Loans Receivable, Net

6 Months Ended

Jun. 30, 2026

Loans receivable, net at June 30, 2026 and December 31, 2025 consisted of the following (in thousands):


	June 30,		December 31,
	2026		2025
Commercial:
Commercial real estate – investor	$	9,125,313	$	5,420,989
Commercial and industrial:
Commercial and industrial – real estate	1,800,501		986,431
Commercial and industrial – non-real estate	1,907,719		1,227,556
Total commercial and industrial	3,708,220		2,213,987
Total commercial	12,833,533		7,634,976
Consumer:
Residential real estate	3,245,311		3,194,264

Other consumer	196,908		202,763

Total consumer	3,442,219		3,397,027
Total loans receivable	16,275,752		11,032,003
Deferred origination costs, net of fees	20,496		22,389
Allowance for loan credit losses	(209,716)		(83,726)
Total loans receivable, net	$	16,086,532	$	10,970,666

The Company categorizes all 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, and current economic trends, among other factors. The Company evaluates risk ratings on an ongoing basis. The Company uses the following definitions for risk ratings:

Pass: Loans classified as Pass are well protected by the paying capacity and net worth of the borrower.

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 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 borrower or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the collection or 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 tables summarize total loans (in thousands) by year of origination, internally assigned credit grades, and risk characteristics. The tables also include gross charge-offs that were recorded for the year to date periods presented, by year of origination (in thousands):


	2026		2025		2024		2023		2022		2021 and prior		Revolving lines of credit		Total
As of June 30, 2026

Commercial real estate - investor
Pass	$	446,641	$	905,946	$	331,635	$	499,793	$	1,551,649	$	4,297,144	$	778,091	$	8,810,899
Special Mention	—		9,630		—		—		3,948		56,288		2,934		72,800
Substandard	—		—		—		1,618		24,905		209,719		5,372		241,614
Total commercial real estate - investor	446,641		915,576		331,635		501,411		1,580,502		4,563,151		786,397		9,125,313
Gross charge-offs	(351)		—		(85)		(411)		(119)		(84)		—		(1,050)
Commercial and industrial:
Commercial and industrial - real estate
Pass	191,430		298,000		86,198		106,205		215,867		754,794		41,385		1,693,879
Special Mention	273		2,646		8,823		—		—		332		—		12,074
Substandard	—		17,975		33,360		—		—		43,132		81		94,548
Total commercial and industrial - real estate	191,703		318,621		128,381		106,205		215,867		798,258		41,466		1,800,501
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial and industrial - non-real estate
Pass	267,865		385,265		207,236		79,583		68,357		86,685		735,542		1,830,533
Special Mention	175		9,510		7,643		14,620		869		1,541		12,779		47,137
Substandard	—		4,358		481		—		1,179		1,732		22,299		30,049
Total commercial and industrial - non-real estate	268,040		399,133		215,360		94,203		70,405		89,958		770,620		1,907,719
Gross charge-offs	—		(178)		(893)		—		—		(73)		—		(1,144)
Total commercial and industrial	459,743		717,754		343,741		200,408		286,272		888,216		812,086		3,708,220


Residential real estate (1)
Pass	13,407		466,545		228,453		270,909		509,877		1,748,890		—		3,238,081
Special Mention	—		1,220		896		833		116		1,567		—		4,632
Substandard	—		179		—		333		—		2,086		—		2,598
Total residential real estate	13,407		467,944		229,349		272,075		509,993		1,752,543		—		3,245,311
Gross charge-offs	—		(47)		(107)		(3)		(28)		(198)		—		(383)
Other consumer (1)
Pass	—		29,063		22,536		20,739		12,185		110,346		136		195,005
Special Mention	—		—		—		—		—		62		—		62
Substandard	—		—		—		85		—		1,756		—		1,841
Total other consumer	—		29,063		22,536		20,824		12,185		112,164		136		196,908

Gross charge-offs	—		—		(29)		—		(5)		(121)		—		(155)
Total loans	$	919,791	$	2,130,337	$	927,261	$	994,718	$	2,388,952	$	7,316,074	$	1,598,619	$	16,275,752
Total gross charge-offs	$	(351)	$	(225)	$	(1,114)	$	(414)	$	(152)	$	(476)	$	—	$	(2,732)

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.


