v3.26.1
Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans Loans
 
The following table summarizes the Company’s loans held-for-investment (in thousands):

 March 31,December 31,
 20262025
Real estate loans: 
Multifamily$2,314,049 $2,361,365 
Commercial mortgage901,588 911,390 
One-to-four family residential mortgage164,199 165,100 
Home equity and lines of credit195,696 198,557 
Construction and land50,163 44,522 
Total real estate loans3,625,695 3,680,934 
Commercial and industrial loans 172,988 166,167 
Other loans1,030 1,409 
Total commercial and industrial and other loans174,018 167,576 
Loans held-for-investment (excluding purchased credit-deteriorated (“PCD”) loans)
3,799,713 3,848,510 
PCD loans8,244 8,263 
Total loans held-for-investment3,807,957 3,856,773 
Allowance for credit losses(37,034)(38,144)
Net loans held-for-investment$3,770,923 $3,818,629 

In addition to originating loans, the Company may acquire loans through portfolio purchases or acquisitions of other companies. Purchased loans that have evidence of more than insignificant credit deterioration since origination are deemed PCD loans. For PCD loans, each loan pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. PCD loans totaled $8.2 million at March 31, 2026, as compared to $8.3 million at December 31, 2025. The majority of the PCD loan balances were acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. At March 31, 2026, PCD loans consisted of approximately 10% of one-to-four family residential loans, 21% of commercial real estate loans, 56% of commercial and industrial loans, and of 13% home equity loans. At December 31, 2025, PCD loans consisted of approximately 10% of one-to-four family residential loans, 21% of commercial real estate loans, 58% of commercial and industrial loans, and 11% of home equity loans.
Credit Quality Indicators

The Company monitors the credit quality of its loan portfolio on a regular basis. Credit quality is monitored by reviewing certain credit quality indicators. Management has determined that loan-to-value (“LTV”) ratios (at period end) and internally assigned credit risk ratings by loan type are the key credit quality indicators that best measure the credit quality of the Company’s loan receivables. LTV ratios used by management in monitoring credit quality are based on current period loan balances and original appraised values at the time of origination (unless a current appraisal has been obtained as a result of the loan being deemed impaired).

The Company maintains a credit risk rating system as part of the risk assessment of its loan portfolio. The Company’s lending officers are required to assign a credit risk rating to each loan in their portfolio at origination. This risk rating is reviewed periodically and adjusted if necessary. Quarterly, management presents monitored assets to the Loan Committee. In addition, the Company engages a third-party independent loan reviewer that performs semi-annual reviews of a sample of loans, validating the credit risk ratings assigned to such loans. The credit risk ratings play an important role in the establishment of the provision for credit losses on loans and the allowance for credit losses for loans held-for-investment. After determining the loss factor for each portfolio segment held-for-investment, the collectively evaluated for impairment balance of the held-for-investment portfolio is multiplied by the collectively evaluated for impairment loss factor for the respective portfolio segment in order to determine the allowance for loans collectively evaluated for impairment.

When assigning a credit risk rating to a loan, management utilizes the Bank’s internal nine-point credit risk rating system.

1.Strong
2.Good
3.Acceptable
4.Adequate
5.Watch
6.Special Mention
7.Substandard
8.Doubtful
9.Loss

Loans rated 1 to 5 are considered pass ratings. An asset is classified substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Assets which do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses, are required to be designated special mention.
The following table presents the Company’s loans held-for-investment and current period gross charge-offs, excluding PCD loans, by loan class, credit risk ratings and year of origination, at March 31, 2026 (in thousands):

