v3.26.1
Borrowed Funds
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowed Funds Borrowed Funds
The following table summarizes our borrowed funds:


June 30, 2026December 31, 2025
Short-term borrowings(1)
FHLB advances
$4,251 $4,000 
Total short-term borrowings
$4,251 $4,000 
Long-term debt
FHLB advances
$5,650 $7,151 
Junior subordinated debentures
587 585 
Subordinated notes
449 448 
Total long-term debt
$6,686 $8,184 
Borrowed Funds
$10,937 $12,184 
Weighted average interest rate on short-term borrowings
3.87 %3.92 %
Weighted average interest rate on long-term debt
4.47 %4.53 %
(1)Borrowings with original maturities of one year or less are classified as short-term borrowings.

The following table summarizes our total interest expense:

Three Months Ended,Six Months Ended,
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Interest expense on short-term borrowings$30 $28 $63 $59 
Interest expense on long-term debt81 135 170 270 
Total interest expense(1)
$111 $163 $233 $329 
(1)This excludes amortization expense of $1 million and $2 million for the three and six months ended June 30, 2026, respectively, and $2 million and $4 million for the three and six months ended June 30, 2025, respectively.

Accrued interest on borrowed funds is included in Other liabilities in the Condensed Consolidated Statements of Condition and was $41 million and $39 million at June 30, 2026 and December 31, 2025, respectively.

FHLB Advances

The contractual maturities and the next call dates of FHLB advances outstanding at June 30, 2026 were as follows:
Contractual MaturityEarlier of Contractual Maturity or Next Call Date
Amount
Weighted Average Interest Rate
Amount
Weighted Average Interest Rate
2026$4,751 3.95 $5,001 3.74 
20272,500 3.92 2,500 3.92 
20282,400 4.24 2,400 4.24 
2032250 3.50 — — 
Total FHLB advances$9,901 $9,901 

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 $8.3 billion at June 30, 2026 and December 31, 2025, respectively.

Junior Subordinated Debentures

We have 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 at June 30, 2026:

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)
5.53 %124 120 December 14, 2006December 15, 2036
PennFed Capital Trust III (2)
7.18 %31 30 June 02, 2003June 15, 2033
New York Community Capital Trust XI (2)
5.64 %59 58 April 16, 2007June 30, 2037
Flagstar Statutory Trust II (2)(3)
7.26 %26 25 December 26, 2002December 26, 2032
Flagstar Statutory Trust III (2)(3)
7.18 %26 25 February 19, 2003April 7, 2033
Flagstar Statutory Trust IV (2)(3)
7.24 %26 25 March 19, 2003March 19, 2033
Flagstar Statutory Trust V (2)(3)
5.93 %26 25 December 29, 2004January 07, 2035
Flagstar Statutory Trust VI (2)(3)
5.93 %26 25 March 30, 2005April 7, 2035
Flagstar Statutory Trust VII (2)(3)
5.68 %52 50 March 29, 2005June 15, 2035
Flagstar Statutory Trust VIII (2)(3)
5.43 %26 25 September 22, 2005October 7, 2035
Flagstar Statutory Trust IX (2)(3)
5.38 %26 25 June 28, 2007September 15, 2037
Flagstar Statutory Trust X (2)(3)
6.43 %15 15 August 31, 2007September 15, 2037
Total junior subordinated debentures
$611 $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 $24 million, which amortizes over the contractual term.

Subordinated Notes

As of June 30, 2026 and December 31, 2025, we had a total of $449 million and $448 million. The following table presents the contractual terms of the subordinated notes at June 30, 2026:

Date of Original IssueStated MaturityInterest RateOriginal Issue Amount
(1)
November 6, 2018November 6, 20286.695%$300
(2)
October 28, 2020November 1, 20307.573%$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 bear a variable rate tied to SOFR until maturity. We have the option to redeem all or a part of the Notes.