XML 24 R14.htm IDEA: XBRL DOCUMENT

LOANS HELD FOR INVESTMENT, NET

6 Months Ended

Jun. 30, 2024

7. LOANS HELD FOR INVESTMENT, NET

The following table presents the loan categories for the period ended as indicated:


(In thousands)	June 30, 2024		December 31, 2023
Business loans⁽¹⁾	$	2,530,782	$	2,308,171
One-to-four family residential and cooperative/condominium apartment		906,862		887,555
Multifamily residential and residential mixed-use		3,920,327		4,017,176
Non-owner-occupied commercial real estate		3,314,988		3,379,667
Acquisition, development, and construction ("ADC")		144,860		168,513
Other loans		6,699		5,755
Total		10,824,518		10,766,837
Fair value hedge basis point adjustments ⁽²⁾		340		6,591
Total loans, net of fair value hedge basis point adjustments		10,824,858		10,773,428
Allowance for credit losses		(77,812)		(71,743)
Loans held for investment, net	$	10,747,046	$	10,701,685

⁽¹⁾ Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.

⁽²⁾ The loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged owner-occupied commercial real estate in business loans, one-to-four family residential mortgage loans, multifamily residential mortgage loans and non-owner occupied commercial real estate loans.

The following tables present data regarding the allowance for credit losses activity for the periods indicated:

At or for the Three Months Ended June 30, 2024

One-to-Four

Family

Multifamily

Residential and

Residential

Cooperative/

and

Non-Owner-Occupied

Business

Condominium

Residential

Commercial

Other

(In thousands)

Loans

Apartment

Mixed-Use

Real Estate

ADC

Loans

Total

Allowance for credit losses:

Beginning balance

35,981

6,973

11,171

19,445

2,322

176

76,068

(Credit) provision for credit losses

2,212

332

3,737

(1,105)

133

5,384

Charge-offs

(1,179)

—

(2,551)

—

(15)

(3,745)

Recoveries

101

—

105

Ending balance

37,115

7,305

12,357

18,340

2,455

240

77,812


	At or for the Three Months Ended June 30, 2023
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
	Business		Condominium		Residential		Commercial				Other
(In thousands)	Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	43,879	$	6,012	$	7,613	$	18,076	$	2,515	$	240	$	78,335
(Credit) provision for credit losses		(542)		421		577		364		43		127		990
Charge-offs		(3,745)		(14)		—		—		—		(33)		(3,792)
Recoveries		108		—		—		—		—		5		113
Ending balance	$	39,700	$	6,419	$	8,190	$	18,440	$	2,558	$	339	$	75,646

At or for the Six Months Ended June 30, 2024

One-to-Four

Family

Multifamily

Residential and

Residential

Cooperative/

and

Non-Owner-Occupied

Business

Condominium

Residential

Commercial

Other

(In thousands)

Loans

Apartment

Mixed-Use

Real Estate

ADC

Loans

Total

Allowance for credit losses:

Beginning balance

35,962

6,813

7,237

19,623

1,989

119

71,743

Provision (recovery) for credit losses

2,946

492

7,671

(1,283)

466

156

10,448

Charge-offs

(1,975)

—

(2,551)

—

(45)

(4,571)

Recoveries

182

—

192

Ending balance

37,115

7,305

12,357

18,340

2,455

240

77,812


	At or for the Six Months Ended June 30, 2023
			One-to-Four
			Family		Multifamily
			Residential and		Residential
			Cooperative/		and		Non-Owner-Occupied
	Business		Condominium		Residential		Commercial				Other
(In thousands)	Loans		Apartment		Mixed-Use		Real Estate		ADC		Loans		Total
Allowance for credit losses:
Beginning balance	$	47,029	$	5,969	$	8,360	$	20,153	$	1,723	$	273	$	83,507
(Recovery) provision for credit losses		(2,150)		464		(170)		(1,713)		835		93		(2,641)
Charge-offs		(5,774)		(14)		—		—		—		(34)		(5,822)
Recoveries		595		—		—		—		—		7		602
Ending balance	$	39,700	$	6,419	$	8,190	$	18,440	$	2,558	$	339	$	75,646

