BORROWED FUNDS

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



	December 31,
(in millions)	2018		2017
Federal funds purchased		$820		$460
Securities sold under agreements to repurchase	336		355
Other short-term borrowed funds ⁽¹⁾	1,653		1,856
Total short-term borrowed funds		$2,809		$2,671

⁽¹⁾ December 31, 2018 includes $1.5 billion of debt issued under CBNA’s Global Bank Note Program maturing within one year, with unamortized deferred issuance costs and/or discounts of ($1) million and other basis adjustments of ($8) million. December 31, 2017 includes $750 million of debt issued under CBNA’s Global Bank Note Program maturing within one year, with unamortized deferred issuance costs and/or discounts of ($1) million and other basis adjustments of ($4) million.

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, except ratio data)	2018			2017			2016
Weighted-average interest rate at year-end: ⁽¹⁾
Federal funds purchased and securities sold under agreements to repurchase	1.72		%	0.74		%	0.26		%
Other short-term borrowed funds	2.50			1.72			0.94
Maximum amount outstanding at any month-end during the year:
Federal funds purchased and securities sold under agreements to repurchase ⁽²⁾		$1,282			$1,174			$1,522
Other short-term borrowed funds	2,509			3,508			5,461
Average amount outstanding during the year:
Federal funds purchased and securities sold under agreements to repurchase ⁽²⁾		$654			$776			$947
Other short-term borrowed funds	1,808			2,321			3,207
Weighted-average interest rate during the year: ⁽¹⁾
Federal funds purchased and securities sold under agreements to repurchase	0.92		%	0.36		%	0.09		%
Other short-term borrowed funds	2.42			1.32			0.64

⁽¹⁾Rates exclude certain hedging costs.

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

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



	December 31,
(in millions)	2018		2017
Parent Company:
2.375% fixed-rate senior unsecured debt, due 2021		$349		$349
4.150% fixed-rate subordinated debt, due 2022	348		348
5.158% fixed-to-floating rate callable subordinated debt, due 2023 ⁽¹⁾	—		333
3.750% fixed-rate subordinated debt, due 2024	250		250
4.023% fixed-rate subordinated debt, due 2024	42		42
4.350% fixed-rate subordinated debt, due 2025	249		249
4.300% fixed-rate subordinated debt, due 2025	749		749
Banking Subsidiaries:
2.450% senior unsecured notes, due 2019 ^{(2) (3)}	—		743
2.500% senior unsecured notes, due 2019 ^{(2) (3)}	—		741
2.250% senior unsecured notes, due 2020 ⁽²⁾	691		692
3.278% floating-rate senior unsecured notes, due 2020 ^{(2) (4)}	300		299
3.247% floating-rate senior unsecured notes, due 2020 ^{(2) (4)}	250		249
2.200% senior unsecured notes, due 2020 ⁽²⁾	499		498
2.250% senior unsecured notes, due 2020 ⁽²⁾	738		742
2.550% senior unsecured notes, due 2021⁽²⁾	964		964
3.487% floating-rate senior unsecured notes, due 2022 ^{(2) (4)}	249		249
2.650% senior unsecured notes, due 2022 ⁽²⁾	487		491
3.700% senior unsecured notes, due 2023 ⁽²⁾	502		—
3.753% floating-rate senior unsecured notes, due 2023 ^{(2) (4)}	249		—
Federal Home Loan Bank advances, 2.725% weighted average rate, due through 2038	7,508		3,761
Other	9		16
Total long-term borrowed funds		$14,433		$11,765

⁽¹⁾ Redeemed on June 29, 2018.

⁽²⁾ Issued under CBNA’s Global Bank Note Program.

⁽³⁾Reclassified to short-term borrowed funds.

⁽⁴⁾ Rate disclosed reflects the floating rate as of December 31, 2018.

The Parent Company’s long-term borrowed funds as of December 31, 2018 and 2017 included principal balances of $2.0 billion and $2.3 billion, respectively, and unamortized deferred issuance costs and/or discounts of ($5) million for each period. The banking subsidiaries’ long-term borrowed funds as of December 31, 2018 and 2017 include principal balances of $12.5 billion and $9.5 billion, respectively, with unamortized deferred issuance costs and/or discounts of ($14) million and ($19) million, respectively, and hedging basis adjustments of ($58) million and ($63) million, respectively. See Note 13 “Derivatives” for further information about the Company’s hedging of certain long-term borrowed funds.

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 $13.0 billion and $9.4 billion at December 31, 2018 and 2017, respectively. The Company’s available FHLB borrowing capacity was $4.8 billion and $8.0 billion at December 31, 2018 and 2017, respectively. Citizens can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, including certain loans, is pledged to support this borrowing capacity. At December 31, 2018, the Company’s unused secured borrowing capacity was approximately $36.2 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, 2018 is presented below:



(in millions)	Parent Company		Banking Subsidiaries		Consolidated
Year
2019		$—		$—		$—
2020	—		9,982		9,982
2021	349		967		1,316
2022	348		739		1,087
2023	—		751		751
2024 and thereafter	1,290		7		1,297
Total		$1,987		$12,446		$14,433