v3.26.1
Loans Receivable and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans Receivable and Allowance for Credit Losses Loans Receivable and Allowance for Credit Losses
Loans held for investment as of March 31, 2026 and December 31, 2025 are summarized as follows (in thousands):
March 31, 2026December 31, 2025
Mortgage loans:
Commercial$7,423,652 7,398,792 
Multi-family3,724,236 3,667,337 
Construction640,929 662,112 
Residential1,960,861 1,974,324 
Total mortgage loans13,749,678 13,702,565 
Commercial loans5,301,113 5,200,517 
Consumer loans608,016 612,431 
Total gross loans19,658,807 19,515,513 
Premiums on purchased loans1,700 1,524 
Net deferred fees(12,805)(12,976)
Total loans held for investment$19,647,702 19,504,061 
Accrued interest on loans totaled $83.8 million and $82.2 million as of March 31, 2026 and December 31, 2025, respectively, and is presented within total accrued interest receivable on the Consolidated Statements of Financial Condition.
The following tables summarize the aging of loans held for investment by portfolio segment and class of loans (in thousands):
March 31, 2026
30-59 Days60-89 DaysNon-accrualRecorded
Investment
> 90 days
accruing		Total Past
Due 		CurrentTotal Loans
Receivable		Non-accrual loans with no related allowance
Mortgage loans:
Commercial$2,665 — 21,977 — 24,642 7,399,010 7,423,652 21,977 
Multi-family694 — 275 — 969 3,723,267 3,724,236 275 
Construction6,639 — 3,278 — 9,917 631,012 640,929 3,278 
Residential5,123 6,893 8,669 — 20,685 1,940,176 1,960,861 8,669 
Total mortgage loans15,121 6,893 34,199 — 56,213 13,693,465 13,749,678 34,199 
Commercial loans10,359 2,520 107,398 — 120,277 5,180,836 5,301,113 105,222 
Consumer loans3,588 634 1,327 — 5,549 602,467 608,016 1,327 
Total gross loans$29,068 10,047 142,924 — 182,039 19,476,768 19,658,807 140,748 
December 31, 2025
30-59 Days60-89 DaysNon-accrualRecorded
Investment
> 90 days
accruing		Total Past
Due 		CurrentTotal Loans ReceivableNon-accrual loans with no related allowance
Mortgage loans:
Commercial$15,652 — 26,856 — 42,508 7,356,284 7,398,792 22,506 
Multi-family— 932 2,268 — 3,200 3,664,137 3,667,337 2,268 
Construction— — 5,159 — 5,159 656,953 662,112 5,159 
Residential8,344 4,177 9,062 — 21,583 1,952,741 1,974,324 9,062 
Total mortgage loans23,996 5,109 43,345 — 72,450 13,630,115 13,702,565 38,995 
Commercial loans1,303 633 33,219 — 35,155 5,165,362 5,200,517 26,655 
Consumer loans2,209 781 1,856 — 4,846 607,585 612,431 1,856 
Total gross loans$27,508 6,523 78,420 — 112,451 19,403,062 19,515,513 67,506 
The increase in non-performing loans as of March 31, 2026, compared to the trailing quarter, was primarily driven by the addition of four commercial loans on senior housing properties totaling $82.1 million that are the subject of related bankruptcy filings, partially offset by payoffs. These loans have no prior charge-off history and required no specific reserve allocations in the first quarter of 2026 due to strong collateral values. Appraisals received in 2026 reflect loan-to-value ratios for the collateral properties of 32.9%, 51.7%, 61.3%, and 81.9%.
Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The principal amounts of these non-accrual loans were $142.9 million and $78.4 million as of March 31, 2026 and December 31, 2025, respectively. Included in non-accrual loans were $111.4 million and $49.5 million of loans which were less than 90 days past due as of March 31, 2026 and December 31, 2025, respectively. There were no loans 90 days or greater past due and still accruing interest as of March 31, 2026 and December 31, 2025.
The activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2026 and 2025 was as follows (in thousands):
Three months ended March 31,Mortgage loansCommercial loansConsumer loansTotal
2026
Balance at beginning of period$128,601 51,127 5,039 184,767 
Provision (benefit) charge to operations(1,252)(3,472)74 (4,650)
Recoveries of loans previously charged-off20 237 249 506 
Loans charged-off(435)(2,854)(337)(3,626)
Balance at end of period$126,934 45,038 5,025 176,997 
2025
Balance at beginning of period$144,587 43,642 5,203 193,432 
Provision (benefit) charge to operations(3,820)4,175 (30)325 
Recoveries of loans previously charged-off806 279 191 1,276 
Loans charged-off(890)(2,195)(178)(3,263)
Balance at end of period$140,683 45,901 5,186 191,770 
For the three months ended March 31, 2026, the Company recorded a $4.7 million recapture of provisions for credit losses on loans, compared to a $325,000 provision on loans for the same period in 2025. The recapture of the provision for credit losses on loans was primarily due to a reduction in specific reserves on individually evaluated loans. For the three months ended March 31, 2026, net charge-offs totaled $3.1 million.
The following table summarizes the Company's gross charge-offs recorded during the three months ended March 31, 2026 by year of origination (in thousands):
20262025202420232022Prior to 2022Total Loans
Mortgage loans:
Commercial$— — — — — 234 234 
Multi-family— 201 — — — — 201 
Total mortgage loans— 201 — — — 234 435 
Commercial loans— 1,323 — 167 1,336 28 2,854 
Consumer loans (1)
10 — — — 12 108 130 
Total gross loans$10 1,524 — 167 1,348 370 3,419 
(1) During the three months ended March 31, 2026, charge-offs on consumer overdraft accounts totaled $207,000, which are not included in the table above.
The following table summarizes the Company's gross charge-offs recorded during the three months ended March 31, 2025 by year of origination (in thousands):
20252024202320222021Prior to 2021Total Loans
Mortgage loans:
Commercial$— — — 358 — 532 890 
Total mortgage loans— — — 358 — 532 890 
Commercial loans— — — 2,130 65 — 2,195 
Consumer loans (1)
12 10 12 3 — 26 63 
Total gross loans$12 10 12 2,491 65 558 3,148 
(1) During the three months ended March 31, 2025, charge-offs on consumer overdraft accounts totaled $115,000, which are not included in the table above.
The Company defines a loan individually evaluated for impairment as a non-homogeneous loan greater than $1.0 million, for which, based on current information, it is not expected to collect all amounts due under the contractual terms of the loan agreement. As of March 31, 2026, there were 27 loans totaling $128.4 million, compared to 28 loans totaling $63.3 million as of December 31, 2025, that were individually evaluated for impairment.
A financial asset is considered collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of loans deemed collateral-dependent, the Company estimates expected credit losses based on the collateral’s fair value less any selling costs. A specific allocation of the allowance for credit losses is established for each collateral-dependent loan with a carrying balance greater than the collateral’s fair value, less estimated selling costs. In most cases, the Company records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less estimated selling costs. The Company uses third-party appraisals to determine the fair value of the underlying collateral in its analysis of collateral-dependent loans. A third-party appraisal is generally ordered as soon as a loan is designated as a collateral-dependent loan and updated annually, or more frequently if required. At each fiscal quarter end, if a loan is designated as collateral-dependent and the third-party appraisal has not yet been received, an evaluation of all available collateral is made using the best information available at the time, including rent rolls, borrower financial statements and tax returns, prior appraisals, management’s knowledge of the market and collateral, and internally prepared collateral valuations based upon market assumptions regarding vacancy and capitalization rates, each as and where applicable. Once the appraisal is received and reviewed, the specific reserves are adjusted to reflect the appraised value and evaluated for charge offs. The Company believes there have been no significant time lapses resulting from this process.
For loans deemed collateral-dependent as defined above, the fair value is based on the underlying collateral. As of March 31, 2026 and December 31, 2025, the Company had collateral-dependent loans with fair values of $124.0 million and $54.5 million secured by commercial real estate, respectively.
Loan modifications to borrowers experiencing financial difficulty may include interest rate reductions, principal or interest forgiveness, forbearance, term extensions, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. In addition, management attempts to obtain additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.
The following illustrates the most common loan modifications by loan classes offered by the Company that are required to be disclosed pursuant to the requirements of ASU 2022-02:
Loan ClassesModification types
CommercialTerm extension, interest rate modifications, payment delay, or combination thereof. These modifications extend the term of the loan, lower the payment amount, or otherwise delay payments during a defined period for the purpose of providing borrowers additional time to return to compliance with the original loan term.
