v3.26.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. A description of the disclosure hierarchy and the types of financial instruments recorded at fair value that management believes would generally qualify for each category are as follows:
Level 1 - Valuations are based on quoted prices in active markets for identical assets or liabilities. Accordingly, valuation of these assets and liabilities does not entail a significant degree of judgment. Examples include most U.S. Government securities and exchange-traded equity securities.
Level 2 - Valuations are based on either quoted prices in markets that are not considered to be active or significant inputs to the methodology that are observable, either directly or indirectly. Financial instruments in this level would generally include mortgage-related securities and other debt issued by GSEs, non-GSE mortgage-related securities, corporate debt, certain redeemable fund investments and certain trust preferred securities.
Level 3 - Valuations are based on inputs to the methodology that are unobservable and significant to the fair value measurement. These inputs reflect management’s own judgments about the assumptions that market participants would use in pricing the assets and liabilities.

Assets Measured at Fair Value on a Recurring Basis
Available for sale securities
The Company’s available for sale securities are reported at fair value. Investments in fixed income securities are generally valued based on evaluations provided by an independent pricing service. These evaluations represent an exit price or their opinion as to what a buyer would pay for a security, typically in an institutional round lot position, in a current sale. The pricing service utilizes evaluated pricing techniques that vary by asset class and incorporate available market information and, because many fixed income securities do not trade on a daily basis, applies available information through processes such as benchmark curves, benchmarking of available securities, sector groupings and matrix pricing. Model processes, such as option adjusted spread models, are used to value securities that have prepayment features. In those limited cases where pricing service evaluations are not available for a fixed income security, management will typically value those instruments using observable market inputs in a discounted cash flow analysis.
Derivatives
Derivatives represent cash flow hedges, and estimated fair values are based on valuation models using observable market data as of the measurement date.
The following summarizes those financial instruments measured at fair value on a recurring basis in the Consolidated Statements of Financial Condition as of the dates indicated, categorized by the relevant class of investment and level of the fair value hierarchy:
June 30, 2026
(In thousands)Level 1Level 2Level 3Total
Financial Assets:
Available for sale securities:
Traditional securities:
GSE certificates & CMOs$— $706,003 $— $706,003 
Non-GSE certificates & CMOs— 448,157 — 448,157 
ABS— 784,193 — 784,193 
Corporate— 85,945 — 85,945 
Other10,234 — — 10,234 
PACE assessments:
Residential PACE assessments— — 206,302 206,302 
Other assets - Cash flow hedges— 1,068 — 1,068 
Total assets carried at fair value$10,234 $2,025,366 $206,302 $2,241,902 
Financial liabilities:
Other liabilities - Cash flow hedges$— $749 $— $749 
Total liabilities carried at fair value$— $749 $— $749 

December 31, 2025
(In thousands)Level 1Level 2Level 3Total
Financial Assets:
Available for sale securities:
Traditional securities:
GSE certificates & CMOs$— $567,070 $— $567,070 
Non-GSE certificates & CMOs— 273,232 — 273,232 
ABS— 629,168 — 629,168 
Corporate— 95,504 — 95,504 
Other8,048 7,027 — 15,075 
PACE assessments:
Residential PACE assessments— — 203,502 203,502 
Other assets - Cash flow hedges— 1,754 — 1,754 
Total assets carried at fair value$8,048 $1,573,755 $203,502 $1,785,305 
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2026 and June 30, 2025:

Residential PACE Assessments
June 30, 2026June 30, 2025
(In thousands)
Balance of recurring Level 3 assets at January 1$203,502 $152,011 
Amortization included in interest income(544)(267)
Change in unrealized holding gains (losses) included in other comprehensive income(4,629)1,739 
Purchases19,927 33,752 
Sales— — 
Principal paydowns(11,954)(8,988)
Balance of recurring Level 3 assets at June 30$206,302 $178,247 

The fair value of the Company's PACE assessments are determined internally by calculating discounted cash flows using expected conditional prepayment rates, market spreads, and the Treasury yield curve. Qualitative assessments from recent commentary from dealers or investors or issuers, information revealed from secondary market trades of clean energy senior asset-backed securities, and volatility in the marketplace are reviewed and incorporated into the calculations.

