdivisions		1,098		15		11		5		1,109		20
Mortgage-backed securities		292,379		1,474		—		—		292,379		1,474
Corporate bonds		79,386		1,520		—		—		79,386		1,520

Total unrealized loss position	$	446,626	$	4,213	$	11	$	5	$	446,637	$	4,218

At March 31, 2012, there were 53 available for sale securities and no held to maturity securities that were in an unrealized loss position. United does not intend to sell nor believes it will be required to sell securities in an unrealized loss position prior to the recovery of its amortized cost basis. Unrealized losses at March 31, 2012 are primarily related to changes in interest rates, however the unrealized losses in corporate bonds also reflect downgrades in the underlying securities ratings. The bonds remain above investment grade and United does not consider them to be impaired. Unrealized losses at March 31, 2011 were primarily attributable to changes in interest rates.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analyst’s reports. No impairment charges were recognized during the first quarter of 2012 or 2011.

The amortized cost and fair value of available for sale and held to maturity securities at March 31, 2012, by contractual maturity, are presented in the following table (in thousands).


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government agencies:
5 to 10 years	$	34,995	$	35,153	$	—	$	—
More than 10 years		8,598		8,636		—		—

		43,593		43,789		—		—

State and political subdivisions:
Within 1 year		1,600		1,608		—		—
1 to 5 years		14,121		14,966		4,813		5,132
5 to 10 years		4,921		5,317		23,667		25,896
More than 10 years		848		917		23,413		25,278

		21,490		22,808		51,893		56,306

Corporate bonds:
1 to 5 years		18,594		17,668		—		—
5 to 10 years		99,560		86,618		—		—
More than 10 years		1,000		300		—		—

		119,154		104,586		—		—

Other:
More than 10 years		2,564		2,564		—		—

		2,564		2,564		—		—

Total securities other than mortgage-backed securities:
Within 1 year		1,600		1,608		—		—
1 to 5 years		32,715		32,634		4,813		5,132
5 to 10 years		139,476		127,088		23,667		25,896
More than 10 years		13,010		12,417		23,413		25,278
Mortgage-backed securities		1,692,446		1,725,068		251,743		262,184

	$	1,879,247	$	1,898,815	$	303,636	$	318,490

Maturities of mortgage-backed securities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Loans and Allowance for Loan Losses

3 Months Ended

Mar. 31, 2012

Loans and Allowance for Loan Losses [Abstract]

Loans and Allowance for Loan Losses

Note 6 – Loans and Allowance for Loan Losses

Major classifications of loans as of March 31, 2012, December 31, 2011 and March 31, 2011, are summarized as follows (in thousands).


	March 31,		December 31,		March 31,
	2012		2011		2011
Commercial (secured by real estate)	$	1,843,207	$	1,821,414	$	1,692,154
Commercial & industrial		439,496		428,249		431,473
Commercial construction		167,122		164,155		213,177

Total commercial		2,449,825		2,413,818		2,336,804
Residential mortgage		1,131,248		1,134,902		1,186,531
Residential construction		435,375		448,391		549,618
Consumer installment		111,118		112,503		121,419

Total loans		4,127,566		4,109,614		4,194,372
Less allowance for loan losses		113,601		114,468		133,121

Loans, net	$	4,013,965	$	3,995,146	$	4,061,251

The Bank makes loans and extensions of credit to individuals and a variety of firms and corporations located primarily in counties in north Georgia, the Atlanta, Georgia metropolitan statistical area, the Gainesville, Georgia metropolitan statistical area, coastal Georgia, western North Carolina and east Tennessee. Although the Bank has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market.

Changes in the allowance for loan losses for the three months ended March 31, 2012 and 2011 are summarized as follows (in thousands).


	Three Months Ended
	March 31,
	2012		2011
Balance beginning of period	$	114,468	$	174,695
Provision for loan losses		15,000		190,000
Charge-offs:
Commercial (secured by real estate)		3,928		48,707
Commercial & industrial		756		4,362
Commercial construction		364		49,715
Residential mortgage		5,767		36,676
Residential construction		5,629		92,255
Consumer installment		753		1,096

Total loans charged-off		17,197		232,811

Recoveries:
Commercial (secured by real estate)		231		100
Commercial & industrial		87		322
Commercial construction		30		—
Residential mortgage		392		293
Residential construction		315		117
Consumer installment		275		405

Total recoveries		1,330		1,237

Net charge-offs		15,867		231,574

Balance end of period	$	113,601	$	133,121

At March 31, 2012, December 31, 2011 and March 31, 2011, loans with a carrying value of $1.58 billion, $1.52 billion and $857 million were pledged as collateral to secure FHLB advances and other contingent funding sources.

The following table presents the balance and activity in the allowance for loan losses by portfolio segment and the recorded investment in loans by portfolio segment based on impairment method as of March 31, 2012, December 31, 2011 and March 31, 2011 (in thousands).


