BORROWED FUNDS

The following is a summary of the Company’s short-term borrowed funds:



	December 31,
(in millions)	2015		2014
Federal funds purchased		$—		$574
Securities sold under agreements to repurchase	802		3,702
Other short-term borrowed funds (primarily current portion of FHLB advances)	2,630		6,253
Total short-term borrowed funds		$3,432		$10,529

Key data related to short-term borrowed funds is presented in the following table:



	As of and for the Year Ended December 31,
(dollars in millions)	2015			2014			2013
Weighted-average interest rate at year-end:
Federal funds purchased and securities sold under agreements to repurchase	0.15		%	0.14		%	0.09		%
Other short-term borrowed funds (primarily current portion of FHLB advances)	0.44			0.26			0.20
Maximum amount outstanding at month-end during the year:
Federal funds purchased and securities sold under agreements to repurchase		$5,375			$7,022			$5,114
Other short-term borrowed funds (primarily current portion of FHLB advances)	7,004			7,702			2,251
Average amount outstanding during the year:
Federal funds purchased and securities sold under agreements to repurchase		$3,364			$5,699			$2,400
Other short-term borrowed funds (primarily current portion of FHLB advances)	5,865			5,640			251
Weighted-average interest rate during the year:
Federal funds purchased and securities sold under agreements to repurchase	0.22		%	0.12		%	0.31		%
Other short-term borrowed funds (primarily current portion of FHLB advances)	0.28			0.25			0.44

The following is a summary of the Company’s long-term borrowed funds:



	December 31,
(in millions)	2015		2014
Citizens Financial Group, Inc.:
4.150% fixed rate subordinated debt, due 2022		$350		$350
5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023 ⁽¹⁾	333		333
4.771% fixed rate subordinated debt, due 2023 ⁽¹⁾	—		333
4.691% fixed rate subordinated debt, due 2024 ⁽¹⁾	—		334
4.153% fixed rate subordinated debt, due 2024 ^{(1) (2)}	250		333
4.023% fixed rate subordinated debt, due 2024 ^{(1) (3)}	331		333
4.082% fixed rate subordinated debt, due 2025 ^{(1) (4)}	331		334
4.350% fixed rate subordinated debt, due 2025	250		—
4.300% fixed rate subordinated debt, due 2025	750		—
Banking Subsidiaries:
1.600% senior unsecured notes, due 2017 ^{(5) (6)}	749		750
2.300% senior unsecured notes, due 2018 ^{(5) (7)}	747		—
2.450% senior unsecured notes, due 2019 ^{(5) (8)}	752		746
Federal Home Loan advances due through 2033	5,018		772
Other	25		24
Total long-term borrowed funds		$9,886		$4,642

⁽¹⁾Borrowed funds with RBS. See Note 19 “Related Party Transactions and Significant Transactions with RBS” for further information.

⁽²⁾Interest is payable until January 1, 2016 at a fixed rate per annum of 4.153% and at a fixed rate per annum of 3.750% thereafter.

⁽³⁾$333 million principal balance of subordinated debt reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information.

⁽⁴⁾$334 million principal balance of subordinated debt reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information.

⁽⁵⁾These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014.

⁽⁶⁾ $750 million principal balance of unsecured notes reflects the impact of $1 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information.

⁽⁷⁾$750 million principal balance of unsecured notes reflects the impact of $3 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information.

⁽⁸⁾$750 million principal balance of unsecured notes reflects the impact of $2 million hedge of interest rate risk on medium term debt using interest rate swaps at December 31, 2015. See Note 16 “Derivatives” for further information.

On December 3, 2015, the Company repurchased $750 million of outstanding subordinated debt instruments held by RBS. The $3 million difference between the repurchase price and the net carrying amount of the repurchased debt was recognized as a gain on extinguishment of the debt. To fund the repurchase, the Company issued $750 million of new subordinated debt with a 4.300% fixed rate and a ten-year maturity.

Advances, lines of credit, and letters of credit from the FHLB are collateralized by pledged mortgages and pledged securities at least sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized borrowing capacity for FHLB advances and letters of credit was $11.3 billion at December 31, 2015 and 2014. The Company’s available FHLB borrowing capacity was $4.1 billion and $3.5 billion at December 31, 2015 and 2014, respectively. The Company can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, such as investment securities and loans, was pledged to provide borrowing capacity at the FRB. At December 31, 2015, the Company’s unused secured borrowing capacity was approximately $32.1 billion, which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity.

The following is a summary of maturities for the Company’s long-term borrowed funds at December 31, 2015:



Year (in millions)	CFG Parent Company		Banking Subsidiaries		Consolidated
2016 or on demand		$—		$—		$—
2017	—		5,764		5,764
2018	—		753		753
2019	—		753		753
2020	—		2		2
2021 and thereafter	2,595		19		2,614
Total		$2,595		$7,291		$9,886