v3.26.1
Loans and Leases
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans and Leases Loans and Leases
The composition of our loan portfolio for the periods indicated was as follows:

June 30, 2026December 31, 2025

AmountAmount
Loans and leases held for investment:
Multi-family$26,931 $28,983 
Commercial real estate
8,244 9,314 
One-to-four family first mortgage5,767 5,630 
Commercial and industrial(1)
18,563 15,217 
Other1,482 1,588 
Total loans and leases held for investment (2)(3)
$60,987 $60,732 
Allowance for credit losses on loans and leases(869)(1,030)
Total loans and leases held for investment, net$60,118 $59,702 
Loans held for sale
208 265 
Total loans and leases, net$60,326 $59,967 
(1)Includes lease financing receivables (net of unearned income of $166 million and $129 million, respectively) of $1.8 billion and $1.7 billion at June 30, 2026 and December 31, 2025, respectively.
(2)Excludes accrued interest receivable of $253 million and $242 million at June 30, 2026 and December 31, 2025, respectively, which is included in Other assets in the Condensed Consolidated Statements of Condition.
(3)We pledged loans of $31.3 billion and $31.5 billion between the FHLB and FRB-NY to serve as collateral for our wholesale borrowings at June 30, 2026 and December 31, 2025, respectively.

HFI loans are reported at amortized cost which includes the outstanding principal balance adjusted for any unamortized premiums, discounts, deferred fees and costs, hedge accounting adjustments and fair value adjustments for acquired loans. The unamortized premiums, discounts, deferred fees and costs and hedge accounting adjustments totaled $383 million and $431 million as of June 30, 2026 and December 31, 2025, respectively.

Loans with Government Guarantees

Substantially all LGG are insured or guaranteed by the FHA or the U.S. Department of Veterans Affairs. As of June 30, 2026 and December 31, 2025, LGG totaled $323 million and $331 million, respectively. These loans are recorded in one-to-four family first mortgages and are reported as current within the asset quality information and as pass within our credit rating by vintage table.

Related Party Loans

In the ordinary course of business, the Bank has made loans to officers, directors, and their related interests and parties. All such loans have been made in accordance with regulatory requirements, are on substantially the same terms and underwriting as those prevailing at the time for comparable transactions with unrelated persons, and do not involve higher than normal risk of collectability. During the three months ended March 31, 2026, a member of the Board of Directors was appointed to the board of another entity with which we had a previous lending relationship. As a result of that appointment, $167 million in outstanding loans now qualifies as loans to a related-party as of June 30, 2026. As of December 31, 2025, the Bank had no material related-party transactions requiring disclosure.

Asset Quality

For the three and six months ended June 30, 2026 and 2025, there was an immaterial amount of interest income recognized on non-accrual loans classified as held for investment.

The following table presents information regarding the delinquency status of our loans held for investment at June 30, 2026:


Current
Loans 30-89 Days Past Due
Loans 90 Days or More Past Due and Still Accruing
Non-Accrual Loans
Total Loans Receivable
Multi-family$24,528 $233 $38 $2,132 $26,931 
Commercial real estate
7,730 30 13 471 8,244 
One-to-four family first mortgage5,698 9 — 60 5,767 
Commercial and industrial
18,370 82 — 111 18,563 
Other1,442 14 — 26 1,482 
Total$57,768 $368 $51 $2,800 $60,987 


The following table presents information regarding the delinquency status of our loans held for investment at December 31, 2025:

CurrentLoans 30-89 Days Past DueLoans 90 Days or More Past Due and Still Accruing Non-Accrual LoansTotal Loans Receivable
Multi-family$26,134 $588 $— $2,261 $28,983 
Commercial real estate
8,670 155 — 489 9,314 
One-to-four family first mortgage5,488 78 — 64 5,630 
Commercial and industrial
14,961 126 — 130 15,217 
Other1,518 39 — 31 1,588 
Total$56,771 $986 $— $2,975 $60,732 

The following table presents the credit rating by vintage for our loans held for investment as of June 30, 2026:

Term Loans
Revolving
Loans		Revolving
Loans Converted to Term Loans		Total
Amortized Cost Basis by Origination Year

