NOTE K—LONG-TERM BORROWINGS

United’s subsidiary banks are members of the Federal Home Loan Bank (FHLB). Membership in the FHLB makes available short-term and long-term borrowings from collateralized advances. All FHLB borrowings are collateralized by a mix of single-family residential mortgage loans, commercial loans and investment securities. At December 31, 2012, the total carrying value of loans pledged as collateral for FHLB advances approximated $3,384,767,000. United had an unused borrowing amount as of December 31, 2012 of approximately $1,631,370,000 available subject to delivery of collateral after certain trigger points. Advances may be called by the FHLB or redeemed by United based on predefined factors and penalties.

At December 31, 2012 and 2011, FHLB advances and the related weighted-average interest rates were as follows:

2012

2011

(Dollars in thousands)

Amount

Weighted-
Average
Contractual
Rate

Weighted-
Average
Effective
Rate

Amount

Weighted-
Average
Contractual
Rate

Weighted-
Average
Effective
Rate

FHLB advances

$ 186,411

2.17%

$ 141,809

4.17%

Overnight funds of $100,000,000 were included in the $186,411,000 above at December 31, 2012. No overnight funds were included in the $141,809,000 above at December 31, 2011. The weighted-average effective rate considers the effect of any interest rate swaps designated as fair value hedges outstanding at year-end 2012 and 2011 to manage interest rate risk on its long-term debt. Additional information is provided in Note P, Notes to Consolidated Financial Statements.

At December 31, 2012, United had a total of twelve statutory business trusts that were formed for the purpose of issuing or participating in pools of trust preferred capital securities (Capital Securities) with the proceeds invested in junior subordinated debt securities (Debentures) of United. The Debentures, which are subordinate and junior in right of payment to all present and future senior indebtedness and certain other financial obligations of United, are the sole assets of the trusts and United’s payment under the Debentures is the sole source of revenue for the trusts. At December 31, 2012 and 2011, the outstanding balance of the Debentures was $198,515,000 and $203,557,000, respectively, and was included in the category of long-term debt on the Consolidated Balance Sheets entitled “Other long-term borrowings.” The Capital Securities are not included as a component of shareholders’ equity in the Consolidated Balance Sheets. United fully and unconditionally guarantees each individual trust’s obligations under the Capital Securities.

Under the provisions of the subordinated debt, United has the right to defer payment of interest on the subordinated debt at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debt are deferred, the dividends on the Capital Securities are also deferred. Interest on the subordinated debt is cumulative.

As part of the acquisition of Centra on July 8, 2011, United assumed all the obligations of Centra and its subsidiaries. Centra had two statutory business trusts that were formed for the purpose of issuing or participating in Capital Securities with the proceeds invested in Debentures of Centra. At merger, the outstanding balance of Centra’s Debentures was $20 million.

The Trust Preferred Securities currently qualify as Tier 1 regulatory capital of United for regulatory purposes.

Information related to United’s statutory trusts is presented in the table below:


Description	Issuance Date	Amount of Capital Securities Issued	Interest Rate	Maturity Date
(Dollars in thousands)
Century Trust	March 23, 2000	$ 8,800	10.875% Fixed		March 8, 2030
Sequoia Trust I	March 28, 2001	$ 2,000	10.18% Fixed		June 8, 2031
United Statutory Trust III	December 17, 2003	$ 20,000	3-month LIBOR + 2.85%		December 17, 2033
United Statutory Trust IV	December 19, 2003	$ 25,000	3-month LIBOR + 2.85%		January 23, 2034
United Statutory Trust V	July 12, 2007	$ 50,000	3-month LIBOR + 1.55%		October 1, 2037
United Statutory Trust VI	September 20, 2007	$ 30,000	3-month LIBOR + 1.30%		December 15, 2037
Premier Statutory Trust II	September 25, 2003	$ 6,000	3-month LIBOR + 3.10%		October 8, 2033
Premier Statutory Trust III	May 16, 2005	$ 8,000	3-month LIBOR + 1.74%		June 15, 2035
Premier Statutory Trust IV	June 20, 2006	$ 14,000	3-month LIBOR + 1.55%		September 23, 2036
Premier Statutory Trust V	December 14, 2006	$ 10,000	3-month LIBOR + 1.61%		March 1, 2037
Centra Statutory Trust I	September 20, 2004	$ 10,000	3-month LIBOR + 2.29%		September 20, 2034
Centra Statutory Trust II	June 15, 2006	$ 10,000	3-month LIBOR + 1.65%		July 7, 2036

At December 31, 2012 and 2011, the Debentures and their related weighted-average interest rates were as follows:


	2012				2011
(Dollars in thousands)	Amount		Weighted- Average Rate		Amount		Weighted- Average Rate
Century Trust	$	8,800		10.88%	$	8,800		10.88%
Sequoia Trust I		2,064		10.18%		7,220		10.18%
United Statutory Trust III		20,619		3.16%		20,619		3.41%
United Statutory Trust IV		25,774		3.16%		25,774		3.28%
United Statutory Trust V		51,547		1.91%		51,547		6.67%
United Statutory Trust VI		30,928		1.61%		30,928		6.60%
Premier Statutory Trust II		6,186		3.44%		6,186		3.50%
Premier Statutory Trust III		8,248		2.05%		8,248		2.29%
Premier Statutory Trust IV		14,433		1.86%		14,433		2.12%
Premier Statutory Trust V		10,310		1.92%		10,310		6.62%
Centra Statutory Trust I		9,803		2.60%		9,746		2.85%
Centra Statutory Trust II		9,803		1.99%		9,746		2.05%

Total	$	198,515			$	203,557

At December 31, 2012, the scheduled maturities of long-term borrowings were as follows:


Year	Amount
(In thousands)
2013	$	28,955
2014		26,446
2015		4,531
2016		653
2017 and thereafter		224,341


Total	$	284,926

Interest paid on long-term borrowings approximated $14,370,000, $16,335,000 and $29,990,000 in 2012, 2011 and 2010, respectively.