	Commercial (Secured by Real Estate)			Commercial & Industrial			Commercial Construction			Residential Mortgage			Residential Construction			Consumer Installment			Unallocated			Total
Three Months Ended March 31, 2012
Allowance for loan losses:
Beginning balance	$	31,644		$	5,681		$	6,097		$	29,076		$	30,379		$	2,124		$	9,467		$	114,468
Charge-offs		(3,928	)		(756	)		(364	)		(5,767	)		(5,629	)		(753	)		—			(17,197	)
Recoveries		231			87			30			392			315			275			—			1,330
Provision		2,667			460			3,820			3,655			4,408			252			(262	)		15,000

Ending balance	$	30,614		$	5,472		$	9,583		$	27,356		$	29,473		$	1,898		$	9,205		$	113,601

Ending allowance attributable to loans:
Individually evaluated for impairment	$	7,654		$	1,122		$	1,920		$	2,254		$	3,236		$	63		$	—		$	16,249
Collectively evaluated for impairment		22,960			4,350			7,663			25,102			26,237			1,835			9,205			97,352

Total ending allowance balance	$	30,614		$	5,472		$	9,583		$	27,356		$	29,473		$	1,898		$	9,205		$	113,601

Loans:
Individually evaluated for impairment	$	117,999		$	60,568		$	46,549		$	21,525		$	47,048		$	331		$	—		$	294,020
Collectively evaluated for impairment		1,725,208			378,928			120,573			1,109,723			388,327			110,787			—			3,833,546

Total loans	$	1,843,207		$	439,496		$	167,122		$	1,131,248		$	435,375		$	111,118		$	—		$	4,127,566

December 31, 2011
Allowance for loan losses:
Ending allowance attributable to loans:
Individually evaluated for impairment	$	7,491		$	1,117		$	236		$	2,234		$	3,731		$	16		$	—		$	14,825
Collectively evaluated for impairment		24,153			4,564			5,861			26,842			26,648			2,108			9,467			99,643

Total ending allowance balance	$	31,644		$	5,681		$	6,097		$	29,076		$	30,379		$	2,124		$	9,467		$	114,468

Loans:
Individually evaluated for impairment	$	107,831		$	57,828		$	26,245		$	18,376		$	46,687		$	292		$	—		$	257,259
Collectively evaluated for impairment		1,713,583			370,421			137,910			1,116,526			401,704			112,211			—			3,852,355

Total loans	$	1,821,414		$	428,249		$	164,155		$	1,134,902		$	448,391		$	112,503		$	—		$	4,109,614

Three Months Ended March 31, 2011
Allowance for loan losses:
Beginning balance	$	31,191		$	7,580		$	6,780		$	22,305		$	92,571		$	3,030		$	11,238		$	174,695
Charge-offs		(48,707	)		(4,362	)		(49,715	)		(36,676	)		(92,255	)		(1,096	)		—			(232,811	)
Recoveries		100			322			—			293			117			405			—			1,237
Provision		37,675			4,047			48,916			39,207			62,087			217			(2,149	)		190,000

Ending balance	$	20,259		$	7,587		$	5,981		$	25,129		$	62,520		$	2,556		$	9,089		$	133,121

Ending allowance attributable to loans:
Individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Collectively evaluated for impairment		20,259			7,587			5,981			25,129			62,520			2,556			9,089			133,121

Total ending allowance balance	$	20,259		$	7,587		$	5,981		$	25,129		$	62,520		$	2,556		$	9,089		$	133,121

Loans:
Individually evaluated for impairment	$	17,154		$	—		$	3,624		$	5,157		$	22,667		$	—		$	—		$	48,602
Collectively evaluated for impairment		1,675,000			431,473			209,553			1,181,374			526,951			121,419			—			4,145,770

Total loans	$	1,692,154		$	431,473		$	213,177		$	1,186,531		$	549,618		$	121,419		$	—		$	4,194,372

United reviews all loans that are on nonaccrual with a balance of $500,000 or greater for impairment as well as accruing substandard relationships greater than $2 million and all troubled debt restructurings (“TDRs”). A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due, according to the contractual terms of the loan, will not be collected. All troubled debt restructurings are considered impaired regardless of accrual status. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Interest payments received on impaired loans that are on nonaccrual status are applied as a reduction of the outstanding principal balance. For impaired loans not on nonaccrual status, interest is accrued according to the terms of the loan agreement. Impairment amounts are recorded quarterly and specific reserves are recorded in the allowance for loan losses.

In the first quarter of 2011, United’s Board of Directors adopted an accelerated problem asset disposition plan which included the bulk sale of $267 million in classified loans. Those loans were classified as held for sale at the end of the first quarter and were written down to the expected proceeds from the sale. The charge-offs on the loans transferred to held for sale in anticipation of the bulk loan sale, which closed on April 18, 2011, increased first quarter 2011 loan charge-offs by $186 million. The actual loss on the bulk loan sale at closing was less than the amount charged-off in the first quarter, resulting in a $7.27 million reduction of second quarter 2011 charge-offs.

The recorded investments in individually evaluated impaired loans at March 31, 2012, December 31, 2011 and March 31, 2011 were as follows (in thousands).


	March 31,		December 31,		March 31,
	2012		2011		2011
Period-end loans with no allocated allowance for loan losses	$	208,302	$	188,509	$	48,602
Period-end loans with allocated allowance for loan losses		85,718		68,750		—

Total	$	294,020	$	257,259	$	48,602

Amount of allowance for loan losses allocated	$	16,249	$	14,825	$	—

The increase in the amount of impaired loans is due to an increase in the number and balance of TDRs. The average balances of impaired loans and income recognized on impaired loans while they were considered impaired is presented below for the three months ended March 31, 2012 and March 31, 2011 (in thousands).