2026
2025
2024
2023
2022
Prior to
2022
Multi-family:
Pass$495 $86 $63 $736 $4,858 $11,617 $5 $— $17,860 
Special Mention— — — 46 1,262 1,449 — — 2,757 
Substandard— — — 92 998 3,067 — 25 4,182 
Non-accrual
— — — 20 276 1,834 2 — 2,132 
Total Multi-family
495 86 63 894 7,394 17,967 7 25 26,931 
Year-to-date gross charge-offs
— — — (3)(22)(137)— — (162)
Commercial Real Estate:
Pass$305 $543 $323 $805 $1,101 $2,645 $684 $— $6,406 
Special Mention— 10 43 123 103 66 — 31 376 
Substandard2 5 27 97 165 629 66 — 991 
Non-accrual
— — — 11 88 265 107 — 471 
Total Commercial Real Estate
307 558 393 1,036 1,457 3,605 857 31 8,244 
Year-to-date gross charge-offs
— — — — (18)(13)— — (31)
One-to-Four Family:
Pass$469 $812 $230 $343 $2,055 $1,537 $78 $1 $5,525 
Substandard— — 1 3 12 166 — — 182 
Non-accrual— 1 4 8 12 34 1 — 60 
Total One-to-Four Family469 813 235 354 2,079 1,737 79 1 5,767 
Year-to-date gross charge-offs
— — — — (1)(1)— — (2)
Commercial and Industrial:
Pass$2,937 $3,404 $698 $1,425 $1,250 $899 $7,223 $18 $17,854 
Special Mention24 6 31 34 5 64 114 — 278 
Substandard18 25 19 71 21 27 139 — 320 
Non-accrual— 1 18 22 8 36 26 — 111 
Total Commercial and Industrial2,979 3,436 766 1,552 1,284 1,026 7,502 18 18,563 
Year-to-date gross charge-offs
— (2)— (2)(14)(5)— — (23)
Other Loans:
Pass$30 $21 $19 $17 $26 $81 $1,256 $6 $1,456 
Non-accrual— 1 — — — 1 24 — 26 
Total Other Loans30 22 19 17 26 82 1,280 6 1,482 
Year-to-date gross charge-offs
— — — (3)(2)(10)— — (15)


The following table presents the credit rating by vintage for our loans held for investment as of December 31, 2025:

Term Loans
Revolving
Loans		Revolving
Loans Converted to Term Loans
Amortized Cost Basis by Origination Year

2025
2024
2023
2022
2021
Prior to
2021
Total
Multi-family:
Pass$45 $15 $592 $5,782 $5,238 $7,887 $4 $69 $19,632 
Special Mention———754751546—142,065
Substandard——1348191,1322,9382—5,025
Non-accrual
——122933591,597——2,261
Total Multi-family
45157387,6487,48012,96868328,983
Year-to-date gross charge-offs
———(59)(71)(155)——(285)
Commercial Real Estate:
Pass$478 $373 $1,053 $1,297 $955 $2,104 $924 $95 $7,279 
Special Mention1010508851542510352
Substandard121147143865131241591,194
Non-accrual
——12744365331489
Total Commercial Real Estate
4894041,2621,6021,0503,1361,1062659,314
Year-to-date gross charge-offs
——(5)(1)(7)(28)——(41)
One-to-Four Family:
Pass$938 $285 $415 $2,178 $778 $682 $78 $4 $5,358 
Substandard—14122189——208
Non-accrual
1371812212—64
Total One-to-Four Family9392894262,2087928928045,630
Year-to-date gross charge-offs
———(2)—(2)——(4)
Commercial and Industrial:
Pass$3,638 $793 $1,876 $1,513 $493 $739 $5,236 $231 $14,519 
Special Mention—42721128127—226
Substandard—8503531162011342
Non-accrual
1182321529249130
Total Commercial and Industrial3,6398611,9561,5905308125,58824115,217
Year-to-date gross charge-offs
(25)(1)(32)(21)(5)(3)——(87)
Other Loans:
Pass$44 $27 $21 $7 $2 $30 $1,336 $89 $1,556 
Substandard——————1—1
Non-accrual
—————130—31
Total Other Loans44272172311,367891,588
Year-to-date gross charge-offs
(10)(2)(7)(7)—(6)——(32)

The classifications in the preceding tables reflect the most recent credit evaluations as of the respective dates, which are generally performed within the last twelve months. In addition, they follow regulatory guidelines and can generally be described as follows: pass loans are of satisfactory quality; special mention loans have potential weaknesses that deserve management’s close attention; substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged (these loans have a well-defined weakness and there is a possibility that we will sustain some loss); and non-accrual loans, which based on existing circumstances, have weaknesses that make collection or liquidation in full highly questionable and improbable.

Collateral Dependent Loans

The following table summarizes the recorded investment of our collateral-dependent loans held for investment by collateral type as of June 30, 2026:


Real Property
Multi-family$2,130 
Commercial real estate
346 
One-to-four family first mortgage54 
Commercial and industrial25 
Total collateral-dependent loans held for investment$2,555 

Collateral dependent loans generally include multi-family and CRE loans secured by apartment buildings, office buildings, retail and industrial buildings. The primary source of repayment on these loans is expected to come from the sale of the real estate property collateral. Multi-family and CRE loans are impacted by fluctuations in the values of the real estate property.

