v3.25.4
Derivative and Hedging Activities
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative and Hedging Activities Derivative and Hedging Activities
The following tables set forth information regarding our derivative financial instruments:

December 31, 2025December 31, 2024
Fair ValueFair Value
Notional AmountOther AssetsOther LiabilitiesExpiration DatesNotional AmountOther AssetsOther LiabilitiesExpiration Dates
Derivatives designated as hedging instruments:
Interest rate swaps (fair value hedge)
$3,993 $— $— 2027-2029$— $— $— 
Derivatives not designated as hedging instruments:
Rate lock commitments
$241 $4 $1 2026 $563 $3 $3 2025 
Mortgage-backed securities forwards203 — 1 2026 344 7 2 2025 
Interest rate swaps
3,926 19 21 2025-20273,323 15 30 2024-2041
Interest rate caps
2,000 3 — 2028 — — — 

During the year ended 2024, we terminated interest rate swaps with a notional value of $5.5 billion that were designated as a cash flow hedge associated with FHLB advances. During the year ended December 31, 2025 and 2024, we repaid $2.0 billion and $2.8 billion, respectively, of FHLB advances that were associated with the terminated interest rate swaps resulting in us reclassifying $20 million and $28 million of net unrealized gains, respectively, out of AOCL and into interest expense.

The following amounts were recorded in the Consolidated Statements of Condition related to items designated and qualifying as hedged items in a fair value hedging relationship:

December 31, 2025December 31, 2024
 Carrying Amount of Hedged Items  Cumulative Amount of Fair Value Hedging Adjustments Carrying Amount of Hedged Items Cumulative Amount of Fair Value Hedging Adjustments
U.S. treasury obligations$1,016 $14 $— $— 
GSE CMOs1,957 7 — — 
GSE debentures1,297 10 — — 
Debt securities available-for-sale(1)
$4,270 $31 $— $— 
Loans and leases held-for-investment(2)
$5,073 $(2)$5,861 $(18)
(1)During the year ended 2025, 2024, and 2023, the amount recorded in Interest income - Securities and money market investments in the Consolidated Statement of Income was immaterial.
(2)Relates to hedges on multi-family loans that were discontinued in 2024. During the year ended 2025, 2024, and 2023, the amount recorded to Interest income - Loans and leases in the Consolidated Statement of Income was $13 million, $30 million, and $24 million, respectively.
The tables below present the gross derivative assets and liabilities, and the related cash pledged as collateral as of December 31, 2025 and 2024. No amounts were netted in the Consolidated Statements of Condition.

December 31, 2025
Gross Amounts Not Offset in the Statements of Condition
Financial InstrumentsCash Collateral Pledged (Received)
Derivatives designated hedging instruments:
Interest rate swaps
$— $76 
Derivatives not designated as hedging instruments:
Assets
Interest rate swaps
19 — 
Total derivative assets$19 $— 
Liabilities
Mortgage-backed securities forwards$1 $1 
Interest rate swaps
21 34 
Total derivative liabilities$22 $35 

December 31, 2024
Gross Amounts Not Offset in the Statements of Condition
Financial InstrumentsCash Collateral Pledged (Received)
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards$7 $(2)
Interest rate swaptions15 (3)
Total derivative assets$22 $(5)
Liabilities
Mortgage-backed securities forwards$2 $10 
Interest rate swaps
30 47 
Total derivative liabilities$32 $57 
Derivatives not Designated as Hedging Instruments

The following table presents the net gain (loss) recognized in income on derivatives not designated as hedging instruments, net of the impact of offsetting positions:

Year Ended December 31,
202520242023
Derivatives not designated as hedging instruments:
Location of Gain (Loss)
FuturesNet return on mortgage servicing rights$— $2 $1 
Interest rate swaps and swaptionsNet return on mortgage servicing rights— (38)(34)
Mortgage-backed securities forwardsNet return on mortgage servicing rights— (18)(15)
Rate lock and Forward commitments
Net gain on loan sales and securitizations
(3)23 2 
Interest rate swaps (1)
Fee income
4 — — 
Interest rate swaps (1)
Other non-interest income— — (1)
Total derivative (loss) gain$1 $(31)$(47)
(1) Includes customer-initiated commercial interest rate swaps.

The following table provides a reconciliation of cash, cash equivalents and restricted cash within the Consolidated Statements of Condition that sum to the total of the same amounts shown in the Consolidated Statements of Cash Flows:
December 31,

20252024
Cash and due from banks$553 $434 
Interest-earning deposits and other securities with financial institutions5,341 14,996 
Restricted cash included in other assets
83 129 
Total
$5,977 $15,559