	Three Months Ended
	March 31,
	2012		2011
Average balance of individually evaluated impaired loans during period	$	280,626	$	95,163
Interest income recognized during impairment		2,267		—
Cash-basis interest income recognized		3,192		—

The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2012, December 31, 2011 and March 31, 2011 (in thousands).


	March 31, 2012						December 31, 2011						March 31, 2011
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
With no related allowance recorded:
Commercial (secured by real estate)	$	91,399	$	82,593	$	—	$	82,887	$	76,215	$	—	$	27,811	$	17,154	$	—
Commercial & industrial		81,896		56,896		—		77,628		52,628		—		—		—		—
Commercial construction		30,188		27,295		—		24,927		23,609		—		4,360		3,624		—

Total commercial		203,483		166,784		—		185,442		152,452		—		32,171		20,778		—
Residential mortgage		15,375		13,041		—		13,845		10,804		—		8,801		5,157		—
Residential construction		44,018		28,477		—		38,955		25,190		—		49,205		22,667		—
Consumer installment		—		—		—		63		63		—		—		—		—

Total with no related allowance recorded		262,876		208,302		—		238,305		188,509		—		90,177		48,602		—

With an allowance recorded:
Commercial (secured by real estate)		36,536		35,406		7,654		31,806		31,616		7,491		—		—		—
Commercial & industrial		3,672		3,672		1,122		5,200		5,200		1,117		—		—		—
Commercial construction		20,056		19,254		1,920		2,636		2,636		236		—		—		—

Total commercial		60,264		58,332		10,696		39,642		39,452		8,844		—		—		—
Residential mortgage		9,255		8,484		2,254		7,642		7,572		2,234		—		—		—
Residential construction		19,235		18,571		3,236		21,629		21,497		3,731		—		—		—
Consumer installment		340		331		63		235		229		16		—		—		—

Total with an allowance recorded		89,094		85,718		16,249		69,148		68,750		14,825		—		—		—

Total	$	351,970	$	294,020	$	16,249	$	307,453	$	257,259	$	14,825	$	90,177	$	48,602	$	—

There were no loans more than 90 days past due and still accruing interest at March 31, 2012, December 31, 2011 or March 31, 2011. Nonaccrual loans at March 31, 2012, December 31, 2011 and March 31, 2011 were $130 million, $127 million and $83.8, respectively. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans with larger balances.

The following table presents the recorded investment (unpaid principal less amounts charged-off) in nonaccrual loans by loan class as of March 31, 2012, December 31, 2011 and March 31, 2011 (in thousands).


	Nonaccrual Loans
	March 31, 2012			December 31, 2011			March 31, 2011
Commercial (secured by real estate)	$	26,081		$	27,322		$	20,648
Commercial & industrial		36,314			34,613			2,198
Commercial construction		23,319			16,655			3,701

Total commercial		85,714			78,590			26,547
Residential mortgage		18,741			22,358			23,711
Residential construction		24,341			25,523			32,038
Consumer installment		908			1,008			1,473

Total	$	129,704		$	127,479		$	83,769

Balance as a percentage of unpaid principal		70.6	%		71.3	%		57.3	%

The following table presents the aging of the recorded investment in past due loans as of March 31, 2012, December 31, 2011 and March 31, 2011 by class of loans (in thousands).


	Loans Past Due								Loans Not
	30 - 59 Days		60 - 89 Days		> 90 Days		Total		Past Due		Total
As of March 31, 2012
Commercial (secured by real estate)	$	6,777	$	3,219	$	14,461	$	24,457	$	1,818,750	$	1,843,207
Commercial & industrial		1,930		244		2,905		5,079		434,417		439,496
Commercial construction		256		55		8,620		8,931		158,191		167,122

Total commercial		8,963		3,518		25,986		38,467		2,411,358		2,449,825
Residential mortgage		14,540		5,223		9,103		28,866		1,102,382		1,131,248
Residential construction		7,462		1,584		11,201		20,247		415,128		435,375
Consumer installment		961		248		346		1,555		109,563		111,118

Total loans	$	31,926	$	10,573	$	46,636	$	89,135	$	4,038,431	$	4,127,566

As of December 31, 2011
Commercial (secured by real estate)	$	8,036	$	4,182	$	10,614	$	22,832	$	1,798,582	$	1,821,414
Commercial & industrial		3,869		411		407		4,687		423,562		428,249
Commercial construction		166		—		1,128		1,294		162,861		164,155

Total commercial		12,071		4,593		12,149		28,813		2,385,005		2,413,818
Residential mortgage		15,185		4,617		9,071		28,873		1,106,029		1,134,902
Residential construction		3,940		2,636		10,270		16,846		431,545		448,391
Consumer installment		1,534		308		430		2,272		110,231		112,503

Total loans	$	32,730	$	12,154	$	31,920	$	76,804	$	4,032,810	$	4,109,614

As of March 31, 2011
Commercial (secured by real estate)	$	11,522	$	9,244	$	9,659	$	30,425	$	1,661,729	$	1,692,154
Commercial & industrial		1,485		854		876		3,215		428,258		431,473
Commercial construction		5,458		1,880		1,237		8,575		204,602		213,177

Total commercial		18,465		11,978		11,772		42,215		2,294,589		2,336,804
Residential mortgage		16,439		6,658		10,789		33,886		1,152,645		1,186,531
Residential construction		13,349		9,514		13,405		36,268		513,350		549,618
Consumer installment		1,705		346		573		2,624		118,795		121,419

Total loans	$	49,958	$	28,496	$	36,539	$	114,993	$	4,079,379	$	4,194,372

As of March 31, 2012 and December 31, 2011, United has allocated $12.2 million and $8.65 million, respectively, of specific reserves to customers whose loan terms have been modified in troubled debt restructurings. There were no specific reserves established for loans considered to be troubled debt restructurings at March 31, 2011. United committed to lend additional amounts totaling up to $891,000, $1.12 million and $519,000 as of March 31, 2012, December 31, 2011 and March 31, 2011, respectively, to customers with outstanding loans that are classified as TDRs.

