Derivative and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Financial Instruments

The following tables set forth information regarding the Company’s derivative financial instruments:

	December 31, 2023
			Fair Value
(in millions)	Notional Amount		Other Assets		Other Liabilities		Expiration Dates
Derivatives designated as cash flow hedging instruments:
Interest rate swaps on FHLB advances	$	5,500	$	—	$	2	2025-2028
Total	5,500		—		2
Derivatives designated as fair value hedging instruments:
Interest rate swaps on multi-family loans held for investment	$	2,000	$	—	$	1	2025-2027
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards	$	1,012	$	11	$	—	2024
Rate lock commitments	1,490		12		—		2024
Interest rate swaps and swaptions	5,431		115		—		2024-2041
Total	$	7,933	$	138	$	—
Liabilities
Futures	$	2,235	$	—	$	1	2024
Mortgage-backed securities forwards	1,048		$	—	32		2024
Rate lock commitments	77		—		3		2024
Interest rate swaps and swaptions	2,720		—		59		2024-2054
Total derivatives not designated as hedging instruments	$	6,080	$	—	$	95

	December 31, 2022
			Fair Value
(in millions)	Notional Amount		Other Assets		Other Liabilities		Expiration Date
Derivatives designated as cash flow hedging instruments:
Interest rate swaps	$	3,750	$	5	$	—	2023-2027
Total	3,750		5		—
Derivatives not designated as hedging instruments:
Assets
Futures	$	1,205	$	2	$	—	2023
Mortgage-backed securities forwards	1,065		36		—		2023
Rate lock commitments	1,539		9		—		2023
Interest rate swaps and swaptions	7,594		182		—		2023-2032
Total	$	11,403	$	229	$	—
Liabilities
Mortgage-backed securities forwards	$	739	$	—	$	61	2023
Rate lock commitments	527		—		10		2023
Interest rate swaps and swaptions	2,445		—		65		2023-2053
Total derivatives not designated as hedging instruments	$	3,711	$	—	$	136

Offsetting Liabilities

The following table presents the derivatives subject to a master netting agreement, including the cash pledged as collateral:

	December 31, 2023
							Gross Amounts Not Offset in the Statements of Condition
(in millions)	Gross Amount		Gross Amounts Netted in the Statements of Condition		Net Amount Presented in the Statements of Condition		Financial Instruments		Cash Collateral Pledged (Received)
Derivatives designated hedging instruments:
Interest rate swaps on FHLB advances	$	2	$	—	$	2	$	—	$	75
Interest rate swaps on multi-family loans held for investment(1)	$	1	$	—	$	1	$	—	$	27
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards	$	11	$	—	$	11	$	—	$	(1)
Interest rate swaptions	115		—		115		—		(34)
Total derivative assets	$	126	$	—	$	126	$	—	$	(35)
Liabilities
Futures	$	1	$	—	$	1	$	—	$	3
Mortgage-backed securities forwards	32		—		32		—		57
Interest rate swaps (1)	59		—		59		—		42
Total derivative liabilities	$	92	$	—	$	92	$	—	$	102

(1)Variation margin pledged to, or received from, a Central Counterparty Clearing House to cover the prior days fair value of open positions is considered settlement of the derivative position for accounting purposes.

The following table presents the derivatives subject to a master netting agreement, including the cash pledged as collateral:

	December 31, 2022
							Gross Amounts Not Offset in the Statements of Condition
(in millions)	Gross Amount		Gross Amounts Netted in the Statements of Condition		Net Amount Presented in the Statements of Condition		Financial Instruments		Cash Collateral Pledged (Received)
Derivatives designated hedging instruments:
Interest rate swaps on FHLB advances	$	5	$	—	$	5	$	4	$	27
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards	$	36	$	—	$	36	$	—	$	(9)
Interest rate swaptions	182		—		182		—		(36)
Futures	2				2				1
Total derivative assets	$	220	$	—	$	220	$	—	$	(44)
Liabilities
Mortgage-backed securities forwards	$	61	$	—	$	61	$	—	$	54
Interest rate swaps (1)	65		—		65		—		29
Total derivative liabilities	$	126	$	—	$	126	$	—	$	83

(1)Variation margin pledged to, or received from, a Central Counterparty Clearing House to cover the prior days fair value of open positions is considered settlement of the derivative position for accounting purposes.

