XML 26 R14.htm IDEA: XBRL DOCUMENT

LOANS HELD FOR INVESTMENT, NET

3 Months Ended

Mar. 31, 2025

7. LOANS HELD FOR INVESTMENT, NET

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


(In thousands)	March 31, 2025		December 31, 2024
Business loans⁽¹⁾	$	2,788,201	$	2,725,726
One-to-four family residential and cooperative/condominium apartment		961,069		951,528
Multifamily residential and residential mixed-use		3,779,923		3,820,283
Non-owner-occupied commercial real estate		3,190,898		3,230,535
Acquisition, development, and construction ("ADC")		140,309		136,172
Other loans		6,402		5,084
Total		10,866,802		10,869,328
Fair value hedge basis point adjustments ⁽²⁾		1,933		2,615
Total loans, net of fair value hedge basis point adjustments		10,868,735		10,871,943
Allowance for credit losses		(90,455)		(88,751)
Loans held for investment, net	$	10,778,280	$	10,783,192

(1)	Business loans include commercial and industrial loans (“C&I loans”), owner-occupied commercial real estate loans and SBA Paycheck Protection Program (“PPP”) loans.

(2)	The loan portfolio included a fair value hedge basis point adjustment to the carrying amount of hedged 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 on loans held for investment for the periods indicated:

At or for the Three Months Ended March 31, 2025

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

42,898

9,501

11,946

21,876

2,323

207

88,751

Provision (recovery) for credit losses

931

288

1,141

6,281

8,762

Charge-offs

(176)

(44)

—

(7,082)

—

(35)

(7,337)

Recoveries

262

—

279

Ending balance

43,915

9,745

13,087

21,075

2,360

273

90,455


	At or for the Three Months Ended March 31, 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		734		160		3,934		(178)		333		81		5,064
Charge-offs		(796)		—		—		—		—		(30)		(826)
Recoveries		81		—		—		—		—		6		87
Ending balance	$	35,981	$	6,973	$	11,171	$	19,445	$	2,322	$	176	$	76,068

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


	March 31, 2025
	Non-accrual with		Non-accrual with		Related
(In thousands)	No Allowance		Allowance		Allowance
Business loans	$	3,624	$	18,320	$	16,297
One-to-four family residential and cooperative/condominium apartment		—		3,763		37
Non-owner-occupied commercial real estate		31,662		15		15
ADC		—		657		261
Total	$	35,286	$	22,755	$	16,610


	December 31, 2024
	Non-accrual with		Non-accrual with		Related
(In thousands)	No Allowance		Allowance		Allowance
Business loans	$	5,196	$	17,428	$	15,810
One-to-four family residential and cooperative/condominium apartment		—		3,213		31
Non-owner-occupied commercial real estate		16,456		6,504		432
ADC		—		657		287
Other loans		—		25		25
Total	$	21,652	$	27,827	$	16,585

The Company did not recognize interest income on non-accrual loans held for investment during the three months ended March 31, 2025 and 2024.

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

March 31, 2025

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

6,287

151

—

21,944

28,382

2,759,819

2,788,201

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

7,406

494

—

3,763

11,663

949,406

961,069

Multifamily residential and residential mixed-use

31,357

—

31,357

3,748,566

3,779,923

Non-owner-occupied commercial real estate

927

1,867

—

31,677

34,471

3,156,427

3,190,898

ADC

—

657

139,652

140,309

Other loans

—

6,402

Total

45,977

2,512

—

58,041

106,530

10,760,272

10,866,802


	December 31, 2024
					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	$	3,385	$	2,441	$	—	$	22,624	$	28,450	$	2,697,276	$	2,725,726
One-to-four family residential, including condominium and cooperative apartment		1,919		1,271		—		3,213		6,403		945,125		951,528
Multifamily residential and residential mixed-use		3,759		27,601		—		—		31,360		3,788,923		3,820,283
Non-owner-occupied commercial real estate		1,265		—		—		22,960		24,225		3,206,310		3,230,535
ADC		—		—		—		657		657		135,515		136,172
Other loans		2		—		—		25		27		5,057		5,084
Total	$	10,330	$	31,313	$	—	$	49,479	$	91,122	$	10,778,206	$	10,869,328

Accruing Loans 90 Days or More Past Due:

There were no accruing loans 90 days or more past due at March 31, 2025 or at December 31, 2024.