The modification of the terms of troubled debt restructurings included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date or an extension of the amortization period at a stated rate lower than the current market rate for new debt with similar risk; or a permanent reduction of the principal amount.

The following table presents additional information on troubled debt restructurings including the number of loan contracts restructured and the pre and post modification recorded investment (dollars in thousands).


	March 31, 2012						December 31, 2011						March 31, 2011
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial (sec by RE)		92	$	83,230	$	79,844		74	$	70,380	$	69,054		29	$	25,094	$	22,211
Commercial & industrial		26		3,487		3,487		18		806		806		5		155		155
Commercial construction		16		35,184		34,066		11		18,053		18,053		6		9,622		9,622

Total commercial		134		121,901		117,397		103		89,239		87,913		40		34,871		31,988
Residential mortgage		99		15,718		14,832		80		11,943		11,379		32		4,013		3,882
Residential construction		63		27,128		25,948		54		24,921		24,145		54		14,582		13,759
Consumer installment		40		340		330		34		298		293		7		122		117

Total loans		336	$	165,087	$	158,507		271	$	126,401	$	123,730		133	$	53,588	$	49,746

The following table presents new troubled debt restructurings during the three months ended March 31, 2012 and those troubled debt restructurings that have subsequently defaulted, which we define as 90 days or more past due (dollars in thousands).


	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Troubled Debt Restructurings Modified Within the Previous Twelve Months that Have Subsequently Defaulted During the Three Months Ended March 31, 2012
New Troubled Debt Restructurings for the Three Months Ended March 31, 2012	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Recorded Investment
Commercial (secured by real estate)		24	$	15,099	$	13,741	$	—	$	—
Commercial & industrial		10		2,724		2,724		1		43
Commercial construction		7		20,781		20,781		2		4,174

Total commercial		41		38,604		37,246		3		4,217
Residential mortgage		24		5,279		5,273		3		373
Residential construction		14		3,751		3,189		3		1,476
Consumer installment		7		60		55		—		—

Total loans		86	$	47,694	$	45,763		9	$	6,066

Risk Ratings

United categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. United uses the following definitions for its risk ratings:

Watch. Loans in this category are presently protected from apparent loss; however weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable.

Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. Immediate corrective action is necessary.

Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment.

Loss. Loans categorized as Loss have the same characteristics as Doubtful however probability of loss is certain. Loans classified as Loss are charged-off.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are generally deposit account overdrafts or new loans that have not yet been assigned a grade.

As of March 31, 2012, December 31, 2011 and March 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands).


	Pass		Watch		Substandard		Doubtful / Loss		Not Rated		Total
As of March 31, 2012
Commercial (secured by real estate)	$	1,586,934	$	96,352	$	159,921	$	—	$	—	$	1,843,207
Commercial & industrial		381,097		4,126		53,532		—		741		439,496
Commercial construction		99,825		20,722		46,575		—		—		167,122

Total commercial		2,067,856		121,200		260,028		—		741		2,449,825
Residential mortgage		995,982		40,790		94,476		—		—		1,131,248
Residential construction		298,592		48,168		88,615		—		—		435,375
Consumer installment		106,124		1,476		3,518		—		—		111,118

Total loans	$	3,468,554	$	211,634	$	446,637	$	—	$	741	$	4,127,566

As of December 31, 2011
Commercial (secured by real estate)	$	1,561,204	$	89,830	$	170,380	$	—	$	—	$	1,821,414
Commercial & industrial		369,343		7,630		50,366		—		910		428,249
Commercial construction		114,817		14,173		35,165		—		—		164,155

Total commercial		2,045,364		111,633		255,911		—		910		2,413,818
Residential mortgage		993,779		42,323		98,800		—		—		1,134,902
Residential construction		312,527		38,386		97,478		—		—		448,391
Consumer installment		107,333		1,411		3,759		—		—		112,503

Total loans	$	3,459,003	$	193,753	$	455,948	$	—	$	910	$	4,109,614

As of March 31, 2011
Commercial (secured by real estate)	$	1,469,140	$	82,715	$	140,299	$	—	$	—	$	1,692,154
Commercial & industrial		405,059		6,824		18,608		—		982		431,473
Commercial construction		166,386		8,205		38,586		—		—		213,177

Total commercial		2,040,585		97,744		197,493		—		982		2,336,804
Residential mortgage		1,052,909		40,779		92,843		—		—		1,186,531
Residential construction		376,583		60,463		112,572		—		—		549,618
Consumer installment		116,964		626		3,829		—		—		121,419

Total loans	$	3,587,041	$	199,612	$	406,737	$	—	$	982	$	4,194,372

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 3, 4
-Article 5

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 7
-Article 9

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 01-6
-Paragraph 13
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.3,4)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5074-111524

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5066-111524

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6965416&loc=d3e5162-111524

+ Details

Foreclosed Property

3 Months Ended

Mar. 31, 2012

Foreclosed Property [Abstract]

Foreclosed Property

Note 7 – Foreclosed Property

Major classifications of foreclosed properties at March 31, 2012, December 31, 2011 and March 31, 2011 are summarized as follows (in thousands).


	March 31,			December 31,			March 31,
	2012			2011			2011
Commercial real estate	$	11,463		$	10,866		$	15,500
Commercial construction		3,266			3,336			11,568

Total commercial		14,729			14,202			27,068
Residential mortgage		6,757			7,840			12,927
Residential construction		28,147			29,799			67,406

Total foreclosed property		49,633			51,841			107,401
Less valuation allowance		17,746			18,982			53,023

Foreclosed property, net	$	31,887		$	32,859		$	54,378

Balance as a percentage of original loan unpaid principal		36.1	%		35.9	%		30.3	%

Activity in the valuation allowance for foreclosed property is presented in the following table (in thousands).


	Three Months Ended
	March 31,
	2012			2011
Balance at beginning of year	$	18,982		$	16,565
Additions charged to expense		2,111			48,585
Direct write downs		(3,347	)		(12,127	)

Balance at end of period	$	17,746		$	53,023

Expenses related to foreclosed assets include (in thousands).


	Three Months Ended
	March 31,
	2012		2011
Net loss on sales	$	93	$	12,020
Provision for unrealized losses		2,111		48,585
Operating expenses, net of rental income		1,621		4,294

Total foreclosed property expense	$	3,825	$	64,899

Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

Note 8 – Earnings Per Share

United is required to report on the face of the statement of operations, earnings (loss) per common share with and without the dilutive effects of potential common stock issuances from instruments such as options, convertible securities and warrants. Basic earnings (loss) per common share is based on the weighted average number of common shares outstanding during the period while the effects of potential common shares outstanding during the period are included in diluted earnings (loss) per common share.

During the three months ended March 31, 2012 and 2011, United accrued dividends on preferred stock, including accretion of discounts, as shown in the following table (in thousands).


	Three Months Ended
	March 31,
	2012		2011
Series A—6% fixed	$	3	$	3
Series B—5% fixed until December 6, 2013, 9% thereafter		2,608		2,602
Series D—LIBOR plus 9.6875%, resets quarterly		419		173

Total preferred stock dividends	$	3,030	$	2,778

All preferred stock dividends are payable quarterly.

Series B preferred stock was issued at a discount. Dividend amounts shown include discount accretion for each period.

The preferred stock dividends were subtracted from net income (loss) in order to arrive at net income (loss) available to common shareholders. There is no dilution from dilutive securities for the three months ended March 31, 2011, due to the antidilutive effect of the net loss for that period.

The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three months ended March 31, 2012 and 2011 (in thousands, except per share data).


	Three Months Ended
	March 31,
	2012		2011
Net income (loss) available to common shareholders	$	8,498	$	(240,114	)

Weighted average shares outstanding:
Basic		57,764		18,466
Effect of dilutive securities
Convertible securities		—		—
Stock options		—		—
Warrants		—		—

Diluted		57,764		18,466

Earnings (loss) per common share:
Basic	$	.15	$	(13.00	)

Diluted	$	.15	$	(13.00	)

At March 31, 2012, United had the following potentially dilutive stock options and warrants outstanding: a warrant to purchase 219,908.49 common shares at $61.39 per share issued to the U.S. Treasury in conjunction with the issuance of United’s fixed rate cumulative perpetual preferred stock, Series B; 129,670 common shares issuable upon exercise of warrants attached to trust preferred securities with an exercise price of $100 per share; 514,068 common shares issuable upon exercise of stock options granted to employees with a weighted average exercise price of $98.22; 404,281 common shares issuable upon completion of vesting of restricted stock awards; 1,411,765 common shares issuable upon exercise of warrants exercisable at a price equivalent to $21.25 per share granted to Fletcher International Ltd. (“Fletcher”) in connection with a 2010 asset purchase and sale agreement; 2,476,191 common shares issuable upon conversion of preferred stock if Fletcher exercises its option to purchase $65 million in convertible preferred stock, convertible at $26.25 per share; 1,162,791 common shares issuable upon exercise of warrants exercisable at a price equivalent to $30.10 per share to be granted to Fletcher upon exercise of its option to acquire preferred stock; and 1,551,126 common shares issuable upon exercise of warrants owned by Elm Ridge Offshore Master Fund, Ltd. and Elm Ridge Value Partners, L.P. (collectively, the “Elm Ridge Parties”), exercisable at $12.50 per share.

Derivatives and Hedging Activity

3 Months Ended

Mar. 31, 2012

Derivatives and Hedging Activity [Abstract]

Derivatives and Hedging Activity

Note 9 – Derivatives and Hedging Activity

Risk Management Objective of Using Derivatives

United is exposed to certain risks arising from both its business operations and economic conditions. United principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. United manages interest rate risk primarily by managing the amount, sources, and duration of its investment securities portfolio and debt funding and through the use of derivative financial instruments. Specifically, United enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. United’s derivative financial instruments are used to manage differences in the amount, timing, and duration of United’s known or expected cash receipts and its known or expected cash payments principally related to United’s loans and wholesale borrowings.