	2025		2024		2023		2022		2021		2020 and prior		Revolving lines of credit		Total
As of December 31, 2025
Commercial real estate - investor
Pass	$	647,529	$	65,950	$	166,397	$	1,161,291	$	1,299,618	$	1,427,844	$	579,022	$	5,347,651
Special Mention	66		—		—		2,932		—		8,735		725		12,458
Substandard	—		85		—		20,788		298		33,969		5,740		60,880
Total commercial real estate - investor	647,595		66,035		166,397		1,185,011		1,299,916		1,470,548		585,487		5,420,989
Gross charge-offs	(102)		(310)		(1,938)		(649)		(24)		(511)		—		(3,534)
Commercial and industrial:
Commercial and industrial - real estate
Pass	255,690		74,284		58,970		90,142		59,476		403,738		31,844		974,144
Special Mention	—		250		—		—		—		731		—		981
Substandard	—		—		—		—		—		11,306		—		11,306
Total commercial and industrial - real estate	255,690		74,534		58,970		90,142		59,476		415,775		31,844		986,431
Gross charge-offs	—		—		—		—		—		—		—		—
Commercial and industrial - non-real estate
Pass	325,180		181,538		40,761		30,417		8,314		35,057		589,300		1,210,567
Special Mention	39		224		—		—		—		—		690		953
Substandard	—		528		553		776		649		1,774		11,756		16,036
Total commercial and industrial - non-real estate	325,219		182,290		41,314		31,193		8,963		36,831		601,746		1,227,556
Gross charge-offs	—		(815)		—		(20)		—		—		—		(835)
Total commercial and industrial	580,909		256,824		100,284		121,335		68,439		452,606		633,590		2,213,987
Residential real estate (1)
Pass	471,828		225,885		209,979		501,308		743,610		1,034,301		—		3,186,911
Special Mention	218		121		345		265		1,432		1,298		—		3,679
Substandard	207		1,590		396		93		445		943		—		3,674
Total residential real estate	472,253		227,596		210,720		501,666		745,487		1,036,542		—		3,194,264
Gross charge-offs	(37)		(218)		(106)		(319)		(345)		(426)		—		(1,451)
Other consumer (1)
Pass	27,971		24,292		23,141		13,697		15,086		93,425		3,242		200,854
Special Mention	—		—		—		—		8		82		—		90
Substandard	—		190		181		67		—		1,381		—		1,819
Total other consumer	27,971		24,482		23,322		13,764		15,094		94,888		3,242		202,763
Gross charge-offs	—		—		—		(48)		—		(385)		—		(433)
Total loans	$	1,728,728	$	574,937	$	500,723	$	1,821,776	$	2,128,936	$	3,054,584	$	1,222,319	$	11,032,003
Total gross charge-offs	$	(139)	$	(1,343)	$	(2,044)	$	(1,036)	$	(369)	$	(1,322)	$	—	$	(6,253)

(1)For residential real estate and other consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity.

