NOTE J—SHORT-TERM BORROWINGS

At December 31, 2012 and 2011, short-term borrowings and the related weighted-average interest rates were as follows:


	2012				2011
			Weighted-				Weighted-
(Dollars in thousands)			Average				Average
	Amount		Rate		Amount		Rate
Federal funds purchased	$	5,446		0.20%	$	7,120		0.20%
Securities sold under agreements to repurchase		209,516		0.09%		247,646		0.07%

Total	$	214,962			$	254,766

Federal funds purchased and securities sold under agreements to repurchase have been a significant source of funds for the company. United has various unused lines of credit available from certain of its correspondent banks in the aggregate amount of $234,000,000. These lines of credit, which bear interest at prevailing market rates, permit United to borrow funds in the overnight market, and are renewable annually subject to certain conditions.

The following table shows the distribution of United’s federal funds purchased and securities sold under agreements to repurchase and the weighted-average interest rates thereon at the end of each of the last three years. Also provided are the maximum amount of borrowings and the average amounts of borrowings as well as weighted-average interest rates for the last three years.


(Dollars in thousands)	Federal Funds Purchased		Securities Sold Under Agreements To Repurchase
At December 31:
2012	$	5,446	$	209,516
2011		7,120		247,646
2010		8,542		183,097
Weighted-average interest rate at year-end:
2012		0.2%		0.1%
2011		0.2%		0.1%
2010		0.2%		0.0%
Maximum amount outstanding at any month’s end:
2012		$ 23,100		$ 273,041
2011		20,440		274,546
2010		25,325		305,658
Average amount outstanding during the year:
2012		$ 16,314		$ 261,558
2011		13,377		242,371
2010		15,871		269,142
Weighted-average interest rate during the year:
2012		0.2%		0.1%
2011		0.2%		0.1%
2010		0.2%		0.0%

At December 31, 2012, all the repurchase agreements were in overnight accounts. The rates offered on these funds vary according to movements in the federal funds and short-term investment market rates.

United has a $10,000,000 line of credit with an unrelated financial institution to provide for general liquidity needs. The line is an unsecured, revolving line of credit. The line is renewable on a 360 day basis and carries an indexed, floating-rate of interest. The line requires compliance with various financial and nonfinancial covenants. At December 31, 2012, United had no outstanding balance under this credit.

Effective December 31, 2011, United Bank (VA) no longer participates in the Treasury Investment program, which is essentially the U.S. Treasury’s savings account for companies depositing employment and other tax payments. All amounts due to the U.S. Treasury were paid by year-end 2011.

Interest paid on short-term borrowings approximated $304,000, $464,000 and $2,000 in 2012, 2011 and 2010, respectively.