BORROWINGS

6 Months Ended

Jun. 30, 2019

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