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Employee Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefits Employee Benefits
Retirement Plan

The New York Community Bancorp, Inc. Retirement Plan (the “Retirement Plan”) covers substantially all employees who had attained minimum age, service, and employment status requirements prior to the date when the individual plans were frozen by the banks of origin. Once frozen, the individual plans ceased to accrue additional benefits, service, and compensation factors, and became closed to employees who would otherwise have met eligibility requirements after the “freeze” date.

The following table sets forth certain information regarding the Retirement Plan as of the dates indicated:
December 31,
(in millions)20232022
Change in Benefit Obligation:
Benefit obligation at beginning of year$116 $158 
Interest cost5 4 
Actuarial gain2 (38)
Annuity payments(7)(7)
Settlements(1)(1)
Benefit obligation at end of year$115 $116 
Change in Plan Assets:
Fair value of assets at beginning of year$228 $283 
Actual return (loss) on plan assets33 (47)
Annuity payments(7)(7)
Settlements(1)(1)
Fair value of assets at end of year$253 $228 
Funded status (included in “Other assets”)$138 $112 
Changes recognized in other comprehensive income for the year ended December 31:
Amortization of actuarial loss$(7)$(2)
Net actuarial (gain) loss arising during the year(18)26 
Total recognized in other comprehensive income for the year (pre-tax)$(25)$24 
Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
Actuarial loss, net$41 $66 
Total accumulated other comprehensive loss (pre-tax)$41 $66 

In 2024 $3 million of unrecognized net actuarial loss for the Retirement Plan will be amortized from AOCL into net periodic benefit cost, respectively. The comparable amount recognized as net actuarial loss for the Retirement Plan in 2023 was $7 million and no prior service cost was amortized in 2022. The discount rates used to determine the benefit obligation at December 31, 2023 and 2022 were 4.7 percent and 4.9 percent, respectively.
The discount rate reflects rates at which the benefit obligation could be effectively settled. To determine this rate, the Company considers rates of return on high-quality fixed-income investments that are currently available and are expected to be available during the period until the pension benefits are paid. The expected future payments are discounted based on a portfolio of high-quality rated bonds (AA or better) for which the Company relies on the Financial Times Stock Exchange (“FTSE”) Pension Liability Index that is published as of the measurement date.
The components of net periodic pension (credit) expense were as follows for the years indicated:

Years Ended December 31,
(in millions)202320222021
Components of net periodic pension expense (credit):
Interest cost$5 $4 $4 
Expected return on plan assets(14)(16)(16)
Amortization of net actuarial loss7 2 7 
Net periodic pension credit$(2)$(10)$(5)
The following table indicates the weighted average assumptions used in determining the net periodic benefit cost for the years indicated:

Years Ended December 31,
202320222021
Discount rate4.9 %2.6 %2.2 %
Expected rate of return on plan assets6.3 6.0 6.3 

The primary long-term objective for the Plan is to maintain assets at a level that will sufficiently cover future beneficiary obligations. A secondary long-term objective is to achieve long-term growth in assets. The Plan will be structured to include a volatility reducing component (the fixed income commitment) and a growth component (the equity commitment).

To achieve the Companies (in this context, the "Plan Sponsor") long-term investment objectives, the Trustee will invest the assets of the Plan in a diversified combination of asset classes, investment strategies, and pooled vehicles. The asset allocation guidelines in the table below reflect the plan sponsor’s risk tolerance and long-term objectives for the Plan. These parameters will be reviewed on a regular basis and subject to change following discussions between the plan sponsor and the Trustee.

Initially, the following asset allocation targets and ranges will guide the Trustee in structuring the overall allocation in the Plan’s investment portfolio. The plan sponsor or the Trustee may amend these allocations to reflect the most appropriate standards consistent with changing circumstances. Any such fundamental amendments in strategy will be discussed between the
plan sponsor and the Trustee prior to implementation.

Based on the above considerations, the following asset allocation ranges will be implemented:
Asset Allocation Parameters by Asset Class
Equity
Minimum
Target
Maximum
U.S. Large-Cap
27%
U.S. Mid-Cap
7%
U.S. Small-Cap
7%
Non-U.S.
14%
Total - Equity
45%55%65%
Total - Fixed Income/Cash Equivalents
35%45%55%

The parameters for each asset class provide the Trustee with the latitude for managing the Plan within a minimum and maximum range. The Trustee will have full discretion to buy, sell, invest and reinvest in these asset segments based on these guidelines which includes allowing the underlying investments to fluctuate within the stated policy ranges. The Plan will maintain a cash equivalents component (not to exceed 3 percent under normal circumstances) within the fixed income allocation for liquidity purposes.

The Trustee will monitor the actual asset segment exposures of the Plan on a regular basis and, periodically, may adjust the asset allocation within the ranges set forth above as it deems appropriate. Periodic reallocation of assets will be based on the Trustee’s perception of the changing risk/return opportunities of the respective asset classes.
The following table presents information about the fair value measurements of the investments held by the Retirement Plan as of December 31, 2023:

(in millions)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Equity:
  Large-cap value (1)
$12 $12 $— $— 
  Large-cap growth (2)
22 22 — — 
  Large-cap core (3)
17 17 — — 
  Mid-cap core (4)
15 15 — — 
  Small-cap core (5)
16 16 — — 
  International growth (6)
18 18 — — 
  International value (7)
10 10 — — 
Fixed Income Funds:
  Intermediate - Core Plus (8)
98 98 — — 
Equity Securities:
  Company common stock
31 31 — — 
Common/Collective Trusts-Equity:
  Large cap value (9)
13 — 13 — 
Cash Equivalents:
  Money market (10)
1 1 — 
$253 $240 $13 $— 
(1)This category consists of a mutual fund holding 100-160 stocks, designed to track and outperform the Russell 1000 Value Index.
(2)This category consists of two mutual funds which invest primarily in large-cap U.S. - based growth companies, one concentrating on long-term capital growth, the other in long-term capital appreciation and current income.
(3)This category contains stocks of the S&P 500 Index. The stocks are maintained in approximately the same weightings as the index.
(4)This category contains stocks of the CRSP U.S. Mid Cap Index, a broadly diversified index of stocks of medium-size U.S. companies. The stocks are maintained.
(5)This category seeks long-term capital appreciation through investment primarily in common stock of small-capitalization companies, with similar risk levels and characteristics to the Russell 2000 Index.
(6)This category consists of investments with long-term growth potential located primarily in Europe, the Pacific Basin, and other developed and emerging markets.
(7)This category invests primarily in medium to large well-established non-US companies. Under normal circumstances, at least 80 percent of total assets will be invested in equity securities, including common stocks, preferred stocks, and convertible securities.
(8)This category currently includes equal investments in four mutual funds, seeking to outperform the Bloomberg Barclays U.S. Aggregate Bond Index. Two of the funds hold at least 80 percent in investment grade fixed-income securities while one other holds at least 65 percent; the fourth fund targets investments of 50 percent or more in mortgage-backed securities guaranteed by the US government and its agencies.
(9)This category contains large-cap stocks with above-average yield. The portfolio typically holds between 60 and 70 stocks.
(10)This category consists of a money market fund and is used for liquidity purposes.

Current Asset Allocation
The asset allocations for the Retirement Plan were as follows:
December 31,
20232022
Equity securities61 %60 %
Debt securities39 %38 %
Cash equivalents— %2 %
Total100 %100 %

Determination of Long-Term Rate of Return
The long-term rate of return on Retirement Plan assets assumption was based on historical returns earned by equities and fixed income securities, and adjusted to reflect expectations of future returns as applied to the Retirement Plan’s target allocation of asset classes. Equities and fixed income securities were assumed to earn long-term rates of return in the ranges of 6 percent to 8 percent and 3 percent to 5 percent, respectively, with an assumed long-term inflation rate of 2.5 percent reflected within these ranges. When these overall return expectations are applied to the Retirement Plan’s target allocations, the result is an expected rate of return of 5 percent to 7 percent.
Expected Contributions
The Company does not expect to contribute to the Retirement Plan in 2023.
Expected Future Annuity Payments
The following annuity payments, which reflect expected future service, as appropriate, are expected to be paid by the Retirement Plan during the years indicated:

(in millions)
2024$8 
20258 
20268 
20278 
20288 
2029 and thereafter43 
Total$83 

Qualified Savings Plan (401(k) Plan)

The Company maintains a defined contribution qualified savings plan in the form of a 401(k) plan in which all salaried employees are able to participate after one month of service and having attained age 21. The Company instituted a safe harbor matching contribution program during the year ended December 31, 2020, and accordingly, the Company matches a portion of employee 401(k) plan contributions. Such expense totaled $21 million and $7 million for the year ended December 31, 2023 and 2022, respectively. Flagstar also maintains a defined contribution qualified savings plan in the form of a 401(k) plan in which certain employees are able to participate.

Post-Retirement Health and Welfare Benefits

The Company offers certain post-retirement benefits, including medical, dental, and life insurance (the “Health & Welfare Plan”) to retired employees, depending on age and years of service at the time of retirement. The costs of such benefits are accrued during the years that an employee renders the necessary service.
The Health & Welfare Plan is an unfunded plan and is not expected to hold assets for investment at any time. Any contributions made to the Health & Welfare Plan are used to immediately pay plan premiums and claims as they come due.
The following table sets forth certain information regarding the Health & Welfare Plan as of the dates indicated:

December 31,
(in millions)20232022
Change in benefit obligation:
Benefit obligation at beginning of year$7 $10 
Interest cost1 — 
Actuarial gain1 (2)
Premiums and claims paid(1)(1)
Benefit obligation at end of year$8 $7 
Change in plan assets:
Fair value of assets at beginning of year$— $— 
Employer contribution1 1 
Premiums and claims paid(1)(1)
Fair value of assets at end of year$— $— 
Funded status (included in “Other liabilities”)$(8)$(7)
Changes recognized in other comprehensive income for the year ended December 31:
Amortization of prior service cost— 
Amortization of actuarial gain— 
Net actuarial (gain) loss arising during the year1 (2)
Total recognized in other comprehensive income for the year (pre-tax)$1 $(2)
Accumulated other comprehensive (gain) loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
Prior service cost— 
Actuarial (gain) loss, net(1)(2)
Total accumulated other comprehensive income (pre-tax)$(1)$(2)

The discount rates used in the preceding table were 4.6 percent at December 31, 2023 and 4.8 percent at December 31, 2022.
The estimated net actuarial loss and the prior service liability that will be amortized from AOCL into net periodic benefit cost in 2024 are less than $1 million, respectively.
The net periodic benefit costs and all components thereof for the years-ended December 31, 2023 and 2022 were less than $1 million.

The following table presents the weighted average assumptions used in determining the net periodic benefit cost for the years indicated:
Years Ended December 31,
202320222021
Discount rate4.8%2.3%2.0%
Current medical trend rate6.56.56.5
Ultimate trend rate5.05.05.0
Year when ultimate trend rate will be reached202920282027

Expected Contributions
The Company expects to contribute $1 million to the Health & Welfare Plan to pay premiums and claims in the fiscal year ending December 31, 2023.
Expected Future Payments for Premiums and Claims
The following amounts are currently expected to be paid for premiums and claims during the years indicated under the Health & Welfare Plan:

(in millions)
2024$1 
20251 
20261 
20271 
20281 
2029 and thereafter2 
Total$7