FLAGSTAR BANK, NATIONAL ASSOCIATIONFLG
FLAGSTAR BANK, NATIONAL ASSOCIATION Debt Disclosure
Borrowed Funds
The following table summarizes our borrowed funds:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
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 debentures | 585 | 582 | |||||||||
| Subordinated notes | 448 | 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, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
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 Maturity | Earlier 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 | |||||||||||||||||
| 2027 | 1,500 | 3.91 | 1,500 | 3.91 | |||||||||||||||||||
| 2028 | 2,400 | 4.40 | 2,400 | 4.40 | |||||||||||||||||||
| 2032 | 250 | 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:
| 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) | 5.58 | % | 124 | 120 | December 14, 2006 | December 15, 2036 | |||||||||||||||||||||||
PennFed Capital Trust III (2) | 7.23 | % | 31 | 30 | June 02, 2003 | June 15, 2033 | |||||||||||||||||||||||
New York Community Capital Trust XI (2) | 5.60 | % | 59 | 58 | April 16, 2007 | June 30, 2037 | |||||||||||||||||||||||
Flagstar Statutory Trust II (2)(3) | 7.20 | % | 26 | 25 | December 26, 2002 | December 26, 2032 | |||||||||||||||||||||||
Flagstar Statutory Trust III (2)(3) | 7.42 | % | 26 | 25 | February 19, 2003 | April 7, 2033 | |||||||||||||||||||||||
Flagstar Statutory Trust IV (2)(3) | 7.20 | % | 26 | 25 | March 19, 2003 | March 19, 2033 | |||||||||||||||||||||||
Flagstar Statutory Trust V (2)(3) | 6.17 | % | 26 | 25 | December 29, 2004 | January 07, 2035 | |||||||||||||||||||||||
Flagstar Statutory Trust VI (2)(3) | 6.17 | % | 26 | 25 | March 30, 2005 | April 7, 2035 | |||||||||||||||||||||||
Flagstar Statutory Trust VII (2)(3) | 5.73 | % | 51 | 50 | March 29, 2005 | June 15, 2035 | |||||||||||||||||||||||
Flagstar Statutory Trust VIII (2)(3) | 5.67 | % | 26 | 25 | September 22, 2005 | October 7, 2035 | |||||||||||||||||||||||
Flagstar Statutory Trust IX (2)(3) | 5.43 | % | 26 | 25 | June 28, 2007 | September 15, 2037 | |||||||||||||||||||||||
Flagstar Statutory Trust X (2)(3) | 6.48 | % | 15 | 15 | August 31, 2007 | September 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 Issue | Stated Maturity | Interest Rate | Original Issue Amount | ||||||||||||||||||||
(1) | November 6, 2018 | November 6, 2028 | 6.928% | $ | 300 | ||||||||||||||||||
(2) | October 28, 2020 | November 1, 2030 | 7.764% | $ | 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.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 14, 2024 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.