The following tables present the amortized cost basis of loans on non-accrual status as of the periods indicated:


	June 30, 2024
	Non-accrual with			Non-accrual with
(In thousands)	No Allowance		Allowance			Reserve
Business loans	$	3,776	$	16,511	$	14,384
One-to-four family residential and cooperative/condominium apartment		—		3,884		152
Non-owner-occupied commercial real estate		—		15		15
ADC		—		657		287
Total	$	3,776	$	21,067	$	14,838


	December 31, 2023
	Non-accrual with			Non-accrual with
(In thousands)	No Allowance		Allowance			Reserve
Business loans	$	1,482	$	13,185	$	12,932
One-to-four family residential and cooperative/condominium apartment		—		3,248		133
Non-owner-occupied commercial real estate		2,298		8,229		832
ADC		—		657		305
Total	$	3,780	$	25,319	$	14,202

The Company did not recognize interest income on non-accrual loans held for investment during the three or six months ended June 30, 2024 and 2023.

The following tables summarize the past due status of the Company’s investment in loans as of the dates indicated:

June 30, 2024

Loans 90

Days or

Total

30 to 59

60 to 89

More Past Due

Past Due

Days

and Still

and

Total

(In thousands)

Past Due

Accruing Interest

Non-accrual

Current

Loans

Business loans

6,465

2,377

—

20,287

29,129

2,501,653

2,530,782

One-to-four family residential, including condominium and cooperative apartment

5,626

1,773

—

3,884

11,283

895,579

906,862

Multifamily residential and residential mixed-use

2,229

27,577

—

29,806

3,890,521

3,920,327

Non-owner-occupied commercial real estate

6,497

700

—

7,212

3,307,776

3,314,988

ADC

—

657

144,203

144,860

Other loans

—

6,605

6,699

Total

20,911

32,427

—

24,843

78,181

10,746,337

10,824,518


	December 31, 2023
					Loans 90
					Days or				Total
	30 to 59		60 to 89		More Past Due				Past Due
	Days		Days		and Still				and				Total
(In thousands)	Past Due		Past Due		Accruing Interest		Non-accrual		Non-accrual		Current		Loans
Business loans	$	7,139	$	1,217	$	—	$	18,574	$	26,930	$	2,281,241	$	2,308,171
One-to-four family residential, including condominium and cooperative apartment		4,071		73		—		3,248		7,392		880,163		887,555
Multifamily residential and residential mixed-use		—		—		—		—		—		4,017,176		4,017,176
Non-owner-occupied commercial real estate		337		—		—		6,620		6,957		3,372,710		3,379,667
ADC		430		—		—		657		1,087		167,426		168,513
Other loans		—		—		—		—		—		5,755		5,755
Total	$	11,977	$	1,290	$	—	$	29,099	$	42,366	$	10,724,471	$	10,766,837

Accruing Loans 90 Days or More Past Due:

The Company did not have accruing loans 90 days or more past due as of June 30, 2024 or December 31, 2023.

Collateral Dependent Loans:

The Company had collateral dependent loans which were individually evaluated to determine expected credit losses as of the dates indicated:


	June 30, 2024				December 31, 2023
	Real Estate		Associated Allowance		Real Estate		Associated Allowance
(In thousands)	Collateral Dependent		for Credit Losses		Collateral Dependent		for Credit Losses
Business loans	$	5,440	$	1,210	$	3,742	$	—
Non-owner-occupied commercial real estate		—		—		6,605		621
ADC		657		287		657		305
Total	$	6,097	$	1,497	$	11,004	$	926

Loan Restructurings

The Company adopted ASU No. 2022-02 on January 1, 2023, which eliminates the recognition and measurement of a Troubled Debt Restructuring (“TDR”). Due to the removal of the TDR designation, the Company applies the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include conditions where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and/or a combination of these modifications. The disclosures related to loan restructuring are only for modifications that directly affect cash flows.

