v3.25.4
Borrowed Funds
 12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Borrowed Funds Borrowed Funds
The following table summarizes our borrowed funds:
December 31,
20252024
Short-term borrowings(1)
FHLB advances$4,000 $2,750 
Total short-term borrowings
$4,000 $2,750 
Long-term debt
FHLB advances
$7,151 $10,650 
Junior subordinated debentures585 582 
Subordinated notes448 444 
Total long-term debt
$8,184 $11,676 
Borrowed Funds
$12,184 $14,426 
Weighted average interest rate on short-term borrowings
3.92 %4.67 %
Weighted average interest rate on long-term debt
4.53 %4.94 %
(1)Borrowings with original maturities of one year or less are classified as short-term borrowings.
The following table summarizes our total interest expense:

Year Ended December 31,
202520242023
Interest expense on short-term borrowings
$110 $449 $370 
Interest expense on long-term debt
496 768 278 
Total interest expense(1)
$606 $1,217 $648 
(1)This excludes amortization expense of $7 million, $8 million, and $8 million during the years ended December 31, 2025, 2024 and 2023, respectively.

Accrued interest on Borrowed funds is included in Other liabilities in the Consolidated Statements of Condition and amounted to $39 million and $51 million, respectively, as of December 31, 2025 and December 31, 2024.

FHLB Advances

The contractual maturities and the next call dates of FHLB advances outstanding as of December 31, 2025 were as follows:
Contractual MaturityEarlier of Contractual Maturity or Next Call Date
Amount
Weighted Average Interest Rate
Amount
Weighted Average Interest Rate
2026$7,001 4.10 $7,250 4.08 
20271,500 3.91 1,500 3.91 
20282,400 4.40 2,400 4.40 
2032250 3.50 — — 
Total FHLB advances$11,151 $11,150 

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.

We maintain access to secured borrowings from the FHLB and FRB-NY Discount Window. Our FHLB available capacity has been expanded from overnight funding to 12-month tenor on new and rollover of existing advances. We pledge eligible loan and securities collateral with the FRB-NY Discount Window and FHLB New York to support borrowing capacity. The available borrowing capacity with the FRB-NY Discount Window and the FHLB, net of credit utilization primarily in the form of advances and letters of credit, was $8.3 billion and $7.0 billion at December 31, 2025 and 2024, respectively.

Junior Subordinated Debentures

We had $610 million at December 31, 2025 and December 31, 2024, of outstanding junior subordinated deferrable interest debentures (“junior subordinated debentures”) held by statutory business trusts that issued guaranteed capital securities, excluding purchase accounting adjustments.
The following table presents contractual terms of the junior subordinated debentures outstanding as of December 31, 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)
5.58 %124 120 December 14, 2006December 15, 2036
PennFed Capital Trust III (2)
7.23 %31 30 June 02, 2003June 15, 2033
New York Community Capital Trust XI (2)
5.60 %59 58 April 16, 2007June 30, 2037
Flagstar Statutory Trust II (2)(3)
7.20 %26 25 December 26, 2002December 26, 2032
Flagstar Statutory Trust III (2)(3)
7.42 %26 25 February 19, 2003April 7, 2033
Flagstar Statutory Trust IV (2)(3)
7.20 %26 25 March 19, 2003March 19, 2033
Flagstar Statutory Trust V (2)(3)
6.17 %26 25 December 29, 2004January 07, 2035
Flagstar Statutory Trust VI (2)(3)
6.17 %26 25 March 30, 2005April 7, 2035
Flagstar Statutory Trust VII (2)(3)
5.73 %51 50 March 29, 2005June 15, 2035
Flagstar Statutory Trust VIII (2)(3)
5.67 %26 25 September 22, 2005October 7, 2035
Flagstar Statutory Trust IX (2)(3)
5.43 %26 25 June 28, 2007September 15, 2037
Flagstar Statutory Trust X (2)(3)
6.48 %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 Flagstar Bancorp acquisition fair value adjustments of $25 million, which amortizes over the contractual term.

The Bifurcated Option Note Unit SecuritiESSM (“BONUSES units”) were issued by us on November 4, 2002, at a public offering price of $50.00 per share, with a total of 5,500,000 units sold, raising $275 million. Each BONUSES unit consisted of a capital security issued by New York Community Capital Trust V, a trust formed by the Bank, and a warrant to purchase shares of the Bank's common stock. The capital securities offered a 6 percent coupon rate, with a maturity of 49 years.

The $275 million raised was allocated between the capital security and the warrant based on their relative values at issuance, with $92 million assigned to the warrants and $183 million assigned to the capital securities. The $92 million discount on the capital securities is being amortized over the 49-year life of the securities, unless converted. As of December 31, 2025, the outstanding principal balance of the securities was $212 million, and the remaining discount was $64 million.

The other remaining trust preferred securities noted in the preceding table were formed for the purpose of issuing Company Obligated Mandatorily Redeemable Capital Securities of Subsidiary Trusts Holding Solely Junior Subordinated Debentures (collectively, the “Capital Securities”). Dividends on the Capital Securities are payable either quarterly or semi-annually and can be deferred for up to 5 years. As of December 31, 2025, all dividends on these securities were current.

Interest expenses on junior subordinated debentures for the years ended December 31, 2025, 2024, and 2023 was $44 million, $49 million, and $48 million, respectively.

Subordinated Notes

As of December 31, 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, 20286.928%$300
(2)
October 28, 2020November 1, 20307.764%$150
(1)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)The Notes will bear 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.