MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Borrowings  and FHLB advances throughout 2009 which contributed $3.7  billion and $1.2 billion, respectively, to average balances in 2009.  These repayments were made possible by a decrease in loan  demand combined with growth in deposits during 2009. See the  Capital Management Section for additional information.  Information on the average rates paid on borrowings is  included within the Statements of Income Analysis. Additionally,  refer to the Liquidity Risk Management section for a discussion  on the role of borrowings in the Bancorp’s liquidity management. On January 25, 2011, the Bancorp issued $1.0 billion of  senior notes to third party investors, bearing a fixed rate of  interest of 3.625% per annum. The notes are unsecured, senior  obligations of the Bancorp and mature on January 25, 2016. See  Note 32 of the Notes to Consolidated Financial Statement for  further information on the debt issuance. Long-term debt at December 31, 2010 decreased $949  million, or nine percent, compared to December 31, 2009  primarily as the result of the repayment of $1.0 billion in FHLB  advances during the fourth quarter of 2010 and the maturity of  $800 million of long-term debt in the first quarter of 2010. These  declines were partially offset by the impact of a change in U.S.  GAAP which required the Bancorp to consolidate long-term debt  on January 1, 2010 that had an outstanding balance of $692  million as of December 31, 2010.  Average borrowings declined $5.2 billion from 2009, primarily as a result of repayment of term auction facility funds  Total borrowings declined $693 million from December 31, 2009,  as the result of a decrease in long-term debt partially offset by an  increase in federal funds purchased and other short-term  borrowings. TABLE 25: AVERAGE BORROWINGS  TABLE 24: BORROWINGS As of December 31 ($ in millions)  2010 2009 2008 2007 2006 Federal funds purchased  $279 182 287 4,427 1,421 Other short-term borrowings  1,574 1,415 9,959 4,747 2,796 Long-term debt  9,558 10,507 13,585 12,857 12,558 Total borrowings  $11,411 12,104 23,831 22,031 16,775 As of December 31 ($ in millions)  2010 2009 2008 2007 2006 Federal funds purchased  $291 517 2,975 3,646 4,148 Other short-term borrowings  1,635 6,463 7,785 3,244 8,670 Long-term debt  10,902 11,035 13,903 12,505 14,247 Total borrowings  $12,828 18,015 24,663 19,395 27,065 Fifth Third Bancorp 47 