Loans

3 Months Ended

Mar. 31, 2026

Loans

Loans

NOTE 3 — Loans

The composition of loans by class is summarized as follows:


		March 31,			December 31,
		2026			2025

		(In thousands)
Real estate:
Multifamily		$	389,000		$	372,800
Commercial real estate			114,357			107,293
1 – 4 family			9,034			9,835
Total real estate			512,391			489,928
Commercial			1,275,545			1,245,555
Consumer			26,812			22,762
Total loans held for investment			1,814,748			1,758,245
Deferred fees and unearned premiums, net			342			182
Allowance for credit losses			(23,540)			(24,022)
Loans held for investment, net		$	1,791,550		$	1,734,405

Commercial loans include commercial Litigation-Related loans of $1.2 billion and other commercial loans of $53.2 million at March 31, 2026. Commercial loans include commercial Litigation-Related loans of $1.2 billion and other commercial loans of $67.2 million at December 31, 2025.

The following tables present the activity in the allowance for credit losses by class for the three months ending March 31, 2026 and March 31, 2025:


					Commercial
		Multifamily			Real Estate			1‑4 Family			Commercial			Consumer			Total

		(In thousands)
March 31, 2026
Allowance for credit losses:
Beginning balance		$	6,026		$	795		$	35		$	16,285		$	881		$	24,022
Provision (credit) for credit losses			1,670			41			(5)			705			289			2,700
Recoveries			—			—			—			—			1			1
Loans charged-off			(3,176)			—			—			—			(7)			(3,183)
Total ending allowance balance		$	4,520		$	836		$	30		$	16,990		$	1,164		$	23,540

March 31, 2025
Allowance for credit losses:
Beginning balance		$	5,116		$	691		$	52		$	14,283		$	837		$	20,979
Provision (credit) for credit losses			2,031			(28)			72			(455)			(120)			1,500
Recoveries			—			—			—			—			19			19
Loans charged-off			(2,940)			—			(79)			—			(18)			(3,037)
Total ending allowance balance		$	4,207		$	663		$	45		$	13,828		$	718		$	19,461

As of March 31, 2026, there was one collateral dependent commercial loan secured by business assets totaling $736 thousand, with no associated specific reserve on the Consolidated Statements of Financial Condition. As of December 31, 2025, there was one collateral dependent multifamily loan secured by real estate totaling $7.8 million and one collateral dependent commercial loan secured by business assets totaling $736 thousand, with no associated specific reserve for either loan on the Consolidated Statements of Financial Condition.

The following tables present the aging of the past due loans measured at amortized cost, excluding deferred fees and unearned premiums, net, due to immateriality, by class of loans as of March 31, 2026 and December 31, 2025:


														Total Past
		30-59			60-89			90 Days						Due &
		Days			Days			or More			Nonaccrual			Nonaccrual			Loans Not
		Past Due			Past Due			Past Due			Loans			Loans			Past Due			Total

		(In thousands)
March 31, 2026
Multifamily		$	—		$	—		$	—		$	—		$	—		$	389,000		$	389,000
Commercial real estate			—			—			—			—			—			114,357			114,357
1 – 4 family			—			—			—			—			—			9,034			9,034
Commercial			—			—			—			736			736			1,274,809			1,275,545
Consumer			—			12			—			—			12			26,800			26,812
Total		$	—		$	12		$	—		$	736		$	748		$	1,814,000		$	1,814,748

														Total Past
		30-59			60-89			90 Days						Due &
		Days			Days			or More			Nonaccrual			Nonaccrual			Loans Not
		Past Due			Past Due			Past Due			Loans			Loans			Past Due			Total

		(In thousands)
December 31, 2025
Multifamily		$	—		$	—		$	—		$	7,836		$	7,836		$	364,964		$	372,800
Commercial real estate			—			—			—			—			—			107,293			107,293
1 – 4 family			—			—			—			—			—			9,835			9,835
Commercial			—			—			—			736			736			1,244,819			1,245,555
Consumer			12			—			7			—			19			22,743			22,762
Total		$	12		$	—		$	7		$	8,572		$	8,591		$	1,749,654		$	1,758,245

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 documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed whenever a credit is extended, renewed or modified, or when an observable event occurs indicating a potential decline in credit quality, and no less than annually for large balance loans.

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 institution’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 institution 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 currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

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


	March 31, 2026
	2026			2025			2024			2023			2022			2021 and Prior			Revolving			Revolving-Term			Total

	(In thousands)
Multifamily:
Pass	$	30,120		$	45,228		$	26,340		$	104,348		$	25,963		$	151,196		$	—		$	—		$	383,195
Special Mention		—			—			—			—			—			5,984			—			—			5,984
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		30,120			45,228			26,340			104,348			25,963			157,180			—			—			389,179
Current period gross charge-offs		—			3,176			—			—			—			—			—			—			3,176

Commercial real estate:
Pass		8,113			25,535			1,794			2,762			56,275			19,871			—			—			114,350
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		8,113			25,535			1,794			2,762			56,275			19,871			—			—			114,350
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

1-4 family:
Pass		—			—			—			—			1,772			7,267			—			—			9,039
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		—			—			—			—			1,772			7,267			—			—			9,039
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

