Borrowed Funds (Tables)

6 Months Ended

Jun. 30, 2026

The following table summarizes our borrowed funds:


	June 30, 2026			December 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.

Schedule of Total Interest Expense

The following table summarizes our total interest expense:


	Three Months Ended,				Six Months Ended,
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Interest expense on short-term borrowings	$	30	$	28	$	63	$	59
Interest expense on long-term debt	81		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.

Schedule of Federal Home Loan Bank Advances

The contractual maturities and the next call dates of FHLB advances outstanding at June 30, 2026 were as follows:


	Contractual Maturity			Earlier 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
2027	2,500		3.92	2,500		3.92
2028	2,400		4.24	2,400		4.24



2032	250		3.50	—		—

Total FHLB advances	$	9,901		$	9,901

Schedule of Subordinated Borrowing

The following table presents contractual terms of the junior subordinated debentures outstanding at June 30, 2026:


Issuer	Interest Rate of Capital Securities and Debentures		Junior Subordinated Debentures Amount Outstanding		Capital Securities Amount Outstanding		Date of Original Issue	Stated Maturity

New York Community Capital Trust V (BONUSES Units) (1)	6.00	%	$	148	$	142	November 04, 2002	November 01, 2051
New York Community Capital Trust X (2)	5.53	%	124		120		December 14, 2006	December 15, 2036
PennFed Capital Trust III (2)	7.18	%	31		30		June 02, 2003	June 15, 2033
New York Community Capital Trust XI (2)	5.64	%	59		58		April 16, 2007	June 30, 2037
Flagstar Statutory Trust II (2)(3)	7.26	%	26		25		December 26, 2002	December 26, 2032
Flagstar Statutory Trust III (2)(3)	7.18	%	26		25		February 19, 2003	April 7, 2033
Flagstar Statutory Trust IV (2)(3)	7.24	%	26		25		March 19, 2003	March 19, 2033
Flagstar Statutory Trust V (2)(3)	5.93	%	26		25		December 29, 2004	January 07, 2035
Flagstar Statutory Trust VI (2)(3)	5.93	%	26		25		March 30, 2005	April 7, 2035
Flagstar Statutory Trust VII (2)(3)	5.68	%	52		50		March 29, 2005	June 15, 2035
Flagstar Statutory Trust VIII (2)(3)	5.43	%	26		25		September 22, 2005	October 7, 2035
Flagstar Statutory Trust IX (2)(3)	5.38	%	26		25		June 28, 2007	September 15, 2037
Flagstar Statutory Trust X (2)(3)	6.43	%	15		15		August 31, 2007	September 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.

The following table presents the contractual terms of the subordinated notes at June 30, 2026:


	Date of Original Issue	Stated Maturity	Interest Rate	Original Issue Amount
(1)	November 6, 2018	November 6, 2028	6.695%	$	300
(2)	October 28, 2020	November 1, 2030	7.573%	$	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.