 March 31, 2026
 20262025202420232022PriorRevolving LoansTotal
Real Estate:   
Multifamily   
Pass$7,160 $102,313 $4,801 $83,787 $556,748 $1,540,138 $240 $2,295,187 
Special mention— — — — 1,097 7,472 — 8,569 
Substandard— — — — — 10,293 — 10,293 
Total multifamily7,160 102,313 4,801 83,787 557,845 1,557,903 240 2,314,049 
Commercial mortgage   
Pass7,744 92,709 61,020 84,965 181,635 451,027 2,115 881,215 
Special mention— — — — — 3,692 — 3,692 
Substandard— — — — 6,477 9,921 283 16,681 
Total commercial mortgage7,744 92,709 61,020 84,965 188,112 464,640 2,398 901,588 
One-to-four family residential   
Pass4,303 19,772 14,691 12,863 20,339 90,019 897 162,884 
Substandard— — — — — 1,315 — 1,315 
Total one-to-four family residential4,303 19,772 14,691 12,863 20,339 91,334 897 164,199 
Home equity and lines of credit
Pass1,738 13,818 11,728 14,901 26,395 28,660 95,620 192,860 
Special mention— — 98 — 63 — — 161 
Substandard— 103 — 542 1,408 622 — 2,675 
Total home equity and lines of credit1,738 13,921 11,826 15,443 27,866 29,282 95,620 195,696 
Current period gross charge-offs— — — — — 5 — 5 
Construction and land
Pass1,535 24,797 250 9,380 8,867 5,334 — 50,163 
Total construction and land1,535 24,797 250 9,380 8,867 5,334 — 50,163 
Total real estate loans22,480 253,512 92,588 206,438 803,029 2,148,493 99,155 3,625,695 
Commercial and industrial
Pass5,963 9,427 12,648 11,822 13,565 14,332 92,775 160,532 
Special mention— — 376 — 402 — 2,382 3,160 
Substandard— — 2,507 3,652 340 1,615 1,182 9,296 
Total commercial and industrial5,963 9,427 15,531 15,474 14,307 15,947 96,339 172,988 
Current-period gross charge-offs— — 75 — 940 479 — 1,494 
Other
Pass991 — — — — 14 23 1,028 
Substandard— — — — — 2 — 2 
Total other991 — — — — 16 23 1,030 
Total loans held-for-investment$29,434 $262,939 $108,119 $221,912 $817,336 $2,164,456 $195,517 $3,799,713 
Total current-period gross charge-offs$— $— $75 $— $940 $484 $— $1,499 
The following table presents the Company’s loans held-for-investment and current period gross charge-offs, excluding PCD loans, by loan class, credit risk ratings and year of origination, at December 31, 2025 (in thousands):

 
December 31, 2025
 20252024202320222021PriorRevolving LoansTotal
Real Estate:   
Multifamily   
Pass$102,597 $4,818 $84,164 $561,040 $600,369 $990,193 $284 $2,343,465 
Special mention— — — — 1,166 6,325 — 7,491 
Substandard— — — — — 10,409 — 10,409 
Total multifamily102,597 4,818 84,164 561,040 601,535 1,006,927 284 2,361,365 
Commercial mortgage   
Pass92,786 61,761 85,492 183,083 135,579 326,204 2,346 887,251 
Special mention— — — — — 8,064 — 8,064 
Substandard— — — 6,525 — 9,265 285 16,075 
Total commercial mortgage92,786 61,761 85,492 189,608 135,579 343,533 2,631 911,390 
One-to-four family residential   
Pass20,730 16,026 13,439 20,964 11,407 80,563 640 163,769 
Substandard— — — — — 1,331 — 1,331 
Total one-to-four family residential20,730 16,026 13,439 20,964 11,407 81,894 640 165,100 
Home equity and lines of credit
Pass14,828 12,458 15,300 27,309 10,564 19,831 95,525 195,815 
Special mention— — — 64 — — — 64 
Substandard104 — 438 1,419 543 174 — 2,678 
Total home equity and lines of credit14,932 12,458 15,738 28,792 11,107 20,005 95,525 198,557 
Construction and land
Pass20,120 1,375 9,409 8,051 — 5,567 — 44,522 
Total construction and land20,120 1,375 9,409 8,051 — 5,567 — 44,522 
Total real estate loans251,165 96,438 208,242 808,455 759,628 1,457,926 99,080 3,680,934 
Commercial and industrial
Pass9,971 12,546 12,222 15,355 9,791 5,887 87,829 153,601 
Special mention— — 555 — — — 2,384 2,939 
Substandard— 2,520 3,152 882 1,447 369 1,257 9,627 
Total commercial and industrial9,971 15,066 15,929 16,237 11,238 6,256 91,470 166,167 
Current-period gross charge-offs— 67 855 2,371 1,112 935 — 5,340 
Other
Pass1,365 — — — — 15 26 1,406 
Substandard— — — — — 3 — 3 
Total other1,365 — — — — 18 26 1,409 
Total loans held-for-investment$262,501 $111,504 $224,171 $824,692 $770,866 $1,464,200 $190,576 $3,848,510 
Total current-period gross charge-offs (1)
$— $67 $855 $2,371 $1,112 $935 $— $5,340 
(1) Excludes $343,000 of current period gross charge-offs of PCD loans.
Past Due and Non-Accrual Loans

