Deposits and Borrowings

6 Months Ended

Jun. 30, 2020

NOTE 7—DEPOSITS AND BORROWINGS

Our deposits represent our largest source of funding for our assets and operations, which include checking accounts, money market deposits, negotiable order of withdrawals, savings deposits and time deposits. We also use a variety of other funding sources including short-term borrowings, senior and subordinated notes, securitized debt obligations and other borrowings. In addition, we utilize FHLB advances, which are secured by certain portions of our loan and investment securities portfolios. Securitized debt obligations are presented separately on our consolidated balance sheets, as they represent obligations of consolidated securitization trusts, while federal funds purchased and securities loaned or sold under agreements to repurchase, senior and subordinated notes and other borrowings, including FHLB advances, are included in other debt on our consolidated balance sheets.

Our total short-term borrowings generally consist of federal funds purchased and securities loaned or sold under agreements to repurchase and short-term FHLB advances. Our long-term debt consists of borrowings with an original contractual maturity of greater than one year. The following tables summarize the components of our deposits, short-term borrowings and long-term debt as of June 30, 2020 and December 31, 2019. The carrying value presented below for these borrowings includes unamortized debt premiums and discounts, net of debt issuance costs and fair value hedge accounting adjustments.

Table 7.1: Components of Deposits, Short-Term Borrowings and Long-Term Debt



(Dollars in millions)	June 30, 2020		December 31, 2019
Deposits:
Non-interest-bearing deposits	$	29,055	$	23,488
Interest-bearing deposits⁽¹⁾	275,183		239,209
Total deposits	$	304,238	$	262,697
Short-term borrowings:
Federal funds purchased and securities loaned or sold under agreements to repurchase	$	573	$	314
FHLB advances	0		7,000
Total short-term borrowings	$	573	$	7,314



	June 30, 2020						December 31, 2019
(Dollars in millions)	Maturity Dates	Stated Interest Rates	Weighted-Average Interest Rate		Carrying Value		Carrying Value
Long-term debt:
Securitized debt obligations	2020-2026	0.53% - 3.01%	1.77	%	$	15,761	$	17,808
Senior and subordinated notes:
Fixed unsecured senior debt⁽²⁾	2020-2029	0.80 - 4.75	2.81		21,701		23,302
Floating unsecured senior debt	2020-2023	0.81 - 1.91	1.01		2,008		2,695
Total unsecured senior debt			2.65		23,709		25,997
Fixed unsecured subordinated debt	2023-2026	3.38 - 4.20	3.78		4,772		4,475
Total senior and subordinated notes					28,481		30,472
Other long-term borrowings:
Finance lease liabilities	2020-2031	1.63 - 9.91	3.71		85		103
Total other long-term borrowings					85		103
Total long-term debt					$	44,327	$	48,383
Total short-term borrowings and long-term debt					$	44,900	$	55,697

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⁽¹⁾	Includes $5.9 billion and $6.5 billion of time deposits in denominations in excess of the $250,000 federal insurance limit as of June 30, 2020 and December 31, 2019, respectively.

⁽²⁾

Includes $1.4 billion of EUR-denominated unsecured notes as of both June 30, 2020 and December 31, 2019.