The following table presents quantitative information about recurring Level 3 fair value measurements at June 30, 2026 and December 31, 2025:

June 30, 2026
Fair Value
Valuation Technique
Unobservable Input
Range (Weighted Average)
(In thousands)
Residential PACE assessments$206,302 
Discounted cash flow
Conditional prepayment rate
7.0%-25.0% (19.7%)
December 31, 2025
Fair Value
Valuation Technique
Unobservable Input
Range (Weighted Average)
(In thousands)
Residential PACE assessments$203,502 
Discounted cash flow
Conditional prepayment rate
7.0%-26.0% (20.2%)

Assets Measured at Fair Value on a Non-recurring Basis
Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. That is, they are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis include certain individually evaluated loans, reported at the fair value of the underlying collateral if repayment is expected solely from the collateral or based on observable market data.
The following tables summarize assets measured at fair value on a non-recurring basis in the Consolidated Statements of Financial Condition as of the dates indicated, categorized by the relevant class of investment and level of the fair value hierarchy:
June 30, 2026
(In thousands)Carrying ValueLevel 1Level 2Level 3Estimated Fair ValueValuation Technique
Individually analyzed loans$29,898 $— $— $29,898 $29,898 
Appraisals of collateral and market data (1)
December 31, 2025
(In thousands)Carrying ValueLevel 1Level 2Level 3Estimated Fair ValueValuation Technique
Individually analyzed loans$9,253 $— $— $9,253 $9,253 
Appraisals of Collateral (1)
(1) Appraisals and market data are obtained from independent third parties, which include unobservable inputs such as adjustments for capitalization rates, vacancy rates, and other market insights and assumptions. Appraisals are adjusted for estimated costs to sell of 10%.
Financial Instruments Not Measured at Fair Value
For those financial instruments that are not recorded at fair value in the consolidated statements of financial condition, but are measured at fair value for disclosure purposes, management follows the same fair value measurement principles and guidance as for instruments recorded at fair value. For a description of the methods, factors and significant assumptions utilized in estimating the fair values for significant categories of financial instruments not measured at fair value, refer to Note 13, Fair Value of Financial Instruments, included in the Annual Report on Form 10-K for the year ended December 31, 2025.
There are significant limitations in estimating the fair value of financial instruments for which an active market does not exist. Due to the degree of management judgment that is often required, such estimates tend to be subjective, sensitive to changes in assumptions and imprecise. Such estimates are made as of a point in time and are impacted by then-current observable market conditions; also such estimates do not give consideration to transaction costs or tax effects if estimated unrealized gains or losses were to become realized in the future. Because of inherent uncertainties of valuation, the estimated fair value may differ significantly from the value that would have been used had a ready market for the investment existed and the difference could be material. Lastly, consideration is not given to nonfinancial instruments, including various intangible assets, which could represent substantial value. Fair value estimates are not necessarily representative of the Company’s total enterprise value.
The following table summarizes the financial statement basis and estimated fair values for significant categories of financial instruments:
June 30, 2026
(In thousands)Carrying ValueLevel 1Level 2Level 3Estimated Fair Value
Financial assets:
Cash and cash equivalents$167,784 $167,784 $— $— $167,784 
Held-to-maturity securities1,571,547 — 411,292 1,025,790 1,437,082 
Loans held for sale459 — — 459 459 
Loans receivable, net5,080,146 — — 4,877,644 4,877,644 
Resell agreements59,271 — — 59,271 59,271 
Accrued interest receivable63,795 81 14,27249,442 63,795 
Financial liabilities:
Deposits payable on demand$8,220,553 $— $8,220,553 $— $8,220,553 
Time deposits 237,861 — 237,179 — 237,179 
FHLBNY advances5,924 — 5,688 — 5,688 
Subordinated debt, net63,830 — 62,713 — 62,713 
Accrued interest payable2,290 — 2,290 — 2,290 
    
December 31, 2025
(In thousands)Carrying
Value		Level 1Level 2Level 3Estimated
Fair Value
Financial assets:
Cash and cash equivalents$291,217 $291,217 $— $— $291,217 
Held-to-maturity securities1,554,015 — 449,414 990,558 1,439,972 
Loans held for sale2,814 — — 2,814 2,814 
Loans receivable, net4,899,687 — — 4,742,463 4,742,463 
Resell agreements48,662 — — 48,662 48,662 
Accrued interest receivable65,128 124 11,912 53,092 65,128 
Financial liabilities:
Deposits payable on demand$7,746,044 $— $7,746,044 $— $7,746,044 
Time deposits 203,197 — 203,170 — 203,170 
FHLBNY advances5,760 — 5,666 — 5,666 
Subordinated debt, net63,787 — 61,013 — 61,013 
Accrued interest payable2,407 — 2,407 — 2,407