Included in loans receivable held-for-investment are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers (excluding PCD loans). The recorded investment of these non-accrual loans was $21.0 million and $15.2 million at March 31, 2026, and December 31, 2025, respectively. Generally, originated loans are placed on non-accrual status when they become 90 days or more delinquent, or sooner if considered appropriate by management, and remain on non-accrual status until they are brought current, have six consecutive months of performance under the revised loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on non-accruing status.

When an individual loan no longer demonstrates the similar credit risk characteristics as other loans within its current segment, the Company evaluates each for expected credit losses on an individual basis. All non-accrual loans $500,000 and above and all loans designated as Troubled Debt Restructurings (“TDRs”) prior to the adoption of Accounting Standards Update (“ASU”) No. 2022-02, “Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”) on January 1, 2023, are individually evaluated. See “Loan Modifications Made to Borrowers Experiencing Financial Difficulty” section below for more information. The non-accrual loans individually evaluated for impairment were $16.4 million and $8.8 million at March 31, 2026, and December 31, 2025, respectively. Loans on non-accrual status with principal balances less than $500,000, and therefore not meeting the Company's definition of an impaired loan, amounted to $4.6 million and $6.4 million at March 31, 2026, and December 31, 2025, respectively. Loans past due 90 days or more and still accruing interest were $455,000 and $925,000 at March 31, 2026, and December 31, 2025, respectively, and consisted of loans that are well-secured and in the process of collection.

The following tables set forth the detail, and delinquency status, of non-performing loans (non-accrual loans and loans past due 90 days or more and still accruing), net of deferred fees and costs, at March 31, 2026, and December 31, 2025, excluding PCD loans and non-accrual loans held-for sale (in thousands):
 March 31, 2026
 Total Non-Performing Loans
 Non-Accruing Loans  
 Current30-89 Days Past Due90 Days or More Past DueTotal90 Days or More Past Due and AccruingTotal Non-Performing Loans
Loans held-for-investment:      
Real estate loans:      
Multifamily      
Substandard$1,671 $145 $1,414 $3,230 $— $3,230 
Total multifamily1,671 145 1,414 3,230 — 3,230 
Commercial mortgage
Substandard59 126 11,300 11,485 51 11,536 
Total commercial mortgage59 126 11,300 11,485 51 11,536 
One-to-four family residential      
Substandard— — — — 127 127 
Total one-to-four family residential— — — — 127 127 
Home equity and lines of credit      
Substandard308 148 1,296 1,752 119 1,871 
Total home equity and lines of credit308 148 1,296 1,752 119 1,871 
Total real estate 2,038 419 14,010 16,467 297 16,764 
Commercial and industrial loans      
Pass— — — — 128 128 
Substandard2,618 202 1,674 4,494 30 4,524 
Total commercial and industrial loans2,618 202 1,674 4,494 158 4,652 
Total non-performing loans $4,656 $621 $15,684 $20,961 $455 $21,416 
 December 31, 2025
 Total Non-Performing Loans
 Non-Accruing Loans  
 Current30-89 Days Past Due90 Days or More Past DueTotal90 Days or More Past Due and AccruingTotal Non-Performing Loans
Loans held-for-investment:      
Real estate loans:      
Multifamily      
Substandard$2,266 $— $1,422 $3,688 $— $3,688 
Total multifamily2,266 — 1,422 3,688 — 3,688 
Commercial mortgage
Substandard61 188 4,763 5,012 51 5,063 
Total commercial mortgage61 188 4,763 5,012 51 5,063 
One-to-four family residential      
Substandard— — — — 863 863 
Total one-to-four family residential— — — — 863 863 
Home equity and lines of credit
Pass— — — — 7 7 
Substandard— 100 1,678 1,778 — 1,778 
Total home equity and lines of credit— 100 1,678 1,778 7 1,785 
Total real estate2,327 288 7,863 10,478 921 11,399 
Commercial and industrial loans      
Substandard2,746 122 1,864 4,732 — 4,732 
Total commercial and industrial loans2,746 122 1,864 4,732 — 4,732 
Other loans
Substandard— — — — 4 4 
Total other— — — — 4 4 
Total non-performing loans$5,073 $410 $9,727 $15,210 $925 $16,135 
The following tables set forth the detail and delinquency status of loans held-for-investment, excluding PCD loans, net of deferred fees and costs, at March 31, 2026, and December 31, 2025 (in thousands):