Residential Mortgage/ Home EquityForbearance period greater than six months. These modifications require reduced or no payments during the forbearance period for the purpose of providing borrowers additional time to return to compliance with the original loan term, as well as term extension and rate adjustment. These modifications extend the term of the loan and provides for an adjustment to the interest rate, which reduces the monthly payment requirement.
Direct InstallmentTerm extension greater than three months. These modifications extend the term of the loan, which reduces the monthly payment requirement.
The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 (in thousands):
For the three months ended March 31, 2026
Term ExtensionInterest Rate ChangeInterest Rate Change and Term ExtensionChange in Payment Type (1)Total of loan modifications% of Total Class of Loans and Leases
Mortgage loans:
Commercial$— 3,291 — — 3,291 0.04 %
Total mortgage loans— 3,291 — — 3,291 0.02 %
Commercial loans2,394 — 474 397 3,265 0.06 %
Total gross loans$2,394 3,291 474 397 6,555 0.03 %
The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 (in thousands):
For the three months ended March 31, 2025
Term ExtensionInterest Rate ChangeInterest Rate Change and Term ExtensionTotal of loan modifications% of Total Class of Loans and Leases
Mortgage loans:
Commercial$2,984 — 1,027 4,011 0.05 %
Total mortgage loans2,984 — 1,027 4,011 0.03 %
Commercial loans1,144 — 603 1,747 0.04 %
Total gross loans$4,128 — 1,630 5,758 0.03 %
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 (in thousands):
Weighted-Average Months of Term ExtensionWeighted-Average Rate Decrease
Mortgage loans:
Commercial0(0.31)%
Total mortgage loans0(0.31)%
Commercial loans14(0.21)%
Total gross loans10(0.23)%
The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 (in thousands):
Weighted-Average Months of Term ExtensionWeighted-Average Rate Increase (Decrease)
Mortgage loans:
Commercial30.75 %
Total mortgage loans30.75 %
Commercial loans20(0.25)%
Total gross loans140.08 %
There were no loan modifications made to borrowers experiencing financial difficulty that subsequently defaulted during the three months ended March 31, 2026 and three months ended March 31, 2025, respectively.
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended March 31, 2026 (in thousands):
Current30-59 Days Past Due60-89 Days Past Due90 days or more Past DueNon- AccrualTotal
Mortgage loans:
Commercial$3,291 — — — — 3,291 
Total mortgage loans3,291 — — — — 3,291 
Commercial loans3,265 — — — — 3,265 
Total gross loans$6,555 — — — — 6,555 
The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the twelve months ended March 31, 2025 (in thousands):
Current30-59 Days Past Due60-89 Days Past Due90 days or more Past DueNon- AccrualTotal
Mortgage loans:
Commercial$9,847 — — — — 9,847 
Multi-family747 — — 89 402 1,238 
Total mortgage loans10,594 — — 89 402 11,085 
Commercial loans1,747 313 — — 1,153 3,213 
Total gross loans$12,341 313 — 89 1,555 14,298 
Loans acquired by the Company that experienced more-than-insignificant deterioration in credit quality after origination, are classified as PCD loans. As of March 31, 2026, the balance of PCD loans totaled $492.6 million with a related allowance for credit losses of $4.4 million. The balance of PCD loans as of December 31, 2025 was $509.7 million with a related allowance for credit losses of $4.6 million.
Management utilizes an internal nine-point risk rating system to summarize its loan portfolio into categories with similar risk characteristics. Loans deemed to be “acceptable quality” are rated 1 through 4, with a rating of 1 established for loans with minimal risk. Loans that are deemed to be of “questionable quality” are rated 5 (watch) or 6 (special mention). Loans with adverse classifications (substandard, doubtful or loss) are rated 7, 8 or 9, respectively. Commercial mortgage, commercial, multi-family and construction loans are rated individually, and each lending officer is responsible for risk rating loans in their portfolio. These risk ratings are then reviewed by the department manager and/or the Chief Lending Officer and by the Credit Department. The risk ratings are also reviewed periodically through loan review examinations which are currently performed by independent third-parties. Reports by the independent third-parties are presented to the Audit Committee of the Board of Directors.