Commercial:
Pass		29,158			92,057			41,077			21,317			5,539			1,047			1,065,010			13,485			1,268,690
Special Mention		—			—			—			—			1,290			—			4,989			—			6,279
Substandard		—			—			—			—			—			—			736			—			736
Doubtful		—			—			—			—			—			—			—			—			—
Total		29,158			92,057			41,077			21,317			6,829			1,047			1,070,735			13,485			1,275,705
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

Consumer:
Pass		616			1,492			751			2,242			701			947			14,255			5,813			26,817
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		616			1,492			751			2,242			701			947			14,255			5,813			26,817
Current period gross charge-offs		—			—			—			—			7			—			—			—			7

Total:
Pass		68,007			164,312			69,962			130,669			90,250			180,328			1,079,265			19,298			1,802,091
Special Mention		—			—			—			—			1,290			5,984			4,989			—			12,263
Substandard		—			—			—			—			—			—			736			—			736
Doubtful		—			—			—			—			—			—			—			—			—
Total loans	$	68,007		$	164,312		$	69,962		$	130,669		$	91,540		$	186,312		$	1,084,990		$	19,298		$	1,815,090
Total current period gross charge-offs	$	—		$	3,176		$	—		$	—		$	7		$	—		$	—		$	—		$	3,183


	December 31, 2025
	2025			2024			2023			2022			2021			2020 and Prior			Revolving			Revolving-Term			Total

	(In thousands)
Multifamily:
Pass	$	45,320		$	26,402		$	104,575		$	26,107		$	98,922		$	57,783		$	—		$	—		$	359,109
Special Mention		—			—			—			—			6,019			—			—			—			6,019
Substandard		7,836			—			—			—			—			—			—			—			7,836
Doubtful		—			—			—			—			—			—			—			—			—
Total		53,156			26,402			104,575			26,107			104,941			57,783			—			—			372,964
Current period gross charge-offs		—			—			—			—			—			3,275			—			—			3,275

Commercial real estate:
Pass		25,648			1,803			2,785			56,556			6,823			13,658			—			—			107,273
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		25,648			1,803			2,785			56,556			6,823			13,658			—			—			107,273
Current period gross charge-offs		—			—			—			—			—			—			—			—			—

1-4 family:
Pass		—			—			—			1,783			—			8,058			—			—			9,841
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		—			—			—			1,783			—			8,058			—			—			9,841
Current period gross charge-offs		—			—			—			—			—			79			—			—			79

Commercial:
Pass		115,547			40,222			25,418			6,247			1,154			271			1,046,671			3,036			1,238,566
Special Mention		—			—			—			1,290			—			—			4,989			—			6,279
Substandard		—			—			—			—			—			—			736			—			736
Doubtful		—			—			—			—			—			—			—			—			—
Total		115,547			40,222			25,418			7,537			1,154			271			1,052,396			3,036			1,245,581
Current period gross charge-offs		—			—			—			—			—			—			3,250⁽¹⁾			—			3,250⁽¹⁾

Consumer:
Pass		2,128			794			2,460			851			—			974			13,354			2,207			22,768
Special Mention		—			—			—			—			—			—			—			—			—
Substandard		—			—			—			—			—			—			—			—			—
Doubtful		—			—			—			—			—			—			—			—			—
Total		2,128			794			2,460			851			—			974			13,354			2,207			22,768
Current period gross charge-offs		—			—			—			57			—			—			—			—			57

Total:
Pass		188,643			69,221			135,238			91,544			106,899			80,744			1,060,025			5,243			1,737,557
Special Mention		—			—			—			1,290			6,019			—			4,989			—			12,298
Substandard		7,836			—			—			—			—			—			736			—			8,572
Doubtful		—			—			—			—			—			—			—			—			—
Total loans	$	196,479		$	69,221		$	135,238		$	92,834		$	112,918		$	80,744		$	1,065,750		$	5,243		$	1,758,427
Total current period gross charge-offs	$	—		$	—		$	—		$	57		$	—		$	3,354		$	3,250⁽¹⁾		$	—		$	6,661

(1)

Represents a commercial loan to a small business merchant.

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For smaller dollar commercial and consumer loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.

Loan Modifications to Borrowers Experiencing Financial Difficulty

During the three months ended March 31, 2026 and 2025, the Company did not modify the terms of any loans or commitments to lend to borrowers experiencing financial difficulty in the form of an interest rate reduction, term extension, principal forgiveness, or other-than-significant payment delay.

The Company closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The Company modified one multifamily loan in the last twelve months. During the three months ended March 31, 2026, the Company foreclosed on the property securing this nonaccrual multifamily loan (totaling $7.8 million) that was modified in the second quarter of 2025 for a borrower experiencing financial difficulty and was accounted for as a new loan, recorded it as other real estate owned (“OREO”), recorded a charge-off totaling $3.2 million (consisting of principal and certain costs to perfect its lien), and sold the OREO to an unrelated third party.

Pledged Loans

At March 31, 2026, loans totaling $320.5 million were pledged to the FHLB for borrowing capacity totaling $231.0 million. At December 31, 2025, loans totaling $319.4 million were pledged to the FHLB for borrowing capacity totaling $219.8 million.