 March 31, 2026
 Past Due Loans 
 30-89 Days Past Due90 Days or More Past Due90 Days or More Past Due and AccruingTotal Past DueCurrentTotal Loans Receivable, net
Loans held-for-investment:  
Real estate loans:  
Multifamily
Pass$— $— $— $— $2,295,187 $2,295,187 
Special mention— — — — 8,569 8,569 
Substandard145 1,414 — 1,559 8,734 10,293 
Total multifamily145 1,414 — 1,559 2,312,490 2,314,049 
Commercial mortgage  
Pass12 — — 12 881,203 881,215 
Special mention— — — — 3,692 3,692 
Substandard126 11,300 51 11,477 5,204 16,681 
Total commercial mortgage138 11,300 51 11,489 890,099 901,588 
One-to-four family residential  
Pass1,040 — — 1,040 161,844 162,884 
Substandard— — 127 127 1,188 1,315 
Total one-to-four family residential1,040 — 127 1,167 163,032 164,199 
Home equity and lines of credit
Pass452 — — 452 192,408 192,860 
Special mention— — — — 161 161 
Substandard418 1,296 119 1,833 842 2,675 
Total home equity and lines of credit870 1,296 119 2,285 193,411 195,696 
Construction and land  
Pass— — — — 50,163 50,163 
Total construction and land— — — — 50,163 50,163 
Total real estate2,193 14,010 297 16,500 3,609,195 3,625,695 
Commercial and industrial   
Pass3,184 — 128 3,312 157,220 160,532 
Special mention2,382 — — 2,382 778 3,160 
Substandard629 1,674 30 2,333 6,963 9,296 
Total commercial and industrial 6,195 1,674 158 8,027 164,961 172,988 
Other loans  
Pass— — — — 1,028 1,028 
Substandard— — — — 2 2 
Total other loans— — — — 1,030 1,030 
Total loans held-for-investment$8,388 $15,684 $455 $24,527 $3,775,186 $3,799,713 
 December 31, 2025
 Past Due Loans 
 30-89 Days Past Due90 Days or More Past Due90 Days or More Past Due and AccruingTotal Past DueCurrentTotal Loans Receivable, net
Loans held-for-investment:
Real estate loans:
Multifamily
Pass$471 $— $— $471 $2,342,994 $2,343,465 
Special mention— — — — 7,491 7,491 
Substandard— 1,422 — 1,422 8,987 10,409 
Total multifamily471 1,422 — 1,893 2,359,472 2,361,365 
Commercial mortgage
Pass— — — — 887,251 887,251 
Special mention— — — — 8,064 8,064 
Substandard7,172 4,763 51 11,986 4,089 16,075 
Total commercial mortgage7,172 4,763 51 11,986 899,404 911,390 
One-to-four family residential
Pass1,076 — — 1,076 162,693 163,769 
Substandard48 — 863 911 420 1,331 
Total one-to-four family residential1,124 — 863 1,987 163,113 165,100 
Home equity and lines of credit
Pass757 — 7 764 195,051 195,815 
Special mention— — — — 64 64 
Substandard452 1,678 — 2,130 548 2,678 
Total home equity and lines of credit1,209 1,678 7 2,894 195,663 198,557 
Construction and land
Pass— — — — 44,522 44,522 
Total construction and land— — — — 44,522 44,522 
Total real estate9,976 7,863 921 18,760 3,662,174 3,680,934 
Commercial and industrial
Pass459 — — 459 153,142 153,601 
Special mention898 — — 898 2,041 2,939 
Substandard501 1,864 — 2,365 7,262 9,627 
Total commercial and industrial1,858 1,864 — 3,722 162,445 166,167 
Other loans
Pass— — 4 4 1,402 1,406 
Substandard— — — — 3 3 
Total other loans— — 4 4 1,405 1,409 
Total loans held-for-investment$11,834 $9,727 $925 $22,486 $3,826,024 $3,848,510 
The following tables summarize information on non-accrual loans, excluding PCD loans, as of March 31, 2026, and December 31, 2025 (in thousands):
March 31, 2026
Recorded InvestmentUnpaid Principal BalanceWith No Related Allowance
Real estate loans:
Multifamily$3,230 $3,643 $2,777 
Commercial mortgage11,485 11,918 7,732 
Home equity and lines of credit1,752 2,002 — 
Commercial and industrial4,494 16,754 310 
Total non-accrual loans$20,961 $34,317 $10,819 

