BORROWED FUNDS (Tables)

12 Months Ended

Dec. 31, 2016

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.

Schedule of long-term borrowed funds

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.

Schedule of maturities of long-term borrowed funds

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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details