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BORROWINGS | 6 Months Ended
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Jun. 30, 2019
Debt Disclosure [Abstract] |
BORROWINGS | BORROWINGS Following is a summary of short-term borrowings: TABLE 8.1
(in millions) | June 30, 2019 |  | December 31, 2018
Securities sold under repurchase agreements | $ | 231 |  |  | $ | 251 |
Federal Home Loan Bank advances | 1,620 |  |  | 2,230 |
Federal funds purchased | 1,752 |  |  | 1,535 |
Subordinated notes | 108 |  |  | 113 |
Total short-term borrowings | $ | 3,711 |  |  | $ | 4,129 |
Borrowings with original maturities of one year or less are classified as short-term. Securities sold under repurchase agreements are comprised of customer repurchase agreements, which are sweep accounts with next day maturities utilized by larger commercial customers to earn interest on their funds. Securities are pledged to these customers in an amount equal to the outstanding balance. Of the total short-term FHLB advances, 28.7% and 57.2% had overnight maturities as of June 30, 2019 and December 31, 2018, respectively. At June 30, 2019, 71.3% of the short-term FHLB advances were swapped to a fixed rate with maturities ranging from 2020 through 2024. This compares to 42.8% as of December 31, 2018. Following is a summary of long-term borrowings: TABLE 8.2
(in millions) | June 30, 2019 |  | December 31, 2018
Federal Home Loan Bank advances | $ | 935 |  |  | $ | 270 |
Subordinated notes | 88 |  |  | 87 |
Junior subordinated debt | 66 |  |  | 111 |
Other subordinated debt | 249 |  |  | 159 |
Total long-term borrowings | $ | 1,338 |  |  | $ | 627 |
Our banking affiliate has available credit with the FHLB of $8.0 billion, of which $2.6 billion was utilized as of June 30, 2019. These advances are secured by loans collateralized by residential mortgages, home equity lines of credit, commercial real estate and FHLB stock and are scheduled to mature in various amounts periodically through the year 2022. Effective interest rates paid on the long-term advances ranged from 1.62% to 2.71% for the six months ended June 30, 2019 and 1.39% to 4.19% for the year ended December 31, 2018. During the first quarter of 2019, we completed a debt offering in which we issued $120.0 million aggregate principal amount of fixed-to-floating rate subordinated notes due in 2029. The net proceeds of the debt offering after deducting underwriting discounts and commissions and offering costs were $118.2 million. This subordinated debt is eligible for treatment as tier 2 capital for regulatory capital purposes. During the first half of 2019, we repurchased and retired $9.5 million and redeemed $15.5 million in higher interest rate other subordinated debt assumed in the 2017 YDKN acquisition. We also redeemed $44.0 million of TPS that we previously assumed through various acquisitions. The junior subordinated debt is comprised of the debt securities issued by FNB in relation to our unconsolidated subsidiary trusts (collectively, the Trusts), which are unconsolidated variable interest entities, and are included on the Consolidated Balance Sheets in long-term borrowings. Since third-party investors are the primary beneficiaries, the Trusts are not consolidated in our Financial Statements. We record the distributions on the junior subordinated debt issued to the Trusts as interest expense. The following table provides information relating to the Trusts as of June 30, 2019: TABLE 8.3
(dollars in millions) | Trust Preferred Securities |  | Common Securities |  | Junior Subordinated Debt |  | Stated Maturity Date |  | Interest Rate |  | Rate Reset Factor
F.N.B. Statutory Trust II | $ | 22 |  |  | $ | 1 |  |  | $ | 22 |  |  | 6/15/2036 |  | 4.06 | % |  | LIBOR + 165 basis points (bps)
Yadkin Valley Statutory Trust I | 25 |  |  | 1 |  |  | 22 |  |  | 12/15/2037 |  | 3.73 | % |  | LIBOR + 132 bps
FNB Financial Services Capital Trust I | 25 |  |  | 1 |  |  | 22 |  |  | 9/30/2035 |  | 3.78 | % |  | LIBOR + 146 bps
Total | $ | 72 |  |  | $ | 3 |  |  | $ | 66 |  |  |  |  |  |  |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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