v3.26.1
LOANS AND ALLOWANCE FOR CREDIT LOSSES
6 Months Ended
Jun. 30, 2026
LOANS AND ALLOWANCE FOR CREDIT LOSSES  
LOANS AND ALLOWANCE FOR CREDIT LOSSES

NOTE 5 — LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loans, net of deferred costs and fees, consist of the following (in thousands):

At

At

June 30, 

December 31, 

  ​ ​ ​

2026

2025

Real estate

Commercial

$

5,764,905

$

5,201,489

Construction

244,244

261,804

Multi-family

414,331

397,010

One-to four-family

84,332

86,449

Total real estate loans

6,507,812

5,946,752

Commercial and industrial

831,436

871,652

Consumer

9,283

10,349

Total loans

7,348,531

6,828,753

Deferred fees, net of origination costs

(19,628)

(18,520)

Loans, net of deferred fees and costs

7,328,903

6,810,233

Allowance for credit losses

(62,012)

(97,081)

Net loans

$

7,266,891

$

6,713,152

At June 30, 2026, $3.5 billion of loans were pledged to support wholesale funding, of which $535.4 million were encumbered. At December 31, 2025, $3.7 billion of loans were pledged to support wholesale funding, of which $446.5 million were encumbered.

The following tables present the activity in the ACL for funded loans by segment. The portfolio segments represent the categories that the Company uses to determine its ACL (in thousands):

Multi-

One-to four-

Three months ended June 30, 2026

  ​ ​ ​

CRE

  ​ ​ ​

C&I

  ​ ​ ​

Construction

  ​ ​ ​

family

  ​ ​ ​

family

  ​ ​ ​

Consumer

  ​ ​ ​

Total

Allowance for credit losses:

Beginning balance

$

45,462

$

12,586

$

1,410

$

21,796

$

626

$

191

$

82,071

Provision/(credit) for credit losses

916

12,987

246

59

(18)

(25)

14,165

Loans charged-off

(538)

(14,397)

(19,903)

(34,838)

Recoveries

603

11

614

Total ending allowance balance

$

46,443

$

11,176

$

1,656

$

1,952

$

608

$

177

$

62,012

Multi-

One-to four-

Three months ended June 30, 2025

  ​ ​ ​

CRE

  ​ ​ ​

C&I

  ​ ​ ​

Construction

  ​ ​ ​

family

  ​ ​ ​

family

  ​ ​ ​

Consumer

  ​ ​ ​

Total

Allowance for credit losses:

Beginning balance

$

44,647

$

12,433

$

2,518

$

7,259

$

602

$

344

$

67,803

Provision/(credit) for credit losses

5,808

166

(178)

412

(24)

70

6,254

Loans charged-off

(112)

(112)

Recoveries

125

1

126

Total ending allowance balance

$

50,455

$

12,724

$

2,340

$

7,671

$

578

$

303

$

74,071

Multi-

One-to four-

Six months ended June 30, 2026

  ​ ​ ​

CRE

  ​ ​ ​

C&I

  ​ ​ ​

Construction

  ​ ​ ​

family

  ​ ​ ​

family

  ​ ​ ​

Consumer

  ​ ​ ​

Total

Allowance for credit losses:

Beginning balance

$

60,818

$

10,181

$

2,510

$

22,619

$

540

$

413

$

97,081

Provision/(credit) for credit losses

(6,467)

19,697

(854)

(764)

68

(83)

11,597

Loans charged-off

(8,511)

(18,727)

(19,903)

(153)

(47,294)

Recoveries

603

25

628

Total ending allowance balance

$

46,443

$

11,176

$

1,656

$

1,952

$

608

$

177

$

62,012

Multi-

One-to four-

Six months ended June 30, 2025

  ​ ​ ​

CRE

  ​ ​ ​

C&I

  ​ ​ ​

Construction

  ​ ​ ​

family

  ​ ​ ​

family

  ​ ​ ​

Consumer

  ​ ​ ​

Total

Allowance for credit losses:

Beginning balance

$

42,070

$

10,991

$

1,962

$

7,290

$

577

$

383

$

63,273

Provision/(credit) for credit losses

8,385

1,428

378

381

1

150

10,723

Loans charged-off

(231)

(231)

Recoveries

305

1

306

Total ending allowance balance

$

50,455

$

12,724

$

2,340

$

7,671

$

578

$

303

$

74,071

Net charge-offs for the three and six months ended June 30, 2026 were $34.2 million and $46.7 million, respectively. Net recoveries for the three and six months ended June 30, 2025 were $14,000 and $76,000, respectively.

