v3.26.1
Fair Value Measurement
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
The following tables present assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, and that were included in the Condensed Consolidated Statements of Condition at those dates:
June 30, 2026

Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)(1)
Total Fair Value
Assets:
Mortgage-related debt securities available-for-sale:
GSE CMOs
$— $12,772 $— $12,772 
GSE certificates— 951 — 951 
Private label CMOs
— 130 22 152 
Total mortgage-related debt securities$— $13,853 $22 $13,875 
Other debt securities available-for-sale:
GSE debentures$— $1,283 $— $1,283 
U. S. treasury obligations
999 — — 999 
Asset-backed securities— 199 — 199 
Corporate bonds— 146 — 146 
Municipal bonds and capital trust
— 51 — 51 
Total other debt securities$999 $1,679 $— $2,678 
Total debt securities available-for-sale
$999 $15,532 $22 $16,553 
Equity securities:
Mutual funds and common stock$— $14 $— $14 
Total equity securities$— $14 $— $14 
Total securities$999 $15,546 $22 $16,567 
Loans held for sale:
One-to-four family first mortgage
$— $208 $— $208 
Derivative assets:
Interest rate swaps
— 15 — 15 
Rate lock commitments (fallout adjustments)
— — 2 2 
Interest rate caps
— 2 — 2 
Total assets at fair value$999 $15,771 $24 $16,794 
Derivative liabilities:
Interest rate swaps
$— $22 $— $22 
Mortgage-backed securities forwards— 1 — 1 
Total liabilities at fair value$— $23 $— $23 
(1)The change in the fair value due to significant unobservable inputs was immaterial.


December 31, 2025

Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant Other Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)(1)
Total Fair Value
Assets:
Mortgage-related debt securities available-for-sale:
GSE CMOs
$— $11,824 $— $11,824 
GSE certificates —999—999
Private label CMOs
—13623159
Total mortgage-related debt securities$— $12,959 $23 $12,982 
Other debt securities available-for-sale:
GSE debentures$— $1,296 $— $1,296 
U. S. Treasury obligations1,017 — — 1,017 
Asset-backed securities—213—213
Corporate bonds—144—144
Municipal bonds, foreign notes, and capital trust
—49—49
Total other debt securities$1,017 $1,702 $— $2,719 
Total debt securities available-for-sale
$1,017 $14,661 $23 $15,701 
Equity securities:
Mutual funds and common stock$51 $14 $— $65 
Total equity securities$51 $14 $— $65 
Total securities$1,068 $14,675 $23 $15,766 
Loans held for sale
Residential first mortgage loans
$— $193 $— $193 
Commercial real estate
—48—48 
Derivative assets
Interest rate swaps
— 19 — 19 
Rate lock commitments (fallout adjustments)
— — 4 4 
Interest rate caps
— 3 — 3 
Total assets at fair value$1,068 $14,938 $27 $16,033 
Derivative liabilities
Interest rate swaps
$— $21 $— $21 
Rate lock commitments
— — 1 1 
Mortgage-backed securities forwards— 1 — 1 
Total liabilities at fair value$— $22 $1 $23 
(1)The change in the fair value due to significant unobservable inputs was immaterial.


Assets Measured at Fair Value on a Non-Recurring Basis

The following tables present assets that were measured at fair value on a non-recurring basis:

Fair Value Measurements at June 30, 2026 Using

Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Fair Value
Loans held for investment(1)
$— $— $2,621 $2,621 
Other assets(2)
— — 28 28 
Total$— $— $2,649 $2,649 
(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.
(2)Primarily comprised of equity securities without readily determinable fair values.

Fair Value Measurements at December 31, 2025 Using

Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)Total Fair Value
Loans held for investment(1)
$— $— $2,784 $2,784 
Loans held for sale— 24 — 24 
Other assets (2)
— — 31 31 
Total$— $24 $2,815 $2,839 
(1)Represents the fair value of impaired loans, based primarily on the value of the collateral less costs to sell.
(2)Primarily comprised of equity securities without readily determinable fair values.
The fair values of collateral-dependent loans are determined using various valuation techniques, including appraisal values less costs to sell or other observable market data.
Other Fair Value Disclosures
For the disclosure of fair value information about our on- and off-balance sheet financial instruments, when available, quoted market prices are used as the measure of fair value. In cases where quoted market prices are not available, fair values are based on present-value estimates or other valuation techniques. Such fair values are significantly affected by the assumptions used, the timing of future cash flows, and the discount rate.
Because assumptions are inherently subjective in nature, estimated fair values cannot be substantiated by comparison to independent market quotes. Furthermore, in many cases, the estimated fair values provided would not necessarily be realized in an immediate sale or settlement of such instruments.