An analysis of the allowance for credit losses on loans for the three and six months ended June 30, 2026 and 2025 was as follows (in thousands):


			Commercial and Industrial
	Commercial Real Estate – Investor		Commercial and Industrial - Real Estate		Commercial and Industrial - Non-Real Estate		Residential Real Estate		Other Consumer		Total
For the three months ended June 30, 2026
Allowance for credit losses on loans
Balance at beginning of period	$	29,014	$	7,293	$	23,663	$	25,140	$	1,000	$	86,110
Provision (benefit) for credit losses	3,458		(1,709)		974		1,123		(57)		3,789
Initial allowance for credit losses on acquired loans from Flushing (1)	85,748		15,796		18,606		966		215		121,331
Charge-offs	(966)		—		(342)		(354)		(114)		(1,776)
Recoveries	100		17		117		2		26		262
Balance at end of period	$	117,354	$	21,397	$	43,018	$	26,877	$	1,070	$	209,716
For the three months ended June 30, 2025
Allowance for credit losses on loans
Balance at beginning of period	$	33,947	$	4,102	$	12,837	$	26,810	$	1,102	$	78,798
Provision (benefit) for credit losses	690		(179)		1,951		108		116		2,686

Charge-offs	(1,791)		—		—		(370)		(254)		(2,415)
Recoveries	80		11		34		22		50		197
Balance at end of period	$	32,926	$	3,934	$	14,822	$	26,570	$	1,014	$	79,266
For the six months ended June 30, 2026
Allowance for credit losses on loans
Balance at beginning of period	$	29,944	$	4,753	$	23,376	$	24,680	$	973	$	83,726
Provision (benefit) for credit losses	2,604		828		1,924		1,591		(73)		6,874
Initial allowance for credit losses on acquired loans from Flushing (1)	85,748		15,796		18,606		966		215		121,331
Charge-offs	(1,050)		—		(1,144)		(383)		(155)		(2,732)
Recoveries	108		20		256		23		110		517
Balance at end of period	$	117,354	$	21,397	$	43,018	$	26,877	$	1,070	$	209,716
For the six months ended June 30, 2025
Allowance for credit losses on loans
Balance at beginning of period	$	30,780	$	3,817	$	10,471	$	27,587	$	952	$	73,607
Provision (benefit) for credit losses	3,837		103		4,315		51		207		8,513

Charge-offs	(1,846)		—		—		(1,092)		(275)		(3,213)
Recoveries	155		14		36		24		130		359
Balance at end of period	$	32,926	$	3,934	$	14,822	$	26,570	$	1,014	$	79,266

(1)The allowance for credit losses for the three and six months ended June 30, 2026 reflects the initial allowance recorded on purchased seasoned loans and purchased credit deteriorated loans acquired in the Flushing merger, in accordance with ASU 2025-08.

A loan is considered collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral and, therefore, is classified as non-accruing. At June 30, 2026 and December 31, 2025, the Company had collateral dependent loans with an amortized cost balance as follows: commercial real estate - investor of $76.7 million and $13.6 million, respectively, commercial and industrial - real estate of $17.0 million and $4.8 million, respectively, and commercial and industrial - non-real estate of $4.5 million and $603,000, respectively. In addition, the Company had collateral dependent residential and consumer loans with an amortized cost balance of $4.4 million and $5.5 million at June 30, 2026 and December 31, 2025, respectively.

The following table presents the recorded investment in non-accrual loans, by loan portfolio segment as of June 30, 2026 and December 31, 2025 (in thousands):


	June 30,		December 31,
	2026		2025
Commercial real estate – investor	$	76,721	$	13,636
Commercial and industrial:
Commercial and industrial - real estate	16,980		4,813
Commercial and industrial - non-real estate	5,045		640
Total commercial and industrial	22,025		5,453
Residential real estate	7,043		6,200
Other consumer	2,452		2,502
Total non-performing loans	$	108,241	$	27,791

At June 30, 2026 and December 31, 2025, non-accrual loans were included in the allowance for credit loss calculation and the Company did not recognize or accrue interest income on these loans. At June 30, 2026 and December 31, 2025, there were no loans greater than 90 days past due that were accruing interest.