The following tables present the activity in the ACL for unfunded loan commitments (in thousands):

Three months ended June 30, 

  ​ ​ ​

Six months ended June 30, 

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

Balance at the beginning of period

$

2,409

$

2,046

$

2,140

$

2,008

Provision/(credit) for credit losses

(840)

124

(571)

162

Total ending allowance balance

$

1,569

$

2,170

$

1,569

$

2,170

The following tables present the recorded investment in non-accrual loans and loans past due 90 days and greater and still accruing, by class of loans (in thousands):

Loans Past Due

Non-accrual

90 Days and

Total

Without an

Greater and

At June 30, 2026

  ​ ​ ​

Non-accrual

ACL

Still Accruing

Commercial real estate

$

30,213

$

6,713

$

Commercial & industrial

11,262

11,262

Multi-family

23,094

23,094

One-to-four family

2,401

2,401

Consumer

Total

$

66,970

$

43,470

$

Loans Past Due

Non-accrual

90 Days and

Total

Without an

Greater and

At December 31, 2025

Non-accrual

ACL

Still Accruing

Commercial real estate

$

32,809

$

3,365

$

Commercial & industrial

8,989

6,989

Multi-family

42,599

7,861

One-to-four family

2,450

2,450

Consumer

37

Total

$

86,847

$

20,665

$

37

Interest income on non-accrual loans recognized on a cash basis for the three and six months ended June 30, 2026 and 2025 was immaterial.

The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands):

Non-accrual or

Total Past

30-59

60-89

90 Days and

Due or

Current

At June 30, 2026

  ​ ​ ​

Days

  ​ ​ ​

Days

  ​ ​ ​

Greater

  ​ ​ ​

Non-accrual

  ​ ​ ​

Loans

  ​ ​ ​

Total

Commercial real estate

$

10,707

$

$

30,213

$

40,920

$

5,723,985

$

5,764,905

Commercial & industrial

600

11,262

11,862

819,574

831,436

Construction

244,244

244,244

Multi-family

8,846

23,094

31,940

382,391

414,331

One-to four-family

444

2,401

2,845

81,487

84,332

Consumer

9,283

9,283

Total

$

19,997

$

600

$

66,970

$

87,567

$

7,260,964

$

7,348,531

Non-accrual or

Total Past

30-59

60-89

90 Days and

Due or

Current

At December 31, 2025

  ​ ​ ​

Days

  ​ ​ ​

  ​ ​ ​ ​Days    

  ​ ​ ​

Greater

  ​ ​ ​

Non-accrual

  ​ ​ ​

Loans

  ​ ​ ​

Total

Commercial real estate

$

$

$

32,809

$

32,809

$

5,168,680

$

5,201,489

Commercial & industrial

200

8,989

9,189

862,463

871,652

Construction

261,804

261,804

Multi-family

1,755

42,599

44,354

352,656

397,010

One-to four-family

1,246

2,450

3,696

82,753

86,449

Consumer

81

37

118

10,231

10,349

Total

$

3,082

$

200

$

86,884

$

90,166

$

6,738,587

$

6,828,753

Credit Quality Indicators

The Company aggregates 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. Except for one-to four-family loans and consumer loans, the Company analyzes loans individually by classifying the loans as to credit risk ratings at least annually. For one-to four-family loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan. An analysis is performed on a quarterly basis for loans classified as special mention, substandard or doubtful. The Company uses the following definitions for risk ratings. Loans not meeting these definitions are considered to be pass-rated loans.

Special Mention - Loans classified as special mention have a potential weakness that deserves management’s attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’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 Company 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.

The following table presents loan balances by credit quality indicator and year of origination at June 30, 2026 and charge-offs for the six months ended June 30, 2026 (in thousands):

