BORROWED FUNDS

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

BORROWED FUNDS

NOTE 9 - BORROWED FUNDS

Short-term borrowed funds

Short-term borrowed funds were $263 million and $74 million as of September 30, 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)	September 30, 2022	December 31, 2021
Parent Company:
4.150% fixed-rate subordinated debt, due September 2022	$—	$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	336	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	555	550
5.641% fixed-rate reset subordinated debt, due May 2037	398	—
CBNA’s Global Note Program:
3.250% senior unsecured notes, due February 2022	—	700
0.845% floating-rate senior unsecured notes, due February 2022(1)	—	300
1.318% floating-rate senior unsecured notes, due May 2022(1)	—	250
2.650% senior unsecured notes, due May 2022	—	503
3.700% senior unsecured notes, due March 2023	496	512
4.592% floating-rate senior unsecured notes, due March 2023(1)	250	250
2.250% senior unsecured notes, due April 2025	747	746
4.119% fixed/floating-rate senior unsecured notes, due May 2025	648	—
3.750% senior unsecured notes, due February 2026	474	524
4.575% fixed/floating-rate senior unsecured notes, due August 2028	798	—
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 3.099% weighted average rate, due through 2041	9,519	19
Other	20	29
Total long-term borrowed funds	$16,286	$6,932

(1) Rate disclosed reflects the floating rate as of September 30, 2022, or final floating rate as applicable.

The Parent Company’s long-term borrowed funds as of September 30, 2022 and December 31, 2021 include principal balances of $3.4 billion and $3.2 billion, respectively, and unamortized deferred issuance costs and/or discounts of $77 million and $80 million, respectively. CBNA and other subsidiaries’ long-term borrowed funds as of September 30, 2022 and December 31, 2021 include principal balances of $13.0 billion and $3.8 billion, respectively, with unamortized deferred issuance costs and/or discounts of $8 million and $7 million, respectively, and hedging basis adjustments of ($29) million and $42 million, respectively. See Note 10 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 $17.4 billion and $2.3 billion at September 30, 2022 and December 31, 2021, respectively. The Company’s available FHLB borrowing capacity was $9.7 billion and $15.9 billion at September 30, 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 September 30, 2022, the Company’s unused secured borrowing capacity was approximately $62.6 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 September 30, 2022:

(in millions)	Parent Company	CBNA and Other Subsidiaries	Consolidated
Year
2022	$—	$2	$2
2023	—	7,000	7,000
2024	106	3,251	3,357
2025	469	1,409	1,878
2026	498	474	972
2027 and thereafter	2,260	817	3,077
Total	$3,333	$12,953	$16,286