The following table summarizes the Company's gross loans held for investment by year of origination and internally assigned credit grades as of March 31, 2026 and December 31, 2025 (in thousands):
Gross Loans Held for Investment by Year of Origination
as of March 31, 2026
20262025202420232022Prior to 2022Revolving LoansRevolving loans to term loansTotal Loans
Commercial Mortgage
Special mention$— 7,014 — 1,541 31,738 92,019 3 — 132,315 
Substandard — 5,773 — 51 5,351 65,523 748 — 77,446 
Doubtful— — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— 12,787 — 1,592 37,089 157,542 751 — 209,761 
Pass/Watch179,870 903,470 448,959 849,717 1,323,876 3,333,670 165,503 8,826 7,213,891 
Total Commercial Mortgage$179,870 916,257 448,959 851,309 1,360,965 3,491,212 166,254 8,826 7,423,652 
Multi-family
Special mention$— — — 2,138 2,965 — — — 5,103 
Substandard— — — — — 39,447 — — 39,447 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— — — 2,138 2,965 39,447 — — 44,550 
Pass/Watch133,915 730,596 326,059 534,926 572,656 1,365,660 14,372 1,502 3,679,686 
Total Multi-Family$133,915 730,596 326,059 537,064 575,621 1,405,107 14,372 1,502 3,724,236 
Construction
Special mention$15,496 — — — 6,639 1,089 — — 23,224 
Substandard— — — — — 3,296 — — 3,296 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified15,496 — — — 6,639 4,385 — — 26,520 
Pass/Watch24,040 188,197 205,066 106,339 77,063 13,704 — — 614,409 
Total Construction$39,536 188,197 205,066 106,339 83,702 18,089 — — 640,929 
Residential (1)
Special mention$— — 645 835 1,267 3,799 — — 6,546 
Substandard— — 1,086 3,350 860 2,476 — — 7,772 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— — 1,731 4,185 2,127 6,275 — — 14,318 
Pass/Watch18,849 153,988 121,200 296,746 359,584 996,176 — — 1,946,543 
Total Residential$18,849 153,988 122,931 300,931 361,711 1,002,451 — — 1,960,861 
Total Mortgage
Special mention$15,496 7,014 645 4,514 42,609 96,907 3 — 167,188 
Substandard— 5,773 1,086 3,401 6,211 110,742 748 — 127,961 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Gross Loans Held for Investment by Year of Origination
as of March 31, 2026
20262025202420232022Prior to 2022Revolving LoansRevolving loans to term loansTotal Loans
Total criticized and classified15,496 12,787 1,731 7,915 48,820 207,649 751 — 295,149 
Pass/Watch356,674 1,976,251 1,101,284 1,787,728 2,333,179 5,709,210 179,875 10,328 13,454,529 
Total Mortgage$372,170 1,989,038 1,103,015 1,795,643 2,381,999 5,916,859 180,626 10,328 13,749,678 
Commercial
Special mention$2,014 1,292 418 8,657 22,003 55,856 14,879 1,823 106,942 
Substandard8,095 3,475 6,147 30,994 114,682 70,249 28,214 1,443 263,299 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified10,109 4,767 6,565 39,651 136,685 126,105 43,093 3,266 370,241 
Pass/Watch235,975 836,045 594,147 250,870 522,240 1,180,464 1,260,924 50,207 4,930,872 
Total Commercial$246,084 840,812 600,712 290,521 658,925 1,306,569 1,304,017 53,473 5,301,113 
Consumer (1)
Special mention$— — — — 83 57 289 262 691 
Substandard— — 73 — 124 130 806 1 1,134 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— — 73 — 207 187 1,095 263 1,825 
Pass/Watch12,341 27,894 24,286 30,952 42,508 110,305 340,358 17,547 606,191 
Total Consumer$12,341 27,894 24,359 30,952 42,715 110,492 341,453 17,810 608,016 
Total Loans
Special mention$17,510 8,306 1,063 13,171 64,695 152,820 15,171 2,085 274,821 
Substandard8,095 9,248 7,306 34,395 121,017 181,121 29,768 1,444 392,394 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified25,605 17,554 8,369 47,566 185,712 333,941 44,939 3,529 667,215 
Pass/Watch604,990 2,840,190 1,719,717 2,069,550 2,897,927 6,999,979 1,781,157 78,082 18,991,592 
Total Gross Loans$630,595 2,857,744 1,728,086 2,117,116 3,083,639 7,333,920 1,826,096 81,611 19,658,807 
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.

