BORROWED FUNDS

A summary of the Company’s short-term borrowed funds is presented below:



	December 31,
(in millions)	2016		2015
Federal funds purchased		$533		$—
Securities sold under agreements to repurchase	615		802
Other short-term borrowed funds (primarily current portion of FHLB advances)	3,211		2,630
Total short-term borrowed funds		$4,359		$3,432

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)	2016			2015			2014
Weighted-average interest rate at year-end: ⁽¹⁾
Federal funds purchased and securities sold under agreements to repurchase	0.26		%	0.15		%	0.14		%
Other short-term borrowed funds (primarily current portion of FHLB advances)	0.94			0.44			0.26
Maximum amount outstanding at month-end during the year:
Federal funds purchased and securities sold under agreements to repurchase ⁽²⁾		$1,522			$5,375			$7,022
Other short-term borrowed funds (primarily current portion of FHLB advances)	5,461			7,004			7,702
Average amount outstanding during the year:
Federal funds purchased and securities sold under agreements to repurchase ⁽²⁾		$947			$3,364			$5,699
Other short-term borrowed funds (primarily current portion of FHLB advances)	3,207			5,865			5,640
Weighted-average interest rate during the year: ⁽¹⁾
Federal funds purchased and securities sold under agreements to repurchase	0.09		%	0.22		%	0.12		%
Other short-term borrowed funds (primarily current portion of FHLB advances)	0.64			0.28			0.25

⁽¹⁾Rates exclude certain hedging costs.

⁽²⁾Balances are net of certain short-term receivables associated with reverse repurchase agreements.

A summary of the Company’s long-term borrowed funds is presented below:



	December 31,
(in millions)	2016		2015
Citizens Financial Group, Inc.:
4.150% fixed rate subordinated debt, due 2022 ⁽¹⁾		$347		$350
5.158% fixed-to-floating rate subordinated debt, (LIBOR + 3.56%) callable, due 2023	333		333
3.750% fixed rate subordinated debt, due 2024 ⁽²⁾	250		250
4.023% fixed rate subordinated debt, due 2024 ⁽³⁾	42		331
4.082% fixed rate subordinated debt, due 2025 ⁽⁴⁾	—		331
4.350% fixed rate subordinated debt, due 2025 ⁽⁵⁾	249		250
4.300% fixed rate subordinated debt, due 2025 ⁽⁶⁾	749		750
2.375% fixed rate senior unsecured debt, due 2021 ⁽⁷⁾	348		—
Banking Subsidiaries:
1.600% senior unsecured notes, due 2017 ^{(8) (9)}	—		749
2.300% senior unsecured notes, due 2018 ^{(8) (10)}	745		747
2.450% senior unsecured notes, due 2019 ^{(8) (11)}	747		752
2.500% senior unsecured notes, due 2019 ^(8)(12)	741		—
2.550% senior unsecured notes, due 2021^(8)(13)	965		—
Federal Home Loan advances due through 2033	7,264		5,018
Other	10		25
Total long-term borrowed funds		$12,790		$9,886

⁽¹⁾These balances are composed of: principal balances of $350 million at December 31, 2016 and 2015, as well as the impact of ($3) million of unamortized deferred issuance costs and discount at December 31, 2016.

⁽²⁾ Prior to January 1, 2016, interest was payable at a fixed rate per annum of 4.153%.

⁽³⁾These balances are composed of: principal balance of $42 million and $333 million at December 31, 2016 and 2015, respectively, as well as the impact from interest rate swaps of zero and ($2) million at December 31, 2016 and 2015, respectively. See Note 16 “Derivatives” for further information. In addition, the Company repurchased $125 million and $166 million of these securities on March 7, 2016 and July 28, 2016, respectively.

⁽⁴⁾This subordinated debt was retired in 2016. At December 31, 2015, this balance was composed of a principal balance of $334 million; impact from interest rate swaps of ($3) million at December 31, 2015. See Note 16 “Derivatives” for further information. On July 28, 2016, the Company repurchased $334 million of these securities.

⁽⁵⁾These balances are composed of: principal balances of $250 million at December 31, 2016 and 2015, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016.

⁽⁶⁾These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015, as well as the impact of ($1) million of unamortized deferred issuance costs and discount at December 31, 2016.

⁽⁷⁾This balance is composed of: principal balance of $350 million at December 31, 2016, as well as the impact of ($2) million of unamortized deferred issuance costs and discount at December 31, 2016.

⁽⁸⁾These securities were offered under CBNA’s Global Bank Note Program dated December 1, 2014.

⁽⁹⁾This balance was reclassified to short-term borrowed funds at December 31, 2016. At December 31, 2015 the balance was composed of: principal balances of $750 million; impact from interest rate swaps of ($1) million. See Note 16 “Derivatives” for further information.

⁽¹⁰⁾These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015; impact from interest rate swaps of ($3) million at December 31, 2016 and 2015; and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information.

⁽¹¹⁾These balances are composed of: principal balances of $750 million at December 31, 2016 and 2015; impact from interest rate swaps of zero and $2 million at December 31, 2016 and 2015, respectively; and ($3) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information.

⁽¹²⁾This balance is composed of: principal balance of $750 million at December 31, 2016; impact from interest rate swaps of ($7) million and ($2) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information.

⁽¹³⁾This balance is composed of: principal balance of $1.0 billion at December 31, 2016; impact from interest rate swaps of ($30) million and ($5) million of unamortized deferred issuance costs and discount at December 31, 2016. See Note 16 “Derivatives” for further information.

On March 14, 2016, the Company issued $750 million of CBNA 2.500% fixed-rate senior notes due in 2019, and on May 13, 2016, the Company also issued $1.0 billion of CBNA 2.550% fixed-rate senior notes due in 2021. On July 28, 2016, the Company issued $350 million of 2.375% fixed-rate senior notes due 2021, and used the net proceeds and available cash to repurchase $500 million of its subordinated debt. Specifically, the Company retired $334 million of 4.082% subordinated notes due 2025 and $166 million of 4.023% subordinated notes due 2024. On March 7, 2016, the Company repurchased $125 million of its 4.023% subordinated notes due 2024.

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 $13.4 billion and $11.3 billion at December 31, 2016 and 2015, respectively. The Company’s available FHLB borrowing capacity was $2.8 billion and $4.1 billion at December 31, 2016 and 2015, respectively. The Company can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, such as investment securities and loans, is pledged to provide borrowing capacity at the FRB. At December 31, 2016, the Company’s unused secured borrowing capacity was approximately $33.6 billion, which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity.

A summary of maturities for the Company’s long-term borrowed funds at December 31, 2016 is presented below:



(in millions)	CFG Parent Company		Banking Subsidiaries		Consolidated
Year
2017 or on demand		$—		$—		$—
2018	—		8,000		8,000
2019	—		1,489		1,489
2020	—		2		2
2021	348		970		1,318
2022 and thereafter	1,970		11		1,981
Total		$2,318		$10,472		$12,790