The following table presents loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of concession granted during the three and six months June 30, 2024 and 2023:


	For the Three Months Ended June 30, 2024

												Significant Payment
					Term Extension		Significant Payment Delay		Term Extension			Delay, Term Extension			% of
			Significant		and Significant		and Interest		and Interest Rate			and Interest			Total Class of
(Dollars in thousands)	Term Extension		Payment Delay		Payment Delay		Rate Reduction		Reduction			Rate Reduction	Total		Financing Receivable
Business loans	$	1,200	$	—	$	—	$	—		—	$	—	$	1,200	0.0	%
One-to-four family residential, including condominium and cooperative apartment		—		—		—		—		904		—		904	0.1
Total	$	1,200	$	—	$	—	$	—	$	904	$	—	$	2,104	0.0	%


	For the Three Months Ended June 30, 2023
												Significant Payment
					Term Extension		Significant Payment Delay		Term Extension			Delay, Term Extension			% of
			Significant		and Significant		and Interest		and Interest Rate			and Interest			Total Class of
(Dollars in thousands)	Term Extension		Payment Delay		Payment Delay		Rate Reduction		Reduction			Rate Reduction	Total		Financing Receivable
Business loans	$	132	$	—	$	472	$	276	$	—	$	—	$	880	0.0	%
One-to-four family residential, including condominium and cooperative apartment		—		—		—		—		—		—		—	0.0
Total	$	132	$	—	$	472	$	276	$	—	$	—	$	880	0.0	%


	For the Six Months Ended June 30, 2024

												Significant Payment
					Term Extension		Significant Payment Delay		Term Extension			Delay, Term Extension			% of
			Significant		and Significant		and Interest		and Interest Rate			and Interest			Total Class of
(Dollars in thousands)	Term Extension		Payment Delay		Payment Delay		Rate Reduction		Reduction			Rate Reduction	Total		Financing Receivable
Business loans	$	1,340	$	1,201	$	288	$	28	$	—	$	—	$	2,857	0.1	%
One-to-four family residential, including condominium and cooperative apartment		—		—		421		—		904		—		1,325	0.1
Multifamily residential and residential mixed-use		—		52,290		—		—		—		—		52,290	1.3
Non-owner-occupied commercial real estate		—		31,093		—		—		—		—		31,093	0.9
Total	$	1,340	$	84,584	$	709	$	28	$	904	$	—	$	87,565	0.8	%


	For the Six Months Ended June 30, 2023

												Significant Payment
					Term Extension		Significant Payment Delay		Term Extension			Delay, Term Extension			% of
			Significant		and Significant		and Interest		and Interest Rate			and Interest			Total Class of
(Dollars in thousands)	Term Extension		Payment Delay		Payment Delay		Rate Reduction		Reduction			Rate Reduction	Total		Financing Receivable
Business loans	$	132	$	—	$	472	$	276	$	—	$	—	$	880	0.0	%
One-to-four family residential, including condominium and cooperative apartment		—		2,852		—		—		—		—		2,852	0.3
Total	$	132	$	2,852	$	472	$	276	$	—	$	—	$	3,732	0.0	%

The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty:


	For the Three Months Ended June 30, 2024
	Weighted Average		Weighted Average
	Interest Rate		Months of	Weighted Average
(Dollars in thousands)	Reductions		Term Extensions	Payment Delay
Business loans	—	%	14	$	—
One-to-four family residential, including condominium and cooperative apartment	1.0		231		—


	For the Three Months Ended June 30, 2023
	Weighted Average		Weighted Average
	Interest Rate		Months of	Weighted Average
(Dollars in thousands)	Reductions		Term Extensions	Payment Delay
Business loans	4.25	%	16	$	11


	For the Six Months Ended June 30, 2024
	Weighted Average		Weighted Average
	Interest Rate		Months of	Weighted Average
(Dollars in thousands)	Reductions		Term Extensions	Payment Delay
Business loans	5.00	%	14	$	147
One-to-four family residential, including condominium and cooperative apartment	1.00		161		13
Multifamily residential and residential mixed-use	—		—		340
Non-owner-occupied commercial real estate	—		—		560


	For the Six Months Ended June 30, 2023
	Weighted Average		Weighted Average
	Interest Rate		Months of	Weighted Average
(Dollars in thousands)	Reductions		Term Extensions	Payment Delay
Business loans	4.25	%	21	$	17
One-to-four family residential, including condominium and cooperative apartment	—		—		72

The Bank monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables provide the loan performance in the 12 months after a modification involving borrowers experiencing financial difficulty.

