BORROWINGS

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

Following is a summary of short-term borrowings:

TABLE 10.1

(in millions)	March 31, 2022		December 31, 2021
Securities sold under repurchase agreements	$	363	$	376
Federal Home Loan Bank advances	930		1,030
Subordinated notes	132		130
Total short-term borrowings	$	1,425	$	1,536

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 March 31, 2022 or December 31, 2021. At March 31, 2022, $0.9 billion, or 100.0%, of the short-term FHLB advances were swapped to fixed rates with various maturities through 2024. This compares to $1.0 billion, or 100.0%, as of December 31, 2021.

Following is a summary of long-term borrowings:

TABLE 10.2

(in millions)	March 31, 2022		December 31, 2021
Senior notes	$	299	$	299
Subordinated notes	68		68
Junior subordinated debt	72		67
Other subordinated debt	274		248
Total long-term borrowings	$	713	$	682

We assumed $25 million of other subordinated debt and $5 million of junior subordinated debt from the Howard acquisition. Those additions are reflected in the balances above and in the tables below.

Our banking affiliate has available credit with the FHLB of $8.7 billion, of which $0.9 billion was utilized and included in short-term borrowings as of March 31, 2022. The short-term FHLB borrowings 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 during 2022. There were no long-term FHLB borrowings as of March 31, 2022 or December 31, 2021. Effective interest rates paid on the long-term FHLB borrowings held during 2021 ranged from 0.26% to 0.29% for the year ended December 31, 2021.

The following table provides information relating to our senior notes and other subordinated debt as of March 31, 2022. The subordinated notes are eligible for treatment as tier 2 capital for regulatory capital purposes.

TABLE 10.3

(dollars in millions)	Aggregate Principal Amount Issued		Net Proceeds (4)		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 (1)	120		118		119		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 (3)	38		46		30		8/12/2023	7.625	%
6.00% Fixed-To-Floating Rate Subordinated Notes due December 6, 2028 (2) (3)	25		26		26		12/6/2028	6.00	%
Total	$	583	$	586	$	573

(1) Fixed-to-floating rate until February 14, 2024, at which time the floating rate will be three-month LIBOR plus 240 basis points (bps), or an alternative rate that may replace LIBOR, as specified in the prospectus for this offering.

(2) Fixed-to-floating rate until December 6, 2023, at which time the floating rate will be three-month LIBOR plus 302 bps, or an alternative rate that may replace LIBOR, as specified in the prospectus for this offering.

(3) Assumed from an acquisition and adjusted to fair value at the time of acquisition.

(4) After deducting underwriting discounts and commissions and offering costs. For the debt assumed from acquisitions, 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, or companies we acquired, 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 March 31, 2022:

TABLE 10.4

(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	2.48	%	LIBOR + 165 bps
Yadkin Valley Statutory Trust I	25		1		22		12/15/2037	2.15	%	LIBOR + 132 bps
FNB Financial Services Capital Trust I	25		1		23		9/30/2035	2.46	%	LIBOR + 146 bps
Patapsco Statutory Trust I	5		—		5		12/15/2035	2.31	%	LIBOR + 148 bps
Total	$	77	$	3	$	72