The table below presents the fair value of United’s derivative financial instruments as well as their classification on the consolidated balance sheet as of March 31, 2012, December 31, 2011 and March 31, 2011 (in thousands).

Derivatives accounted for as hedges under ASC 815


			Fair Value
Interest Rate Products	Balance Sheet Location		March 31, 2012		December 31, 2011		March 31, 2011
Liability derivatives		Other liabilities	$	2,526	$	422	$	—

Derivatives not accounted for as hedges under ASC 815


			Fair Value
Interest Rate Products	Balance Sheet Location		March 31, 2012		December 31, 2011		March 31, 2011
Asset derivatives		Other assets	$	73	$	—	$	—

Liability derivatives		Other liabilities	$	73	$	—	$	—

Derivative contracts that are not accounted for as hedges under ASC 815 are between United and certain commercial loan customers with offsetting positions to dealers under a back-to-back swap program.

Cash Flow Hedges of Interest Rate Risk

United’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, United primarily uses interest rate swaps as part of its interest rate risk management strategy. For United’s variable-rate loans, interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for United making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if the designated rate index falls below the strike rate on the contract. United pays an up front premium for this interest rate protection. United had no active derivative contracts outstanding at March 31, 2012, December 31, 2011 or March 31, 2011 that were designated as cash flow hedges of interest rate risk.

The effective portion of changes in the fair value of derivatives designated, and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest revenue as interest payments are received on United’s prime-based, variable-rate loans. At March 31, 2012, the amount included in other comprehensive income represents deferred gains from terminated cash flow hedges where the forecasted hedging transaction is expected to remain effective over the remaining unexpired term of the original contract. Such gains are being deferred and recognized over the remaining life of the original derivative contract. For terminated swap contracts, the gains are recognized over the original life of the contract on a straight line basis. For terminated floors, the gains are recognized over the original term based on the original floorlet schedule. During the three months ended March 31, 2012 and 2011, United accelerated the reclassification of $81,000 and $1.30 million, respectively, in gains from terminated positions as a result of the forecasted transactions becoming probable not to occur. During the next twelve months, United estimates that an additional $2.60 million of the deferred gains on terminated cash flow hedging positions will be reclassified as an increase to interest revenue.

Fair Value Hedges of Interest Rate Risk

United is exposed to changes in the fair value of certain of its fixed rate obligations due to changes in LIBOR, a benchmark interest rate. United uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for United making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. At March 31, 2012, United had four interest rate swaps with an aggregate notional amount of $64.5 million that were designated as fair value hedges of interest rate risk. At March 31, 2011, United had no active derivative contracts outstanding that were designated as fair value hedges.

For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. United includes the gain or loss on the hedged items in the same financial statement line item as the offsetting loss or gain on the related derivatives. During the three months ended March 31, 2012, United recognized net gains/(losses) of $34,000 related to ineffectiveness of the fair value hedging relationships. United also recognized a net reduction of interest expense of $278,000 for the three months ended March 31, 2012, related to United’s fair value hedges, which includes net settlements on the derivatives. There were no active fair value hedges during the first quarter of 2011.

Tabular Disclosure of the Effect of Derivative Instruments on the Income Statement

The tables below present the effect of United’s derivative financial instruments on the consolidated statement of operations for the three months ended March 31, 2012 and 2011.

Derivatives in Fair Value Hedging Relationships (in thousands):


Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income on Derivative					Amount of Gain (Loss) Recognized in Income on Hedged Item
on Derivative	2012			2011		2012		2011
Three Months Ended March 31,
Other fee revenue	$	(1,264	)	$	—	$	1,298	$	—

Derivatives in Cash Flow Hedging Relationships (in thousands):


	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)				Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)
	2012		2011		Location	2012		2011
Three Months Ended March 31,
					Interest revenue	$	1,519	$	2,923
					Other income		81		1,303

Interest rate products	$	—	$	—	Total	$	1,600	$	4,226

Credit-risk-related Contingent Features

United manages its credit exposure on derivatives transactions by entering into a bi-lateral credit support agreement with each counterparty. The credit support agreements require collateralization of exposures beyond specified minimum threshold amounts. The details of these agreements, including the minimum thresholds, vary by counterparty.

United’s agreements with each of its derivative counterparties contain a provision where if either party defaults on any of its indebtedness, then it could also be declared in default on its derivative obligations. The agreements with derivatives counterparties also include provisions that if not met, could result in United being declared in default. United has agreements with certain of its derivative counterparties that contain a provision where if United fails to maintain its status as a well-capitalized institution or is subject to a prompt corrective action directive, the counterparty could terminate the derivative positions and United would be required to settle its obligations under the agreements.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80784-113994

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624171-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
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-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

+ Details

Stock Based Compensation

3 Months Ended

Mar. 31, 2012

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 10 – Stock Based Compensation

United has an equity compensation plan that allows for grants of incentive stock options, nonqualified stock options, restricted stock awards (also referred to as “nonvested stock” awards), stock awards, performance share awards or stock appreciation rights. Options granted under the plan can have an exercise price no less than the fair market value of the underlying stock at the date of grant. The general terms of the plan include a vesting period (usually four years) with an exercisable period not to exceed ten years. Certain option and restricted stock awards provide for accelerated vesting if there is a change in control (as defined in the plan). As of March 31, 2012, no additional awards could be granted under the plan. Through March 31, 2012, incentive stock options, nonqualified stock options, restricted stock awards and units and base salary stock grants had been granted under the plan.

