BORROWED FUNDS

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

BORROWED FUNDS

NOTE 8 - BORROWED FUNDS

Short-term borrowed funds

Short-term borrowed funds were $232 million and $3 million as of September 30, 2023 and December 31, 2022, respectively.

Long-term borrowed funds

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

(dollars in millions)	September 30, 2023	December 31, 2022
Parent Company:
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	746	746
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	61
2.638% fixed-rate subordinated debt, due September 2032	561	556
5.641% fixed-rate reset subordinated debt, due May 2037	398	397
CBNA’s Global Note Program:
3.700% senior unsecured notes, due March 2023(1)	—	497
5.676% floating-rate senior unsecured notes, due March 2023(1)(2)	—	250
2.250% senior unsecured notes, due April 2025	748	748
4.119% fixed/floating-rate senior unsecured notes, due May 2025	649	648
6.064% fixed/floating-rate senior unsecured notes, due October 2025	599	598
5.284% fixed/floating-rate senior unsecured notes, due January 2026	449	—
3.750% senior unsecured notes, due February 2026	473	475
4.575% fixed/floating-rate senior unsecured notes, due August 2028	798	797
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 5.594% weighted average rate, due through 2041(3)	7,036	8,519
Secured borrowings, 5.955% weighted average rate, due through 2030(3)(4)	3,245	—
Other	16	19
Total long-term borrowed funds	$17,354	$15,887

(1) Notes were redeemed on February 27, 2023.

(2) Rate disclosed reflects the floating rate as of September 30, 2023, or final floating rate as applicable.

(3) Rate disclosed reflects the weighted average rate as of September 30, 2023.

(4) Collateralized by auto loans. See Note 7 for additional information.

At September 30, 2023, the Company’s long-term borrowed funds includes principal balances of $17.5 billion, unamortized debt issuance costs and discounts of $77 million, and hedging basis adjustments of ($26) million. At December 31, 2022, the Company’s long-term borrowed funds includes principal balances of $16.0 billion, unamortized debt issuance costs and discounts of $85 million, and hedging basis adjustments of ($27) million. 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 sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized FHLB borrowing capacity, primarily for advances and letters of credit, was $13.0 billion and $15.7 billion at September 30, 2023 and December 31, 2022, respectively. The Company’s available FHLB borrowing capacity was $12.7 billion and $11.5 billion at September 30, 2023 and December 31, 2022, 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, 2023, the Company’s unused secured borrowing capacity was approximately $61.3 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, 2023:

(dollars in millions)	Parent Company	CBNA and Other Subsidiaries	Consolidated
Year
2023	$—	$1	$1
2024	107	892	999
2025	469	9,020	9,489
2026	498	2,133	2,631
2027	—	2	2
2028 and thereafter	2,267	1,965	4,232
Total	$3,341	$14,013	$17,354