2021

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

& Prior

  ​ ​ ​

Revolving

  ​ ​ ​

Total

CRE

Pass

$

1,544,314

$

2,000,568

$

872,414

$

412,279

$

481,732

$

280,116

$

53,736

$

5,645,159

Special Mention

35,335

22,926

27,811

86,072

Substandard

23,500

3,461

4,631

2,082

33,674

Total

$

1,603,149

$

2,026,955

$

900,225

$

412,279

$

486,363

$

282,198

$

53,736

$

5,764,905

Construction

Pass

$

66,396

$

57,315

$

98,938

$

$

$

$

21,595

$

244,244

Total

$

66,396

$

57,315

$

98,938

$

$

$

$

21,595

$

244,244

Multi-family

Pass

$

127,573

$

81,693

$

25,972

$

30,107

$

34,427

$

55,957

$

11,116

$

366,845

Special Mention

15,402

8,990

24,392

Substandard

19,166

2,529

1,399

23,094

Total

$

127,573

$

116,261

$

28,501

$

30,107

$

34,427

$

66,346

$

11,116

$

414,331

One-to four-family

Current

$

$

$

$

45,000

$

3,105

$

33,826

$

$

81,931

Past Due

2,401

2,401

Total

$

$

$

$

45,000

$

3,105

$

36,227

$

$

84,332

C&I

Pass

$

73,138

$

41,650

$

62,544

$

7,307

$

46,272

$

7,599

$

536,856

$

775,366

Special Mention

1,434

7,967

600

10,001

Substandard

3,840

27,773

14,456

46,069

Total

$

74,572

$

49,617

$

63,144

$

11,147

$

74,045

$

7,599

$

551,312

$

831,436

Consumer

Current

$

$

$

$

$

$

9,283

$

$

9,283

Total

$

$

$

$

$

$

9,283

$

$

9,283

Total

Pass/Current

$

1,811,421

$

2,181,226

$

1,059,868

$

494,693

$

565,536

$

386,781

$

623,303

$

7,122,828

Special Mention

36,769

46,295

28,411

8,990

120,465

Substandard/Past due

23,500

22,627

2,529

3,840

32,404

5,882

14,456

105,238

Total

$

1,871,690

$

2,250,148

$

1,090,808

$

498,533

$

597,940

$

401,653

$

637,759

$

7,348,531

Charge-offs

CRE

$

$

$

$

$

$

8,511

$

$

8,511

C&I

200

14,198

4,329

18,727

Multi-family

5,790

14,113

19,903

Consumer

153

153

Total

$

$

$

200

$

$

19,988

$

27,106

$

$

47,294

The following table presents loan balances by credit quality indicator and year of origination at December 31, 2025 and charge-offs for the year ended December 31, 2025 (in thousands):

