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, 2013, the total carrying value of loans pledged as collateral for FHLB advances approximated $3,065,080,000. United had an unused borrowing amount as of December 31, 2013 of approximately $1,413,927,000 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, 2013 and 2012, FHLB advances and the related weighted-average interest rates were as follows:


	2013								2012
(Dollars in thousands)	Amount		Weighted- Average Contractual Rate			Weighted- Average Effective Rate			Amount		Weighted- Average Contractual Rate			Weighted- Average Effective Rate
FHLB advances	$	592,069		0.56	%		0.56	%	$	186,411		2.17	%		2.17	%

Overnight funds of $215,000,000 were included in the $592,069,000 above at December 31, 2013. Overnight funds of $100,000,000 were included in the $186,411,000 above at December 31, 2012. The weighted-average effective rate considers the effect of any interest rate swaps designated as fair value hedges outstanding at year-end 2013 and 2012 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, 2013, 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, 2013 and 2012, the outstanding balance of the Debentures was $198,628,000 and $198,515,000, 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.

The Trust Preferred Securities currently qualify as Tier 1 regulatory capital of United for regulatory purposes. In July of 2013, United’s primary federal regulator, the Federal Reserve, published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Capital Rules grandfathers United’s Trust Preferred Securities as Tier 1 capital under the limitations for restricted capital elements in the general risk-based capital rules. As a result, beginning in 2015, United’s Trust Preferred Securities will be subject to a limit of 25 percent of Tier 1 capital elements excluding any non-qualifying capital instruments and after all regulatory capital deductions and adjustments applied to Tier 1 capital, which is substantially similar to the limit in the general risk-based capital rules. Trust preferred securities no longer included in United’s Tier 1 capital may be included as a component of Tier 2 capital on a permanent basis without phase-out.

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

(Dollars in thousands)

Description

Issuance Date

Amount of
Capital
Securities
Issued

Interest Rate

Maturity Date

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, 2013 and 2012, the Debentures and their related weighted-average interest rates were as follows:


	2013					2012
(Dollars in thousands)	Amount		Weighted- Average Rate			Amount		Weighted- Average Rate
Century Trust	$	8,800		10.88	%	$	8,800		10.88	%
Sequoia Trust I		2,065		10.18	%		2,064		10.18	%
United Statutory Trust III		20,619		3.10	%		20,619		3.16	%
United Statutory Trust IV		25,774		3.09	%		25,774		3.16	%
United Statutory Trust V		51,547		1.80	%		51,547		1.91	%
United Statutory Trust VI		30,928		1.54	%		30,928		1.61	%
Premier Statutory Trust II		6,186		3.34	%		6,186		3.44	%
Premier Statutory Trust III		8,248		1.98	%		8,248		2.05	%
Premier Statutory Trust IV		14,433		1.80	%		14,433		1.86	%
Premier Statutory Trust V		10,310		1.85	%		10,310		1.92	%
Centra Statutory Trust I		9,859		2.54	%		9,803		2.60	%
Centra Statutory Trust II		9,859		1.89	%		9,803		1.99	%

Total	$	198,628				$	198,515

At December 31, 2013, the scheduled maturities of long-term borrowings were as follows:


Year	Amount
(In thousands)
2014	$	321,388
2015		4,395
2016		622
2017		383
2018 and thereafter		248,909


Total	$	575,697

Interest paid on long-term borrowings approximated $8,846,000, $14,370,000 and $16,335,000 in 2013, 2012 and 2011, respectively.