BORROWED FUNDS

3 Months Ended

Mar. 31, 2020

NOTE 8 - BORROWED FUNDS

Short-term borrowed funds

Short-term borrowed funds were $1.1 billion and $274 million as of March 31, 2020 and December 31, 2019, respectively.

Long-term borrowed funds

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



(in millions)	March 31, 2020		December 31, 2019
Parent Company:
2.375% fixed-rate senior unsecured debt, due July 2021		$350		$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		750
2.850% fixed-rate senior unsecured notes, due July 2026	496		496
2.500% fixed-rate senior unsecured notes, due February 2030	298		—
CBNA’s Global Note Program:
2.250% senior unsecured notes, due March 2020	—		700
2.678% floating-rate senior unsecured notes, due March 2020 ⁽¹⁾	—		300
2.217% floating-rate senior unsecured notes, due May 2020 ⁽¹⁾	250		250
2.200% senior unsecured notes, due May 2020	500		500
2.250% senior unsecured notes, due October 2020	753		750
2.550% senior unsecured notes, due May 2021	1,005		991
3.250% senior unsecured notes, due February 2022	724		711
2.424% floating-rate senior unsecured notes, due February 2022 ⁽¹⁾	299		299
2.457% floating-rate senior unsecured notes, due May 2022 ⁽¹⁾	250		250
2.650% senior unsecured notes, due May 2022	514		501
3.700% senior unsecured notes, due March 2023	532		515
2.325% floating-rate senior unsecured notes, due March 2023 ⁽¹⁾	249		249
3.750% senior unsecured notes, due February 2026	555		521
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 0.56% weighted average rate, due through 2038	8,007		5,008
Other	16		18
Total long-term borrowed funds		$16,437		$14,047

⁽¹⁾Rate disclosed reflects the floating rate as of March 31, 2020 or final rate, as applicable.

The Parent Company’s long-term borrowed funds as of March 31, 2020 and December 31, 2019 included principal balances of $2.8 billion and $2.5 billion, respectively, and unamortized deferred issuance costs and/or discounts of ($9) million and ($8) million, respectively. CBNA and other subsidiaries’ long-term borrowed funds as of March 31, 2020 and December 31, 2019 included principal balances of $13.5 billion and $11.5 billion, respectively, with unamortized deferred issuance costs and/or discounts of ($10) million and ($13) million, respectively, and hedging basis adjustments of $141 million and $50 million, respectively. See Note 9 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 $12.9 billion and $9.8 billion at March 31, 2020 and December 31, 2019, respectively. The Company’s available FHLB borrowing capacity was $4.0 billion and $7.2 billion at March 31, 2020 and December 31, 2019, 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 March 31, 2020, the Company’s unused secured borrowing capacity was approximately $37.0 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 March 31, 2020:



(in millions)	Parent Company		CBNA and Other Subsidiaries		Consolidated
Year
2020		$—		$1,508		$1,508
2021	349		9,010		9,359
2022	349		1,793		2,142
2023	—		782		782
2024	292		—		292
2025 and thereafter	1,793		561		2,354
Total		$2,783		$13,654		$16,437