BORROWED FUNDS

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

BORROWED FUNDS

NOTE 8 - BORROWED FUNDS

Short-term borrowed funds

Short-term borrowed funds were $25 million and $74 million as of March 31, 2022 and December 31, 2021, respectively.

Long-term borrowed funds

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

(in millions)	March 31, 2022	December 31, 2021
Parent Company:
4.150% fixed-rate subordinated debt, due September 2022	$168	$168
3.750% fixed-rate subordinated debt, due July 2024	90	90
4.023% fixed-rate subordinated debt, due October 2024	17	17
4.350% fixed-rate subordinated debt, due August 2025	133	133
4.300% fixed-rate subordinated debt, due December 2025	337	336
2.850% fixed-rate senior unsecured notes, due July 2026	498	498
2.500% fixed-rate senior unsecured notes, due February 2030	298	298
3.250% fixed-rate senior unsecured notes, due April 2030	745	745
3.750% fixed-rate reset subordinated debt, due February 2031	69	69
4.300% fixed-rate reset subordinated debt, due February 2031	135	135
4.350% fixed-rate reset subordinated debt, due February 2031	60	60
2.638% fixed-rate subordinated debt, due September 2032	551	550
CBNA’s Global Note Program:
3.250% senior unsecured notes, due February 2022(1)	—	700
0.845% floating-rate senior unsecured notes, due February 2022(1)(2)	—	300
1.318% floating-rate senior unsecured notes, due May 2022(2)	250	250
2.650% senior unsecured notes, due May 2022	500	503
3.700% senior unsecured notes, due March 2023	504	512
1.933% floating-rate senior unsecured notes, due March 2023(2)	250	250
2.250% senior unsecured notes, due April 2025	747	746
3.750% senior unsecured notes, due February 2026	498	524
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 0.774% weighted average rate, due through 2041	20	19
Other	24	29
Total long-term borrowed funds	$5,894	$6,932

(1) Notes were redeemed on January 14, 2022.

(2) Rate disclosed reflects the floating rate as of March 31, 2022, or final floating rate as applicable.

The Parent Company’s long-term borrowed funds as of March 31, 2022 and December 31, 2021 included principal balances of $3.2 billion, and unamortized deferred issuance costs and/or discounts of $78 million and $80 million, respectively. CBNA and other subsidiaries’ long-term borrowed funds as of March 31, 2022 and December 31, 2021 included principal balances of $2.8 billion and $3.8 billion, respectively, with unamortized deferred issuance costs and/or discounts of $6 million and $7 million, respectively, and hedging basis adjustments of $5 million and $42 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 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 $2.8 billion and $2.3 billion at March 31, 2022 and December 31, 2021, respectively. The Company’s available FHLB borrowing capacity was $16.4 billion and $15.9 billion at March 31, 2022 and December 31, 2021, 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, 2022, the Company’s unused secured borrowing capacity was approximately $63.2 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, 2022:

(in millions)	Parent Company	CBNA and Other Subsidiaries	Consolidated
Year
2022	$168	$755	$923
2023	—	758	758
2024	107	1	108
2025	469	760	1,229
2026	498	499	997
2027 and thereafter	1,859	20	1,879
Total	$3,101	$2,793	$5,894