BORROWED FUNDS

12 Months Ended

Dec. 31, 2020

NOTE 12 - BORROWED FUNDS

Short-term borrowed funds

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


	December 31,
(in millions)	2020	2019
Securities sold under agreements to repurchase	$231	$265

Other short-term borrowed funds	12	9
Total short-term borrowed funds	$243	$274

Long-term borrowed funds

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


	December 31,
(in millions)	2020	2019
Parent Company:
2.375% fixed-rate senior unsecured debt, due July 2021	$350	$349
4.150% fixed-rate subordinated debt, due September 2022(1)	182	348
3.750% fixed-rate subordinated debt, due July 2024(1)	159	250
4.023% fixed-rate subordinated debt, due October 2024(1)	25	42
4.350% fixed-rate subordinated debt, due August 2025(1)	193	249
4.300% fixed-rate subordinated debt, due December 2025(1)	450	750
2.850% fixed-rate senior unsecured notes, due July 2026	497	496
2.500% fixed-rate senior unsecured notes, due February 2030	297	—
3.250% fixed-rate senior unsecured notes, due April 2030	745	—
2.638% fixed-rate subordinated debt, due September 2032 (1)	543	—
CBNA’s Global Note Program:
2.250% senior unsecured notes, due March 2020	—	700
2.447% floating-rate senior unsecured notes, due March 2020 (2)	—	300
2.487% floating-rate senior unsecured notes, due May 2020 (2)	—	250
2.200% senior unsecured notes, due May 2020	—	500
2.250% senior unsecured notes, due October 2020	—	750
2.550% senior unsecured notes, due May 2021	1,003	991
3.250% senior unsecured notes, due February 2022	716	711
0.941% floating-rate senior unsecured notes, due February 2022 (2)	299	299
1.042% floating-rate senior unsecured notes, due May 2022 (2)	250	250
2.650% senior unsecured notes, due May 2022	510	501
3.700% senior unsecured notes, due March 2023	527	515
1.201% floating-rate senior unsecured notes, due March 2023 (2)	249	249
2.250% senior unsecured notes, due April 2025	746	—
3.750% senior unsecured notes, due February 2026	551	521
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 0.932% weighted average rate, due through 2038	19	5,008
Other	35	18
Total long-term borrowed funds	$8,346	$14,047

(1 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.

(2) Rate disclosed reflects the floating rate as of December 31, 2020, or final floating rate as applicable.

The Parent Company’s long-term borrowed funds as of December 31, 2020 and 2019 included principal balances of $3.5 billion and $2.5 billion, respectively, and unamortized deferred issuance costs and/or discounts of ($90) million and ($8) million, respectively. CBNA and other subsidiaries’ long-term borrowed funds as of December 31, 2020 and 2019 included principal balances of $4.8 billion and $11.5 billion, respectively, with unamortized deferred issuance costs and/or discounts of ($11) million and ($13) million, respectively, and hedging basis adjustments of $112 million and $50 million, respectively. See Note 13 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 by pledged mortgages and pledged securities 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 $3.2 billion and $9.8 billion at December 31, 2020 and 2019, respectively. The Company’s available FHLB borrowing capacity was $13.9 billion and $7.2 billion at December 31, 2020 and 2019, 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, 2020, the Company’s unused secured borrowing capacity was approximately $64.6 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 December 31, 2020:


(in millions)	Parent Company	CBNA and Other Subsidiaries	Consolidated
Year
2021	$350	$1,011	$1,361
2022	182	1,786	1,968
2023	—	778	778
2024	184	—	184
2025	643	759	1,402
2026 and thereafter	2,082	571	2,653
Total	$3,441	$4,905	$8,346