BORROWINGS

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Following is a summary of short-term borrowings:

TABLE 9.1

(in millions)	June 30, 2021		December 31, 2020
Securities sold under repurchase agreements	$	393	$	403
Federal Home Loan Bank advances	1,130		1,280
Subordinated notes	127		121
Total short-term borrowings	$	1,650	$	1,804

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 at least equal to the outstanding balance. We did not have any short-term FHLB advances with overnight maturities as of June 30, 2021 or December 31, 2020. At June 30, 2021, $1.1 billion, or 100.0%, of the short-term FHLB advances were swapped to a fixed rate with maturities in 2021. This compares to $1.3 billion, or 100.0%, as of December 31, 2020.

Following is a summary of long-term borrowings:

TABLE 9.2

(in millions)	June 30, 2021		December 31, 2020
Federal Home Loan Bank advances	$	200	$	400
Senior notes	299		299
Subordinated notes	75		81
Junior subordinated debt	66		66
Other subordinated debt	248		249
Total long-term borrowings	$	888	$	1,095

Our banking affiliate has available credit with the FHLB of $8.2 billion, of which $1.3 billion was utilized as of June 30, 2021. 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 2021. Effective interest rates paid on the long-term advances ranged from 0.26% to 0.29% for the six months ended June 30, 2021 and 0.30% to 0.34% for the year ended December 31, 2020.

The following table provides information relating to our senior debt and other subordinated debt as of June 30, 2021. These debt issuances are fixed-rate, with the exception of the Subordinated Notes due in 2029, which are fixed-rate and become floating-rate after February 14, 2024. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

TABLE 9.3

(dollars in millions)	Aggregate Principal Amount Issued		Net Proceeds (2)		Carrying Value		Stated Maturity Date	Interest Rate
2.20% Senior Notes due February 24, 2023	$	300	$	298	$	299	2/24/2023	2.20	%
4.95% Fixed-To-Floating Rate Subordinated Notes due 2029	120		118		118		2/14/2029	4.95	%
4.875% Subordinated Notes due 2025	100		98		99		10/2/2025	4.875	%
7.625% Subordinated Notes due August 12, 2023 (1)	38		46		31		8/12/2023	7.625	%
Total	$	558	$	560	$	547

(1) Assumed from a prior acquisition and adjusted to fair value at the time of acquisition.

(2) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from a prior acquisition, this is the fair value of the debt at the time of the acquisition.

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 VIEs, 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, 2021:

TABLE 9.4

(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	1.77	%	LIBOR + 165 basis points (bps)
Yadkin Valley Statutory Trust I	25		1		22		12/15/2037	1.44	%	LIBOR + 132 bps
FNB Financial Services Capital Trust I	25		1		22		9/30/2035	1.61	%	LIBOR + 146 bps
Total	$	72	$	3	$	66