BORROWED FUNDS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

BORROWED FUNDS

NOTE 13 - BORROWED FUNDS

Short-term borrowed funds

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

    

	December 31,
(in millions)	2021	2020
Securities sold under agreements to repurchase	$1	$231
Other short-term borrowed funds	73	12
Total short-term borrowed funds	$74	$243

Long-term borrowed funds

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

	December 31,
(in millions)	2021	2020
Parent Company:
2.375% fixed-rate senior unsecured debt, due July 2021(1)	$—	$350
4.150% fixed-rate subordinated debt, due September 2022(2)(3)	168	182
3.750% fixed-rate subordinated debt, due July 2024(2)(3)	90	159
4.023% fixed-rate subordinated debt, due October 2024(2)(3)	17	25
4.350% fixed-rate subordinated debt, due August 2025(2)(3)	133	193
4.300% fixed-rate subordinated debt, due December 2025(2)(3)	336	450
2.850% fixed-rate senior unsecured notes, due July 2026	498	497
2.500% fixed-rate senior unsecured notes, due February 2030	298	297
3.250% fixed-rate senior unsecured notes, due April 2030	745	745
3.750% fixed-rate reset subordinated debt, due February 2031(2)	69	—
4.300% fixed-rate reset subordinated debt, due February 2031(2)	135	—
4.350% fixed-rate reset subordinated debt, due February 2031(2)	60	—
2.638% fixed-rate subordinated debt, due September 2032(3)	550	543
CBNA’s Global Note Program:
2.550% senior unsecured notes, due May 2021	—	1,003
3.250% senior unsecured notes, due February 2022	700	716
0.845% floating-rate senior unsecured notes, due February 2022(4)	300	299
0.932% floating-rate senior unsecured notes, due May 2022(4)	250	250
2.650% senior unsecured notes, due May 2022	503	510
3.700% senior unsecured notes, due March 2023	512	527
1.170% floating-rate senior unsecured notes, due March 2023(4)	250	249
2.250% senior unsecured notes, due April 2025	746	746
3.750% senior unsecured notes, due February 2026	524	551
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 0.852% weighted average rate, due through 2041	19	19
Other	29	35
Total long-term borrowed funds	$6,932	$8,346

(1) Notes were redeemed on June 28, 2021.

(2) December 31, 2021 balances reflect the February 2021 completion of $265 million in private exchange offers for five series of outstanding subordinated notes whereby participants received newly issued 3.750%, 4.300%, and 4.350% fixed-rate reset subordinated notes due 2031 which are redeemable by the Company five years prior to their maturity.

(3) December 31, 2020 balances reflect the September 2020 completion of (i) $621 million in private exchange offers for five series of outstanding subordinated notes whereby participants received a combination of the Company’s newly issued 2.638% fixed-rate subordinated notes due 2032 and an additional cash payment and (ii) $11 million in related cash tender offers whereby validly tendered and accepted subordinated notes were purchased by Citizens and subsequently cancelled.

(4) Rate disclosed reflects the floating rate as of December 31, 2021, or final floating rate as applicable.

The Parent Company’s long-term borrowed funds as of December 31, 2021 and 2020 included principal balances of $3.2 billion and $3.5 billion, respectively, and unamortized deferred issuance costs and/or discounts of $80 million and $90 million, respectively. CBNA and other subsidiaries’ long-term borrowed funds as of December 31, 2021 and 2020 included principal balances of $3.8 billion and $4.8 billion, respectively, with unamortized deferred issuance costs and/or discounts of $7 million and $11 million, respectively, and hedging basis adjustments of $42 million and $112 million, respectively. See Note 14 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 primarily by residential mortgages and home equity products 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 $2.3 billion and $3.2 billion at December 31, 2021 and 2020, respectively. The Company’s available FHLB borrowing capacity was $15.9 billion and $13.9 billion at December 31, 2021 and 2020, 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, 2021, the Company’s unused secured borrowing capacity was approximately $63.0 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 December 31, 2021:

(in millions)	Parent Company	CBNA and Other Subsidiaries	Consolidated
Year
2022	$168	$1,763	$1,931
2023	—	765	765
2024	107	1	108
2025	469	760	1,229
2026	498	524	1,022
2027 and thereafter	1,857	20	1,877
Total	$3,099	$3,833	$6,932