Borrowed Funds

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowed Funds

BORROWED FUNDSThe following table shows the carrying value of total borrowed funds of $30.8 billion at December 31, 2021 (including adjustments related to accounting hedges, purchase accounting and unamortized original issuance discounts) by remaining contractual maturity:

Table 76: Borrowed Funds

In billions
2022	$	7.2
2023	$	3.8
2024	$	3.7
2025	$	3.2
2026	$	1.8
2027 and thereafter	$	11.1

The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of December 31, 2021 and the carrying values as of December 31, 2021 and 2020.

Table 77: FHLB Borrowings, Senior Debt and Subordinated Debt

	Stated Rate		Maturity	Carrying Value
Dollars in millions	2021		2021	2021		2020
Parent Company
Senior debt	1.15% - 3.50%		2022 - 2032	$	10,369	$	9,573
Subordinated debt	3.90	%	2024	777		805
Junior subordinated debt	0.74	%	2028	205		205
Subtotal				11,351		10,583
Bank
FHLB (a)						3,500
Senior debt	0.00% - 3.50%		2022 - 2043	10,292		14,698
Subordinated debt	2.70% - 5.90%		2022 - 2029	6,014		5,393
Subtotal				16,306		23,591
Total				$	27,657	$	34,174

(a)FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and investment securities.

In Table 77, the carrying values for Parent Company senior and subordinated debt include basis adjustments of $252 million and $28 million, respectively, whereas Bank senior and subordinated debt include basis adjustments of $190 million and $193 million, respectively, related to fair value accounting hedges as of December 31, 2021.

Certain borrowings are reported at fair value, refer to Note 15 Fair Value for more information on those borrowings.

Junior Subordinated Debentures

PNC Capital Trust C, a wholly-owned finance subsidiary of The PNC Financial Services Group, Inc., owns junior subordinated debentures issued by PNC with a carrying value of $205 million. In June 1998, PNC Capital Trust C issued $200 million of trust preferred securities which bear interest at an annual rate of 3 month LIBOR plus 57 basis points. The trust preferred securities are currently redeemable by PNC Capital Trust C at par. In accordance with GAAP, the financial statements of the Trust are not included in our consolidated financial statements.

The obligations of The PNC Financial Services Group, Inc., as the parent of the Trust, when taken collectively, are the equivalent of a full and unconditional guarantee of the obligations of the Trust under the terms of the trust preferred securities. Such guarantee is subordinate in right of payment in the same manner as other junior subordinated debt. There are certain restrictions on our overall ability to obtain funds from our subsidiaries. For additional disclosure on these funding restrictions, see Note 20 Regulatory Matters.

We are subject to certain restrictions, including restrictions on dividend payments, in connection with the outstanding junior subordinated debentures. Generally, if (i) there is an event of default under the debentures, (ii) we elect to defer interest on the debentures, (iii) we exercise our right to defer payments on the related trust preferred securities, or (iv) there is a default under our guarantee of such payment obligations, subject to certain limited exceptions, we would be unable during the period of such default or deferral to make payments on our debt securities that rank equal or junior to the debentures as well as to make payments on our equity securities, including dividend payments.