The following table shows stock option activity for the first three months of 2012.


Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinisic Value ($000)
Outstanding at December 31, 2011		583,647		$	94.48
Forfeited		(1,203	)		48.85
Expired		(68,376	)		67.19

Outstanding at March 31, 2012		514,068			98.22		4.3	$	—

Exercisable at March 31, 2012		450,507			105.70		3.9		—

The fair value of each option is estimated on the date of grant using the Black-Scholes model. No stock options were granted during the three month periods ended March 31, 2012 or 2011.

Compensation expense relating to options of $180,000 and $441,000, respectively, was included in earnings for the three months ended March 31, 2012 and 2011. The amount of compensation expense for all periods was determined based on the fair value of options at the time of grant, multiplied by the number of options granted that were expected to vest, which was then amortized over the vesting period. The forfeiture rate for options is estimated to be approximately 3% per year. There were no options exercised during the three months ended March 31, 2012 or 2011.

The table below presents the activity in restricted stock awards for the first three months of 2012.


Restricted Stock	Shares			Weighted- Average Grant- Date Fair Value
Outstanding at December 31, 2011		414,644		$	12.19
Granted		4,734			8.43
Excercised		(8,497	)		19.87
Cancelled		(6,600	)		10.25

Outstanding at March 31, 2012		404,281			12.69

Vested at March 31, 2012		15,490			35.62

Compensation expense for restricted stock is based on the fair value of restricted stock awards at the time of grant, which is equal to the value of United’s common stock on the date of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting period. For the three months ended March 31, 2012 and 2011, compensation expense of $405,000 and $107,000, respectively, was recognized related to restricted stock awards. The total intrinsic value of restricted stock at March 31, 2012 was approximately $3.94 million.

As of March 31, 2012, there was $3.41 million of unrecognized compensation cost related to nonvested stock options and restricted stock awards granted under the plan. The cost is expected to be recognized over a weighted-average period of 2.1 years. The aggregate grant date fair value of options and restricted stock that vested during the three months ended March 31, 2012 was $329,000.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
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+ Details

Common And Preferred Stock Issued / Common Stock Issuable

3 Months Ended

Mar. 31, 2012

Common and Preferred Stock Issued / Common Stock Issuable And Reclassifications and Reverse Stock Split [Abstract]

Common and Preferred Stock Issued / Common Stock Issuable

Note 11 – Common and Preferred Stock Issued / Common Stock Issuable

United sponsors a Dividend Reinvestment and Stock Purchase Plan (“DRIP”) that allows participants who already own United’s common stock to purchase additional shares directly from the company. The DRIP also allows participants to automatically reinvest their quarterly dividends in additional shares of common stock without a commission. The DRIP is currently suspended. United’s 401(k) retirement plan regularly purchases shares of United’s common stock directly from United. In addition, United has an Employee Stock Purchase Program that allows eligible employees to purchase shares of common stock at a 5% discount, with no commission charges. During the three months ended March 31, 2012 and 2011, United issued, 35,648 shares and 46,019 shares, respectively, and increased capital by $278,000 and $375,000, respectively through these programs.

United offers its common stock as an investment option in its deferred compensation plan. The common stock component is accounted for as an equity instrument and is reflected in the consolidated balance sheet as common stock issuable. The deferred compensation plan does not allow for diversification once an election is made to invest in United stock and settlement must be accomplished in shares at the time the deferral period is completed. At March 31, 2012 and 2011, United had 90,126 shares and 79,428 shares, respectively, of its common stock that was issuable under the deferred compensation plan.

On February 22, 2011, United entered into a Share Exchange Agreement with the Elm Ridge Parties. Under the Share Exchange Agreement, the Elm Ridge Parties agreed to transfer to the Company 1,551,126 shares of the Company’s common stock in exchange for 16,613 shares of the Company’s cumulative perpetual preferred stock, Series D, and warrants to purchase 1,551,126 common shares with an exercise price of $12.50 per share that expire on August 22, 2013. This exchange transaction did not result in a net increase or decrease to total shareholders’ equity for the year ended December 31, 2011.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
-Number 5
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Regulation S-X (SX)
-Number 210
-Section 02
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-Name Staff Accounting Bulletin (SAB)
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Staff Accounting Bulletin (SAB)
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-Topic 310
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Reclassifications And Reverse Stock Split

3 Months Ended

Mar. 31, 2012

Common and Preferred Stock Issued / Common Stock Issuable And Reclassifications and Reverse Stock Split [Abstract]

Reclassifications and Reverse Stock Split

Note 12 – Reclassifications and Reverse Stock Split

Certain 2011 amounts have been reclassified to conform to the 2012 presentation. On June 17, 2011, United completed a 1-for-5 reverse stock split, whereby each 5 shares of United’s common stock was reclassified into one share of common stock, and each 5 shares of United’s non-voting common stock was reclassified into one share of non-voting common stock. All share and per share amounts for all periods presented have been adjusted to reflect the reverse split as though it had occurred prior to the earliest period presented.