December 31, 2025
Recorded InvestmentUnpaid Principal BalanceWith No Related Allowance
Real estate loans:
Multifamily$3,688 $4,101 $1,681 
Commercial mortgage5,012 5,445 1,256 
Home equity and lines of credit1,778 2,027 — 
Commercial and industrial4,732 15,854 880 
Total non-accrual loans$15,210 $27,427 $3,817 

The following table summarizes interest income recognized on non-accrual loans, excluding PCD loans, during the three months ended March 31, 2026 and March 31, 2025 (in thousands):
Three Months Ended March 31,
20262025
Real estate loans:
Multifamily$40 $34 
Commercial mortgage50 17 
Home equity and lines of credit17 8 
Commercial and industrial38 81 
Total interest income on non-accrual loans$145 $140 

Collateral-Dependent Loans

Loans for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral are considered to be collateral-dependent loans. Collateral can have a significant financial effect in mitigating exposure to credit risk and, where there is sufficient collateral, an allowance for credit losses is not recognized or is minimal. For collateral-dependent loans, the allowance for credit losses is individually assessed based on the fair value of the collateral less estimated costs of sale. The Company's collateral-dependent loans are secured by real estate, inventory and equipment. Collateral values are generally based on appraisals, which are adjusted for changes in market indices. As of March 31, 2026, and December 31, 2025, the Company had $15.9 million and $8.4 million of collateral-dependent impaired loans, respectively. The collateral-dependent loans at March 31, 2026, consisted of $11.3 million of commercial real estate loans, $2.8 million of multifamily loans, $839,000 of commercial and industrial loans, and $949,000 of one-to-four family residential loans. For the three months ended March 31, 2026, there was no significant deterioration or changes in the collateral securing these loans.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty

The Company has modified, and may modify in the future, certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay.

The following table presents the amortized cost basis of loan modifications made to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2026 and 2025, by class and by type of modification (dollars in thousands):
Three Months Ended March 31, 2026
Payment DelayTerm Extension and Interest Rate ReductionPayment Delay and Interest Rate ReductionPayment Delay, Term Extension, and Interest Rate ReductionTotalPercentage of Total Class of Financing Receivable
Multifamily$— $— $4,819 $— $4,819 0.21 %
Commercial and industrial— 212 — — 212 0.12 %
Total loans$— $212 $4,819 $— $5,031 
Three Months Ended March 31, 2025
Payment Delay and Interest Rate ReductionTerm ExtensionPayment Delay and Term ExtensionPayment Delay, Term Extension, and Interest Rate ReductionTotalPercentage of Total Class of Financing Receivable
Commercial and industrial$209 $— $— $— $209 0.13 %
Total loans$209 $— $— $— $209 


The following table presents the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026, and March 31, 2025 (in thousands):
Weighted-Average Term Extension (in months)Weighted-Average Interest Rate Reduction
Three Months Ended March 31, 2026
Multifamily— 1.13 %
Commercial and industrial360.75 %
Three Months Ended March 31, 2025
Commercial and industrial— 2.50 %
There were no commitments to lend additional funds at March 31, 2026 to borrowers experiencing financial difficulty whose terms have been restructured.
At March 31, 2026, there were no modified loans during the preceding twelve months that subsequently defaulted.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of the modification efforts. The following table presents the aging analysis of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025 (in thousands):
As of March 31, 2026
Current30-89 Days Past Due90 Days or More Past DueNon-AccrualTotal
Multifamily$4,819 $— $— $— $4,819 
Commercial Mortgage1,725 — — — 1,725 
Commercial and industrial3,063 — — 174 3,237 
Total loans$9,607 $— $— $174 $9,781 
As of March 31, 2025
Current30-89 Days Past Due90 Days or More Past DueNon-AccrualTotal
Home equity and lines of credit$199 $— $— $— $199 
Commercial and industrial425 136 — 2,707 3,268 
Total loans$624 $136 $— $2,707 $3,467