Short-Term Borrowings

12 Months Ended

Dec. 31, 2023

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 FHLB advances, securities sold under repurchase agreements, derivative collateral and other borrowings with original maturities of one year or less.

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


	2023				2022
($ in millions)	Amount		Rate		Amount		Rate
As of December 31:
Federal funds purchased	$	193	5.31	%	$	180	4.22	%
Other short-term borrowings	2,861		5.21		4,838		3.75
Average for the years ended December 31:
Federal funds purchased	$	307	4.96	%	$	381	1.69	%
Other short-term borrowings	5,044		4.90		4,544		2.39
Maximum month-end balance for the years ended December 31:
Federal funds purchased	$	1,143			$	1,312
Other short-term borrowings	7,423				8,606

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


($ in millions)	2023		2022
FHLB advances	$	2,500	4,300
Securities sold under repurchase agreements	330		388
Derivative collateral	3		124
Other borrowed money	28		26
Total other short-term borrowings	$	2,861	4,838

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, 2023 and 2022, all securities sold under repurchase agreements were secured by agency mortgage-backed securities and the repurchase agreements had an overnight remaining contractual maturity.

The Bancorp’s other borrowed money at December 31, 2023 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 is required to recognize both the loan and the repurchase liability, regardless of the intent to repurchase the loans.