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Derivative and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

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:

			March 31, 2024
									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					$	26					$	—					2025-2028
Derivatives designated as fair value hedging instruments:
Interest rate swaps on multi-family loans held for investment			$	2,000					$	—					$	—					2025-2027
Derivatives not designated as hedging instruments:
Assets
Futures			$	1,890					$	1					$	—					2024
Mortgage-backed securities forwards			1,468						7						—						2024
Rate lock commitments			1,847						11						—						2024
Interest rate swaps and swaptions			5,745						103						—						2024-2041
Liabilities
Mortgage-backed securities forwards			$	1,375					$	—					$	9					2024
Rate lock commitments			225						—						3						2024
Interest rate swaps and swaptions			2,833						—						61						2024-2054

			December 31, 2023
									Fair Value
(in millions)			Notional Amount						Other Assets						Other Liabilities						Expiration Date
Derivatives designated as cash flow hedging instruments:
Interest rate swaps on FHLB advances			$	5,500					$	—					$	2					2025-2028
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
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

Schedule of Derivatives Subject to a Master Netting Arrangement

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

			March 31, 2024
																					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			$	26					$	—					$	26					$	—					$	90
Interest rate swaps on multi-family loans held for investment(1)			$	—					$	—					$	—					$	—					$	33
Derivatives not designated as hedging instruments:
Assets
Mortgage-backed securities forwards			$	7					$	—					$	7					$	—					$	—
Interest rate swaptions			103						—						103						—						3
Futures			1						—						1						—						1
Total derivative assets			$	111					$	—					$	111					$	—					$	4
Liabilities
Mortgage-backed securities forwards			9						—						9						—						8
Interest rate swaps (1)			61						—						61						—						49
Total derivative liabilities			$	70					$	—					$	70					$	—					$	57

(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, 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)
Futures									—						—						—						—
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.

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

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

(in millions)			For the three months ended March 31, 2024						For the Year Ended December 31, 2023						For the Three Months Ended March 31, 2023
Amount of gain (loss) recognized in AOCL			$	91					$	9					$	(90)
Amount of reclassified from AOCL to interest expense			$	(23)					$	(65)					$	(6)

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:

(dollars in millions)						Three Months Ended March 31, 2024						Three Months Ended December 31, 2023
Derivatives not designated as hedging instruments			Location of Gain (Loss)
Futures			Net return on mortgage servicing rights			$	2					$	(2)
Interest rate swaps and swaptions			Net return on mortgage servicing rights			(34)						49
Mortgage-backed securities forwards			Net return on mortgage servicing rights			(12)						10
Rate lock commitments and US Treasury futures			Net gain on loan sales			22						(37)
Interest rate swaps (1)			Other non-interest income			(3)						(2)
Total derivative (loss) gain						$	(25)					$	18

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

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