Short-Term Borrowings

12 Months Ended

Dec. 31, 2021

Borrowings with original maturities of one year or less are classified as short-term and include federal funds purchased and other short-term borrowings. Federal funds purchased are excess balances in reserve accounts held at the FRB that the Bancorp purchased from other member banks on an overnight basis. Other short-term borrowings may include securities sold under repurchase agreements, derivative collateral, FHLB advances and other borrowings with original maturities of one year or less.

The following table summarizes short-term borrowings and weighted-average rates:


	2021				2020
($ in millions)	Amount		Rate		Amount		Rate
As of December 31:
Federal funds purchased	$	281	0.13	%	$	300	0.14	%
Other short-term borrowings	980		0.04		1,192		0.19
Average for the years ended December 31:
Federal funds purchased	$	333	0.12	%	$	385	0.58	%
Other short-term borrowings	1,107		0.15		1,709		0.81
Maximum month-end balance for the years ended December 31:
Federal funds purchased	$	365			$	1,625
Other short-term borrowings	1,353				4,542

The following table presents a summary of the Bancorp’s other short-term borrowings as of December 31:


($ in millions)	2021		2020
Securities sold under repurchase agreements	$	544	679
Derivative collateral	436		474
Other secured borrowings	—		39
Total other short-term borrowings	$	980	1,192

The Bancorp’s securities sold under repurchase agreements are accounted for as secured borrowings and are collateralized by securities included in available-for-sale debt and other securities in the Consolidated Balance Sheets. These securities are subject to changes in market value and, therefore, the Bancorp may increase or decrease the level of securities pledged as collateral based upon these movements in market value. As of both December 31, 2021 and 2020, all securities sold under repurchase agreements were secured by agency residential mortgage-backed securities and the repurchase agreements had an overnight remaining contractual maturity.

The Bancorp’s other secured borrowings at December 31, 2020 primarily included obligations recognized by the Bancorp under ASC Topic 860 related to certain loans sold to GNMA and serviced by the Bancorp. Under ASC Topic 860, once the Bancorp has the unilateral right to repurchase the GNMA loans due to the borrower missing three consecutive payments, the Bancorp is considered to have regained effective control over the loan. As such, the Bancorp was required to recognize both the loan and the repurchase liability, regardless of the intent to repurchase the loans. The Bancorp repurchased these loans during 2021.