XML 17 R18.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Borrowed Funds | 12 Months Ended
--- | ---
Dec. 31, 2019
Borrowed Funds | NOTE 9: BORROWED FUNDS The following table summarizes the Company’s borrowed funds at December 31, 2019 and 2018:
|  | December 31, |
(in thousands) |  | 2019 |  |  | 2018 |
Wholesale borrowings: |  |  |  |  |  |  |  |
FHLB advances |  | $ | 13,102,661 |  |  | $ | 13,053,661 |
Repurchase agreements |  |  | 800,000 |  |  |  | 500,000 |
Total wholesale borrowings |  | $ | 13,902,661 |  |  | $ | 13,553,661 |
Junior subordinated debentures |  |  | 359,866 |  |  |  | 359,508 |
Subordinated notes |  |  | 295,066 |  |  |  | 294,697 |
Total borrowed fund s |  | $ | 14,557,593 |  |  | $ | 14,207,866 |
Accrued interest on borrowed funds is included in “Other liabilities” in the Consolidated Statements of Condition and amounted to $23.4 million and $23.5 million, respectively, at December 31, 2019 and 2018. FHLB Advances The contractual maturities and the next call dates of FHLB advances outstanding at December 31, 2019 were as follows:
|  | Contractual Maturity |  |  | Earlier of Contractual Maturity or Next Call Date |
(dollars in thousands) Year |  | Amount |  |  | Weighted Average Interest Rate |  |  | Amount |  |  | Weighted Average Interest Rate |
2020 |  | $ | 4,525,000 |  |  |  | 2.06 |  |  | $ | 6,805,000 |  |  |  | 2.09 |
2021 |  |  | 822,661 |  |  |  | 2.40 |  |  |  | 4,222,661 |  |  |  | 2.30 |
2022 |  |  | 275,000 |  |  |  | 2.01 |  |  |  | 1,875,000 |  |  |  | 1.55 |
2023 |  |  | — |  |  |  | — |  |  |  | 200,000 |  |  |  | 1.61
2028 |  |  | 4,350,000 |  |  |  | 2.40 |  |  |  | — |  |  |  | — |
2029 |  |  | 3,130,000 |  |  |  | 1.55 |  |  |  | — |  |  |  | — |
Total FHLB advance s |  | $ | 13,102,661 |  |  |  | 2.07 | % |  | $ | 13,102,661 |  |  |  | 2.07 | %
FHLB advances include both straight fixed-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. The Company had $1.0 billion of short-term FHLB advances at December 31, 2019 . During the twelve months ended December 31, 2019, the average balance of short-term FHLB advances were $52.4 million, with a weighted average interest rate of 1.9%, generating interest expense of $1.0 million. There were no short-term advances at December 31, 2018. During the twelve months ended at December 31, 2017, the average balances of short-term FHLB advances were $3.3 million, with a weighted average interest rate of 0.82%, generating interest expense of $27,000. At December 31, 2019 and 2018, respectively, the Bank had unused lines of available credit with the FHLB of up to $7.9 billion and $7.5 billion. The Company had overnight advances of $100.0 million at December 31, 2019 . The re were no over night FHLB advances a t December 31, 2018. During the twelve months ended December 31, 2019, the average balance of overnight advances amounted to $3.1 million, with a weighted average interest rate of 2.1%, generating interest expense of $66,000. During the twelve months ended December 31, 2018 and 2017, the average balances of overnight advances amounted to $5.2 million and $7.7 million, with weighted average interest rates of 2.3% and 0.98%, respectively. In 2018 and 2017, the interest expense generated by average overnight advances was $121,000 and $75,000. Total FHLB advances generated interest expense of $259.0 million, $248.0 million, and $186.0 million, in the years ended December 31, 2019, 2018, and 2017, respectively. Repurchase Agreements The following table presents an analysis of the contractual maturities and next call dates of the Company’s outstanding repurchase agreements accounted for as secured borrowings at December 31, 2019 :
|  | Contractual Maturity |  |  | Earlier of Contractual Maturity or Next Call Date |