The following table presents the aging of the recorded investment in past due loans as of June 30, 2026 and December 31, 2025 by loan portfolio segment (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due		Total Past Due		Loans Not Past Due		Total
June 30, 2026
Commercial real estate – investor	$	12,168	$	22,563	$	52,162	$	86,893	$	9,038,420	$	9,125,313
Commercial and industrial:
Commercial and industrial - real estate	806		650		15,661		17,117		1,783,384		1,800,501
Commercial and industrial - non-real estate	1,741		2,655		3,374		7,770		1,899,949		1,907,719
Total commercial and industrial	2,547		3,305		19,035		24,887		3,683,333		3,708,220
Residential real estate	1,002		4,465		2,598		8,065		3,237,246		3,245,311
Other consumer	1,013		34		1,842		2,889		194,019		196,908
Total loans	$	16,730	$	30,367	$	75,637	$	122,734	$	16,153,018	$	16,275,752
December 31, 2025
Commercial real estate – investor	$	25,516	$	974	$	12,333	$	38,823	$	5,382,166	$	5,420,989
Commercial and industrial:
Commercial and industrial - real estate	587		—		4,281		4,868		981,563		986,431
Commercial and industrial - non-real estate	1,220		235		578		2,033		1,225,523		1,227,556
Total commercial and industrial	1,807		235		4,859		6,901		2,207,086		2,213,987
Residential real estate	14,517		3,672		3,673		21,862		3,172,402		3,194,264
Other consumer	1,027		60		1,819		2,906		199,857		202,763
Total loans	$	42,867	$	4,941	$	22,684	$	70,492	$	10,961,511	$	11,032,003

Loan Modifications to Borrowers Experiencing Financial Difficulty

In accordance with ASU 2022-02, the Company has modified and may modify in the future certain loans to borrowers experiencing financial difficulty. These modifications may include a reduction in interest rate, an extension in term, principal forgiveness and/or other than insignificant payment delay. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount, and the allowance for credit losses is subsequently adjusted by an amount equal to the total loss rate as applied to the reduced amortized cost basis. As of June 30, 2026 and December 31, 2025, loans with modifications to borrowers experiencing financial difficulty totaled $22.2 million and $24.9 million, respectively. There were no outstanding commitments to lend additional funds to such borrowers with loan modifications as of June 30, 2026 or December 31, 2025.

The following table presents loan modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2026 and 2025 (in thousands):


	Interest Rate Reduction		Combination of Term Extension and Interest Rate Reduction		Total		% of Total by Loan Portfolio Segment
For the three months ended June 30, 2026
Commercial real estate – investor	$	1,695	$	—	$	1,695	0.02	%






	$	1,695	$	—	$	1,695	0.01	%



For the six months ended June 30, 2026
Commercial real estate – investor	$	1,695	$	—	$	1,695	0.02	%


Residential real estate	—		102		102		—

	$	1,695	$	102	$	1,797	0.01	%


	Term Extension		Combination of Term Extension and Other Than Insignificant Payment Delay		Total		% of Total by Loan Portfolio Segment
For the three months ended June 30, 2025
Commercial real estate – investor	$	—	$	4,449	$	4,449	0.09	%




	$	—	$	4,449	$	4,449	0.04	%
For the six months ended June 30, 2025
Commercial real estate – investor	$	5,067	$	4,449	$	9,516	0.19	%




	$	5,067	$	4,449	$	9,516	0.09	%

The modifications during the periods presented had an insignificant financial effect on the Company.

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table provides the performance of loans modified to borrowers experiencing financial difficulty during the twelve months ended June 30, 2026 and 2025 (in thousands):



	Current		90 Days or Greater past due			Total
June 30, 2026
Commercial real estate – investor	$	1,695	$	949	(1)	$	2,644


Residential real estate	102		—			102

	$	1,797	$	949		$	2,746
June 30, 2025
Commercial real estate – investor	$	16,805	$	—		$	16,805




	$	16,805	$	—		$	16,805

(1) Represents one commercial real estate - investor loan that defaulted during the three months ended June 30, 2026, which had been modified within the last 12 months.