v3.25.3
Borrowed Funds
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Borrowed Funds Borrowed Funds
The following table summarizes the Company’s borrowed funds:


September 30, 2025December 31, 2024
Wholesale borrowings:
FHLB advances$12,150 $13,400 
Total wholesale borrowings$12,150 $13,400 
Junior subordinated debentures584 582
Subordinated notes448 444
Total borrowed funds$13,182 $14,426 

Accrued interest on borrowed funds is included in Other liabilities in the Condensed Consolidated Statements of Condition and amounted to $47 million and $51 million at September 30, 2025 and December 31, 2024, respectively.
FHLB Advances

The contractual maturities and the next call dates of FHLB advances outstanding at September 30, 2025 were as follows:
Contractual MaturityEarlier of Contractual Maturity or Next Call Date
Year
Amount
Weighted Average Interest Rate
Amount
Weighted Average Interest Rate
2025$2,500 4.36 $2,750 4.28 
20263,000 4.70 3,000 4.70 
20274,000 4.47 4,000 4.47 
20282,400 4.71 2,400 4.71 
2032250 3.50 — — 
Total FHLB advances$12,150 $12,150 

Our FHLB available capacity has been expanded from overnight funding to 12-month tenor on new and rollover of existing advances. Our FHLB available capacity was $5.4 billion and $6.6 billion at September 30, 2025 and December 31, 2024, respectively.

Our FHLB advances include fixed-rate advances, floating-rate advances and advances under the FHLB convertible advance program, which gives the FHLB the option of either calling the advance after an initial lock-out period of up to five years and quarterly thereafter until maturity, or a one-time call at the initial call date.

At September 30, 2025, total borrowed funds decreased $1.2 billion compared to December 31, 2024 primarily due to the repayment of $250 million and $1.0 billion of FHLB advances upon maturity during the three months ended March 31, 2025 and June 30, 2025, respectively.
Junior Subordinated Debentures

We had $610 million at September 30, 2025 and December 31, 2024, of outstanding junior subordinated deferrable interest debentures (“junior subordinated debentures”) held by statutory business trusts (the “Trusts”) that issued guaranteed capital securities, excluding purchase accounting adjustments.

The following table presents contractual terms of the junior subordinated debentures outstanding at September 30, 2025:

IssuerInterest Rate of Capital Securities and Debentures
Junior Subordinated Debentures Amount Outstanding
Capital Securities Amount OutstandingDate of Original IssueStated Maturity
New York Community Capital Trust V (BONUSES Units) (1)
6.00 %$148 $142 November 04, 2002November 01, 2051
New York Community Capital Trust X (2)
5.90 %124 120 December 14, 2006December 15, 2036
PennFed Capital Trust III (2)
7.55 %31 30 June 02, 2003June 15, 2033
New York Community Capital Trust XI (2)
5.91 %59 58 April 16, 2007June 30, 2037
Flagstar Statutory Trust II (2)(3)
7.51 %26 25 December 26, 2002December 26, 2032
Flagstar Statutory Trust III (2)(3)
7.83 %26 25 February 19, 2003April 7, 2033
Flagstar Statutory Trust IV (2)(3)
7.51 %26 25 March 19, 2003March 19, 2033
Flagstar Statutory Trust V (2)(3)
6.58 %26 25 December 29, 2004January 07, 2035
Flagstar Statutory Trust VI (2)(3)
6.58 %26 25 March 30, 2005April 7, 2035
Flagstar Statutory Trust VII (2)(3)
6.05 %51 50 March 29, 2005June 15, 2035
Flagstar Statutory Trust VIII (2)(3)
6.08 %26 25 September 22, 2005October 7, 2035
Flagstar Statutory Trust IX (2)(3)
5.75 %26 25 June 28, 2007September 15, 2037
Flagstar Statutory Trust X (2)(3)
6.80 %15 15 August 31, 2007September 15, 2037
Total junior subordinated debentures
$610 $590 
(1)Callable subject to certain conditions as described in the prospectus filed with the SEC on November 4, 2002.
(2)Callable at any time.
(3)Excludes acquisition fair value adjustments of $26 million.

Subordinated Notes

At September 30, 2025 and December 31, 2024, we had a total of $448 million and $444 million, respectively, of fixed-to-floating rate subordinated notes outstanding:

Date of Original IssueStated MaturityInterest RateOriginal Issue Amount
(1)
November 6, 2018November 6, 20287.296%$300
(2)
October 28, 2020November 1, 20304.125%$150
(1)From and including the date of original issuance to, but excluding, November 6, 2023, the Notes bore interest at an initial rate of 5.90 percent per annum payable semi-annually. From and including November 6, 2023 to, but excluding, the maturity date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month SOFR plus 304.16 basis points payable quarterly.
(2)From and including the date of original issuance, the Notes will bear interest at a fixed rate of 4.125 percent through October 31, 2025, and a variable rate tied to SOFR thereafter until maturity. We have the option to redeem all or a part of the Notes beginning on November 1, 2025, and on any subsequent interest payment date.