(dollars in thousands) Year |  | Amount |  |  | Weighted Average Interest Rate |  |  | Amount |  |  | Weighted Average Interest Rate |
2021 |  | $ | — |  |  |  | — | % |  | $ | 400,000 |  |  |  | 2.31 | %
2022 |  |  | — |  |  |  | — |  |  |  | 400,000 |  |  |  | 2.16 |
2028 |  |  | 300,000 |  |  |  | 2.37 |  |  |  | — |  |  |  | — |
2029 |  |  | 500,000 |  |  |  | 2.16 |  |  |  | — |  |  |  | — |
|  | $ | 800,000 |  |  |  | 2.24 |  |  | $ | 800,000 |  |  |  | 2.24 |
The following table provides the contractual maturity and weighted average interest rate of repurchase agreements, and the amortized cost and fair value of the securities collateralizing the repurchase agreements, at December 31, 2019:
|  |  |  |  |  |  |  | Mortgage-Related and Other Securities |  |  | GSE Debentures and U.S. Treasury Obligations |
(dollars in thousands) Period of Maturity |  | Amount |  |  | Weighted Average Interest Rate |  |  | Amortized Cost |  |  | Fair Value |  |  | Amortized Cost |  |  | Fair Value |
30 to 90 days |  | $ | — |  |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Greater than 90 days |  |  | 800,000 |  |  |  | 2.24 | % |  |  | 232,836 |  |  |  | 238,180 |  |  |  | 636,190 |  |  |  | 637,050 |
Total |  | $ | 800,000 |  |  |  | 2.24 | % |  | $ | 232,836 |  |  | $ | 238,180 |  |  | $ | 636,190 |  |  | $ | 637,050 |
The Company had no short-term repurchase agreements outstanding at December 31, 2019 or 2018. At December 31, 2019 and 2018, the accrued interest on repurchase agreements amounted to $1.7 million and $287,000, respectively. The interest expense on repurchase agreements was $17.7 million, $6.8 million, and $16.4 million, in the years ended December 31, 2019, 2018, and 2017, respectively. Federal Funds Purchased There were no federal funds purchased outstanding at December 31, 2019 or 2018. In 2019 and 2018, respectively, the average balances of federal funds purchased were $6.8 million and $620,000, with weighted average interest rates of 1.7% and 2.2%. In 2017, the average balance of federal funds purchased amounted to $47.9 million with a weighted average interest rate of 2.2%. The interest expense produced by federal funds purchased was $118,000, $14,000 and $418,000 for the years ended December 31, 2019, 2018 and 2017, respectively. Junior Subordinated Debentures At December 31, 2019 and 2018, the Company had $359.9 million and $359.5 million, respectively, of outstanding junior subordinated deferrable interest debentures (“junior subordinated debentures”) held by statutory business trusts (the “Trusts”) that issued guaranteed capital securities. The Trusts are accounted for as unconsolidated subsidiaries, in accordance with GAAP. The proceeds of each issuance were invested in a series of junior subordinated debentures of the Company and the underlying assets of each statutory business trust are the relevant debentures. The Company has fully and unconditionally guaranteed the obligations under each trust’s capital securities to the extent set forth in a guarantee by the Company to each trust. The Trusts’ capital securities are each subject to mandatory redemption, in whole or in part, upon repayment of the debentures at their stated maturity or earlier redemption. The following junior subordinated debentures were outstanding at December 31, 2019:
Issuer |  | Interest Rate of Capital Securities and Debentures |  |  | Junior Subordinated Debentures Amount Outstanding |  |  | Capital Securities Amount Outstanding |  |  | Date of Original Issue |  |  | Stated Maturity |  |  | First Optional Redemption Date |
|  |  |  |  | (dollars in thousands) |  |  |  |  |  |  |  |  |  |
New York Community Capital Trust V (BONUSES SM Units) |  |  | 6.00 | % |  | $ | 145,940 |  |  | $ | 139,589 |  |  |  | Nov. 4, 2002 |  |  |  | Nov. 1, 2051 |  |  |  | Nov. 4, 2007 | (1)