June 30, 2024

30-59

60-89

90+

(In thousands)

Current

Days Past Due

Non-Accrual

Total

Business loans

3,743

—

1,727

5,470

One-to-four family residential, including condominium and cooperative apartment

3,389

—

904

4,293

Multifamily residential and residential mixed-use

24,713

—

27,577

—

52,290

Non-owner-occupied commercial real estate

55,801

—

55,801

Total

87,646

—

27,577

—

2,631

117,854


	June 30, 2023
			30-59		60-89		90+
(In thousands)	Current		Days Past Due		Days Past Due		Days Past Due		Non-Accrual		Total
Business loans	$	—	$	—	$	—	$	—	$	880	$	880
One-to-four family residential, including condominium and cooperative apartment		2,852		—		—		—		—		2,852
Total	$	2,852	$	—	$	—	$	—	$	880	$	3,732

There were no loans made to borrowers experiencing financial difficulty that were modified during the six months ended June 30, 2024 and 2023, and that subsequently defaulted. For the purposes of this disclosure, a payment default is defined as 90 or more days past due and still accruing. Non-accrual loans that are modified to borrowers experiencing financial difficulty remain on non-accrual status until the borrower has demonstrated performance under the modified terms.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit structure, loan documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying them based on credit risk. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.

The following is a summary of the credit risk profile of loans by internally assigned grade as of the periods indicated, the years represent the year of origination for non-revolving loans:


	June 30, 2024
(In thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	178,606	$	254,370	$	380,067	$	210,387	$	172,763	$	410,411	$	736,591	$	49,015	$	2,392,210
Special mention		148		430		17,195		2,700		3,184		10,588		20,911		9,983		65,139
Substandard		—		—		9,019		2,785		5,325		22,651		1,542		31,364		72,686
Doubtful		—		—		—		—		—		747		—		—		747
Total business loans		178,754		254,800		406,281		215,872		181,272		444,397		759,044		90,362		2,530,782
YTD Gross Charge-Offs		—		—		79		65		—		165		—		1,666		1,975

One-to-four family residential, and condominium/cooperative apartment:
Pass		49,128		165,759		209,364		100,701		65,794		263,934		30,101		10,035		894,816
Special mention		—		—		—		—		—		726		159		—		885
Substandard		—		—		—		—		995		9,177		—		989		11,161
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		49,128		165,759		209,364		100,701		66,789		273,837		30,260		11,024		906,862
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Multifamily residential and residential mixed-use:
Pass		11,037		255,410		1,329,542		558,110		290,149		1,300,167		4,588		5,369		3,754,372
Special mention		—		—		1,202		9,281		14,327		58,240		—		—		83,050
Substandard		—		—		—		—		18,208		64,697		—		—		82,905
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		11,037		255,410		1,330,744		567,391		322,684		1,423,104		4,588		5,369		3,920,327
YTD Gross Charge-Offs		—		—		—		—		—		2,551		—		—		2,551

Non-owner-occupied commercial real estate
Pass		43,844		217,009		733,846		608,644		416,159		1,063,714		11,809		8,829		3,103,854
Special mention		—		—		—		19,587		74,985		26,587		—		—		121,159
Substandard		—		—		—		15		59,945		30,015		—		—		89,975
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		43,844		217,009		733,846		628,246		551,089		1,120,316		11,809		8,829		3,314,988
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