Collateral Dependent Loans:

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


	March 31, 2025				December 31, 2024
	Real Estate		Associated Allowance		Real Estate		Associated Allowance
(In thousands)	Collateral Dependent		for Credit Losses		Collateral Dependent		for Credit Losses
Business loans	$	9,032	$	1,452	$	9,290	$	1,408
Non-owner-occupied commercial real estate		31,662		—		22,944		416
ADC		657		261		657		287
Total	$	41,351	$	1,713	$	32,891	$	2,111

Loan Restructurings

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 tables show the amortized cost basis as of March 31, 2025 and 2024 of the loans modified to borrowers experiencing financial difficulty, disaggregated by loan category and type of concession granted:


	For the Three Months Ended March 31, 2025
					Term Extension		Significant Payment Delay		Term Extension				% of
			Significant		and Significant		and Interest		and Interest				Total Class of
(Dollars in thousands)	Term Extension		Payment Delay		Payment Delay		Rate Reduction		Rate Reduction		Total		Financing Receivable
Business loans	$	—	$	521	$	—	$	—	$	14,188	$	14,709	0.5	%
Multifamily residential and residential mixed-use		—		27,603		—		—		—		27,603	0.7
Non-owner-occupied commercial real estate		—		27,752		—		15,205		—		42,957	1.3
Total	$	—	$	55,876	$	—	$	15,205	$	14,188	$	85,269	0.8	%


	For the Three Months Ended March 31, 2024
									Significant
					Term Extension		Significant Payment Delay		Payment Delay, Term Extension				% of
			Significant		and Significant		and Interest		and Interest				Total Class of
(Dollars in thousands)	Term Extension		Payment Delay		Payment Delay		Rate Reduction		Rate Reduction		Total		Financing Receivable
Business loans	$	1,889	$	1,207	$	304	$	29	$	—	$	3,429	0.1	%
One-to-four family residential, including condominium and cooperative apartment		—		—		404		—		—		404	0.0
Multifamily residential and residential mixed-use		—		61,832		—		—		—		61,832	1.5
Non-owner-occupied commercial real estate		—		31,157		—		—		—		31,157	0.9
ADC		—		—		—		—		12,253		12,253	7.0
Total	$	1,889	$	94,196	$	708	$	29	$	12,253	$	109,075	1.0	%

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


	For the Three Months Ended March 31, 2025
	Weighted Average		Weighted Average
	Interest Rate		Months of	Weighted Average
(Dollars in thousands)	Reductions		Term Extensions	Payment Delay
Business loans	1.25	%	103	$	10
Multifamily residential and residential mixed-use	—		—		407
Non-owner-occupied commercial real estate	3.75		—		1,131


	For the Three Months Ended March 31, 2024
	Weighted Average		Weighted Average
	Interest Rate		Months of	Weighted Average
(Dollars in thousands)	Reductions		Term Extensions	Payment Delay
Business loans	5.0	%	12	$	146
One-to-four family residential, including condominium and cooperative apartment	—		11		13
Multifamily residential and residential mixed-use	—		—		306
Non-owner-occupied commercial real estate	—		—		561
ADC	2.0		5		411

The Bank monitors the performance of loans modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following tables describe the performance of loans that have been modified during the past 12 months.

March 31, 2025

30-59

60-89

90+

(In thousands)

Current

Days Past Due

Non-Accrual

Total

Business loans

18,899

—

245

19,144

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

—

892

Multifamily residential and residential mixed-use

—

27,603

—

27,603

Non-owner-occupied commercial real estate

27,752

—

15,205

42,957

Total

46,651

27,603

—

16,342

90,596


	March 31, 2024
			30-59		60-89		90+
(In thousands)	Current		Days Past Due		Days Past Due		Days Past Due		Non-Accrual		Total
Business loans	$	13,694	$	—	$	240	$	—	$	2,140	$	16,074
One-to-four family residential, including condominium and cooperative apartment		3,262		—		—		—		91		3,353
Multifamily residential and residential mixed-use		27,631		12,651		21,550		—		—		61,832
Non-owner-occupied commercial real estate		55,864		—		—		—		—		55,864
ADC		—		—		—		—		12,253		12,253
Total	$	100,451	$	12,651	$	21,790	$	—	$	14,484	$	149,376

As of March 31, 2025, there was one $15.2 million non-owner-occupied commercial loan that was modified to a borrower experiencing financial difficulty during the prior 12 months that subsequently defaulted. As of March 31, 2024, there were no loans modified to borrowers experiencing financial difficulty during the prior 12 months that subsequently defaulted. For the purposes of this disclosure, a payment default is defined as 90 or more days past due. 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:


	March 31, 2025
(In thousands)	2025		2024		2023		2022		2021		2020 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	46,415	$	397,937	$	226,203	$	311,457	$	195,007	$	498,755	$	927,718	$	58,722	$	2,662,214
Special mention		—		128		495		34,133		3,993		17,559		5,252		9,222		70,782
Substandard		—		—		378		3,952		2,482		15,109		3,749		28,923		54,593
Doubtful		—		—		—		—		—		612		—		—		612
Total business loans		46,415		398,065		227,076		349,542		201,482		532,035		936,719		96,867		2,788,201
YTD Gross Charge-Offs		—		—		—		—		—		—		47		129		176

One-to-four family residential, and condominium/cooperative apartment:
Pass		28,063		133,899		157,062		200,806		97,158		300,119		24,904		9,054		951,065
Special mention		—		—		—		—		—		707		158		—		865
Substandard		—		—		—		—		—		8,228		—		911		9,139
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		28,063		133,899		157,062		200,806		97,158		309,054		25,062		9,965		961,069
YTD Gross Charge-Offs		—		—		—		—		—		44		—		—		44

Multifamily residential and residential mixed-use:
Pass		—		21,661		251,744		1,278,949		556,818		1,487,533		4,848		4,251		3,605,804
Special mention		—		—		—		1,202		12,349		84,708		—		—		98,259
Substandard		—		—		—		—		—		75,860		—		—		75,860
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		—		21,661		251,744		1,280,151		569,167		1,648,101		4,848		4,251		3,779,923
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Non-owner-occupied commercial real estate
Pass		6,368		55,167		206,196		718,908		593,440		1,397,639		12,103		16,994		3,006,815
Special mention		—		—		—		—		653		99,431		—		—		100,084
Substandard		—		—		—		—		16,471		67,528		—		—		83,999
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		6,368		55,167		206,196		718,908		610,564		1,564,598		12,103		16,994		3,190,898
YTD Gross Charge-Offs		—		—		—		—		—		5,259		1,823		—		7,082

ADC:
Pass		2,680		25,152		34,659		26,769		4,809		2,332		25,274		3,112		124,787
Special mention		—				—		—		14,865		—		—		—		14,865
Substandard		—		—		—		—		—		—		—		657		657
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		2,680		25,152		34,659		26,769		19,674		2,332		25,274		3,769		140,309
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Total:
Pass		83,526		633,816		875,864		2,536,889		1,447,232		3,686,378		994,847		92,133		10,350,685
Special mention		—		128		495		35,335		31,860		202,405		5,410		9,222		284,855
Substandard		—		—		378		3,952		18,953		166,725		3,749		30,491		224,248
Doubtful		—		—		—		—		—		612		—		—		612
Total Loans	$	83,526	$	633,944	$	876,737	$	2,576,176	$	1,498,045	$	4,056,120	$	1,004,006	$	131,846	$	10,860,400
YTD Gross Charge-Offs	$	—	$	—	$	—	$	—	$	—	$	5,303	$	1,870	$	129	$	7,302