Gross Loans Held for Investment by Year of Origination
as of December 31, 2025
20252024202320222021Prior to 2021Revolving LoansRevolving loans to term loansTotal Loans
Commercial Mortgage
Special mention$6,013 — 1,549 39,287 47,805 33,971 503 — 129,128 
Substandard9,869 — 57 471 15,875 60,111 748 — 87,131 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Gross Loans Held for Investment by Year of Origination
as of December 31, 2025
20252024202320222021Prior to 2021Revolving LoansRevolving loans to term loansTotal Loans
Total criticized and classified15,882 — 1,606 39,758 63,680 94,082 1,251 — 216,259 
Pass/Watch901,891 336,732 851,026 1,409,458 888,049 2,630,266 156,215 8,896 7,182,533 
Total Commercial Mortgage$917,773 336,732 1,449,216 951,729 2,724,348 2,184,041 157,466 8,896 7,398,792 
Multi-family
Special mention$— — — 2,946 — — — — 2,946 
Substandard— — — — — 41,593 — — 41,593 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— — — 2,946 — 41,593 — — 44,539 
Pass/Watch744,514 316,398 522,511 622,238 350,499 1,049,876 15,250 1,512 3,622,798 
Total Multi-Family$744,514 316,398 522,511 625,184 350,499 1,091,469 15,250 1,512 3,667,337 
Construction
Special mention$— — 14,497 6,639 — — — — 21,136 
Substandard— — — — 5,177 — — — 5,177 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— — 14,497 6,639 5,177 — — — 26,313 
Pass/Watch150,350 206,323 162,757 101,335 15,034 — — — 635,799 
Total Construction$150,350 206,323 177,254 107,974 20,211 — — — 662,112 
Residential (1)
Special mention$— — 946 582 264 1,845 — — 3,637 
Substandard— 1,746 2,263 1,410 1,024 1,795 — — 8,238 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— 1,746 3,209 1,992 1,288 3,640 — — 11,875 
Pass/Watch145,286 124,273 303,120 365,323 287,067 737,380 — — 1,962,449 
Total Residential$145,286 126,019 306,329 367,315 288,355 741,020 — — 1,974,324 
Total Mortgage
Special mention$6,013 — 16,992 49,454 48,069 35,816 503 — 156,847 
Substandard9,869 1,746 2,320 1,881 22,076 103,499 748 — 142,139 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified15,882 1,746 19,312 51,335 70,145 139,315 1,251 — 298,986 
Pass/Watch1,942,041 983,726 1,839,414 2,498,354 1,540,649 4,417,522 171,465 10,408 13,403,579 
Total Mortgage$1,957,923 985,472 1,858,726 2,549,689 1,610,794 4,556,837 172,716 10,408 13,702,565 
Gross Loans Held for Investment by Year of Origination
as of December 31, 2025
20252024202320222021Prior to 2021Revolving LoansRevolving loans to term loansTotal Loans
Commercial
Special mention$1,005 423 17,930 63,499 26,067 34,829 20,217 1,916 165,886 
Substandard2,381 10,661 10,205 57,554 29,348 35,213 36,631 1,487 183,480 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified3,386 11,084 28,135 121,053 55,415 70,042 56,848 3,403 349,366 
Pass/Watch934,987 628,374 305,811 526,728 304,459 971,734 1,121,228 57,830 4,851,151 
Total Commercial$938,373 639,458 333,946 647,781 359,874 1,041,776 1,178,076 61,233 5,200,517 
Consumer (1)
Special mention$— — 20 — — 7 806 23 856 
Substandard— 125 81 219 — 310 828 46 1,609 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified— 125 101 219 — 317 1,634 69 2,465 
Pass/Watch31,702 26,282 32,156 45,444 31,271 87,759 338,858 16,494 609,966 
Total Consumer$31,702 26,407 32,257 45,663 31,271 88,076 340,492 16,563 612,431 
Total Loans
Special mention$7,018 423 34,942 112,953 74,136 70,652 21,526 1,939 323,589 
Substandard12,250 12,532 12,606 59,654 51,424 139,022 38,207 1,533 327,228 
Doubtful— — — — — — — — — 
Loss— — — — — — — — — 
Total criticized and classified19,268 12,955 47,548 172,607 125,560 209,674 59,733 3,472 650,817 
Pass/Watch2,908,730 1,638,382 2,177,381 3,070,526 1,876,379 5,477,015 1,631,551 84,732 18,864,696 
Total Gross Loans $2,927,998 1,651,337 2,224,929 3,243,133 2,001,939 5,686,689 1,691,284 88,204 19,515,513 
(1) For residential and consumer loans, the Company assigns internal credit grades based on the delinquency status of each loan.