BORROWED FUNDS

12 Months Ended

Dec. 31, 2019

NOTE 12 - BORROWED FUNDS

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



	December 31,
(in millions)	2019		2018
Securities sold under agreements to repurchase		$265		$336
Federal funds purchased	—		820
Other short-term borrowed funds	9		161
Total short-term borrowed funds		$274		$1,317

The following table presents key data related to the Company’s short-term borrowed funds:



	As of and for the Year Ended December 31,
(dollars in millions, except ratio data)	2019			2018			2017
Weighted-average interest rate at year-end: ⁽¹⁾
Federal funds purchased and securities sold under agreements to repurchase	0.41		%	1.72		%	0.74		%
Other short-term borrowed funds	3.85			2.73			1.33
Maximum amount outstanding at any month-end during the year:
Federal funds purchased and securities sold under agreements to repurchase ⁽²⁾		$1,499			$1,282			$1,174
Other short-term borrowed funds	511			1,110			2,759
Average amount outstanding during the year:
Federal funds purchased and securities sold under agreements to repurchase ⁽²⁾		$599			$654			$776
Other short-term borrowed funds	66			467			1,571
Weighted-average interest rate during the year: ⁽¹⁾
Federal funds purchased and securities sold under agreements to repurchase	1.36		%	0.92		%	0.36		%
Other short-term borrowed funds	2.50			2.10			1.09

⁽¹⁾Rates exclude certain hedging costs.

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

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



	December 31,
(in millions)	2019		2018
Parent Company:
2.375% fixed-rate senior unsecured debt, due July 2021		$349		$349
4.150% fixed-rate subordinated debt, due September 2022	348		348
3.750% fixed-rate subordinated debt, due July 2024	250		250
4.023% fixed-rate subordinated debt, due October 2024	42		42
4.350% fixed-rate subordinated debt, due August 2025	249		249
4.300% fixed-rate subordinated debt, due December 2025	750		749
2.850% fixed-rate senior unsecured notes, due July 2026	496		—
CBNA’s Global Note Program:
2.500% senior unsecured notes, due March 2019	—		748
2.450% senior unsecured notes, due December 2019	—		744
2.250% senior unsecured notes, due March 2020	700		691
2.447% floating-rate senior unsecured notes, due March 2020 ⁽¹⁾	300		300
2.487% floating-rate senior unsecured notes, due May 2020 ⁽¹⁾	250		250
2.200% senior unsecured notes, due May 2020	500		499
2.250% senior unsecured notes, due October 2020	750		738
2.550% senior unsecured notes, due May 2021	991		964
3.250% senior unsecured notes, due February 2022	711		—
2.629% floating-rate senior unsecured notes, due February 2022 ⁽¹⁾	299		—
2.727% floating-rate senior unsecured notes, due May 2022⁽¹⁾	250		249
2.650% senior unsecured notes, due May 2022	501		487
3.700% senior unsecured notes, due March 2023	515		502
2.911% floating-rate senior unsecured notes, due March 2023 ⁽¹⁾	249		249
3.750% senior unsecured notes, due February 2026	521		—
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 2.006% weighted average rate, due through 2038	5,008		7,508
Other	18		9
Total long-term borrowed funds		$14,047		$15,925

⁽¹⁾ Rate disclosed reflects the floating rate as of December 31, 2019.

The Parent Company’s long-term borrowed funds as of December 31, 2019 and 2018 included principal balances of $2.5 billion and $2.0 billion, respectively, and unamortized deferred issuance costs and/or discounts of ($8) million and ($5) million, respectively. CBNA and other subsidiaries’ long-term borrowed funds as of December 31, 2019 and 2018 included principal balances of $11.5 billion and $14.0 billion, respectively, with unamortized deferred issuance costs and/or discounts of ($13) million and ($14) million, respectively, and hedging basis adjustments of $50 million and ($66) million, respectively. See Note 13 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 $9.8 billion and $13.0 billion at December 31, 2019 and 2018, respectively. The Company’s available FHLB borrowing capacity was $7.2 billion and $4.8 billion at December 31, 2019 and 2018, 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, 2019, the Company’s unused secured borrowing capacity was approximately $38.9 billion, which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity.

The following table presents a summary of maturities for the Company’s long-term borrowed funds at December 31, 2019:



(in millions)	Parent Company		CBNA and Other Subsidiaries		Consolidated
Year
2020		$—		$2,504		$2,504
2021	349		5,998		6,347
2022	348		1,767		2,115
2023	—		765		765
2024	292		1		293
2025 and thereafter	1,495		528		2,023
Total		$2,484		$11,563		$14,047