At June 30, 2026 and December 31, 2025, we had $17 million and $19 million, respectively, of residential mortgage loans in the process of foreclosure.

Modifications to Borrowers Experiencing Financial Difficulty

When borrowers are experiencing financial difficulty, we may make certain loan modifications as part of loss mitigation strategies to maximize expected payment. Modifications provided to borrowers who are experiencing financial difficulties are generally in the form of term extension, an interest rate reduction, and in limited circumstances, principal forgiveness.

The following table summarizes the amortized cost basis of loans modified during the reporting period to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of modification:
Amortized Cost

Interest Rate ReductionTerm ExtensionCombination - Interest Rate Reduction & Term ExtensionTotalPercent of Total Loan class
Three Months Ended June 30, 2026
Multi-family
$134 $85 $40 $259 0.96 %
Commercial real estate110 4 9 123 1.49 %
One-to-four family first mortgage— 11 7 18 0.31 %
Other consumer
— — 1 1 0.06 %
Total$244 $100 $57 $401 
Three Months Ended June 30, 2025
Commercial real estate$— $6 $— $6 0.05 %
One-to-four family first mortgage— 7 6 13 0.23 %
Other Consumer— — — — 0.02 %
Total$— $13 $6 $19 
Six Months Ended June 30, 2026
Multi-family$199 $125 $40 $364 1.35 %
Commercial real estate128 22 9 159 1.93 %
One-to-four family first mortgage— 22 9 31 0.55 %
Other consumer
1 — 1 2 0.11 %
Total$328 $169 $59 $556 
Six Months Ended June 30, 2025
Commercial real estate$— $6 $— $6 0.05 %
One-to-four family first mortgage— 7 6 13 0.25 %
Other Consumer— — — — 0.02 %
Total$— $13 $6 $19 


The following table describes the financial effect of the modification made to borrowers experiencing financial difficulty:

Interest Rate ReductionTerm Extension
Weighted-average contractual interest rate
FromTo
Weighted-Average Term (in years)
Three Months Ended June 30, 2026
Multi-family7.68 %5.17 %1.2
Commercial real estate
8.63 %6.57 %0.9
One-to-four family first mortgage7.06 %5.17 %9.8
Other
9.50 %6.27 %13.3
Three months ended June 30, 2025
Commercial real estate
— %— %0.5
One-to-four family first mortgage6.24 %4.62 %7.4
Other
10.56 %6.75 %12.2
Six Months Ended June 30, 2026
Multi-family8.03 %5.14 %1.1
Commercial real estate
8.77 %5.46 %0.6
One-to-four family first mortgage7.09 %6.59 %10.3
Other
10.07 %6.21 %13.2
Six months ended June 30, 2025
Commercial real estate
— %— %0.5
One-to-four family first mortgage6.33 %4.73 %12.2
Other
10.58 %4.79 %7.2
The following table presents the amortized cost basis of the modifications for borrowers experiencing financial difficulty that subsequently defaulted and were within twelve months of the modification date:


Interest Rate ReductionTerm ExtensionPrincipal ForgivenessCombination - Interest Rate Reduction and Term/Payment Extension/Delay
Total
Three Months Ended June 30, 2026
Multi-family$27 $2 $— $— $29 
Commercial real estate
17 22 — — 39 
One-to-four family first mortgage— 17 — 7 24 
Other Consumer
1———1
Total$45 $41 $— $7 $93 
Three Months Ended June 30, 2025
One-to-four family first mortgage$— $6 $1 $4 $11 
Total$— $6 $1 $4 $11 
Six months ended June 30, 2026
Multi-family$148 $119 $— $19 $286 
Commercial real estate
38 22 — 9 69 
One-to-four family first mortgage— 21 — 7 28 
Commercial and industrial— 1 — — 1 
Other Consumer1 — — — 1 
Total$187 $163 $— $35 $385 
Six Months Ended June 30, 2025
One-to-four family first mortgage$— $6 $1 $4 $11 
Total$— $6 $1 $4 $11 

We closely monitor the performance of loans in which modifications were made to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. For purposes of this disclosure a payment default is defined as 30 days or more past due.

The following table provides a summary of loan balances which were modified during the prior twelve months, by class of financing receivable and delinquency status:

June 30, 2026Current30 - 89 Past Due90+ Past DueTotal
Multi-family
$199 $23 $153 $375 
Commercial real estate
128 19 13 160 
One-to-four family first mortgage10 — 52 62 
Other Consumer——22
Total$337 $42 $220 $599 
June 30, 2025
Commercial real estate$6 $— $— $6 
One-to-four family first mortgage5 — 16 21 
Commercial and industrial — — 1 1 
Total$11 $— $17 $28