Offsetting Assets

The following table presents the derivatives subject to a master netting agreement, including the cash pledged as collateral:

	December 31, 2023
							Gross Amounts Not Offset in the Statements of Condition
(in millions)	Gross Amount		Gross Amounts Netted in the Statements of Condition		Net Amount Presented in the Statements of Condition		Financial Instruments		Cash Collateral Pledged (Received)
Derivatives designated hedging instruments:
Interest rate swaps on FHLB advances	$	2	$	—	$	2	$	—	$	75
Interest rate swaps on multi-family loans held for investment(1)	$	1	$	—	$	1	$	—	$	27
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards	$	11	$	—	$	11	$	—	$	(1)
Interest rate swaptions	115		—		115		—		(34)
Total derivative assets	$	126	$	—	$	126	$	—	$	(35)
Liabilities
Futures	$	1	$	—	$	1	$	—	$	3
Mortgage-backed securities forwards	32		—		32		—		57
Interest rate swaps (1)	59		—		59		—		42
Total derivative liabilities	$	92	$	—	$	92	$	—	$	102

(1)Variation margin pledged to, or received from, a Central Counterparty Clearing House to cover the prior days fair value of open positions is considered settlement of the derivative position for accounting purposes.

The following table presents the derivatives subject to a master netting agreement, including the cash pledged as collateral:

	December 31, 2022
							Gross Amounts Not Offset in the Statements of Condition
(in millions)	Gross Amount		Gross Amounts Netted in the Statements of Condition		Net Amount Presented in the Statements of Condition		Financial Instruments		Cash Collateral Pledged (Received)
Derivatives designated hedging instruments:
Interest rate swaps on FHLB advances	$	5	$	—	$	5	$	4	$	27
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards	$	36	$	—	$	36	$	—	$	(9)
Interest rate swaptions	182		—		182		—		(36)
Futures	2				2				1
Total derivative assets	$	220	$	—	$	220	$	—	$	(44)
Liabilities
Mortgage-backed securities forwards	$	61	$	—	$	61	$	—	$	54
Interest rate swaps (1)	65		—		65		—		29
Total derivative liabilities	$	126	$	—	$	126	$	—	$	83

(1)Variation margin pledged to, or received from, a Central Counterparty Clearing House to cover the prior days fair value of open positions is considered settlement of the derivative position for accounting purposes.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

Interest rate swaps with notional amounts totaling $5.5 billion and $3.8 billion as of December 31, 2023 and December 31, 2022, were designated as cash flow hedges of certain FHLB borrowings.

The following table presents the effect of the Company’s cash flow derivative instruments on AOCL:

	For the Years Ended December 31,
(in millions)	2023		2022		2021
Amount of gain (loss) recognized in AOCL	$	9	$	88	$	8
Amount of reclassified from AOCL to interest expense	$	(65)	$	(4)	$	25

Schedule of Net Gain (Loss) Recognized in Income on Derivative 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:

		For the Years Ended December 31,
(dollars in millions)		2023		2022
Derivatives not designated as hedging instruments	Location of Gain (Loss)
Futures	Net return on mortgage servicing rights	$	1	$	(1)
Interest rate swaps and swaptions	Net return on mortgage servicing rights	(34)		(11)
Mortgage-backed securities forwards	Net return on mortgage servicing rights	(15)		(4)
Rate lock commitments and US Treasury futures	Net gain on loan sales	2		28
Forward commitments	Other noninterest income	—		(1)
Interest rate swaps (1)	Other non-interest income	(1)		—
Total derivative (loss) gain		$	(47)	$	11

(1) Includes customer-initiated commercial interest rate swaps.