ADC:
Pass		10,208		27,337		34,753		23,312		—		2,824		30,614		188		129,236
Special mention		—		—		—		14,967		—		—		—		—		14,967
Substandard		—		—		—		—		—		—		—		657		657
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		10,208		27,337		34,753		38,279		—		2,824		30,614		845		144,860
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Total:
Pass		292,823		919,885		2,687,572		1,501,154		944,865		3,041,050		813,703		73,436		10,274,488
Special mention		148		430		18,397		46,535		92,496		96,141		21,070		9,983		285,200
Substandard		—		—		9,019		2,800		84,473		126,540		1,542		33,010		257,384
Doubtful		—		—		—		—		—		747		—		—		747
Total Loans	$	292,971	$	920,315	$	2,714,988	$	1,550,489	$	1,121,834	$	3,264,478	$	836,315	$	116,429	$	10,817,819
YTD Gross Charge-Offs	$	—	$	—	$	79	$	65	$	—	$	2,716	$	—	$	1,666	$	4,526


	December 31, 2023
(In thousands)	2023		2022		2021		2020		2019		2018 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	258,699	$	390,760	$	196,790	$	144,796	$	150,871	$	305,258	$	633,719	$	35,079	$	2,115,972
Special mention		481		41,682		1,199		13,567		7,125		3,150		21,108		25,306		113,618
Substandard		—		1,857		2,180		6,729		2,803		30,248		15,567		18,449		77,833
Doubtful		—		—		—		—		—		748		—		—		748
Total business loans		259,180		434,299		200,169		165,092		160,799		339,404		670,394		78,834		2,308,171
YTD Gross Charge-Offs		—		—		77		38		4,166		2,229		5,464		3,390		15,364

One-to-four family residential, and condominium/cooperative apartment:
Pass		170,601		213,479		102,684		69,524		62,356		213,131		31,205		12,493		875,473
Special mention		—		—		—		—		—		33		159		776		968
Substandard		—		—		—		1,005		337		8,711		—		1,061		11,114
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		170,601		213,479		102,684		70,529		62,693		221,875		31,364		14,330		887,555
YTD Gross Charge-Offs		—		—		—		—		—		—		—		14		14

Multifamily residential and residential mixed-use:
Pass		256,822		1,340,197		578,352		283,633		384,937		981,820		4,841		4,325		3,834,927
Special mention		—		—		9,334		3,880		3,886		64,273		—		—		81,373
Substandard		—		—		—		28,799		5,089		66,988		—		—		100,876
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		256,822		1,340,197		587,686		316,312		393,912		1,113,081		4,841		4,325		4,017,176
YTD Gross Charge-Offs		—		—		—		—		—		2		—		—		2

Non-owner-occupied commercial real estate
Pass		220,045		738,133		645,246		447,002		359,201		756,921		11,919		7,926		3,186,393
Special mention		—		—		19,872		75,378		4,563		2,763		—		—		102,576
Substandard		—		—		16		60,272		6,254		24,156		—		—		90,698
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		220,045		738,133		665,134		582,652		370,018		783,840		11,919		7,926		3,379,667
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

ADC:
Pass		16,735		17,534		59,202		9,900		2,665		437		22,444		225		129,142
Special mention		—		11,500		14,961		—		12,253		—		—		—		38,714
Substandard		—		—		—		—		—		—		—		657		657
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		16,735		29,034		74,163		9,900		14,918		437		22,444		882		168,513
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Total:
Pass		922,902		2,700,103		1,582,274		954,855		960,030		2,257,567		704,128		60,048		10,141,907
Special mention		481		53,182		45,366		92,825		27,827		70,219		21,267		26,082		337,249
Substandard		—		1,857		2,196		96,805		14,483		130,103		15,567		20,167		281,178
Doubtful		—		—		—		—		—		748		—		—		748
Total Loans	$	923,383	$	2,755,142	$	1,629,836	$	1,144,485	$	1,002,340	$	2,458,637	$	740,962	$	106,297	$	10,761,082
YTD Gross Charge-Offs	$	—	$	—	$	77	$	38	$	4,166	$	2,231	$	5,464	$	3,404	$	15,380

For other loans, the Company evaluates credit quality based on payment activity. Other loans that are 90 days or more past due are placed on non-accrual status, while all remaining other loans are classified and evaluated as performing. The following is a summary of the credit risk profile of other loans by internally assigned grade:


(In thousands)	June 30, 2024		December 31, 2023
Performing	$	6,699	$	5,755
Non-accrual		—		—
Total	$	6,699	$	5,755