2020

  ​ ​ ​

2025

  ​ ​ ​

2024

  ​ ​ ​

2023

  ​ ​ ​

2022

  ​ ​ ​

2021

  ​ ​ ​

& Prior

  ​ ​ ​

Revolving

  ​ ​ ​

Total

CRE

Pass

$

2,514,770

$

1,030,181

$

675,773

$

524,079

$

192,304

$

135,336

$

50,491

$

5,122,934

Special Mention

19,525

21,500

1,246

42,271

Substandard

3,475

24,000

8,809

36,284

Total

$

2,537,770

$

1,051,681

$

675,773

$

548,079

$

202,359

$

135,336

$

50,491

$

5,201,489

Construction

Pass

$

129,806

$

49,898

$

51,484

$

$

$

$

30,616

$

261,804

Total

$

129,806

$

49,898

$

51,484

$

$

$

$

30,616

$

261,804

Multi-family

Pass

$

169,606

$

32,869

$

30,296

$

36,451

$

60,650

$

8,930

$

2,671

$

341,473

Special Mention

12,938

12,938

Substandard

40,070

2,529

42,599

Total

$

222,614

$

35,398

$

30,296

$

36,451

$

60,650

$

8,930

$

2,671

$

397,010

One-to four-family

Current

$

$

$

45,000

$

3,192

$

211

$

35,596

$

$

83,999

Substandard

2,450

2,450

Total

$

$

$

45,000

$

3,192

$

211

$

38,046

$

$

86,449

C&I

Pass

$

130,514

$

138,733

$

46,470

$

80,377

$

16,377

$

2,372

$

399,005

$

813,848

Substandard

14,008

7,643

20,968

15,185

57,804

Total

$

144,522

$

138,733

$

54,113

$

101,345

$

16,377

$

2,372

$

414,190

$

871,652

Consumer

Current

$

$

$

$

$

$

10,231

$

$

10,231

Past due

118

118

Total

$

$

$

$

$

$

10,349

$

$

10,349

Total

Pass/Current

$

2,944,696

$

1,251,680

$

849,023

$

644,099

$

269,543

$

192,465

$

482,783

$

6,634,289

Special Mention

32,463

21,500

1,246

55,209

Substandard/Past due

57,553

2,529

7,643

44,968

8,809

2,568

15,185

139,255

Total

$

3,034,712

$

1,275,709

$

856,666

$

689,067

$

279,598

$

195,033

$

497,968

$

6,828,753

Charge-offs

Multi-family

$

$

$

$

$

3,827

$

$

$

3,827

Consumer

262

262

Total

$

$

$

$

$

3,827

$

262

$

$

4,089

A loan is considered collateral dependent when the borrower is experiencing financial difficulties and repayment is expected to be substantially provided by the operation or sale of the collateral. The following table presents collateral dependent loans by portfolio segment as of June 30, 2026 and December 31, 2025. These loans are classified as substandard as of June 30, 2026 and December 31, 2025:

June 30, 

December 31, 

  ​ ​ ​

2026

2025

Collateral dependent loans:

Commercial real estate

$

33,674

$

36,284

Multi-family

23,094

42,599

One-to four-family

2,401

2,450

Total

$

59,169

$

81,333

The following tables show the amortized cost basis of modified loans to borrowers experiencing financial difficulty during the periods indicated (in thousands):

Combination

Combination

Term

Term Extension

Modifications

Extension and

Payment Deferral and

as a % of

Three months ended June 30, 2026

Extension

Interest Rate

Debt Forgiveness

Total

Loan Class

Commercial real estate

$

$

23,500

$

$

23,500

0.4%

Multi-family

$

$

$

13,880

$

13,880

3.3%

Total

$

$

23,500

$

13,880

$

37,380

Combination

Combination

Term

Term Extension

Modifications

Extension and

Payment Deferral and

as a % of

Six months ended June 30, 2026

Extension

Interest Rate

Debt Forgiveness

Total

Loan Class

Commercial real estate

$

$

23,500

$

$

23,500

0.4%

Multi-family

$

$

$

13,880

$

13,880

3.3%

Total

$

$

23,500

$

13,880

$

37,380

Combination

Combination

Term

Term Extension

Modifications

Extension and

Payment Deferral and

as a % of

Three months ended June 30, 2025

Extension

Interest Rate

Debt Forgiveness

Total

Loan Class

Commercial real estate

$

$

$

$

0.0%

Total

$

$

$

$

Combination

Combination

Term

Term Extension

Modifications

Extension and

Payment Deferral and

as a % of

Six months ended June 30, 2025

Extension

Interest Rate

Debt Forgiveness

Total

Loan Class

Multi-family

$

51,239

$

$

$

51,239

12.4%

Total

$

51,239

$

$

$

51,239

The following tables describe the types of modifications made to borrowers experiencing financial difficulty (dollars in thousands):

  ​ ​ ​

Types of Modifications

Weighted

Combination

Combination

Average

Term

Term Extension

Interest

Term

Extension and

Payment Deferral

Rate

Extension

Interest Rate

and Debt Forgiveness

Reduction

Three months ended June 30, 2026

Commercial real estate

96 months

2.8%

Multi-family

130 months
3 months
$19,903

0.0%

  ​ ​ ​

Types of Modifications

Weighted

Combination

Combination

Average

Term

Term Extension

Interest

Term

Extension and

Payment Deferral

Rate

Extension

Interest Rate

and Debt Forgiveness

Reduction

Six months ended June 30, 2026

Commercial real estate

96 months

2.8%

Multi-family

130 months
3 months
$19,903

0.0%

  ​ ​ ​

Types of Modifications

Weighted

Combination

Combination

Average

Term

Term Extension

Interest

Term

Extension and

Payment Deferral

Rate

Extension

Interest Rate

and Debt Forgiveness

Reduction

Three months ended June 30, 2025

Multi-family

0.0%

  ​ ​ ​

Types of Modifications

Weighted

Combination

Combination

Average

Term

Term Extension

Interest

Term

Extension and

Payment Deferral

Rate

Extension

Interest Rate

and Debt Forgiveness

Reduction

Six months ended June 30, 2025

Multi-family

6-12 months

0.0%

There were $23.5 million of CRE loans and $13.9 million of multi-family loans that had a payment default during the three and six months ended June 30, 2026 that were modified in the prior 12 months before default to borrowers experiencing financial difficulty. At June 30, 2026 there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified. There were $7.0 million of loans that had a payment default during the three and six months ended June 30, 2025 that were modified in the prior 12 months before default to borrowers experiencing financial difficulty. At June 30, 2025, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified.