Securities Sold under Agreement to Repurchase and Other Borrowings

12 Months Ended

Dec. 31, 2012

Deposits/Federal Home Loan Bank Advances/Securities Sold under Agreement to Repurchase and Other Borrowings/Regulatory Capital Requirements [Abstract]

SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE AND OTHER BORROWINGS

12. SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE AND OTHER BORROWINGS

The following is a summary of securities sold under an agreement to repurchase and other borrowings:

	December 31,
	2012					2011
	(Dollars in thousands)
	Amount		Weighted average rate			Amount		Weighted average rate
Securities sold under agreement to repurchase-term	$	90,000		4.01	%	$	90,000		4.01	%
Other borrowings		598		4.00	%		618		4.00	%
Total repurchase agreements and other	$	90,598		4.01	%	$	90,618		4.01	%

	December 31,
	2012			2011			2010
	(Dollars in thousands)
Average daily balance during the year	$	90,608		$	94,477		$	97,717
Average interest rate during the year		4.01	%		3.90	%		3.55	%
Maximum month end balance during the year	$	90,616		$	100,446		$	98,815
Weighted average interest rate at year end		4.01	%		4.01	%		3.79	%

The repurchase agreements are in three tranches of $30.0 million each which mature on January 26, 2016, September 26, 2016 and February 20, 2017. There are prepayment penalties on these repurchase agreements of $3.1 million, $4.1 million and $4.2 million, respectively

Securities sold under agreements to repurchase are secured primarily by mortgage-backed securities with a fair value of approximately $125.5 million at December 31, 2012 and $115.4 million at December 31, 2011. Securities sold under agreements to repurchase are typically held by the brokerage firm in a wholesale transaction and by an independent third party when they are for retail customers. At maturity, the securities underlying the agreements are returned to United Community. Other borrowings consist of a match-funding advance related to a commercial participation loan aggregating $598,000 at December 31, 2012. At December 31, 2011, other borrowings consisted of the aforementioned match-funding advance of $618,000.

The Holding Company Order requires United Community to obtain regulatory approval at the holding company level prior to incurring debt. As of December 31, 2012, United Community had no debt outstanding. United Community does not intend to seek approval to borrow additional funds in the near term.