Assets and Liabilities Measured at Fair Value

3 Months Ended

Mar. 31, 2012

Assets and Liabilities Measured at Fair Value [Abstract]

Assets and Liabilities Measured at Fair Value

Note 13 – Assets and Liabilities Measured at Fair Value

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 as of March 31, 2012, December 31, 2011 and March 31, 2011, aggregated by the level in the fair value hierarchy within with those measurements fall (in thousands).


March 31, 2012	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale:
U.S. Government agencies	$	—	$	43,789	$	—	$	43,789
State and political subdivisions		—		22,808		—		22,808
Mortgage-backed securities		—		1,725,068		—		1,725,068
Corporate bonds		—		104,236		350		104,586
Other		—		2,564		—		2,564
Deferred compensation plan assets		2,973		—		—		2,973
Derivative financial instruments		—		73		—		73

Total	$	2,973	$	1,898,538	$	350	$	1,901,861

Liabilities
Deferred compensation plan liability	$	2,973	$	—	$	—	$	2,973
Brokered certificates of deposit		—		61,069		—		61,069
Derivative financial instruments		—		2,599		—		2,599

Total liabilities	$	2,973	$	63,668	$	—	$	66,641


December 31, 2011	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale:
U.S. Government agencies	$	—	$	43,750	$	—	$	43,750
State and political subdivisions		—		26,339		—		26,339
Mortgage-backed securities		—		1,609,909		—		1,609,909
Corporate bonds		—		107,328		350		107,678
Other		—		2,371		—		2,371
Deferred compensation plan assets		2,859		—		—		2,859

Total	$	2,859	$	1,789,697	$	350	$	1,792,906

Liabilities
Deferred compensation plan liability	$	2,859	$	—	$	—	$	2,859
Brokered certificates of deposit		—		13,107		—		13,107
Derivative financial instruments		—		422		—		422

Total liabilities	$	2,859	$	13,529	$	—	$	16,388


March 31, 2011	Level 1		Level 2		Level 3		Total
Assets
Securities available for sale:
U.S. Government agencies	$	—	$	93,778	$	—	$	93,778
State and political subdivisions		—		27,833		—		27,833
Mortgage-backed securities		—		1,410,411		4,434		1,414,845
Corporate bonds		—		99,236		350		99,586
Other		—		2,452		—		2,452
Deferred compensation plan assets		3,107		—		—		3,107

Total	$	3,107	$	1,633,710	$	4,784	$	1,641,601

Liabilities
Deferred compensation plan liability	$	3,107	$	—	$	—	$	3,107

Total liabilities	$	3,107	$	—	$	—	$	3,107

The following table shows a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs that are classified as Level 3 values (in thousands).


	Securities Available for Sale
	Three Months Ended March 31,
	2012		2011
Balance at beginning of period	$	350	$	5,284
Amounts included in earnings		—		(8	)
Paydowns		—		(492	)

Balance at end of period	$	350	$	4,784

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

United may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. The table below presents United’s assets and liabilities measured at fair value on a nonrecurring basis as of March 31, 2012, December 31, 2011 and March 31, 2011, aggregated by the level in the fair value hierarchy within which those measurements fall (in thousands).


	Level 1		Level 2		Level 3		Total
March 31, 2012
Assets
Loans	$	—	$	—	$	176,632	$	176,632
Foreclosed properties		—		—		27,675		27,675

Total	$	—	$	—	$	204,307	$	204,307

December 31, 2011
Assets
Loans	$	—	$	—	$	133,828	$	133,828
Foreclosed properties		—		—		29,102		29,102

Total	$	—	$	—	$	162,930	$	162,930

March 31, 2011
Assets
Loans	$	—	$	—	$	32,241	$	32,241
Loans held for sale		—		—		80,629		80,629
Foreclosed properties		—		—		53,102		53,102

Total	$	—	$	—	$	165,972	$	165,972

Assets and Liabilities Not Measured at Fair Value

For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that United would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts.

The short maturity of United’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and cash equivalents, mortgage loans held for sale, federal funds purchased, repurchase agreements and other short-term borrowings. The fair value of securities available for sale equals the balance sheet value.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of United’s entire holdings. Because no ready market exists for a significant portion of United’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include the mortgage banking operation, brokerage network, deferred income taxes, premises and equipment and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

Off-balance sheet instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial.

The carrying amount and fair values for other financial instruments included in United’s balance sheet at March 31, 2012, December 31, 2011 and March 31, 2011 were as follows (in thousands).


	March 31, 2012
	Carrying		Fair Value Level
	Amount		Level 1		Level 2		Level 3		Total
Assets:
Securities held to maturity	$	303,636	$	—	$	318,490	$	—	$	318,490
Loans, net		4,013,965		—		—		3,825,482		3,825,482

Liabilities:
Deposits		6,000,539		—		5,986,925		—		5,986,925
Federal Home Loan Bank advances		215,125		—		217,033		—		217,033
Long-term debt		120,245		—		—		113,891		113,891


	December 31, 2011				March 31, 2011
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Assets:
Securities held to maturity	$	330,203	$	343,531	$	245,430	$	248,361
Loans, net		3,995,146		3,800,343		4,061,251		3,933,549

Liabilities:
Deposits		6,097,983		6,093,772		6,597,748		6,588,398
Federal Home Loan Bank advances		40,625		43,236		55,125		58,965
Long-term debt		120,225		115,327		150,166		124,603

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details