	December 31, 2024
(In thousands)	2024		2023		2022		2021		2020		2019 and Prior		Revolving		Revolving-Term		Total
Business loans
Pass	$	400,607	$	232,017	$	327,174	$	201,799	$	164,834	$	348,388	$	828,287	$	67,238	$	2,570,344
Special mention		135		754		36,740		4,220		4,333		17,226		26,292		14,497		104,197
Substandard		—		398		1,985		2,482		3,944		11,298		—		30,467		50,574
Doubtful		—		—		—		—		—		611		—		—		611
Total business loans		400,742		233,169		365,899		208,501		173,111		377,523		854,579		112,202		2,725,726
YTD Gross Charge-Offs		—		—		158		166		267		586		89		6,785		8,051

One-to-four family residential, and condominium/cooperative apartment:
Pass		134,804		159,300		202,706		98,491		63,093		247,952		26,724		8,364		941,434
Special mention		—		—		—		—		—		711		159		—		870
Substandard		—		—		—		—		984		7,326		—		914		9,224
Doubtful		—		—		—		—		—		—		—		—		—
Total one-to-four family residential, and condominium/cooperative apartment		134,804		159,300		202,706		98,491		64,077		255,989		26,883		9,278		951,528
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Multifamily residential and residential mixed-use:
Pass		21,810		252,975		1,285,619		560,039		286,653		1,239,261		4,285		4,267		3,654,909
Special mention		—		—		1,202		12,369		14,172		73,778		—		—		101,521
Substandard		—		—		—		—		—		63,853		—		—		63,853
Doubtful		—		—		—		—		—		—		—		—		—
Total multifamily residential and residential mixed-use		21,810		252,975		1,286,821		572,408		300,825		1,376,892		4,285		4,267		3,820,283
YTD Gross Charge-Offs		400		—		—		—		1,292		2,985		—		—		4,677

Non-owner-occupied commercial real estate
Pass		57,280		215,279		724,041		601,508		408,361		1,020,137		11,937		8,966		3,047,509
Special mention		—		—		—		658		75,802		29,564		—		—		106,024
Substandard		—		—		—		16,471		34,236		26,295		—		—		77,002
Doubtful		—		—		—		—		—		—		—		—		—
Total non-owner-occupied commercial real estate		57,280		215,279		724,041		618,637		518,399		1,075,996		11,937		8,966		3,230,535
YTD Gross Charge-Offs		—		—		—		2,797		4,033		—		—		96		6,926

ADC:
Pass		16,154		34,169		25,950		4,810		—		2,468		24,868		12,122		120,541
Special mention		—		—		—		14,974		—		—		—		—		14,974
Substandard		—		—		—		—		—		—		—		657		657
Doubtful		—		—		—		—		—		—		—		—		—
Total ADC		16,154		34,169		25,950		19,784		—		2,468		24,868		12,779		136,172
YTD Gross Charge-Offs		—		—		—		—		—		—		—		—		—

Total:
Pass		630,655		893,740		2,565,490		1,466,647		922,941		2,858,206		896,101		100,957		10,334,737
Special mention		135		754		37,942		32,221		94,307		121,279		26,451		14,497		327,586
Substandard		—		398		1,985		18,953		39,164		108,772		—		32,038		201,310
Doubtful		—		—		—		—		—		611		—		—		611
Total Loans	$	630,790	$	894,892	$	2,605,417	$	1,517,821	$	1,056,412	$	3,088,868	$	922,552	$	147,492	$	10,864,244
YTD Gross Charge-Offs	$	400	$	—	$	158	$	2,963	$	5,592	$	3,571	$	89	$	6,881	$	19,654

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)	March 31, 2025		December 31, 2024
Performing	$	6,402	$	5,059
Non-accrual		—		25
Total	$	6,402	$	5,084