The following tables summarize the carrying values, estimated fair values, and fair value measurement levels of financial instruments that were not carried at fair value on the Bank’s Condensed Consolidated Statements of Condition:

June 30, 2026
Fair Value Measurement Using

Carrying ValueEstimated Fair ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks$416 $416 $416 $— $— 
Interest-earning deposits and other securities with financial institutions4,692 4,692 4,692 — — 
Cash and cash equivalents
$5,108 $5,108 $5,108 $— $— 
FHLB and FRB-NY stock (1)
870 870 — 870 — 
Loans and leases held for investment, net(2)
60,118 59,409 — — 59,409 
Financial Liabilities:
Deposits$67,521 $67,504 $47,044 
(3)
$20,460 
(4)
$— 
Borrowed funds10,937 10,781 — 10,781 — 
(1)Carrying value and estimated fair value are at cost.
(2)Carrying value and estimated fair value include impaired loans held for investment.
(3)Includes interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.
(4)Includes CDs.


December 31, 2025
Fair Value Measurement Using

Carrying ValueEstimated Fair ValueQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and due from banks$553 $553 $553 $— $— 
Interest-earning deposits and other securities with financial institutions5,3415,3415,341 — — 
Cash and cash equivalents
$5,894 $5,894 $5,894 $— $— 
FHLB and FRB-NY stock (1)
973973— 973— 
Loans and leases held for investment, net(2)
59,70256,605— — 56,605
Financial Liabilities:
Deposits$66,000 $65,991 $45,157 
(3)
$20,834 
(4)
$— 
Borrowed funds12,18411,972— 11,972— 
(1)Carrying value and estimated fair value are at cost.
(2)Carrying value and estimated fair value include impaired loans held for investment.
(3)Includes interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts.
(4)Includes CDs.

The methods and significant assumptions used to estimate fair values for our financial instruments are described below:

Cash and Cash Equivalents
Cash and cash equivalents is comprised of cash and due from banks and interest-earning deposits and other securities with financial institutions. Cash and due from banks includes cash on hand, cash equivalents, and balances with other banks. Interest-earning deposits and other securities primarily comprise interest-bearing deposits and short-term money market investments. The estimated fair values of cash and cash equivalents are assumed to equal their carrying values, as these financial instruments are either due on demand or have short-term maturities.

Federal Home Loan Bank Stock
Ownership in equity securities of the FHLB is generally restricted and there is no established liquid market for their resale; therefore the estimated fair value of the FHLB securities is assumed to equal their carrying value.

Loans and leases
We determine the fair value on substantially all of our loans and leases measured at amortized cost, on an individual loan basis generally using a discounted cash flow method. The discount rates reflect current market rates for loans with similar terms to borrowers having similar credit quality on an exit price basis. For impaired loans and leases we determine the fair value based on the collateral value less costs to sell.

Deposits
The fair values of deposit liabilities with no stated maturity (i.e., interest-bearing checking and money market accounts, savings accounts, and non-interest-bearing accounts) are equal to the carrying amounts payable on demand. The fair values of CDs represent contractual cash flows, discounted using interest rates currently offered on deposits with similar characteristics and remaining maturities. These estimated fair values do not include the intangible value of core deposit relationships, which comprise a portion of our deposit base.

Borrowed Funds
The estimated fair value of borrowed funds is based either on bid quotations received from securities dealers or the discounted value of contractual cash flows with interest rates currently in effect for borrowed funds with similar maturities and structures.

Fair Value Option
We elected the fair value option for certain items as discussed throughout the Notes to the Condensed Consolidated Financial Statements to more closely align the accounting method with the underlying economic exposure.
The following table reflects the change in fair value included in earnings of financial instruments for which the fair value option has been elected:


Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Assets:
Loans held for sale:
Net gain on loan sales and securitizations
$5 $6 $9 $14 

The following table reflects the difference between the aggregate fair value and aggregate remaining contractual principal balance outstanding for assets and liabilities for which the fair value option has been elected:

June 30, 2026December 31, 2025

Unpaid Principal BalanceFair ValueFair Value Over / (Under) UPBUnpaid Principal BalanceFair ValueFair Value Over / (Under) UPB
Assets:
Non-accrual loans:
Loans held for sale$5 $5 $— $6 $7 $1 
Total non-accrual loans$5 $5 $— $6 $7 $1 
Accrual loans:
Loans held for sale$202 $203 $1 $230 $234 $4 
Total accrual loans$202 $203 $1 $230 $234 $4 
Total loans:
Loans held for sale$207 $208 $1 $236 $241 $5 
Total loans$207 $208 $1 $236 $241 $5