New York Community Capital Trust X |  |  | 3.49 |  |  |  | 123,712 |  |  |  | 120,000 |  |  |  | Dec. 14, 2006 |  |  |  | Dec. 15, 2036 |  |  |  | Dec. 15, 2011 | (2)
PennFed Capital Trust III |  |  | 5.14 |  |  |  | 30,928 |  |  |  | 30,000 |  |  |  | June 2, 2003 |  |  |  | June 15, 2033 |  |  |  | June 15, 2008 | (2)
New York Community Capital Trust XI |  |  | 3.61 |  |  |  | 59,286 |  |  |  | 57,500 |  |  |  | April 16, 2007 |  |  |  | June 30, 2037 |  |  |  | June 30, 2012 | (2)
Total junior subordinated debentures |  |  |  |  |  | $ | 359,866 |  |  | $ | 347,089 |  |  |  |  |  |  |  |  |  |  |  |  |
(1) | Callable subject to certain conditions as described in the prospectus filed with the SEC on November 4, 2002.
(2) | Callable from this date forward.
The Bifurcated Option Note Unit SecuritiES SM (“BONUSES units”) included in the preceding table were issued by the Company on November 4, 2002 at a public offering price of $50.00 per share. Each of the 5,500,000 BONUSES units offered consisted of a capital security issued by New York Community Capital Trust V, a trust formed by the Company, and a warrant to purchase 2.4953 shares of the common stock of the Company (for a total of approximately 13.7 million common shares) at an effective exercise price of $20.04 per share. Each capital security has a maturity of 49 years, with a coupon, or distribution rate, of 6.00% on the $50.00 per share liquidation amount. The warrants and capital securities were non-callable for five years from the date of issuance and were not called by the Company when the five-year period passed on November 4, 2007. The gross proceeds of the BONUSES units totaled $275.0 million and were allocated between the capital security and the warrant comprising such units in proportion to their relative values at the time of issuance. The value assigned to the warrants, $92.4 million, was recorded as a component of additional “paid-in capital” in the Company’ s Consolidated Statements of Condition. The value assigned to the capital security component was $ 182.6 million. The $ 92.4 million difference between the assigned value and the stated liquidation amount of the capital securities was treated as an original issue discount, and is being amortized to interest expense over the 49-year life of the capital securities on a level-yield basis. At December 31 , 2019 , this discount totaled $ 65.8 million. The other three 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 are deferrable, at the Company’s option, for up to five years. As of December 31 , 2019 , all dividends were current. Interest expense on junior subordinated debentures was $22.4 million, $21.7 million, and $19.6 million, respectively, for the years ended December 31, 2019, 2018, and 2017. Subordinated Notes At December 31, 2019 and 2018, the Company had $295.1 million and $294.7 million, respectively, of fixed-to-floating rate subordinated notes outstanding:
Date of Original Issue |  | Stated Maturity |  | Interest Rate (1) |  | Original Issue Amount
(dollars in thousands)
Nov. 6, 2018 |  | Nov. 6, 2028 |  | 5.90% |  | $300,000
(1) | From and including the date of original issuance to, but excluding November 6, 2023, the Notes will bear interest at an initial rate of 5.90% per annum payable semi-annually. Unless redeemed, from and including November 6, 2023 to but excluding the maturity date, the interest rate will reset quarterly to an annual interest rate equal to the then-current three-month LIBOR rate plus 278 basis point payable quarterly.
The interest expense on subordinated notes amounted to $18.3 million and $2.8 million, for the years ended December 31, 2019 and 2018, respectively.

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration