Borrowed Funds

12 Months Ended

Dec. 31, 2018

BORROWED FUNDS

The following shows the carrying value of total borrowed funds of $57.4 billion at December 31, 2018 (including adjustments related to purchase accounting, accounting hedges and unamortized original issuance discounts) by remaining contractual maturity:

Table 66: Borrowed Funds



In billions
2019	$	20.0
2020	$	14.8
2021	$	6.5
2022	$	4.9
2023	$	2.3
2024 and thereafter	$	8.9

The following table presents the contractual rates and maturity dates of our FHLB borrowings, senior debt and subordinated debt as of December 31, 2018 and the carrying values as of December 31, 2018 and 2017.

Table 67: FHLB Borrowings, Senior Debt and Subordinated Debt



	Stated Rate	Maturity	Carrying Value
Dollars in millions	2018	2018	2018		2017
Parent Company
Senior debt	2.85%-6.70%	2019-2027	$	5,063	$	5,203
Subordinated debt	3.90%-6.88%	2019-2024	1,447		1,440
Junior subordinated debt	3.31%	2028	205		205
Subtotal			6,715		6,848
Bank
FHLB (a)	zero-6.35%	2019-2030	21,501		21,037
Senior debt	1.45%-3.50%	2019-2043	19,955		22,859
Subordinated debt	2.70%-4.20%	2022-2028	4,243		3,555
Subtotal			45,699		47,451
Total			$	52,414	$	54,299


(a)	FHLB borrowings are generally collateralized by residential mortgage loans, other mortgage-related loans and commercial mortgage-backed securities.

In Table 67, the carrying values for Parent Company senior and subordinated debt include basis adjustments of $(29) million and $8 million, respectively, whereas Bank senior and subordinated debt include basis adjustments of $(246) million and $7 million, respectively, related to fair value accounting hedges as of December 31, 2018.

Certain borrowings are reported at fair value, refer to Note 6 Fair Value for more information on those borrowings.

Junior Subordinated Debentures

PNC Capital Trust C, a wholly-owned finance subsidiary of The PNC Financial Services Group, Inc., owns junior subordinated debentures issued by PNC with a carrying value of $205 million. In June 1998, PNC Capital Trust C issued $200 million of trust preferred securities which bear interest at an annual rate of 3 month LIBOR plus 57 basis points. The trust preferred securities are currently redeemable by PNC Capital Trust C at par. In accordance with GAAP, the financial statements of the Trust are not included in our consolidated financial statements.

The obligations of The PNC Financial Services Group, Inc., as the parent of the Trust, when taken collectively, are the equivalent of a full and unconditional guarantee of the obligations of the Trust under the terms of the trust preferred securities. Such guarantee is subordinate in right of payment in the same manner as other junior subordinated debt. There are certain restrictions on our overall ability to obtain funds from our subsidiaries. For additional disclosure on these funding restrictions, see Note 18 Regulatory Matters.

We are subject to certain restrictions, including restrictions on dividend payments, in connection with the outstanding junior subordinated debentures. Generally, if there is (i) an event of default under the debenture, (ii) we elect to defer interest on the debenture, (iii) we exercise our right to defer payments on the related trust preferred securities, or (iv) there is a default under our guarantee of such payment obligations, subject to certain limited exceptions, we would be unable during the period of such default or deferral to make payments on our debt securities that rank equal or junior to the debentures as well as to make payments on our equity securities, including dividend payments.